Earnings Per Share

9 Months Ended

Oct. 08, 2011

Net earnings per share:

Earnings Per Share [Text Block]

Note 11– Earnings Per Share

                The following table reflects the calculation of basic and diluted earnings per share:

		Third Quarter		Year-to-Date
		Ended		Ended
(In thousands, except per share amounts)		October 8, 2011	October 9, 2010	October 8, 2011	October 9, 2010
Net earnings	$	10,093	15,346	27,625	34,001
Net earnings per share-basic:
Weighted-average shares outstanding		12,873	12,656	12,780	12,870
Net earnings per share-basic	$	0.78	1.21	2.16	2.64
Net earnings per share-diluted:
Weighted-average shares outstanding		12,873	12,656	12,780	12,870
Shares contingently issuable		232	382	276	353
Weighted-average shares and potential dilutive shares outstanding		13,105	13,038	13,056	13,223
Net earnings per share-diluted	$	0.77	1.18	2.12	2.57

                SARs are excluded from the calculation of diluted net earnings per share because the exercise price was greater than the market price of the stock and would have been anti-dilutive under the treasury stock method.

                The senior subordinated convertible notes due in 2035 will be convertible at the option of the holder, only upon the occurrence of certain events, at an adjusted conversion rate of 9.6224 shares (initially 9.3120) of our common stock per $1,000 principal amount at maturity of notes (equal to an adjusted conversion price of approximately $48.44 per share). Upon conversion, we will pay the holder the conversion value in cash up to the accreted principal amount of the note and the excess conversion value, if any, in cash, stock or both, at our option.  The notes are only dilutive above their accreted value and for all periods presented the weighted average market price of the Company’s stock did not exceed the accreted value.  Therefore, the notes are not dilutive to earnings per share for any of the periods presented.  

                During the second quarters of 2011 and 2010, performance units granted under the 2008 LTIP Plan and 2007 LTIP Plan, respectively, were settled in shares of common stock, some of which were deferred by executives as required by the plan.  Vested shares deferred by executives and board members are included in the calculation of basic earnings per share.  Other performance units and RSUs granted during 2007, 2008, 2009, 2010 and 2011 pursuant to the 2000 Plan and 2009 Plan will be settled in shares of Nash Finch common stock.  Unvested RSUs are not included in basic earnings per share until vested.  All shares of time-restricted stock are included in diluted earnings per share using the treasury stock method, if dilutive.  Performance units granted for the LTIP are only issuable if certain performance criteria are met, making these shares contingently issuable under ASC Topic 260 – Earnings Per Share.  Therefore, the performance units are included in diluted earnings per share at the payout percentage based on performance criteria results as of the end of the respective reporting period and then accounted for using the treasury stock method, if dilutive.  For the third quarter 2011, approximately 74,000 shares related to the LTIP and 154,000 shares related to RSUs were included under “shares contingently issuable” in the calculation of diluted EPS as compared to approximately 171,000 shares related to the LTIP and 208,000 shares related to RSUs during the third quarter 2010.  For year-to-date 2011, approximately 60,000 shares related to the LTIP and 214,000 shares related to RSUs were included under “shares contingently issuable” in the calculation of diluted EPS as compared to approximately 142,000 shares related to the LTIP and 210,000 shares related to RSUs during year-to-date 2010.