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Earnings Per Share
 6 Months Ended
Aug. 27, 2011
Earnings Per Share

4. Earnings Per Share

Basic earnings from continuing operations per share is calculated by dividing income from continuing operations associated with common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share 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”.

On March 1, 2009, the Company adopted amendments to ASC 260-10, which impacted the determination and reporting of earnings per share by requiring the inclusion of restricted stock as participating securities, since they have the right to share in dividends, if declared, equally with common shareholders. During periods of net income, participating securities are allocated a proportional share of net income 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      Twenty-six weeks ended  
     August 27,
2011		      August 28,
2010		      August 27,
2011		      August 28,
2010		  

Income from continuing operations

    $ 20,920       $ 16,804       $ 37,336       $ 30,473   

Income from continuing operations attributable to participating securities

      169         235         298         436   
  

 

 

     

 

 

     

 

 

     

 

 

  

Income from continuing operations available to common shareholders

    $ 20,751       $ 16,569       $ 37,038       $ 30,037   
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic earnings from continuing operations per share:

         

Weighted-average number of common shares outstanding

      52,357         53,266         52,732         53,370   

Basic earnings from continuing operations per share

    $ 0.40       $ 0.31       $ 0.70       $ 0.56   

Diluted earnings from continuing operations per share:

         

Weighted-average number of common shares outstanding

      52,357         53,266         52,732         53,370   

Stock options(a)

      786         720         841         771   
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted weighted-average number of common shares outstanding

      53,143         53,986         53,573         54,141   
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted earnings from continuing operations per share

    $ 0.39       $ 0.31       $ 0.69       $ 0.56   

 

(a) The computation of diluted earnings from continuing operations per share excludes options to purchase approximately 0.4 million and 1.3 million shares of common stock in the thirteen weeks ended August 27, 2011 and August 28, 2010, respectively, and 0.4 million and 1.3 million shares of common stock in the twenty-six weeks ended August 27, 2011 and August 28, 2011, respectively, because the impact of such options would have been antidilutive.