Spirit Airlines 2014 Annual Report Download - page 34

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Year Ended December 31,
2014 2013 2012 2011 2010
(in thousands)
Into-plane fuel cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 608,033 $ 542,523 $ 471,542 $ 392,278 $ 251,754
Realized losses (gains) . . . . . . . . . . . . . . . . . . . . . . . . . . 995 8,958 175 (7,436) (1,483)
Unrealized mark-to-market losses (gains) . . . . . . . . . . . 3,881 265 46 3,204 (2,065)
Aircraft fuel expense . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 612,909 $ 551,746 $ 471,763 $ 388,046 $ 248,206
(3) Special charges (credits) include: (i) for 2010, amounts relating to the sale of previously expensed MD-80 parts; (ii) for 2010 and 2011 amounts
relating to exit facility costs associated with moving our Detroit, Michigan maintenance operations to Fort Lauderdale, Florida; (iii) 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; (iv) 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 costs connected with the
2012 secondary offerings; and for 2013, costs related to the 2013 secondary offering; (v) for 2013 and 2014, $0.1 million in costs related to the
DCA exit. 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 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 and 2013 primarily relates to interest related to the TRA. Interest expense in 2014 primarily relates to interest
related to the long-term debt, commitment fees and underpayment of Federal Excise Tax for fuel purchases during the period between July 1, 2009
and August 31, 2014.
(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.
(6) 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.
The following table presents balance sheet data for the periods presented:
As of December 31,
2014 2013 2012 2011 2010
Balance Sheet Data: (in thousands)
Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . $ 632,784 $ 530,631 $ 416,816 $ 343,328 $ 82,714
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,602,981 1,180,765 919,884 745,813 475,757
Long-term debt, including current portion . . . . . . . . 146,248 — — — 260,827
Mandatorily redeemable preferred stock. . . . . . . . . . — — — — 79,717
Stockholders' equity (deficit). . . . . . . . . . . . . . . . . . . 1,003,075 769,117 582,535 466,706 (105,077)