Alaska Airlines and Horizon Air 2013 Annual Report Download - page 127
Download and view the complete annual report
Please find page 127 of the 2013 Alaska Airlines and Horizon Air annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
 |
 |
Selling Expenses
Selling expenses decreased by $7 million, or 4%,
compared to 2011 as a result of lower fees
related to debit card purchases of $4 million and
flat global distribution system (GDS) fees, offset
by an increase in advertising and promotional
activities of $2 million.
Depreciation and Amortization
Depreciation and amortization increased $17
million, or 7%, compared to the prior year. This is
primarily due to additional depreciation expense
for the annualization of B737 aircraft and Q400
aircraft delivered in 2011, as well as the
deliveries of B737 aircraft in 2012. In addition,
we incurred depreciation of $6 million related to
Terminal 6 at LAX, which was put into service in
March 2012. These increases were offset by a
decrease in depreciation expense for the CRJ-
700 aircraft removed from the fleet in 2011 and
other assets that became fully depreciated or
were removed from operation.
Food and Beverage Service
Food and beverage costs increased $12 million,
or 18%, from the prior year due to an increased
number of passengers of 4.5%, increase in sales
of buy-on-board products of 20%, offset by the
higher cost of some of our premium products
served on board, and increased costs associated
with food delivery.
Other Operating Expenses
Other operating expenses increased $13 million,
or 6%, compared to 2011. The increase is
primarily driven by higher IT and professional
service costs of $8 million associated with our
key initiatives and infrastructure improvements,
and higher personnel non-wage costs such as
hotels, meals and per diems of $7 million.
Fleet Transition and Restructuring Related
Expenses
Fleet transition costs decreased $39 million, as
we completed our transition to an all-Q400 fleet
at Horizon in 2011.
CONSOLIDATED NONOPERATING INCOME
(EXPENSE)
Net nonoperating expense decreased $37 million
from 2011. This is due to lower interest expense
of $13 million on lower average outstanding debt
balances and additional capitalized interest due
to higher levels of aircraft purchase deposits and
capital expenditures. Additionally, we incurred
pre-payment penalties of $8 million and an
impairment charge of $6 million on an owned
aircraft that was leased to another carrier that
filed for bankruptcy protection in the prior year.
The decrease was partially offset by lower
interest income earned on our marketable
securities portfolio.
41
ŠForm 10-K