Calculation of Earnings per Share

6 Months Ended

Jun. 25, 2017

Calculation of Earnings per Share

Calculation of Earnings per Share

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, 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 25,		June 26,		June 25,		June 26,
	2017		2016		2017		2016
Basic earnings per common share:
Net income attributable to the Company	$	23,538	$	22,541	$	51,966	$	48,723
Change in noncontrolling interest redemption value		662		279		1,182		499
Net income attributable to participating securities		(99)		(91)		(216)		(201)
Net income attributable to common shareholders	$	24,101	$	22,729	$	52,932	$	49,021
Weighted average common shares outstanding		36,732		37,203		36,771		37,567
Basic earnings per common share	$	0.66	$	0.61	$	1.44	$	1.30
Diluted earnings per common share:
Net income attributable to common shareholders	$	24,101	$	22,729	$	52,932	$	49,021
Weighted average common shares outstanding		36,732		37,203		36,771		37,567
Dilutive effect of outstanding equity awards (a)		485		304		512		337
Diluted weighted average common shares outstanding		37,217		37,507		37,283		37,904
Diluted earnings per common share	$	0.65	$	0.61	$	1.42	$	1.29

(a) Excludes 325 and 215 awards for the three and six months ended June 25, 2017, respectively, and 689 and 566 awards for the three and six months ended June 26, 2016, respectively, as the effect of including such awards would have been antidilutive.