Dunkin' Donuts 2012 Annual Report Download - page 92

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-82-
amount of the Class L shares at the date of conversion, which occurred immediately prior to the Company’s initial public
offering. As the carrying amount of the Class L shares was equal to the Class L preference amount, the excess fair value of
the consideration transferred to the Class L shareholders was equal to the fair value of the additional 0.2189 of a share of
common stock into which each Class L share converted (“Class L base share”), which totaled $95.1 million, calculated as
follows:
Class L shares outstanding immediately prior to the initial public offering 22,866,379
Number of common shares received for each Class L share 0.2189
Common stock received by Class L shareholders, excluding preferential distribution 5,005,775
Common stock fair value per share (initial public offering price per share) $ 19.00
Fair value of Class L base shares (in thousands) $ 95,110
(2) Net income allocated to common shareholders for the fiscal year 2012 excludes $132 thousand and $111 thousand for
basic and diluted earnings per share, respectively, that is allocated to participating securities. Participating securities consist
of unvested (restricted) shares that contain a nonforfeitable right to participate in dividends. No net loss was allocated to
participating securities for fiscal years 2011 and 2010 as the participating securities do not participate in losses.
(3) The weighted average number of Class L shares in the Class L earnings per share calculation in fiscal years 2011 and 2010
represents the weighted average from the beginning of the period up through the date of conversion of the Class L shares
into common shares. There were no Class L common stock equivalents outstanding during fiscal years 2011 and 2010.
(4) The weighted average number of common shares in the common diluted earnings per share calculation for fiscal year 2012
includes the dilutive effect of 1,989,281 restricted shares and stock options, using the treasury stock method. The weighted
average number of common shares in the common diluted earnings per share calculation for fiscal years 2011 and 2010
excludes all restricted stock and stock options outstanding, as they would be antidilutive. The weighted average number of
common shares in the common diluted earnings per share calculation for all periods excludes all performance-based
restricted stock and stock options outstanding for which the performance criteria were not yet met as of the fiscal period
end. As of December 29, 2012, there were no common restricted stock awards that were performance-based and for which
the performance criteria were not yet met. Additionally, the weighted average number of common shares in the common
diluted earnings per share calculation for all periods excludes stock options with an exercise price greater than the average
market price for the period ("underwater stock options"). As of December 29, 2012, there were approximately 317,000
underwater stock options that were excluded from the computation of common diluted earnings per share.
(16) Income taxes
Income before income taxes was attributed to domestic and foreign taxing jurisdictions as follows (in thousands):
Fiscal year ended
December 29,
2012
December 31,
2011
December 25,
2010
Domestic operations $ 172,576 70,034 2,270
Foreign operations (10,575)(3,221) 17,176
Income before income taxes $ 162,001 66,813 19,446