SkyWest Airlines 2011 Annual Report Download - page 86
Download and view the complete annual report
Please find page 86 of the 2011 SkyWest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76 -
77 -
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85 -
86 -
87 -
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96 -
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
 |
 |
SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2011
(4) Long-term Debt (Continued)
As of December 31, 2011 and 2010, SkyWest Airlines had a $25 million line of credit. As of
December 31, 2011 and 2010, SkyWest Airlines had no amount outstanding under the facility. The
facility expires on March 31, 2012 and has a fixed interest rate of 3.79%.
As of December 31, 2011, the Company had $66.1 million in letters of credit and surety bonds
outstanding with various banks and surety institutions.
As of December 31, 2011, the Company was in compliance with all debt covenants.
(5) Note Receivable
On October 16, 2009, SkyWest Airlines extended a secured term loan in the amount of $80 million
to United. The term loan bears interest at a rate of 11%, with a ten-year amortization period. The loan
was secured by certain ground equipment and certain airport slot rights held by United. On August 11,
2010, United repaid the $80 million term loan together with accrued interest.
SkyWest Airlines also agreed to defer certain amounts otherwise payable to SkyWest Airlines
under the existing United Express Agreement for a maximum period of 30 days. The maximum deferral
amount is $49 million and any amounts deferred accrue a deferral fee of 8%, payable weekly. As of
December 31, 2011 and 2010, $49 million was deferred for 30 days. United’s right to defer such
payments continues through October 16, 2019, subject to certain conditions. As of December 31, 2011,
the Company had classified $49.0 million as current and has identified the deferred amount as
‘‘Receivables, net’’ in its consolidated balance sheet.
(6) Income Taxes
The provision for income taxes includes the following components (in thousands):
Year ended December 31,
2011 2010 2009
Current tax provision (benefit):
Federal ................................ $ — $(1,600) $(11,309)
State .................................. 396 451 110
396 (1,149) (11,199)
Deferred tax provision (benefit):
Federal ................................ (21,533) 46,994 54,942
State .................................. (1,698) 3,706 4,332
(23,231) 50,700 59,274
Provision (benefit) for income taxes ............. (22,835) 49,551 $ 48,075
82