SkyWest Airlines 2015 Annual Report Download - page 57

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financing activities was primarily due to increased principal payments on long term debt and a reduction in treasury
stock purchase activity.
Liquidity and Capital Resources as of December 31, 2015 and 2014
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, 2015, our total capital mix was 47.3% equity and 52.7% long-term debt, compared to 47.7%
equity and 52.3% long-term debt at December 31, 2014.
As of December 31, 2015 and 2014, SkyWest Airlines had a $25 million line of credit. As of December 31,
2015 and 2014, SkyWest Airlines had no amount outstanding under the facility. The facility is scheduled to expire on
April 19, 2016 and has a variable interest rate of Libor plus 3%.
As of December 31, 2015 and 2014, we had $88.9 million and $79.9 million, respectively, in letters of credit
and surety bonds outstanding with various banks and surety institutions.
As of December 31, 2015 and 2014, we classified $8.2 million and $11.6 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 2016 2017 2018 2019 2020 Thereafter
Operating lease payments for
aircraft and facility obligations . $ 1,219,523 $ 269,520 $ 192,122 $ 154,077 $ 121,107 $ 133,659 $ 349,038
Firm aircraft commitments ..... 1,565,401 1,071,430 493,971 — — — —
Interest commitments(A) ....... 343,386 68,561 59,763 50,850 42,515 34,568 87,129
Principal maturities on long-term
debt ...................... 1,948,803 272,027 248,629 230,681 223,898 183,620 789,948
Total commitments and
obligations ................ $ 5,077,113 $ 1,681,538 $ 994,485 $ 435,608 $ 387,520 $ 351,847 $ 1,226,115
(A) At December 31, 2015, we had variable rate notes representing 12.1% 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, 99 are considered firm deliveries and the remaining aircraft
is considered conditional until we enter into capacity purchase agreements to operate the aircraft. As of December 31,
2015, we had taken delivery of 45 E175s. We anticipate taking delivery of the remaining 54 E175s covered by the firm
order through mid-2017.
We have not historically funded a substantial portion of our aircraft acquisitions with working capital. Rather,
we have generally funded our aircraft acquisitions through a combination of manufacturer financing, operating leases
and long-term debt financing. At the time of each aircraft acquisition, we evaluate the financing alternatives available to
us, and select one or more of these methods to fund the acquisition. At present, we intend to fund our acquisition of
additional aircraft through debt financing. Based on current market conditions and discussions with prospective leasing
organizations and financial institutions, we currently believe that we will be able to obtain financing for our committed