Clearwire 2009 Annual Report Download - page 124

Th
esu
b
scr
i
pt
i
on r
i
g
h
ts we
di
str
ib
ute
d
on Decem
b
er 21, 2009 to purc
h
ase s
h
ares o
f
C
l
ass A Common Stoc
k
to
C
l
ass A Common Stoc
kh
o
ld
ers o
f
recor
d
on Decem
b
er 17
,
2009
,
warrant
h
o
ld
ers
,
an
d
certa
i
n
h
o
ld
ers o
f
RSUs
r
epresent a dividend distribution. Certain Participatin
g
Equit
y
holders and Goo
g
le, who were Class A Common
S
toc
kh
o
ld
ers o
f
recor
dh
o
ldi
ng approx
i
mate
l
y 102 m
illi
on s
h
ares an
d
ent
i
t
l
e
d
to t
h
esu
b
scr
i
pt
i
on r
i
g
h
ts, agree
d
not
t
o exercise or transfer their rights. The fair value of the rights distributed was
$
57.5 million or
$
0.51 per share o
f
Class A Common Stock. Certain outstandin
g
warrants meet the definition of participatin
g
securities as their term
s
p
rovide for participation in distributions with Class A Common Stock prior to exercise. Therefore, the two-class
m
et
h
o
di
s use
d
to compute t
h
e
l
oss per s
h
are an
d
as a resu
l
t, t
h
e
f
a
i
rva
l
ue o
f
t
h
er
igh
ts
di
str
ib
ute
d
to t
h
e warrant an
d
RSU holders of $9.5 million increased the net loss attributable to Class A Common Stockholders.
Diluted Loss Per Share
Th
e potent
i
a
l
exc
h
ange o
f
C
l
earw
i
re Commun
i
cat
i
ons C
l
ass B Common Interests toget
h
er w
i
t
h
C
l
ass
B
Common Stock for Class A Common Stock will have a dilutive effect on diluted loss
p
er share due to certain ta
x
e
ffects. That exchan
g
e would result in both an increase in the number of Class A Common Stock outstandin
g
and a
c
orrespon
di
ng
i
ncrease
i
nt
h
e net
l
oss attr
ib
uta
bl
etot
h
eC
l
ass A Common Stoc
kh
o
ld
ers t
h
roug
h
t
h
ee
li
m
i
nat
i
on o
f
t
he non-controllin
g
interests’ allocation. Further, to the extent that all of the Clearwire Communications Class B
Common Interests and Class B Common Stock are converted to Class A Common Stock, the Clearwire Com-
m
un
i
cat
i
ons partners
hi
p structure wou
ld
no
l
onger ex
i
st an
d
C
l
earw
i
re wou
ld b
e requ
i
re
d
to recogn
i
ze a ta
x
p
rov
i
s
i
on re
l
ate
d
to
i
n
d
e
fi
n
i
te
li
ve
di
ntan
gibl
e assets.
Net
l
oss per s
h
are attr
ib
uta
bl
eto
h
o
ld
ers o
f
C
l
ass A Common Stoc
k
on a
dil
ute
db
as
i
s, assum
i
n
g
convers
i
on o
f
t
he Clearwire Communications Class B Common Interests and Class B Common Stock, is calculated based on th
e
f
o
ll
ow
i
ng
i
n
f
ormat
i
on (
i
nt
h
ousan
d
s, except per s
h
are amounts)
:
Year Ende
d
December
31,
2009
P
e
r
iod
Fr
om
N
ovember 29
,
2008
to
D
ecember
31
,
2
008
Net
l
oss attr
ib
uta
bl
etoC
l
ass A Common Stoc
kh
o
ld
er
s
.............
$
(
335,073
)$(
29,933
)
N
on-controlling interests in net loss of consolidated subsidiarie
s
......
(
928,264
)(
1
5
9,721
)
Tax ad
j
ustment resultin
g
from dissolution of Clearwir
e
C
ommunications
.......................................
(27,3
5
6) (4,1
5
8
)
N
et loss available to Class A Common Stockholders, assumin
g
th
e
exchan
g
e of Class B to Class A Common Stoc
k
................
$(1,290,693) $(193,812)
Weighted average shares Class A common stock outstandin
g
(
diluted
)
.............................................
7
41
,
071 694
,
921
L
oss
p
er shar
e
...........................................
$
(
1.74
)
$
(
0.28
)
H
igher loss per share on a diluted basis is due to the hypothetical loss of partnership status for Clearwir
e
Commun
i
cat
i
ons upon convers
i
on o
f
a
ll
C
l
earw
i
re Commun
i
cat
i
ons C
l
ass B Common Interests an
d
C
l
ass B
Common Stoc
k
an
d
t
h
e convers
i
on o
f
t
h
e non-contro
lli
n
gi
nterests
di
scusse
d
a
b
ove
.
114
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)