Hibbett Sports 2011 Annual Report Download - page 48

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Director Deferred Compensation
Under the Deferred Plan, non-employee directors can elect to defer all or a portion of their Board and Board Committee
fees into cash, stock options or deferred stock units. Those fees deferred into stock options are subject to the same provisions as
provided for in the DEP and are expensed and accounted for accordingly. Director fees deferred into our common stock are
calculated and expensed each calendar quarter by taking total fees earned during the calendar quarter and dividing by the closing
price on the last day of the calendar quarter, rounded to the nearest whole share. The total annual retainer, Board and Board
Committee fees for non-employee directors that are not deferred into stock options, but which includes amounts deferred into
stock units under the Deferred Plan, are expensed as incurred in all periods presented. No stock units were deferred under this
plan in Fiscal 2011 and Fiscal 2010. A total of 664 stock units were deferred under this plan in Fiscal 2009. Currently, one
director has elected to defer compensation into stock units, beginning in calendar 2011.
There was no compensation expense related to director deferred compensation included in store operating, selling and
administrative expenses during Fiscal 2011 and Fiscal 2010. The compensation expense included in store operating, selling and
administrative expenses and recognized during Fiscal 2009 was $10,000, before the recognized income tax benefit of $4,000.
NOTE 4. EARNINGS PER SHARE
The computation of basic earnings per share (EPS) is based on the number of weighted average common shares
outstanding during the period. The computation of diluted EPS is based on the weighted average number of shares outstanding
plus the incremental shares that would be outstanding assuming exercise of dilutive stock options and issuance of restricted stock.
The number of incremental shares is calculated by applying the treasury stock method. The following table sets forth the
computation of basic and diluted earnings per share:
January 29, January 30, January 31,
2011 2010 2009
Net income, in thousands 46,400$ 32,549$ 29,448$
Weighted average number of common shares
outstanding 28,425,781 28,629,023 28,547,435
Dilutive stock options 264,420 281,213 312,537
Dilutive restricted stock 343,024 178,510 93,724
Weighted average number of common shares
outstanding and dilutive shares 29,033,225 29,088,746 28,953,696
Basic earnings per share 1.63$ 1.14$ 1.03$
Diluted earnings per share 1.60$ 1.12$ 1.02$
Fiscal Year Ended
In calculating diluted earnings per share for the 52 weeks ended January 29, 2011, there were no options to purchase
shares of common stock outstanding as of the end of the period that were not included in the computations of diluted earnings per
share due to their anti-dilutive effect. In calculating diluted earnings per share for the 52 weeks ended January 30, 2010, options
to purchase 304,361 shares of common stock were outstanding as of the end of the period, but were not included in the
computations of diluted earnings per share due to their anti-dilutive effect. In calculating diluted earnings per share for the 52
weeks ended January 31, 2009, options to purchase 603,330 shares of common stock were outstanding as of the end of the
period, but were not included in the computations of diluted earnings per share due to their anti-dilutive effect.
We excluded 84,800 nonvested stock awards granted to certain employees from the computation of diluted weighted
average common shares and common share equivalents outstanding, because they are subject to performance-based annual
vesting conditions which had not been achieved by the end of the 52 weeks ended January 29, 2011. Assuming the performance
criteria had been achieved at target as of January 29, 2011, the incremental dilutive impact would have been 33,210 shares.
NOTE 5. DEBT
At January 29, 2011, we had two unsecured credit facilities, which are renewable in August and November 2011. The
August facility allows for borrowings up to $30.0 million at a rate equal to the higher of prime rate, the federal funds rate plus
0.5% or LIBOR. The November facility allows for borrowings up to $50.0 million at a rate of prime plus 2%. Under the
provisions of both facilities, we do not pay commitment fees and are not subject to covenant requirements. There were 10 days
during the 52 weeks ended January 29, 2011, where we incurred borrowings against our credit facilities for an average and
maximum borrowing of $5.3 million and $10.8 million, respectively, at an average interest rate of 2.28%. At January 29, 2011, a
total of $80.0 million was available to us from these facilities.