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Note 17 - Net Income Per Share of Class A and Class B Common Stock
 12 Months Ended
Dec. 31, 2013
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

(17)         Net Income Per Share of Class A and Class B Common Stock


We compute net income per share of Class A and Class B common stock using the two-class method. Under this method, basic net income per share is computed using the weighted average number of common shares outstanding during the period excluding unvested common shares subject to repurchase or cancellation. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and unvested restricted shares subject to repurchase or cancellation. The dilutive effect of outstanding stock options and other grants is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A common stock assumes the conversion of Class B common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares.


Except with respect to voting and transfer rights, the rights of the holders of our Class A and Class B common stock are identical. Our Restated Articles of Incorporation require that the Class A and Class B common stock must share equally in any dividends, liquidation proceeds or other distribution with respect to our common stock and the Articles of Incorporation can only be amended by a vote of the stockholders. Additionally, Oregon law provides that amendments to our Articles of Incorporation, which would have the effect of adversely altering the rights, powers or preferences of a given class of stock, must be approved by the class of stock adversely affected by the proposed amendment. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the year had been distributed. Because the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis.


Following is a reconciliation of the income from continuing operations and weighted average shares used for our basic earnings per share (“EPS”) and diluted EPS for the years ended December 31, 2013, 2012 and 2011 (in thousands, except per share amounts):


Year Ended December 31,

 

2013

   

2012

   

2011

 

Basic EPS

 

Class A

   

Class B

   

Class A

   

Class B

   

Class A

   

Class B

 

Numerator:

                                               

Income from continuing operations applicable to common stockholders

  $ 94,532     $ 10,682     $ 69,069     $ 10,326     $ 47,292     $ 7,918  

Distributed income applicable to common stockholders

    (9,061 )     (1,024 )     (10,497 )     (1,569 )     (5,844 )     (978 )

Basic undistributed income from continuing operations applicable to common stockholders

  $ 85,471     $ 9,658     $ 58,572     $ 8,757     $ 41,448     $ 6,940  

Denominator:

                                               

Weighted average number of shares out-standing used to calculate basic income per share

    23,185       2,620       22,354       3,342       22,468       3,762  

Basic income from continuing operations per share applicable to common stockholders

  $ 4.08     $ 4.08     $ 3.09     $ 3.09     $ 2.10     $ 2.10  

Basic distributed income per share applicable to common stockholders

    (0.39 )     (0.39 )     (0.47 )     (0.47 )     (0.26 )     (0.26 )

Basic undistributed income from continuing operations per share applicable to common stockholders

  $ 3.69     $ 3.69     $ 2.62     $ 2.62     $ 1.84     $ 1.84  

Year Ended December 31,

 

2013

   

2012

   

2011

 

Diluted EPS

 

Class A

   

Class B

   

Class A

   

Class B

   

Class A

   

Class B

 

Numerator:

                                               

Distributed income applicable to common stockholders

  $ 9,061     $ 1,024     $ 10,497     $ 1,569     $ 5,844     $ 978  

Reallocation of distributed income as a result of conversion of dilutive stock options

    15       (15 )     28       (28 )     15       (15 )

Reallocation of distributed income due to conversion of Class B to Class A

    1,009       -       1,541       -       963       -  

Diluted distributed income applicable to common stockholders

  $ 10,085     $ 1,009     $ 12,066     $ 1,541     $ 6,822     $ 963  

Undistributed income from continuing operations applicable to common stockholders

  $ 85,471     $ 9,658     $ 58,572     $ 8,757     $ 41,448     $ 6,940  

Reallocation of undistributed income as a result of conversion of dilutive stock options

    142       (142 )     159       (159 )     113       (113 )

Reallocation of undistributed income due to conversion of Class B to Class A

    9,516       -       8,598       -       6,827       -  

Diluted undistributed income from continuing operations applicable to common stockholders

  $ 95,129     $ 9,516     $ 67,329     $ 8,598     $ 48,388     $ 6,827  
                                                 

Denominator:

                                               

Weighted average number of shares outstanding used to calculate basic income per share

    23,185       2,620       22,354       3,342       22,468       3,762  

Weighted average number of shares from stock options

    386       -       474       -       434       -  

Conversion of Class B to Class A

    2,620       -       3,342       -       3,762       -  

Weighted average number of shares outstanding used to calculate diluted income per share

    26,191       2,620       26,170       3,342       26,664       3,762  

Year Ended December 31,

 

2013

   

2012

   

2011

 

Diluted EPS

 

Class A

   

Class B

   

Class A

   

Class B

   

Class A

   

Class B

 

Diluted income from continuing operations per share available to common stockholders

  $ 4.02     $ 4.02     $ 3.03     $ 3.03     $ 2.07     $ 2.07  

Diluted distributed income from continuing operations per share applicable to common stockholders

    (0.39 )     (0.39 )     (0.47 )     (0.47 )     (0.26 )     (0.26 )

Diluted undistributed income from continuing operations per share applicable to common stockholders

  $ 3.63     $ 3.63     $ 2.56     $ 2.56     $ 1.81     $ 1.81  

Antidilutive Securities:

                                               

Shares issuable pursuant to stock options not included since they were antidilutive

    16       -       45       -       280       -