DIRECTV 2010 Annual Report Download - page 111

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
because the options’ exercise prices were greater than the average market price of The reconciliation of the amounts used in the basic and diluted EPS
our common stock during the years presented: computation was as follows:
December 31, Per Share
Income Shares Amounts
2010 2009 2008
(Dollars and Shares in Millions,
(Shares in Millions) Except Per Share Amounts)
Common stock options excluded .................... — 16 27 Year Ended December 31, 2010:
DIRECTV Class A Common Stock:
No DIRECTV Class B common stock options have been issued. Basic EPS
Income from continuing operations attributable to DIRECTV
From November 20, 2009 to June 16, 2010, we allocated ‘‘Income from Class A common stockholders ................... $2,014 870 $ 2.31
continuing operations attributable to DIRECTV’’ in the Consolidated Statements Effect of Dilutive Securities
of Operations to the DIRECTV Class A and DIRECTV Class B common Dilutive effect of stock options and restricted stock units ..... — 6 (0.01)
stockholders based on the weighted average shares outstanding for each class Diluted EPS
through the close of the Malone Transaction on June 16, 2010. After the close of Adjusted income from continuing operations attributable to
the Malone Transaction we allocate all income from continuing operations DIRECTV Class A common stockholders ............ $2,014 876 $ 2.30
attributable to DIRECTV to the DIRECTV Class A stockholders. At the close of DIRECTV Class B Common Stock:
the transaction, we exchanged 21.8 million shares of DIRECTV Class B common Basic and diluted EPS
Income from continuing operations attributable to DIRECTV
stock, which represented all of the issued and outstanding DIRECTV Class B
Class B common stockholders, including $160 million exchange
common stock, for 26.5 million shares of DIRECTV Class A common stock. We inducement value for the Malone Transaction ........... $ 184 22 $8.44
determined the number of shares of DIRECTV Class A common stock to be
Year Ended December 31, 2009:
exchanged as follows: one share of DIRECTV Class A common stock for each
DIRECTV Class A Common Stock (DIRECTV Group common
share of DIRECTV Class B common stock held, plus an additional number of stock for period from January 1, 2009 through November 19,
DIRECTV Class A shares with a fair value of $160 million based on the market 2009):
price of the DIRECTV Class A common stock at the time of the agreement on Basic EPS
April 6, 2010. We included the $160 million in income attributable to DIRECTV Income from continuing operations attributable to DIRECTV . $ 942 982 $ 0.96
Effect of Dilutive Securities
Class B common stockholders. For the years ended December 31, 2010 and 2009,
Dilutive effect of stock options and restricted stock units ..... — 7 (0.01)
there were no dilutive securities outstanding for the DIRECTV Class B common
Diluted EPS
stock. See Note 13 of the Notes to the Consolidated Financial Statements for a
Adjusted income from continuing operations attributable to
further discussion of the Malone Transaction. DIRECTV .............................. $ 942 989 $0.95
DIRECTV Class B Common Stock:
Income from continuing operations attributable to DIRECTV
Class B common stockholders .................... $ — 22 $(0.02)
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