NET INCOME PER SHARE

9 Months Ended

Sep. 30, 2011

3. NET INCOME PER SHARE

Basic net income per share for the three and nine months ended September 30, 2010 and 2011 is computed on the basis of the weighted average number of common shares outstanding. Diluted net income per common share is computed using the "if converted method" with the weighted average number of common shares outstanding plus the effect of outstanding stock options calculated using the "treasury stock" method. The number of shares excluded from the diluted net income per common share computation because their effect was antidilutive was 6,702,906 and 5,693,579 for the three months ended September 30, 2010 and 2011, respectively, and 6,810,206 and 4,334,655 for the nine months ended September30, 2010 and 2011, respectively.

The components of basic and diluted net income per share were as follows:

		Three months ended September 30,				Nine months ended September 30,

		2010		2011		2010		2011
Net income attributable to CTC Media, Inc. stockholders		$	24,299	$	16,393	$	70,402	$	77,653

Weighted average common shares outstanding—basic
Common stock			155,938,598		157,306,064		155,247,783		157,192,671
Dilutive effect of:
	Common stock options		608,816		631,876		450,914		835,951

Weighted average common shares outstanding—diluted			156,547,414		157,937,940		155,698,696		158,028,622
Net income per share attributable to CTC Media, Inc. stockholders:
	Basic	$	0.16	$	0.10	$	0.45	$	0.49
	Diluted	$	0.16	$	0.10	$	0.45	$	0.49

The numerator used to calculate diluted net income per common share for the three and nine months ended September 30, 2010 and 2011 was net income attributable to CTC Media, Inc. stockholders.