Earnings Per Share

3 Months Ended

Oct. 27, 2012

Notes

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
	October 27, 2012
	Class A	Class B
Numerator:
Net income allocated, basic	$3,932	$1,776
Conversion of Class B to Class A shares	1,776	-
Effect of share-based compensation on allocated net income	11	(11)
Net income allocated, diluted	$5,719	$1,765
Denominator:
Weighted average shares outstanding, basic	7,549	5,913
Conversion of Class B to Class A shares	5,913	-
Dilutive effect of share-based compensation	129	-
Weighted average shares outstanding, diluted	13,591	5,913

	13 Weeks Ended
	October 29, 2011
	Class A	Class B
Numerator:
Net income allocated, basic	$4,128	$2,435
Conversion of Class B to Class A shares	2,435	-
Effect of share-based compensation on allocated net income	24	(10)
Net income allocated, diluted	$6,587	$2,425
Denominator:
Weighted average shares outstanding, basic	7,017	6,373
Conversion of Class B to Class A shares	6,373	-
Dilutive effect of share-based compensation	59	-
Weighted average shares outstanding, diluted	13,449	6,373

Outstanding stock options to purchase Class A shares of 418 were excluded from the calculation of diluted net income per share at October 29, 2011 as a result of their anti-dilutive effect. In addition, 299 and 293 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 October 27, 2012 and October 29, 2011, respectively, due to their anti-dilutive effect.