Earnings Per Share (Notes)

6 Months Ended

Jun. 30, 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 six months ended June 30, 2021 and 2020, we declared and paid two quarterly dividends in the amounts 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 June 30,				Six months ended June 30,
	2021		2020		2021		2020
Distributed earnings	$	15,455	$	12,902	$	30,851	$	25,770
Undistributed earnings	21,154		17,046		38,086		32,857
Net income	$	36,609	$	29,948	$	68,937	$	58,627

Class A common stock:
Basic net income available to common stockholders	$	24,730	$	20,141	$	46,537	$	39,407
Basic weighted average common shares outstanding	27,434		27,082		27,376		27,037
Basic earnings per share	$	0.90	$	0.74	$	1.70	$	1.46

Diluted net income available to common stockholders	$	24,830	$	20,220	$	46,741	$	39,576
Effect of potential exercise of stock options	345		327		373		358
Diluted weighted average common shares outstanding	27,779		27,409		27,749		27,395
Diluted earnings per share	$	0.89	$	0.74	$	1.68	$	1.44

Class B common stock:
Basic net income available to common stockholders	$	11,879	$	9,807	$	22,400	$	19,220
Basic weighted average common shares outstanding	13,177		13,187		13,177		13,187
Basic earnings per share	$	0.90	$	0.74	$	1.70	$	1.46

Diluted net income available to common stockholders	$	11,779	$	9,728	$	22,196	$	19,051
Diluted weighted average common shares outstanding	13,177		13,187		13,177		13,187
Diluted earnings per share	$	0.89	$	0.74	$	1.68	$	1.44

For the three months ended June 30, 2021 and 2020, options to purchase 428 shares and 228,816 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 six months ended June 30, 2021 and 2020, options to purchase 411 shares and 231,938 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 six months ended June 30, 2021 and 2020, there were 125,534 shares and 103,660 shares, respectively, issued from the exercise of stock options. For the six months ended June 30, 2021 and 2020 there were 117,129 shares and 48,861 shares, respectively, issued from the vesting of restricted stock units.