JetBlue Airlines 2005 Annual Report Download - page 66

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Note 8—Earnings (Loss) Per Share
The following table shows how we computed basic and diluted earnings (loss) per common share
for the years ended December 31 (dollars in millions; share data in thousands):
2005 2004 2003
Numerator:
Net income (loss) applicable to common stockholders for
basic earnings (loss) per share ........................ $ (20) $ 46 $ 103
Interest on convertible debt, net of profit sharing and
income taxes ....................................... — — 1
Net income (loss) applicable to common stockholders after
assumed conversion for diluted earnings (loss) per share . $ (20) $ 46 $ 104
Denominator:
Weighted-average shares outstanding for basic earnings
(loss) per share ..................................... 159,889 154,769 145,912
Effect of dilutive securities:
Employee stock options.............................. — 11,403 13,399
Unvested common stock ............................. — 42 2,000
Convertible debt .................................... — — 2,944
Adjusted weighted-average shares outstanding and
assumed conversions for diluted earnings (loss) per
share .............................................. 159,889 166,214 164,255
For the years ended December 31, 2005 and 2004, a total of 20.8 million and 6.2 million shares,
respectively, issuable upon conversion of our convertible debt were excluded from the diluted earnings
per share calculation since the assumed conversion would be anti-dilutive. We also excluded
31.1 million, 7.6 million and 1.3 million shares issuable upon exercise of outstanding stock options for
the years ended December 31, 2005, 2004 and 2003, respectively, from the diluted earnings (loss) per
share computation since their exercise price was greater than the average market price of our common
stock or if they were otherwise anti-dilutive.
Note 9—Income Taxes
The provision (benefit) for income taxes consisted of the following for the years ended
December 31 (in millions):
2005 2004 2003
Current:
Federal...................................................... $ — $ (1) $ 1
State and foreign ............................................. — — 1
Deferred:
Federal...................................................... (4) 28 57
State and foreign ............................................. — 2 12
Income tax expense (benefit)..................................... $ (4) $ 29 $ 71
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