The following computation reconciles the differences between the basic and
diluted earnings per share presentations (in thousands, except per share
Fiscal Years Ended
June 30, June 24, June 26,
2013 2012 2011
Dilutive effect of stock options, nonvested shares and ESPP purchase rights 1,358 532
Weighted average common shares - diluted 117,979 115,225 110,035 Diluted earnings per share
$0.74 $0.39 $1.3368
Table of Contents
Potential common shares that would have the effect of increasing diluted earnings per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted earnings per share. For the fiscal years ended
June 30, 2013, June 24, 2012and June 26, 2011, there were 2.4 million, 7.0 million and 2.0 million, respectively, of potential common shares not included in the calculation of diluted earnings per share because their effect was anti-dilutive.
Note 10 - Stock-Based Compensation
Overview of Employee Stock-Based Compensation Plans
The Companycurrently has one equity-based compensation plan, the 2004 Long-Term Incentive Compensation Plan, from which stock-based compensation awards can be granted to employees and directors. In addition, the Company has assumed plans that have been terminated as to future grants, but under which options are currently outstanding. The 2004 Long-Term Incentive Compensation Plan provides for awards in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, and restricted stock units. As of June 30, 2013, there were 24.9 million shares authorized for issuance under the plan and 7.8 million shares remaining for future grants. Awards issued under the plan to date include non-qualified stock options, restricted stock, stock units and performance units. During fiscal 2013, the Company initiated grants of performance-based stock option and stock unit awards. The compensation expense for an award with a performance condition is based on the probable outcome of that performance condition. Compensation expense is recognized if the Company believes it is probable that the performance condition will be achieved and is adjusted for subsequent changes in the estimate or actual outcome. As with non-performance based awards, compensation expense is recognized over the vesting period. The vesting period runs from the date of grant to the expected date that the performance objective is likely to be achieved. The Company also has an Employee Stock Purchase Plan (ESPP) that provides employees with the opportunity to purchase common stock at a discount. As of June 30, 2013, there were 2.5 million shares authorized for issuance under the ESPP, as amended, with 0.7 million shares remaining for future issuance. The ESPP limits employee contributions to 15% of each employee's compensation (as defined in the plan) and originally allowed employees to purchase shares at a 15% discount to the fair market value of common stock on the purchase date two times per year. The ESPP was amended in the second quarter of fiscal 2012 to increase the six-month participation period to a twelve-month participation period, divided into two equal six-month purchase periods, and to provide for a look-back feature. At the end of each six-month period in April and October, employees participating in the plan purchase the Company's common stock through the ESPP at a 15% discount to the fair market value of the common stock on the first day of the twelve-month participation period or the purchase date, whichever is lower. The plan amendment also provides for an automatic reset feature to start participants on a new twelve-month participation period if the share value declines during the first six-month purchase period.