In prior periods, the Company’s non-vested restricted stock awards contained non-forfeitable rights to dividends and met the criteria of a participating security as defined by ASC Topic 260, “Earnings Per Share.” Under the two-class method, net income per share is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, net income is allocated to both common shares and participating securities based on their respective weighted average shares outstanding for the period. The presentation of basic and diluted earnings per share is required only for each class of common stock and not for participating securities with respect to prior periods. As such, the Company presents basic and diluted earnings per share for its common stock. The dilutive effect of participating securities for prior periods is calculated using the more dilutive of the treasury stock or the two-class method. For the thirteen-week period ended November 30, 2019, the Company had determined the two-class method to be the more dilutive. As such, the earnings allocated to common stock shareholders in the basic earnings per share calculation was adjusted for the reallocation of undistributed earnings to participating securities to arrive at the earnings allocated to common stock shareholders for calculating the diluted earnings per share. For the thirteen-week period ended

November 28, 2020, the Company used the treasury stock method, as the Company discontinued its grants of these participating securities in fiscal 2015 and the remaining restricted stock awards vested in March 2020.

The following table sets forth the computation of basic and diluted net income per common share under the treasury stock method for the thirteen-week period ended November 28, 2020 and under the two-class method for the thirteen-week period ended November 30, 2019:


	Thirteen Weeks Ended
	November 28,		November 30,
	2020		2019
Net income attributable to MSC Industrial as reported	$	38,454	$	65,418
Less: Distributed net income available to participating securities		—		(7)
Less: Undistributed net income available to participating securities		—		(5)
Numerator for basic net income per share:
Undistributed and distributed net income available to common shareholders	$	38,454	$	65,406
Add: Undistributed net income allocated to participating securities		—		5
Less: Undistributed net income reallocated to participating securities		—		(5)

Numerator for diluted net income per share:
Undistributed and distributed net income available to common shareholders	$	38,454	$	65,406
Denominator:
Weighted average shares outstanding for basic net income per share		55,659		55,275
Effect of dilutive securities		191		169
Weighted average shares outstanding for diluted net income per share		55,850		55,444
Net income per share:
Basic	$	0.69	$	1.18
Diluted	$	0.69	$	1.18

Potentially dilutive securities		1,332		1,557