Alaska Airlines and Horizon Air 2007 Annual Report Download - page 47

officers, or stockholders. The amounts involved
are below disclosure thresholds set by the SEC,
or the executive officer or director or his or her
family member does not have a direct or indirect
material interest, as that term is used in SEC
rules, in the transaction.
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act
of 1934 requires the Company’s directors and
certain of its officers to send reports of their
ownership of Company common stock and
changes in such ownership to the SEC and the
NYSE. The Company assists its directors and
officers by preparing forms for filing. SEC
regulations also require the Company to identify
in this proxy statement any person subject to
this requirement who failed to file a report on a
timely basis. Based on a review of copies of
reports furnished to the Company and written
representations that no other reports were
required, the Company believes that everyone
subject to Section 16(a) filed the required
reports on a timely basis during 2007.
INDEPENDENT AUDITORS
Selection of Independent Auditors for the
Current Fiscal Year
The Audit Committee of the Board of
Directors has selected KPMG LLP (“KPMG”) as
the Company’s independent auditors for the
current fiscal year. Representatives of KPMG are
expected to attend the meeting to respond to
questions from stockholders and will have the
opportunity to make a statement, if they wish to
do so.
Fees Paid to Independent Auditors
During fiscal years 2007 and 2006, the
Company retained KPMG as its principal
auditors. The independent auditors provided
services in the following categories and
amounts:
2007 KPMG LLP
Audit Fees for the Company’s
Annual Financial Statements
and Quarterly Reviews(1) $1,212,523
Audit-Related Fees(2) 155,000
Tax Fees(3) 24,159
All Other Fees(4) 33,000
Total Fees for 2007 $1,424,682
2006 KPMG LLP
Audit Fees for the Company’s
Annual Financial Statements
and Quarterly Reviews(1) $1,219,139
2006 KPMG LLP
Audit-Related Fees(2) 175,718
Tax Fees(3) 25,446
All Other Fees(4) 34,417
Total Fees for 2006 $1,454,720
(1) Audit fees represent the arranged fees for the
years presented, including the annual audit of
internal controls as mandated under Sarbanes-
Oxley Section 404.
(2) Consists of fees paid in connection with the audit
of Air Group’s employee benefit plans in both
years.
(3) Consists of fees paid for professional services in
connection with tax consulting related to specific
aircraft leasing and acquisition matters. These
services were pre-approved by the Audit
Committee.
(4) Consists of fees paid for professional services in
connection with (i) the audit of passenger facility
charges and examination of related controls,
(ii) the examination of agreed-upon procedures for
the U.S. Citizenship and Immigration Services,
and (iii) agreed-upon procedures regarding Air
Group’s employee incentive pay plans.
The Audit Committee has considered
whether the provision of the non-audit services
referenced above is compatible with maintaining
the independence of the Company’s independent
auditors, and has determined that it does not
impact the independence of the auditors.
ŠProxy
31