DIRECTV 2011 Annual Report Download - page 113

DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Accumulated Other Comprehensive Loss the period. We exclude common equivalent shares from the computation in loss
periods as their effect would be antidilutive and we exclude common stock options
The following represent the components of ‘‘Accumulated other comprehensive from the computation of diluted EPS when their exercise price is greater than the
loss’’ in our Consolidated Balance Sheets as of December 31: average market price of our common stock. The following table sets forth the
number of common stock options excluded from the computation of diluted EPS
2011 2010
because the options’ exercise prices were greater than the average market price of
(Dollars in Millions)
our common stock during the years presented:
Unamortized net amount resulting from changes in defined
benefit plan experience and actuarial assumptions, net of December 31,
tax ..................................... $(149) $(119) 2011 2010 2009
Unamortized amount resulting from changes in defined (Shares in Millions)
benefit plan provisions, net of tax ................. (2) (3) Common stock options excluded .................... — — 16
Accumulated unrealized gains on securities, net of tax ..... 3 9
Accumulated foreign currency translation adjustments ..... (8) 86 No DIRECTV Class B common stock options have been issued.
Total accumulated other comprehensive loss .......... $(156) $ (27) From November 20, 2009 to June 16, 2010, we allocated ‘‘Net income
attributable to DIRECTV’’ in the Consolidated Statements of Operations to the
DIRECTV Class A and DIRECTV Class B common stockholders based on the
Note 15: Earnings Per Common Share weighted average shares outstanding for each class through the close of the Malone
Earnings per share has been computed using the number of outstanding shares Transaction on June 16, 2010. After the close of the Malone Transaction we
of DIRECTV Group common stock from January 1, 2009 through November 19, allocate all net income attributable to DIRECTV to the DIRECTV Class A
2009, and based on the outstanding shares of DIRECTV Class A common stock stockholders. At the close of the transaction, we exchanged 21.8 million shares of
from November 20, 2009 through December 31, 2011 and Class B common stock DIRECTV Class B common stock, which represented all of the issued and
from November 20, 2009 through June 16, 2010. See Note 4 for additional outstanding DIRECTV Class B common stock, for 26.5 million shares of
information regarding the Liberty Transaction and Note 14 for additional DIRECTV Class A common stock. We determined the number of shares of
information regarding the Malone Transaction. DIRECTV Class A common stock to be exchanged as follows: one share of
DIRECTV Class A common stock for each share of DIRECTV Class B common
We compute basic earnings per common share, or EPS, by dividing net stock held, plus an additional number of DIRECTV Class A shares with a fair
income by the weighted average number of common shares outstanding for the value of $160 million based on the market price of the DIRECTV Class A
period. common stock at the time of the agreement on April 6, 2010. We included the
Diluted EPS considers the effect of common equivalent shares, which consist $160 million in income attributable to DIRECTV Class B common stockholders.
entirely of common stock options and unvested restricted stock units issued to For the years ended December 31, 2011, 2010 and 2009, there were no dilutive
employees. In the computation of diluted EPS under the treasury stock method, securities outstanding for the DIRECTV Class B common stock. See Note 14 of
the amount of assumed proceeds from restricted stock units and common stock the Notes to the Consolidated Financial Statements for a further discussion of the
options includes the amount of compensation cost attributable to future services Malone Transaction.
not yet recognized, proceeds from the exercise of the options and the incremental
income tax benefit or liability as if the awards were exercised or distributed during
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