Harris Teeter 2007 Annual Report Download - page 59

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55
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
COMPUTATION OF EARNINGS PER SHARE (EPS)
The following table details the computation of EPS for fiscal 2007, 2006 and 2005 (in thousands except
per share data):
2007 2006 2005
Basic EPS:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 80,688 $ 72,336 $ 68,598
Weighted average common shares outstanding . . . . . . . . . . . . . 47,605 47,233 47,206
Basic EPS ......................................... $ 1.69 $ 1.53 $ 1.45
Diluted EPS:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 80,688 $ 72,336 $ 68,598
Weighted average common shares outstanding . . . . . . . . . . . . . 47,605 47,233 47,206
Potential common share equivalents . . . . . . . . . . . . . . . . . . . . . 534 454 524
Weighted average common shares outstanding . . . . . . . . . . . . . 48,139 47,687 47,730
Diluted EPS ........................................ $ 1.68 $ 1.52 $ 1.44
Calculation of potential common share equivalents:
Options to purchase potential common shares . . . . . . . . . . . . . 920 1,354 1,788
Weighted shares outstanding – stock awards . . . . . . . . . . . . . . 345 204 65
Potential common shares assumed purchased . . . . . . . . . . . . . . (731 ) (1,104 ) (1,329 )
Potential common share equivalents . . . . . . . . . . . . . . . . . . . . . 534 454 524
Calculation of potential common shares assumed purchased with potential proceeds:
Potential proceeds from exercise of options to
purchase common shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,032 $ 22,557 $
29,457
Weighted unamortized expense – stock awards . . . . . . . . . . . . . . 5,650 2,937 1,177
$ 21,682 $ 25,494 $ 30,634
Common stock price used under the treasury
stock method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 29.67 $ 23.09 $ 23.05
Potential common shares assumed purchased . . . . . . . . . . . . . . . . 731 1,104 1,329
Restricted shares that are based on performance are excluded from the calculation of potential common
share equivalents until the performance criteria are met. Accordingly, the impact of 114,393, 99,349 and 64,448
performance shares for the fiscal years 2007, 2006 and 2005, respectively, were excluded from the computation
of diluted shares. All outstanding stock options were included in the calculation of potential common share
equivalents for the fiscal years 2007, 2006 and 2005.
COMMITMENTS AND CONTINGENCIES
The Company is involved in various lawsuits and environmental and patent matters arising in the normal
course of business. Management believes that such matters will not have a material effect on the financial
condition or results of operations of the Company.
See “Leases” above in this Item 8 for additional commitments and contingencies.