Note 7 - Net Income Per Share

9 Months Ended

May. 30, 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				Thirty-nine weeks ended
	May 30,		May 31,		May 30,		May 31,
	2015		2014		2015		2014
Net income	$	32,499	$	30,944	$	95,358	$	91,053
Allocation of net income for Basic:
Common Stock	$	25,817	$	24,493	$	75,650	$	71,971
Class B Common Stock		6,483		6,127		18,954		17,962
Unvested participating shares		199		324		754		1,120
	$	32,499	$	30,944	$	95,358	$	91,053
Weighted average number of shares for Basic:
Common Stock		15,207		15,102		15,173		15,069
Class B Common Stock		4,773		4,722		4,752		4,701
Unvested participating shares		134		229		173		268
		20,114		20,053		20,098		20,038
Earnings per share for Basic:
Common Stock	$	1.70	$	1.62	$	4.99	$	4.78
Class B Common Stock	$	1.36	$	1.30	$	3.99	$	3.82

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 30, 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 thirty-nine weeks ended May 30, 2015 as follows (in thousands, except per share data):

	Thirteen weeks							Thirty-nine weeks
	ended May 30, 2015							ended May 30, 2015
	Earnings							Earnings
	to Common			Common				to Common			Common
	Shareholders			Shares		EPS		Shareholders			Shares		EPS
As reported - Basic	$	25,817			15,207	$	1.70	$	75,650			15,173	$	4.99
Add: effect of dilutive potential common shares
Share-based awards		—			138				—			132
Class B Common Stock		6,483			4,773				18,954			4,752
Add: Undistributed earnings allocated to unvested participating shares		194			—				737			—
Less: Undistributed earnings reallocated tounvested participating shares		(184	)		—				(697	)		—
Diluted EPS – Common Stock	$	32,310			20,118	$	1.61	$	94,644			20,057	$	4.72

Share-based awards that would result in the issuance of 25,726 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended May 30, 2015 because they were anti-dilutive. Share-based awards that would result in the issuance of 10,429 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirty-nine weeks ended May 30, 2015 because they were anti-dilutive.

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

	Thirteen weeks							Thirty-nine weeks
	ended May 31, 2014							ended May 31, 2014
	Earnings							Earnings
	to Common			Common				to Common			Common
	Shareholders			Shares		EPS		Shareholders			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.