Income Per Share

12 Months Ended

Feb. 28, 2015

Income Per Share

Income Per Share

4. Income Per Share

        Basic income per share is computed by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income of the Company subject to anti-dilution limitations.

	Year Ended
	February 28, 2015 (52 Weeks)		March 1, 2014 (52 Weeks)			March 2, 2013 (52 Weeks)
Numerator for income per share:
Net income	$	2,109,173	$	249,414		$	118,105
Accretion of redeemable preferred stock		—		(77	)		(102	)
Cumulative preferred stock dividends		—		(8,318	)		(10,528	)
Conversion of Series G and H preferred stock		—		(25,603	)		—
Income attributable to common stockholders—basic	$	2,109,173	$	215,416		$	107,475
Add back—interest on convertible notes		5,456		5,456			—
Income attributable to common stockholders—diluted	$	2,114,629	$	220,872		$	107,475
Denominator:
Basic weighted average shares		971,102		922,199			889,562
Outstanding options and restricted shares, net		21,967		32,093			17,697
Convertible notes		24,792		24,800			—
Diluted weighted average shares		1,017,861		979,092			907,259
Basic income per share	$	2.17	$	0.23		$	0.12
Diluted income per share	$	2.08	$	0.23		$	0.12

        Due to their anti-dilutive effect, the following potential common shares have been excluded from the computation of diluted income per share as of February 28, 2015, March 1, 2014 and March 2, 2013:

	Year Ended
	February 28, 2015 (52 Weeks)		March 1, 2014 (52 Weeks)		March 2, 2013 (52 Weeks)
Stock options		2,777		4,044		10,455
Convertible preferred stock		—		—		33,109
Convertible notes		—		—		24,800
		2,777		4,044		68,364

        On September 30, 2013, the Company redeemed all of its outstanding Series G and Series H Convertible Preferred Stock (collectively the "Convertible Preferred Stock") at the Company's election. The Convertible Preferred Stock was convertible into common stock of the Company, at the holder's option, at a conversion rate of $5.50 per share or 34,621,117 shares of common stock on September 30, 2013. The Convertible Preferred Stock was redeemable by the Company for cash at 105% of the Cumulative Preferred Stock's $100.00 per share liquidation preference or $199,937. In an individually negotiated exchange transaction, the Company exchanged 40,000,000 shares of its common stock, par value of $1.00 per share, with a market value of $190,400 at the $4.76 per share closing price on September 30, 2013, for all of the outstanding Convertible Preferred Stock. Accordingly, income attributable to common stock holders was reduced by $25,603, or $0.03 per diluted share, the value of the additional 5,378,883 shares of common stock issued upon conversion at the $4.76 per share closing price.