NetZero 2011 Annual Report Download - page 147

Download and view the complete annual report

Please find page 147 of the 2011 NetZero annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. INCOME TAXES (Continued)
undistributed earnings is not practicable. The Company provided for U.S. income taxes on the earnings of its U.K. and German subsidiaries.
For the years ended December 31, 2011, 2010 and 2009, income tax shortfalls, net, attributable to equity-based compensation that were
allocated to stockholders' equity totaled $1.0 million, $1.0 million and $3.0 million, respectively.
At December 31, 2011, the Company had federal, state and foreign net operating loss carryforwards of $112.5 million, $43.2 million and
$7.1 million, respectively. The federal net operating loss carryforwards will begin to expire in 2018, the state net operating loss carryforwards
began expiring in 2009 and the foreign net operating loss carryforwards have an indefinite life. These carryforwards have been adjusted to reflect
the Company's estimate of limitations under Section 382 of the Internal Revenue Code of 1986, as amended.
11. NET INCOME PER COMMON SHARE
The following table sets forth the computation of basic and diluted net income per common share (in thousands, except per share amounts):
The diluted net income per common share computations exclude stock options and restricted stock units which are antidilutive. Weighted-
average antidilutive shares for the years ended December 31, 2011, 2010 and 2009 were 4.4 million, 2.5 million and 5.2 million, respectively.
F-39
Year Ended December 31,
2011
2010
2009
Numerator:
Net income
$
51,730
$
53,687
$
70,085
Income allocated to participating securities
(1,993
)
(3,233
)
(4,647
)
Net income attributable to common
stockholders
$
49,737
$
50,454
$
65,438
Denominator:
Weighted
-
average common shares
88,478
86,429
83,698
Add: Dilutive effect of non
-
participating
securities
153
633
688
Shares used to calculate diluted net income per
common share
88,631
87,062
84,386
Basic net income per common share
$
0.56
$
0.58
$
0.78
Diluted net income per common share
$
0.56
$
0.58
$
0.78