Note 3. Earnings Per Share

3 Months Ended

Mar. 31, 2017

Earnings per share

Note 3. Earnings Per Share

Earnings per share of common stock is based on the weighted average number of shares outstanding during the year. The shares of Company stock attributable to our limited partner interest in The Lion Fund, L.P. and The Lion Fund II, L.P. (collectively, the “investment partnerships”) — based on our proportional ownership during this period — are considered treasury stock on the consolidated balance sheet and thereby deemed not to be included in the calculation of weighted average common shares outstanding. However, these shares are legally outstanding.

The following table presents a reconciliation of basic and diluted weighted average common shares. 

	First Quarter
	2017	2016
Basic earnings per share:
Weighted average common shares	1,234,478	1,241,733
Diluted earnings per share:
Weighted average common shares	1,234,478	1,241,733
Dilutive effect of stock awards	—	1,205
Weighted average common and incremental shares	1,234,478	1,242,938
Anti-dilutive stock awards excluded from the calculation of earnings per share	1,497	—

The Company’s common stock is $0.50 stated value. The following table presents shares authorized, issued and outstanding.

	March 31, 2017			December 31, 2016
Common stock authorized		2,500,000			2,500,000
Common stock issued		2,142,202			2,142,202
Treasury stock held by the Company		(74,589	)		(75,009	)
Outstanding shares		2,067,613			2,067,193
Proportional ownership of the Company's common stock in investment partnerships		(838,012	)		(834,889	)
Net outstanding shares for financial reporting purposes		1,229,601			1,232,304