US Airways 2011 Annual Report Download - page 111

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Table of Contents
17. Selected Quarterly Financial Information (unaudited)
Summarized quarterly financial information for 2011 and 2010 is as follows (in millions, except share and per share amounts):
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
2011
Operating revenues $ 2,961 $ 3,503 $ 3,436 $ 3,155
Operating expenses 3,000 3,326 3,256 3,047
Operating income (loss) (39) 177 180 108
Nonoperating expenses, net (75) (85) (83) (92)
Income tax provision (benefit) — — 21 (2)
Net income (loss) (114) 92 76 18
Earnings (loss) per common share:
Basic: $ (0.71) $ 0.57 $ 0.47 $ 0.11
Diluted: $ (0.71) $ 0.49 $ 0.41 $ 0.11
Shares used for computation (in thousands):
Basic 161,890 162,016 162,090 162,115
Diluted 161,890 202,106 201,278 163,222
2010
Operating revenues $ 2,651 $ 3,171 $ 3,179 $ 2,907
Operating expenses 2,661 2,800 2,864 2,802
Operating income (loss) (10) 371 315 105
Nonoperating expenses, net (35) (92) (74) (78)
Income tax provision (benefit) — — 1 (1)
Net income (loss) (45) 279 240 28
Earnings (loss) per common share:
Basic: $ (0.28) $ 1.73 $ 1.49 $ 0.17
Diluted: $ (0.28) $ 1.41 $ 1.22 $ 0.17
Shares used for computation (in thousands):
Basic 161,115 161,292 161,464 161,776
Diluted 161,115 203,809 204,535 202,200
The Company's 2011 and 2010 fourth quarter results were impacted by recognition of the following net special items:
Fourth quarter 2011 operating expenses included $2 million in legal costs incurred in connection with auction rate securities arbitration and $1 million
in Express other special charges.
Fourth quarter 2010 operating expenses included a $6 million non-cash charge related to the decline in value of certain spare parts. Nonoperating
expenses, net included an $11 million settlement gain, offset in part by $5 million in non-cash charges related to the write off of debt issuance costs.
18. Subsequent Event
In February 2012, the Company amended its co-branded credit card agreement with Barclays Bank Delaware. This amendment provides that the $200
million pre-purchase of frequent flier miles previously scheduled to reduce commencing in January 2012 will now be reduced commencing in January 2014
over a period of up to approximately two years. Refer to Note 4(d) for additional information on this agreement.
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