Spirit Airlines 2013 Annual Report Download - page 74

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Notes to Financial Statements—(Continued)
74
9. Net Income per Share
The following table sets forth the computation of basic and diluted earnings per common share:
Year Ended December 31,
2013 2012 2011
(in thousands, except per share amounts)
Numerator:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 176,918 $ 108,460 $ 76,448
Denominator:
Weighted-average shares outstanding, basic. . . . . . . . . . . . . . 72,593 72,386 53,241
Effect of dilutive stock awards . . . . . . . . . . . . . . . . . . . . . . . . 406 205 274
Adjusted weighted-average shares outstanding, diluted . . . . . 72,999 72,591 53,515
Net Income per Share:
Basic earnings per common share. . . . . . . . . . . . . . . . . . . . . . $ 2.44 $ 1.50 $ 1.44
Diluted earnings per common share . . . . . . . . . . . . . . . . . . . . $ 2.42 $ 1.49 $ 1.43
Anti-dilutive weighted-average shares 1 88 70
10. Debt, Related-Party Transactions and Other Obligations
In connection with the closing of the IPO, the Company consummated the transaction contemplated by the
Recapitalization Agreement on June 1, 2011, which resulted in the repayment or exchange for common stock of all of the
Company’s notes and preferred stock. The Company’s principal stockholders provided certain consulting services to the
Company for a management fee of $0.3 million in 2011. In connection with the IPO, the management fee agreement with the
Company's principal stockholders was terminated. See Note 18.
As of December 31, 2013 and 2012, there was no outstanding long term debt or outstanding amounts due to related
parties. During the fourth quarter of 2013, the Company executed an agreement for the lease of two quick engine change kits
(QEC kit), classified as capital leases. Aggregate annual principal maturities of capital leases as of December 31, 2013, were
$1.0 million in 2014, $1.1 million in 2015, $1.0 million in 2016, $0.0 million in 2017 and $0.0 million in 2018 and $0.0 million
in 2019 and beyond. As of December 31, 2012, the Company had no outstanding amounts related to capital leases.
The Company had a line of credit for $18.6 million and $18.6 million related to corporate credit cards, of which the
Company had drawn $3.7 million and $3.2 million as of December 31, 2013 and 2012, respectively, which is included in
accounts payable.
As of December 31, 2013, the Company had lines of credit with counterparties for both physical fuel delivery and jet fuel
derivatives in the amount of $34.5 million. As of December 31, 2013, the Company had drawn $13.8 million on these lines of
credit, which is included in other current liabilities. As of December 31, 2012, the Company had lines of credit with
counterparties for both physical fuel delivery and jet fuel derivatives in the amount $18.0 million. As of December 31, 2012,
the Company had drawn $11.2 million on these lines of credit, which is included in other current liabilities. The Company is
required to post collateral for any excess above the lines of credit if the derivatives are in a net liability position and make
periodic payments in order to maintain an adequate undrawn portion for physical fuel delivery.
11. Leases and Prepaid Maintenance Deposits
The Company leases various types of equipment and property, primarily aircraft, spare engines and airport facilities
under leases, which expire in various years through 2032. Lease terms are generally 3 to 15 years for aircraft and up to 25 years
for other leased equipment and property.
Total rental expense for all leases charged to operations for the years ended 2013, 2012 and 2011 was $207.4 million,
$172.4 million and $139.1 million, respectively. Total rental expense charged to operations for aircraft and engine operating
leases for the years ended December 31, 2013, 2012 and 2011 was $169.7 million, $143.6 million and $116.5 million,