Sprint - Nextel 2008 Annual Report Download - page 148

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CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Class B Common Interests and Class B Common Stock are converted to Class A Common Stock, the Clearwire
Communications partnership structure would no longer exist and Clearwire would be required to recognize a tax
provision related to indefinite lived intangible assets.
Net loss per share attributable to holders of Class A Common Stock on a diluted basis, assuming conversion
of the Clearwire Communications Class B Common Interests and Class B Common Stock, is calculated based on
the following information (in thousands, except per share amounts):
Year Ended
December 31,
2009
Period From
November 29,
2008 to
December 31,
2008
Net loss attributable to Class A Common Stockholders .............. $ (335,073) $ (29,933)
Non-controlling interests in net loss of consolidated subsidiaries ...... (928,264) (159,721)
Tax adjustment resulting from dissolution of Clearwire
Communications .......................................... (27,356) (4,158)
Net loss available to Class A Common Stockholders, assuming the
exchange of Class B to Class A Common Stock ................. $(1,290,693) $(193,812)
Weighted average shares Class A common stock outstanding
(diluted) ................................................. 741,071 694,921
Loss per share .............................................. $ (1.74) $ (0.28)
Higher loss per share on a diluted basis is due to the hypothetical loss of partnership status for Clearwire
Communications upon conversion of all Clearwire Communications Class B Common Interests and Class B
Common Stock and the conversion of the non-controlling interests discussed above.
The diluted weighted average shares did not include the effects of the following potential common shares as
their inclusion would have been antidilutive (in thousands):
Year Ended
December 31,
2009
Period From
November 29,
2008 to
December 31,
2008
Stock options ............................................... 22,154 19,317
Restricted stock units ......................................... 9,488 3,054
Warrants ................................................... 17,806 17,806
Contingent shares ........................................... 12,747 28,824
62,196 69,001
The contingent shares for the year ended December 31, 2009, primarily relate to Clearwire Communications
Class B Common Interests and Clearwire Communications Voting Interests that will be issued to Participating
Equityholders upon the Second and Third Investment Closings as such interests, on a combined basis, can be
exchanged for Class A Common Stock. The Second Investment Closing was December 21, 2009. We expect the
Third Investment Closing to occur during the first quarter of 2010.
The contingent shares for the year ended December 31, 2008, relate to purchase price share adjustment of
28,235,294 million shares and equity issuance to CW Investment Holdings of 588,235 shares, all of which were
issued in February of 2009.
F-82