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2015 2014 2013
For the Years Ended December 31,
Numerator:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 509,724 $ 493,241 $ 377,215
Allocation of undistributed income to Series B Preferred
Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (3,825)
Net income available to common stockholders for basic net
income per common share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 509,724 $ 493,241 $ 373,390
Add back:
Allocation of undistributed income to Series B Preferred
Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 3,825
Net income available to common stockholders for diluted
net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . $ 509,724 $ 493,241 $ 377,215
Denominator:
Weighted average common shares outstanding for basic
net income per common share(a) . . . . . . . . . . . . . . . . . . . . . . . . 5,375,707 5,788,944 6,227,646
Weighted average impact of assumed Series B Preferred
Stock conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 63,789
Weighted average impact of dilutive equity instruments. . . 59,459 73,076 93,356
Weighted average shares for diluted net income per
common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,435,166 5,862,020 6,384,791
Net income per common share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.09 $ 0.09 $ 0.06
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.09 $ 0.08 $ 0.06
(a) The 7% Exchangeable Senior Subordinated Notes due 2014 (the “Exchangeable Notes”) were
fully converted into shares of our common stock as of December 1, 2014. During the year ended
December 31, 2013, the common stock reserved for conversion in connection with the
Exchangeable Notes were considered to be anti-dilutive 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
may affect the counterparty’s ability to pay. Bad debt expense is included in Customer service and
billing expense in our consolidated statements of comprehensive income.
Receivables from distributors primarily include billed and unbilled amounts due from OEMs for
services included in the sale or lease price of vehicles, as well as billed amounts due from
wholesale distributors of our satellite radios. Other receivables primarily include amounts due from
manufacturers of our radios, modules and chipsets where we are entitled to subsidies and royalties
based on the number of units produced. We have not established an allowance for doubtful
accounts for our receivables from distributors or other receivables as we have historically not
experienced any significant collection issues with OEMs or other third parties.
F-15
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars and shares in thousands, except per share amounts)