SkyWest Airlines 2013 Annual Report Download - page 82

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2013
(1) Nature of Operations and Summary of Significant Accounting Policies (Continued)
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, 2013, 2012and 2011 (in thousands):
Year Ended December 31,
2013 2012 2011
Numerator:
Net Income (Loss) .......................... $58,956 $51,157 $(27,335)
Denominator:
Denominator for basic earnings per-share weighted
average shares ........................... 51,688 51,090 52,201
Dilution due to stock options and restricted stock . . . 734 656 —
Denominator for diluted earnings per-share weighted
average shares ........................... 52,422 51,746 52,201
Basic earnings (loss) per-share ................. $ 1.14 $ 1.00 $ (0.52)
Diluted earnings (loss) per-share ................ $ 1.12 $ 0.99 $ (0.52)
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
Joint Stock Company, an airline operating in Vietnam (‘‘Air Mekong’’) (see note 8), net of tax, for the
periods indicated (in thousands):
Year Ended December 31,
2013 2012 2011
Net Income (Loss) .......................... $58,956 51,157 $(27,335)
Proportionate share of other companies foreign
currency translation adjustment, net of tax ....... 66 (251) (295)
Unrealized appreciation (depreciation) on marketable
securities, net of tax ....................... (13) 316 534
Comprehensive income (loss) .................. $59,009 $51,222 $(27,096)
Fair Value of Financial Instruments
The carrying amounts reported in the consolidated balance sheets for receivables and accounts
payable approximate fair values because of the immediate or short-term maturity of these financial
instruments. Marketable securities are reported at fair value based on market quoted prices in the
consolidated balance sheets. If quoted prices in active markets are no longer available and the
Company has estimated the fair values of these securities utilizing a discounted cash flow analysis as of
December 31, 2013. These analyses consider, among other items, the collateralization underlying the
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