Earnings Per Share

12 Months Ended

Mar. 01, 2014

Earnings Per Share

Earnings Per Share

Basic earnings per share attributable to The Finish Line, Inc. 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. 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 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 shareholders. 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 for each of the following years (in thousands, except per share amounts):

	2014		2013		2012
Net income attributable to The Finish Line, Inc.	$	76,903	$	71,473	$	84,804
Net income attributable to The Finish Line, Inc. attributable to participating securities	919		653		691
Net income attributable to The Finish Line, Inc. available to common shareholders	$	75,984	$	70,820	$	84,113
Basic earnings per share attributable to The Finish Line, Inc. shareholders:
Weighted-average number of common shares outstanding	48,286		49,824		52,020
Basic earnings per share attributable to The Finish Line, Inc. shareholders	$	1.57	$	1.42	$	1.62
Diluted earnings per share attributable to The Finish Line, Inc. shareholders:
Weighted-average number of common shares outstanding	48,286		49,824		52,020
Dilutive effect of potential common shares(a)	415		667		798
Diluted weighted-average number of common shares outstanding	48,701		50,491		52,818
Diluted earnings per share attributable to The Finish Line, Inc. shareholders	$	1.56	$	1.40	$	1.59

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(a) The computation of diluted earnings per share attributable to The Finish Line, Inc. shareholders excludes options to purchase approximately 1.1 million, 0.9 million and 0.4 million shares of common stock in 2014, 2013 and 2012, respectively, because the impact of such options would have been antidilutive.