Harley Davidson 2012 Annual Report Download - page 98

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98
The fair value of RSUs is determined based on the market price of the Company’s shares on the grant date. The following
table summarizes the RSU transactions for the year ended December 31, 2012 (in thousands except for per share amounts):
Restricted
Stock Unit
Weighted-Average
Grant Date
Fair Value
Per Share
Nonvested, beginning of period 245 $ 47
Granted 80 $ 48
Vested (81) $ 46
Forfeited (2) $ 48
Nonvested, end of period 242 $ 47
19. Earnings Per Share
The Company has a share-based compensation plan under which employees may be granted share-based awards
including shares of restricted stock and restricted stock units (RSUs). Non-forfeitable dividends are paid on unvested shares of
restricted stock and non-forfeitable dividend equivalents are paid on unvested RSUs. As such, shares of restricted stock and
RSUs are considered participating securities under the two-class method of calculating earnings per share as described in ASC
Topic 260, “Earnings per Share.” The two-class method of calculating earnings per share did not have a material impact on the
Company’s earnings per share calculation as of December 31, 2012, 2011 and 2010.
The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the
years ended December 31 (in thousands except per share amounts):
2012 2011 2010
Numerator:
Income from continuing operations used in computing basic and
diluted earnings per share $ 623,925 $ 548,078 $ 259,669
Denominator:
Denominator for basic earnings per share-weighted-average
common shares 227,119 232,889 233,312
Effect of dilutive securities – employee stock compensation plan 2,110 2,029 1,475
Denominator for diluted earnings per share- adjusted weighted-
average shares outstanding 229,229 234,918 234,787
Earnings per common share from continuing operations:
Basic $ 2.75 $ 2.35 $ 1.11
Diluted $ 2.72 $ 2.33 $ 1.11
Options to purchase 2.1 million, 3.8 million and 4.2 million weighted-average shares of common stock outstanding
during 2012, 2011 and 2010, respectively, were not included in the Company’s computation of dilutive securities because the
exercise price was greater than the market price and therefore the effect would have been anti-dilutive.
20. Business Segments and Geographic Information
Business Segments:
The Company operates in two business segments: Motorcycles and Financial Services. The Company’s reportable
segments are strategic business units that offer different products and services. They are managed separately based on the
fundamental differences in their operations.
The Motorcycles segment designs, manufactures and sells at wholesale heavyweight (engine displacement of 651+cc)
cruiser and touring motorcycles as well as a line of motorcycle parts, accessories, general merchandise and related services.
The Financial Services segment provides wholesale and retail financing and provides insurance and insurance-related
programs primarily to Harley-Davidson dealers and their retail customers. HDFS conducts business principally in the United
States and Canada.