Earnings Per Share (Notes)

3 Months Ended

Mar. 31, 2022

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, 2022 and 2021, we declared and paid quarterly dividends in the amounts of $0.41 per share and $0.38 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,
	2022		2021
Distributed earnings	$	16,751	$	15,396
Undistributed earnings	14,590		16,932
Net income	$	31,341	$	32,328

Class A common stock:
Basic net income available to common stockholders	$	21,617	$	21,809
Basic weighted average common shares outstanding	28,150		27,317
Basic earnings per share	$	0.77	$	0.80

Diluted net income available to common stockholders	$	21,682	$	21,912
Effect of potential exercise of stock options	273		401
Diluted weighted average common shares outstanding	28,423		27,718
Diluted earnings per share	$	0.76	$	0.79

Class B common stock:
Basic net income available to common stockholders	$	9,724	$	10,519
Basic weighted average common shares outstanding	12,662		13,177
Basic earnings per share	$	0.77	$	0.80

Diluted net income available to common stockholders	$	9,659	$	10,416
Diluted weighted average common shares outstanding	12,662		13,177
Diluted earnings per share	$	0.76	$	0.79

For the three months ended March 31, 2022 and 2021, options to purchase 21,074 shares and 394 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, 2022 and 2021, there were 80,429 shares and 61,804 shares, respectively, issued from the exercise of stock options. For the three months ended March 31, 2022 and 2021 there were 114,659 shares and 92,295 shares, respectively, issued from the vesting of restricted stock units.