Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.7.0.1
Earnings Per Share
3 Months Ended
Mar. 31, 2017
Earnings Per Share
3. Earnings Per Share

The Company considers its unvested restricted stock awards, which contain non-forfeitable rights to dividends, participating securities, and includes such participating securities in its computation of earnings per share pursuant to the two-class method. Basic earnings per share for the two classes of stock (common stock and unvested restricted stock) is calculated by dividing net income by the weighted average number of shares of common stock and unvested restricted stock outstanding during the reporting period. Diluted earnings per share is calculated using the weighted average number of shares of common stock plus the potentially dilutive effect of common equivalent shares outstanding determined under both the two class method and the treasury stock method.

Effective January 1, 2017, the Company adopted ASU 2016-09 on a prospective basis. In accordance with the amendments in ASU 2016-09, the Company’s diluted earnings per share calculation for the three months ended March 31, 2017 excludes the estimated income tax benefits and deficiencies in the application of the treasury stock method. Excess income tax benefits or deficiencies related to share based awards are recognized as discrete items in the income statement during the period in which they occur. See Note 7 for a discussion of share based awards and related income tax benefits recognized during the three months ended March 31, 2017 and 2016.

The following table presents computations of basic and diluted earnings per share under the two-class method:

 

     Three Months Ended
March 31,
 
     2017      2016  

Numerator:

     

Net income attributable to Cinemark Holdings, Inc.

   $ 79,728      $ 58,525  

Earnings allocated to participating share-based awards (1)

     (382      (244
  

 

 

    

 

 

 

Net income attributable to common stockholders

   $ 79,346      $ 58,281  
  

 

 

    

 

 

 

Denominator (shares in thousands):

     

Basic weighted average common stock outstanding

     115,629        115,245  

Common equivalent shares for restricted stock units

     286        282  
  

 

 

    

 

 

 

Diluted

     115,915        115,527  
  

 

 

    

 

 

 

Basic earnings per share attributable to common stockholders

   $ 0.68      $ 0.50  
  

 

 

    

 

 

 

Diluted earnings per share attributable to common stockholders

   $ 0.68      $ 0.50  
  

 

 

    

 

 

 

 

(1) For the three months ended March 31, 2017 and 2016, a weighted average of approximately 559 and 485 shares of unvested restricted stock, respectively, were considered participating securities.