Dillard's 2014 Annual Report Download - page 64

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F-23
11. Earnings per Share
Basic earnings per share has been computed based upon the weighted average of Class A and Class B common shares
outstanding. Diluted earnings per share gives effect to outstanding stock options.
Earnings per common share has been computed as follows:
Fiscal 2014 Fiscal 2013 Fiscal 2012
(in thousands, except per share data) Basic Diluted Basic Diluted Basic Diluted
Net earnings available for per-
share calculation . . . . . . . . . . . $ 331,853 $ 331,853 $ 323,671 $ 323,671 $ 335,962 $ 335,962
Average shares of common
stock outstanding . . . . . . . . . . 42,603 42,603 45,586 45,586 48,125 48,125
Dilutive effect of stock-based
compensation . . . . . . . . . . . . . —————786
Total average equivalent shares 42,603 42,603 45,586 45,586 48,125 48,911
Per share of common stock:
Net income . . . . . . . . . . . . . . . $ 7.79 $ 7.79 $ 7.10 $ 7.10 $ 6.98 $ 6.87
No stock options were outstanding at January 31, 2015, February 1, 2014 and February 2, 2013.
12. Stock-Based Compensation
The Company has various stock option plans that provide for the granting of options to purchase shares of Class A
Common Stock to certain key employees of the Company. Exercise and vesting terms for options granted under the plans are
determined at each grant date. All options were granted at not less than fair market value at dates of grant. As of January 31,
2015, 7,547,451 shares were available for grant under the plans, and 7,547,451 shares of Class A Common Stock were reserved
for issuance under the stock option plans. There were no stock options granted during fiscal 2014, 2013 and 2012, and no stock
options were outstanding as of January 31, 2015 and February 1, 2014.
During fiscal 2012, the remaining 2,245,000 of stock options outstanding were exercised, and the Company retired
1,169,218 in shares tendered relative to these exercises. The Company uses the par value method of accounting for shares
repurchased under stock option plans. As a result of these share repurchases during fiscal 2012, the Company reduced common
stock and additional paid-in capital by an aggregate of $8.8 million and charged $93.9 million to retained earnings.
The intrinsic value of stock options exercised during fiscal 2012 was approximately $135.7 million.
13. Commitments and Contingencies
Rental expense consists of the following:
(in thousands of dollars) Fiscal 2014 Fiscal 2013 Fiscal 2012
Operating leases:
Buildings:
Minimum rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,699 $ 15,767 $ 17,356
Contingent rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,959 5,196 5,180
Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,319 5,870 12,302
$ 26,977 $ 26,833 $ 34,838
Contingent rentals on certain leases are based on a percentage of annual sales in excess of specified amounts. Other
contingent rentals are based entirely on a percentage of sales.