Net income per share: basic & diluted

3 Months Ended

Apr. 28, 2012

Earnings Per Share

Earnings Per Share

4.         The Company computes net income per share using the two-class method,  an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings.  Under the two-class method, our Class A common stock is assumed to receive a 54% greater participation in undistributed earnings than our Class B common stock, in accordance with the classes’ respective dividend rights.   

Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to shares of Class A common stock on a share-for-share basis, as this method is more dilutive than the two-class method.   Diluted net income per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock. 

            The tables below reconcile the numerators and denominators of basic and diluted net income per share for all periods presented.   

	13 Weeks Ended		39 Weeks Ended
	April 28, 2012
	Class A	Class B	Class A	Class B
Numerator:
Net income allocated, basic	$4,016	$2,356	$13,757	$8,091
Conversion of Class B to Class A shares	2,356	-	8,091	-
Effect of share-based compensation on allocated net income	16	(11)	67	(39)
Net income allocated, diluted	$6,388	$2,345	$21,915	$8,052
Denominator:
Weighted average shares outstanding, basic	7,044	6,362	7,030	6,366
Conversion of Class B to Class A shares	6,362	-	6,366	-
Dilutive effect of share-based compensation	95	-	81	-
Weighted average shares outstanding, diluted	13,501	6,362	13,477	6,366
	13 Weeks Ended		39 Weeks Ended
	April 30, 2011
	Class A	Class B	Class A	Class B
Numerator:
Net income allocated, basic	$1,020	$607	$7,474	$4,431
Conversion of Class B to Class A shares	607	-	4,431	-
Effect of share-based compensation on allocated net income	2	(2)	-	-
Net income allocated, diluted	$1,629	$605	$11,905	$4,431
Denominator:
Weighted average shares outstanding, basic	6,905	6,376	6,827	6,376
Conversion of Class B to Class A shares	6,376	-	6,376	-
Dilutive effect of share-based compensation	106	-	117	-
Weighted average shares outstanding, diluted	13,387	6,376	13,320	6,376

            Outstanding stock options to purchase Class A shares of 222 and 29 were excluded from the calculation of diluted net income per share at April 28, 2012 and April 30, 2011, respectively, as a result of their anti-dilutive effect. In addition, 300 and 292 non-vested restricted Class A shares, which are considered participating securities, and their allocated net income were excluded from the diluted net income per share calculation at April 28, 2012 and April 30, 2011, respectively, due to their anti-dilutive effect.