Quarterly report pursuant to Section 13 or 15(d)

Earnings per Share

v2.4.0.8
Earnings per Share
 9 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract]  
Earnings per Share
Earnings per Share

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, warrants, stock options and restricted stock units) were exercised or converted into common stock, calculated using the treasury stock method. We had no participating securities during the three and nine months ended September 30, 2014. In 2013, we utilized 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 our Series B Preferred Stock into 1,293,509,076 shares of common stock.

Common stock equivalents of approximately 143,697,000 and 323,615,000 for the three months ended September 30, 2014 and 2013, respectively, and 123,234,000 and 354,938,000 for the nine months ended September 30, 2014 and 2013, 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)
2014

2013
 
2014
 
2013
Numerator:


 


 
 
 
 
Net income
$
136,170

 
$
62,894

 
$
350,119

 
$
312,018

Less:


 


 
 
 
 
Allocation of undistributed income to Series B Preferred Stock
—

 
—

 
—

 
(4,190
)
Net income available to common stockholders for basic net income per common share
$
136,170

 
$
62,894

 
$
350,119

 
$
307,828

Add back:


 


 
 
 
 
Allocation of undistributed income to Series B Preferred Stock
—

 
—

 
—

 
4,190

Effect of interest on assumed conversions of convertible debt
5,363

 
—

 
16,088

 
—

Net income available to common stockholders for diluted net income per common share
$
141,533

 
$
62,894

 
$
366,207

 
$
312,018

Denominator:


 


 
 
 
 
Weighted average common shares outstanding for basic net income per common share
5,626,078

 
6,184,216

 
5,860,248

 
6,265,981

Weighted average impact of assumed Series B Preferred Stock conversion
—

 
—

 
—

 
85,286

Weighted average impact of assumed convertible debt
272,853

 
—

 
272,853

 
—

Weighted average impact of other dilutive equity instruments
75,116

 
103,137

 
75,468

 
94,815

Weighted average shares for diluted net income per common share
5,974,047

 
6,287,353

 
6,208,569

 
6,446,082

Net income per common share:


 


 
 
 
 
Basic
$
0.02

 
$
0.01

 
$
0.06

 
$
0.05

Diluted
$
0.02


$
0.01

 
$
0.06

 
$
0.05