Earnings per Share

6 Months Ended

Oct. 29, 2011

Note 13: Earnings per Share

Certain share-based payment 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; as participating securities, the unvested shares are required to be included in the calculation of our basic earnings per common share, using the two-class method.

A reconciliation of the numerators and denominators used in the computations of basic and diluted earnings per share is as follows:

	Second Quarter Ended						Six Months Ended
(Unaudited, amounts in thousands)	10/29/11			10/23/10			10/29/11			10/23/10
Numerator (basic and diluted):
Net income attributable to La-Z-Boy
Incorporated	$	7,870		$	3,945		$	53,406		$	3,729
Income allocated to participating securities		(150	)		(77	)		(1,026	)		(72	)
Net income available to common shareholders	$	7,720		$	3,868		$	52,380		$	3,657

Denominator:
Basic common shares (based upon weighted average)		52,055			51,855			51,999			51,820
Add:
Stock option dilution		420			359			459			408
Diluted common shares		52,475			52,214			52,458			52,228

We had outstanding options to purchase 1.1 million shares for the quarter and six months ended October 29, 2011, with a weighted average exercise price of $14.16, and outstanding options to purchase 1.3 million shares for the quarter and six months ended October 23, 2010, with a weighted average exercise price of $15.30. We excluded the effect of these options from the diluted share calculation since, for each period presented, the weighted average exercise price of the options was higher than the average market price, so that including the options’ effect would have been anti-dilutive.