Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2013

Earnings (Loss) Per Share

NOTE 3—EARNINGS (LOSS) PER SHARE

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013		2012
Basic earnings (loss) per share:
Net income (loss)	$	469		$	339		$	52	$	(109	)
Less: Income allocable to participating securities		(1	)		(1	)		—		—
Earnings (loss) available to common stockholders	$	468		$	338		$	52	$	(109	)
Basic weighted average shares outstanding		341			331			337		331
Earnings (loss) per share, basic	$	1.37		$	1.02		$	0.15	$	(0.33	)
Diluted earnings (loss) per share:
Earnings (loss) available to common stockholders	$	468		$	338		$	52	$	(109	)
Effect of convertible notes		11			11			—		—
Earnings (loss) available to common stockholders including the effect of dilutive securities	$	479		$	349		$	52	$	(109	)
Diluted shares outstanding:
Basic weighted-average shares outstanding		341			331			337		331
Effect of convertible notes		53			61			—		—
Effect of employee stock options		—			1			—		—
Diluted weighted-average shares outstanding		394			393			337		331
Earnings (loss) per share, diluted	$	1.21		$	0.89		$	0.15	$	(0.33	)
Potentially dilutive shares excluded from diluted per share amounts:
Restricted stock and stock options		3			5			3		7
Convertible notes		—			—			57		61

During the second quarter of 2013, UAL issued approximately 22 million shares of UAL common stock pursuant to agreements that UAL entered into with certain of its securityholders in exchange for approximately $189 million in aggregate principal amount of UAL’s outstanding 6% convertible senior notes due 2029 held by such securityholders. The newly issued shares of UAL common stock are included in the determination of basic weighted average shares outstanding for the three and six months ended June 30, 2013. The Company retired the 6% convertible senior notes acquired in the exchange.