Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share

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 the Company's 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 2011, we declared and paid two dividends of $0.42 per share 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 has 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 weighted average number of common shares outstanding is computed as follows (in thousands):

	Year Ended December 31,
	2011		2010		2009
Numerator for net income per Class A and Class B common stock:
Distributed earnings	$	30,872	$	—	$	—
Undistributed earnings	$	102,434	$	125,096	$	111,764
Net income	$	133,306	$	125,096	$	111,764
Numerator for basic net income Class A common stock	$	85,172	$	78,921	$	68,837
Numerator for basic net income Class B common stock	$	48,134	$	46,175	$	42,927
Numerator for diluted net income Class A common stock	$	85,323	$	79,183	$	69,192
Numerator for diluted net income Class B common stock	$	47,983	$	45,913	$	42,572
Basic weighted average common shares outstanding
Class A common stock	23,415		22,847		21,980
Class B common stock	13,233		13,367		13,707
Effect of potential exercise of stock options
Class A common stock	115		207		298
Class B common stock	—		—		—
Diluted weighted average common shares outstanding - Class A	23,530		23,054		22,278
Diluted weighted average common shares outstanding - Class B	13,233		13,367		13,707

For the years ended December 31, 2011, 2010 and 2009, options to purchase 2.2 million, 1.8 million and 1.2 million 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 years ended December 31, 2011, 2010 and 2009, shares issued from the exercise of stock options were $0.3 million, $0.4 million and $0.4 million, respectively.