Net Earnings Per Share

3 Months Ended

Mar. 31, 2013

Net Earnings Per Share

Net Earnings Per Share

Note 5. Net Earnings Per Share

Basic net earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company’s two classes of common stock, Class A and Class B Non-Voting, have equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock.

Diluted net earnings per share takes into account the potential conversion of stock options, restricted stock units, and warrants using the treasury stock method and convertible notes using the if-converted method.  For the three months ended March 31, 2013, the Company excluded 150,000 shares related to stock options which were potentially dilutive securities from the computation of diluted earnings per share because including these shares would be anti-dilutive.  For the three months ended March 31, 2012, the Company excluded 3,365,908 shares related to stock options which were potentially dilutive securities from the computation of diluted earnings per share because including these shares would be anti-dilutive.  In addition, the Company excluded 2,192,931 and 2,970,643 shares related to restricted stock units for which the performance metric had yet to be achieved as of March 31, 2013 and 2012, respectively.

The following table sets forth the reconciliation of basic and diluted net income per share (in thousands, except share amounts):

	Three Months Ended March 31,
	2013		2012
Basic net income per share:
Numerator
Net income	$	39,996	$	26,927
Denominator
Weighted-average common shares outstanding	101,260,614		100,717,302
Basic net income per share	$	0.39	$	0.27
Diluted net income per share:
Numerator
Net income	$	39,996	$	26,927
Assumed conversion of convertible senior notes	1,407		1,480
Net income plus assumed conversions	$	41,403	$	28,407
Denominator
Number of shares used in basic computation	101,260,614		100,717,302
Weighted-average effect of dilutive securities	7,086,271		6,709,487
Number of shares used in per share computation	108,346,885		107,426,789
Diluted net income per share	$	0.38	$	0.26