Spirit Airlines 2011 Annual Report Download - page 46

(ii) settlement gains and losses and (iii) unrealized mark-to-market gains and losses associated with fuel hedge contracts. The following table summarizes the components
of aircraft fuel expense for the periods presented:
The following table presents balance sheet data for the periods presented.
39
Year Ended December 31,
2011 2010 2009 2008 (*) 2007
(in thousands)
Into-plane fuel cost
$
392,278
$
251,754
$
181,806
$
359,097
$
265,226
Settlement (gains) losses
(7,436
)
(1,483
)
750
(69,876
)
(3,714
)
Unrealized mark-to-market (gains) losses
3,204
(2,065
)
(1,449
)
9,873
(10,282
)
Aircraft Fuel
$
388,046
$
248,206
$
181,107
$
299,094
$
251,230
(*) In July 2008, we monetized all of our fuel hedge contracts, which included hedges that had scheduled settlement dates during the remainder of 2008 and in
2009. We recognized a gain of $37.8 million representing cash received upon monetization of these contracts, of which a gain of $14.2 million related to 2009
fuel hedge positions on these contracts.
(3) Special charges include: (i) for 2007, amounts relating to the accelerated retirement of our MD-80 fleet; (ii) for 2008 and 2009, amounts relating to the early termination
in mid-2008 of leases for seven Airbus A319 aircraft, a related reduction in workforce and the exit facility costs associated with returning planes to lessors in 2008; (iii)
for 2009 and 2010, amounts relating to the sale of previously expensed MD-
80 parts; (iv) for 2010 and 2011 amounts relating to exit facility costs associated with moving
our Detroit, Michigan maintenance operations to Fort Lauderdale, Florida; and (v) termination costs in connection with the IPO during the three months ended June 30,
2011 comprised of amounts paid to Indigo Partners, LLC to terminate its professional services agreement with us and fees paid to three individual, unaffiliated holders of
our subordinated notes. Special charges for 2011 also include legal, accounting, printing, and filing fees connected with the secondary offering which was consummated
on January 25, 2012 . For more information, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Our Operating
Expenses—Special Charges.”
(4) Substantially all of the interest expense recorded in 2007, 2008, 2009, 2010 and 2011 relates to notes and preferred stock held by our principal stockholders that were
repaid or redeemed, or exchanged for shares of common stock, in connection with the 2011 Recapitalization.
(5)
Interest attributable to funds used to finance the acquisition of new aircraft, including PDPs is capitalized as an additional cost of the related asset. Interest is capitalized at
the weighted average implicit lease rate of our aircraft.
(6) Gain on extinguishment of debt represents the recognition of contingencies provided for in our 2006 recapitalization agreements, which provided for the cancellation of
shares of Class A preferred stock and reduction of the liquidation preference of the remaining Class A preferred stock and associated accrued but unpaid dividends based
on the outcome of the contingencies.
(7)
Net income for 2010 includes a $52.3 million net tax benefit primarily due to the release of a valuation allowance resulting in a deferred tax benefit of $52.8 million in
2010. Absent the release of the valuation allowance and corresponding tax benefit, our net income would have been $19.7 million for 2010. Pursuant to the Tax
Receivable Agreement, we distributed to the Pre-IPO Stockholders the right to receive a pro rata share of the future payments to be made under such agreement. These
future payments to the Pre-IPO Stockholders (estimated as of December 31, 2011 to be approximately $36.5 million) will be in an amount equal to 90% of the cash
savings in federal income tax realized by us by virtue of our future use of the federal net operating loss, deferred interest deductions and certain tax credits held by us as
of March 31, 2011. Please see "Notes to Financial Statements- 20. Initial Public Offering and Tax Receivable Agreement".
As of December 31,
2011 2010 2009 2008 2007
Balance Sheet Data: (in thousands)
Cash and cash equivalents
$
343,328
$
82,714
$
86,147
$
16,229
$
54,603
Total assets
745,813
475,757
327,866
240,009
257,382
Long-term debt, including current portion —
260,827
242,232
214,480
180,784
Mandatorily redeemable preferred stock —
79,717
75,110
89,685
138,777
Stockholders' equity (deficit)
466,706
(105,077
)
(178,127
)
(261,890
)
(295,154
)