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Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
11. INCOME TAXES (Continued)
For the years ended December 31, 2008, 2007 and 2006, income tax benefits attributable to equity-based compensation that were allocated
to stockholders' equity amounted to $0.4 million, $4.6 million and $5.8 million, respectively.
12. NET INCOME (LOSS) PER SHARE
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts):
The diluted net income (loss) per share computations exclude stock options and restricted stock units which are antidilutive. The number of
antidilutive shares at December 31, 2008, 2007 and 2006 was 12.2 million, 2.4 million and 3.0 million, respectively.
13. RESTRUCTURING CHARGES
In the year ended December 31, 2008, the Company recorded restructuring charges totaling $0.7 million, primarily associated with the
closure of its Orem, Utah facility.
In the year ended December 31, 2007, the Company recorded restructuring charges totaling $3.4 million. In October 2007, the Company
eliminated 69 positions and recorded restructuring charges totaling $3.0 million for employee termination benefits within its Communications
segment to better align the segment's cost structure within a mature business for dial-up Internet access services. All costs
F-51
Year Ended December 31,
2008
2007
2006
Numerator:
Income (loss) before cumulative effect of accounting change
$
(94,657
)
$
57,777
$
41,231
Cumulative effect of accounting change, net of tax
—
—
1,041
Net income (loss)
$
(94,657
)
$
57,777
$
42,272
Denominator:
Weighted
-
average common shares
—
basic
73,261
67,178
64,476
Less: weighted
-
average common shares subject to repurchase rights
(25
)
(410
)
(475
)
Shares used to calculate basic net income (loss) per share
73,236
66,768
64,001
Add: Dilutive effect of restricted stock units and stock options
—
2,519
2,268
Shares used to calculate diluted net income (loss) per share
73,236
69,287
66,269
Basic net income (loss) per share:
Income (loss) before cumulative effect of accounting change
$
(1.29
)
$
0.87
$
0.64
Cumulative effect of accounting change, net of tax
—
—
0.02
Basic net income (loss) per share
$
(1.29
)
$
0.87
$
0.66
Diluted net income (loss) per share:
Income (loss) before cumulative effect of accounting change
$
(1.29
)
$
0.83
$
0.62
Cumulative effect of accounting change, net of tax
—
—
0.02
Diluted net income (loss) per share
$
(1.29
)
$
0.83
$
0.64