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Earnings Per Share
 6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share EARNINGS PER SHARE
The Company’s unvested restricted stock awards contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The diluted earnings per share computed under the two-class method is lower than the diluted earnings per share computed under the treasury stock method, resulting in the presentation of the lower amount in diluted earnings per share. The computation of the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator.
The following reflects the Company’s net income and share data used in the basic and diluted earnings per share computations using the two-class method:
 
Three Months Ended 
 June 30
 
Six Months Ended 
 June 30
(in thousands, except per share amounts)
2019
 
2018
 
2019
 
2018
Numerator:
 
 
 
 
 
 
 
Numerator for basic earnings per share:
  
 
  
 
  
 
  
Net income attributable to Graham Holdings Company common stockholders
$
57,081

 
$
46,566

 
$
138,829

 
$
89,457

Less: Dividends paid-common stock outstanding and unvested restricted shares
(7,388
)
 
(6,948
)
 
(22,167
)
 
(21,587
)
Undistributed earnings
49,693

 
39,618

 
116,662

 
67,870

Percent allocated to common stockholders
99.43
%
 
99.33
%
 
99.43
%
 
99.33
%
 
49,410

 
39,352

 
115,997

 
67,416

Add: Dividends paid-common stock outstanding
7,346

 
6,901

 
22,041

 
21,444

Numerator for basic earnings per share
$
56,756

 
$
46,253

 
$
138,038

 
$
88,860

Add: Additional undistributed earnings due to dilutive stock options
2

 
2

 
5

 
3

Numerator for diluted earnings per share
$
56,758

 
$
46,255

 
$
138,043

 
$
88,863

Denominator:
  

 
  

 
 
 
 
Denominator for basic earnings per share:


 


 


 


Weighted average shares outstanding
5,285

 
5,325

 
5,285

 
5,380

Add: Effect of dilutive stock options
44

 
37

 
43

 
37

Denominator for diluted earnings per share
5,329

 
5,362

 
5,328

 
5,417

Graham Holdings Company Common Stockholders:
  
 
  
 
  
 
  
Basic earnings per share
$
10.74

 
$
8.69

 
$
26.12

 
$
16.52

Diluted earnings per share
$
10.65

 
$
8.63

 
$
25.91

 
$
16.40


Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method:
 
Three Months Ended 
 June 30
 
Six Months Ended 
 June 30
(in thousands)
2019
 
2018
 
2019
 
2018
Weighted average restricted stock
12

 
21

 
11

 
24


The diluted earnings per share amounts for the three and six months ended June 30, 2019 and June 30, 2018 exclude the effects of 104,000 stock options outstanding, as their inclusion would have been antidilutive due to a market condition. The diluted earnings per share amounts for the three and six months ended June 30, 2018 exclude the effects of 5,250 restricted stock awards as their inclusion would have been antidilutive due to a performance condition.
In the three and six months ended June 30, 2019, the Company declared regular dividends totaling $1.39 and $4.17 per common share, respectively. In the three and six months ended June 30, 2018, the Company declared regular dividends totaling $1.33 and $3.99 per common share, respectively.