SkyWest Airlines 2010 Annual Report Download - page 83
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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2010
(1) Nature of Operations and Summary of Significant Accounting Policies (Continued)
Income Taxes
The Company recognizes a liability or asset for the deferred tax consequences of all temporary
differences between the tax basis of assets and liabilities and their reported amounts in the consolidated
financial statements that will result in taxable or deductible amounts in future years when the reported
amounts of the assets and liabilities are recovered or settled.
Net Income Per Common Share
Basic net income per common share (‘‘Basic EPS’’) excludes dilution and is computed by dividing
net income by the weighted average number of common shares outstanding during the period. Diluted
net income per common share (‘‘Diluted EPS’’) reflects the potential dilution that could occur if stock
options or other contracts to issue common stock were exercised or converted into common stock. The
computation of Diluted EPS does not assume exercise or conversion of securities that would have an
anti-dilutive effect on net income per common share. During the years ended December 31, 2010, 2009
and 2008, 4,183,000, 4,356,000 and 3,665,000 shares reserved for issuance upon the exercise of
outstanding options were excluded from the computation of Diluted EPS respectively, as their inclusion
would be anti-dilutive.
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, 2010, 2009 and 2008 (in thousands):
Year Ended December 31,
2010 2009 2008
Numerator:
Numerator for earnings per share ............................ $96,350 $83,658 $112,929
Denominator:
Denominator for basic earnings per-share weighted average shares .... 55,610 55,854 57,790
Dilution due to stock options and restricted stock ................ 916 960 843
Denominator for diluted earnings per-share weighted average shares . . . 56,526 56,814 58,633
Basic earnings per-share ................................... $ 1.73 $ 1.50 $ 1.95
Diluted earnings per-share ................................. $ 1.70 $ 1.47 $ 1.93
Comprehensive Income
Comprehensive income includes charges and credits to stockholders’ equity that are not the result
of transactions with shareholders. Also, comprehensive income consisted of net income plus changes in
unrealized appreciation (depreciation) on marketable securities and on the Company’s proportionate
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