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Basic and Diluted Earnings Per Share | 3 Months Ended
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Jul. 31, 2016
Basic and Diluted Earnings Per Share |
2. | Basic and Diluted Earnings Per Share
Accounting Standards Codification 260, Earnings Per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends prior to vesting as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to certain employees under our restricted stock agreements, grants that contain non-forfeitable rights to dividends. Such grants are considered participating securities. Therefore, we are required to apply the two-class method in calculating earnings per share. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. The dilutive effect of participating securities is calculated using the more dilutive of the treasury method or the two-class method. Basic earnings per common share was computed using the two-class method by dividing basic net earnings attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per common share was computed using the two-class method by dividing diluted net earnings attributable to common stockholders by the weighted-average number of common shares outstanding plus dilutive common equivalent shares. Dilutive common equivalent shares include all in-the-money outstanding options or other contracts to issue common stock as if they were exercised or converted. During the three months ended July 31, 2016 and 2015, all shares of outstanding options were included in the computation of diluted earnings per share. During both the three months ended July 31, 2016 and 2015, restricted stock awards of 0.5 million were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. The following table summarizes basic and diluted earnings per common share attributable to common stockholders:
|  | Three Months Ended July 31, |
|  | 2016 |  |  | 2015 |
|  | (in thousands, except per share data) |
Net income attributable to Korn/Ferry International |  | $ | 3,208 |  |  | $ | 23,082 |
Less: distributed and undistributed earnings to nonvested restricted stockholders |  |  | 44 |  |  |  | 224 |
Basic net earnings attributable to common stockholders |  |  | 3,164 |  |  |  | 22,858 |
Add: undistributed earnings to nonvested restricted stockholders |  |  | — |  |  |  | 176 |
Less: reallocation of undistributed earnings to nonvested restricted stockholders |  |  | — |  |  |  | 174 |
Diluted net earnings attributable to common stockholders |  | $ | 3,164 |  |  | $ | 22,860 |
Weighted-average common shares outstanding: |  |  |  |  |  |  |  |
Basic weighted-average number of common shares outstanding |  |  | 56,189 |  |  |  | 49,493 |
Effect of dilutive securities: |  |  |  |  |  |  |  |
Restricted stock |  |  | 316 |  |  |  | 452 |
Stock options |  |  | 60 |  |  |  | 66 |
ESPP |  |  | 11 |  |  |  | 3 |
Diluted weighted-average number of common shares outstanding |  |  | 56,576 |  |  |  | 50,014 |
Net earnings per common share: |  |  |  |  |  |  |  |
Basic earnings per share |  | $ | 0.06 |  |  | $ | 0.46 |
Diluted earnings per share |  | $ | 0.06 |  |  | $ | 0.46 |

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- Definition The entire disclosure for earnings per share. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64863997&loc=d3e1278-109256 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=64863997&loc=d3e1252-109256 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 55 -Paragraph 52 -URI http://asc.fasb.org/extlink&oid=65016374&loc=d3e4984-109258 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.21) -URI http://asc.fasb.org/extlink&oid=63488584&loc=d3e20235-122688 + Details
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