Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2012

Calculation of Both Basic and Diluted Net Income or Loss Per Share

The following table presents the calculation of both basic and diluted net (loss) income per share (in thousands except share amounts):


	Three months ended September 30,					Nine months ended September 30,
	2012			2011		2012			2011

Net (loss) income	$	(26,426	)	$	96,345	$	(168,617	)	$	(87,464	)


Weighted average shares outstanding		149,200			133,238		141,947			128,377
Dilutive effect of employee stock options and warrants (1)		0			22,737		0			0


Diluted weighted average shares outstanding		149,200			155,975		141,947			128,377


Basic (loss) income per share	$	(0.18	)	$	0.72	$	(1.19	)	$	(0.68	)
Diluted (loss) income per share	$	(0.18	)	$	0.62	$	(1.19	)	$	(0.68	)

(1)

Potentially dilutive securities representing approximately 38.4 million and 3.2 million shares of common stock for the three month periods ended September 30, 2012 and September 30, 2011, respectively, and approximately 38.4 million and 31.9 million shares of common stock for the nine months ended September 30, 2012 and September 30, 2011, respectively were excluded from the computation of diluted earnings per share for these periods because their effect would have been anti-dilutive.

Liability Measured at Fair Value on a Recurring Basis

The following table presents information about the Company’s liability as of September 30, 2012 and December 31, 2011 that is measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:


	September 30, 2012
*In millions*	Total		Level 1		Level 2		Level 3

Asset:

Cash equivalents	$	37.1	$	37.1	$	—	$	—


Liability:

Warrant derivative liability	$	91.0	$	—	$	—	$	91.0


	December 31, 2011
*In millions*	Total		Level 1		Level 2		Level 3

Asset:

Cash equivalents	$	39.0	$	39.0	$	—	$	—


Liability:

Warrant derivative liability	$	123.1	$	—	$	—	$	123.1

Change in Fair Value of Warrant Derivative Liabilities

The change in the fair value of the warrant derivative liability is as follows (in thousands):


	Three months ended September 30			Nine months ended September 30
Balance at June 30, 2011 & December 31, 2010, respectively	$	285,984		$	230,069

(Gain) loss on change in fair value of derivative liability		(106,614	)		53,403
Compensation (income) expense for change in fair value of warrants issued to former employees		(3,352	)		1,004
Transfers to equity		(21,000	)		(129,458	)

Balance at September 30, 2011	$	155,018		$	155,018


	Three months ended September 30			Nine months ended September 30
Balance at June 30, 2012 & December 31, 2011, respectively	$	120,214		$	123,125

(Gain) loss on change in fair value of derivative liability		(16,454	)		68,686
Compensation (income) expense for change in fair value of warrants issued to former employees		(1,194	)		3,037
Transfers to equity		(11,603	)		(103,885	)

Balance at September 30, 2012	$	90,963		$	90,963

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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