Company Quick10K Filing
Tractor Supply
Price90.61 EPS3
Shares121 P/E26
MCap10,985 P/FCF27
Net Debt67 EBIT554
TEV11,053 TEV/EBIT20
TTM 2019-09-28, in MM, except price, ratios
10-Q 2020-06-27 Filed 2020-08-06
10-Q 2020-03-28 Filed 2020-05-07
10-K 2019-12-28 Filed 2020-02-20
10-Q 2019-09-28 Filed 2019-11-07
10-Q 2019-06-29 Filed 2019-08-08
10-Q 2019-03-30 Filed 2019-05-09
10-K 2018-12-29 Filed 2019-02-21
10-Q 2018-09-29 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-11
10-K 2017-12-30 Filed 2018-02-22
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-07-01 Filed 2017-08-10
10-Q 2017-04-01 Filed 2017-05-10
10-K 2016-12-31 Filed 2017-02-23
10-Q 2016-09-24 Filed 2016-11-04
10-Q 2016-06-25 Filed 2016-08-04
10-Q 2016-03-26 Filed 2016-05-05
10-K 2015-12-26 Filed 2016-02-23
10-Q 2015-09-26 Filed 2015-11-05
10-Q 2015-06-27 Filed 2015-08-05
10-Q 2015-03-28 Filed 2015-05-07
10-K 2015-02-18 Filed 2015-02-18
10-Q 2014-11-03 Filed 2014-11-03
10-Q 2014-08-04 Filed 2014-08-04
10-Q 2014-05-05 Filed 2014-05-05
10-K 2014-02-19 Filed 2014-02-19
10-Q 2013-09-28 Filed 2013-11-04
10-Q 2013-06-29 Filed 2013-08-05
10-Q 2013-03-30 Filed 2013-05-06
10-K 2012-12-29 Filed 2013-02-20
10-Q 2012-09-29 Filed 2012-11-05
10-Q 2012-06-30 Filed 2012-08-06
10-Q 2012-05-07 Filed 2012-05-07
10-K 2012-02-29 Filed 2012-02-29
10-Q 2011-11-03 Filed 2011-11-03
10-Q 2011-08-04 Filed 2011-08-04
10-Q 2011-05-03 Filed 2011-05-03
10-K 2011-02-23 Filed 2011-02-23
10-Q 2010-09-25 Filed 2010-11-02
10-Q 2010-06-26 Filed 2010-08-03
10-Q 2010-03-27 Filed 2010-05-04
10-K 2009-12-26 Filed 2010-02-24
8-K 2020-08-14 Enter Agreement, Exhibits
8-K 2020-08-06 Other Events, Exhibits
8-K 2020-07-23 Earnings, Exhibits
8-K 2020-05-26
8-K 2020-05-08
8-K 2020-05-07
8-K 2020-04-23
8-K 2020-04-07
8-K 2020-03-20
8-K 2020-03-18
8-K 2020-02-13
8-K 2020-02-06
8-K 2020-01-30
8-K 2020-01-13
8-K 2019-12-20
8-K 2019-12-06
8-K 2019-11-12
8-K 2019-11-07
8-K 2019-10-24
8-K 2019-09-06
8-K 2019-08-23
8-K 2019-08-08
8-K 2019-07-25
8-K 2019-05-31
8-K 2019-05-10
8-K 2019-05-09
8-K 2019-04-25
8-K 2019-03-01
8-K 2019-02-07
8-K 2019-02-06
8-K 2019-01-31
8-K 2018-11-14
8-K 2018-11-08
8-K 2018-10-25
8-K 2018-08-13
8-K 2018-08-09
8-K 2018-07-26
8-K 2018-05-14
8-K 2018-05-10
8-K 2018-05-10
8-K 2018-04-26
8-K 2018-02-16
8-K 2018-02-14
8-K 2018-02-08
8-K 2018-01-31

TSCO 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Note 1 - General:
Note 2 - Fair Value of Financial Instruments:
Note 3 - Share - Based Compensation:
Note 4 - Net Income per Share:
Note 5 - Debt:
Note 6 - Interest Rate Swaps:
Note 7 - Capital Stock and Dividends:
Note 8 - Treasury Stock:
Note 9 - Income Taxes:
Note 10 - Commitments and Contingencies:
Note 11 - Segment Reporting:
Note 12 - New Accounting Pronouncements:
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 q2202010qex311.htm
EX-31.2 q2202010qex312.htm
EX-32.1 q2202010qex321.htm

