Classmates.com 2007 Annual Report Download - page 122

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UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. NET INCOME PER SHARE
The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts):
The diluted per share computations exclude stock options which are antidilutive. The number of antidilutive shares at December 31, 2007,
2006 and 2005 was 2.4 million, 3.0 million and 6.8 million, respectively.
9. EMPLOYEE BENEFIT PLANS
The Company has a savings plan (the "Savings Plan") that qualifies as a defined contribution plan under Section 401(k) of the Code. Under
the Savings Plan, participating employees may defer a percentage (not to exceed 40%) of their eligible pre-tax earnings up to the Internal
Revenue Service annual contribution limit. All full-time employees on the payroll of the Company are eligible to participate in the Savings Plan.
The Company matches 25% of employees' contributions, up to Savings Plan limits. The Company recognized expenses of approximately
$0.9 million, $0.8 million and
F-40
Year Ended December 31,
2007
2006
2005
Numerator:
Income before cumulative effect of accounting change
$
57,777
$
41,231
$
47,127
Cumulative effect of accounting change, net of tax
—
1,041
—
Net income
$
57,777
$
42,272
$
47,127
Denominator:
Weighted
-
average common shares
—
basic
67,178
64,476
61,641
Less: weighted
-
average common shares subject to
repurchase rights
(410
)
(475
)
(506
)
Shares used to calculate basic net income per share
66,768
64,001
61,135
Add: Dilutive effect of stock options, restricted stock
and employee stock purchase plan shares
2,519
2,268
2,680
Shares used to calculate diluted net income per share
69,287
66,269
63,815
Basic net income per share:
Income before cumulative effect of accounting change
$
0.87
$
0.64
$
0.77
Cumulative effect of accounting change, net of tax
—
0.02
—
Basic net income per share
$
0.87
$
0.66
$
0.77
Diluted net income per share:
Income before cumulative effect of accounting change
$
0.83
$
0.62
$
0.74
Cumulative effect of accounting change, net of tax
—
0.02
—
Diluted net income per share
$
0.83
$
0.64
$
0.74