Family Dollar 2003 Annual Report Download - page 35

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31
9. Common Stock:
Basic net income per common share is computed by dividing net income by the weighted average number of shares outstanding during each period. Diluted net income per common
share gives effect to all securities representing potential common shares that were dilutive and outstanding during the period. In the calculation of diluted net income per com-
mon share, the denominator includes the number of additional common shares that would have been outstanding if the Company’s outstanding stock options had been exercised.
On October 9, 2002, the Board of Directors authorized the purchase of up to 5 million shares of its outstanding Common Stock from time to time as market conditions warrant.
The Company purchased in the open market 2.2 million shares at a cost of $65.9 million.
The following table sets forth the computation of basic and diluted net income per common share (In thousands, except per share amounts):
August 30, August 31, September 1,
2003 2002 2001
Basic net income per share:
Net income $247,475 $216,929 $189,505
Weighted average number of shares outstanding 172,346 172,800 171,568
Net income per common share—basic $1.44 $1.26 $1.10
Diluted net income per share:
Net income $247,475 $216,929 $189,505
Weighted average number of shares outstanding 172,346 172,800 171,568
Effect of dilutive securities—stock options 1,008 1,249 1,206
Average shares—diluted 173,354 174,049 172,774
Net income per common share—diluted $1.43 $1.25 $1.10