Earnings per Share

6 Months Ended

Oct. 26, 2019

Certain share-based compensation awards that entitle their holders to receive non-forfeitable dividends prior to vesting are considered participating securities. Prior to fiscal 2019, we granted restricted stock awards that contained non-forfeitable rights to dividends on unvested shares, and we are required to include these participating securities in calculating our basic earnings per common share, using the two-class method. The restricted stock awards we granted in fiscal 2019 and fiscal 2020 do not have non-forfeitable rights to dividends and therefore are not considered participating securities. The dividends on the restricted stock awards granted in fiscal 2019 and fiscal 2020 are, and will continue to be held in escrow, until the stock awards vest at which time we will pay any accumulated dividends.

The following is a reconciliation of the numerators and denominators we used in our computations of basic and diluted earnings per share:



	Quarter Ended						Six Months Ended
(Unaudited, amounts in thousands)	10/26/19			10/27/18			10/26/19			10/27/18
Numerator (basic and diluted):
Net income attributable to La-Z-Boy Incorporated	$	22,593		$	20,012		$	40,662		$	38,315
Income allocated to participating securities	(31		)	(63		)	(72		)	(139		)
Net income available to common Shareholders	$	22,562		$	19,949		$	40,590		$	38,176

Denominator:
Basic weighted average common shares outstanding	46,551			46,888			46,686			46,802
Add:
Contingent common shares	149			85			148			85
Stock option dilution	179			286			176			332
Diluted weighted average common shares outstanding	46,879			47,259			47,010			47,219

Earnings per Share:
Basic	$	0.48		$	0.43		$	0.87		$	0.82
Diluted	$	0.48		$	0.42		$	0.86		$	0.81

The values for contingent common shares set forth above reflect the dilutive effect of common shares that we would have issued to employees under the terms of performance-based share awards if the relevant performance period for the award had been the reporting period.

We had outstanding options to purchase 0.3 million shares for the quarter and six months ended October 26, 2019, with a weighted average exercise price of $33.15. We excluded the effect of these options from our diluted share calculation since 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. Similarly, we excluded options to purchase 0.4 million shares from the diluted share calculation for the quarter and six months ended October 27, 2018.