Quarterly report pursuant to Section 13 or 15(d)

Earnings per Share

v2.4.0.8
Earnings per Share
 3 Months Ended
Mar. 31, 2014
Earnings Per Share [Abstract]  
Earnings per Share
Earnings per Share

Holdings
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 months ended March 31, 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 Sirius XM Series B Preferred Stock into 1,293,509,076 shares of common stock.

Common stock equivalents of approximately 386,975,000 and 349,681,000 for the three months ended March 31, 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 March 31,
(in thousands, except per share data)
2014
 
2013
Numerator:
 
 
 
Net income
$
93,988

 
$
123,602

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

 
(4,905
)
Net income available to common stockholders for basic net income per common share
$
93,988

 
$
118,697

Add back:
 
 


Allocation of undistributed income to Series B Preferred Stock
—

 
4,905

Net income available to common stockholders for diluted net income per common share
$
93,988

 
$
123,602

Denominator:
 
 


Weighted average common shares outstanding for basic net income per common share
6,094,784

 
6,259,803

Weighted average impact of assumed Series B Preferred Stock conversion
—

 
258,702

Weighted average impact of other dilutive equity instruments
79,064

 
87,771

Weighted average shares for diluted net income per common share
6,173,848

 
6,606,276

Net income per common share:
 
 
 
Basic
$
0.02

 
$
0.02

Diluted
$
0.02

 
$
0.02



Sirius XM
Net income per share for Sirius XM is not presented since Sirius XM is a wholly-owned subsidiary of Holdings.