Quarterly report pursuant to Section 13 or 15(d)

Earnings per Share

v2.4.0.8
Earnings per Share
 6 Months Ended
Jun. 30, 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 through January 18, 2013. 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. 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.

Common stock equivalents of approximately 355,918,000 and 427,160,000 for the three months ended June 30, 2013 and 2012, respectively, and 352,795,000 and 428,045,000 for the six months ended June 30, 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 June 30,
 
For the Six Months Ended June 30,
(in thousands, except per share data)
2013
 
2012
 
2013
 
2012
Numerator:
 
 
 
 
 
 
 
Net income
$
125,522

 
$
3,134,170

 
$
249,124

  
$
3,241,944

Less:
 
 
 
 
 
 
 
Allocation of undistributed income to Series B Preferred Stock
—

 
(1,276,342
)
 
(4,979
)
 
(1,320,037
)
Net income available to common stockholders for basic net income per common share
125,522

 
1,857,828

 
244,145

 
1,921,907

Add back:
 
 
 
 
 
 
 
Allocation of undistributed income to Series B Preferred Stock
—

 
1,276,342

 
4,979

 
1,320,037

Net income available to common stockholders for diluted net income per common share
$
125,522

 
$
3,134,170

 
$
249,124

 
$
3,241,944

Denominator:
 
 
 
 
 
 
 
Weighted average common shares outstanding for basic net income per common share
6,354,755

 
3,765,573

 
6,307,541

  
3,766,508

Weighted average impact of assumed Series B Preferred Stock conversion
—

 
2,586,977

 
128,636

 
2,586,977

Weighted average impact of other dilutive equity instruments
92,762

 
153,609

 
90,521

  
168,129

Weighted average shares for diluted net income per common share
6,447,517

 
6,506,159

 
6,526,698

  
6,521,614

Net income per common share:
 
 
 
 


 
 
Basic
$
0.02

 
$
0.49

 
$
0.04

  
$
0.51

Diluted
$
0.02

 
$
0.48

 
$
0.04

  
$
0.50