SkyWest Airlines 2013 Annual Report Download - page 64

Cash Flows from Financing Activities.
Net cash used in financing activities increased $10.8 million, or 6.2%, during the year ended
December 31, 2013, compared to the year ended December 31, 2012. The increase was primarily
related to increased expense attributable to the increase in purchase of treasury shares of $10.8 million
during the year ended December 31, 2013, compared to the year ended December, 2012.
Liquidity and Capital Resources
We believe that in the absence of unusual circumstances, the working capital currently available to
us, together with our projected cash flows from operations, will be sufficient to meet our present
financial requirements, including anticipated expansion, planned capital expenditures, and scheduled
lease payments and debt service obligations for at least the next 12 months.
At December 31, 2013, our total capital mix was 52.6% equity and 47.4% long-term debt,
compared to 48.5% equity and 51.5% long-term debt at December 31, 2012.
As of December 31, 2013 and 2012, SkyWest Airlines had a $25 million line of credit. As of
December 31, 2013 and 2012, SkyWest Airlines had no amount outstanding under the facility. The
facility is scheduled to expire on March 31, 2014 and has a variable interest rate of Libor plus 3%.
As of December 31, 2013, we had $88.5 million in letters of credit and surety bonds outstanding
with various banks and surety institutions.
As of December 31, 2013 and 2012, we classified $12.2 million and $19.6 million as restricted cash,
respectively, related to our workers compensation policies.
Significant Commitments and Obligations
General
The following table summarizes our commitments and obligations as noted for each of the next
five years and thereafter (in thousands):
Total 2014 2015 2016 2017 2018 Thereafter
Operating lease payments
for aircraft and facility
obligations ........... $1,889,363 $ 380,413 $ 331,151 $258,464 $194,258 $153,294 $ 571,783
Firm aircraft commitments . 1,166,829 709,700 447,157 9,972 —— —
Interest commitments(A) . . 363,311 64,564 57,736 50,601 43,409 36,800 110,201
Principal maturities on
long-term debt ........ 1,470,568 177,389 184,510 188,240 161,735 139,020 619,674
Total commitments and
obligations ........... $4,890,071 $1,332,066 $1,020,554 $507,277 $399,402 $329,114 $1,301,658
(A) At December 31, 2013, we had variable rate notes representing 29.5% of our total long-term debt.
Actual interest commitments will change based on the actual variable interest.
Purchase Commitments and Options
On May 21, 2013, we announced our execution of an agreement with Embraer, S.A. for the
purchase of 100 new E175 dual-class regional jet aircraft. Of the 100 aircraft, 40 are considered firm
deliveries and the remaining 60 aircraft are considered conditional until we enter into capacity purchase
agreements with other major airlines to operate the aircraft. We anticipate that we will begin taking
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