Airtran 2009 Annual Report Download - page 96

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87
The B737 leases require us to remit monthly maintenance deposit payments to the lessor based on actual flight
hours and landings. The balance of such payments, which is capped at any point in time at $2.25 million for
each aircraft, is available to reimburse us for the cost of airframe, engine, and certain other component-part
maintenance. There will be an accounting at the end of each aircraft lease to ascertain if there is any excess
balance of the deposit payments; if so, such excess will be returned to us. These payments are accounted for as
deposits and the aggregate amount of such deposits is included in other assets. As of December 31, 2009 and
2008, the balance of all maintenance deposits for all the B737 leased aircraft and related leased engines
aggregated $55.8 million and $54.2 million, respectively.
We also lease facilities from local airport authorities or other carriers, as well as office space under operating
leases with terms ranging up to 12 years. In addition, we lease spare engines and certain rotable parts under
capital leases.
The amounts applicable to capital leases included in property and equipment were (in thousands):
December 31,
2009 2008
Flight equipment $ 20,302 $ 20,302
Less: Accumulated amortization (2,723)(1,139)
Flight equipment, net $ 17,579 $ 19,163
The following schedule outlines the future minimum lease payments at December 31, 2009, under non-
cancelable operating leases and capital leases with initial terms in excess of one year (in thousands):
Capital
Leases
Operating
Leases
2010 $ 1,981 $ 288,663
2011 1,981 273,385
2012 1,981 271,156
2013 1,981 265,993
2014 1,981 255,532
Thereafter 11,556 1,530,406
Total minimum lease payments 21,461 $ 2,885,135
Less: amount re
p
resentin
g
interest
(
5
,
570
)
Present value of future payments 15,891
Less: current obligations (1,085)
Long-term obligations $ 14,806
Amortization of assets recorded under capital leases is included as “depreciation and amortization” in the
accompanying consolidated statements of operations.
We have variable interests in our aircraft leases. The lessors are trusts established specifically to purchase,
finance and lease aircraft to us. These leasing entities meet the criteria of variable interest entities, as defined by
ASC 810 “Consolidation” (Consolidation Topic). We are generally not the primary beneficiary of the leasing
entities if the lease terms are consistent with market terms at the inception of the lease and do not include a
residual value guarantee, a fixed-price purchase option or similar feature that obligates us to absorb decreases in
value or entitles us to participate in increases in the value of the aircraft. This is the case in the majority of our