US Airways 2007 Annual Report Download - page 87

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
Year Ended December 31,
2007 2006 2005
Share computation (in thousands):
Weighted average common shares outstanding 91,536 86,447 31,488
Dilutive effect of stock awards and warrants 1,017 2,058 —
Assumed conversion of 7.0% senior convertible notes 3,050 5,316 —
Weighted average common shares outstanding as adjusted 95,603 93,821 31,488
Diluted earnings (loss) per share:
Before cumulative effect of change in accounting principle $ 4.52 $ 3.32 $ (10.65)
Cumulative effect of change in accounting principle — 0.01 (6.41)
Net earnings (loss) per share $ 4.52 $ 3.33 $ (17.06)
For the year ended December 31, 2007, 2,772,414 stock options and stock appreciation rights are not included in the computation of
diluted EPS because the exercise prices were greater than the average market price of common stock for the period.
For the year ended December 31, 2006, 1,254,960 stock options and stock appreciation rights are not included in the computation of
diluted EPS because the exercise prices were greater than the average market price of common stock for the period. Also, 34,650
performance-based restricted stock unit awards were excluded as the performance-based provision had not been met as of December 31,
2006. In addition, 1,054,692 incremental shares from assumed conversion of the 7.5% senior convertible notes are not included in the
computation of diluted EPS because of the antidilutive effect on EPS.
For the year ended December 31, 2005, 2,656,804 stock options are not included in the computation of diluted EPS because the
exercise prices were greater than the average market price of common stock for the period. Options to acquire 930,976 common shares
and 3,021,908 warrants issued in conjunction with the AWA ATSB Loan and related transactions are not included in the computation of
diluted EPS because of the antidilutive effect on EPS. In addition, 1,506,141 incremental shares from assumed conversion of the
7% senior convertible notes, 3,860,289 incremental shares from assumed conversion of the 7.5% senior convertible notes and 3,042,555
incremental shares from assumed conversion of the 7.25% senior exchangeable notes are not included in the computation of diluted EPS
because of the antidilutive effect on EPS.
5. Special items, net
Special items, net as shown on the consolidated statements of operations include the following charges (credits) (in millions):
Year Ended December 31,
2007 2006 2005
Airbus restructuring $ — $ (90)(a) $ 57(a)
Merger related transition expenses 99(b) 131(b) 28(b)
Sale leaseback transactions — — 27(c)
Power by the hour program penalties — — 7(d)
Severance due to change in control — — 2(e)
Aircraft returns — — 1(f)
Settlement of bankruptcy claims — (14)(g) —
Other — — (1)
Total $ 99 $ 27 $ 121
85