Clearwire 2010 Annual Report Download - page 113

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15. Net Loss Per Share
Basic Net Loss Per Share
The net loss per share attributable to holders of Class A Common Stock is calculated based on the following
information (in thousands, except per share amounts):
Year Ended
December 31,
2010
Year Ended
December 31,
2009
Period From
November 29,
2008 to
December 31,
2008
Net loss .................................... $(2,303,094) $(1,253,846) $(189,654)
Non-controlling interests in net loss of consolidated
subsidiaries................................ 1,815,657 928,264 159,721
(487,437) (325,582) (29,933)
Distribution to warrant and restricted stock unit
holders ................................... — (9,491) —
Net loss attributable to Class A Common
Stockholders ............................... $ (487,437) $ (335,073) $ (29,933)
Weighted average shares Class A Common Stock
outstanding ................................ 222,527 194,696 189,921
Net loss per share ............................. $ (2.19) $ (1.72) $ (0.16)
The subscription rights we distributed on December 21, 2009 to purchase shares of Class A Common Stock to
Class A Common Stockholders of record on December 17, 2009, warrant holders, and certain holders of RSUs
represent a dividend distribution. Certain Participating Equityholders and Google, who were Class A Common
Stockholders of record holding approximately 102 million shares and entitled to the subscription rights, agreed not
to exercise or transfer their rights. The fair value of the rights distributed was $57.5 million or $0.51 per share of
Class A Common Stock. Certain outstanding warrants meet the definition of participating securities as their terms
provide for participation in distributions with Class A Common Stock prior to exercise. Therefore, the two-class
method is used to compute the net loss per share and as a result, the fair value of the rights distributed to the warrant
and RSU holders of $9.5 million increased the net loss attributable to Class A Common Stockholders.
Diluted Net Loss Per Share
The potential exchange of Clearwire Communications Class B Common Interests together with Class B
Common Stock for Class A Common Stock will have a dilutive effect on diluted net loss per share due to certain tax
effects. That exchange would result in both an increase in the number of Class A Common Stock outstanding and a
corresponding increase in the net loss attributable to the Class A Common Stockholders through the elimination of
the non-controlling 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-
munications partnership structure would no longer exist and Clearwire would be required to recognize a tax
provision related to indefinite lived intangible assets.
Shares issuable upon the conversion of the Exchangeable Notes were included in the computation of diluted
net loss per share for the year ended December 31, 2010 on an “if converted” basis since the result was dilutive. For
purpose of this computation, the change in fair value of the Exchange Options and interest expense on the
Exchangeable Notes, were reversed for the period.
108
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)