7. Accrued Dividends Payable and Dividends per Common Share

We make an accrual of dividends payable at the end of each quarter according to the Company’s dividend policy adopted by its Board of Directors. According to the dividend policy, the Company pays a dividend to shareholders of its Common Stock and Class A Common Stock on a quarterly basis for each quarter for which the Company reports net income attributable to Cal-Maine Foods, Inc. computed in accordance with generally accepted accounting principles in an amount equal to one-third (1/3) of such quarterly income. Dividends are paid to shareholders of record as of the 60th day following the last day of such quarter, except for the fourth fiscal quarter. For the fourth quarter, the Company will pay dividends to shareholders of record on the 70th day after the quarter end. Dividends are payable on the 15th day following the record date. Following a quarter for which the Company does not report net income attributable to Cal-Maine Foods, Inc., the Company will not pay a dividend for a subsequent profitable quarter until the Company is profitable on a cumulative basis computed from the date of the last quarter for which a dividend was paid. The amount of the accrual appears on the Condensed Consolidated Balance Sheets as “Accrued dividends payable.”

In the fourth quarter of fiscal 2013 the Company reported a net loss attributable to Cal-Maine Foods, Inc. of $3.8 million. As a result total dividends paid for the thirty-nine weeks ended March 1, 2014 are calculated only on net income attributable to Cal-Maine Foods, Inc. in excess of $3.8 million.

On our condensed consolidated statement of income, we determine dividends per common share in accordance with the computation in the following table (in thousands, except per share data):



	13 Weeks Ended				39 Weeks Ended
	March 1, 2014		March 2, 2013		March 1, 2014		March 2, 2013
Net income attributable to Cal-Maine Foods, Inc.	$	42,853	$	30,551	$	77,715	$	54,256
Fourth quarter fiscal 2013 loss		-		-		(3,833)		-
Net income available for dividend calculation		42,853		30,551		73,882		54,256


1/3 of net income attributable to Cal-Maine Foods, Inc. available for dividend		14,284		10,184		24,627		18,085

Accrued dividends payable		14,284		10,184

Common stock outstanding (shares)		21,782		21,698
Class A common stock outstanding (shares)		2,400		2,400
Total common stock outstanding (shares)		24,182		24,098

Dividends per common share*	$	0.591	$	0.423	$	1.020	$	0.753

*Dividends per common share = 1/3 of Net income (loss) attributable to Cal-Maine Foods, Inc. available for dividend ÷ Total common stock outstanding (shares)