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Note 18 - Earnings Per Share
9 Months Ended
Sep. 30, 2011
Earnings Per Share [Text Block]
Note 18. Earnings Per Share

We compute net income per share of Class A and Class B common stock using the two-class method. Under this method, basic net income per share is computed using the weighted average number of common shares outstanding during the period excluding unvested common shares subject to repurchase or cancellation. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and unvested restricted shares subject to repurchase or cancellation. The dilutive effect of outstanding stock options and other grants is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A common stock assumes the conversion of Class B common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares.

Except with respect to voting rights, the rights of the holders of our Class A and Class B common stock are identical. Our Restated Articles of Incorporation require that the Class A and Class B common stock must share equally in any dividends, liquidation proceeds or other distribution with respect to our common stock and the Articles of Incorporation can only be amended by a vote of the shareholders. Additionally, Oregon law provides that amendments to our Articles of Incorporation, which would have the effect of adversely altering the rights, powers or preferences of a given class of stock, must be approved by the class of stock adversely affected by the proposed amendment. As a result, the undistributed earnings for each period are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the period had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as we assume the conversion of Class B common stock in the computation of the diluted net income per share of Class A common stock, the distributed and undistributed earnings are equal to net income for that computation.

Following is a reconciliation of the income from continuing operations and weighted average shares used for our basic earnings per share (“EPS”) and diluted EPS from continuing operations for the three- and nine-month periods ended September 30, 2011 and 2010 (in thousands, except per share amounts):

Three Months Ended September 30,
 
2011
   
2010
 
Basic EPS from Continuing Operations
 
Class A
   
Class B
   
Class A
   
Class B
 
Numerator:
                       
Income from continuing operations applicable to common stockholders
  $ 13,992     $ 2,347     $ 8,182     $ 1,377  
Distributed income applicable to common stockholders
    (1,574 )     (264 )     (1,119 )     (188 )
Basic undistributed income from continuing operations applicable to common stockholders
  $ 12,418     $ 2,083     $ 7,063     $ 1,189  
                                 
Denominator:
                               
Weighted average number of shares outstanding used to calculate basic income per share
    22,427       3,762       22,358       3,762  
                                 
Basic income per share from continuing operations applicable to common stockholders
  $ 0.62     $ 0.62     $ 0.37     $ 0.37  
Basic distributed income per share from continuing operations applicable to common stockholders
    (0.07 )     (0.07 )     (0.05 )     (0.05 )
Basic undistributed income per share from continuing operations applicable to common stockholders
  $ 0.55     $ 0.55     $ 0.32     $ 0.32  

Three Months Ended September 30,
 
2011
   
2010
 
Diluted EPS from Continuing Operations
 
Class A
   
Class B
   
Class A
   
Class B
 
Numerator:
                       
Distributed income applicable to common stockholders
  $ 1,574     $ 264     $ 1,119     $ 188  
Reallocation of distributed income as a result of conversion of dilutive stock options
    5       (5 )     -       -  
Reallocation of distributed income due to conversion of Class B to Class A common shares outstanding
    259       -       188       -  
Diluted distributed income applicable to common stockholders
  $ 1,838     $ 259     $ 1,307     $ 188  
Undistributed income from continuing operations applicable to common stockholders
  $ 12,418     $ 2,083     $ 7,063     $ 1,189  
Reallocation of undistributed income as a result of conversion of dilutive stock options
    36       (36 )     10       (10 )
Reallocation of undistributed income due to conversion of Class B to Class A
    2,047       -       1,179       -  
Diluted undistributed income from continuing operations applicable to common stockholders
  $ 14,501     $ 2,047     $ 8,252     $ 1,179  
                                 
Denominator:
                               
Weighted average number of shares outstanding used to calculate basic income per share from continuing operations
    22,427       3,762       22,358       3,762  
Weighted average number of shares from stock options
    465       -       208       -  
Conversion of Class B to Class A common shares outstanding
    3,762       -       3,762       -  
Weighted average number of shares outstanding used to calculate diluted income per share from continuing operations
    26,654       3,762       26,328       3,762  
                                 
