Quarterly report pursuant to Section 13 or 15(d)

Earnings per Share

v2.4.0.8
Earnings per Share
 9 Months Ended
Sep. 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 Series B Preferred Stock into 1,293,509,076 shares of common stock. 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 (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 323,615,000 and 451,577,000 for the three months ended September 30, 2013 and 2012, respectively, and 354,938,000 and 144,014,000 for the nine months ended September 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 September 30,
 
For the Nine Months Ended September 30,
(in thousands, except per share data)
2013
 
2012
 
2013
 
2012
Numerator:
 
 
 
 
 
 
 
Net income
$
62,894

 
$
74,514

 
$
312,018

  
$
3,316,457

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

 
(27,825
)
 
(4,190
)
 
(1,309,647
)
Net income available to common stockholders for basic net income per common share
$
62,894

 
$
46,689

 
$
307,828

 
$
2,006,810

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

 
27,825

 
4,190

 
1,309,647

Effect of interest on assumed conversions of convertible debt
—

 
—

 
—

 
28,875

Net income available to common stockholders for diluted net income per common share
$
62,894

 
$
74,514

 
$
312,018

 
$
3,345,332

Denominator:
 
 
 
 
 
 
 
Weighted average common shares outstanding for basic net income per common share
6,184,216

 
4,034,122

 
6,265,981

  
3,870,031

Weighted average impact of assumed Series B Preferred Stock conversion
—

 
2,404,143

 
85,286

 
2,525,588

Weighted average impact of assumed convertible debt
—

 
—

 
—

 
293,333

Weighted average impact of other dilutive equity instruments
103,137

 
139,389

 
94,815

  
159,278

Weighted average shares for diluted net income per common share
6,287,353

 
6,577,654

 
6,446,082

  
6,848,230

Net income per common share:
 
 
 
 


 
 
Basic
$
0.01

 
$
0.01

 
$
0.05

  
$
0.52

Diluted
$
0.01

 
$
0.01

 
$
0.05

  
$
0.49