Note 6 - Net Income Per Share

6 Months Ended

Mar. 01, 2014

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				Twenty-six weeks ended
	March 1, 2014		February 23, 2013		March 1, 2014		February 23, 2013
Net income	$	25,647	$	26,642	$	60,109	$	57,402
Allocation of net income for Basic:
Common Stock	$	20,267	$	20,963	$	47,479	$	45,155
Class B Common Stock		5,041		5,209		11,836		11,233
Unvested participating shares		339		470		794		1,014
	$	25,647	$	26,642	$	60,109	$	57,402
Weighted average number of shares for Basic:
Common Stock		15,077		14,962		15,053		14,943
Class B Common Stock		4,687		4,647		4,690		4,647
Unvested participating shares		288		383		288		383
		20,052		19,992		20,031		19,973
Earnings per share for Basic:
Common Stock	$	1.34	$	1.40	$	3.15	$	3.02
Class B Common Stock	$	1.08	$	1.12	$	2.52	$	2.42

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 twenty-six weeks ended March 1, 2014, 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 twenty-six weeks ended March 1, 2014 as follows (in thousands, except per share data):

	Thirteen weeks ended March 1, 2014							Twenty-six weeks ended March 1, 2014
	Earnings to Common Shareholders			Common Shares		EPS		Earnings to Common Shareholders			Common Shares		EPS
As reported - Basic	$	20,267			15,077	$	1.34	$	47,479			15,053	$	3.15
Add: effect of dilutive potential common shares
Share-based awards		—			160				—			154
Class B Common Stock		5,041			4,687				11,836			4,690
Add: Undistributed earnings allocated to unvested participating shares		329			—				776			—
Less: Undistributed earnings reallocated to unvested participating shares		(311	)		—				(734	)		—
Diluted EPS – Common Stock	$	25,326			19,924	$	1.27	$	59,357			19,897	$	2.98

Share-based awards that would result in the issuance of 3,836 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended March 1, 2014 because they were anti-dilutive. Share-based awards that would result in the issuance of 770 shares of Common Stock were excluded from the calculation of diluted earnings per share for the twenty-six weeks ended March 1, 2014 because they were anti-dilutive.

For the thirteen and twenty-six weeks ended February 23, 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 twenty-six weeks ended February 23, 2013 as follows (in thousands, except per share data):

	Thirteen weeks ended February 23, 2013							Twenty-six weeks ended February 23, 2013
	Earnings to Common Shareholders			Common Shares		EPS		Earnings to Common Shareholders			Common Shares		EPS
As reported - Basic	$	20,963			14,962	$	1.40	$	45,155			14,943	$	3.02
Add: effect of dilutive potential common shares
Share-based awards		—			138				—			124
Class B Common Stock		5,209			4,647				11,233			4,647
Add: Undistributed earnings allocated to unvested participating shares		457			—				989			—
Less: Undistributed earnings reallocated to unvested participating shares		(433	)		—				(937	)		—
Diluted EPS – Common Stock	$	26,196			19,747	$	1.33	$	56,440			19,714	$	2.86

Share-based awards that would result in the issuance of 13,983 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended February 23, 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 twenty-six weeks ended February 23, 2013 because they were anti-dilutive.