Frontier Airlines 2010 Annual Report Download - page 105
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2010. These assets are included in the Other segment in Note 17. Assets held for sale as of December 31, 2010 primarily consist of assets
acquired from Midwest and Frontier that will not be used in operations. The Company is continuing to market the assets held for sale and
record the assets to net realizable value.
6. AIRCRAFT AND OTHER EQUIPMENT
Aircraft and other equipment, excluding aircraft held for sale, consist of the following as of December 31 (in thousands):
2010 2009
Aircraft $ 3,608,683 $ 3,670,816
Flight equipment 264,879 256,200
Office equipment and leasehold improvements 41,133 53,563
Total aircraft and other equipment 3,914,695 3,980,579
Less accumulated depreciation and amortization (741,209 ) (562,419 )
Aircraft and other equipment—net $ 3,173,486 $ 3,418,160
Aircraft and other equipment depreciation and amortization expense for the years ended December 31, 2010, 2009 and 2008 was
$189.0 million, $159.0 million, and $132.8 million, respectively. During 2010, the Company had an impairment loss on certain Airbus
aircraft for $8.5 million which is reported in other operating expense in the consolidated statements of income (loss).
7. OTHER INTANGIBLE ASSETS
The Company has airport commuter slots and has assigned the right of use for these commuter slots to US Airways which will
continue to be operated by US Airways Express carriers until the expiration or termination of the amended and restated Chautauqua Jet
Service Agreement ("JSA") dated as of April 26, 2005 between US Airways and Chautauqua or the Republic JSA, whichever is later, at an
agreed rate. Prior to the expiration of the agreement to license the commuter slots, US Airways has the right to repurchase all, but not less
than all, of the DCA commuter slots at a predetermined price. These slots are being amortized over a weighted-average amortization period
of 25.0 years to an estimated residual value of $37.8 million.
Other intangible assets as of December 31, 2010 and 2009 consist of the following (in thousands):
As of December 31, 2010 As of December 31, 2009
Weighted-Average
Amortization
Period
Gross carrying
amount Accumulated
amoritzation Gross carrying
amount Accumulated
amoritzation
Indefinite-lived intangible assets:
Airport slots $ 27,625 $ 27,625
Trade names 20,600 28,200
Total indefinite-lived intangible assets $ 48,225 $ 55,825
Definite-lived intangible assets:
Airport slots leased to US Airways 25.0 years $ 47,536 $ 2,036 47,536 1,648
Affinity credit card programs 6.6 years 59,704 16,660 59,704 4,143