Frontier Communications 2014 Annual Report Download - page 91

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(12) Net Income Per Common Share:
The reconciliation of the net income per common share calculation for the years ended
December 31, 2014, 2013 and 2012 is as follows:
($ and shares in thousands, except per share amounts) 2014 2013 2012
Net income used for basic and diluted earnings
per common share:
Net income attributable to common shareholders of
Frontier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 132,893 $112,835 $136,636
Less: Dividends paid on unvested restricted stock
awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,043) (2,531) (2,901)
Total basic and diluted net income attributable to
common shareholders of Frontier . . . . . . . . . . . . . . . . . . $ 129,850 $110,304 $133,735
Basic earnings per common share:
Total weighted average shares and unvested
restricted stock awards outstanding—basic . . . . . . . . . 1,001,812 999,126 997,665
Less: Weighted average unvested restricted stock
awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,394) (6,467) (7,128)
Total weighted average shares outstanding—basic . . . . 994,418 992,659 990,537
Basic net income per share attributable to common
shareholders of Frontier . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.13 $ 0.11 $ 0.14
Diluted earnings per common share:
Total weighted average shares outstanding—basic . . . . 994,418 992,659 990,537
Effect of dilutive shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,744 1,338 1,263
Total weighted average shares outstanding—diluted. . . 998,162 993,997 991,800
Diluted net income per share attributable to common
shareholders of Frontier . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.13 $ 0.11 $ 0.13
Stock Options
For the years ended December 31, 2014, 2013 and 2012, options to purchase 83,000, 83,000 and
540,000 shares, 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, 2014, 2013 and 2012, we had 1,102,995, 1,238,542 and 864,114 stock units,
respectively, issued under the Director Plans. These securities have not been included in the diluted
income per share of common stock calculation because their inclusion would have an antidilutive
effect.
(13) Comprehensive Income (Loss):
Comprehensive income (loss) consists of net income and other gains and losses affecting
shareholders’ investment and pension/postretirement benefit (OPEB) liabilities that, under U.S. GAAP,
are excluded from net income.
F-30
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements