Family Dollar 2013 Annual Report Download - page 70

15. Earnings per Share:
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. Certain stock options
and performance share rights were excluded from the calculation of diluted net income per common share
because their effects were antidilutive (0.5 million, 0.3 million and 0.3 million shares for fiscal 2013, fiscal 2012
and fiscal 2011, respectively). In the calculation of diluted net income per common share, the denominator
includes the number of additional common shares that would have been outstanding if the Company’s
outstanding dilutive stock options and performance share rights had been exercised, as determined pursuant to
the treasury stock method.
The following table sets forth the computation of basic and diluted net income per common share:
Years Ended
(in thousands, except per share amounts)
August 31,
2013
August 25,
2012
August 27,
2011
Basic Net Income Per Share:
Net income ..................................................... $443,575 $422,240 $388,445
Weighted average number of shares outstanding ........................ 115,252 117,097 123,360
Net income per common share—basic ............................... $ 3.85 $ 3.61 $ 3.15
Diluted Net Income Per Share:
Net income ..................................................... $443,575 $422,240 $388,445
Weighted average number of shares outstanding ........................ 115,252 117,097 123,360
Effect of dilutive securities—stock options ............................ 300 525 677
Effect of dilutive securities—performance share rights .................. 253 436 449
Weighted average shares—diluted ................................... 115,805 118,058 124,486
Net income per common share—diluted .............................. $ 3.83 $ 3.58 $ 3.12
16. Segment Information:
The Company operates a chain of more than 7,900 general merchandise retail discount stores in 46 states, serving
the basic needs of value-conscious customers. The stores are supported by eleven distribution centers and one
Store Support Center. All stores operate under the Family Dollar name and are substantially the same in terms of
size, merchandise, customers, distribution and operations. The Company has no franchised locations or other
lines of business.
All of the Company’s operations are located in the United States with the exception of certain sourcing entities
located in Asia and Europe. The foreign operations solely support domestic operations and are not material. The
Company manages the business on the basis of one operating segment and therefore, has only one reportable
segment. The following table presents net sales by classes of similar products.
Years Ended
(in thousands)
August 31,
2013
August 25,
2012
August 27,
2011
Classes of similar products:
Consumables ............................... $ 7,523,289 $6,436,719 $5,686,576
Home Products ............................. 1,053,670 1,067,541 1,084,480
Apparel and Accessories ...................... 785,384 822,839 854,602
Seasonal and Electronics ...................... 1,029,114 1,003,906 922,177
Net Sales .............................. $10,391,457 $9,331,005 $8,547,835
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