Earnings Per Share

6 Months Ended

Jun. 30, 2015

5. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (EPS) (in millions, except share and per share amounts in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2015		2014			2015		2014
Basic EPS:
Net income	$	1,704	$	864		$	2,636	$	1,343
Weighted-average common shares outstanding (in thousands)		688,727		720,600			692,571		722,286

Basic EPS	$	2.47	$	1.20		$	3.81	$	1.86


Diluted EPS:
Net income	$	1,704	$	864		$	2,636	$	1,343
Change in fair value of conversion feature on 7.25% convertible senior notes ^(a)		—		(2	)		—		3

Net income for purposes of computing diluted EPS	$	1,704	$	862		$	2,636	$	1,346
Share computation for diluted earnings per share (in thousands):
Weighted-average shares outstanding		688,727		720,600			692,571		722,286
Dilutive effect of stock awards		18,884		14,167			19,699		13,850
Assumed conversion of convertible senior notes		—		—			—		1,915

Weighted average common shares outstanding		707,611		734,767			712,270		738,051

Diluted EPS	$	2.41	$	1.17		$	3.70	$	1.82

The following were excluded from the calculation of diluted EPS (in thousands):
Stock options, SARs and RSUs because inclusion would be antidilutive		905		582			453		307

^(a)

In March 2014, the Company notified the holders of US Airways Group’s 7.25% convertible senior notes that it had elected to settle all future conversions solely in cash instead of shares of AAG Common Stock in accordance with the related indenture. Thus, the diluted shares included the weighted average impact of the 7.25% convertible senior notes only for the period from January 1, 2014 to March 12, 2014. For purposes of computing diluted earnings per share under GAAP, the Company was required to adjust the numerator by the change in fair value of the conversion feature from March 12, 2014 to May 15, 2014, which decreased GAAP net income by $2 million for the three months ended June 30, 2014 and increased GAAP net income by $3 million for the six months ended June 30, 2014.