TiVo 2015 Annual Report Download - page 97

Table of Contents
longer provided by the Company due to having divested certain assets, but which were previously licensed or provided by the Company. The Company's
indemnification obligations are typically limited to the cumulative amount paid to the Company by the licensee under the license agreement; however, some
license agreements, including those with the Company's largest multiple system operators and digital broadcast satellite providers, have larger limits or do
not specify a limit on amounts that may be payable under the indemnity arrangements. The Company cannot estimate the possible range of losses that may
affect its financial position, results of operations or cash flows in a given period or the maximum potential impact of these indemnification provisions on its
financial position, results of operations or cash flows.
Legal Proceedings
The Company is party to various legal actions, claims and proceedings as well as other actions, claims and proceedings incidental to its business.
The Company accrues a liability for matters in which losses are considered probable and the amount of loss can be reasonably estimated. Some of the
matters pending against the Company involve potential compensatory, punitive or treble damage claims or sanctions, that, if granted, could require the
Company to pay damages or make other expenditures in amounts that could have a material adverse effect on its financial position, results of operations or
cash flows. As of
December 31, 2015 , the Company does not believe any litigation matters, individually or in the aggregate, will have a material adverse
effect on its Consolidated Financial Statements .
(11) Stockholders' Equity
(Loss) Earnings Per Share
Basic earnings per share ("EPS") is computed using the weighted average number of common shares outstanding during the period. Diluted EPS is
computed using the weighted average number of common shares and dilutive common share equivalents outstanding during the period, except for periods
of a loss from continuing operations. In periods of a loss from continuing operations, no common share equivalents are included in Diluted EPS because
their effect would be anti
- dilutive.
The number of shares used to calculate Basic EPS and Diluted EPS for the years ended December 31, 2015, 2014 and 2013 were as follows (in
thousands):
Weighted average potential shares excluded from the computation of Diluted EPS as their effect would have been anti
- dilutive for the years ended
December 31, 2015, 2014 and 2013 were as follows (in thousands):
For the years ended December 31, 2015, 2014 and 2013, the Company excluded
0.9 million , 0.8 million and 0.6 million weighted average shares of
performance
- based restricted stock and restricted stock units, respectively, from the computation of Diluted EPS as the performance metric had yet to be
achieved or their inclusion would be anti - dilutive.
F - 31
Year Ended December 31,
2015
2014
2013
Weighted average shares used to calculate Basic EPS
84,133
91,654
98,371
Dilutive effect of equity - based compensation awards
—
—
721
Weighted average shares used to calculate Diluted EPS
84,133
91,654
99,092
Year Ended December 31,
2015
2014
2013
Stock options
4,133
4,517
4,038
Restricted stock and restricted stock units
2,861
3,049
1,565
2020 Convertible Notes (1)
9,876
—
—
2040 Convertible Notes (1)
869
6,141
6,141
Warrants
9,876
—
—
Weighted average potential shares excluded from the calculation of Diluted EPS
27,615
13,707
11,744
(1)
See Note 9 for additional details.