Earnings Per Share

9 Months Ended

Nov. 26, 2011

Earnings Per Share

5. 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”.

ASC 260-10 requires the inclusion of restricted stock as participating securities, as 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				Thirty-Nine Weeks Ended
	November 26, 2011		November 27, 2010		November 26, 2011		November 27, 2010
Income from continuing operations	$	5,548	$	4,134	$	42,884	$	34,607
Income from continuing operations attributable to participating securities		45		58		343		494
Income from continuing operations available to common shareholders	$	5,503	$	4,076	$	42,541	$	34,113
Basic earnings from continuing operations per share:
Weighted-average number of common shares outstanding		51,338		52,587		52,267		53,109
Basic earnings from continuing operations per share	$	0.11	$	0.08	$	0.81	$	0.64
Diluted earnings from continuing operations per share:
Weighted-average number of common shares outstanding		51,338		52,587		52,267		53,109
Stock options(a)		744		764		809		769
Diluted weighted-average number of common shares outstanding		52,082		53,351		53,076		53,878
Diluted earnings from continuing operations per share	$	0.11	$	0.08	$	0.80	$	0.63

(a) The computation of diluted earnings from continuing operations per share excludes options to purchase approximately 0.5 million and 1.2 million shares of common stock in the thirteen weeks ended November 26, 2011 and November 27, 2010, respectively, and 0.4 million and 1.3 million shares of common stock in the thirty-nine weeks ended November 26, 2011 and November 27, 2010, respectively, because the impact of such options would have been anti-dilutive.