Earnings (Loss) Per Share

9 Months Ended

Oct. 06, 2012

Earnings Per Share [Text Block]

Note 12 – Earnings (Loss) Per Share

                The following table reflects the calculation of basic and diluted earnings (loss) per share:

		Third Quarter		Year-to-Date
		Ended		Ended
(In thousands, except per share amounts)		October 6, 2012	October 8, 2011	October 6, 2012	October 8, 2011
Net earnings (loss)	$	14,604	10,093	(64,910)	27,625
Net earnings (loss) per share-basic:
Weighted-average shares outstanding		12,962	12,873	12,963	12,780
Net earnings (loss) per share-basic	$	1.13	0.78	(5.01)	2.16
Net earnings (loss) per share-diluted:
Weighted-average shares outstanding		12,962	12,873	12,963	12,780
Shares contingently issuable		78	232	-	276
Weighted-average shares and potential dilutive shares outstanding		13,040	13,105	12,963	13,056
Net earnings (loss) per share-diluted	$	1.12	0.77	(5.01)	2.12

                In 2011, SARs were excluded from the calculation of diluted net earnings per share because the exercise price was greater than the market price of the stock and would have been anti-dilutive under the treasury stock method.

The senior subordinated convertible notes due in 2035 will be convertible at the option of the holder, only upon the occurrence of certain events, at an adjusted conversion rate of 9.7224 shares (initially 9.3120) of our common stock per $1,000 principal amount at maturity of notes (equal to an adjusted conversion price of approximately $47.94 per share). Upon conversion, we will pay the holder the conversion value in cash up to the accreted principal amount of the note and the excess conversion value, if any, in cash, stock or both, at our option.  The notes are only dilutive above their accreted value and for all periods presented the weighted average market price of the Company’s stock did not exceed the accreted value.  Therefore, the notes are not dilutive to earnings per share for any of the periods presented.  

                Vested shares deferred by executives and board members are included in the calculation of basic earnings per share.  Other performance units and RSUs granted between 2007 and 2012 pursuant to the 2000 Plan and 2009 Plan will be settled in shares of Nash Finch common stock.  Unvested RSUs are not included in basic earnings per share until vested. 

Due to the net loss for the year-to-date period of 2012, the calculation of diluted earnings per share is the same as the calculation of basic earnings per share.  When a separate calculation of diluted earnings per share is made, as it was for the third quarters of 2012 and 2011 and year-to-date period of 2011, all shares of time-restricted stock are included in diluted earnings per share using the treasury stock method, if dilutive.  Performance units granted for the LTIP are only issuable if certain performance criteria are met, making these shares contingently issuable.  Therefore, the performance units were included in diluted earnings per share for the third quarters of 2012 and 2011 and year-to-date period of 2011 at the payout percentage based on performance criteria results as of the end of the respective reporting period and then accounted for using the treasury stock method, if dilutive.  For the third quarter of 2012, approximately 31,000 shares related to the LTIP and 47,000 shares related to RSUs were included under “shares contingently issuable” in the calculation of diluted EPS as compared to approximately 74,000 shares related to the LTIP and 154,000 shares related to RSUs during the third quarter of 2011.  For year-to-date 2011, approximately 60,000 shares related to the LTIP and 214,000 shares related to RSUs were included under “shares contingently issuable” in the calculation of diluted EPS.