SkyWest Airlines 2011 Annual Report Download - page 82

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2011
(1) Nature of Operations and Summary of Significant Accounting Policies (Continued)
New Accounting Standards
Fair Value Measurement and Disclosure Requirements
In May 2011, the FASB issued ‘‘Amendments to Achieve Common Fair Value Measurement and
Disclosure Requirements in U.S. GAAP and IFRSs.’’ The standard revises guidance for fair value
measurement and expands the disclosure requirements. It is effective prospectively for fiscal years
beginning after December 15, 2011. The Company does not anticipate that the adoption of this
standard will have a material impact on its consolidated financial statements.
Presentation of Comprehensive Income
In June 2011, the FASB issued ‘‘Presentation of Comprehensive Income.’’ The standard revises the
presentation and prominence of the items reported in other comprehensive income. It is effective
retrospectively for fiscal years beginning after December 15, 2011, with early adoption permitted. The
Company intends to adopt this standard for the quarter ending March 31, 2012. The Company does
not anticipate that the adoption of this standard will have a material impact on its consolidated
financial statements.
(2) ExpressJet Merger
On November 12, 2010, the Company acquired ExpressJet Delaware through the merger of
ExpressJet Holdings, Inc., the sole shareholder of ExpressJet Delaware (‘‘ExpressJet Holdings’’), with a
wholly-owned subsidiary of Atlantic Southeast (the ‘‘ExpressJet Merger’’). As a result of the ExpressJet
Merger, each issued and outstanding share of ExpressJet Holdings common stock (other than shares
owned by ExpressJet Holdings as treasury stock or shares owned by the Company or any of its
subsidiaries) was converted into the right to receive $6.75 per share in cash, payable to the holder
thereof, without interest. Based on the number of outstanding shares of ExpressJet Holdings common
stock as of the effective time of the ExpressJet Merger, the aggregate value of the Merger
consideration was $131.6 million. After taking in effect the number of shares acquired by the Company
and its subsidiaries prior to the effective time, the aggregate value of the ExpressJet Merger
consideration was $136.5 million.
In connection with the ExpressJet Merger, ExpressJet Delaware and Continental entered into the
Continental CPA, whereby ExpressJet Delaware (now ExpressJet) agreed to provide regional airline
services in the Continental flight system. The Continental CPA became effective on November 12, 2010.
The Company accounted for the ExpressJet Merger in accordance with FASB ASC Topic 805,
Business Combinations, whereby the tangible assets acquired and liabilities assumed from ExpressJet
Holdings are recorded based on their estimated fair values as of the closing date. The revenues of
ExpressJet Delaware represented 4% of the Company’s total revenues for the year ended
December 31, 2010. The following table reflects the aggregate consideration and estimated fair values
of the tangible assets acquired and liabilities assumed (including the attribution of ExpressJet Holdings
liabilities to the purchase price, since those liabilities remained the obligation of ExpressJet Holdings
78