Sirius XM Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

Net Income (Loss) Per Share

9 Months Ended

Oct. 31, 2013

9. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period.

Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, including stock options and restricted stock units, to the extent dilutive. Basic and diluted net loss per share were the same for the nine months ended October 31, 2012 and for the three and nine months ended October 31, 2013, as the inclusion of all potential common shares outstanding would have been anti-dilutive.

The following table sets forth the computation of historical basic and diluted net income (loss) per share:

	Three months ended					Nine months ended
	October 31,					October 31,
	2012		2013			2012			2013
	(in thousands except per share amounts)					(in thousands except per share amounts)
Numerator
Net income (loss)	$	2,052	$	(1,700	)	$	(23,591	)	$	(38,074	)

Denominator
Weighted-average common shares outstanding used in computing basic net income (loss) per share	169,391		184,676			167,423			177,913
Net income (loss) per share, basic	$	0.01	$	(0.01	)	$	(0.14	)	$	(0.21	)
Effect of dilutive options	20,722		—			—			—
Effect of dilutive restricted stock units	165		—			—			—
Weighted-average common shares outstanding used in computing diluted net income (loss) per share	190,278		184,676			167,423			177,913
Net income (loss) per share, diluted	$	0.01	$	(0.01	)	$	(0.14	)	$	(0.21	)

The following potential common shares outstanding were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive (in thousands):

	Three months ended		Nine months ended
	October 31,	October 31,	October 31,	October 31,
	2012	2013	2012	2013
	(in thousands)		(in thousands)
Options to purchase common stock	4,442	23,531	29,016	23,531
Restricted stock units	2,841	10,636	4,290	10,636
Total common stock equivalents	7,283	34,167	33,306	34,167

- Definition

The entire disclosure for earnings per share.

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