Earnings per Share

9 Months Ended

Jan. 27, 2018

Note 15: 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						Nine Months Ended
(Unaudited, amounts in thousands)	1/27/18			1/28/17			1/27/18			1/28/17
Numerator (basic and diluted):
Net income attributable to La-Z-Boy Incorporated	$	12,109		$	23,286		$	46,656		$	57,925
Income allocated to participating securities	(62		)	(115		)	(234		)	(287		)

Net income available to common shareholders	$	12,047		$	23,171		$	46,422		$	57,638


Denominator:
Basic weighted average common shares outstanding	47,234			48,914			47,852			49,057
Add:
Contingent common shares	178			155			176			155
Stock option dilution	345			315			297			320

Diluted weighted average common shares outstanding	47,757			49,384			48,325			49,532

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 nine months ended January 27, 2018, or for the quarter and nine months ended January 28, 2017.