Mercury Insurance 2012 Annual Report Download - page 98

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77
2012 2011 2010
Shares
Weighted-
Average Fair
Value per Share Shares
Weighted-
Average Fair
Value per Share Shares
Weighted-
Average Fair
Value per Share
Outstanding at January 1 135,000 $ 40.70 55,000 $ 41.40 0 $ 0.00
Granted 92,000 44.01 80,000 40.22 55,000 $ 41.40
Vested 0 0 0
Forfeited/Canceled (3,000) 0 0
Expired (55,000) 0 0
Outstanding at December 31 169,000 $ 42.22 135,000 $ 40.70 $ 55,000 $ 41.40
15. Earnings Per Share
A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculation for income
from operations is presented below:
2012 2011 2010
Income
(Numerator)
Weighted
Shares
(Denominator)
Per-
Share
Amount
Income
(Numerator)
Weighted
Shares
(Denominator)
Per-
Share
Amount
Income
(Numerator)
Weighted
Shares
(Denominator)
Per-
Share
Amount
(Amounts and numbers in thousands, except per-share data)
Basic EPS
Income available
to common
stockholders $ 116,911 54,899 $ 2.13 $ 191,164 54,825 $ 3.49 $ 152,198 54,792 $ 2.78
Effect of dilutive
securities:
Options 0 23 0 20 0 34
Diluted EPS
Income available
to common
stockholders after
assumed
conversions $ 116,911 54,922 $ 2.13 $ 191,164 54,845 $ 3.49 $ 152,198 54,826 $ 2.78
Incremental shares of 415,000, 504,000, and 448,000 for 2012, 2011, and 2010, respectively, were excluded from the
computation of the diluted earnings per common shares due to their anti-dilutive effect. Potentially dilutive securities representing
approximately 80,000, 103,000, and 93,000 shares of common stock for 2012, 2011, and 2010, respectively, were also excluded
from the computation of diluted earnings per common share because their effect would have been anti-dilutive.
16. Commitments and Contingencies
Operating Leases
The Company is obligated under various non-cancellable lease agreements providing for office space, automobiles, and
office equipment 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
$2.2 million and $1.6 million at December 31, 2012 and 2011, respectively. Total rent expense under these lease agreements was
$17.7 million, $18.2 million, and $17.1 million for 2012, 2011, and 2010, respectively.
The following table presents future minimum commitments for operating leases as of December 31, 2012:
Year Ending December 31, Operating Leases
(Amounts in thousands)
2013 $ 14,224
2014 10,069
2015 6,985
2016 5,658
2017 3,843
Thereafter 945