Earnings per Share

6 Months Ended

Oct. 28, 2017

Note 13: Earnings per Share

Certain share-based compensation awards that entitle their holders to receive non-forfeitable dividends prior to vesting are considered participating securities. We grant restricted stock awards that contain non-forfeitable rights to dividends on unvested shares, and we are required to include these participating securities in calculating our basic earnings per common share, using the two-class method.

The following is a reconciliation of the numerators and denominators we used in our computations of basic and diluted earnings per share:

	Quarter Ended						Six Months Ended
(Unaudited, amounts in thousands)	10/28/17			10/29/16			10/28/17			10/29/16
Numerator (basic and diluted):
Net income attributable to La-Z-Boy Incorporated	$	22,896		$	20,833		$	34,547		$	34,639
Income allocated to participating securities	(117		)	(103		)	(172		)	(172		)

Net income available to common shareholders	$	22,779		$	20,730		$	34,375		$	34,467


Denominator:
Basic weighted average common shares outstanding	47,964			49,153			48,160			49,129
Add:
Contingent common shares	96			100			99			100
Stock option dilution	237			258			278			325

Diluted weighted average common shares outstanding	48,297			49,511			48,537			49,554

The above values for contingent common shares reflect the dilutive effect of common shares that we would have issued to employees under the terms of performance-based share awards if the relevant performance period for the award had been the reporting period.

We did not exclude any outstanding options from the diluted share calculation for the quarter and six months ended October 28, 2017, or for the quarter and six months ended October 29, 2016.