SkyWest Airlines 2011 Annual Report Download - page 83

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2011
(2) ExpressJet Merger (Continued)
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
As part of the ExpressJet Merger, the Company recorded a purchase accounting gain of
$15.6 million during the year ended December 31 2010. 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. In connection with the preparation of the Company’s 2010 tax return, the
Company’s management identified an adjustment to the ExpressJet Merger that resulted in an increase
to the Company’s acquired deferred tax liabilities of $5.7 million during the year ended December 31,
2011. The adjustment is reflected on the consolidated statement of operations under the caption
‘‘Purchase accounting gain (adjustment).’’ The Company has determined that the adjustment to the
purchase accounting gain is not material to either the prior or current period financial statements
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
(3) Segment Reporting
Generally accepted accounting principles require disclosures related to components of a company
for which separate financial information is available to and regularly evaluated by the company’s chief
operating decision maker (‘‘CODM’’) when deciding how to allocate resources and in assessing
performance.
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