Net Income per Share

12 Months Ended

Dec. 28, 2019

Net Income per Share

P. Net Income per Share

Net Income per Common Share - Basic

The following table sets forth the computation of basic net income per share using the two-class method:

	December 28, 2019		December 29, 2018		December 30, 2017
	(in thousands, except per share data)
Net Income	$	110,041	$	92,663	$	99,049
Allocation of net income for basic:
Class A Common Stock	$	82,474	$	68,080	$	73,114
Class B Common Stock		26,600		23,710		25,391
Unvested participating shares		967		873		544
	$	110,041	$	92,663	$	99,049
Weighted average number of shares for basic:
Class A Common Stock		8,908		8,620		8,933
Class B Common Stock*		2,873		3,002		3,102
Unvested participating shares		105		111		67
		11,886		11,733		12,102
Net income per share for basic:
Class A Common Stock	$	9.26	$	7.90	$	8.18
Class B Common Stock	$	9.26	$	7.90	$	8.18

* Change in Class B Common Stock resulted from the conversion of 100,000 shares to Class A Common Stock on March 7, 2017, 79,000 shares to Class A Common Stock on October 31, 2017, 100,000 shares to Class A Common Stock on November 1, 2018, 100,000 shares to Class A Common stock on August 8, 2019 and 145,000 shares to Class A Common stock on December 13, 2019 with the ending number of shares reflecting the weighted average for the period.

Net Income per Common Share - Diluted

The Company calculates diluted net income per share for common stock using the more dilutive of (1) the treasury stock method, or (2) the two-class method, which assumes the participating securities are not exercised or converted.

The following tables set forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock and using the two-class method for unvested participating shares:

	Fifty-two weeks ended December 28, 2019
	Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported - basic	$	82,474		8,908	$	9.26
Add: effect of dilutive potential common shares
Share-based awards		—		127
Class B Common Stock		26,600		2,873
Net effect of unvested participating shares		10		—
Net income per common share - diluted	$	109,084		11,908		9.16

	Fifty-two weeks ended December 29, 2018
	Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported - basic	$	68,080		8,620	$	7.90
Add: effect of dilutive potential common shares
Share-based awards		—		112
Class B Common Stock		23,710		3,002
Net effect of unvested participating shares		8		—
Net income per common share - diluted	$	91,798		11,734	$	7.82

	Fifty-two weeks ended December 30, 2017
	Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported - basic	$	73,114		8,933	$	8.18
Add: effect of dilutive potential common shares
Share-based awards		—		145
Class B Common Stock		25,391		3,102
Net effect of unvested participating shares		7		—
Net income per common share - diluted	$	98,512		12,180	$	8.09

Basic net income per common share for each share of Class A Common Stock and Class B Common Stock is $9.26, $7.90, and $8.18 for the fiscal years 2019, 2018, and 2017, respectively, as each share of Class A and Class B participates equally in earnings. Shares of Class B are convertible at any time into shares of Class A on a one-for-one basis at the option of the stockholder.

Weighted average stock options to purchase 23,000, 100,000, and 785,000 shares of Class A Common Stock were outstanding during fiscal 2019, 2018, and 2017, respectively, but not included in computing diluted income per share because their effects were anti-dilutive. Additionally, performance-based stock options to purchase 10,000, 10,000, and 36,000 shares of Class A Common Stock were outstanding during fiscal 2019, 2018, and

2017, respectively, but not included in computing dilutive income per share because the performance criteria of these stock options were not met as of December 28, 2019, December 29, 2018, and December 30, 2017, respectively.