Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2012

Earnings (Loss) Per Share

NOTE 6 - EARNINGS (LOSS) PER SHARE

The computations of UAL’s basic and diluted earnings (loss) per share and the number of securities that have been excluded from the computation of diluted earnings per share amounts because they were antidilutive are set forth below (in millions, except per share amounts):

	2012		2011		2010
Basic earnings (loss) per share:
Net income (loss)	$	(723)	$	840	$	253
Less: Income allocable to participating securities		—		(3)		(1)
Earnings (loss) available to common stockholders	$	(723)	$	837	$	252
Basic weighted-average shares outstanding		331		329		207
Earnings (loss) per share, basic	$	(2.18)	$	2.54	$	1.22
Diluted earnings (loss) per share:
Earnings (loss) available to common stockholders	$	(723)	$	837	$	252
Effect of UAL 6% senior convertible notes		—		18		18
Effect of Continental 4.5% convertible notes		—		9		2
Effect of Continental 5% convertible notes		—		—		1
Earnings (loss) available to common stockholders including the effect of dilutive securities	$	(723)	$	864	$	273
Basic weighted-average shares outstanding		331		329		207
Effect of UAL 6% senior convertible notes		—		40		40
Effect of Continental 4.5% convertible notes		—		12		3
Effect of employee stock options		—		2		2
Effect of Continental 5% convertible notes		—		—		1
Diluted weighted-average shares outstanding		331		383		253
Earnings (loss) per share, diluted	$	(2.18)	$	2.26	$	1.08
Potentially dilutive shares excluded from diluted per share amounts:
UAL 6% senior convertible notes		40		—		—
Continental 4.5% convertible notes		12		—		—
UAL 4.5% senior limited-subordination convertible notes		5		11		22
Stock options		4		5		9
Continental 6% convertible junior subordinated debentures		4		4		1
Restricted shares		1		1		—
UAL 5% senior convertible notes		—		—		3
		66		21		35

The adjustments to earnings (loss) available to common stockholders are net of the related effect of profit sharing and income taxes, where applicable.

Continental Predecessor

The computations of Continental Predecessor’s basic and diluted earnings per share for the periods Continental had outstanding publicly-traded equity securities are set forth below (in millions, except per share amounts):

	Nine Months Ended September 30, 2010
Basic earnings per share:
Net income	$	441
Earnings available to common stockholders	$	441
Basic weighted-average shares outstanding		140
Earnings per share, basic	$	3.16
Diluted earnings per share:
Earnings available to common stockholders	$	441
Effect of 5% convertible notes		10
Effect of 6% convertible junior subordinated debentures		10
Effect of 4.5% convertible notes		7
Earnings available to common stockholders including the effect of dilutive securities	$	468
Basic weighted-average shares outstanding		140
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
Earnings per share, diluted	$	2.81

The adjustments to earnings available to common stockholders are net of the related effect of profit sharing and income taxes, where applicable.

Approximately two million weighted average options to purchase shares of Continental common stock for the nine months ended September 30, 2010 were excluded from the computation of diluted earnings per share because the effect of including the options would have been antidilutive.