SkyWest Airlines 2014 Annual Report Download - page 87

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2014
(1) Nature of Operations and Summary of Significant Accounting Policies (Continued)
approach or report the cumulative effect as of the date of adoption. The Company is currently
evaluating the impact, the adoption of ASU No. 2014-09 will have on the Company’s consolidated
financial statements.
In April 2014, the FASB issued Accounting Standards Update 2014-08, Presentation of Financial
Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued
Operations and Disclosures of Disposals of Components of an Entity. The standard changes the
requirements for reporting discontinued operations in Subtopic 205-20. The standard is effective in the
first quarter of 2015. The Company does not believe the implementation of the standard will have a
material impact to the Company’s consolidated financial statements.
(2) 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
CODM when deciding how to allocate resources and in assessing performance.
The Company’s two operating segments consist of the operations conducted by its two subsidiaries,
SkyWest Airlines and ExpressJet. Corporate overhead expense incurred by the Company is allocated to
the operating expenses of its two operating subsidiaries.
The following represents the Company’s segment data for the years ended December 31, 2014,
2013 and 2012 (in thousands).
Year ended December 31, 2014
SkyWest
Airlines ExpressJet Other Consolidated
Operating revenues .......................... $1,888,693 $1,346,859 $1,895 $3,237,447
Operating expense ........................... 1,766,669 1,446,050 (120) 3,212,599
Depreciation and amortization expense ............ 171,183 88,459 — 259,642
Interest expense ............................. 44,385 18,754 2,856 65,995
Segment profit (loss)(1) ....................... 77,639 (117,945) (841) (41,147)
Identifiable intangible assets, other than goodwill ..... — 12,748 — 12,748
Total assets ................................ 3,019,799 1,390,129 — 4,409,928
Capital expenditures (including non-cash) .......... 673,133 23,790 — 696,923
Year ended December 31, 2013
SkyWest
Airlines ExpressJet Other Consolidated
Operating revenues .......................... $1,827,568 $1,466,341 $ 3,816 $3,297,725
Operating expense .......................... 1,644,129 1,494,302 6,183 3,144,614
Depreciation and amortization expense ........... 155,667 89,338 — 245,005
Interest expense ............................ 43,920 21,034 3,704 68,658
Segment profit (loss)(1) ....................... 139,519 (48,995) (6,071) 84,453
Identifiable intangible assets, other than goodwill .... — 14,998 — 14,998
Total assets ................................ 2,532,431 1,700,788 — 4,233,219
Capital expenditures (including non-cash) .......... 103,387 38,657 — 142,044
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