Had compensation cost for the Company’s Stock Option Plan been determined based on the fair value of the options consistent with SFAS 123, during the fiscal year ended October 28, 2005, the Company’s net income and earnings per share would have remained unchanged as indicated below:

The fair value of compensatory stock options was estimated using the Black-Scholes option-pricing model using the following weighted average assumptions at the date of issuance:

The following balances are reflected as of November 2, 2007:

The following balances are reflected as of  November 3, 2006:

 The following balances are reflected as of October 28, 2005:

Basic and diluted earnings per share

Basic earnings per share is calculated based on the weighted average number of shares outstanding for all periods presented. Diluted earnings per share is calculated based on the weighted average number of shares outstanding plus shares issuable on conversion or exercise of all potentially dilutive securities (stock options).

Foreign currency transactions

The Company’s foreign branch located in Canada enters into transactions that are denominated in a foreign currency. The related transaction gains and losses arising from changes in exchange rates are not material and are included in selling, general and administrative expenses in the consolidated statement of operations in the period the transaction occurred.