JetBlue Airlines 2003 Annual Report Download - page 68

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JETBLUE AIRWAYS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 2003
Note 8—Earnings Per Share
The following table shows how we computed basic and diluted earnings per common share for the
years ended December 31 (in thousands, except share data):
2003 2002 2001
Numerator:
Net income applicable to common stockholders for
basic earnings per share ..................... $ 103,898 $ 48,953 $ 21,567
Effect of dilutive securities—preferred stock dividends — 5,955 16,970
Net income applicable to common stockholder after
assumed conversion for diluted earnings per share . . $ 103,898 $ 54,908 $ 38,537
Denominator:
Weighted-average shares outstanding for basic
earnings per share ......................... 97,274,475 67,045,976 4,911,195
Effect of dilutive securities:
Convertible redeemable preferred stock ......... — 20,055,080 61,807,596
Unvested common stock .................... 1,333,408 3,096,878 4,882,671
Employee stock options ..................... 8,932,805 7,455,285 4,320,644
Adjusted weighted-average shares outstanding and
assumed conversions for diluted earnings per share . . 107,540,688 97,653,219 75,922,106
Shares issuable upon conversion of our 31⁄2% convertible notes are excluded from the diluted
earnings per share calculation for the year ended December 31, 2003 since the contingent conditions
for their conversion have not yet been met. Outstanding unvested common stock purchased by certain
of the Company’s management was subject to repurchase by the Company and therefore was not
included in the calculation of the weighted-average shares outstanding for basic earnings per share.
Note 9—Income Taxes
The provision for income taxes consisted of the following for the years ended December 31 (in
thousands):
2003 2002 2001
Current:
Federal ................................. $ 670 $ — $ 5
State .................................. 1,118 457 —
Deferred:
Federal ................................. 56,694 31,560 2,349
State .................................. 13,059 8,099 1,024
Income tax expense ......................... $ 71,541 $ 40,116 $ 3,378
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