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Net Income Per Share
 3 Months Ended
Apr. 01, 2014
Net Income Per Share  
Net Income Per Share

7.  Net Income Per Share

 

At April 1, 2014 and April 2, 2013, 1.8 million and 1.4 million shares, respectively, of restricted stock issued to employees were unvested, and therefore excluded from the calculation of basic earnings per share for the fiscal quarters ended on those dates.  Diluted net income per share includes the dilutive effect of outstanding equity awards, calculated using the treasury stock method.  Assumed proceeds from the in-the-money options include the windfall tax benefits, net of shortfalls, calculated under the “as-if” method as prescribed by FASB Accounting Standards Codification (“ASC”) 718, “Compensation — Stock Option Compensation.”

 

 

 

Thirteen
Weeks Ended
April 1, 2014

 

Thirteen
Weeks Ended
April 2, 2013

 

 

 

(In thousands, except per share data)

 

Net income

 

$

22,518

 

$

25,292

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

50,745

 

52,255

 

Dilutive effect of equity awards

 

2,099

 

2,050

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

52,844

 

54,305

 

 

 

 

 

 

 

Basic net income per share

 

$

0.44

 

$

0.48

 

 

 

 

 

 

 

Diluted net income per share

 

$

0.43

 

$

0.47

 

 

Shares of common stock equivalents of 0.7 million and 2.4 million for the thirteen weeks ended April 1, 2014 and April 2, 2013, respectively, were excluded from the diluted calculation due to their anti-dilutive effect.

 

Certain of our restricted stock awards are considered participating securities as these awards include non-forfeitable rights to dividends with respect to unvested shares.  As such, they must be included in the computation of earnings per share pursuant to the two-class method.  Under the two-class method, a portion of net income is allocated to participating securities, and therefore is excluded from the calculation of earnings per share allocated to common shares.  The calculation of basic and diluted earnings per share pursuant to the two-class method resulted in an immaterial difference from the amounts displayed in the consolidated statements of comprehensive income.