DIRECTV 2012 Annual Report Download - page 111

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Accumulated Other Comprehensive Loss employees. During the year ended December 31, 2012, we excluded 1.0 million
common stock options from the computation of diluted EPS because the inclusion
The following represents the changes in the components of ‘‘Accumulated of the potential common shares would have had an antidilutive effect. We did not
other comprehensive loss’’ in the Consolidated Balance Sheets for each of the years exclude any common stock options from the computation of diluted EPS during
presented: 2011 or 2010.
Unrealized Accumulated
Cross- Foreign Gains Other Malone Transaction
Defined Currency Currency (Losses) on Comprehensive
Benefit Plans Swaps Items Securities Loss From January 1, 2010 to June 16, 2010, we allocated ‘‘Net income
(Dollars in Millions) attributable to DIRECTV’’ in the Consolidated Statements of Operations to the
Balance as of January 1, Class A and Class B common stockholders based on the weighted average shares
2010 .............. $(130) $ — $ 66 $ 8 $ (56) outstanding for each class through the close of the Malone Transaction on June 16,
Other comprehensive 2010. At the close of the transaction, we exchanged 21.8 million shares of Class B
income ............ 8 — 20 1 29 common stock, which represented all of the issued and outstanding Class B
Balance as of common stock, for 26.5 million shares of Class A common stock. We accounted
December 31, 2010 . . . (122) — 86 9 (27) for this exchange of DIRECTV Class B common stock into DIRECTV Class A
Other comprehensive loss . . (29) — (94) (6) (129) common stock pursuant to accounting standards for induced conversions, whereby
the $160 million in incremental DIRECTV Class A common stock issued to the
Balance as of former DIRECTV Class B stockholders has been deducted from earnings
December 31, 2011 . . . (151) — (8) 3 (156) attributable to DIRECTV Class A stockholders for purposes of calculating earnings
Other comprehensive loss . . (33) (17) (32) (4) (86) per share in the Consolidated Statements of Operations. We included the
Balance as of $160 million in income attributable to Class B common stockholders. This
December 31, 2012 . . . $(184) $(17) $(40) $(1) $(242) adjustment had the effect of reducing diluted earnings per DIRECTV Class A
common share by $0.18 for the year ended December 31, 2010. After the close of
the Malone Transaction we allocate all net income attributable to DIRECTV to the
Note 16: Earnings Per Common Share
Class A stockholders. For the years ended December 31, 2012, 2011 and 2010,
We compute basic earnings per common share, or EPS, by dividing net there were no dilutive securities outstanding for the Class B common stock. See
income by the weighted average number of common shares outstanding for the Note 15 for additional information regarding the Malone Transaction.
period.
Diluted EPS considers the effect of common equivalent shares, which consist
entirely of common stock options and unvested restricted stock units issued to
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