Mercury Insurance 2010 Annual Report Download - page 105

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MERCURY GENERAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
16. Earnings Per Share
A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculation
for income (loss) from operations is presented below:
2010 2009 2008
Income
(Numerator)
Weighted
Shares
(Denominator)
Per-Share
Amount
Income
(Numerator)
Weighted
Shares
(Denominator)
Per-Share
Amount
Loss
(Numerator)
Weighted
Shares
(Denominator)
Per-Share
Amount
(Amounts in thousands, except per share data)
Basic EPS
Income (Loss)
available to
common
stockholders .... $152,198 54,792 $2.78 $403,072 54,770 $7.36 $(242,119) 54,744 $(4.42)
Effect of dilutive
securities:
Options .......... 0 34 0 322 0 173
Diluted EPS
Income (Loss)
available to
common
stockholders after
assumed
conversions .... $152,198 54,826 $2.78 $403,072 55,092 $7.32 $(242,119) 54,917 $(4.42)
The anti-dilutive impact of incremental shares is excluded from loss position in 2008 in accordance with
GAAP.
The diluted weighted shares exclude incremental shares of 448,000, 685,000, and 305,000 for 2010, 2009,
and 2008, respectively. These shares are excluded due to their anti-dilutive effect.
17. Commitments and Contingencies
Operating Leases
The Company is obligated under various non-cancellable lease agreements providing for office space and
equipment rental that expire at various dates through the year 2019. For leases that contain predetermined
escalations of the minimum rentals, the Company recognizes the related rent expense on a straight-line basis and
records the difference between the recognized rental expense and amounts payable under the leases as deferred
rent in other liabilities. This liability amounted to approximately $1,159,000 and $1,452,000 at December 31,
2010 and 2009, respectively. Total rent expense under these lease agreements was $17,076,000, $17,529,000, and
$12,002,000 for 2010, 2009, and 2008, respectively.
The following table presents future minimum commitments for operating leases as of December 31, 2010:
Year Ending December 31, Operating Leases
(Amounts in thousands)
2011 ................................................... $14,902
2012 ................................................... 12,692
2013 ................................................... 7,219
2014 ................................................... 3,303
2015 ................................................... 1,581
Thereafter ............................................... 2,140
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