Barnes and Noble 2013 Annual Report Download - page 50

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8. NET EARNINGS (LOSS) PER SHARE
In accordance with ASC 260-10-45, Share-Based Payment
Arrangements and Participating Securities and the Two-
Class Method, the Company’s unvested restricted shares,
unvested restricted stock units and shares issuable under
the Company’s deferred compensation plan are considered
participating securities. During periods of net income,
the calculation of earnings per share for common stock
are reclassified to exclude the income attributable to the
unvested restricted shares, unvested restricted stock units
and shares issuable under the Company’s deferred com-
pensation plan from the numerator and exclude the dilutive
impact of those shares from the denominator. Diluted
earnings per share for fiscal year 2013 was calculated using
the two-class method for stock options, restricted stock
and restricted stock units and the if-converted method for
the preferred stock.
During periods of net loss, no effect is given to the partici-
pating securities because they do not share in the losses
of the Company. Due to the net loss during fiscal 2013 and
2012, participating securities in the amounts of 2,859,084
and 3,462,508, respectively, were excluded in the calcula-
tion of loss per share using the two-class method because
the effect would be antidilutive. The Company’s outstand-
ing stock options and accretion/payments of dividends on
preferred shares were also excluded from the calculation
of loss per share using the two-class method because the
effect would be antidilutive.
The following is a reconciliation of the Company’s basic and diluted earnings per share calculation:
Fiscal 2013 Fiscal 2012 Fiscal 2011
Numerator for basic loss per share:
Loss attributable to Barnes & Noble, Inc. $(157,806) (64,840) (68,873)
Preferred stock dividends (15,767) (11,044) —
Accretion of dividends on preferred stock (2,266) (894) —
Net loss available to common shareholders $(175,839) (76,778) (68,873)
Numerator for diluted loss per share:
Net loss available to common shareholders $(175,839) (76,778) (68,873)
Denominator for basic and diluted loss per share:
Basic weighted average common shares 58,247 57,337 56,588
Basic loss per common share
Net loss attributable to Barnes & Noble, Inc. available
for common shareholders $ (3.02) (1.34) (1.22)
Diluted loss per common share
Net loss attributable to Barnes & Noble, Inc. available
for common shareholders $ (3.02) (1.34) (1.22)
48 Barnes & Noble, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued