Earnings Per Share (Notes)

3 Months Ended

Mar. 31, 2021

Earnings Per Share

Under ASC 260, Earnings per Share, the two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. Under that method, basic and diluted earnings per share data are presented for each class of common stock.

In applying the two-class method, we determined that undistributed earnings should be allocated equally on a per share basis between Class A and Class B common stock. Under our Certificate of Incorporation, the holders of the common stock are entitled to participate ratably, on a share-for-share basis as if all shares of common stock were of a single class, in such dividends as may be declared by the Board of Directors. During the three months ended March 31, 2021 and 2020, we declared and paid a quarterly dividend in the amount of $0.38 per share and $0.32 per share, respectively, on both classes of common stock.

Basic earnings per share has been computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during each period. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period in which the shares were outstanding. Diluted earnings per share have been computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive common shares that were outstanding during each period.

The net income available to common stockholders and weighted average number of common shares outstanding used to compute basic and diluted earnings per share for each class of common stock are as follows (in thousands, except per share amounts):


	Three months ended March 31,
	2021		2020
Distributed earnings	$	15,396	$	12,868
Undistributed earnings	16,932		15,811
Net income	$	32,328	$	28,679

Class A common stock:
Basic net income available to common stockholders	$	21,809	$	19,266
Basic weighted average common shares outstanding	27,317		26,992
Basic earnings per share	$	0.80	$	0.71

Diluted net income available to common stockholders	$	21,912	$	19,353
Effect of potential exercise of stock options	401		375
Diluted weighted average common shares outstanding	27,718		27,367
Diluted earnings per share	$	0.79	$	0.71

Class B common stock:
Basic net income available to common stockholders	$	10,519	$	9,413
Basic weighted average common shares outstanding	13,177		13,187
Basic earnings per share	$	0.80	$	0.71

Diluted net income available to common stockholders	$	10,416	$	9,326
Diluted weighted average common shares outstanding	13,177		13,187
Diluted earnings per share	$	0.79	$	0.71

For the three months ended March 31, 2021 and 2020, options to purchase 394 shares and 235,059 shares, respectively, were outstanding but not included in the computation of diluted earnings per share because the options' effect would have been anti-dilutive. For the three months ended March 31, 2021 and 2020, there were 61,804 shares and 47,224 shares, respectively, issued from the exercise of stock options. For the three months ended March 31, 2021 and 2020 there were 92,295 shares and 35,882 shares, respectively, issued from the vesting of restricted stock units.