SkyWest Airlines 2005 Annual Report Download - page 60

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56
The aggregate amounts of principal maturities of long-term debt as of December 31, 2005 were as follows (in thousands):
2006 $ 331,145
2007 98,752
2008 102,696
2009 106,925
2010 111,332
Thereafter 1,003,053
$1,753,903
During 2005, the Company increased an existing $10.0 million line-of-credit facility, with a bank, to $40.0 million. As of
December 31, 2005, SkyWest Airlines had borrowed $30.0 million under the facility. The facility, expires on January 31, 2007 and
bears interest at a rate equal to prime less 0.25%, which was a net rate of 7.0% on December 31, 2005.
Additionally, SkyWest Airlines entered into another borrowing facility with a financing company and borrowed $60.0 million.
The facility expires on March 21, 2006, with interest payable on a floating basis which was 6.87% at December 31, 2005. The
borrowings under this facility are secured by four CRJ200 aircraft. The amounts borrowed under both arrangements were utilized for
general corporate purposes.
As of December 31, 2005, we had $34.6 million in letters of credit and surety bonds outstanding with various banks and surety
institutions.
Certain of the Company’s long-term debt arrangements contain limitations on, among other things, the sale or lease of assets
and ratio of long-term debt to tangible net worth. As of December 31, 2005, the Company was in default with its Zions line of
credit; however, we received a waiver from Zions. The Company was in compliance with all other debt covenants contained in
its long-term debt agreements. We believe that in the absence of unusual circumstances, the working capital available to us will be
sufficient to meet our present financial requirements, including expansion, capital expenditures, lease payments and debt service
obligations for at least the next 12 months.
During 2005, aircraft deposits with Bombardier of $22.0 million were applied as down payments to Bombardier for temporary
financing of aircraft while the Company arranged for permanent long-term financing through debt and other third party leasing
arrangements. When the Company obtained long-term debt financing, the debt agreements were written such that the long-term
debt could be refinanced into operating leases. Hence, in 2005, $55.4 million in debt was refinanced into long-term operating
leases.
During 2005, SkyWest Airlines entered into a third party long-term leveraged lease facility for 32 regional jet aircraft. In
conjunction with this financing transaction, SkyWest Airlines applied $37.0 million of amounts previously held on deposit by the
manufacturer as lease payments required under the lease.
(4) Income Taxes
The provision for income taxes includes the following components (in thousands):
Year ended December 31,
2005 2004 2003
Current tax provision:
Federal $ 45,714 $ 13,009 $ (46,230)
State 5,798 4,643 2,279
51,512 17,652 (43,951)
Deferred tax provision:
Federal 13,124 33,817 82,968
State 2,723 3,166 3,683
15,847 36,983 86,651
Provision for income taxes $ 67,359 $ 54,635 $ 42,700