Frontier Communications 2013 Annual Report Download - page 90

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The amounts above exclude $0.6 million and $2.1 million of accrued interest as of December 31, 2013 and
2012, respectively, that we have recorded and would be payable should the Company’s tax positions not be
sustained.
(13) Net Income Per Common Share:
The reconciliation of the net income per common share calculation for the years ended December 31,
2013, 2012 and 2011 is as follows:
($ and shares in thousands, except per share amounts) 2013 2012 2011
Net income used for basic and diluted earnings per
common share:
Net income attributable to common shareholders of Frontier. . . . $112,835 $136,636 $149,614
Less: Dividends paid on unvested restricted stock awards ...... (2,531) (2,901) (3,743)
Total basic and diluted net income attributable to common
shareholders of Frontier .................................... $110,304 $133,735 $145,871
Basic earnings per common share:
Total weighted average shares and unvested restricted stock
awards outstanding—basic.................................. 999,126 997,665 994,753
Less: Weighted average unvested restricted stock awards ....... (6,467) (7,128) (4,901)
Total weighted average shares outstanding—basic. . . ........... 992,659 990,537 989,852
Basic net income per share attributable to common
shareholders of Frontier .................................... $ 0.11 $ 0.14 $ 0.15
Diluted earnings per common share:
Total weighted average shares outstanding—basic. . . ........... 992,659 990,537 989,852
Effect of dilutive shares ...................................... 1,338 1,263 1,415
Effect of dilutive stock units.................................. — — 557
Total weighted average shares outstanding—diluted . ........... 993,997 991,800 991,824
Diluted net income per share attributable to common
shareholders of Frontier .................................... $ 0.11 $ 0.13 $ 0.15
Stock Options
For the years ended December 31, 2013, 2012 and 2011, options to purchase 83,000 shares (at exercise
prices ranging from $12.50 to $14.15), 540,000 shares (at exercise prices ranging from $10.44 to $14.15) and
895,000 shares (at exercise prices ranging from $8.19 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, 2013, 2012 and 2011, we had 1,238,542, 864,114 and 557,480 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 2013 and 2012 because their inclusion would have an antidilutive effect.
F-28
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements