SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

Common Stock Repurchase

In September 2012, the Board of Directors authorized a $250 million share repurchase program, which does not have an expiration date, but is expected to be completed by the end of December 2014. In February 2012, the Board of Directors authorized a $50 million share repurchase program, which was completed in September 2012. In June 2011, the Board of Directors authorized a $50 million share repurchase program, which was completed in January 2012.

Share repurchase activity (in millions, except share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
2012 Repurchase Program - $250 million	544,597	$	32	—	$	—	917,782	$	51	—	$	—
2012 Repurchase Program - $50 million	—	—		506,000	18		—	—		709,000	24
2011 Repurchase Program - $50 million	—	—		—	—		—	—		46,340	2
Total	544,597	$	32	506,000	$	18	917,782	$	51	755,340	$	26

Accumulated Other Comprehensive Loss

Components of accumulated other comprehensive income (loss) (in millions):

	June 30, 2013			December 31, 2012
Marketable securities	$	(2	)	$	7
Employee benefit plans	(409		)	(423		)
Interest rate derivatives	(13		)	(20		)
Total	$	(424	)	$	(436	)

Earnings Per Share (EPS)

Diluted EPS is calculated by dividing net income by the average common shares outstanding plus additional common shares that would have been outstanding assuming the exercise of in-the-money stock options and restricted stock units, using the treasury-stock method. For the three and six months ended June 30, 2013 and 2012, anti-dilutive shares excluded from the calculation of EPS were not material.

Quarterly Cash Dividend

On July 11, 2013, Air Group's Board of Directors (the Board) declared a $0.20 per share dividend to be paid on Aug. 22, 2013, to all shareholders of record as of August 6, 2013. The Board determined the amount of the dividend by considering the company's track record of profitability, current outlook, committed and planned capital spending, the company's current financial position and overall capital allocation strategy, and prospects for increasing the dividend over the long-term. The quarterly dividend will be paid using operating cash flow and existing cash on hand.