Frontier Airlines 2010 Annual Report Download - page 49

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Goodwill Impairment
Goodwill is required to be evaluated for impairment on an annual basis. If we determine that goodwill is impaired, we are required
to write-off the amount of goodwill that is impaired.
Other Impairment Charges
Other intangibles with an indefinite life are required to be evaluated for impairment on an annual basis. If we determine other
intangibles are impaired, we are required to write-off the amount of other intangibles that are impaired. This expense includes the
impairment of trade names and other assets.
Gain on Bargain Purchase
This represents the amount that the fair values of assets acquired exceeds the assumed liabilities and purchase price from the
acquisition of Frontier.
Other
This expense includes the costs of crew training, crew travel, airport, passenger and ground handling related expenses, all hangar
and administrative lease expenses, professional fees, and all other administrative and operational overhead expenses not included in other line
items above. Additionally, if incurred, this expense will include accrued aircraft return costs, gains and losses on disposal of assets and bad
debt expenses.
Results of Operations
The following tables sets forth information regarding the Company’ s statistical performance for the years ended December 31, 2010,
2009, and 2008.
Operating Highlights - Fixed-Fee Twelve Months Ended December 31,
2010 Change 2009 Change 2008
Fixed-fee service revenues, excluding fuel (000's)
(1) $ 962,684 (11.6 )
% $ 1,089,051 (4.1 )
% $ 1,135,431
Passengers carried 17,355,097 (7.6 )
% 18,783,773 (0.7 )
% 18,917,502
Revenue passenger miles (000's) (2) 8,572,623 (10.3 )
% 9,560,637 (1.4 )
% 9,700,978
Available seat miles (000's) (3) 11,348,280 (12.0 )
% 12,894,899 (2.4 )
% 13,213,701
Passenger load factor (4) 75.5 % 1.4 pts 74.1 % 0.7 pts 73.4 %
CASM,(5)(6) including interest expense, (cents) 8.40 0.5 % 8.36 (16.1 )
% 9.97
CASM,(5)(6) including interest and excluding fuel
expense, (cents) 7.80 2.0 % 7.65 2.0 % 7.50
Operating aircraft at period end:
37-50 seats 65 (15.6 )
% 77 (16.3 )
% 92
70-86 seats 112
—
% 112 (7.4 )
% 121
Block hours (7) 592,821 (12.1 )
% 674,454 (8.9 )
% 740,403
Departures 354,631 (10.6 ) 396,559 (6.2 ) 422,558