Net Income Available to Common Stockholders
 12 Months Ended
Dec. 31, 2013
Net Income Available to Common Stockholders  
Net Income Available to Common Stockholders [Text Block]
Net Income Available to Common Stockholders
Basic and diluted net income per share available to common stockholders are presented in conformity with the two-class method required for participating securities. Upon the Company’s initial public offering in May 2011, all shares of the Company’s redeemable convertible preferred stock were converted to common stock. Prior to the initial public offering, holders of shares of Series A, Series A-1, Series B and Series C redeemable convertible preferred stock were each entitled to receive 8% per annum non-cumulative dividends, payable prior and in preference to any dividends on common stock. In addition, the holders of restricted common stock are entitled to receive non-forfeitable dividends if declared.

Under the two-class method, basic net income per share available to common stockholders is computed by dividing the net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Net income available to common stockholders is determined by allocating undistributed earnings, calculated as net income less current period shares of redeemable convertible preferred stock non-cumulative dividends, among common stockholders, restricted stockholders and redeemable convertible preferred stockholders. Diluted net income per share available to common stockholders is computed by using the weighted-average number of shares of common stock outstanding, including potential dilutive shares of common stock, assuming the dilutive effect of outstanding stock options and restricted stock units using the treasury stock method.

The following table presents the calculation of basic and diluted net income per share available to common stockholders (in thousands, except for per share data):
 
Year Ended December 31,
 
2013
 
2012
 
2011
Net income available to common stockholders:
 
 
 
 
 
Numerator:
 
 
 
 
 
Basic:
 
 
 
 
 
Net income
$
40,783

 
$
38,957

 
$
29,132

Allocation of net income to participating stockholders
(20
)
 
(502
)
 
(9,435
)
Net income available to common stockholders – basic
$
40,763

 
$
38,455

 
$
19,697

Diluted:
 
 
 
 
 
Net income available to common stockholders – basic
$
40,763

 
$
38,455

 
$
19,697

Undistributed earnings re-allocated to common stockholders
—

 
19

 
613

Net income available to common stockholders – diluted
$
40,763

 
$
38,474

 
$
20,310

Denominator:
 
 
 
 
 
Basic shares:
 
 
 
 
 
Weighted-average shares used in computing basic net income available to common stockholders
51,956

 
49,766

 
32,032

Diluted shares:
 
 
 
 
 
Weighted-average shares used in computing basic net income available to common stockholders
51,956

 
49,766

 
32,032

Dilutive effect of stock options and restricted stock units using treasury-stock method
1,696

 
2,036

 
3,888

Weighted-average shares used in computing diluted net income available to common stockholders
53,652

 
51,802

 
35,920

Net income per common share available to common stockholders:
 
 
 
 
 
Basic
$
0.78

 
$
0.77

 
$
0.61

Diluted
$
0.76

 
$
0.74

 
$
0.57



For the years ended December 31, 2013, 2012 and 2011 the following securities were not included in the calculation of diluted shares outstanding, as the effect would have been anti-dilutive (in thousands):
 
Year Ended December 31,
 
2013
 
2012
 
2011
Weighted-average:
 
 
 
 
 
Shares of redeemable convertible preferred stock
—

 
—

 
9,270

Stock options outstanding
1,215

 
2,672

 
520

Restricted stock units outstanding
127

 
395

 
76

Shares of common stock subject to repurchase
25

 
649

 
3,114