Note 9 - Earnings Per Share

6 Months Ended

Jun. 29, 2013

Earnings Per Share [Text Block]

Earnings Per Share [Text Block]

9. Earnings Per Share

The company computes earnings per share using the two-class method. The two-class method includes an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period. The company’s reported net earnings is reduced by the amount allocated to participating securities to arrive at the earnings allocated to common stock shareholders for purposes of calculating earnings per share.

The dilutive effect of participating securities is calculated using the more dilutive of the treasury stock or the two-class method. The company has determined the two-class method to be the more dilutive. As such, the earnings allocated to common stock shareholders in the basic earnings per share calculation is adjusted for the reallocation of undistributed earnings to participating securities to arrive at the earnings allocated to common stock shareholders for calculating the diluted earnings per share.

The following table sets forth the computation of basic and diluted earnings per share under the two-class method.

	For the Three Months Ended						For the Six Months Ended
(in thousands except per share amounts)	June 29, 2013			June 30, 2012			June 29, 2013			June 30, 2012
Net income as reported	$	26,648		$	22,963		$	41,442		$	40,526
Less: Distributed earnings available to participating securities		(10	)		(6	)		(18	)		(12	)
Less: Undistributed earnings available to participating securities		-			(30	)		(16	)		(78	)
Numerator for basic earnings per share —
Undistributed and distributed earnings available to common shareholders	$	26,638		$	22,927		$	41,408		$	40,436
Add: Undistributed earnings allocated to participating securities		-			30			15			78
Less: Undistributed earnings reallocated to participating securities		-			(30	)		(15	)		(77	)
Numerator for diluted earnings per share —
Undistributed and distributed earnings available to common shareholders	$	26,638		$	22,927		$	41,408		$	40,437
Denominator for basic earnings per share —
Weighted-average shares		22,296			21,778			22,196			21,693
Effect of dilutive securities:
Common stock equivalents		203			296			234			310
Denominator for diluted earnings per share —
Adjusted for weighted-average shares & assumed conversions		22,499			22,074			22,431			22,004
Basic earnings per share	$	1.19		$	1.05		$	1.87		$	1.86
Diluted earnings per share	$	1.18		$	1.04		$	1.85		$	1.84