Airtran 2001 Annual Report Download - page 34

Because our net deferred tax assets are offset in full by avaluation allowance, there is no tax effect of the unrealized loss.
An analysis of the amounts included in "Accumulated other comprehensive loss," is shown below:
(In lhousands)
Balance at
December 31, 2000
January 1, 2001 transition adjustment
2001 changes in fair value
Reclassification
to earnings
Balance at December 311 2001
10. Earnings (Loss) Per Common Share
The following table sets forth the computation of basic and diluted earnings (loss) per common share:
$
1,273
(10,097)
1,978
$
(6,846)
(In thousands, except per share data) 2001 2000 1999
Numerator:
Net income Ooss) $ (2,757) $47,436 $(99,394)
Denominator:
Weighted-average shares outstanding, basic
67,774
65,759 65,097
Effect
of dilutive stock options 3,416
Adjusted weighted-average shares outstanding, diluted
67,774
69,175 65,097
Basic earnings (loss)
per common share $ (0.04)
S0,72 S(1,53)
Diluted earnings (loss)
per common share $ (0.04)
S0,69 S(1,53)
The
assumed conversions of all stock options and convertible debt in 2001, 2.3 million stock options in 2000 and all stock options in 1999, were
antidilutive
and excluded from the computation of weighted-average shares outstanding used in computing diluted earnings Ooss) per common share.
11.
Stock Option Plans
The 1993 Incentive Stock Option Plan provides up to 4.8 million options to be granted to offICers, directors and key employees to purchase shares
of common stock at prices not less than the fair value of the shares on the dates of grant. With respect to individuals owning more than 10 percent
of the voting power of all classes of our common stock, the exercise price per share shall not be less than 110 percent of the fair value of the shares
on the
date of grant. The 1994 Stock Option Plan provides up to 4million incentive stock options or nonqualified options to be granted to our officers,
directors, key employees
and consultants. The 1996 Stock Option Plan provides up to 5million incentive stock options or nonqualified options to be
granted to our officers, directors, key employees and consultants.
In connection with the acquisition of Airways Corporation (Airways) in 1997, we assumed the Airways Corporation 1995 Stock Option Plan (Airways
Plan) and the Airways Corporation 1995 Director
Stock Option Plan (Airways DSOP). Under the Airways Plan, up to 1.2 million incentive stock options
or nonqualifled options may be granted to our OffICers, directors, key employees or consultants. Under the Airways DSDP, up to 150,000 nonquaHfied
options
may be granted to directors.
On August 6, 2001, we reached an agreement with the National Pilots Association under which our pilots were granted 900,000 options as of that
date and will be granted additional options in 2002 through 2004 based on certain criteria. All options vest over three years.
Vesting
and term of all options is determined by the Board of Directors and may vary by optionee; however, the term may be no longer than 10 years
from the
date of grant.
Pro forma information regarding net income (loss)
and earnings (loss) per common share is required by SFAS 123, which also requires that the
information
be determined as if we had accounted for our employee stock options granted subsequent to December 31, 1994, under the fair value
method of that statement. The fair value for these options was estimated at the date of grant using the Black-Scholes option pricing model with the
following
weighted~average assumptions for 2001, 2000 and 1999, respectively: risk-free interest rates of 4.31 percent, 6.2 percent and 5.0 percent;
no dividend yields; volatility factors of the expected market price of our common stock of 0.666, 0.596 and 0.648; and aweighted-average expected
life
of the options of 5years.