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Note 5 - Earnings Per Share
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Earnings Per Share [Text Block]
5.
Earnings
Per Shar
e
 
On
November 20, 2017,
MDC’s board of directors approved an
8%
stock dividend that was distributed on
December 19, 2017
to shareholders of record on
December 5, 2017.
Additionally, on
November 21, 2016,
MDC’s board of directors approved a
5%
stock dividend that was distributed on
December 20, 2016
to shareholders of record on
December 6, 2016.
In accordance with ASC
260,
basic and diluted earnings per share amounts, weighted-average shares outstanding, and dividends declared per share have been restated for all appropriate periods presented to reflect the effect of these stock dividends. The following table shows our basic and diluted EPS calculations:
 
   
Year Ended December 31,
  
   
2018
    
2017
    
2016
  
   
(Dollars in thousands, except per share amounts)
  
Numerator
  
 
 
 
  
 
 
 
  
 
 
 
Net income
   $
210,780
     $
141,835
     $
103,211
  
Less: distributed earnings allocated to participating securities
    
(413
 )    
(257
 )    
(163
 )
Less: undistributed earnings allocated to participating securities
    
(846
 )    
(441
 )    
(179
 )
Net income attributable to common stockholders (numerator for basic earnings per share)
    
209,521
      
141,137
      
102,869
  
Add back: undistributed earnings allocated to participating securities
    
846
      
441
      
179
  
Less: undistributed earnings reallocated to participating securities
    
(833
 )    
(431
 )    
(179
 )
Numerator for diluted earnings per share under two class method
   $
209,534
     $
141,147
     $
102,869
  
                         
Denominator
  
 
 
 
  
 
 
 
  
 
 
 
Weighted-average common shares outstanding
    
56,084,373
      
55,663,908
      
55,389,898
  
Add: dilutive effect of stock options
    
911,181
      
1,237,553
      
173,022
  
Add: dilutive effect of performance stock units
    
255,150
      
-
      
-
  
Denominator for diluted earnings per share under two class method
    
57,250,704
      
56,901,461
      
55,562,920
  
                         
Basic Earnings Per Common Share
   $
3.74
     $
2.54
     $
1.86
  
Diluted Earnings Per Common Share
   $
3.66
     $
2.48
     $
1.85
  
 
Diluted EPS for the years ended
December 31, 2018,
2017
and
2016
excluded options to purchase approximately
0.7
million,
0.8
million and
5.6
million shares, respectively, of common stock because the effect of their inclusion would be anti-dilutive.