Earnings per Share

3 Months Ended

Mar. 26, 2023

7. 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. Time-based restricted stock awards are participating securities because holders of such shares have non-forfeitable dividend rights and participate in undistributed earnings with common stock. Under the two-class method, total dividends provided to the holders of participating securities and undistributed earnings allocated to participating securities, are subtracted from net income attributable to the Company in determining net income attributable to common shareholders.

Basic earnings per common share are computed by dividing net income attributable to common shareholders by the weighted-average common shares outstanding. Diluted earnings per common share are computed by dividing the net income attributable to common shareholders by the diluted weighted average common shares outstanding. Diluted weighted average common shares outstanding consist of basic weighted average common shares outstanding plus weighted average awards outstanding under our equity compensation plans, which are dilutive securities.

The calculations of basic and diluted earnings per common share are as follows (in thousands, except per share data):


	Three Months Ended
		March 26, 2023		March 27, 2022
Basic earnings per common share
Net income attributable to the Company		$	22,376	$	10,494
Dividends paid to participating securities		—		(60)

Net income attributable to common shareholders		$	22,376	$	10,434

Basic weighted average common shares outstanding		34,155		35,927
Basic earnings per common share		$	0.66	$	0.29

Diluted earnings per common share
Net income attributable to common shareholders		$	22,376	$	10,434

Weighted average common shares outstanding		34,155		35,927
Dilutive effect of outstanding equity awards (a)		169		309
Diluted weighted average common shares outstanding		34,324		36,236
Diluted earnings per common share		$	0.65	$	0.29

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(a) Excludes 22,000 and 21,000 equity awards for the three months ended March 26, 2023 and March 27, 2022, respectively, as the effect of including such awards would have been anti-dilutive.