Sonic 2009 Annual Report Download - page 36

Notes to Consolidated Financial Statements
August 31, 2009, 2008 and 2007 (In thousands, except per share data)
period beginning on or after December 15, 2008, which for us will be business combinations with an acquisition date beginning on or
after September 1, 2009. The adoption of SFAS 141(R) is not anticipated to have a material impact on our financial statements.
In December 2007, the FASB issued FASB Statement No. 160, “Noncontrolling Interests in Consolidated Financial Statements, an
amendment to ARB No. 51” (“SFAS 160”). This standard establishes accounting and reporting standards for the noncontrolling interest
in a subsidiary and for the deconsolidation of a subsidiary and clarifies that a noncontrolling interest in a subsidiary is an ownership
interest that should be reported as equity in the consolidated financial statements. SFAS 160 establishes a single method of accounting
for changes in a parent’s ownership interest in a subsidiary that do not result in deconsolidation and requires a parent to recognize a
gain or loss in net income when a subsidiary is deconsolidated. SFAS 160 also requires consolidated net income to be reported at amounts
that include the amounts attributable to both the parent and the noncontrolling interest and to disclose, on the face of the consolidated
statement of income, the amounts of consolidated net income attributable to the parent and to the noncontrolling interest. SFAS 160 is
effective for fiscal years beginning on or after December 15, 2008, which for us will be our fiscal year beginning September 1, 2009. The
adoption of SFAS 160 is not anticipated to have a material impact on our financial statements.
In May 2009, the FASB issued FASB Statement No. 165, “Subsequent Events” (“SFAS 165”), which establishes general standards
of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or
are available to be issued. SFAS 165 also requires the disclosure of the date through which an entity has evaluated subsequent
events and the basis for that date (i.e., whether the evaluation date represents the date the financial statements were issued or
were available to be issued). This statement is effective for interim or annual reporting periods ending after June 15, 2009. During
the year ended August 31, 2009, the company adopted SFAS 165. The company evaluated subsequent events through the date and time
the financial statements were issued on October 29, 2009.The adoption of SFAS 165 did not have a significant impact on our consolidated
financial statements.
In June 2009, the FASB issued FASB Statement No. 168, “The FASB Accounting Standards Codification™ and the Hierarchy of
Generally Accepted Accounting Principles” (“SFAS 168”). SFAS 168 confirmed that The FASB Accounting Standards Codification (the
“Codification”) will become the single official source of authoritative U.S. generally accepted accounting principles ("GAAP") (other
than guidance issued by the SEC), superseding existing FASB, American Institute of Certified Public Accountants, Emerging Issues Task
Force, and related literature. After that date, only one level of authoritative GAAP will exist, and all other literature will be considered
non-authoritative.The Codification does not change GAAP; instead, it introduces a new structure that is organized in an easily accessible,
user-friendly online research system.The Codification, which changes the referencing of financial standards, becomes effective for interim
and annual periods ending on or after September 15, 2009.The company will apply the Codification beginning in the first quarter of fiscal
2010. The adoption of SFAS 168 is not expected to have a material impact on our consolidated financial statements.
2. Net Income Per Share
The following table sets forth the computation of basic and diluted earnings per share for the years ended August 31:
2009 2008 2007
Numerator:
Net income $ 49,442 $ 60,319 $ 64,192
Denominator:
Weighted average shares outstanding – basic 60,761 60,403 68,019
Effect of dilutive employee stock options 477 1,867 2,573
Weighted average shares – diluted 61,238 62,270 70,592
Net income per share – basic $ 0.81 $ 1.00 $ 0.94
Net income per share – diluted $ 0.81 $ 0.97 $ 0.91
Anti-dilutive employee stock options excluded 6,493 3,255 1,858
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