Calculation of Earnings Per Share

6 Months Ended

Jun. 29, 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					Six Months Ended
	June 29,			June 30,		June 29,			June 30,
	2014			2013		2014			2013
Basic earnings per common share:
Net income attributable to the Company	$	16,748		$	17,150	$	36,059		$	36,456
Increase in noncontrolling interest redemption value	(31		)	—		(39		)	—
Net income attributable to participating securities	(81		)	—		(218		)	—
Net income attributable to common shareholders	$	16,636		$	17,150	$	35,802		$	36,456
Weighted average common shares outstanding	41,225			43,484		41,501			43,996
Basic earnings per common share	$	0.40		$	0.39	$	0.86		$	0.83
Diluted earnings per common share:
Net income attributable to common shareholders	$	16,636		$	17,150	$	35,802		$	36,456
Weighted average common shares outstanding	41,225			43,484		41,501			43,996
Dilutive effect of outstanding equity awards (a)	745			1,016		831			1,090
Diluted weighted average common shares outstanding	41,970			44,500		42,332			45,086
Diluted earnings per common share	$	0.40		$	0.39	$	0.85		$	0.81

(a) Excludes 284 and 176 awards for the three and six months ended June 29, 2014 and 218 and 151 awards for the three and six months ended June 30, 2013, as the effect of including such awards would have been antidilutive.