Shutterfly 2012 Annual Report Download - page 71

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dilutive. Potential common shares include restricted stock units and incremental shares of common stock
issuable upon the exercise of stock options.
Year ended December 31,
2012 2011 2010
(in thousands, except per share amounts)
Net income per share:
Numerator
Net income ..................................... $ 22,998 $ 14,048 $ 17,127
Denominator
Denominator for basic net income per share
Weighted-average common shares outstanding .......... 35,826 32,788 27,025
Dilutive effect of stock options and restricted awards ....... 1,606 2,219 2,224
Denominator for diluted net income per share .......... 37,432 35,007 29,249
Net income per share
Basic ........................................ $ 0.64 $ 0.43 $ 0.63
Diluted ....................................... $ 0.61 $ 0.40 $ 0.59
The following weighted-average outstanding stock options and restricted stock units were excluded
from the computation of diluted net income per common share for the periods presented because
including them would have had an anti-dilutive effect (in thousands):
Year ended December 31,
2012 2011 2010
Stock options and restricted stock units ................. 748 278 830
Comprehensive Income
Comprehensive income is defined as the change in equity of a business enterprise during a period from
transactions and other events and circumstances from non-owner sources. Comprehensive income is
composed of net income. Accordingly, the accompanying consolidated statements of income reflect all
changes in comprehensive income.
Segment Reporting
The Company reports as one operating segment with the Chief Executive Officer (‘‘CEO’’) being the
Company’s chief operating decision maker. The Company’s CEO reviews financial information presented
on a consolidated basis for purposes of allocating resources and evaluating financial performance. The
Company has a single reporting unit and there are no segment managers who are held accountable for
operations, operating results or components below the consolidated unit level.
Net revenues by Consumer and Enterprise categories were as follows:
Year ended December 31,
2012 2011 2010
(in thousands)
Net revenues
Consumer ..................................... $ 613,445 $ 459,725 $ 302,599
Enterprise ..................................... 27,179 13,545 5,108
Total net revenues ................................ $ 640,624 $ 473,270 $ 307,707
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