United Airlines 2009 Annual Report Download - page 101

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Table of Contents
In December 2007, the UAL Corporation Board of Directors approved a special distribution of $2.15 per share to holders of UAL common stock. The
distribution, of approximately $257 million, was paid on January 23, 2008 to the holders of record of UAL common stock on January 9, 2008. See Note 17,
“Related Party Transactions,” for additional information regarding this distribution.
UAL is authorized to issue 250 million shares of preferred stock (without par value). UAL was also authorized to issue two shares of junior preferred stock
(par value $0.01 per share) which were issued in 2006 and remained outstanding at December 31, 2009.
(5) UAL Per Share Amounts
As discussed in Note 1(p), “Summary of Significant Accounting Policies—New Accounting Pronouncements,” the Company retrospectively adopted the
ASC 260 Update, effective January 1, 2009.
Basic per share amounts were computed by dividing earnings (loss) available to common stockholders by the weighted-average number of shares of UAL
common stock outstanding. Approximately 0.4 million, 2.0 million and 2.8 million UAL shares remaining to be issued to unsecured creditors and employees
under the bankruptcy plan of reorganization are included in outstanding basic shares for 2009, 2008 and 2007, respectively, as the necessary conditions for
issuance have been satisfied. UAL’s 6% Senior Notes due 2031 (the “6% Senior Notes”), are callable at any time at 100% of par value, and can be redeemed
with either cash or UAL common stock at UAL’s option. These notes are not included in the diluted earnings per share calculation, as it is UAL’s intent to
redeem these notes with cash. The table below represents the reconciliation of the basic earnings (loss) per share to diluted earnings (loss) per share.
(In millions, except per share)
Year Ended December 31,
UAL 2009 2008 2007
Basic earnings (loss) per share:
Net income (loss) $ (651) $ (5,396) $ 360
Preferred stock dividend requirements — (3) (10)
Earnings (loss) available to participating and common stockholders (a) $ (651) $ (5,399) $ 350
Earnings allocated to participating shareholders — — (5)
Earnings (loss) available to common stockholders $ (651) $ (5,399) $ 345
Basic weighted-average shares outstanding 150.7 126.8 117.4
Earnings (loss) per share, basic $ (4.32) $ (42.59) $ 2.94
Diluted earnings (loss) per share:
Earnings (loss) available to common stockholders $ (651) $ (5,399) $ 345
Effect of 2% preferred securities — — 10
Effect of 4.5% Notes — — 44
Earnings (loss) available to common stockholders including the effect of dilutive securities $ (651) $ (5,399) $ 399
Basic weighted-average shares outstanding 150.7 126.8 117.4
Effect of non-vested stock options — — 0.2
Effect of non-vested restricted shares — — 1.1
Effect of 2% preferred securities — — 11.0
Effect of 4.5% Notes — — 20.8
Diluted weighted-average shares outstanding 150.7 126.8 150.5
Earnings (loss) per share, diluted $ (4.32) $ (42.59) $ 2.65
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