Delta Airlines 2011 Annual Report Download - page 94

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NOTE 16. EARNINGS (LOSS) PER SHARE
We calculate basic earnings (loss) per share by dividing the net income (loss) by the weighted average number of common shares outstanding. Shares
issuable upon the satisfaction of certain conditions are considered outstanding and included in the computation of basic earnings (loss) per share. Accordingly,
the calculation of basic earnings (loss) per share for the years ended December 31, 2011, 2010 and 2009 assumes there was outstanding at the beginning of
each of these periods all 386 million shares of Delta common stock contemplated by Delta's Plan of Reorganization to be distributed to holders of allowed
general, unsecured claims and nine million shares of Delta common stock reserved for issuance in exchange for shares of Northwest common stock that, but
for our merger with Northwest Airlines in 2008, would have been issued under Northwest's Plan of Reorganization. Similarly, the calculation of basic loss per
share for the year ended December 31, 2009 assumes there was outstanding at January 1, 2009, 50 million shares of Delta common stock we agreed to issue
on behalf of pilots in connection with the merger.
The following table shows our computation of basic and diluted earnings (loss) per share:
Year Ended December 31,
(in millions, except per share data) 2011 2010 2009
Net income (loss) $ 854 $ 593 $ (1,237)
Basic weighted average shares outstanding 838 834 827
Dilutive effects of share based awards 6 9 —
Diluted weighted average shares outstanding 844 843 827
Basic earnings (loss) per share $ 1.02 $ 0.71 $ (1.50)
Diluted earnings (loss) per share $ 1.01 $ 0.70 $ (1.50)
Antidilutive common stock equivalents excluded from diluted earnings (loss) per share 17 22 35
NOTE 17. QUARTERLY FINANCIAL DATA (UNAUDITED)
The following table summarizes our unaudited results of operations on a quarterly basis. The quarterly earnings (loss) per share amounts for a year will
not add to the earnings (loss) per share for that year due to the weighting of shares used in calculating per share data.
Three Months Ended
(in millions, except per share data) March 31 June 30(1) September 30(2)(3) December 31(2)
2011
Operating revenue $ 7,747 $ 9,153 $ 9,816 $ 8,399
Operating income (loss) (92) 481 860 726
Net income (loss) (318) 198 549 425
Basic earnings (loss) per share (0.38) 0.24 0.66 0.51
Diluted earnings (loss) per share (0.38) 0.23 0.65 0.50
2010
Operating revenue $ 6,848 $ 8,168 $ 8,950 $ 7,789
Operating income 68 852 1,003 294
Net income (loss) (256) 467 363 19
Basic earnings (loss) per share (0.31) 0.56 0.43 0.02
Diluted earnings (loss) per share (0.31) 0.55 0.43 0.02
(1) During the June 2011 quarter, we recorded $144 million of charges related to severance and related costs and our facilities consolidation and fleet assessments.
(2) During the September 2011 quarter, we recorded $208 million of fuel hedge losses for mark-to-market adjustments recorded in periods other than the settlement period and in the
December 2011 quarter, we recorded $164 million of fuel hedge gains for mark-to-market adjustments recorded in periods other than the settlement period.
(3) During the September 2010 quarter, we recorded (1) a $360 million loss associated with the primarily non-cash loss on extinguishment of debt, including the write-off of unamortized debt
discount and (2) a $146 million charge related to the Comair fleet reduction initiative.
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