Alaska Airlines and Horizon Air 2007 Annual Report Download - page 194

NOTE 15. OPERATING SEGMENT INFORMATION
SFAS No. 131, Disclosures about Segments of
an Enterprise and Related Information,as
amended (SFAS 131), requires that a public
company report annual and interim financial and
descriptive information about its reportable
operating segments. Operating segments, as
defined, are components of an enterprise about
which separate financial information is available
that is evaluated regularly by the chief operating
decision-maker in deciding how to allocate
resources and in assessing performance. The
Company has two primary operating and
reporting segments, consisting of Alaska and
Horizon. These segments are more fully
described in Note 1 under Nature of Operations.
Financial information for Alaska and Horizon
follows (in millions):
2007 2006 2005
Operating revenues:
Alaska—mainline(1) .............................. $2,788.5 $2,676.1 $2,399.2
Alaska—purchased capacity(1) ..................... 281.4 16.4 16.9
Total Alaska .................................... $3,069.9 $2,692.5 $2,416.1
Horizon ........................................ 718.4 644.0 556.4
Other(2) ....................................... 1.1 1.1 1.1
Elimination of inter-company revenues ................ (283.4) (3.2) 1.7
Consolidated ................................... 3,506.0 3,334.4 2,975.3
Depreciation and amortization expense:
Alaska(3) ...................................... 142.3 137.8 125.4
Horizon ........................................ 33.9 18.5 16.8
Other(2) ....................................... 1.2 1.2 1.2
Consolidated ................................... 177.4 157.5 143.4
Interest income:
Alaska(3) ...................................... 64.8 56.3 32.5
Horizon ........................................ 4.5 3.7 1.6
Other(2) ....................................... —— 0.2
Elimination of inter-company accounts ................ (15.4) (5.7) (3.4)
Consolidated ................................... 53.9 54.3 30.9
Interest expense:
Alaska(3) ...................................... 86.2 73.3 51.2
Horizon ........................................ 16.6 7.4 5.5
Other(2) ....................................... 0.6 3.0 9.7
Elimination of inter-company accounts ................ (15.4) (5.7) (3.4)
Consolidated ................................... 88.0 78.0 63.0
Income (loss) before income tax and accounting change:
Alaska—mainline ................................ 237.4 (94.3) 122.3
Alaska—purchased capacity ....................... (21.4) 2.1 1.9
Total Alaska .................................... 216.0 (92.2) 124.2
Horizon ........................................ (10.6) 11.7 26.4
Other(2) ....................................... (3.8) (7.3) (13.4)
Consolidated ................................... 201.6 (87.8) 137.2
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