Sirius XM Holdings Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings per Share

Earnings per Share

12 Months Ended

Dec. 31, 2019

Basic net income per common share is calculated by dividing the income available to common stockholders by the weighted average common shares outstanding during each reporting period. Diluted net income per common share adjusts the weighted average number of common shares outstanding for the potential dilution that could occur if common stock equivalents (stock options, restricted stock units and convertible debt) were exercised or converted into common stock, calculated using the treasury stock method. We had no participating securities during the years ended December 31, 2019, 2018 and 2017.

Common stock equivalents of 66, 40, and 41 for the years ended December 31, 2019, 2018 and 2017, respectively, were excluded from the calculation of diluted net income per common share as the effect would have been anti-dilutive. We issued 392 shares of our common stock in connection with the Pandora Acquisition.



	For the Years Ended December 31,
	2019		2018		2017⁽¹⁾
Numerator:
Net Income available to common stockholders for basic net income per common share	$	914	$	1,176	$	648
Effect of interest on assumed conversions of convertible debt, net of tax	7		—		—
Net Income available to common stockholders for dilutive net income per common share	$	921	$	1,176	$	648
Denominator:
Weighted average common shares outstanding for basic net income per common share	4,501		4,462		4,638
Weighted average impact of assumed convertible notes	28		—		—
Weighted average impact of dilutive equity instruments	87		99		86
Weighted average shares for diluted net income per common share	4,616		4,561		4,724
Net income per common share:
Basic	$	0.20	$	0.26	$	0.14
Diluted	$	0.20	$	0.26	$	0.14

(1)

Our net income per basic and diluted share includes the impact of $185 in income tax expense, or a decrease of approximately $0.04 per share, due to the reduction in our net deferred tax asset balance as a result of the Tax Act.