Papa Johns 2010 Annual Report Download - page 78

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71
2. Significant Accounting Policies (continued)
Earnings per Share
The calculations of basic earnings per common share and earnings per common share – assuming dilution
for the years ended December 26, 2010, December 27, 2009 and December 28, 2008 are as follows (in
thousands, except per share data):
2010 2009 2008
Basic earnings per common share:
Net income, net of noncontrolling interests
51,940
$
57,453
$
36,796
$
Weighted average shares outstanding 26,328 27,738 28,124
Basic earnings per common share 1.97$ 2.07$ 1.31$
Earnings per common share - assuming dilution:
Net income, net of noncontrolling interests
51,940
$
57,453
$
36,796
$
Weighted average shares outstanding 26,328 27,738 28,124
Dilutive effect of outstanding compensation awards 140 171 140
Diluted weighted average shares outstanding 26,468 27,909 28,264
Earnings per common share - assuming dilution 1.96$ 2.06$ 1.30$
Shares subject to options to purchase common stock with an exercise price greater than the average
market price for the year were not included in the computation of the dilutive effect of common stock
options because the effect would have been antidilutive. The weighted average number of shares subject
to antidilutive options was 1.5 million in 2010, 1.4 million in 2009 and 1.5 million in 2008.
Recent Accounting Pronouncements
Consolidation
Noncontrolling interests. The Consolidation topic of the ASC requires all entities to report
noncontrolling (minority) interests in subsidiaries as equity in the consolidated financial statements, but
separate from the equity of the parent company. The Consolidation topic further requires that
consolidated net income be reported at amounts attributable to the parent and the noncontrolling interest,
rather than expensing the income attributable to the noncontrolling interest holder. Additionally,
disclosures are required to clearly identify and distinguish between the interests of the parent company
and the interests of the noncontrolling owners, including a disclosure on the face of the consolidated
statements for income attributable to the noncontrolling interest holder.