EXHIBIT 11 — COMPUTATION OF EARNINGS PER SHARE
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| | | | | | | Period from | | Period from | | | | | | Period from | | Period from |
| | | | | | | July 31 | | July 1 | | Nine Months | | July 31 | | January 1 |
| | | Three Months | | through | | through July | | Ended | | through | | through July |
| | | Ended | | September 30 | | 30, | | September | | September 30, | | 30, |
| | | September 30, | | 2008 | | 2008 | | 30, | | 2008 | | 2008 |
| | | 2009 | | Post-merger | | Pre-Merger | | 2009 | | Post-merger | | Pre-Merger |
| (In thousands, except per share data) | | Post-merger | | As adjusted* | | As adjusted* | | Post-merger | | As adjusted* | | As adjusted* |
| | | | | |
| Basic and diluted Numerator: | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) before discontinued operations attributable to the Company — Common Shares | | $ | (89,855 | ) | | $ | (43,719 | ) | | $ | 391,373 | | | $ | (4,181,476 | ) | | $ | (43,719 | ) | | $ | (42,397 | ) |
| Preferential distribution | | | (1,221 | ) | | | — | | | | — | | | | (1,221 | ) | | | — | | | | — | |
| Income before discontinued operations attributable to the Company — Unvested Shares | | | — | | | | — | | | | 4,916 | | | | — | | | | — | | | | — | |
| | | | | |
| Income (loss) before discontinued operations attributable to the Company | | | (91,076 | ) | | | (43,719 | ) | | | 396,289 | | | | (4,182,697 | ) | | | (43,719 | ) | | | (42,397 | ) |
| | | | | |
| Income (loss) from discontinued operations, net | | | — | | | | (1,013 | ) | | | 640,236 | | | | — | | | | (1,013 | ) | | | (3,058 | ) |
| | | | | |
| Net income (loss) attributable to the Company — basic and diluted | | $ | (91,076 | ) | | $ | (44,732 | ) | | $ | 1,036,525 | | | $ | (4,182,697 | ) | | $ | (44,732 | ) | | $ | (45,455 | ) |
| | | | | |
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| Denominator: | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted average common shares — basic | | | 81,427 | | | | 81,242 | | | | 495,044 | | | | 81,252 | | | | 81,242 | | | | 495,465 | |
| Effect of dilutive securities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Stock options and restricted stock | | | — | | | | — | | | | 1,475 | | | | — | | | | — | | | | 340 | |
| | | | | |
| Weighted average common shares — diluted | | | 81,427 | | | | 81,242 | | | | 496,519 | | | | 81,252 | | | | 81,242 | | | | 495,805 | |
| Net income (loss) per basic common share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) before discontinued operations | | $ | (1.12 | ) | | $ | (.54 | ) | | $ | .80 | | | $ | (51.48 | ) | | $ | (.54 | ) | | $ | (.09 | ) |
| Income (loss) from discontinued operations, net | | | — | | | | (.01 | ) | | | 1.29 | | | | — | | | | (.01 | ) | | | (.00 | ) |
| | | | | |
| Basic | | $ | (1.12 | ) | | $ | (.55 | ) | | $ | 2.09 | | | $ | (51.48 | ) | | $ | (.55 | ) | | $ | (.09 | ) |
| | | | | |
| Net income (loss) per diluted common share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) before discontinued operations | | $ | (1.12 | ) | | $ | (.54 | ) | | $ | .80 | | | $ | (51.48 | ) | | $ | (.54 | ) | | $ | (.09 | ) |
| Income (loss) from discontinued operations, net | | | — | | | | (.01 | ) | | | 1.29 | | | | — | | | | (.01 | ) | | | (.00 | ) |
| | | | | |
| Diluted | | $ | (1.12 | ) | | $ | (.55 | ) | | $ | 2.09 | | | $ | (51.48 | ) | | $ | (.55 | ) | | $ | (.09 | ) |
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| * | | Reflects implementation of ASC 260-10-45, which requires unvested shares that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) to be considered participating securities, and therefore are included in computing earnings per share using the two-class method. See Note 1 in Item 1 of Part 1 of this Quarterly Report on Form 10-Q for additional information. |
Equity awards of 9.2 million and 8.9 million were outstanding as of September 30, 2009 and 2008, respectively, but were not included in the computation of diluted earnings per share because to do so would have been antidilutive. Following the merger, Clear Channel stock options and restricted stock automatically ceased to exist and are no longer outstanding.
