SkyWest Airlines 2010 Annual Report Download - page 86

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2010
(2) ExpressJet Merger (Continued)
purchase price, since those liabilities remained the obligation of ExpressJet Holdings post-closing)
based on a preliminary valuation performed by a third party valuation advisor (in thousands):
Current assets, net ........................................ $133,397
Property, plant and equipment ............................... 128,744
Other non-current assets .................................... 35,061
Current liabilities ......................................... (141,974)
Long-term liabilities ....................................... (3,173)
Purchase accounting gain ................................... (15,586)
Total consideration ...................................... $136,469
Less cash acquired ........................................ (82,452)
Net cash paid .......................................... $ 54,017
The Company is currently in the process of completing a valuation of the assets acquired and
liabilities assumed in connection with the ExpressJet Merger, based on the results of a valuation
performed by a third party valuation advisor and any final purchase adjustments are not expected to be
material to the Company’s consolidated financial statements. As of December 31, 2010, the Company
had not identified any intangible assets as a result of the ExpressJet Merger.
As part of the ExpressJet Merger, the Company recorded a purchase accounting gain of
$15.6 million. This amount represents the difference between the consideration paid and the net fair
value of ExpressJet Holdings’ assets acquired and liabilities assumed. The net fair value of the assets
and liabilities acquired in the ExpressJet Merger was more than the consideration paid.
The following unaudited pro forma combined results of operations give effect to the ExpressJet
Merger as if it had occurred at the beginning of the periods presented. The unaudited pro forma
combined results of operations do not purport to represent the Company’s consolidated results of
operations had the ExpressJet Merger occurred on the dates assumed, nor are these results necessarily
indicative of the Company’s future consolidated results of operations. The Company expects to realize
benefits from integrating the operations of Atlantic Southeast and ExpressJet, as discussed above, and
to incur certain one-time cash costs. The unaudited pro forma combined results of operations do not
reflect these benefits or costs.
Years ended
December 31,
2010 2009
Revenue ..................................... $3,476,415 $3,301,872
Net Income ................................... $ 59,264 $ 87,125
Basic earnings per share .......................... $ 1.07 $ 1.56
Diluted earnings per share ........................ $ 1.05 $ 1.53
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