Frontier Communications 2012 Annual Report Download - page 89

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The amounts above exclude $2.1 million and $3.6 million of accrued interest as of December 31, 2012 and
2011, respectively, that we have recorded and would be payable should the Company’s tax positions not be
sustained.
(13) Net Income Per Common Share:
The reconciliation of the net income per common share calculation for the years ended December 31,
2012, 2011 and 2010 is as follows:
($ and shares in thousands, except per-share amounts) 2012 2011 2010
Net income used for basic and diluted earnings per
common share:
Net income attributable to common shareholders of Frontier. . . . $136,636 $149,614 $152,673
Less: Dividends paid on unvested restricted stock awards ...... (2,901) (3,743) (3,072)
Total basic and diluted net income attributable to common
shareholders of Frontier .................................... $133,735 $145,871 $149,601
Basic earnings per common share:
Total weighted-average shares and unvested restricted stock
awards outstanding—basic.................................. 997,665 994,753 653,248
Less: Weighted-average unvested restricted stock awards ....... (7,128) (4,901) (3,420)
Total weighted-average shares outstanding—basic . . . ........... 990,537 989,852 649,828
Net income per share attributable to common shareholders of
Frontier . . . ................................................ $ 0.14 $ 0.15 $ 0.23
Diluted earnings per common share:
Total weighted-average shares outstanding—basic . . . ........... 990,537 989,852 649,828
Effect of dilutive shares ...................................... 1,263 1,415 1,163
Effect of dilutive stock units.................................. — 557 —
Total weighted-average shares outstanding—diluted . ........... 991,800 991,824 650,991
Net income per share attributable to common shareholders of
Frontier . . . ................................................ $ 0.13 $ 0.15 $ 0.23
Stock Options
For the years ended December 31, 2012, 2011 and 2010, options to purchase 540,000 shares (at exercise
prices ranging from $10.44 to $14.15), 895,000 shares (at exercise prices ranging from $8.19 to $14.15) and
1,116,000 shares (at exercise prices ranging from $10.44 to $14.15), respectively, issuable under employee
compensation plans were excluded from the computation of diluted earnings per share (EPS) for those periods
because the exercise prices were greater than the average market price of our common stock and, therefore, the
effect would be antidilutive. In calculating diluted EPS, we apply the treasury stock method and include future
unearned compensation as part of the assumed proceeds.
Stock Units
At December 31, 2012, 2011 and 2010, we had 864,114, 557,480 and 434,765 stock units, respectively,
issued under the Director Plans. These securities have not been included in the diluted income per share of
common stock calculation for the years ended December 31, 2012 and 2010, because their inclusion would
have an antidilutive effect.
F-28
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements