Earnings Per Share

6 Months Ended

Jul. 30, 2011

Earnings Per Share

Earnings Per Share

Note 5. Earnings Per Share

In June 2008, accounting guidance was issued related to share-based awards that qualify as participating securities.  In accordance with this guidance, unvested share-based payment awards that include non-forfeitable rights to dividends, whether paid or unpaid, are considered participating securities.  As a result, such awards are required to be included in the calculation of basic earnings per common share pursuant to the "two-class" method.  For us, participating securities are generally comprised of unvested restricted stock awards. 

Basic EPS is determined using the two-class method and is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period.  Diluted EPS reflects the dilutive effect of potential common shares from securities such as stock options.

The following table sets forth the computation of basic and diluted EPS shown on the face of the accompanying consolidated statements of income:

	Twenty-Six Weeks Ended		Thirteen Weeks Ended
	July 30, 2011	July 31, 2010	July 30, 2011	July 31, 2010
Numerator
Net income	$   89,309	$   65,856	$   43,391	$   30,455
Net income allocated to participating securities	(1,110)	(440)	(573)	(216)
Net income available to common shareholders	$   88,199	$   65,416	$    42,818	$    30,239
Denominator
Weighted average common shares outstanding – basic	173,081,952	177,417,471	171,282,434	177,499,286
Dilutive effect of stock options outstanding	1,216,112	1,389,066	1,212,573	1,275,130
Weighted average common and common equivalent shares outstanding – diluted	174,298,064	178,806,537	172,495,007	178,774,416
Net income per common share:
Basic	$         0.51	$         0.37	$         0.25	$         0.17
Diluted	$         0.51	$         0.37	$         0.25	$         0.17

For the thirteen weeks ended July 30, 2011 and July 31, 2010, 3,980,832 and 3,445,097 potential shares of common stock, respectively, were excluded from the computation of diluted EPS relating to stock option awards because the effect of including these potential shares would have been anti-dilutive.

           For the twenty-six weeks ended July 30, 2011 and July 31, 2010, 3,964,669 and 3,306,313 potential shares of common stock, respectively, were excluded from the computation of diluted EPS relating to stock option awards because the effect of including these potential shares would have been anti-dilutive.