3 - Earnings Per Share

9 Months Ended

Apr. 27, 2013

Notes

3 - Earnings Per Share

3.         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.  

		April 27, 2013
		13 Weeks Ended				39 Weeks Ended
		Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	3,245	$	1,262	$	13,698	$	5,394
Conversion of Class B to Class A shares		1,262		-		5,394		-
Effect of share-based compensation on allocated net income		5		(3)		-		-
Net income allocated, diluted	$	4,512	$	1,259	$	19,092	$	5,394
Denominator:
Weighted average shares outstanding, basic		8,492		5,007		8,146		5,336
Conversion of Class B to Class A shares		5,007		-		5,336		-
Dilutive effect of share-based compensation		96		-		110		-
Weighted average shares outstanding, diluted		13,595		5,007		13,592		5,336
		April 28, 2012
		13 Weeks Ended				39 Weeks Ended
		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

            Outstanding stock options to purchase Class A shares of 3 and 222 were excluded from the calculation of diluted net income per share at April 27, 2013 and April 28, 2012, respectively, as a result of their anti-dilutive effect. In addition, 299 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 both April 27, 2013 and April 28, 2012, respectively, due to their anti-dilutive effect.