Virgin Media 2012 Annual Report Download - page 85

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F-14
Basic net income (loss) per common share and basic income (loss) from continuing operations per share is computed
by dividing the net income (loss) and income (loss) from continuing operations, respectively, by the weighted average
number of shares outstanding during the respective periods. Diluted net income (loss) per common share and diluted
income (loss) from continuing operations per common share is computed on the basis of the weighted average number
of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the
treasury stock method for stock options, sharesave options, shares of restricted stock held in escrow, restricted stock
units and warrants, and the if-converted method for shares potentially issuable under our convertible senior notes.
Basic and diluted income (loss) from discontinued operations per share for the years ended December 31, 2012, 2011
and 2010 was £0.00, £0.00 and £0.08 respectively.
The weighted average number of shares outstanding for the years ended December 31, 2012, 2011 and 2010 is
computed as follows (in millions):
Year ended December 31,
2012 2011 2010
Number of shares outstanding at start of period 286.4 321.3 329.4
Issue of common stock (average number outstanding during the period) 1.8 3.9 1.7
Purchase of treasury shares (weighted average) (13.9) (15.1) (4.0)
Average number of shares outstanding 274.3 310.1 327.1
The following table sets forth the components of basic and diluted income (loss) per common share (in millions):
Year ended December 31,
2012 2011 2010
Numerator for basic income (loss) per common share from continuing
operations £ 2,852.6 £ 77.1 £ (169.2)
Interest on senior convertible notes, net of tax 41.0 — —
Numerator for diluted income (loss) per common share from continuing
operations £ 2,893.6 £ 77.1 £ (169.2)
Weighted average number of shares:
Denominator for basic income (loss) per common share 274.3 310.1 327.1
Effect of dilutive securities:
Share based awards to employees 4.5 6.0 —
Shares issuable under senior convertible notes 52.0 — —
Denominator for diluted income (loss) per common share 330.8 316.1 327.1
The following table sets forth the number of potential common shares excluded from the calculation of the denominator
for diluted income (loss) per common shares (in millions):
Year ended December 31,
2012 2011 2010
Stock options 2.6 3.4 10.5
Sharesave options — 0.7 0.5
Restricted stock held in escrow — 0.6 0.7
Restricted stock units 2.5 2.5 5.2
Warrants — — 25.8
Shares issuable under convertible senior notes — 52.0 52.0
Table of Contents
VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 3—Earnings Per Share