Google 2007 Annual Report Download - page 93

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Google Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table sets forth the computation of basic and diluted net income per share of Class A and Class B
common stock (in thousands, except per share amounts):
Year Ended December 31,
2005 2006 2007
Class A Class B Class A Class B Class A Class B
Basic net income per share:
Numerator:
Allocation of undistributed earnings ....... $ 858,184 $607,213 $2,197,851 $879,595 $3,131,292 $1,072,428
Denominator:
Weighted average common shares
outstanding ........................ 165,513 117,109 216,589 86,681 232,131 79,421
Less: Weighted average unvested common
shares subject to repurchase or
cancellation ........................ (3,970) (2,808) (1,333) (534) (616) (130)
Number of shares used in per share
computations .................... 161,543 114,301 215,256 86,147 231,515 79,291
Basic net income per share ................... $ 5.31 $ 5.31 $ 10.21 $ 10.21 $ 13.53 $ 13.53
Diluted net income per share:
Numerator:
Allocation of undistributed earnings for
basic computation ................... $ 858,184 $607,213 $2,197,851 $879,595 $3,131,292 $1,072,428
Reallocation of undistributed earnings as a
result of conversion of Class B to Class A
shares ............................. 607,213 — 879,595 — 1,072,428 —
Reallocation of undistributed earnings to
Class B shares ...................... — (1,823) — (3,134) — (7,732)
Allocation of undistributed earnings ....... $1,465,397 $605,390 $3,077,446 $876,461 $4,203,720 $1,064,696
Denominator:
Number of shares used in basic
computation ....................... 161,543 114,301 215,256 86,147 231,515 79,291
Weighted average effect of dilutive securities
Add:
Conversion of Class B to Class A
common shares outstanding .... 114,301 — 86,147 — 79,291 —
Unvested common shares subject to
repurchase or cancellation ...... 6,778 2,808 1,867 534 746 130
Employee stock options .......... 8,899 3,471 5,916 1,479 3,690 667
Restricted shares and restricted
stock units ................... 353 — 362 — 968 —
Number of shares used in per
share computations ....... 291,874 120,580 309,548 88,160 316,210 80,088
Diluted net income per share ................. $ 5.02 $ 5.02 $ 9.94 $ 9.94 $ 13.29 $ 13.29
The net income per share amounts are the same for Class A and Class B because the holders of each class are legally
entitled to equal per share distributions whether through dividends or in liquidation.
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