XM Radio 2014 Annual Report Download - page 121

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(in thousands, except per share data) 2014 2013 2012
For the Years Ended December 31,
Numerator:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 493,241 $ 377,215 $ 3,472,702
Less:
Allocation of undistributed income to Series B Preferred
Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (3,825) (1,084,895)
Dividends paid to preferred stockholders . . . . . . . . . . . . . . . . — — (64,675)
Net income available to common stockholders for basic
net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . $ 493,241 $ 373,390 $ 2,323,132
Add back:
Allocation of undistributed income to Series B Preferred
Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3,825 1,084,895
Dividends paid to preferred stockholders . . . . . . . . . . . . . . . . — — 64,675
Effect of interest on assumed conversions of convertible
debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 38,500
Net income available to common stockholders for diluted
net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . $ 493,241 $ 377,215 $ 3,511,202
Denominator:
Weighted average common shares outstanding for basic
net income per common share(a) . . . . . . . . . . . . . . . . . . . . . . . 5,788,944 6,227,646 4,209,073
Weighted average impact of assumed Series B
Preferred Stock conversion . . . . . . . . . . . . . . . . . . . . . . . . . . — 63,789 2,215,900
Weighted average impact of assumed convertible debt(b) — — 298,725
Weighted average impact of other dilutive equity
instruments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,076 93,356 150,088
Weighted average shares for diluted net income per
common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,862,020 6,384,791 6,873,786
Net income per common share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.09 $ 0.06 $ 0.55
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.08 $ 0.06 $ 0.51
(a) For the year ended December 31, 2014, the weighted-average common shares outstanding for
basic net income per common share includes approximately 31,078,000 shares of the
272,855,859 shares related to the conversion of the 7% Exchangeable Senior Subordinated
Notes due 2014, due to the weighted-average in calculating earnings per share.
(b) During the years ended December 31, 2013 and 2012, the common stock reserved for
conversion in connection with the 7% Exchangeable Senior Subordinated Notes due 2014 were
considered to be anti-dilutive and dilutive, respectively, in our calculation of diluted net income
per share.
(6) Receivables, net
Receivables, net includes customer accounts receivable, receivables from distributors and other
receivables.
Customer accounts receivable, net, includes receivables from our subscribers and advertising
customers and is stated at amounts due net of an allowance for doubtful accounts. Our allowance
for doubtful accounts is based upon our assessment of various factors. We consider historical
experience, the age of the receivable balances, current economic conditions and other factors that
F-15
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollar amounts in thousands, unless otherwise stated)