Earnings Per Share

6 Months Ended

Jun. 30, 2011

3. Earnings Per Share

The Company considers its unvested share based payment awards, which contain non-forfeitable rights to dividends, participating securities, and includes such participating securities in its computation of earnings per share pursuant to the two-class method. Basic earnings per share for the two classes of stock (common stock and unvested restricted stock) is calculated by dividing net income by the weighted average number of shares of common stock and unvested restricted stock outstanding during the reporting period. Diluted earnings per share is calculated using the weighted average number of shares of common stock and unvested restricted stock plus the potentially dilutive effect of common equivalent shares outstanding determined under both the two class method and the treasury stock method.

The following table presents computations of basic and diluted earnings per share under the two class method:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Numerator:
Net income attributable to Cinemark Holdings, Inc.	$	40,411		$	39,682		$	65,374		$	74,775
Earnings allocated to participating share-based awards⁽¹⁾		(480	)		(425	)		(667	)		(600	)

Net income attributable to common stockholders	$	39,931		$	39,257		$	64,707		$	74,175


Denominator (shares in thousands):
Basic weighted average common stock outstanding		112,764			111,207			112,654			110,879
Common equivalent shares for stock options		41			200			46			266
Common equivalent shares for restricted stock units		404			145			380			154

Diluted		113,209			111,552			113,080			111,299


Basic earnings per share attributable to common stockholders	$	0.35		$	0.35		$	0.57		$	0.67

Diluted earnings per share attributable to common stockholders	$	0.35		$	0.35		$	0.57		$	0.67


⁽¹⁾		For the three months ended June 30, 2011 and 2010, a weighted average of approximately 1,357 and 1,206 shares of unvested restricted stock, respectively, were considered participating securities. For the six months ended June 30, 2011 and 2010, a weighted average of approximately 1,162 and 898 shares of unvested restricted stock, respectively, were considered participating securities.