Delta Airlines 2003 Annual Report Download - page 130

Table of Contents
officers to the 11 member Board of Managers of Orbitz, which enabled us to participate in Orbitz's financial and operating decisions.
During December 2003, Orbitz completed its initial public offering and the founding airlines of Orbitz, including us, sold a portion of their Orbitz shares. We
received $33 million in cash from our sale of Orbitz shares. Additionally, we recorded (1) a SAB 51 gain of $18 million, net of tax, in additional paid-in
capital on our Consolidated Balance Sheet (see Note 1 for our SAB 51 accounting policy); (2) a $28 million gain ($17 million net of tax) in other income
(expense) on our Consolidated Statement of Operations resulting from our sale of Orbitz shares; and (3) a $4 million loss ($2 million net of tax) in other
income (expense) on our Consolidated Statement of Operations resulting from previously unrecognized Orbitz losses since our recorded investment in Orbitz
was zero prior to its initial public offering.
Upon completion of the transactions discussed above, we have a 13% ownership interest in Orbitz and an 18% voting interest. We continue to account for this
investment under the equity method due to, among other things, our continuing 18% voting interest and our right to appoint one of our senior officers to the
nine member Board of Directors of Orbitz, which enables us to exercise significant influence over Orbitz's financial and operating decisions. At December 31,
2003, our investment in Orbitz was $21 million and is recorded in investments in associated companies on our Consolidated Balance Sheet. At December 31,
2002, our investment balance was zero since our equity investment had been reduced to zero as a result of our share of Orbitz's net losses.
Note 18. Earnings (Loss) per Share
We calculate basic earnings (loss) per share by dividing the net income (loss) available to common shareowners by the weighted average number of common
shares outstanding. Diluted earnings (loss) per share includes the dilutive effects of stock options and convertible securities. To the extent stock options and
convertible securities are anti-dilutive, they are excluded from the calculation of diluted earnings (loss) per share. The following table shows our computation
of basic and diluted loss per share:
Years Ended December 31,
(in millions, except per share data) 2003 2002 2001
Basic and diluted:
Net loss $ (773) $ (1,272) $ (1,216)
Dividends on allocated Series B ESOP Convertible Preferred Stock (17) (15) (14)
Net loss available to common shareowners $ (790) $ (1,287) $ (1,230)
Weighted average shares outstanding 123.4 123.3 123.1
Basic and diluted loss per share $ (6.40) $ (10.44) $ (9.99)
For the years ended December 31, 2003, 2002 and 2001, we excluded from the diluted loss per share computation (1) 37.3 million, 54.5 million and 44.3
million stock options, respectively, because the exercise price of the options was greater than the average price of our common stock; (2) 7.3 million, 6.9
million and 6.5 million additional shares that may be issued in certain circumstances, respectively, because their effect on loss per share was anti-dilutive; and
(3) the
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