Spirit Airlines 2012 Annual Report Download - page 86

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Notes to Financial Statements—(Continued)
for an immaterial error in the original estimation of the liability. This adjustment reduced the liability with an offset to additional paid in capital.
The term of the TRA will continue until the first to occur of (a) the full payment of all amounts required under the agreement with respect to utilization or expiration of
all of the Pre-IPO NOLs, (b) the end of the taxable year including the tenth anniversary of the IPO or (c) a change in control of the Company. The amount and timing of
payments under the TRA will depend upon a number of factors, including, but not limited to, the amount and timing of taxable income generated in the future and any
future
limitations that may be imposed on the Company's ability to use the Pre-IPO NOLs. The Company paid $27.2 million , or 90% of the tax savings realized from the
utilization of NOLs in 2011, including $0.3 million of applicable interest in 2012 related to the TRA. As of December 31, 2012 an estimated remaining cash benefit of $8.0
million is expected to be paid to the Pre-IPO Stockholders under the terms of the TRA in 2013.
19. Quarterly Financial Data (Unaudited)
Quarterly results of operations for the year ended December 31, 2012 are summarized below:
85
Three Months Ended
March 31
June 30
September 30
December 31
(in thousands, except per share amounts)
2012
Operating revenue
$
301,495
$
346,308
$
342,317
$
328,268
Operating income
37,244
55,132
49,681
31,933
Net income
23,419
34,591
30,884
19,566
Basic earnings per share
0.32
0.48
0.43
0.27
Diluted earnings per share
0.32
0.48
0.43
0.27
2011
Operating revenue
$
232,662
$
275,891
$
288,714
$
273,919
Operating income
26,844
34,959
44,556
38,023
Net income
7,883
16,917
27,657
23,991
Basic earnings per share
0.30
0.41
0.38
0.33
Diluted earnings per share
0.30
0.41
0.38
0.33