SkyWest Airlines 2014 Annual Report Download - page 85

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2014
(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, 2014, 2013 and 2012 (in thousands):
Year Ended December 31,
2014 2013 2012
Numerator:
Net Income (Loss) .......................... $(24,154) $58,956 $51,157
Denominator:
Denominator for basic earnings per-share weighted
average shares ........................... 51,237 51,688 51,090
Dilution due to stock options and restricted stock . . . 734 656
Denominator for diluted earnings per-share weighted
average shares ........................... 51,237 52,422 51,746
Basic earnings (loss) per-share ................. $ (0.47) $ 1.14 $ 1.00
Diluted earnings (loss) per-share ................ $ (0.47) $ 1.12 $ 0.99
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 7), net of tax, for the
periods indicated (in thousands):
Year Ended December 31,
2014 2013 2012
Net Income (Loss) .......................... $(24,154) $58,956 51,157
Proportionate share of other companies foreign
currency translation adjustment, net of tax ....... (1,129) 66 (251)
Unrealized appreciation (depreciation) on marketable
securities, net of tax ....................... (719) (13) 316
Comprehensive income (loss) .................. $(26,002) $59,009 $51,222
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, the Company
has estimated the fair values of these securities utilizing a discounted cash flow analysis as of
December 31, 2014. These analyses consider, among other items, the collateralization underlying the
80