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Reconciliation of Reported Amounts to non-GAAP Financial Measures (unaudited) (in millions, except per
share and per ASM amounts)
Year ended
December 31, Percent
Change2012 2011
Fuel and oil expense, unhedged ............................................. $ 5,963 $ 5,580
Add: Fuel hedge losses included in Fuel and oil expense .......................... 157 64
Fuel and oil expense, as reported ........................................... $ 6,120 $ 5,644
Deduct: Net impact from fuel contracts ........................................ (32) —
Fuel and oil expense, non-GAAP ............................................ $ 6,088 $ 5,644 7.9%
Total operating expenses, as reported ........................................ $ 16,465 $ 14,965
Add (Deduct): Reclassification between Fuel and oil and Other (gains) losses, net,
associated with current period settled contracts ................................ (42) 35
Add (Deduct): Contracts settling in the current period, but for which gains and/or (losses)
have been recognized in a prior period* ...................................... 10 (35)
Deduct: Acquisition and integration costs, net (a) ................................ (183) (132)
Deduct: Asset impairment, net of profitsharing .................................. — (14)
Total operating expenses, non-GAAP ........................................ $ 16,250 $ 14,819 9.7%
Operating income, as reported ............................................. $ 623 $ 693
Add (Deduct): Reclassification between Fuel and oil and Other (gains) losses, net,
associated with current period settled contracts ................................ 42 (35)
Add (Deduct): Contracts settling in the current period, but for which gains and/or (losses)
have been recognized in a prior period* ...................................... (10) 35
Add: Acquisition and integration costs, net (a) .................................. 183 132
Add: Asset impairment, net of profitsharing .................................... — 14
Operating income, non-GAAP .............................................. $ 838 $ 839 (0.1)%
Net income, as reported ................................................... $ 421 $ 178
Add (Deduct): Mark-to-market impact from fuel contracts settling in future periods ..... (221) 21
Add: Ineffectiveness from fuel hedges settling in future periods ..................... 42 33
Add (Deduct): Other net impact of fuel contracts settling in the current or a prior period
(excluding reclassifications) ............................................... (10) 35
Add (Deduct): Income tax impact of fuel contracts ............................... 73 (31)
Add: Acquisition and integration costs, net (b) .................................. 112 85
Add: Asset impairment, net (b) ............................................... — 9
Net income, non-GAAP ................................................... $ 417 $ 330 26.4%
Net income per share, diluted, as reported .................................... $ 0.56 $ 0.23
Add (Deduct): Net impact from fuel contracts ................................... (0.15) 0.07
Add: Impact of special items, net (b) .......................................... 0.15 0.13
Net income per share, diluted, non-GAAP .................................... $ 0.56 $ 0.43 30.2%
Operating expenses per ASM (cents) ........................................ 12.85 12.41
Deduct: Fuel expense divided by ASMs (cents) .................................. (4.78) (4.68)
Deduct: Impact of special items, net (cents) (a) .................................. (0.14) (0.12)
Operating expenses per ASM, non-GAAP, excluding fuel and special items (cents) . . . 7.93 7.61 4.2%
* As a result of prior hedge ineffectiveness and/or contracts marked to market through earnings.
(a) Amounts net of profitsharing impact on charges incurred through March 31, 2011. The Company amended its profitsharing plan during
second quarter 2011 to defer the profitsharing impact of acquisition and integration costs incurred from April 1, 2011, through
December 31, 2013. The profitsharing impact of these costs will be realized in 2014 and beyond.
(b) Amounts net of taxes and profitsharing. See footnote (a) above regarding Acquisition and integration costs.
See previous Note Regarding Use of Non-GAAP Financial Measures.
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