Whole Foods 2010 Annual Report Download - page 57

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51
A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows (in
thousands, except per share amounts):
2010 2009 2008
Income available to common shareholders
(numerator for basic earnings per share) $ 240,355 $ 118,754 $ 114,524
Preferred stock dividends 5,478 - -
Adjusted income available to common shareholders
(numerator for diluted earnings per share) $ 245,833 $ 118,754 $ 114,524
Weighted average common shares outstanding
(denominator for basic earnings per share) 166,244 140,414 139,886
Potential common shares outstanding:
Incremental shares from assumed exercise of stock options 715 - 125
Assumed conversion of preferred stock 4,751 - -
Weighted average common shares outstanding and
potential additional common shares outstanding
(denominator for diluted earnings per share) 171,710 140,414 140,011
Basic earnings per share $ 1.45 $ 0.85 $ 0.82
Diluted earnings per share $ 1.43 $ 0.85 $ 0.82
The computation of diluted earnings per share for fiscal year 2010 does not include options to purchase approximately 13.2
million shares of common stock due to their antidilutive effect. The computation of diluted earnings per share for fiscal year
2009 does not include options to purchase approximately 16.5 million shares of common stock or the conversion of Series A
Preferred Stock to approximately 24.1 million shares of common stock due to their antidilutive effect. The computation of
diluted earnings per share for fiscal year 2008 does not include options to purchase approximately 13.4 million shares of
common stock or approximately 70,000 shares of common stock related to the zero coupon convertible subordinated
debentures at year end due to their antidilutive effect.
(17) Share-Based Payments
Total share-based payment expense before income taxes recognized during fiscal years 2010, 2009 and 2008 was
approximately $22.9 million, $12.8 million and $10.5 million, respectively. Share-based payment expense was included in
the following line items on the Consolidated Statements of Operations for the periods indicated (in thousands):
2010 2009 2008
Cost of goods sold and occupancy costs $ 862 $ 439 $ 233
Direct store expenses 10,140 7,152 5,300
General and administrative expenses 11,892 5,204 4,972
Share-based payment expense before income taxes 22,894 12,795 10,505
Income tax benefit (9,170) (5,222) (4,815)
Net share-based payment expense $ 13,724 $ 7,573 $ 5,690
Stock Options
At September 26, 2010, September 27, 2009 and September 28, 2008, approximately 12.7 million, 15.4 million and 4.5
million shares of our common stock, respectively, were available for future stock incentive grants.