Earnings Per Share

6 Months Ended

Dec. 29, 2012

Earnings Per Share

7. Earnings Per Share

Accounting Standards Codification (ASC) 260-10-45, Participating Securities and the Two-Class Method ("ASC 260-10-45"), addresses whether awards granted in unvested share-based payment transactions that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and therefore are included in computing earnings per share under the two-class method. Participating securities are securities that may participate in dividends with common stock and the two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Under the two-class method, earnings for the period are allocated between common shareholders and other shareholders, based on their respective rights to receive dividends. Certain restricted stock awards granted under our Equity Plans are considered participating securities as these awards receive non-forfeitable dividends at the same rate as common stock.

The computations of our basic and diluted earnings per share are set forth below:

	Three Months Ended					Six Months Ended
	December 29, 2012			December 31, 2011		December 29, 2012			December 31, 2011
Basic earnings per share:
Net income	$	13.2		$	9.5	$	25.1		$	17.8
Less: Income allocable to participating securities		(0.2	)		—		(0.4	)		—
Earnings available to common stockholders	$	13.0		$	9.5	$	24.7		$	17.8
Weighted average shares outstanding, basic		18.8			18.5		18.8			18.5
Earnings per share, basic	$	0.69		$	0.51	$	1.32		$	0.96
Diluted earnings per share:
Earnings available to common stockholders	$	13.0		$	9.5	$	24.7		$	17.8
Weighted average shares outstanding, basic		18.8			18.5		18.8			18.5
Weighted average effect of non-vested restricted stock grants and assumed exercise of stock options		0.3			0.2		0.2			0.1
Weighted average shares outstanding, diluted		19.1			18.7		19.0			18.6
Earnings per share, diluted	$	0.68		$	0.51	$	1.30		$	0.95

We excluded potential common shares related to our outstanding equity compensation grants of 0.6 million and 1.3 million for the three months ended December 29, 2012 and December 31, 2011, respectively, and 0.5 million and 1.3 million for the six months ended December 29, 2012 and December 31, 2011, respectively, from the computation of diluted earnings per share. Inclusion of these shares would have been anti-dilutive.