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Earnings Per Share
 3 Months Ended
Mar. 31, 2014
Earnings Per Share [Abstract]  
Earnings Per Share
8. EARNINGS PER SHARE
The Company's unvested restricted stock awards contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The diluted earnings per share computed under the two-class method is lower than the diluted earnings per share computed under the treasury stock method, resulting in the presentation of the lower amount in diluted earnings per share. The computation of the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator.
The following reflects the Company's income from continuing operations and share data used in the basic and diluted earnings per share computations using the two-class method:
 
Three Months Ended 
 March 31
(in thousands, except per share amounts)
2014
 
2013
Numerator:
 
 
 
Numerator for basic earnings per share:
  
 
  
Income from continuing operations attributable to Graham Holdings Company common stockholders
$
131,026

 
$
21,691

Less: Dividends-common stock outstanding and unvested restricted shares
(37,675
)
 
—

Undistributed earnings
93,351

 
21,691

Percent allocated to common stockholders
98.33
%
 
97.38
%
 
91,790

 
21,122

Add: Dividends-common stock outstanding
37,044

 
—

Numerator for basic earnings per share
$
128,834

 
$
21,122

Add: Additional undistributed earnings due to dilutive stock options
5

 
—

Numerator for diluted earnings per share
$
128,839

 
$
21,122

Denominator:
 
 
 
Denominator for basic earnings per share:


 


Weighted average shares outstanding
7,275

 
7,227

Add: Effect of dilutive stock options
26

 
1

Denominator for diluted earnings per share
7,301

 
7,228

Graham Holdings Company Common Stockholders:
  
 
  
Basic earnings per share from continuing operations
$
17.71

 
$
2.92

Diluted earnings per share from continuing operations
$
17.65

 
$
2.92


Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method:
 
 
Three Months Ended 
 March 31
(in thousands)
 
2014
 
2013
Weighted average restricted stock
 
51

 
38


For the first quarter of 2014 and 2013, the diluted earnings per share amounts exclude the effects of 5,000 and 85,861 stock options outstanding, respectively, as their inclusion would have been antidilutive. The first quarter of 2014 and 2013 diluted earnings per share amounts exclude the effects of 5,550 and 52,200 restricted stock awards, respectively, as their inclusion would have been antidilutive.
In the first quarter of 2014, the Company declared regular dividends totaling $5.10 per share. No dividends were paid in 2013.