Quarterly report pursuant to Section 13 or 15(d)

Earnings per Share

v2.4.0.6
Earnings per Share
 3 Months Ended
Mar. 31, 2013
Earnings Per Share [Abstract]  
Earnings per Share
Earnings per Share
We utilize the two-class method in calculating basic net income per common share, as our Series B Preferred Stock was considered to be participating securities. Basic net income per common share is calculated by dividing 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 (convertible debt, preferred stock, warrants, stock options and restricted stock units) were exercised or converted into common stock, calculated using the treasury stock method.
On January 18, 2013, Liberty Media converted its remaining 6,250,100 outstanding shares of the Series B Preferred Stock into 1,293,509,076 shares of common stock. Therefore, we had no participating securities as of March 31, 2013 and the converted shares were reflected in our basic net income per common share calculation.
Common stock equivalents of approximately 349,681,000 and 443,764,000 for the three months ended March 31, 2013 and 2012, respectively, were excluded from the calculation of diluted net income per common share as the effect would have been anti-dilutive.
 
For the Three Months Ended March 31,
(in thousands, except per share data)
2013
 
2012
Numerator:
 
 
 
Net income
$
123,602

  
$
107,774

Less:
 
 
 
Allocation of undistributed income to Series B Preferred Stock
(4,905
)
 
(43,876
)
Net income available to common stockholders for basic net income per common share
118,697

 
63,898

Add back:
 
 
 
Allocation of undistributed income to Series B Preferred Stock
4,905

 
43,876

Net income available to common stockholders for diluted net income per common share
$
123,602

 
$
107,774

Denominator:
 
 
 
Weighted average common shares outstanding for basic net income per common share
6,259,803

  
3,767,443

Weighted average impact of assumed Series B Preferred Stock conversion
258,702

 
2,586,977

Weighted average impact of other dilutive equity instruments
87,771

  
183,308

Weighted average shares for diluted net income per common share
6,606,276

  
6,537,728

Net income per common share:


 
 
Basic
$
0.02

  
$
0.02

Diluted
$
0.02

  
$
0.02