Tractor Supply Earnings 2020-06-27

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
2.41.91.41.00.50.02012201420172020
Rev, G Profit, Net Income
0.40.20.1-0.1-0.2-0.42012201420172020
Ops, Inv, Fin

tsco-20200627
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period endedJune 27, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to 
Commission file number   000-23314
tsco-20200627_g1.jpg
TRACTOR SUPPLY COMPANY
(Exact Name of Registrant as Specified in Its Charter)
Delaware13-3139732
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)
5401 Virginia Way, Brentwood, Tennessee 37027
(Address of Principal Executive Offices and Zip Code)
(615) 440-4000
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes      No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes     No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 Large accelerated filer
Accelerated filer
 Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)
Yes    No
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.008 par valueTSCONASDAQ Global Select Market
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.
ClassOutstanding at July 25, 2020
Common Stock, $.008 par value116,223,704




TRACTOR SUPPLY COMPANY

INDEX


  Page No.
   



Page 2

Index
PART I.  FINANCIAL INFORMATION
Item 1. Financial Statements
TRACTOR SUPPLY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(Unaudited)
June 27,
2020
December 28,
2019
June 29,
2019
ASSETS 
Current assets:   
Cash and cash equivalents$1,206,366  $84,241  $104,018  
Inventories1,688,508  1,602,781  1,733,150  
Prepaid expenses and other current assets135,238  100,865  95,051  
Income taxes receivable    5,589  
Total current assets3,030,112  1,787,887  1,937,808  
Property and equipment, net1,148,225  1,163,956  1,135,310  
Operating lease right-of-use assets2,268,623  2,188,802  2,091,439  
Goodwill and other intangible assets124,492  124,492  124,492  
Deferred income taxes12,866      
Other assets26,757  24,131  23,670  
Total assets$6,611,075  $5,289,268  $5,312,719  
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current liabilities:   
Accounts payable$1,003,697  $643,036  $681,529  
Accrued employee compensation77,419  39,755  26,932  
Other accrued expenses270,463  247,690  222,919  
Current portion of long-term debt380,000  30,000  22,500  
Current portion of finance lease liabilities4,319  4,036  3,717  
Current portion of operating lease liabilities287,326  277,099  264,707  
Income taxes payable133,830  5,984  49,082  
Total current liabilities2,157,054  1,247,600  1,271,386  
Long-term debt536,051  366,480  466,290  
Finance lease liabilities, less current portion32,093  30,389  27,394  
Operating lease liabilities, less current portion2,087,934  2,001,162  1,928,367  
Deferred income taxes  153  3,592  
Other long-term liabilities102,213  76,361  70,748  
Total liabilities4,915,345  3,722,145  3,767,777  
Stockholders’ equity:   
Preferred stock      
Common stock1,396  1,389  1,386  
Additional paid-in capital1,024,089  966,698  928,094  
Treasury stock(3,277,215) (3,013,996) (2,814,912) 
Accumulated other comprehensive (loss)/income(6,335) 199  882  
Retained earnings3,953,795  3,612,833  3,429,492  
Total stockholders’ equity1,695,730  1,567,123  1,544,942  
Total liabilities and stockholders’ equity$6,611,075  $5,289,268  $5,312,719  
Preferred Stock (shares in thousands): $1.00 par value; 40 shares authorized; no shares were issued or outstanding during any period presented.
Common Stock (shares in thousands): $0.008 par value; 400,000 shares authorized at all periods presented. 174,476, 173,608, and 173,238 shares issued; 116,180, 118,165, and 119,723 shares outstanding at June 27, 2020, December 28, 2019, and June 29, 2019, respectively.
Treasury Stock (at cost, shares in thousands): 58,296, 55,443, and 53,515 shares at June 27, 2020, December 28, 2019, and June 29, 2019, respectively.

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
Page 3

Index
TRACTOR SUPPLY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(Unaudited)

 For the Fiscal Three Months EndedFor the Fiscal Six Months Ended
 June 27,
2020
June 29,
2019
June 27,
2020
June 29,
2019
Net sales$3,176,327  $2,353,782  $5,135,515  $4,176,002  
Cost of merchandise sold2,019,514  1,533,037  3,317,453  2,740,273  
Gross profit1,156,813  820,745  1,818,062  1,435,729  
Selling, general and administrative expenses656,520  484,190  1,153,795  949,999  
Depreciation and amortization52,547  48,998  103,983  94,765  
Operating income447,746  287,557  560,284  390,965  
Interest expense, net8,438  5,176  13,487  10,106  
Income before income taxes439,308  282,381  546,797  380,859  
Income tax expense100,630  63,171  124,342  84,817  
Net income$338,678  $219,210  $422,455  $296,042  
Net income per share – basic$2.92  $1.82  $3.63  $2.45  
Net income per share – diluted$2.90  $1.80  $3.61  $2.43  
Weighted average shares outstanding:    
Basic115,912  120,371  116,325  120,791  
Diluted116,812  121,508  117,122  121,830  
Dividends declared per common share outstanding$0.35  $0.35  $0.70  $0.66  

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
Page 4

Index
TRACTOR SUPPLY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(Unaudited)

 For the Fiscal Three Months EndedFor the Fiscal Six Months Ended
 June 27,
2020
June 29,
2019
June 27,
2020
June 29,
2019
Net income$338,678  $219,210  $422,455  $296,042  
Other comprehensive loss:
Change in fair value of interest rate swaps, net of taxes(1,284) (2,185) (6,534) (3,649) 
Total other comprehensive loss(1,284) (2,185) (6,534) (3,649) 
Total comprehensive income$337,394  $217,025  $415,921  $292,393  

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
Page 5

Index
TRACTOR SUPPLY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands)
(Unaudited)
 Common Stock
Additional
Paid-in
Capital
Treasury
Stock
Accum. Other Comp. Income/(Loss)
Retained
Earnings
Total
Stockholders’
Equity
SharesDollars
Stockholders’ equity at
December 28, 2019
118,165  $1,389  $966,698  $(3,013,996) $199  $3,612,833  $1,567,123  
Common stock issuance under stock award plans & ESPP
280  2  10,601  10,603  
Share-based compensation expense6,945  6,945  
Repurchase of shares to satisfy tax obligations
(5,407) (5,407) 
Repurchase of common stock
(2,853) (263,219) (263,219) 
Cash dividends paid to stockholders(40,849) (40,849) 
Change in fair value of interest rate swaps, net of taxes
(5,250) (5,250) 
Net income83,777  83,777  
Stockholders’ equity at
March 28, 2020
115,592  $1,391  $978,837  $(3,277,215) $(5,051) $3,655,761  $1,353,723  
Common stock issuance under stock award plans & ESPP
588  5  39,732  39,737  
Share-based compensation expense7,504  7,504  
Repurchase of shares to satisfy tax obligations
(1,984) (1,984) 
Repurchase of common stock
      
Cash dividends paid to stockholders(40,644) (40,644) 
Change in fair value of interest rate swaps, net of taxes
(1,284) (1,284) 
Net income338,678  338,678  
Stockholders’ equity at
June 27, 2020
116,180  $1,396  $1,024,089  $(3,277,215) $(6,335) $3,953,795  $1,695,730  




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 Common Stock
Additional
Paid-in
Capital
Treasury
Stock
Accum. Other Comp. Income
Retained
Earnings
Total
Stockholders’
Equity
SharesDollars
Stockholders’ equity at
December 29, 2018
121,828  $1,375  $823,413  $(2,480,677) $3,814  $3,213,895  $1,561,820  
Common stock issuance under stock award plans & ESPP
570  5  34,727  34,732  
Share-based compensation expense9,624  9,624  
Repurchase of shares to satisfy tax obligations
(3,026) (3,026) 
Repurchase of common stock
(1,724) (155,319) (155,319) 
Cash dividends paid to stockholders(37,623) (37,623) 
Change in fair value of interest rate swaps, net of taxes
(1,464) (1,464) 
Net income76,832  76,832  
Cumulative adjustment as a result of ASU 2017-12 adoption717  (717)   
Stockholders’ equity at
March 30, 2019
120,674  $1,380  $864,738  $(2,635,996) $3,067  $3,252,387  $1,485,576  
Common stock issuance under stock award plans & ESPP
781  6  54,693  54,699  
Share-based compensation expense8,776  8,776  
Repurchase of shares to satisfy tax obligations
(113) (113) 
Repurchase of common stock
(1,732) (178,916) (178,916) 
Cash dividends paid to stockholders(42,105) (42,105) 
Change in fair value of interest rate swaps, net of taxes
(2,185) (2,185) 
Net income219,210  219,210  
Stockholders’ equity at
June 29, 2019
119,723  $1,386  $928,094  $(2,814,912) $882  $3,429,492  $1,544,942  

