Note 6 - Net Income Per Share

9 Months Ended

May 31, 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				Thirty-nine weeks ended
	May 31, 2014		May 25, 2013		May 31, 2014		May 25, 2013
Net income	$	30,944	$	28,722	$	91,053	$	86,124
Allocation of net income for Basic:
Common Stock	$	24,493	$	22,638	$	71,971	$	67,793
Class B Common Stock		6,127		5,647		17,962		16,880
Unvested participating shares		324		437		1,120		1,451
	$	30,944	$	28,722	$	91,053	$	86,124
Weighted average number of shares for Basic:
Common Stock		15,102		14,993		15,069		14,960
Class B Common Stock		4,722		4,675		4,701		4,656
Unvested participating shares		229		331		268		366
		20,053		19,999		20,038		19,982
Earnings per share for Basic:
Common Stock	$	1.62	$	1.51	$	4.78	$	4.53
Class B Common Stock	$	1.30	$	1.21	$	3.82	$	3.63

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 31, 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 thirty-nine weeks ended May 31, 2014 as follows (in thousands, except per share data):

	Thirteen weeks ended May 31, 2014							Thirty-nine weeks ended May 31, 2014
	Earnings to Common Shareholders			Common Shares		EPS		Earnings to Common Shareholders			Common Shares		EPS
As reported - Basic	$	24,493			15,102	$	1.62	$	71,971			15,069	$	4.78
Add: effect of dilutive potential common shares
Share-based awards		—			153				—			151
Class B Common Stock		6,127			4,722				17,962			4,701
Add: Undistributed earnings allocated to unvested participating shares		317			—				1,095			—
Less: Undistributed earnings reallocated to unvested participating shares		(300	)		—				(1,036	)		—
Diluted EPS – Common Stock	$	30,637			19,977	$	1.53	$	89,992			19,921	$	4.52

Share-based awards that would result in the issuance of 168 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended May 31, 2014 because they were anti-dilutive. Share-based awards that would result in the issuance of 193 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirty-nine weeks ended May 31, 2014 because they were anti-dilutive.

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.