EARNINGS PER SHARE AND STOCK REPURCHASES

3 Months Ended

Aug. 30, 2011

NOTE B – EARNINGS PER SHARE AND STOCK REPURCHASES

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during each period presented. Diluted earnings per share gives effect to stock options and restricted stock outstanding during the applicable periods. The following table reflects the calculation of weighted-average common and dilutive potential common shares outstanding as presented in the accompanying Condensed Consolidated Statements of Income (in thousands):

		Thirteen weeks ended
		August 30, 2011		August 31, 2010
Net income	$	3,093	$	12,397

Weighted-average common shares outstanding		63,755		63,681
Dilutive effect of stock options and restricted stock		721		731
Weighted average common and dilutive potential
common shares outstanding		64,476		64,412
Basic earnings per share	$	0.05	$	0.19
Diluted earnings per share	$	0.05	$	0.19

Stock options with an exercise price greater than the average market price of our common stock and certain options with unrecognized compensation expense do not impact the computation of diluted earnings per share because the effect would be anti-dilutive. The following table summarizes stock options and restricted shares that did not impact the computation of diluted earnings per share because their inclusion would have had an anti-dilutive effect (in thousands):

	Thirteen weeks ended
	August 30, 2011	August 31, 2010
Stock options	1,551	2,821
Restricted shares	852	487
Total	2,403	3,308

During the first quarter of fiscal 2012, we repurchased 2.0 million shares of our common stock at a cost of $18.4 million. As of August 30, 2011, the total number of remaining shares authorized by our Board of Directors to be repurchased was 5.9 million. All shares repurchased during the current quarter had been cancelled as of August 30, 2011.