iHeartMedia 2006 Annual Report Download - page 89

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89
Shares Held in Treasury
Included in the 114,449 and 113,890 shares held in treasury are 14,449 and 13,890 shares that the Company holds
in Rabbi Trusts at December 31, 2006 and 2005, respectively, relating to the Company’s non-qualified deferred
compensation plan. During the year ended December 31, 2006, 46.7 million shares were retired from the
Company’s shares held in treasury account.
Reconciliation of Earnings per Share
(In thousands, except per share data) 2006 2005 2004
NUMERATOR:
Income before discontinued operations and cumulative
effect of a change in accounting principle
$ 688,762
$ 633,648 $ 794,454
Income from discontinued operations, net 2,755 302,014 51,345
Cumulative effect of a change in accounting principle ⎯ ⎯ (4,883,968)
Net income (loss) 691,517 935,662 (4,038,169)
Effect of dilutive securities:
None ⎯ ⎯ ⎯
Numerator for net income before cumulative effect of a
change in accounting principle per common share -
diluted
691,517
935,662 845,799
Numerator for cumulative effect of a change in
accounting principle per common share - diluted
⎯
⎯ (4,883,968)
Numerator for net income (loss) per common share -
diluted
$ 691,517
$ 935,662
$ (4,038,169)
DENOMINATOR:
Weighted average common shares 500,786 545,848 596,126
Effect of dilutive securities:
Stock options and common stock warrants 853 1,303 2,149
Denominator for net income (loss) per common share -
diluted
501,639
547,151
598,275
Net income (loss) per common share:
Income before discontinued operations and
cumulative effect of a change in accounting
principle - Basic
$ 1.37
$ 1.16
$ 1.33
Discontinued operations - Basic .01 .55 .09
Cumulative effect of a change in accounting
principle - Basic
⎯
⎯
(8.19)
Net income (loss) - Basic $ 1.38 $ 1.71 $ (6.77)
Income before cumulative effect of a change in
accounting principle - Diluted
$ 1.37
$ 1.16
$ 1.33
Discontinued operations - Diluted .01 .55 .08
Cumulative effect of a change in accounting
principle - Diluted
⎯
⎯
(8.16)
Net income (loss) - Diluted $ 1.38 $ 1.71 $ (6.75)
NOTE M - EMPLOYEE STOCK AND SAVINGS PLANS
The Company has various 401(k) savings and other plans for the purpose of providing retirement benefits for
substantially all employees. Both the employees and the Company make contributions to the plan. The Company
matches a portion of an employee's contribution. Company matched contributions vest to the employees based