US Airways 2010 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2010 US Airways annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 169

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169

Table of Contents
3. Earnings (Loss) Per Common Share
Basic earnings (loss) per common share ("EPS") is computed on the basis of the weighted average number of shares of common stock
outstanding during the period. Diluted EPS is computed on the basis of the weighted average number of shares of common stock plus the
effect of potentially dilutive shares of common stock outstanding during the period using the treasury stock method. Potentially dilutive
shares include outstanding employee stock options, employee stock appreciation rights ("SARs"), employee restricted stock units
("RSUs") and convertible debt. The following table presents the computation of basic and diluted EPS (in millions, except share and per
share amounts):
Year Ended December 31,
2010 2009 2008
Basic earnings (loss) per share:
Net income (loss) $ 502 $ (205) $ (2,215)
Weighted average common shares outstanding (in thousands) 161,412 133,000 100,168
Basic earnings (loss) per share $ 3.11 $ (1.54) $ (22.11)
Diluted earnings (loss) per share:
Net income (loss) 502 (205) (2,215)
Interest expense on 7.25% convertible senior notes 23 — —
Income (loss) for purposes of computing diluted earnings (loss) per share $ 525 $ (205) $ (2,215)
Share computation (in thousands):
Weighted average common shares outstanding 161,412 133,000 100,168
Dilutive effect of stock awards 1,973 — —
Assumed conversion of 7.25% convertible senior notes 37,746 — —
Weighted average common shares outstanding as adjusted 201,131 133,000 100,168
Diluted earnings (loss) per share $ 2.61 $ (1.54) $ (22.11)
For the year ended December 31, 2010, 1,803,093 shares underlying stock options, SARs and RSUs were not included in the
computation of diluted EPS because inclusion of such shares would be antidilutive and 4,127,992 SARs were not included in the
computation of diluted EPS because their exercise prices were greater than the average market price of common stock for the period. In
addition, 2,328,787 incremental shares from the assumed conversion of the 7% Senior Convertible Notes (the "7% notes") were excluded
from the computation of diluted EPS due to their antidilutive effect.
For the year ended December 31, 2009, 4,806,237 shares underlying stock options, SARs and RSUs were not included in the
computation of diluted EPS because inclusion of such shares would be antidilutive and 6,673,505 SARs were not included in the
computation of diluted EPS because their exercise prices were greater than the average market price of common stock for the period. In
addition, 3,048,914 incremental shares from the assumed conversion of the 7% notes and 23,954,303 incremental shares from the
assumed conversion of the 7.25% Convertible Senior Notes (the "7.25% notes") were excluded from the computation of diluted EPS due
to their antidilutive effect.
For the year ended December 31, 2008, 3,246,159 shares underlying stock options, SARs and RSUs were not included in the
computation of diluted EPS because inclusion of such shares would be antidilutive and 4,935,181 SARs were not included in the
computation of diluted EPS because their exercise prices were greater than the average market price of common stock for the period. In
addition, 3,048,914 incremental shares from assumed conversion of the 7% notes were excluded from the computation of diluted EPS due
to their antidilutive effect.
83