SkyWest Airlines 2015 Annual Report Download - page 77

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73
(3) Long-term Debt
Long-term debt consisted of the following as of December 31, 2015 and 2014 (in thousands):
December 31,
December 31,
2015
2014
N
otes payable to banks, due in semi-annual installments, variable interest
based on LIBOR, or with interest rates ranging from 1.29% to 2.22%
through 2016 to 2020, secured by aircraft ........................ $ 108,348 $ 174,159
N
otes payable to a financing company, due in semi-annual installments,
variable interest based on LIBOR, or with interest rates ranging from
1.76% to 3.25% through 2017 to 2021, secured by aircraft .......... 217,341 350,177
N
otes payable to banks, due in semi-annual installments plus interest at
6.06% to 6.51% through 2021, secured by aircraft ................. 108,069 129,201
N
otes payable to a financing company, due in semi-annual installments
plus interest at 5.78% to 6.23% through 2017, secured by aircraft . . . . . 17,208 25,090
N
otes payable to banks, due in monthly installments plus interest of
2.68% to 6.86% through 2025, secured by aircraft ................. 479,170 572,446
N
otes payable to banks, due in monthly installments, plus interest at
6.05% through 2020, secured by aircraft ......................... 11,304 13,551
N
otes payable to banks, due in monthly installments, plus interest at
3.10% through 2019, secured by aircraft ......................... 4,615 5,909
N
otes payable to banks, due in quarterly installments plus interest at
3.39% to 4.02% through 2027, secured by aircraft ................. 966,156 446,724
N
otes payable to banks, due in monthly installments, plus interest based
on LIBOR at 3.21% to 3.33% through 2017, secured by aircraft . . . . . . 14,538 28,554
N
otes payable to banks due in monthly installments, interest at 3.30%
through 2019, secured by spare engines .......................... 22,054 —
Long-term debt ............................................... $ 1,948,803 $ 1,745,811
Less current maturities ......................................... (272,027) (211,821)
Long-term debt, net of current maturities . . . . . . . . . . . . . . . . . . . . ...... $ 1,676,776 $ 1,533,990
During the year ended December 31, 2015, the Company acquired 25 new E175 aircraft. Approximately 85% of
the aircraft purchase price was financed through the issuance of debt and 15% of the aircraft purchase price was paid
with cash.
As of December 31, 2015, the Company had $1.9 billion of long-term debt obligations primarily related to the
acquisition of CRJ200, CRJ700, CRJ900 and E175 aircraft. The average effective interest rate on the debt related to
those long-term debt obligations was approximately 3.7% at December 31, 2015.
During the year ended December 31, 2015, the Company used $110.8 million in cash to pay off $145.4 million
in debt. The payment resulted in a pre-tax gain of $33.7 million, net of the write off of deferred loan costs associated
with the debt, reflected as other income in the consolidated statements of comprehensive income (loss), of which the
Company used $94 million in cash to pay off $128 million in debt, resulting in a pre-tax gain of $33 million during the
fourth quarter of 2015.
The aggregate amounts of principal maturities of long-term debt as of December 31, 2015 were as follows (in
thousands):