DSW 2014 Annual Report Download - page 57

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Table of Contents
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
Earnings per Share- Basic earnings per share is based on net income and a simple weighted average of common shares outstanding. Diluted earnings per
share reflects the potential dilution of common shares adjusted for outstanding stock options, restricted stock units ("RSUs"), performance-based restricted
stock units ("PSUs") and warrants (through exercise date) calculated using the treasury stock method.
The following is a reconciliation of the number of shares used in the calculation of diluted earnings per share computations for the periods presented:
Fiscal
2014
2013
2012
(in thousands)
Weighted average shares outstanding 89,499
90,472
88,846
Assumed exercise of dilutive stock options 910
1,202
1,504
Assumed exercise of dilutive RSUs and PSUs 203
227
256
Number of shares for computation of diluted earnings per share 90,612
91,901
90,606
Options, RSUs and PSUs- For fiscal 2014, 2013 and 2012, the amount of potential shares that were not included in the computation of dilutive earnings per
share because the effect would be anti-dilutive was approximately 1.1 million, 0.8 million and 0.6 million, respectively.
Warrants- For fiscal 2012, the assumed exercise of warrants for 0.2 million common shares were not included in the calculation of shares as the effect would
have been anti-dilutive. There were no warrants outstanding as of January 31, 2015 and February 1, 2014.
Shareholders' Equity- On November 21, 2014, DSW Inc. announced that its Board of Directors had authorized the Company to increase the $100 million
share repurchase program by an additional $50 million of DSW Common Shares. The share repurchase program may be suspended, modified or discontinued
at any time, and the Company has no obligation to repurchase any amount of its common shares under the program. During fiscal 2014, the Company
repurchased 3.0 million Class A Common Shares at a cost of $85.3 million. Life to date, the Company has repurchased a total of 3.0 million Class A Common
Shares at a cost of $86.9 million.
 
The DSW Inc. 2005 Equity Incentive Plan (“the 2005 Plan”) provides for the issuance of equity awards to purchase up to 11.2 million DSW Common Shares.
The 2005 Plan covers stock options, RSUs, PSUs and director stock units. Eligible recipients include key employees of DSW Inc. and affiliates, as well as
directors. Options generally vest 20% per year on a cumulative basis. Options granted under the 2005 Plan generally remain exercisable for a period of ten
years from the date of grant. In June 2014, shareholders approved the 2014 Equity Incentive Plan ("the 2014 Plan") which provides for the issuance of an
additional 8.5 million shares of DSW Class A Common Shares. The Company will begin issuing shares under the 2014 Plan after the 2005 Plan expires in
fiscal 2015.
Stock-Based Compensation Expense- The following table summarizes stock-based compensation expense for the periods presented:
F- 17
Source: DSW Inc., 10-K, March 26, 2015 Powered by Morningstar® Document Research℠
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