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 


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TRACTOR SUPPLY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
 For the Fiscal Six Months Ended
 June 27,
2020
June 29,
2019
Cash flows from operating activities:  
Net income$422,455  $296,042  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization103,983  94,765  
Gain on disposition of property and equipment(342) (309) 
Share-based compensation expense14,449  18,400  
Deferred income taxes(13,019) 10,199  
Change in assets and liabilities:  
Inventories(85,727) (143,608) 
Prepaid expenses and other current assets(34,373) 19,396  
Accounts payable360,661  61,548  
Accrued employee compensation37,664  (27,114) 
Other accrued expenses24,908  (21,856) 
Income taxes127,846  45,836  
Other34,633  (4,425) 
Net cash provided by operating activities993,138  348,874  
Cash flows from investing activities:  
Capital expenditures(86,624) (83,540) 
Proceeds from sale of property and equipment646  611  
Net cash used in investing activities(85,978) (82,929) 
Cash flows from financing activities:  
Borrowings under debt facilities1,159,000  567,000  
Repayments under debt facilities(639,000) (485,750) 
Debt issuance costs(1,237)   
Principal payments under finance lease liabilities(2,035) (1,805) 
Repurchase of shares to satisfy tax obligations(7,391) (3,139) 
Repurchase of common stock(263,219) (334,235) 
Net proceeds from issuance of common stock50,340  89,431  
Cash dividends paid to stockholders(81,493) (79,728) 
Net cash provided by/(used in) financing activities214,965  (248,226) 
Net change in cash and cash equivalents1,122,125  17,719  
Cash and cash equivalents at beginning of period84,241  86,299  
Cash and cash equivalents at end of period$1,206,366  $104,018  
Supplemental disclosures of cash flow information:  
Cash paid during the period for:  
Interest                                                                        $10,587  $10,006  
Income taxes6,825  27,196  
Supplemental disclosures of non-cash activities:
Non-cash accruals for construction in progress$5,789  $15,360  
Increase of operating lease assets and liabilities from new or modified leases219,105  133,044  
Increase of finance lease assets and liabilities from new or modified leases4,022    
Operating lease assets and liabilities recognized upon adoption of ASC 842  2,084,880  

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 
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TRACTOR SUPPLY COMPANY

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – General:

Nature of Business

Founded in 1938, Tractor Supply Company (the “Company” or “we” or “our” or “us”) is the largest rural lifestyle retailer in the United States (“U.S.”). The Company is focused on supplying the needs of recreational farmers, ranchers, and all those who enjoy living the rural lifestyle (which we refer to as the “Out Here” lifestyle), as well as tradesmen and small businesses. Stores are located primarily in towns outlying major metropolitan markets and in rural communities. The Company also owns and operates Petsense, LLC (“Petsense”), a small-box pet specialty supply retailer focused on meeting the needs of pet owners, primarily in small and mid-sized communities, and offering a variety of pet products and services. At June 27, 2020, the Company operated a total of 2,061 retail stores in 49 states (1,881 Tractor Supply and Del’s retail stores and 180 Petsense retail stores) and also offered an expanded assortment of products online at TractorSupply.com and Petsense.com.

Basis of Presentation

The accompanying interim unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 28, 2019.  The results of operations for our interim periods are not necessarily indicative of results for the full fiscal year.

The COVID-19 pandemic has created significant public health concerns as well as economic disruption, uncertainty, and volatility which may negatively affect our business operations. As a result, if the pandemic persists or worsens, our accounting estimates and assumptions could be impacted in subsequent interim reports and upon final determination at year-end, and it is reasonably possible such changes could be significant (although the potential effects cannot be estimated at this time).

Note 2 – Fair Value of Financial Instruments:

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.  These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company’s financial instruments consist of cash and cash equivalents, short-term receivables, trade payables, debt instruments, and interest rate swaps.  Due to their short-term nature, the carrying values of cash and cash equivalents, short-term receivables, and trade payables approximate current fair value at each balance sheet date. As described in further detail in Note 5 to the Condensed Consolidated Financial Statements, the Company had $917.5 million, $397.5 million, and $490.0 million in borrowings under its debt facilities at June 27, 2020, December 28, 2019, and June 29, 2019, respectively. Based on market interest rates (Level 2 inputs), the carrying value of borrowings in our debt facilities approximates fair value for each period reported. The fair value of the Company’s interest rate swaps is determined based on the present value of expected future cash flows using forward rate curves (a Level 2 input). As described in further detail in Note 6 to the Condensed Consolidated Financial Statements, the fair value of the interest rate swaps, excluding accrued interest, was a net liability of $8.5 million at June 27, 2020 and a net asset of $0.3 million and $0.9 million at December 28, 2019 and June 29, 2019, respectively.

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Note 3 – Share-Based Compensation:

Share-based compensation includes stock options, restricted stock units, performance-based restricted share units, and certain transactions under our Employee Stock Purchase Plan (the “ESPP”). Share-based compensation expense is recognized based on grant date fair value of all stock options, restricted stock units, and performance-based restricted share units plus a 15% discount on shares purchased by employees as a part of the ESPP. The discount under the ESPP represents the difference between the purchase date market value and the employee’s purchase price.

There were no significant modifications to the Company’s share-based compensation plans during the fiscal six months ended
June 27, 2020.

For the second quarter of fiscal 2020 and 2019, share-based compensation expense was $7.5 million and $8.8 million, respectively, and $14.4 million and $18.4 million for the first six months of fiscal 2020 and 2019, respectively.

Stock Options

The following table summarizes information concerning stock option grants during the first six months of fiscal 2020:
 Fiscal Six Months Ended
 June 27, 2020
Stock options granted417,025  
Weighted average exercise price$91.21  
Weighted average grant date fair value per option$18.57  

As of June 27, 2020, total unrecognized compensation expense related to non-vested stock options was approximately $11.2 million with a remaining weighted average expense recognition period of 2.2 years.

Restricted Stock Units and Performance-Based Restricted Share Units

The following table summarizes information concerning restricted stock unit and performance-based restricted share unit grants during the first six months of fiscal 2020:
 Fiscal Six Months Ended
 June 27, 2020
Restricted stock units granted305,029  
Performance-based restricted share units granted (a)
80,057  
Weighted average grant date fair value per share$91.98  
(a) Assumes 100% target level achievement of the relative performance targets.

In fiscal 2020, the Company granted awards that are subject to the achievement of specified performance goals. The performance metrics for the units are growth in net sales and growth in earnings per diluted share. The number of performance-based restricted share units presented in the foregoing table represent the shares that can be achieved at the performance metric target value. The actual number of shares that will be issued under the performance share awards, which may be higher or lower than the target, will be determined by the level of achievement of the performance goals. If the performance targets are achieved, the units will be issued based on the achievement level and the grant date fair value and will cliff vest in full on the third anniversary of the date of the grant.

As of June 27, 2020, total unrecognized compensation expense related to non-vested restricted stock units and non-vested performance-based restricted share units was approximately $45.1 million with a remaining weighted average expense recognition period of 2.2 years.

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Note 4 – Net Income Per Share:

The Company presents both basic and diluted net income per share on the Condensed Consolidated Statements of Income.  Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the period.  Diluted net income per share is calculated by dividing net income by the weighted average diluted shares outstanding during the period. Dilutive shares are computed using the treasury stock method for share-based awards. Performance-based restricted share units are included in diluted shares only if the related performance conditions are considered satisfied as of the end of the reporting period. Net income per share is calculated as follows (in thousands, except per share amounts):
 Fiscal Three Months EndedFiscal Three Months Ended
June 27, 2020June 29, 2019
 IncomeSharesPer Share
Amount
IncomeSharesPer Share
 Amount
Basic net income per share:$338,678  115,912  $2.92  $219,210  120,371  $1.82  
Dilutive effect of share-based awards  900  (0.02)   1,137  (0.02) 
Diluted net income per share:$338,678  116,812  $2.90