Spirit Airlines 2012 Annual Report Download - page 35

The following table presents balance sheet data for the periods presented.
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(2) Aircraft fuel expense is the sum of (i) “into-plane fuel cost,” which includes the cost of jet fuel and certain other charges such as fuel taxes and oil, (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:
Year Ended December 31,
2012 2011 2010 2009 2008 (*)
(in thousands)
Into-plane fuel cost
$
471,542
$
392,278
$
251,754
$
181,806
$
359,097
Realized losses (gains)
175
(7,436
)
(1,483
)
750
(69,876
)
Unrealized losses (gains)
46
3,204
(2,065
)
(1,449
)
9,873
Aircraft fuel expense
$
471,763
$
388,046
$
248,206
$
181,107
$
299,094
(*) 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 (credits) include: (i) 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; (ii) for 2009 and 2010, amounts relating to the sale of previously expensed MD-80 parts; (iii) for 2010 and 2011 amounts relating to exit facility
costs associated with moving our Detroit, Michigan maintenance operations to Fort Lauderdale, Florida; (iv) 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; and (v) for 2011
and 2012, a $9.1 million gain related to the sale of four permanent air carrier slots at Ronald Reagan National Airport (DCA) offset by legal, accounting, printing, and filing fees connected with the 2012
secondary offerings. For more information, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Our Operating Expenses—Special Charges (Credits).”
(4) Substantially all of the interest expense recorded in 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 Recapitalization in 2011 that was effected in connection with the IPO. Interest expense in 2012 primarily relates to interest on pre-delivery deposits.
(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.
As of December 31,
2012 2011 2010 2009 2008
Balance Sheet Data: (in thousands)
Cash and cash equivalents
$
416,816
$
343,328
$
82,714
$
86,147
$
16,229
Total assets
919,884
745,813
475,757
327,866
240,009
Long-term debt, including current portion
—
—
260,827
242,232
214,480
Mandatorily redeemable preferred stock
—
—
79,717
75,110
89,685
Stockholders' equity (deficit)
582,535
466,706
(105,077
)
(178,127
)
(261,890
)