United Airlines 2011 Annual Report Download - page 105

Table of Contents
UAL’s 6% Senior Notes due 2031, with a principal amount of $652 million outstanding as of December 31, 2011, can be redeemed, and the $125 million of
UAL’s 8% Contingent Senior Unsecured Notes, which UAL issued in January 2012, are redeemable when issued with either cash or shares of UAL common
stock, or in the case of mandatory redemption, a combination thereof, at UAL’s option. These notes are not included in the diluted earnings per share
calculation because it is UAL’s intent to redeem these notes with cash if UAL were to decide to redeem these notes. See Note 14 for additional information.
During 2011, UAL repurchased at par value approximately $570 million of the $726 million outstanding principal amount of its 4.5% Senior Limited-
Subordination Convertible Notes due 2021 with cash after the notes were put to UAL by the noteholders. For the year ended December 31, 2011, the dilutive
effect of the 4.5% Senior Limited-Subordination Convertible Notes due 2021 was excluded from the diluted earnings per share calculations from the date that
notice was given of the Company’s intent to pay the notes put to it in cash up to the June 30, 2011 repurchase date. However, the dilutive effect of the
remaining shares after the repurchase date was included in the Company’s diluted earnings per share calculations.

The computations of Continental Predecessor’s basic and diluted earnings (loss) per share for the periods Continental had outstanding publicly-traded equity
securities are set forth below (in millions, except per share amounts):








Net income (loss) $441 $(282)
Earnings (loss) available to common stockholders $441 $(282)
Basic weighted-average shares outstanding 140 129
Earnings (loss) per share, basic $ 3.16 $(2.18)

Earnings (loss) available to common stockholders $441 $(282)
Effect of 5% convertible notes 10 —
Effect of 6% convertible junior subordinated debentures 10 —
Effect of 4.5% convertible notes 7 —
Earnings (loss) available to common stockholders including the effect of dilutive securities $ 468 $(282)
Basic weighted-average shares outstanding 140 129
Effect of 4.5% convertible notes 12 —
Effect of 5% convertible notes 9 —
Effect of 6% convertible junior subordinated debentures 4 —
Effect of employee stock options 2 —
Dilutive weighted-average shares outstanding 167 129
Earnings (loss) per share, diluted $ 2.81 $(2.18)
The adjustments to earnings (loss) available to common stockholders are net of the related effect of profit sharing and income taxes, where applicable.
Approximately 2 million and 8 million weighted average options to purchase shares of Continental common stock for the nine months ended September 30,
2010 and the year ended December 31, 2009, respectively, were excluded from the computation of diluted earnings (loss) per share because the effect of
including the options
104