Calculation of Earnings Per Share

6 Months Ended

Jun. 26, 2016

3.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 480, “Distinguishing Liabilities from Equity”, the change in the redemption value for the noncontrolling interest of one of our joint ventures increases or decreases 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 26,		June 28,		June 26,		June 28,
	2016		2015		2016		2015

Basic earnings per common share:
Net income attributable to the Company	$	22,541	$	10,780	$	48,723	$	33,016
Change in noncontrolling interest redemption value		279		73		499		143
Net income attributable to participating securities		(91)		(50)		(201)		(150)
Net income attributable to common shareholders	$	22,729	$	10,803	$	49,021	$	33,009

Weighted average common shares outstanding		37,203		39,692		37,567		39,764
Basic earnings per common share	$	0.61	$	0.27	$	1.30	$	0.83

Diluted earnings per common share:
Net income attributable to common shareholders	$	22,729	$	10,803	$	49,021	$	33,009

Weighted average common shares outstanding		37,203		39,692		37,567		39,764
Dilutive effect of outstanding equity awards (a)		304		525		337		604
Diluted weighted average common shares outstanding		37,507		40,217		37,904		40,368
Diluted earnings per common share	$	0.61	$	0.27	$	1.29	$	0.82

(a) Excludes 689 and 566 awards for the three and six months ended June 26, 2016 and 292 and 198 awards for the three and six months ended June 28, 2015, as the effect of including such awards would have been antidilutive.