SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2012

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

2.      SIGNIFICANT ACCOUNTING POLICIES

Income Taxes

The effective tax rate for each of the periods reported differs from the U.S. statutory rate due primarily to favorable foreign permanent differences, variation in contribution to consolidated pre-tax income from each jurisdiction for the respective periods and differences between the U.S. and foreign tax rates (which range from 19% to 33%) on earnings that have been permanently reinvested.

Earnings Per Share

Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock awards (“RSAs”), are considered participating securities for purposes of calculating earnings per share (“EPS”) and require the use of the two class method for calculating EPS.  Under this method, a portion of net income is allocated to these participating securities and therefore is excluded from the calculation of EPS allocated to common stock, as shown in the table below.

Computation and reconciliation of earnings per common share are as follows:

	For the Three Months Ended						For the Three Months Ended
	June 30, 2012						June 30, 2011
	Income			Shares	EPS		Income			Shares	EPS
Basic earnings per share:
Net income attributable to DMC	$	2,653					$	3,868
Less income allocated to RSAs	(60		)				(83		)
Net income allocated to common stock for EPS calculation	$	2,593		13,205,620	$	0.20	$	3,785		13,060,456	$	0.29
Adjust shares for dilutives:
Stock-based compensation plans				4,112						10,080
Diluted earnings per share:
Net income attributable to DMC	$	2,653					$	3,868
Less income allocated to RSAs	(60		)				(83		)
Net income allocated to common stock for EPS calculation	$	2,593		13,209,732	$	0.20	$	3,785		13,070,536	$	0.29

	For the Six Months Ended						For the Six Months Ended
	June 30, 2012						June 30, 2011
	Income			Shares	EPS		Income			Shares	EPS
Basic earnings per share:
Net income attributable to DMC	$	5,079					$	4,619
Less income allocated to RSAs	(111		)				(100		)
Net income allocated to common stock for EPS calculation	$	4,968		13,203,310	$	0.38	$	4,519		13,059,782	$	0.35
Adjust shares for dilutives:
Stock-based compensation plans				4,252						10,052
Diluted earnings per share:
Net income attributable to DMC	$	5,079					$	4,619
Less income allocated to RSAs	(111		)				(100		)
Net income allocated to common stock for EPS calculation	$	4,968		13,207,562	$	0.38	$	4,519		13,069,834	$	0.35

Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting standard which requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  The amendment is to be applied retrospectively and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.  Other than revised disclosures, this update did not have a material impact on our financial statements.