Note 7 - Net Income Per Share

6 Months Ended

Feb. 28, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

7.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
	February 28,		March 1,		February 28,		March 1,
	2015		2014		2015		2014
Net income	$	25,446	$	25,647	$	62,859	$	60,109
Allocation of net income for Basic:
Common Stock	$	20,182	$	20,267	$	49,834	$	47,479
Class B Common Stock		5,041		5,041		12,472		11,836
Unvested participating shares		223		339		553		794
	$	25,446	$	25,647	$	62,859	$	60,109
Weighted average number of shares for Basic:
Common Stock		15,185		15,077		15,156		15,053
Class B Common Stock		4,741		4,687		4,741		4,690
Unvested participating shares		192		288		192		288
		20,118		20,052		20,089		20,031
Earnings per share for Basic:
Common Stock	$	1.33	$	1.34	$	3.29	$	3.15
Class B Common Stock	$	1.06	$	1.08	$	2.63	$	2.52

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 February 28, 2015, 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 as it was the more dilutive of the two methods. The following table sets forth the computation of diluted earnings per share of Common Stock for the thirteen and twenty-six weeks ended February 28, 2015 as follows (in thousands, except per share data):

	Thirteen weeks							Twenty-six weeks
	ended February 28, 2015							ended February 28, 2015
	Earnings							Earnings
	to Common			Common				to Common			Common
	Shareholders			Shares		EPS		Shareholders			Shares		EPS
As reported - Basic	$	20,182			15,185	$	1.33	$	49,834			15,156	$	3.29
Add: effect of dilutive potential common shares
Share-based awards		—			139				—			131
Class B Common Stock		5,041			4,741				12,472			4,741
Add: Undistributed earnings allocated to unvested participating shares		217			—				540			—
Less: Undistributed earnings reallocated to unvested participating shares		(205	)		—				(511	)		—
Diluted EPS – Common Stock	$	25,235			20,065	$	1.26	$	62,335			20,028	$	3.11

Share-based awards that would result in the issuance of 25,901 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended February 28, 2015 because they were anti-dilutive. Share-based awards that would result in the issuance of 11,903 shares of Common Stock were excluded from the calculation of diluted earnings per share for the twenty-six weeks ended February 28, 2015 because they were anti-dilutive.

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 as it was the more dilutive of the two methods. 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							Twenty-six weeks
	ended March 1, 2014							ended March 1, 2014
	Earnings							Earnings
	to Common			Common				to Common			Common
	Shareholders			Shares		EPS		Shareholders			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.