Note 5 - Stockholders' Equity

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note 5. Stockholders’ Equity

Repurchases

of Class A Common Stock

In August 2011, our Board of Directors authorized the repurchase of up to 2 million shares of our Class A common stock and, on July 20, 2012, our Board of Directors authorized the repurchase of 1 million additional shares of our Class A common stock. Through March 31, 2016, we have repurchased 2,327,636 shares under this authorization at an average price of $51.09 per share. Of this amount, 599,123 shares were repurchased during the first three months of 2016 at an average price of $79.21 per share for a total of $47.5 million.

Effective February 29, 2016, our Board of Directors authorized the repurchase of up to $250 million of our Class A common stock. This authorization replaced the existing authorization, increasing the total and establishing a maximum dollar rather than share amount. Through March 31, 2016, we have repurchased 19,000 shares under this authorization at an average price of $92.20 per share for a total of $1.8 million. As of March 31, 2016, we have $248.2 million available for repurchases pursuant to this authorization.

In addition, during the first three months of 2016, we repurchased 94,363 shares at an average price of $90.48 per share, for a total of $8.5 million, related to tax withholdings associated with the vesting of restricted stock units (“RSUs”). The repurchase of shares related to tax withholdings associated with stock awards does not reduce the number of shares available for repurchase as approved by our Board of Directors.

Class B Common Stock Conversion

On March 2, 2016, Lithia Holding Company, L.L.C. (“Holding Company”), which is managed and controlled by Sidney B. DeBoer, our Chairman of the Board, notified us that it had converted 780,000 shares of our Class B Common Stock into shares of our Class A Common Stock and distributed them to certain members of Holding Company in redemption of their membership interests in Holding Company.

Dividends

Dividends paid on our Class A and Class B common stock were as follows:

	Three Months Ended March 31,
	2016		2015
Dividend amount per share	$	0.20	$	0.16
Total amount of dividend (in thousands)		5,151		4,216

See Note 13 for a discussion of a dividend related to our first quarter 2016 financial results.