Calculation of Earnings Per Share

9 Months Ended

Sep. 28, 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					Nine Months Ended
	Sept. 28,			Sept. 29,		Sept. 28,			Sept. 29,
	2014			2013		2014			2013
Basic earnings per common share:
Net income attributable to the Company	$	16,075		$	14,276	$	52,134		$	50,732
Increase in noncontrolling interest redemption value	(42		)	—		(81		)	—
Net income attributable to participating securities	(77		)	—		(295		)	—
Net income attributable to common shareholders	$	15,956		$	14,276	$	51,758		$	50,732
Weighted average common shares outstanding	40,739			43,182		41,248			43,710
Basic earnings per common share	$	0.39		$	0.33	$	1.25		$	1.16
Diluted earnings per common share:
Net income attributable to common shareholders	$	15,956		$	14,276	$	51,758		$	50,732
Weighted average common shares outstanding	40,739			43,182		41,248			43,710
Dilutive effect of outstanding equity awards (a)	647			986		773			1,052
Diluted weighted average common shares outstanding	41,386			44,168		42,021			44,762
Diluted earnings per common share	$	0.39		$	0.32	$	1.23		$	1.13

(a) Excludes 270 and 208 awards for the three and nine months ended September 28, 2014 and 24 and 129 awards for the three and nine months ended September 29, 2013, as the effect of including such awards would have been antidilutive.