JetBlue Airlines 2011 Annual Report Download - page 78

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Note 6—Earnings Per Share
The following table shows how we computed basic and diluted earnings per common share for the years
ended December 31 (dollars in millions; share data in thousands):
2011 2010 2009
Numerator:
Net income .......................................... $ 86 $ 97 $ 61
Effect of dilutive securities:
Interest on convertible debt, net of income taxes and
discretionary profit sharing ......................... 12 11 9
Net income applicable to common stockholders after assumed
conversion for diluted earnings per share ................ $ 98 $ 108 $ 70
Denominator:
Weighted-average shares outstanding for basic earnings per
share ............................................. 278,689 275,364 260,486
Effect of dilutive securities:
Employee stock options .............................. 1,660 2,611 2,972
Convertible debt .................................... 66,118 68,605 68,605
Adjusted weighted-average shares outstanding and assumed
conversions for diluted earnings per share ................ 346,467 346,580 332,063
Shares excluded from EPS calculation (in millions):
Shares issuable upon conversion of our convertible debt since
assumed conversion would be antidilutive ............... — — 9.2
Shares issuable upon exercise of outstanding stock options since
assumed exercise would be antidilutive .................. 22.3 24.0 23.9
As of December 31, 2011, a total of approximately 1.4 million shares of our common stock, which were lent
to our share borrower pursuant to the terms of our share lending agreement as described in Note 2, were issued
and outstanding for corporate law purposes. Holders of the borrowed shares have all the rights of a holder of our
common stock. However, because the share borrower must return all borrowed shares to us (or identical shares
or, in certain circumstances of default by the counterparty, the cash value thereof), the borrowed shares are not
considered outstanding for the purpose of computing and reporting basic or diluted earnings per share.
Note 7—Share-Based Compensation
2011 Incentive Compensation Plan: At our Annual Shareholders Meeting held on May 26, 2011, our
shareholders approved the new 2011 Plan, which replaced the 2002 Plan, which was set to expire at the end of
2011. Upon inception, the 2011 Plan had 15.0 million shares of our common stock reserved for issuance. The
2011 Plan, by its terms, will terminate no later than May 2021. Since adoption of the 2011 Plan, we have only
granted an insignificant amount of restricted stock units.
Crewmember Stock Purchase Plan: In May 2011, our shareholders also approved the new 2011
Crewmember Stock Purchase Plan, or the 2011 CSPP, to replace the original Crewmember Stock Purchase Plan,
which was set to expire in April 2012. The 2011 CSPP has 8.0 million shares of our common stock reserved for
issuance. The 2011 CSPP, by its terms, will terminate no later than the last business day of April 2021. The other
terms of the 2011 CSPP are substantially similar to those of the original CSPP. As of December 31, 2011, there
have been no issuances under the 2011 CSPP.
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