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Stockholders' Equity
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6 Months Ended |
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Jun. 30, 2013
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| Equity [Abstract] | |
| Stockholders' Equity |
Stockholders’ Equity
Common Stock, par value $0.001 per share
We were authorized to issue up to 9,000,000,000 shares of common stock as of June 30, 2013 and December 31, 2012. There were 6,257,721,498 and 5,262,440,085 shares of common stock issued and 6,247,221,498 and 5,262,440,085 shares outstanding as of June 30, 2013 and December 31, 2012, respectively.
As of June 30, 2013, approximately 558,569,000 shares of common stock were reserved for issuance in connection with outstanding convertible debt, warrants, incentive stock awards and common stock to be granted to third parties upon satisfaction of performance targets.
Stock Repurchase Program
In December 2012, our board of directors approved a $2,000,000 common stock repurchase program. Shares of common stock may be purchased from time to time on the open market or in privately negotiated transactions.
During the six months ended June 30, 2013, we repurchased 352,568,635 shares of our common stock for $1,143,789, including fees and commissions, on the open market and in privately negotiated transactions. Liberty Media did not participate in the common stock repurchases.
Common stock repurchases are retired upon settlement. As of June 30, 2013, $35,173 of common stock repurchases had not settled and were recorded as Treasury stock within our unaudited consolidated balance sheets and unaudited consolidated statements of stockholders' equity. As of June 30, 2013, $856,211 remained available for purchase under our stock repurchase program. For a discussion of subsequent events refer to Note 17.
Share Lending Arrangements
To facilitate the offering of the Exchangeable Notes, we entered into share lending agreements with Morgan Stanley Capital Services Inc. and UBS AG London Branch in July 2008. All loaned shares were returned to us as of October 2011, and the share lending agreements were terminated.
We recorded interest expense related to the amortization of the costs associated with the share lending arrangement and other issuance costs for our Exchangeable Notes of $3,097 and $3,060, respectively, for the three months ended June 30, 2013 and 2012, and $6,306 and $6,042, respectively, for the six months ended June 30, 2013 and 2012, respectively. As of June 30, 2013, the unamortized balance of the debt issuance costs was $19,140, with $18,721 recorded in Deferred financing fees, net, and $419 recorded in Long-term related party assets. As of December 31, 2012, the unamortized balance of the debt issuance costs was $27,652, with $27,099 recorded in Deferred financing fees, net, and $553 recorded in Long-term related party assets. These costs will continue to be amortized until the debt is terminated. A portion of the unamortized debt issuance costs was recognized during the six months ended June 30, 2013 in connection with the conversion of the Exchangeable Notes.
Preferred Stock, par value $0.001 per share
We were authorized to issue up to 50,000,000 shares of undesignated preferred stock as of June 30, 2013 and December 31, 2012, respectively.
There were 6,250,100 shares of Series B Preferred Stock issued and outstanding as of December 31, 2012 held by Liberty Media. In January 2013, Liberty Media converted its remaining shares of the Series B Preferred Stock into 1,293,509,076 shares of our common stock.
Warrants
We have issued warrants to purchase shares of our common stock in connection with distribution, programming and satellite purchase agreements. As of June 30, 2013 and December 31, 2012, approximately 18,455,000 warrants to acquire an equal number of shares of common stock were outstanding and fully vested. Warrants were included in our calculation of diluted net income per common share as the effect was dilutive for the three and six months ended June 30, 2013. They were excluded from the calculation for the three and six months ended June 30, 2012 as the effect would have been anti-dilutive. The warrants expire at various times through 2015. At June 30, 2013 and December 31, 2012, the weighted average exercise price of outstanding warrants was $2.55 per share. We did not incur warrant related expenses during the three and six months ended June 30, 2013 and 2012.
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