SkyWest Airlines 2015 Annual Report Download - page 59

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55
consolidated statements of comprehensive income (loss). If interest rates were to decline, our major partners would
receive the principal benefit of the decline, since interest expense is generally passed through to our major partners,
resulting in a reduction to passenger revenue in our consolidated statement of comprehensive income (loss).
We currently intend to finance the acquisition of aircraft through manufacturer financing or long-term
borrowings. Changes in interest rates may impact the actual financing cost associated with these aircraft. To the extent
we place these aircraft in service under our code-share agreements with Delta, United, or other carriers, our code-share
agreements currently provide that reimbursement rates will be adjusted higher or lower to reflect interest rate changes in
our aircraft ownership costs.
Auction Rate Securities
We have investments in auction rate securities, which are classified as available for sale securities and reflected
at fair value. As of December 31, 2015, we had investments in auction rate securities valued at a total of $2.3 million
which were classified as “Other Assets” on our consolidated balance sheet. For a more detailed discussion on auction
rate securities, including our methodology for estimating their fair value, see Note 6 to our consolidated financial
statements appearing in Item 8 of this Report.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information set forth below should be read together with the “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” appearing elsewhere herein.