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Note 8 - Net Income Per Share of Class A and Class B Common Stock
 6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
Earnings Per Share [Text Block]
Note 8. Net Income Per Share of Class A and Class B Common Stock
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 common shares underlying equity awards that are unvested or subject to forfeiture. 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 common shares issuable upon the net exercise of stock options and unvested RSUs and 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 and transfer rights, the rights of the holders of our Class A and Class B common stock are identical. Under our Articles of Incorporation, the Class A and Class B common stock 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 that would adversely alter 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 year are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the year had been distributed. Because the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis.
 
Following is a reconciliation of net income and weighted average shares used for our basic earnings per share (“EPS”) and diluted EPS (in thousands, except per share amounts):
 
Three Months Ended June 30,
 
2016
 
 
2015
 
Basic EPS
 
Class A
 
 
Class B
 
 
Class A
 
 
Class B
 
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income applicable to common stockholders
   $ 47,869     $ 3,559     $ 46,239     $ 4,984  
Distributed net income applicable to common stockholders
     (5,932
)
     (441
)
     (4,754
)
     (512
)
Basic undistributed net income applicable to common stockholders
   $ 41,937     $ 3,118     $ 41,485     $ 4,472  
                                 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of shares outstanding used to calculate basic net income per share
     23,700       1,762       23,770       2,562  
                                 
Earnings per Share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic net income per share applicable to common stockholders
   $ 2.02     $ 2.02     $ 1.95     $ 1.95  
Basic distributed net income per share applicable to common stockholders
     (0.25
)
     (0.25
)
     (0.20
)
     (0.20
)
Basic undistributed net income per share applicable to common stockholders
   $ 1.77     $ 1.77     $ 1.75     $ 1.75  
Three Months Ended June 30,
 
2016
 
 
2015
 
Diluted EPS
 
Class A
 
 
Class B
 
 
Class A
 
 
Class B
 
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributed net income applicable to common stockholders
   $ 5,932     $ 441     $ 4,754     $ 512  
Reallocation of distributed net income as a result of conversion of dilutive stock options
     1       (1
)
     3       (3
)
Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding
     440       —       509       —  
Diluted distributed net income applicable to common stockholders
   $ 6,373     $ 440     $ 5,266     $ 509  
                                 
Undistributed net income applicable to common stockholders
   $ 41,937     $ 3,118     $ 41,485     $ 4,472  
Reallocation of undistributed net income as a result of conversion of dilutive stock options
     9       (9
)
     28       (28
)
Reallocation of undistributed net income due to conversion of Class B to Class A
     3,109       —       4,444       —  
Diluted undistributed net income from continuing operations applicable to common stockholders
   $ 45,055     $ 3,109     $ 45,957     $ 4,444  
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of shares outstanding used to calculate basic net income per share
     23,700       1,762       23,770       2,562  
Weighted average number of shares from stock options
     72       —       164       —  
Conversion of Class B to Class A common shares outstanding
     1,762       —       2,562       —  
Weighted average number of shares outstanding used to calculate diluted net income per share
     25,534       1,762       26,496       2,562  
                                 
Earnings per Share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net income per share applicable to common stockholders
   $ 2.01     $ 2.01     $ 1.93     $ 1.93  
Diluted distributed net income per share applicable to common stockholders
     (0.25
)
     (0.25
)
     (0.20
)
     (0.20
)
Diluted undistributed net income per share applicable to common stockholders
   $ 1.76     $ 1.76     $ 1.73     $ 1.73  
 
 
Three Months Ended June 30,
 
2016
 
 
2015
 
Diluted EPS
 
Class A
 
 
Class B
 
 
Class A
 
 
Class B
 
Antidilutive Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issuable pursuant to stock options not included since they were antidilutive
     —       —       17       —  
 
Six Months Ended June 30,
 
2016
 
 
2015
 
Basic EPS
 
Class A
 
 
Class B
 
 
Class A
 
 
Class B
 
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income applicable to common stockholders
   $ 84,445     $ 7,253     $ 82,929     $ 8,947  
Distributed net income applicable to common stockholders
     (10,612
)
     (912
)
     (8,559
)
     (923
)
Basic undistributed net income applicable to common stockholders
   $ 73,833     $ 6,341     $ 74,370     $ 8,024  
                                 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of shares outstanding used to calculate basic net income per share
     23,611       2,028       23,748       2,562  
                                 
Earnings per Share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic net income per share applicable to common stockholders
   $ 3.58     $ 3.58     $ 3.49     $ 3.49  
Basic distributed net income per share applicable to common stockholders
     (0.45
)
     (0.45
)
     (0.36
)
     (0.36
)
Basic undistributed net income per share applicable to common stockholders
   $ 3.13     $ 3.13     $ 3.13     $ 3.13  
 
Six Months Ended June 30,
 
2016
 
 
2015
 
Diluted EPS
 
Class A
 
 
Class B
 
 
Class A
 
 
Class B
 
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributed net income applicable to common stockholders
   $ 10,612     $ 912     $ 8,559     $ 923  
Reallocation of distributed net income as a result of conversion of dilutive stock options
     5       (5
)
     7       (7
)
Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding
     907       —       916       —  
Diluted distributed net income applicable to common stockholders
   $ 11,524     $ 907     $ 9,482     $ 916  
                                 
Undistributed net income applicable to common stockholders
   $ 73,833     $ 6,341     $ 74,370     $ 8,024  
Reallocation of undistributed net income as a result of conversion of dilutive stock options
     28       (28
)
     61       (61
)
Reallocation of undistributed net income due to conversion of Class B to Class A
     6,313       —       7,963       —  
Diluted undistributed net income applicable to common stockholders
   $ 80,174     $ 6,313     $ 82,394     $ 7,963  
                                 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average number of shares outstanding used to calculate basic net income per share
     23,611       2,028       23,748       2,562  
Weighted average number of shares from stock options
     115       —       199       —  
Conversion of Class B to Class A common shares outstanding
     2,028       —       2,562       —  
Weighted average number of shares outstanding used to calculate diluted net income per share
     25,754       2,028       26,509       2,562  
                                 
Earnings per Share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net income per share applicable to common stockholders
   $ 3.56     $ 3.56     $ 3.47     $ 3.47  
Diluted distributed net income per share applicable to common stockholders
     (0.45
)
     (0.45
)
     (0.36
)
     (0.36
)
Diluted undistributed net income per share applicable to common stockholders
   $ 3.11     $ 3.11     $ 3.11     $ 3.11  
 
Six Months Ended June 30,
 
2016
 
 
2015
 
Diluted EPS
 
Class A
 
 
Class B
 
 
Class A
 
 
Class B
 
Antidilutive Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issuable pursuant to stock options not included since they were antidilutive
     10       —       16       —