Windstream 2012 Annual Report Download - page 144

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
____
F-46
2. Summary of Significant Accounting Policies and Changes, Continued:
A reconciliation of net income and number of shares used in computing basic and diluted earnings per share was as follows for
the years ended December 31:
(Millions, except per share amounts) 2012 2011 2010
Basic and diluted earnings per share:
Numerator:
Income from continuing operations $ 168.7 $ 169.6 $ 312.7
Income from continuing operations allocable to participating securities (3.6)(3.4)(3.0)
Adjusted income from continuing operations attributable to
common shares 165.1 166.2 309.7
Loss from discontinued operations (0.7)(0.1)—
Loss from discontinued operations allocable to participating securities ———
Adjusted loss from discontinued operations attributable to common
shares (0.7)(0.1)—
Net income attributable to common shares $ 164.4 $ 166.1 $ 309.7
Denominator:
Basic shares outstanding
Weighted average basic shares outstanding 588.0 516.4 471.0
Weighted average participating securities (3.5)(3.7)(3.0)
Weighted average shares outstanding for basic earnings per share 584.5 512.7 468.0
Basic and diluted earnings per share:
From continuing operations $.28 $.32 $.66
From discontinued operations ———
Net income $.28 $.32 $.66
The calculation of basic earnings per share excludes income attributable to participating non-vested restricted shares from the
numerator and excludes the dilutive impact of participating non-vested restricted shares from the denominator.
Revisions to Prior Period Financial Statements
In connection with the preparation of our consolidated financial statements for the year ended December 31, 2012, we became
aware of and corrected an error in the accounting for certain promotional credits for new consumer customers. Previously,
promotional credits issued on a customer's first bill were deferred and amortized over the length of the contract with the
customer. We should have recognized these credits against revenue in the month that they appeared on the customer's bill.
The revisions for the year ended December 31, 2011, which we have assessed and determined are not material to the financial
statements, are presented below. In addition, we will revise the previously filed quarterly financial statements for the periods
impacted (see Note 18 to the financial statements). These errors are non-cash and did not affect our total operating cash flow
for any period.