Quarterly report pursuant to Section 13 or 15(d)

Earnings Attributable to Liberty Media Corporation Stockholders Per Common Share

v3.10.0.1
Earnings Attributable to Liberty Media Corporation Stockholders Per Common Share
6 Months Ended
Jun. 30, 2018
Earnings Attributable to Liberty Media Corporation Stockholders Per Common Share  
Earnings Attributable to Liberty Media Corporation Stockholders Per Common Share

(6)   Earnings Attributable to Liberty Media Corporation Stockholders Per Common Share

Basic earnings (loss) per common share ("EPS") is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding (“WASO”) for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented, including any necessary adjustments to earnings (loss) attributable to shareholders.

Excluded from diluted EPS for the three and six months ended June 30, 2018 are approximately 21 million potentially dilutive shares of Series A Liberty SiriusXM common stock, 2 million potentially dilutive shares of Series A Liberty Braves common stock and 8 million potentially dilutive shares of Series A Liberty Formula One common stock, primarily due to warrants issued in connection with the Bond Hedge Transaction (as defined in note 11), because their inclusion would be antidilutive. The Amended Warrant Transactions (as defined in note 11) may have a dilutive effect with respect to the shares comprising the basket of Liberty’s tracking stocks as specified in the indenture, as amended, related to Liberty’s 1.375% Cash Convertible Notes due 2023 (the “Securities Basket”) underlying the warrants to the extent that the settlement price exceeds the strike price of the warrants, and the warrants are settled in shares comprising such Securities Basket. The warrants and any potential future settlement have been attributed to the Formula One Group.

Series A, Series B and Series C Liberty SiriusXM Common Stock

The basic and diluted EPS calculations are based on the following weighted average outstanding shares of common stock. 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty SiriusXM Common Stock

 

 

 

Three months ended 

 

Six months ended

 

 

    

June 30, 2018

    

June 30, 2017

 

June 30, 2018

 

June 30, 2017

 

 

 

numbers of shares in millions

 

Basic WASO

 

333

 

335

 

335

 

335

 

Potentially dilutive shares

 

 4

 

 4

 

 4

 

 4

 

Diluted WASO

 

337

 

339

 

339

 

339

 

Series A, Series B and Series C Liberty Braves Common Stock

The basic and diluted EPS calculations are based on the following weighted average outstanding shares of common stock. 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Braves Common Stock

 

 

 

Three months ended 

 

Six months ended

 

 

    

June 30, 2018 (a)(b)

    

June 30, 2017 (a)

 

June 30, 2018 (a)(b)

 

June 30, 2017 (a)

 

 

 

numbers of shares in millions

 

Basic WASO

 

51

 

49

 

51

 

49

 

Potentially dilutive shares

 

 9

 

10

 

 9

 

10

 

Diluted WASO

 

60

 

59

 

60

 

59

 


(a)

Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive.

(b)

As discussed in note 3, the number of notional shares representing the Formula One Group’s intergroup interest in the Braves Group is 9,084,940 shares. The intergroup interest is a quasi-equity interest which is not represented by outstanding shares of common stock; rather, the Formula One Group has an attributed value in the Braves Group which is generally stated in terms of a number of shares of stock issuable to the Formula One Group with respect to its interest in the Braves Group. Each reporting period, the notional shares representing the intergroup interest are marked to fair value. As the notional shares underlying the intergroup interest are not represented by outstanding shares of common stock, such shares have not been officially designated Series A, B or C Liberty Braves common stock. However, Liberty has assumed that the notional shares (if and when issued) would be comprised of Series C Liberty Braves common stock in order to not dilute voting percentages. Therefore, the market price of Series C Liberty Braves common stock is used for the quarterly mark-to-market adjustment through the unaudited attributed condensed consolidated statements of operations. The notional shares representing the intergroup interest have no impact on the basic earnings per share weighted average number of shares outstanding. However, the notional shares representing the intergroup interest are included in the diluted earnings per share WASO as if the shares had been issued and outstanding during the period. An adjustment is also made to the numerator in the diluted earnings per share calculation for the unrealized gain or loss incurred from marking the intergroup interest to fair value during the period as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Six months ended

 

 

 

June 30, 2018

    

June 30, 2017

 

June 30, 2018

 

June 30, 2017

 

 

    

amounts in millions

 

Basic earnings (loss) attributable to Liberty Braves stockholders

$

(2)

 

(2)

 

(54)

 

(51)

 

Unrealized (gain) loss on the intergroup interest

 

28

 

 3

 

33

 

31

 

Diluted earnings (loss) attributable to Liberty Braves stockholders

$

26

 

 1

 

(21)

 

(20)

 

Series A, Series B and Series C Liberty Formula One Common Stock

The basic and diluted EPS calculations are based on the following weighted average outstanding shares of common stock. 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Formula One Common Stock

 

 

 

Three months ended 

 

Six months ended

 

 

    

June 30, 2018 (a)

    

June 30, 2017 (a)

 

June 30, 2018 (a)

 

June 30, 2017 (a)

 

 

 

numbers of shares in millions

 

Basic WASO

 

231

 

207

 

231

 

190

 

Potentially dilutive shares

 

 1

 

 7

 

 1

 

 7

 

Diluted WASO

 

232

 

214

 

232

 

197

 


(a)

Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive.