| Earnings Per Share | We calculate EPS using the two-class method. Refer to Note 2 — Summary of Significant Accounting Policies for a discussion of the calculation of EPS. The calculation of basic EPS and diluted EPS was as follows: | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2011 | | 2010 | | 2011 | | 2010 | | (In thousands, except per share data) | Basic earnings per Class A common share | | | | | | | | Net income | $ | 13,303 |
| | $ | 8,971 |
| | $ | 38,074 |
| | $ | 34,294 |
| Allocated earnings to preferred stock | — |
| | (1,255 | ) | | — |
| | (16,094 | ) | Allocated earnings to other classes of common stock | (5,922 | ) | | (6,773 | ) | | (18,776 | ) | | (16,942 | ) | Net income allocated to Class A common stockholders | 7,381 |
| | 943 |
| | 19,298 |
| | 1,258 |
| Weighted-average Class A shares issued and outstanding | 23,401 |
| | 4,266 |
| | 21,322 |
| | 1,442 |
| Basic earnings per Class A common share | $ | 0.32 |
| | $ | 0.23 |
| | $ | 0.91 |
| | $ | 0.86 |
| | | | | | | | | Diluted earnings per Class A common share | | | | | | | | Net income allocated to Class A common stockholders | $ | 7,381 |
| | $ | 943 |
| | $ | 19,298 |
| | $ | 1,258 |
| Allocated earnings to participating securities, net of re-allocated earnings | 5,741 |
| | 6,509 |
| | 18,204 |
| | 17,288 |
| Re-allocated earnings | (318 | ) | | (71 | ) | | (942 | ) | | (94 | ) | Diluted net income allocated to Class A common stockholders | 12,804 |
| | 7,381 |
| | 36,560 |
| | 18,452 |
| Weighted-average Class A shares issued and outstanding | 23,401 |
| | 4,266 |
| | 21,322 |
| | 1,442 |
| Dilutive potential common shares: | | | | | | | | Class B common stock | 19,023 |
| | 31,862 |
| | 21,155 |
| | 21,441 |
| Stock options | — |
| | — |
| | — |
| | — |
| Restricted stock units | 2 |
| | — |
| | 1 |
| | — |
| Employee stock purchase plan | — |
| | 4 |
| | 8 |
| | 1 |
| Diluted weighted-average Class A shares issued and outstanding | 42,426 |
| | 36,132 |
| | 42,486 |
| | 22,884 |
| Diluted earnings per Class A common share | $ | 0.30 |
| | $ | 0.20 |
| | $ | 0.86 |
| | $ | 0.81 |
|
| | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2011 | | 2010 | | 2011 | | 2010 | | (In thousands, except per share data) | Basic earnings per Class B common share | | | | | | | | Net income | $ | 13,303 |
| | $ | 8,971 |
| | $ | 38,074 |
| | $ | 34,294 |
| Allocated earnings and deemed dividends to preferred stock | — |
| | (1,255 | ) | | — |
| | (16,094 | ) | Allocated earnings to other classes of common stock | (7,902 | ) | | (1,402 | ) | | (20,891 | ) | | (2,299 | ) | Net income allocated to Class B common stockholders | 5,401 |
| | 6,314 |
| | 17,183 |
| | 15,901 |
| Weighted-average Class B shares issued and outstanding | 17,124 |
| | 28,627 |
| | 18,985 |
| | 18,232 |
| Basic earnings per Class B common share | $ | 0.32 |
| | $ | 0.22 |
| | $ | 0.91 |
| | $ | 0.87 |
| | | | | | | | | Diluted earnings per Class B common share | | | | | | | | Net income allocated to Class B common stockholders | $ | 5,401 |
| | $ | 6,314 |
| | $ | 17,183 |
| | $ | 15,901 |
| Re-allocated earnings | 340 |
| | 195 |
| | 1,021 |
| | 1,387 |
| Diluted net income allocated to Class B common stockholders | 5,741 |
| | 6,509 |
| | 18,204 |
| | 17,288 |
| Weighted-average Class B shares issued and outstanding | 17,124 |
| | 28,627 |
| | 18,985 |
| | 18,232 |
| Dilutive potential common shares: | | | | | | | | Stock options | 1,899 |
| | 3,180 |
| | 2,170 |
| | 3,011 |
| Warrants | — |
| | 55 |
| | — |
| | 198 |
| Diluted weighted-average Class B shares issued and outstanding | 19,023 |
| | 31,862 |
| | 21,155 |
| | 21,441 |
| Diluted earnings per Class B common share | $ | 0.30 |
| | $ | 0.20 |
| | $ | 0.86 |
| | $ | 0.81 |
|
As of September 30, 2011, 1,582,782 shares of Class A common stock issued to Walmart were subject to our repurchase right. Basic and diluted EPS for these shares were the same as basic and diluted EPS for our Class A common stock for the three and nine-month periods ended September 30, 2011 and 2010. We excluded from the computation of basic EPS all shares issuable under an unvested warrant to purchase 4,283,456 shares of our Class B common stock, as the related performance conditions had not been satisfied. For the periods presented, we excluded all shares of convertible preferred stock and certain stock options outstanding, which could potentially dilute basic EPS in the future, from the computation of diluted EPS as their effect was anti-dilutive. The following table shows the weighted-average number of anti-dilutive shares excluded from the diluted EPS calculation: | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2011 | | 2010 | | 2011 | | 2010 | | (In thousands) | Class A common stock | | | | | | | | Options to purchase Class A common stock | 522 |
| | 12 |
| | 209 |
| | 11 |
| Class B common stock | | | | | | | | Options to purchase Class B common stock | 21 |
| | 5 |
| | 3 |
| | 24 |
| Conversion of convertible preferred stock | — |
| | 5,693 |
| | — |
| | 18,455 |
| Total options and convertible preferred stock | 21 |
| | 5,698 |
| | 3 |
| | 18,479 |
|
|