Alaska Airlines and Horizon Air 2009 Annual Report Download - page 171

Gross unrealized gains and losses at December 31, 2008 are presented in the table below (in millions):
Unrealized Losses Net
Unrealized
Losses/Gains
in AOCI
Fair Value of
Securities with
Unrealized
Losses
Unrealized
Gains
Less than
12 months
Greater than
12 months Total
U.S. Government Securities ..... $10.5 $ — $ — $ — $ 10.5 $ —
Asset-backed obligations ....... 0.7 (9.3) (2.4) (11.7) (11.0) 138.6
Other corporate obligations ..... 1.8 (4.3) (1.0) (5.3) (3.5) 154.8
Total ................... $13.0 $(13.6) $(3.4) $(17.0) $ (4.0) $293.4
NOTE 6. LONG-TERM DEBT
At December 31, 2009 and 2008, long-term debt obligations were as follows (in millions):
2009 2008
Fixed-rate notes payable due through 2024* ........................... $1,440.2 $1,458.9
Variable-rate notes payable due through 2024* ......................... 415.0 267.4
Bank line-of-credit facility expiring in 2010* ............................ —75.0
Pre-delivery payment facility expiring in 2011* .......................... —39.9
Long-term debt ................................................... 1,855.2 1,841.2
Less current portion ............................................... (156.0) (244.9)
$1,699.2 $1,596.3
* The weighted-average fixed-interest rate was 6.0% and 6.1% as of December 31, 2009 and 2008, respectively. The weighted-
average variable-interest rate, including the interest rate on the pre-delivery payment and bank line-of-credit facilities, was 2.5%
and 4.0% as of December 31, 2009 and 2008, respectively.
At December 31, 2009, all of the Company’s
borrowings were secured by flight equipment.
Alaska has an $80 million variable-rate revolving
pre-delivery payment (PDP) facility to provide a
portion of the pre-delivery funding requirements
for the purchase of new Boeing 737-800 aircraft.
The interest rate is based on the one-month
LIBOR plus a specified margin. Borrowings are
secured by the Company’s rights under the
Boeing purchase agreement. The principal
amounts outstanding on the PDP facility relate to
specified aircraft and are repaid at the time the
Company takes delivery of the aircraft, if not
before. During the second quarter of 2009, the
available amount on the facility was reduced
from $152 million to $90.5 million and then
again to $80 million on August 31, 2009. The
reduction was primarily driven by the decline in
the remaining future obligations under the
purchase agreement with Boeing. The facility
expires on August 31, 2011.
During 2009, the Company borrowed $264.6
million using fixed-rate and variable-rate debt
secured by flight equipment and another $10.4
million from the PDP facility. Of the borrowings,
Alaska and Horizon borrowed $188.9 million and
$86.1 million, respectively. The Company made
payments of $261.0 million, including $50.3
million on the PDP facility and $75 million on the
bank line-of-credit facility.
At December 31, 2009, long-term debt principal
payments for the next five years are as follows
(in millions):
Total
2010................................. $ 156.0
2011................................. 191.5
2012................................. 236.3
2013................................. 195.8
2014................................. 162.6
Thereafter ............................. 913.0
Total principal payments .................. $1,855.2
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ŠForm 10-K