Net (Loss) Income Per Share

6 Months Ended

Jul. 28, 2012

Net (Loss) Income Per Share [Abstract]

Net (Loss) Income Per Share

NOTE 5 – Net (Loss) Income Per Share

Net (loss) income per share, basic, is computed based on the weighted-average number of common shares outstanding for the period, including consideration of the two-class method with respect to certain of the Company’s other equity securities (see below). Net (loss) income per share, diluted, is computed based on the weighted-average number of common and potentially dilutive common equivalent shares outstanding for the period, also with consideration given to the two-class method.

While the Company historically has paid no cash dividends, participants in the Company’s equity compensation plans who were granted restricted stock and performance shares are allowed to receive cash dividends paid on unvested restricted stock and unvested performance shares. The Company’s unvested restricted stock and unvested performance shares also qualify as participating securities and are included in the computation of earnings per share pursuant to the two-class method. For the dilutive computation, under the two-class method, determination of whether the unvested share-based payment awards are dilutive is based on the application of the “treasury stock” method and whether the performance criteria has been met. For the 13 and 26 weeks ended July 28, 2012, the Company incurred a net loss and, there is no dilutive effect of any unvested share-based payment awards. For the 13 and 26 weeks ended July 30, 2011, the effect of the unvested share-based payment awards was anti-dilutive to the computation of diluted earnings per share.

The two-class method requires allocation of undistributed earnings per share between the common stock and unvested share-based payment awards based on the dividend and other distribution participation rights under each of these securities. The following table summarizes the allocation of undistributed earnings among common stock and other participating securities using the two-class method and reconciles the weighted average common shares used in the computation of basic and diluted earnings per share (in thousands, except share data):

	13 Weeks Ended
	July 28, 2012								July 30, 2011
	Net Loss			Shares		Per Share Amount			Net Income			Shares		Per Share Amount
Net (loss) income per share, basic:
Net (loss) income	$	(12,369	)						$	2,198
Less: Undistributed earnings allocable to participating securities		—								(59	)
Net (loss) income per share, basic	$	(12,369	)		88,585,063	$	(0.14	)	$	2,139			95,731,926	$	0.02
Net (loss) income per share, diluted:
Net (loss) income	$	(12,369	)						$	2,198
Less: Undistributed earnings allocable to participating securities		—								(59	)
Effect of dilutive securities					—								103,118
Net (loss) income per share, diluted	$	(12,369	)		88,585,063	$	(0.14	)	$	2,139			95,835,044	$	0.02

	26 Weeks Ended
	July 28, 2012								July 30, 2011
	Net Loss			Shares		Per Share Amount			Net Income			Shares		Per Share Amount
Net (loss) income per share, basic:
Net (loss) income	$	(12,642	)						$	10,211
Less: Undistributed earnings allocable to participating securities		—								(249	)
Net (loss) income per share, basic	$	(12,642	)		88,536,020	$	(0.14	)	$	9,962			97,324,336	$	0.10
Net (loss) income per share, diluted:
Net (loss) income	$	(12,642	)						$	10,211
Less: Undistributed earnings allocable to participating securities		—								(249	)
Effect of dilutive securities					—								75,013
Net (loss) income per share, diluted	$	(12,642	)		88,536,020	$	(0.14	)	$	9,962			97,399,349	$	0.10

The computations of net (loss) income per share, diluted, excluded the following potentially dilutive securities exercisable into Class A common stock for the 13 and 26 weeks ended July 28, 2012, and July 30, 2011, respectively, because their effect would not have been dilutive.

	13 Weeks Ended				26 Weeks Ended
	July 28, 2012		July 30, 2011		July 28, 2012		July 30, 2011
Stock options outstanding		2,737,632		2,253,002		2,712,136		2,490,845
Performance shares and nonvested restricted stock awards		1,813,329		2,659,099		1,916,896		2,433,945
Total		4,550,961		4,912,101		4,629,032		4,924,790