SkyWest Airlines 2008 Annual Report Download - page 71

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2008
(1) Nature of Operations and Summary of Significant Accounting Policies (Continued)
New Accounting Standards
In October 2008, the Financial Accounting Standards Board (the ‘‘FASB’’) issued Emerging Issues
Task Force (‘‘EITF’’) 08-6 Equity Method Investment Accounting Considerations, which addresses how
the initial carrying value of an equity method investment should be determined, how an impairment
assessment of an underlying indefinite-lived intangible asset of an equity method investment should be
performed, and the proper accounting of an equity method investee’s issuance of shares. The
Company’s management believes that this will not have a material impact on the Company’s
consolidated financial statements.
In October 2008, the FASB issued Staff Position No. FAS 157-3, Determining the Fair Value of a
Financial Asset When the Market for That Asset is Not Active (FSP 157-3). FSP 157-3 clarifies the
application of SFAS 157, which the Company adopted as of January 1, 2008, in cases where a market is
not active. The Company has considered the guidance provided by FSP 157-3 in its determination of
estimated fair values as of December 31, 2008, and does not believe the guidance had a material
impact on its consolidated financial statements.
(2) Long-term Debt
Long-term debt consisted of the following as of December 31, 2008 and 2007 (in thousands):
December 31, December 31,
2008 2007
Notes payable to banks, due in semi-annual installments, variable interest
based on LIBOR, or with interest rates ranging from 2.54% to 5.60%
through 2012 to 2020, secured by aircraft ........................ $ 529,625 $ 577,390
Notes payable to a financing company, due in semi-annual installments,
variable interest based on LIBOR, or with interest rates ranging from
2.08% to 7.52% through 2009 to 2021, secured by aircraft ............ 594,999 611,995
Notes payable to banks, due in semi-annual installments plus interest at
6.06% to 7.18% through 2021, secured by aircraft .................. 248,731 265,706
Notes payable to a financing company, due in semi-annual installments plus
interest at 5.78% to 6.23% through 2019, secured by aircraft .......... 74,455 80,585
Notes payable to banks, due in monthly installments plus interest of 3.82%
to 8.18% through 2025, secured by aircraft ....................... 325,834 272,475
Notes payable to banks, due in semi-annual installments, plus interest at
6.05% through 2020, secured by aircraft ......................... 25,857 27,725
Notes payable to banks, due in semi-annual installments, plus interest at
3.72% to 3.86%, net of the benefits of interest rate subsidies through the
Brazilian Export financing program, through 2011, secured by aircraft .... 5,936 8,569
Notes payable to a bank, due in monthly installments interest based on
LIBOR through 2012, interest rate at 7.9% secured by building ........ 6,051 6,505
Long-term debt ............................................. $1,811,488 $1,850,950
Less current maturities ....................................... (129,783) (118,202)
Long-term debt, net of current maturities .......................... $1,681,705 $1,732,748
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