Spirit Airlines 2013 Annual Report Download - page 49

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49
terminate its professional services agreement with us and $0.5 million paid to three individual, unaffiliated holders of our
subordinated notes.
Other (income) expense, net
2013 compared to 2012
Other (income) expense, net decreased from $(0.6) million in 2012 to $(0.1) million in 2013. The decrease is primarily
driven by a decrease of $0.5 million of interest income year over year due to the lower interest rates year over year that we earn
from our money market investments.
2012 compared to 2011
In 2011 we incurred $22.1 million of other (income) expense, net compared to $(0.6) million in 2012. During 2011, the
interest expense is related to interest on debt for five months in 2011 prior to the elimination of debt in 2011 in conjunction
with the IPO in June 2011. Related-party and non-related interest expense incurred in 2011 was $21.0 million and $3.8 million,
respectively, and was offset slightly by capitalized interest. During 2012, we earned interest income on money market
investments of $0.9 million offset by other expense of $0.3 million.
Income Taxes
Our effective tax rate was 37.4% compared to 37.9% in 2012 and 37.8% in 2011. While we expect our tax rate to be
fairly consistent in the near term, it will tend to vary depending on recurring items such as the amount of income we earn in
each state and the state tax rate applicable to such income. Discrete items particular to a given year may also affect our effective
tax rates.