Note 6. Net Income Per Share

9 Months Ended

May 25, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

6.Net Income Per Share

The Company calculates net income per share in accordance with US GAAP, which requires the Company to allocate income to its unvested participating securities as part of its earnings per share (“EPS”) calculations. The following table sets forth the computation of basic earnings per share using the two-class method for amounts attributable to the Company’s shares of Common Stock and Class B Common Stock (in thousands, except per share data):

	Thirteen weeks ended				Thirty-nine weeks ended
	May 25, 2013		May 26, 2012		May 25, 2013		May 26, 2012
Net income	$	28,722	$	27,459	$	86,124	$	72,457
Allocation of net income for Basic:
Common Stock	$	22,638	$	21,587	$	67,793	$	56,926
Class B Common Stock		5,647		5,381		16,880		14,214
Unvested participating shares		437		491		1,451		1,317
	$	28,722	$	27,459	$	86,124	$	72,457
Weighted average number of shares for Basic:
Common Stock		14,993		14,905		14,960		14,872
Class B Common Stock		4,675		4,644		4,656		4,642
Unvested participating shares		331		387		366		393
		19,999		19,936		19,982		19,907
Earnings per share for Basic:
Common Stock	$	1.51	$	1.45	$	4.53	$	3.83
Class B Common Stock	$	1.21	$	1.16	$	3.63	$	3.06

The Company is required to calculate diluted EPS for Common Stock using the more dilutive of the following two methods:

• The treasury stock method; or

• The two-class method assuming a participating security is not exercised or converted.

For the thirteen and thirty-nine weeks ended May 25, 2013, the Company’s diluted EPS assumes the conversion of all vested Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares. The following table sets forth the computation of diluted earnings per share of Common Stock for the thirteen and thirty-nine weeks ended May 25, 2013 as follows (in thousands, except per share data):

	Thirteen weeks ended May 25, 2013							Thirty-nine weeks ended May 25, 2013
	Earnings to Common Shareholders			Common Shares		EPS		Earnings to Common Shareholders			Common Shares		EPS
As reported - Basic	$	22,638			14,993	$	1.51	$	67,793			14,960	$	4.53
Add: effect of dilutive potential common shares
Share-based awards		—			152				—			135
Class B Common Stock		5,647			4,675				16,880			4,656
Add: Undistributed earnings allocated to unvested participating shares		426			—				1,415			—
Less: Undistributed earnings reallocated to unvested participating shares		(404	)		—				(1,341	)		—
Diluted EPS – Common Stock	$	28,307			19,820	$	1.43	$	84,747			19,751	$	4.29

Share-based awards that would result in the issuance of 27,347 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended May 25, 2013 because they were anti-dilutive. There were no share-based awards that were excluded from the calculation of diluted earnings per share for the thirty-nine weeks ended May 25, 2013 because they were anti-dilutive.  

For the thirteen and thirty-nine weeks ended May 26, 2012, the Company’s diluted EPS assumes the conversion of all vested Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares. The following table sets forth the computation of diluted earnings per share of Common Stock for the thirteen and thirty-nine weeks ended May 26, 2012 as follows (in thousands, except per share data):

	Thirteen weeks ended May 26, 2012							Thirty-nine weeks ended May 26, 2012
	Earnings to Common Shareholders			Common Shares		EPS		Earnings to Common Shareholders			Common Shares		EPS
As reported - Basic	$	21,587			14,905	$	1.45	$	56,926			14,872	$	3.83
Add: effect of dilutive potential common shares
Share-based awards		—			97				—			86
Class B Common Stock		5,381			4,644				14,214			4,642
Add: Undistributed earnings allocated to unvested participating shares		478			—				1,279			—
Less: Undistributed earnings reallocated to unvested participating shares		(453	)		—				(1,214	)		—
Diluted EPS – Common Stock	$	26,993			19,646	$	1.37	$	71,205			19,600	$	3.63

Share-based awards that would result in the issuance of 18,056 and 19,786 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen and thirty-nine weeks ended May 26, 2012, respectively, because they were anti-dilutive.