Saks Fifth Avenue 2010 Annual Report Download - page 63

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SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
EARNINGS PER SHARE
Basic earnings per share (“EPS”) have been computed based on the weighted average number of common
shares outstanding.
2010 2009 2008
Net
Income Shares
Per
Share
Amount
Net
Loss Shares
Per
Share
Amount
Net
Loss Shares
Per
Share
Amount
Basic EPS ............... $47,846 154,325 $0.31 $(57,919)143,194 $(0.40) $(158,804)138,384 $(1.15)
Effect of dilutive potential
common shares ......... — 4,088 (.01) — — — — — —
Diluted EPS .............. $47,846 158,413 $0.30 $(57,919)143,194 $(0.40) $(158,804)138,384 $(1.15)
The following table presents additional potentially dilutive common shares excluded from diluted earnings
(loss) per share because the effect of including these potentially dilutive common shares would have been anti-
dilutive:
2010 2009 2008
Stock Options and Employee Stock Purchase Plan Shares ...................... — 101 346
Unvested Restricted Stock Awards and Performance Shares .................... — 3,944 1,889
Total ............................................................ — 4,045 2,235
Securities excluded from the diluted earnings (loss) per share calculation because the
exercise prices was greater than the average market price
Stock Options (1) .................................................. 1,344 1,659 1,811
Securities excluded from the diluted earnings (loss) per share calculation because the
performance criteria were not met:
Performance Shares ................................................ 50 75 845
Contingently convertible securities excluded from the computation of diluted
earnings (loss) per share
7.5% Convertible Notes ............................................. 21,670 21,670 n/a
2.0% Convertible Notes ............................................. 19,219 19,219 19,219
40,889 40,889 19,219
(1) These options represent the number outstanding at the end of the respective year. At the point that the
exercise price is less than the average market price, these options have the potential to be dilutive and
application of the treasury method would reduce this amount.
For the year ended January 29, 2011, there were 40,889 potentially dilutive shares under the Company’s
7.5% and 2.0% convertible notes that were not included in the computation of diluted EPS because inclusion of
the potentially dilutive shares and related interest expense would be anti-dilutive.
For the years ended January 30, 2010 and January 31, 2009, the Company generated a net loss from
continuing operations, and therefore the inclusion of potential common shares would have an anti-dilutive effect
on the Company’s calculation of the diluted loss per share. Accordingly, the Company’s diluted loss per share
equals basic loss per share for those periods.
F-13