Earnings Per Share

3 Months Ended

May. 30, 2015

Basic earnings per share attributable to The Finish Line, Inc. shareholders is calculated by dividing net income attributable to The Finish Line, Inc. associated with common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share attributable to The Finish Line, Inc. shareholders assumes the issuance of additional shares of common stock by the Company upon exercise of all outstanding stock options and contingently issuable securities if the effect is dilutive, in accordance with the treasury stock method or two-class method (whichever is more dilutive) discussed in Accounting Standards Codification (“ASC”) 260-10, Earnings Per Share.

ASC 260-10 requires the inclusion of restricted stock as participating securities, since they have the right to share in dividends, if declared, equally with common shares. During periods of net income, participating securities are allocated a proportional share of net income attributable to The Finish Line, Inc. determined by dividing total weighted average participating securities by the sum of total weighted average common shares and participating securities (“the two-class method”). During periods of net loss, no effect is given to participating securities since they do not share in the losses of the Company. Participating securities have the effect of diluting both basic and diluted earnings per share during periods of net income.

The following is a reconciliation of the numerators and denominators used in computing earnings per share (in thousands, except per share amounts):



	Thirteen Weeks Ended
	May 30, 2015		May 31, 2014
Net income attributable to The Finish Line, Inc.	$	13,789	$	12,435
Net income attributable to The Finish Line, Inc. attributable to participating securities	165		149
Net income attributable to The Finish Line, Inc. available to common shareholders	$	13,624	$	12,286
Basic earnings per share attributable to The Finish Line, Inc. shareholders:
Weighted-average number of common shares outstanding	45,436		47,929
Basic earnings per share attributable to The Finish Line, Inc. shareholders	$	0.30	$	0.26
Diluted earnings per share attributable to The Finish Line, Inc. shareholders:
Weighted-average number of common shares outstanding	45,436		47,929
Dilutive effect of potential common shares(a)	283		431
Diluted weighted-average number of common shares outstanding	45,719		48,360
Diluted earnings per share attributable to The Finish Line, Inc. shareholders	$	0.30	$	0.25


(a)	The computation of diluted earnings per share attributable to The Finish Line, Inc. shareholders excludes options to purchase approximately 1.4 million and 0.6 million shares of common stock in the thirteen weeks ended May 30, 2015 and May 31, 2014, respectively, because the impact of such options would have been anti-dilutive.