Earnings Per Share

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Basic EPS:
Net income	$	1,693	$	942	$	4,329	$	2,285
Weighted-average common shares outstanding (in thousands)		661,869		719,067		682,337		721,213

Basic EPS	$	2.56	$	1.31	$	6.34	$	3.17

Diluted EPS:
Net income	$	1,693	$	942	$	4,329	$	2,285
Change in fair value of conversion feature on 7.25% convertible senior notes ^(a)		—		—		—		3

Net income for purposes of computing diluted EPS	$	1,693	$	942	$	4,329	$	2,288
Share computation for diluted earnings per share (in thousands):
Weighted-average shares outstanding		661,869		719,067		682,337		721,213
Dilutive effect of stock awards		18,870		16,129		19,423		14,610
Assumed conversion of convertible senior notes		—		—		—		1,277

Weighted average common shares outstanding		680,739		735,196		701,760		737,100

Diluted EPS	$	2.49	$	1.28	$	6.17	$	3.10

The following were excluded from the calculation of diluted EPS (in thousands):
Stock options, SARs and RSUs because inclusion would be antidilutive		1,094		248		667		288

^(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 increased GAAP net income by $3 million for the nine months ended September 30, 2014.