US Airways 2005 Annual Report Download - page 124

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
6. Earning/ loss per common share
Basic earnings (loss) per common share ("EPS") is computed by dividing net income (loss) by the weighted average number of shares of common stock
outstanding during the period. Diluted EPS reflects the maximum dilution that would result after giving effect to all potential dilutive common shares from
stock options, warrants and convertible debt. The number of additional shares is calculated by assuming that outstanding, in-the-money stock options and
warrants were exercised and the proceeds from such exercises were used to buy back shares of common stock at the average market price for the reporting
period. The following table presents the computation of basic and diluted EPS (in millions, except per share amounts):
Year Ended December 31,
2005 2004 2003
Basic earnings (loss) per share:
Income (loss) before cumulative effect of change in accounting principle $ (335) $ (89) $ 57
Cumulative effect of change in accounting principle 202 — —
Net income (loss) $ (537) $ (89) $ 57
Weighted average common shares outstanding 31,487,574 14,860,922 14,252,279
Basic earnings (loss) per share:
Earnings (loss) before cumulative effect of change in accounting principle $ (10.65) $ (5.99) $ 4.03
Cumulative effect of change in accounting principle $ (6.41) — —
Net earnings (loss) per share $ (17.06) $ (5.99) $ 4.03
Diluted earnings (loss) per share:
Income (loss) before cumulative effect of change in accounting principle $ (335) $ (89) $ 57
Cumulative effect of change in accounting principle 202 — —
Net income (loss) (537) (89) 57
Interest expense on 7.5% convertible senior notes — — 11
Interest expense on 7.25% senior exchangeable notes — — 3
Income (loss) for purposes of computing diluted net income (loss) per share $ (537) $ (89) $ 71
Share computation:
Weighted average common shares outstanding 31,487,574 14,860,922 14,252,279
Assumed exercise of stock options and warrants — — 4,111,028
Assumed conversion of 7.5% convertible senior notes — — 3,365,109
Assumed conversion of 7.25% senior exchangeable notes — — 1,418,159
Weighted average common shares outstanding as adjusted 31,487,574 14,860,922 23,146,575
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