SkyWest Airlines 2003 Annual Report Download - page 42

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The calculation of the weighted average number of common shares outstanding for Basic EPS and Diluted EPS are as follows for
the years ended December 31, 2003, 2002 and 2001 (in thousands):
Year Ended December 31,
2003 2002 2001
Numerator:
Numerator for earnings per share - before
c
w
c
c
umulative effect of accounting change $ 66,787 $ 78,277 $ 50,516
Denominator:
Denominator for basic earnings per-share
eighted average shares 57,745 57,229 56,365
Denominator for diluted earnings per-share
weighted average shares 58,127 57,551 57,237
Basic earnings per-share before
umulative effect of accounting change 1.16 1.37 0.90
Diluted earnings per -share before
umulative effect of accounting change 1.15 1.36 0.88
Stock Options
The Company applies Accounting Principles Board Opinion No. 25 and related interpretations in accounting for its stock-based
compensation plans. SFAS No. 123, Accounting for Stock-Based Compensation, requires pro forma information regarding net
income and net income per share as if the Company had accounted for its stock options under the fair value method of the
statement which is described more fully in note 5. The Company did not have any stock-based compensation for the years ended
December 31, 2003, 2002 and 2001.
The following table contains the pro forma disclosures and the related impact on net income and net income per share (in
thousands, except per share information):
Year Ended December 31,
2003 2002 2001
Net income:
As reported $ 66,787 $ 86,866 $ 50,516
Pro forma $ 59,108 $ 78,454 $ 46,114
Net income per common share:
Diluted as reported $ 1.15 $ 1.51 $ 0.88
Diluted pro forma $ 1.02 $ 1.36 $ 0.81
Basic as reported $ 1.16 $ 1.52 $ 0.90
Basic pro forma $ 1.02 $ 1.37 $ 0.82
Comprehensive Income
The Company reports comprehensive income in accordance with Statement of Financial Accounting Standards (“SFAS”)
Statement No. 130, Reporting Comprehensive Income, which establishes standards for reporting and displaying comprehensive
income and its components in financial statements. Comprehensive income includes charges and credits to stockholders’ equity
that is not the results of transactions with shareholders. As of December 31, 2003 and 2002, accumulated other comprehensive
39