Earnings Per Share

12 Months Ended

Dec. 31, 2011

13. EARNINGS PER SHARE

Earnings per share is computed using the two-class method, considering the restricted common shares, due to their participation rights in dividends of the Company. Under this method, the Company’s net income is reduced by the portion of net income attributable to the restricted common shares, and this amount is divided by the weighted average shares of common stock outstanding.

The components of earnings per share are as follows for the years ended December 31 (in thousands, except per share data):


	2011						2010						2009
	Net Income			Shares			Net Income			Shares			Net Income			Shares
Continuing operations:
Net income	$	11,945			26,335		$	3,452			25,810		$	6,374			20,572
Less: Income attributable to restricted shares		(418	)		(922	)		(164	)		(1,224	)		(47	)		(164	)

Net income available to common shareholders		11,527			25,413			3,288			24,586			6,327			20,408
Basic earnings per share	$	0.45					$	0.13					$	0.31

Dilutive effect of restricted common stock					187						364						27

Diluted earnings per share	$	0.45			25,600		$	0.13			24,950		$	0.31			20,435

Discontinued operation:
Net income	$	—					$	—					$	362			20,572
Less: Income attributable to restricted shares		—						—						—			(164	)

Net income available to common shareholders														362			20,408
Basic and diluted earnings per share	$	—					$	—					$	0.02

Total:
Net income	$	11,945			26,335		$	3,452			25,810		$	6,736			20,572
Less: Income attributable to restricted shares		(418	)		(922	)		(164	)		(1,224	)		(47	)		(164	)

Net income available to common shareholders		11,527			25,413			3,288			24,586			6,689			20,408
Basic earnings per share	$	0.45					$	0.13					$	0.33

Dilutive effect of restricted common stock					187						364						27

Diluted earnings per share	$	0.45			25,600		$	0.13			24,950		$	0.33			20,435

For the years ended December 31, 2011, 2010 and 2009, options for 917,447, 655,406 and 68,128 weighted-average shares were excluded from the diluted earnings per share calculation, respectively, as their effect was antidilutive. For the year ended December 31, 2011, 1,160 weighted average restricted shares were excluded from the diluted earnings per share calculation, as their effect was antidilutive. For the years ended December 31, 2010 and 2009, there were no antidilutive restricted shares.

- Definition

The entire disclosure for earnings per share.

+ References+ Details

Archipelago Learning, Inc. 10-K