Sprint - Nextel 2010 Annual Report Download - page 131

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15. Net Loss Per Share
Basic Net Loss Per Share
The net loss per share attributable to holders of Class A Common Stock is calculated based on the following information
(in thousands, except per share amounts):
Net loss
Non-controlling interests in net loss of consolidated subsidiaries
Distribution to warrant and restricted stock unit holders
Net loss attributable to Class A Common Stockholders
Weighted average shares Class A Common Stock outstanding
Net loss per share
Year Ended
December 31,
2010
$(2,303,094)
1,815,657
(487,437)
—
$(487,437)
222,527
$(2.19)
Year Ended
December 31,
2009
$(1,253,846)
928,264
(325,582)
(9,491)
$(335,073)
194,696
$(1.72)
Period From
November 29,
2008 to
December 31,
2008
$(189,654)
159,721
(29,933)
—
$(29,933)
189,921
$(0.16)
The subscription rights we distributed on December 21, 2009 to purchase shares of Class A Common Stock to Class A
Common Stockholders of record on December 17, 2009, warrant holders, and certain holders of RSUs represent a dividend
distribution. Certain Participating Equityholders and Google, who were Class A Common Stockholders of record holding
approximately 102 million shares and entitled to the subscription rights, agreed not to exercise or transfer their rights. The fair
value of the rights distributed was $57.5 million or $0.51 per share of Class A Common Stock. Certain outstanding warrants
meet the definition of participating securities as their terms provide for participation in distributions with Class A Common
Stock prior to exercise. Therefore, the two-class method is used to compute the net loss per share and as a result, the fair value
of the rights distributed to the warrant and RSU holders of $9.5 million increased the net loss attributable to Class A Common
Stockholders.
Diluted Net Loss Per Share
The potential exchange of Clearwire Communications Class B Common Interests together with Class B Common Stock
for Class A Common Stock will have a dilutive effect on diluted net loss per share due to certain tax effects. That exchange
would result in both an increase in the number of Class A Common Stock outstanding and a corresponding increase in the net
loss attributable to the Class A Common Stockholders through the elimination of the non-controlling interests’ allocation.
Further, to the extent that all of the Clearwire Communications 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.
Shares issuable upon the conversion of the Exchangeable Notes were included in the computation of diluted net loss per
share for the year ended December 31, 2010 on an “if converted” basis since the result was dilutive. For purpose of this
computation, the change in fair value of the Exchange Options and interest expense on the Exchangeable Notes, were reversed
for the period.
Table of Contents CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —(CONTINUED)
F-74