Earnings per Share

9 Months Ended

Jan. 22, 2022

Earnings per ShareCertain 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. Beginning in fiscal 2019 and going forward, the restricted stock awards we granted do not have non-forfeitable rights to dividends and therefore are not considered participating securities. The dividends on these restricted stock awards 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				Nine Months Ended
(Unaudited, amounts in thousands, except per share data)	1/22/2022		1/23/2021		1/22/2022		1/23/2021
Numerator (basic and diluted):
Net income attributable to La-Z-Boy Incorporated	$	28,467	$	29,232	$	92,549	$	68,965
Income allocated to participating securities	—		(9)		(6)		(33)
Net income available to common Shareholders	$	28,467	$	29,223	$	92,543	$	68,932

Denominator:
Basic weighted average common shares outstanding	43,701		46,261		44,342		46,064
Contingent common shares	55		224		59		195
Stock option dilution	212		333		239		148
Diluted weighted average common shares outstanding	43,968		46,818		44,640		46,407

Earnings per Share:
Basic	$	0.65	$	0.63	$	2.09	$	1.50
Diluted	$	0.65	$	0.62	$	2.07	$	1.49

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 exclude the effect of options from our diluted share calculation when the weighted average exercise price of the options is higher than the average market price, since including the options' effect would be anti-dilutive. For the third quarter and nine months ended January 22, 2022, we excluded options to purchase 0.2 million shares from the diluted share calculation. For the third quarter ended January 23, 2021, we did not exclude any options as the effect would have been anti-dilutive and for the nine months ended January 23, 2021, we excluded 0.3 million shares from the diluted share calculation.