SkyWest Airlines 2010 Annual Report Download - page 73

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SKYWEST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2010 2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ................................................. $ 96,350 $ 83,658 $ 112,929
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ................................... 236,499 221,548 220,195
Stock based compensation expense ................................ 6,428 7,944 11,489
Loss (gain) on sale of property and equipment ......................... (16) (77) 68
Undistributed earnings of other companies ........................... (635) (1,785) —
Brasilia engine overhauls ....................................... (19,050) (26,635) (24,574)
Purchase accounting gain ...................................... (15,586) — —
Impairment on marketable securities ............................... — 7,115 —
Net increase in deferred income taxes .............................. 58,525 59,350 55,541
Changes in operating assets and liabilities:
Decrease (increase) in restricted cash ............................. 4,971 (2) 3,977
Decrease (increase) in receivables ............................... 2,818 (56,444) 25,758
Decrease in income tax receivable ............................... 9,746 2,260 8,246
Decrease (increase) in inventories ............................... (2,071) 14,507 1,355
Decrease (increase) in other current assets and prepaid aircraft rents ......... (19,532) 10,608 4,437
Decrease in deferred aircraft credits .............................. (8,756) (3,658) (5,140)
Increase (decrease) in accounts payable and accrued aircraft rents ........... 6,289 46,908 (23,666)
Increase (decrease) in other current liabilities ........................ (8,891) (2,432) 354
NET CASH PROVIDED BY OPERATING ACTIVITIES ................... 347,089 362,865 390,969
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities ................................. (1,073,479) (854,715) (1,305,015)
Sales of marketable securities .................................... 1,047,553 772,616 1,254,574
Issuance of United Air Lines note receivable .......................... — (80,000) —
Purchase of ExpressJet, net of cash acquired .......................... (54,018) — —
Payments received on note receivable from United Air Lines ................ 79,333 667 —
Proceeds from the sale of property and equipment ...................... 147 18,662 4,580
Acquisition of property and equipment:
Aircraft and rotable spare parts ................................. (141,474) (392,393) (169,615)
Deposits on aircraft ........................................ (400) — —
Buildings and ground equipment ................................ (9,391) (2,556) (37,627)
Increase in other assets ...................................... (25,647) (25,458) (6,559)
NET CASH USED IN INVESTING ACTIVITIES ....................... (177,376) (563,177) (259,662)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt ............................ 81,698 300,716 80,361
Principal payments on long-term debt ............................... (185,632) (147,315) (119,823)
Return of deposits on aircraft and rotable spare parts .................... 4,247 16,143 3,458
Tax benefit from exercise of common stock options ...................... — — 9
Net proceeds from issuance of common stock ......................... 4,907 8,787 17,361
Purchase of treasury stock ...................................... (30,009) (18,445) (102,632)
Payment of cash dividends ...................................... (9,000) (9,052) (6,951)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES ........... (133,789) 150,834 (128,217)
Increase (decrease) in cash and cash equivalents ......................... 35,924 (49,478) 3,090
Cash and cash equivalents at beginning of year .......................... 76,414 125,892 122,802
CASH AND CASH EQUIVALENTS AT END OF YEAR .................. 112,338 $ 76,414 $ 125,892
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the year for:
Interest, net of capitalized amounts ............................... $ 85,931 $ 90,572 $ 111,717
Income taxes ............................................. $ (16,895) $ 2,896 $ 23,876
See accompanying notes to consolidated financial statements.
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