FairPoint Communications 2007 Annual Report Download - page 87

Table of Contents


The following table provides a reconciliation of the common shares used for basic earnings per share and diluted earnings per share:

  
Weighted average number of common shares used for basic earnings per share 34,752 34,629 31,927
Effect of potential dilutive shares 228 125 30
Weighted average number of common shares and potential dilutive shares used for diluted
earnings per share 34,980 34,754 31,957
Anti-dilutive shares excluded from the above reconciliation 521 1,579 1,215
Excluded from the computation of diluted earnings per share were stock awards that are contingently issuable shares, and awards in
which the assumed proceeds of the corresponding stock awards were greater than the average market price of the Company’s common
stock during the respective periods.

In September 2006, the Financial Accounting Standards Board, or FASB, issued SFAS No. 157, “Fair Value Measurements.”
SFAS No. 157 is definitional and disclosure oriented and addresses how companies should approach measuring fair value when required
by GAAP; it does not create or modify any current GAAP requirements to apply fair value accounting. SFAS No. 157 provides a single
definition for fair value that is to be applied consistently for all accounting applications, and also generally describes and prioritizes
according to reliability the methods and inputs used in valuations. The new measurement and disclosure requirements of SFAS No. 157
are effective for us in the first quarter of 2008. The impact of adopting SFAS No. 157 did not have a material impact on our consolidated
financial statements.
In February 2007, the FASB issued SFAS No. 159 
, which permits an entity to measure many financial assets and financial liabilities at fair
value that are not currently required to be measured at fair value. Entities that elect the fair value option will report unrealized gains and
losses in earnings at each subsequent reporting date. The fair value option may be elected on an instrument-by-instrument basis, with a
few exceptions. SFAS No. 159 amends previous guidance to extend the use of the fair value option to available-for-sale and held-to-
maturity securities. The Statement also establishes presentation and disclosure requirements to help financial statement users understand
the effect of the election. SFAS No. 159 is effective for the first fiscal year beginning after November 15, 2007. The impact of adopting
SFAS No. 159 did not have a material impact on our consolidated financial statements.
In December 2007, the FASB issued SFAS No. 141(R), , or SFAS 141(R), which replaces SFAS 141.
SFAS 141(R) establishes principles and requirements for how an acquirer in a business combination recognizes and measures in its
financial statements the identifiable assets acquired, the liabilities assumed, and any controlling interest; recognizes and measures the
goodwill acquired in the business combination or a gain from a bargain purchase; and determines what information to disclose to enable
users of the financial statements to evaluate the nature and financial effects of the business combination. SFAS 141(R) is to be applied
prospectively to business combinations for which the acquisition date is on or after an entity’s fiscal year that begins after December 15,
2008. The Company will assess the impact of SFAS 141(R) if and when a future acquisition occurs.
In December 2007, the FASB issued SFAS No. 160, 
, or SFAS 160. SFAS 160 establishes new accounting and reporting standards for the noncontrolling interest
in a subsidiary and for the deconsolidation of a subsidiary.
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