Dillard's 2013 Annual Report Download - page 69

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F-23
11. Earnings per Share
Basic earnings per share has been computed based upon the weighted average of Class A and Class B common shares
outstanding. Diluted earnings per share gives effect to outstanding stock options.
Earnings per common share has been computed as follows:
Fiscal 2013 Fiscal 2012 Fiscal 2011
(in thousands, except per share data) Basic Diluted Basic Diluted Basic Diluted
Net earnings available for per-
share calculation. . . . . . . . . . . . $ 323,671 $ 323,671 $ 335,962 $ 335,962 $ 463,909 $ 463,909
Average shares of common
stock outstanding . . . . . . . . . . . 45,586 45,586 48,125 48,125 53,515 53,515
Dilutive effect of stock-based
compensation . . . . . . . . . . . . . . — — — 786 — 933
Total average equivalent shares 45,586 45,586 48,125 48,911 53,515 54,448
Per share of common stock:
Net income . . . . . . . . . . . . . . . . $ 7.10 $ 7.10 $ 6.98 $ 6.87 $ 8.67 $ 8.52
No stock options were outstanding at February 1, 2014 and February 2, 2013, and 2,245,000 of stock options were
outstanding at January 28, 2012.
12. Stock-Based Compensation
The Company has various stock option plans that provide for the granting of options to purchase shares of Class A
Common Stock to certain key employees of the Company. Exercise and vesting terms for options granted under the plans are
determined at each grant date. All options were granted at not less than fair market value at dates of grant. As of February 1,
2014, 7,547,451 shares were available for grant under the plans, and 7,547,451 shares of Class A Common Stock were reserved
for issuance under the stock option plans. There were no stock options granted during fiscal 2013, 2012 and 2011, and no stock
options were outstanding as of February 1, 2014 and February 2, 2013.
During fiscal 2012, the remaining 2,245,000 of stock options outstanding were exercised, and the Company retired
1,169,218 in shares tendered relative to these exercises. The Company uses the par value method of accounting for shares
repurchased under stock option plans. As a result of these share repurchases during fiscal 2012, the Company reduced common
stock and additional paid-in capital by an aggregate of $8.8 million and charged $93.9 million to retained earnings.
The intrinsic value of stock options exercised during fiscal 2012 and 2011 was approximately $135.7 million and $28.2
million, respectively.
13. Commitments and Contingencies
Rental expense consists of the following:
(in thousands of dollars) Fiscal 2013 Fiscal 2012 Fiscal 2011
Operating leases:
Buildings:
Minimum rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,767 $ 17,356 $ 19,509
Contingent rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,196 5,180 4,491
Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,870 12,302 24,110
$ 26,833 $ 34,838 $ 48,110
Contingent rentals on certain leases are based on a percentage of annual sales in excess of specified amounts. Other
contingent rentals are based entirely on a percentage of sales.