Charter 2010 Annual Report Download - page 119

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F- F-PB
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2010, 2009, AND 2008
(dollars in millions, except share or per share data or where indicated)
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Basic earnings (loss) per share is based on the average number of shares of common stock outstanding during the period. Diluted earnings
per share is based on the average number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of
stock options, restricted stock, performance shares and units, convertible debt, convertible redeemable preferred stock and exchangeable
membership units. Basic loss per share equaled diluted loss per share for the years ended December 31, 2010 and 2008.
Successor
One Month Ended December 31, 2009
Earnings Shares Earnings Per Share
Basic earnings per share $ 2 112,078,089 $ 0.02
Effect of Class B common stock -- 212,923 --
CII warrants -- 2,055,849 --
Diluted earnings per share $ 2 114,346,861 $ 0.02
e shares of Class B common stock held by Mr. Allen had a 35% voting interest in Charter, on a fully diluted basis, and were exchangeable
at any time on a one-for-one basis for shares of Charter Class A common stock. e CII warrants represent shares resulting from the exercise
of warrants held by CII. See Note 23.
e 1.3 million Charter Holdings warrants and 6.4 million CIH warrants were not included in the computation of diluted earnings per share
because their exercise prices were greater than the average market price of the common shares. Restricted stock was also not included in the
computation of diluted earnings per share because the effect would have been antidilutive.
Predecessor
Eleven Months Ended November 30, 2009
Earnings Shares Earnings Per Share
Basic earnings per share $ 11,364 378,784,231 $ 30.00
Effect of CII Class B Charter Holdco units -- 222,818,858 (11.11)
Effect of Vulcan Class B Charter Holdco units -- 116,313,173 (3.06)
Effect of 5.875% convertible senior notes due 2009 -- 1,287,190 (0.03)
Effect of CCHC note 1 42,282,098 (0.87)
Effect of 6.50% convertible senior notes due 2027 8 140,581,566 (2.32)
Diluted earnings per share $ 11,373 902,067,116 $ 12.61
Prior to the Effective Date, CII Class B Charter Holdco units and Vulcan Class B Charter Holdco units represented membership units in
Charter Holdco, held by entities controlled by Mr. Allen, that were exchangeable at any time on a one-for-one basis for shares of Charter
Class B common stock, which were in turn convertible on a one-for-one basis into shares of Charter Class A common stock. e 5.875%
convertible senior notes due 2009 and 6.50% convertible senior notes due 2027 represent the shares resulting from the assumed conversion of
the notes into shares of Charter’s Class A common stock. e CCHC note represented the shares resulting from the assumed conversion of
the note into Charter Holdco units that were exchangeable on a one-for-one basis for shares of Charter Class B common stock, which were in
turn convertible on a one-for-one basis into shares of Charter Class A common stock.
All options to purchase common stock, which were outstanding during the eleven months ended November 30, 2009, were not included in
the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common
shares. All restricted stock and performance units were also not included in the computation of diluted earnings per share because the effect
would have been antidilutive.