Frontier Airlines 2010 Annual Report Download - page 101

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The following table summarizes the identifiable intangible assets acquired:
(amounts in 000's)
Weighted-Average
Amortization
Period
Fair Value
at Acquisition
Date
Indefinite-lived intangible assets:
Airport slots $ 21,825
Midwest trade name 11,400
Total indefinite-lived intangible assets $ 33,225
Definite-lived intangible assets:
Affinity credit card programs 2.0 years $12,100
Cargo contracts 13.0 years 2,800
Total definite-lived intangible assets 4.1 years $14,900
Total identifiable intangible assets $ 48,125
Pro forma Information (unaudited)
The following unaudited pro forma combined results of operations give effect to the acquisition of Midwest and Frontier as if they
had occurred at the beginning of the periods presented. The unaudited pro forma combined results of operations do not purport to represent
Republic’ s consolidated results of operations had the acquisition occurred on the dates assumed, nor are these results necessarily indicative of
the Company’ s future consolidated results of operations. We expect to realize significant benefits from integrating the operations of the
Company, Midwest, and Frontier. The unaudited pro forma combined results of operations do not reflect these benefits or costs.
December 31,
in (000's), except per share amounts 2009 2008
Operating revenues $ 2,683,541 $ 3,467,614
Net income (loss) of the Company 4,741 (630,942 )
Basic earnings per share $ 0.14 $ (18.10 )
Diluted earnings per share $ 0.13 $ (18.10 )
Mokulele Flight Services Inc.
In October 2008, the Company entered into a loan agreement with Mokulele under which we were to provide up to $8.0 million,
with an interest rate of 10%, payable monthly. The loan agreement was provided to Mokulele in the form of a revolving line of credit,
convertible at the Company’ s option, to as much as 45% of the common stock of Mokulele. The loan was collateralized by all of Mokulele’ s
unencumbered assets and a pledge of the equity holdings of Mokulele’ s majority shareholders. The loan was scheduled to mature in October
2010. Due to the uncertainty of whether or not the Company would receive value equal to the carrying value of the Mokulele note, the
Company recorded a valuation allowance of $1.5 million in December 2008.
In March 2009, the Company and certain shareholders of Mokulele agreed to participate in a restructuring of Mokulele. Under this
agreement, the Company agreed to convert $3.0 million of our $8.0 million loan to equity and invest an additional $3.0 million of cash in
exchange for 50% ownership of Mokulele’ s common stock and three of the five Mokulele Board of Directors’ seats. The recapitalization
effectively provided us control of Mokulele and its Hawaii inter island passenger service. Accordingly, we accounted for the recapitalization
of Mokulele as a business combination. The Company assigned fair values to the assets acquired and liabilities assumed and the transaction
resulted in no goodwill. The Company acquired approximately $4.1 million of current assets, $9.3 million of aircraft and other equipment,