SkyWest Airlines 2012 Annual Report Download - page 85

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2012
(1) Nature of Operations and Summary of Significant Accounting Policies (Continued)
Net Income (Loss) Per Common Share
Basic net income (loss) per common share (‘‘Basic EPS’’) excludes dilution and is computed by
dividing net income (loss) by the weighted average number of common shares outstanding during the
period. Diluted net income (loss) 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 (loss) per common share. During the
years ended December 31, 2012, 2011 and 2010, 3,889,000, 4,323,000 and 4,183,000 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, 2012, 2011and 2010 (in thousands):
Year Ended December 31,
2012 2011 2010
Numerator:
Net Income (Loss) .......................... $51,157 $(27,335) $96,350
Denominator:
Denominator for basic earnings per-share weighted
average shares ........................... 51,090 52,201 55,610
Dilution due to stock options and restricted stock . . . 656 — 916
Denominator for diluted earnings per-share weighted
average shares ........................... 51,746 52,201 56,526
Basic earnings (loss) per-share ................. $ 1.00 $ (0.52) $ 1.73
Diluted earnings (loss) per-share ................ $ 0.99 $ (0.52) $ 1.70
Comprehensive Income (Loss)
Comprehensive income (loss) includes charges and credits to stockholders’ equity that are not the
result of transactions with the Company’s shareholders. Also, comprehensive income (loss) consisted of
net income (loss) plus changes in unrealized appreciation (depreciation) on marketable securities and
unrealized gain (loss) on foreign currency translation adjustment related to the Company’s equity
investment in Trip Linhas Aereas, a regional airline operating in Brazil (‘‘Trip’’) and Mekong Aviation
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