MoneyGram 2004 Annual Report Download - page 74

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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 13. Earnings Per Share
Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Since our
common stock was not issued until June 30, 2004, the weighted average number of common shares outstanding during each period presented equals Viad's
historical weighted average number of common shares outstanding through that date.
The following table presents the calculation of basic and diluted net income per share for the year ended December 31:
2004 2003 2002
(Dollars and shares in thousands,
except per share data)
Income from continuing operations $ 65,129 $ 75,686 $ 74,764
Preferred stock dividend — (572) (1,141)
Income from continuing operations available to common stockholders 65,129 75,114 73,623
Income from discontinued operations, net of tax 21,283 38,216 (16,878)
Net income available to common stockholders $ 86,412 $ 113,330 $ 56,745
Average outstanding common shares 86,916 86,223 86,178
Additional dilutive shares related to stock-based compensation 414 396 538
Average outstanding and potentially dilutive common shares 87,330 86,619 86,716
Basic earnings per share:
Basic earnings per share from continuing operations $ 0.75 $ 0.87 $ 0.87
Basic earnings per share from discontinued operations, net of tax 0.24 0.44 (0.21)
Basic earnings per share $ 0.99 $ 1.31 $ 0.66
Diluted earnings per share:
Diluted earnings per share from continuing operations $ 0.75 $ 0.87 $ 0.86
Diluted earnings per share from discontinued operations, net of tax 0.24 0.44 (0.21)
Diluted earnings per share $ 0.99 $ 1.31 $ 0.65
Options to purchase 2,778,299, 3,432,258 and 3,590,806 shares of common stock were outstanding at December 31, 2004, 2003 and 2002, respectively, but
were not included in the computation of diluted earnings per share because the effect would be antidilutive.
Note 14. Pensions and Other Benefits
Pension Benefits — Prior to the Distribution, MoneyGram was a participating employer in the Viad Companies Retirement Income Plan (the "Plan") of which
the plan administrator was Viad. At the time of the Distribution, the Company assumed sponsorship of the Plan, which is a noncontributory defined benefit
pension plan covering all employees who meet certain age and length-of-service requirements. Viad retained the pension liability for a portion of the
employees in its Exhibitgroup/ Giltspur subsidiary and one sold business, which represented eight percent of Viad's benefit obligation at December 31, 2003.
Effective December 31, 2003, benefits under the Plan ceased accruing with no change in benefits earned through this date. A curtailment gain of $3.8 million
was recorded in "Compensation and benefits" in the F-30