iHeartMedia 2002 Annual Report Download - page 99

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vesting of employee stock options. Additionally, during 2001 and 2000, as a result of severance negotiations with 20 employees, the Company
accelerated the vesting of 109,000 and 470,000 existing employee stock options, respectively. Accordingly, the Company recorded expense
during the years ended December 31, 2001 and 2000 equal to the intrinsic value of the accelerated options on the appropriate modification
dates of $1.8 million and $11.7 million, respectively. The expense associated with stock options is recorded on the statement of operations as a
component of “non-cash compensation expense”.
Common Stock Reserved for Future Issuance
Common stock is reserved for future issuances of, approximately 90.5 million shares for issuance upon the various stock option plans to
purchase the Company’s common stock (including 42.9 million options currently granted), 8.4 million shares for issuance upon conversion of
the Company’s 2.625% Senior Convertible Notes, 3.1 million for issuance upon conversion of the Company’s LYONs, and .2 million shares
for the settlement of a performance contract.
Shares Held in Treasury
Included in the 302,214 shares and the 279,700 shares held in treasury are 242,534 shares and 711 shares that the Company holds in Rabbi
trusts at December 31, 2002 and 2001, respectively.
Reconciliation of Earnings per Share
(In thousands, except per share data)
91
2002 2001 2000
NUMERATOR:
Income (loss) before cumulative effect of a change in accounting principle $ 724,823 $(1,144,026) $248,808
Cumulative effect of a change in accounting principle (16,778,526)
—
—
Net income (loss) (16,053,703) (1,144,026) 248,808
Effect of dilutive securities:
Convertible debt
–
2.625% issued in 1998 8,931 9,358* 9,811*
Convertible debt
–
1.5% issued in 1999 7,704 9,300*9,750*
LYONS –1996 issue
—
(225)* —
LYONS –1998 issue 4,815*4,594*4,595*
Less: Anti-dilutive items (4,815) (23,027)* (24,156)
Numerator for net income (loss) before cumulative effect of a change in
accounting principle per common share —diluted 741,458 (1,144,026)248,808
Numerator for cumulative effect of a change in accounting principle per
common share —diluted (16,778,526)
—
—
Numerator for net income (loss) per common share —diluted $(16,037,068) $(1,144,026) $248,808