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Earnings per Share
12 Months Ended
Dec. 29, 2013
Earnings per Share  
Earnings per Share

4.  Earnings per Share

 

We compute earnings per share using the two-class method. The two-class method requires an earnings allocation formula that determines earnings per share for common shareholders and participating security holders according to dividends declared and participating rights in undistributed earnings. We consider time-based restricted stock awards to be participating securities because holders of such shares have non-forfeitable dividend rights. Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to the Company in determining net income attributable to common shareholders.

 

Additionally, in accordance with ASC 480, Distinguishing Liabilities from Equity, the increase in the redemption value for the noncontrolling interest of PJ Denver, LLC reduces income attributable to common shareholders.

 

Basic earnings per common share is computed by dividing net income attributable to common shareholders by the weighted-average common shares outstanding. Earnings per common share — assuming dilution is computed by dividing the net income attributable to common shareholders by the diluted weighted average common shares outstanding. Diluted weighted average common shares outstanding consists of basic weighted average common shares outstanding plus weighted average awards outstanding under our equity compensation plans, which are dilutive securities.

 

The calculations of basic earnings per common share and earnings per common share — assuming dilution for the years ended December 29, 2013, December 30, 2012 and December 25, 2011 are as follows (in thousands, except per share data):

 

 

 

2013

 

2012

 

2011

 

 

 

 

 

 

 

 

 

Basic earnings per common share:

 

 

 

 

 

 

 

Net income attributable to the Company

 

$

69,537

 

$

61,660

 

$

54,735

 

Increase in noncontrolling interest redemption value

 

(510

)

 

 

Net income attributable to participating securities

 

(530

)

 

 

Net income attributable to common shareholders

 

$

68,497

 

$

61,660

 

$

54,735

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

43,387

 

46,916

 

50,086

 

Basic earnings per common share

 

$

1.58

 

$

1.31

 

$

1.09

 

 

 

 

 

 

 

 

 

Earnings per common share - assuming dilution:

 

 

 

 

 

 

 

Net income attributable to common shareholders

 

$

68,497

 

$

61,660

 

$

54,735

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

43,387

 

46,916

 

50,086

 

Dilutive effect of outstanding equity awards

 

856

 

894

 

534

 

Diluted weighted average common shares outstanding

 

44,243

 

47,810

 

50,620

 

Earnings per common share - assuming dilution

 

$

1.55

 

$

1.29

 

$

1.08

 

 

Shares subject to options to purchase common stock with an exercise price greater than the average market price for the year were not included in the computation of earnings per common share — assuming dilution because the effect would have been antidilutive. The weighted average number of shares subject to antidilutive options was 129,000 in 2013 and 273,000 in 2011 (none in 2012).

 

See Note 6 for additional information regarding our noncontrolling interests and Note 18 for equity awards, including restricted stock.