Annual report pursuant to Section 13 and 15(d)

EARNINGS PER SHARE

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EARNINGS PER SHARE
12 Months Ended
Dec. 31, 2012
EARNINGS PER SHARE
3. EARNINGS PER SHARE

The Company considers its unvested share based payment 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 and unvested restricted stock plus the potentially dilutive effect of common equivalent shares outstanding determined under both the two class method and the treasury stock method.

 

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

 

     Year ended December 31,  
     2010     2011     2012  

Numerator:

      

Net income attributable to Cinemark Holdings, Inc.

   $ 146,120      $ 130,557      $ 168,949   

Earnings allocated to participating share-based awards (1)

     (1,399     (1,458     (2,061
  

 

 

   

 

 

   

 

 

 

Net income attributable to common stockholders

   $ 144,721      $ 129,099      $ 166,888   
  

 

 

   

 

 

   

 

 

 

Denominator (shares in thousands):

      

Basic weighted average common stock outstanding

     111,565        112,736        113,216   

Common equivalent shares for stock options

     213        41        36   

Common equivalent shares for restricted stock units

     373        447        572   
  

 

 

   

 

 

   

 

 

 

Diluted

     112,151        113,224        113,824   
  

 

 

   

 

 

   

 

 

 

Basic earnings per share attributable to common stockholders

   $ 1.30      $ 1.15      $ 1.47   
  

 

 

   

 

 

   

 

 

 

Diluted earnings per share attributable to common stockholders

   $ 1.29      $ 1.14      $ 1.47   
  

 

 

   

 

 

   

 

 

 

 

(1) 

For the years ended December 31, 2010, 2011 and 2012, a weighted average of approximately 1,076 shares, 1,274 shares and 1,406 shares of unvested restricted stock, respectively, are considered participating securities.