XM Radio 2013 Annual Report Download - page 106

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COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollar amounts in thousands, unless otherwise stated)
Common stock equivalents of approximately 365,177,000, 147,125,000 and 419,752,000 for the years
ended December 31, 2013, 2012 and 2011, respectively, were excluded from the calculation of diluted net
income per common share as the effect would have been anti-dilutive.
For the Years Ended December 31,
(in thousands, except per share data) 2013 2012 2011
Numerator:
Net income ..................................... $ 377,215 $ 3,472,702 $ 426,961
Less:
Allocation of undistributed income to Series B
Preferred Stock .............................. (3,825) (1,084,895) (174,449)
Dividends paid to preferred stockholders ........... — (64,675) —
Net income available to common stockholders for basic
net income per common share .................... $ 373,390 $ 2,323,132 $ 252,512
Add back:
Allocation of undistributed income to Series B
Preferred Stock .............................. 3,825 1,084,895 174,449
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 .................... $ 377,215 $ 3,511,202 $ 426,961
Denominator:
Weighted average common shares outstanding for basic
net income per common share .................... 6,227,646 4,209,073 3,744,606
Weighted average impact of assumed Series B
Preferred Stock conversion .................... 63,789 2,215,900 2,586,977
Weighted average impact of assumed convertible
debt ....................................... — 298,725 —
Weighted average impact of other dilutive equity
instruments ................................. 93,356 150,088 169,239
Weighted average shares for diluted net income per
common share ................................ 6,384,791 6,873,786 6,500,822
Net income per common share:
Basic ........................................ $ 0.06 $ 0.55 $ 0.07
Diluted ...................................... $ 0.06 $ 0.51 $ 0.07
Sirius XM
Net income per share for Sirius XM is not presented since Sirius XM is a wholly-owned subsidiary of
Holdings.
(5) Accounts Receivable, net
Accounts receivable, net, are stated at amounts due from customers 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.
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