Earnings Per Share

6 Months Ended

Aug. 02, 2014

Earnings Per Share [Abstract]

Earnings Per Share

5. Earnings Per Share

We calculate earnings per common share (“EPS”) using the two-class method. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of EPS. Our restricted stock awards in 2013 and prior are considered “participating securities” because they contain non-forfeitable rights to dividends.

The following table presents the calculation of basic and diluted EPS (shares in thousands):

	13 Weeks Ended August 2, 2014		13 Weeks Ended August 3, 2013		26 Weeks Ended August 2, 2014		26 Weeks Ended August 3, 2013
Basic Earnings Per Common Share:
Net income	$	1,737	$	3,414	$	15,812	$	18,106
Income allocated to participating securities		24		96		309		464
Net income available to common shareholders	$	1,713	$	3,318	$	15,503	$	17,642
Basic weighted-average shares outstanding		43,814		42,931		43,822		42,872
Basic earnings per share	$	0.04	$	0.08	$	0.35	$	0.41
Diluted Earnings Per Common Share:
Net income	$	1,737	$	3,414	$	15,812	$	18,106
Income allocated to participating securities		24		95		306		459
Net income available to common shareholders	$	1,713	$	3,319	$	15,506	$	17,647
Basic weighted-average shares outstanding		43,814		42,931		43,822		42,872
Incremental shares from share-based compensation plans		890		776		758		613
Diluted weighted-average shares outstanding		44,704		43,707		44,580		43,485
Diluted earnings per share	$	0.04	$	0.08	$	0.35	$	0.41

Options to acquire shares totaling approximately 0.3 million and 0.1 million shares of common stock that were outstanding during the second quarters of 2014 and 2013, respectively, were not included in the computation of diluted earnings per common share. Options excluded were those that had exercise prices greater than the average market price of the common shares such that inclusion would have been anti-dilutive. For the first 6 months of 2014 and 2013, options to acquire shares of approximately 0.2 million and 0.6 million shares of common stock, respectively, were not included in the computation of diluted earnings per share for the aforementioned reasons.