O'Reilly Auto Parts 2015 Annual Report Download - page 73

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FORM 10-K
NOTE 13 – EARNINGS PER SHARE
The following table illustrates the computation of basic and diluted earnings per share for the years ended December 31, 2015, 2014 and
2013 (in thousands, except per share data):
For the Year Ended
December 31,
2015 2014 2013
Numerator (basic and diluted):
Net income $ 931,216 $ 778,182 $ 670,292
Denominator:
Weighted-average common shares outstanding – basic 99,965 104,262 109,244
Effect of stock options (1) 1,549 1,779 1,857
Weighted-average common shares outstanding – assuming dilution 101,514 106,041 111,101
Earnings per share:
Earnings per share-basic $ 9.32 $ 7.46 $ 6.14
Earnings per share-assuming dilution $ 9.17 $ 7.34 $ 6.03
Antidilutive potential common shares not included in the calculation of
diluted earnings per share:
Stock options (1) 245 363 498
Weighted-average exercise price per share of antidilutive stock options (1) $ 216.29 $ 151.65 $ 103.80
(1) See Note 9 for further information concerning the terms of the Company's share-based compensation plans.
Subsequent to the end of the year and through February 26, 2016, the Company repurchased 0.8 million shares of its common stock, at
an average price of $247.61, for a total investment of $201.6 million.
NOTE 14 – LEGAL MATTERS
As previously reported, the Company received a subpoena from the District Attorney of the County of Alameda, along with other
environmental prosecutorial offices in the state of California, seeking documents and information related to the handling, storage and
disposal of hazardous waste. The Company expects the District Attorney will seek injunctive and monetary relief. Management has an
ongoing and open dialogue with these agencies regarding this matter and is cooperating fully with the request; however, at this time a
prediction of the ultimate outcome of these efforts cannot be determined although the Company has accrued all amounts that it believes
to be probable and reasonably estimable and does not believe that the ultimate resolution of this matter will have a material adverse effect
on its consolidated financial position, results of operations or cash flows.
As previously reported, on June 18, 2015, a jury in Greene County, Missouri returned an unfavorable verdict in a litigated contract dispute
in the matter Meridian Creative Alliance vs. O'Reilly Automotive Stores, Inc. et. al. in the amount of $12.5 million. The Company
strongly believes that the verdict was unjust and unsupported by the law and the underlying facts and, further, that there are several
potential bases for reversal on appeal. The Company is vigorously challenging the verdict in the Court of Appeals. As of December 31,
2015, the Company had reserved $18.8 million with respect to this matter.