Alaska Airlines and Horizon Air 2009 Annual Report Download - page 186

agreements and does not anticipate
nonperformance by the counterparties.
The Company could realize a loss in the event of
nonperformance by any single counterparty to
these contracts. However, the Company enters
into transactions only with large, well-known
financial institution counterparties that have
strong credit ratings. In addition, the Company
limits the amount of investment credit exposure
with any one institution.
The Company’s trade receivables do not
represent a significant concentration of credit
risk at December 31, 2009 due to the frequency
that settlement takes place and the dispersion
across many industry and government
segments.
NOTE 13. OPERATING SEGMENT INFORMATION
Accounting standards require 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, for
which financial information is presented below. These segments are more fully described in Note 1.
(in millions) 2009 2008 2007
Operating revenues:
Alaska—mainline (1) ............................. $2,717.6 $2,920.5 $2,788.5
Alaska—purchased capacity (1) .................... 288.4 300.8 281.4
Total Alaska .................................... $3,006.0 $3,221.3 $3,069.9
Horizon—brand flying ............................. 392.7 440.2 400.5
Horizon—capacity purchase arrangement with Alaska . . . 261.7 293.7 317.9
Total Horizon ................................... $ 654.4 $ 733.9 $ 718.4
Other (2) ...................................... 1.1 1.1 1.1
Elimination of inter-company revenues ............... (261.7) (293.7) (283.4)
Consolidated ................................... 3,399.8 3,662.6 3,506.0
Depreciation and amortization expense:
Alaska (3) ...................................... 178.5 165.9 142.3
Horizon ........................................ 39.5 37.5 33.9
Other (2) ...................................... 1.2 1.2 1.2
Consolidated ................................... 219.2 204.6 177.4
Interest income:
Alaska (3) ...................................... 38.6 51.3 64.8
Horizon ........................................ 2.0 5.4 4.5
Other (2) ...................................... ———
Elimination of inter-company accounts ............... (8.0) (14.3) (15.4)
Consolidated ................................... 32.6 42.4 53.9
Interest expense:
Alaska (3) ...................................... 88.1 92.5 86.2
Horizon ........................................ 19.9 23.6 16.6
Other (2) ...................................... 0.5 0.5 0.6
Elimination of inter-company accounts ............... (8.0) (14.3) (15.4)
Consolidated ................................... 100.5 102.3 88.0
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