Frontier Airlines 2006 Annual Report Download - page 75

Beginning in April 2004, in anticipation of financing the purchase of regional jet aircraft on firm order with the manufacturer,
we entered into fourteen treasury lock agreements with notional amounts totaling $373.5 million and a weighted average interest rate
of 4.47% with expiration dates through June 2005. Management designated the treasury lock agreements as cash flow hedges of
forecasted transactions. The treasury lock agreements were settled at each respective settlement date, which were the purchase dates of
the respective aircraft. We settled all of the agreements during 2004 and 2005 and the net amount paid was $7.5 million. Amounts
paid or received on the settlement date are reclassified to interest expense over the term of the respective aircraft debt. During 2005
and 2006, we reclassified $286,000 and $299,000 to interest expense, respectively. The Company expects to reclassify $867,000 to
interest expense for the year ended December 31, 2007.
-42-
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