Earnings Per Share

9 Months Ended

Nov. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to the Company’s common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share attributable to the Company’s common 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, 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 attributable to the Company’s common shareholders 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 attributable to the Company’s common shareholders during periods of net income.

The following is a reconciliation of the numerators and denominators used in computing earnings per share attributable to the Company’s common shareholders (in thousands, except per share amounts):

	Thirteen Weeks Ended					Thirty-Nine Weeks Ended
	(unaudited)					(unaudited)
	November 30, 2013		December 1, 2012			November 30, 2013		December 1, 2012
Net income (loss) attributable to The Finish Line, Inc.	$	2,318	$	(107	)	$	33,900	$	37,144
Net income attributable to participating securities	28		—			405		312
Net income (loss) available to The Finish Line, Inc. shareholders	$	2,290	$	(107	)	$	33,495	$	36,832
Basic earnings per share:
Weighted-average number of common shares outstanding	48,330		49,949			48,313		50,277
Basic earnings per share	$	0.05	$	—		$	0.69	$	0.73
Diluted earnings per share:
Weighted-average number of common shares outstanding	48,330		49,949			48,313		50,277
Stock options(a)	379		—			420		700
Diluted weighted-average number of common shares outstanding	48,709		49,949			48,733		50,977
Diluted earnings per share	$	0.05	$	—		$	0.69	$	0.72

(a) The computation of diluted earnings per share excludes options to purchase approximately 1.0 million shares of common stock in the thirteen weeks ended November 30, 2013 and 1.2 million and 0.8 million shares of common stock in the thirty-nine weeks ended November 30, 2013 and December 1, 2012, respectively, because the impact of such options would have been anti-dilutive.