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Earnings per Share
 9 Months Ended
Jan. 28, 2012
Earnings per Share

Note 13: Earnings per Share

 

Certain share-based payment awards that entitle their holders to receive non-forfeitable dividends prior to vesting are considered participating securities. We grant restricted stock awards that contain non-forfeitable rights to dividends on unvested shares; as participating securities, the unvested shares are required to be included in the calculation of our basic earnings per common share, using the two-class method.

 

 

A reconciliation of the numerators and denominators used in the computations of basic and diluted earnings per share is as follows:

 

    Third Quarter Ended     Nine Months Ended  
(Unaudited, amounts in thousands)   1/28/12     1/22/11     1/28/12     1/22/11  
Numerator (basic and diluted):                                
Net income attributable to La-Z-Boy Incorporated   $ 14,958     $ 10,010     $ 68,364     $ 13,739  
Income allocated to participating securities     (275 )     (200 )     (1,296 )     (269 )
Net income available to common shareholders   $ 14,683     $ 9,810     $ 67,068     $ 13,470  
                                 
Denominator:                                
Basic weighted average common shares outstanding     51,811       51,865       51,928       51,835  
Add:                                
Stock option dilution     568       405       512       407  
Diluted weighted average common shares outstanding     52,379       52,270       52,440       52,242  

 

We had outstanding options to purchase 0.7 million shares as of January 28, 2012, with a weighted average exercise price of $16.37, and outstanding options to purchase 1.3 million shares as of January 22, 2011, with a weighted average exercise price of $15.32. We excluded the effect of these options from the diluted share calculation since, for each period presented, the weighted average exercise price of the options was higher than the average market price, and including the options’ effect would have been anti-dilutive.