Diluted income per share from continuing operations applicable to common stockholders
  $ 0.61     $ 0.61     $ 0.36     $ 0.36  
Diluted distributed income per share from continuing operations applicable to common stockholders
    (0.07 )     (0.07 )     (0.05 )     (0.05 )
Diluted undistributed income per share from continuing operations applicable to common stockholders
  $ 0.54     $ 0.54     $ 0.31     $ 0.31  

Three Months Ended September 30,
 
2011
   
2010
 
Diluted EPS
 
Class A
   
Class B
   
Class A
   
Class B
 
Antidilutive Securities
                       
Shares issuable pursuant to stock options not included since they were antidilutive
    275       -       708       -  

Nine Months Ended September 30,
 
2011
   
2010
 
Basic EPS from Continuing Operations
 
Class A
   
Class B
   
Class A
   
Class B
 
Numerator:
                       
Income from continuing operations applicable to common stockholders
  $ 33,797     $ 5,635     $ 7,948     $ 1,344  
Distributed income applicable to common stockholders
    (4,291 )     (715 )     (2,230 )     (377 )
Basic undistributed income from continuing operations applicable to common stockholders
  $ 29,506     $ 4,920     $ 5,718     $ 967  
                                 
Denominator:
                               
Weighted average number of shares outstanding used to calculate basic income per share
    22,562       3,762       22,249       3,762  
                                 
Basic income per share from continuing operations applicable to common stockholders
  $ 1.50     $ 1.50     $ 0.36     $ 0.36  
Basic distributed income per share from continuing operations applicable to common stockholders
    (0.19 )     (0.19 )     (0.10 )     (0.10 )
Basic undistributed income per share from continuing operations applicable to common stockholders
  $ 1.31     $ 1.31     $ 0.26     $ 0.26  

Nine Months Ended September 30,
 
2011
   
2010
 
Diluted EPS from Continuing Operations
 
Class A
   
Class B
   
Class A
   
Class B
 
Numerator:
                       
Distributed income applicable to common stockholders
  $ 4,291     $ 715     $ 2,230     $ 377  
Reallocation of distributed income as a result of conversion of dilutive stock options
    11       (11 )     3       (3 )
Reallocation of distributed income due to conversion of Class B to Class A common shares outstanding
    704       -       374       -  
Diluted distributed income applicable to common stockholders
  $ 5,006     $ 704     $ 2,607     $ 374  
Undistributed income from continuing operations applicable to common stockholders
  $ 29,506     $ 4,920     $ 5,718     $ 967  
Reallocation of undistributed earnings as a result of conversion of dilutive stock options
    76       (76 )     7       (7 )
Reallocation of undistributed income due to conversion of Class B to Class A
    4,844       -       960       -  
Diluted undistributed income from continuing operations applicable to common stockholders
  $ 34,426     $ 4,844     $ 6,685     $ 960  
                                 
Denominator:
                               
Weighted average number of shares outstanding used to calculate basic income per share from continuing operations
    22,562       3,762       22,249       3,762  
Weighted average number of shares from stock options
    414       -       180       -  
Conversion of Class B to Class A common shares outstanding
    3,762       -       3,762       -  
Weighted average number of shares outstanding used to calculate diluted income per share from continuing operations
    26,738       3,762       26,191       3,762  
                                 
Diluted income per share from continuing operations applicable to common stockholders
  $ 1.47     $ 1.47     $ 0.35     $ 0.35  
Diluted distributed income per share from continuing operations applicable to common stockholders
    (0.19 )     (0.19 )     (0.10 )     (0.10 )
Diluted undistributed income per share from continuing operations applicable to common stockholders
  $ 1.28     $ 1.28     $ 0.25     $ 0.25  

Nine Months Ended September 30,
 
2011
   
2010
 
Diluted EPS
 
Class A
   
Class B
   
Class A
   
Class B
 
Antidilutive Securities
                       
Shares issuable pursuant to stock options not included since they were antidilutive
    314       -       725       -