American Airlines 2004 Annual Report Download - page 78

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75
13. Loss Per Share
The following table sets forth the computation of basic and diluted loss per share (in millions, except per share
amounts):
Year Ended December 31,
2004 2003 2002
Numerator:
Numerator for loss per share – loss before
cumulative effect of accounting change $ (761) $ (1,228) $ (2,523)
Denominator:
Denominator for basic and diluted loss per
share – weighted-average shares 161 158 156
Basic and diluted loss per share before cumulative
effect of accounting change $ (4.74) $ (7.76) $ (16.22)
For the years ended December 31, 2004, 2003 and 2002, approximately 52 million, 31 million and four million
potential dilutive shares, respectively, were not added to the denominator because inclusion of such shares would
be antidilutive.
In October 2004, the Financial Accounting Standards Board ratified the consensus on EITF Issue No. 04-08, “The
Effect of Contingently Convertible Debt on Diluted Earnings Per Share,” (EITF 04-08). EITF 04-08 is effective for
periods ending after December 15, 2004 and requires shares issuable upon conversion of the 4.50 Notes and
4.25 Notes to be included in the calculation of fully diluted earnings per share unless the inclusion of such shares
would be antidilutive.
14. Segment Reporting
The Company's operations of American and AMR Eagle are treated as an integrated route network and the route
scheduling system maximizes the operating results of the Company. The Company's chief operating decision
maker makes resource allocation decisions to maximize the Company's consolidated financial results. Based on
the way the Company treats the network and the manner in which resource allocation decisions are made, the
Company has only one operating segment for financial reporting purposes consisting of the operations of
American and AMR Eagle.
American is the largest scheduled passenger airline in the world. At the end of 2004, American provided
scheduled jet service to approximately 150 destinations throughout North America, the Caribbean, Latin America,
Europe and the Pacific. American is also one of the largest scheduled air freight carriers in the world, providing a
full range of freight and mail services to shippers throughout its system. AMR Eagle owns two regional airlines,
which do business as "American Eagle” - American Eagle Airlines, Inc. and Executive Airlines, Inc. The American
Eagle carriers provide connecting service from eight of American's high-traffic cities to smaller markets throughout
the United States, Canada, and the Caribbean.