Calculation of Earnings Per Share

3 Months Ended

Mar. 30, 2014

Calculation of Earnings Per Share

Calculation of Earnings Per Share

4. Calculation of 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 Accounting Standards Codification (“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.

The calculations of basic and diluted earnings per common share are as follows (in thousands, except per-share data):

	Three Months Ended
	March 30,			March 31,
	2014			2013
Basic earnings per common share:
Net income attributable to the Company	$	19,311		$	19,306
Increase in noncontrolling interest redemption value	(8		)	—
Net income attributable to participating securities	(137		)	—
Net income attributable to common shareholders	$	19,166		$	19,306
Weighted average common shares outstanding	41,778			44,512
Basic earnings per common share	$	0.46		$	0.43
Diluted earnings per common share:
Net income attributable to common shareholders	$	19,166		$	19,306
Weighted average common shares outstanding	41,778			44,512
Dilutive effect of outstanding equity awards (a)	918			1,100
Diluted weighted average common shares outstanding	42,696			45,612
Diluted earnings per common share	$	0.45		$	0.42

(a) Excludes 102 awards at March 30, 2014, as the effect of including such awards would have been antidilutive (none at March 31, 2013).