DSW 2011 Annual Report Download - page 72

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Table of Contents DSW INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following is a reconciliation of the net income used in the calculation of diluted earnings (loss) per share computations for the periods
presented for net income (loss), net of noncontrolling interests:
The following is a reconciliation of the number of shares used in the calculation of diluted earnings (loss) per share computations for the periods
presented:
For fiscal 2011 , the assumed exercise of 1.2 million
DSW common shares that would convert upon settlement of the PIES were included in the
calculation of shares as the effect would have been dilutive considering the gain in fair value of PIES. The total amount of common shares that
would convert upon redemption of the PIES based on the average market price of DSW shares was 3.8 million
, but the assumed conversion is
prorated as the PIES are only included in the calculation of earnings per share after the Merger. After the settlement of the PIES, the issued shares
are included in basic weighted average shares outstanding.
For fiscal 2011 and 2010 , the assumed exercise of warrants for 0.6 million DSW common shares and 0.8 million
DSW common shares,
respectively, were not included in the calculation of shares as the effect would have been anti-
dilutive. There were 0.3 million securities
outstanding for fiscal 2009
, 0.2 million of which were for the assumed exercise of warrants, that had an equity unit exercise price less than the
average market price of the common shares for the period, but were not included in the computation of diluted loss per share since the effect
would be anti-dilutive due to the annual net loss.
F-28
Fiscal years ended
January 28, 2012
January 29, 2011
January 30, 2010
(in thousands)
Net income (loss) from continuing operations, net of noncontrolling interests for basic
earnings (loss) per share
$
179,643
$
11,166
$
(85,971
)
Less: (gain) in fair value of PIES, net of tax effected interest expense, amortization of
debt discount and amortization of deferred financing fees
(6,019
)
Net income (loss) from continuing operations, net of noncontrolling interests for
diluted earnings (loss) per share
$
173,624
$
11,166
$
(85,971
)
Fiscal years ended
January 28, 2012
January 29, 2011
January 30, 2010
(in thousands)
Net income (loss), net of noncontrolling interests for basic earnings (loss) per share
$
174,788
$
17,794
$
(26,091
)
Less: (gain) in fair value of PIES, net of tax effected interest expense, amortization of
debt discount and amortization of deferred financing fees
(6,019
)
Net income (loss), net of noncontrolling interests for diluted earnings (loss) per share
$
168,769
$
17,794
$
(26,091
)
Fiscal years ended
January 28, 2012
January 29, 2011
January 30, 2010
(in thousands)
Weighted average shares outstanding
35,220
21,438
21,261
Assumed exercise of dilutive RVI SARs
4
9
Assumed exercise of dilutive DSW stock options
555
Assumed exercise of dilutive DSW RSUs
110
Assumed exercise of dilutive RVI stock options
61
129
Assumed exercise of dilutive PIES
1,188
Number of shares for computation of diluted earnings per share
37,138
21,576
21,261