You are asked to analyze Netflix, Inc.€™s EPS for the three years 2011, 2012, and 2013. Use the footnote disclosure to answer the following questions.
a. Netflix€™s net income on the income statement is the same as net income available for common stockholders in earnings per share. What does the fact that the two amounts are the same suggest?
b. What types of securities create the difference between Netflix€™s basic income and diluted income?
c. What types of securities create the difference between Netflix€™s basic shares and diluted shares?
d. Comment on the changes in net income, basic EPS, and diluted EPS over the three years.
e. What are the percentage differences in basic and diluted EPS and the weighted-average number of shares? Comment on changes over time.
f. If you were an analyst, what further information would you want to assess changes in EPS over time?

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Year ended December 31, 2012 in thousands, except per share data) 2013 2011 Basic eamings per share $112,403 $17,152 $226,126 Net income Shares used in computation: Weighted-average common shares outstanding58,198 Basic eamings per share 55,521 52.847 $1.99031 Diluted earnings per share $112,403 49 112,452 $17,152 195 17347 $226,126 17 226,143 Net income Convertible Notes interest expense, net of tax Numerator for diluted eanings per share Shares used in computation: Weighted-average common shares outstanding Convertible Notes shares Employee stock options Weighted-average number of shares 58,198 715 1,848 60,761 $1.85 55,521 2,331 1,052 58,904 $0.29 52.847 217 1,305 54,369 $4.16 Diluted earnings per share