v2.4.0.8
Loss Per Share of Class A and Class B Common Stock
 6 Months Ended
Jun. 30, 2014
LOSS PER SHARE OF CLASS A AND CLASS B COMMON STOCK [Abstract] [Abstract]  
Loss Per Share of Class A and Class B Common Stock [Text Block]
LOSS PER SHARE OF CLASS A AND CLASS B COMMON STOCK
The Company computes loss per share of Class A and Class B common stock using the two-class method. Basic loss per share is computed using the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed using the weighted-average number of common shares and the effect of potentially dilutive equity awards outstanding during the period. Potentially dilutive securities consist of stock options, restricted stock units, unvested restricted stock awards, performance share units and ESPP shares. The dilutive effect of these equity awards are reflected in diluted loss per share by application of the treasury stock method. The computation of the diluted loss per share of Class A common stock assumes the conversion of Class B common stock, if dilutive, while the diluted loss per share of Class B common stock does not assume the conversion of those shares.
The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting. Under the two-class method, the undistributed earnings for each period are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the period had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the Company assumes the conversion of Class B common stock, if dilutive, in the computation of the diluted loss per share of Class A common stock, the undistributed earnings are equal to net income for that computation.
The following table sets forth the computation of basic and diluted loss per share of Class A and Class B common stock for the three and six months ended June 30, 2014 and 2013 (in thousands, except share amounts and per share amounts):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2014
 
2013
 
2014
 
2013
 
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
Basic loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocation of net loss
 
$
(20,847
)
 
$
(75
)
 
$
(5,530
)
 
$
(21
)
 
$
(56,085
)
 
$
(200
)
 
$
(8,761
)
 
$
(32
)
Less: Allocation of net income attributable to noncontrolling interests
 
1,946

 
7

 
2,016

 
7

 
4,369

 
16

 
2,763

 
10

Allocation of net loss attributable to common stockholders
 
$
(22,793
)
 
$
(82
)
 
$
(7,546
)
 
$
(28
)
 
$
(60,454
)
 
$
(216
)
 
$
(11,524
)
 
$
(42
)
Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding
 
673,138,416

 
2,399,976

 
659,961,460

 
2,399,976

 
676,558,565

 
2,399,976

 
658,180,951

 
2,399,976

Basic loss per share
 
$
(0.03
)
 
$
(0.03
)
 
$
(0.01
)
 
$
(0.01
)
 
$
(0.09
)
 
$
(0.09
)
 
$
(0.02
)
 
$
(0.02
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocation of net loss attributable to common stockholders
 
$
(22,793
)
 
$
(82
)
 
$
(7,546
)
 
$
(28
)
 
$
(60,454
)
 
$
(216
)
 
$
(11,524
)
 
$
(42
)
Reallocation of net income attributable to common stockholders as a result of conversion of Class B(1)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Allocation of net loss attributable to common stockholders
 
$
(22,793
)
 
$
(82
)
 
$
(7,546
)
 
$
(28
)
 
$
(60,454
)
 
$
(216
)
 
$
(11,524
)
 
$
(42
)
Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding used in basic computation
 
673,138,416

 
2,399,976

 
659,961,460

 
2,399,976

 
676,558,565

 
2,399,976

 
658,180,951

 
2,399,976

Conversion of Class B(1)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Employee stock options(1)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Restricted shares and RSUs(1)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Weighted-average diluted shares outstanding(1)
 
673,138,416

 
2,399,976

 
659,961,460

 
2,399,976

 
676,558,565

 
2,399,976

 
658,180,951

 
2,399,976

Diluted loss per share
 
$
(0.03
)
 
$
(0.03
)
 
$
(0.01
)
 
$
(0.01
)
 
$
(0.09
)
 
$
(0.09
)
 
$
(0.02
)
 
$
(0.02
)

(1)
Conversion of Class B shares into Class A shares and outstanding equity awards have not been reflected in the diluted loss per share calculation for the three and six months ended June 30, 2014 and 2013 because the effect would be antidilutive.
The following outstanding equity awards are not included in the diluted loss per share calculation above because they would have had an antidilutive effect:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Stock options
2,871,939

 
6,268,708

 
3,052,703

 
6,851,765

Restricted stock units
43,983,986

 
42,601,423

 
42,075,003

 
37,075,549

Restricted stock
62,158

 
302,715

 
69,583

 
427,506

ESPP shares
697,244

 
550,165

 
560,058

 
559,170

Total
47,615,327

 
49,723,011

 
45,757,347

 
44,913,990


In addition to the antidilutive awards as set forth in the table above, the Company also granted approximately 2,000,000 performance share units in connection with its acquisition of Ticket Monster during the six months ended June 30, 2014. Contingently issuable shares are excluded from the computation of diluted EPS if, based on current period results, the shares would not be issuable if the end of the reporting period were the end of the contingency period. These outstanding performance share units have been excluded from the table above for the six months ended June 30, 2014 as the performance conditions would not have been satisfied as of the end of the period.