Calculation of Earnings Per Share

9 Months Ended

Sep. 25, 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 (“ASC”) 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				Nine Months Ended
	September 25,		September 27,		September 25,		September 27,
	2016		2015		2016		2015

Basic earnings per common share:
Net income attributable to the Company	$	21,467	$	17,971	$	70,190	$	50,987
Change in noncontrolling interest redemption value		(157)		49		342		192
Net income attributable to participating securities		(87)		(73)		(288)		(223)
Net income attributable to common shareholders	$	21,223	$	17,947	$	70,244	$	50,956

Weighted average common shares outstanding		36,989		39,394		37,374		39,640
Basic earnings per common share	$	0.57	$	0.46	$	1.88	$	1.29

Diluted earnings per common share:
Net income attributable to common shareholders	$	21,223	$	17,947	$	70,244	$	50,956

Weighted average common shares outstanding		36,989		39,394		37,374		39,640
Dilutive effect of outstanding equity awards (a)		370		501		338		570
Diluted weighted average common shares outstanding		37,359		39,895		37,712		40,210
Diluted earnings per common share	$	0.57	$	0.45	$	1.86	$	1.27

(a) Excludes 22 and 598 awards for the three and nine months ended September 25, 2016, respectively, and 219 and 234 awards for the three and nine months ended September 27, 2015, respectively, as the effect of including such awards would have been antidilutive.