Metro PCS 2011 Annual Report Download - page 134

MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2011, 2010 and 2009
F-28
In accordance with ASC 260, unvested share-based payment awards that contain rights to receive non-forfeitable
dividends or dividend equivalents, whether paid or unpaid, are considered a “participating security” for purposes of computing
earnings or loss per common share and the two-class method of computing earnings per share is required for all periods
presented.
Under certain of the Company's restricted stock award agreements, unvested shares of restricted stock have rights to
receive non-forfeitable dividends. For the years ended December 31, 2011, 2010 and 2009, the Company has calculated diluted
earnings per share under both the treasury stock method and the two-class method. There was not a significant difference in the
per share amounts calculated under the two methods, and the two-class method is disclosed. For the years ended December 31,
2011, 2010 and 2009, approximately 3.1 million, 2.6 million and 1.4 million, respectively, of restricted common shares issued
to employees have been excluded from the computation of basic net income per common share since the shares are not vested
and remain subject to forfeiture.
For the years ended December 31, 2011, 2010 and 2009, approximately 18.0 million, 25.0 million and 15.8 million,
respectively, of stock options were excluded from the calculation of diluted net income per common share since the effect was
anti-dilutive.
16. Guarantor Subsidiaries:
In connection with Wireless’ 7 7/8% Senior Notes, 6 5/8% Senior Notes, and the Senior Secured Credit Facility, MetroPCS,
together with its wholly-owned subsidiary, MetroPCS, Inc., and each of Wireless’ direct and indirect present and future wholly-
owned domestic subsidiaries (the “guarantor subsidiaries”), provided guarantees which are full and unconditional as well as
joint and several. Certain provisions of the Senior Secured Credit Facility, the indentures and the supplemental indentures
relating to the 7 7/8% Senior Notes and 6 5/8% Senior Notes restrict the ability of Wireless to loan funds to MetroPCS or
MetroPCS, Inc. However, Wireless is allowed to make certain permitted payments to MetroPCS under the terms of the Senior
Secured Credit Facility, the indentures and the supplemental indentures relating to the 7 7/8% Senior Notes and 6 5/8% Senior
Notes.
Prior to December 2010, Royal Street Communications, LLC and its subsidiaries (“Royal Street Communications”) and
MetroPCS Finance, Inc. (“MetroPCS Finance”) (collectively, the “non-guarantor subsidiaries”) were not guarantors of the
7 7/8% Senior Notes, 6 5/8% Senior Notes or the Senior Secured Credit Facility. In December 2010, Wireless completed the
acquisition of the remaining limited liability company member interest in Royal Street Communications, making Royal Street
Communications a wholly-owned subsidiary. In addition, MetroPCS Finance was merged with a subsidiary of Wireless.
Therefore, the Company no longer had any non-guarantors of any of its outstanding debt as of December 31, 2010. As a result,
the comparative historical condensed consolidating financial information has been revised to present this information as if the
new guarantor structure existed for all periods presented with the results of Royal Street Communications and MetroPCS
Finance being reported as guarantor subsidiaries.
The following information presents condensed consolidating balance sheet information as of December 31, 2011 and
2010, condensed consolidating statement of income information for the years ended December 31, 2011, 2010 and 2009, and
condensed consolidating statement of cash flows information for the years ended December 31, 2011, 2010 and 2009 of the
parent company (MetroPCS), the issuer (Wireless), and the guarantor subsidiaries. Investments in subsidiaries held by the
parent company and the issuer have been presented using the equity method of accounting.