Spirit Airlines 2012 Annual Report Download - page 79

Notes to Financial Statements—(Continued)
The following table summarizes the components of aircraft fuel expense for the years ended December 31, 2012 , 2011 and 2010 :
All realized gains and losses are reflected in the statements of cash flows in cash flow from operating activities.
As of December 31, 2012 and 2011 , the Company had fuel hedges using U.S. Gulf Coast jet fuel collars as the underlying commodity. As of December 31, 2012 , the
Company had agreements in place to protect 7.8 million gallon s or approximately 5% of its 2013 anticipated fuel consumption at a weighted-average ceiling and floor price
of $3.09 and $2.84 per gallon , respectively. As of December 31, 2011 , the Company had agreements in place to protect 13.5 million gallon s or approximately 9% of its
2012 anticipated fuel consumption at a weighted-average ceiling and floor price of $2.99 and $2.81 per gallon , respectively.
The Company sponsors three defined contribution 401(k) plans, Spirit Airlines, Inc. Employee Retirement Savings Plan (first plan), Spirit Airlines, Inc. Pilots’
Retirement Savings Plan
(second plan), and Spirit Airlines, Inc. Puerto Rico Retirement Savings Plan (third plan). The first plan was adopted on February 1, 1994.
Essentially, all employees that are not covered by the pilots’ collective bargaining agreement, who have at least one year of service, have worked at least 1,000 hours during
the year, and have attained the age of 21 may participate in this plan. The Company may make a Qualified Discretionary Contribution, as defined in the plan, or provide
matching contributions to this plan. Effective July 1, 2007, the Company amended this plan to change the service requirement to 60 days and provided for matching
contribution to the plan at 50% of the employee’s contribution up to a maximum employer contribution of 3% of the employee’s annual compensation.
The second plan is for the Company’s pilots, and contained the same service requirements as the first plan and was amended effective July 1, 2007, to change the
service requirements to 60 days and having attained the age of 21 . The Company matches 100% of the pilot’s contribution, up to 8% of the individual pilot’s annual
compensation . Both the first and the second plans are subject to the annual IRS elective deferral limit, which was $17 thousand for 2012.
The third plan is for all Company employees residing in Puerto Rico and was adopted on April 16, 2012. It contains the same amended service requirements as the first
and second plans. For pilots participating in the Puerto Rico plan, the Company matches 100% of their contribution, up to 8% of the individual pilot's annual compensation,
but subject to the annual Puerto Rico pre-tax elective deferral limit, which was $13 thousand for 2012. For all other employees participating in the Puerto Rico plan, the
Company provides for matching contribution to the plan at 50% of the employee's contribution up to a maximum employer contribution of 3% of the employee's annual
compensation.
Matching contributions made to all plans were $6.6 million , $4.9 million and $4.8 million in 2012 , 2011 and 2010 , respectively, and were included within salaries,
wages and benefits in the accompanying statements of operations.
78
Year Ended December 31,
2012
2011 2010
(in thousands)
Into-plane fuel cost
$
471,542
$
392,278
$
251,754
Settlement losses (gains)
175
(7,436
)
(1,483
)
Unrealized mark-to-market losses (gains)
46
3,204
(2,065
)
Aircraft fuel
$
471,763
$
388,046
$
248,206
13.
Defined Contribution 401(k) Plan