Spirit Airlines 2014 Annual Report Download - page 54

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54
During 2012, $12.8 million was used for financing activities driven mostly by the payment to Pre-IPO Stockholders
pursuant to the TRA offset by the proceeds received from the sale of two spare engines as part of sale and leaseback
transactions.
Commitments and Contractual Obligations
We have contractual obligations and commitments primarily with regard to future purchases of aircraft and engines,
payment of debt, and lease arrangements. The following table discloses aggregate information about our contractual obligations
as of December 31, 2014 and the periods in which payments are due (in millions):
2015 2016 - 2017 2018 - 2019 2020 and
beyond Total
Long-term debt (1) . . . . . . . . . . . . . . . . . . . . . . . . . $ 10 $ 22 $ 25 $ 91 $ 148
Interest commitments (2) . . . . . . . . . . . . . . . . . . . . 7 12 9 14 42
Operating lease obligations. . . . . . . . . . . . . . . . . . . 244 459 366 664 1,733
Flight equipment purchase obligations. . . . . . . . . . 660 1,367 1,333 1,525 4,885
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 9 3 — 19
Total future payments on contractual obligations. . $ 928 $ 1,869 $ 1,736 $ 2,294 $ 6,827
(1) Includes principal only associated with senior term loans due through 2026 and junior term loans due through 2021.
See Note 10 to the Financial Statements.
(2) Related to senior and junior term loans only.
Some of our master lease agreements provide that we pay maintenance reserves to aircraft lessors to be held as collateral
in advance of our required performance of major maintenance activities. Some maintenance reserve payments are fixed
contractual amounts, while others are based on utilization. In addition to the contractual obligations disclosed in the table
above, we have fixed maintenance reserve payments for these aircraft and related flight equipment, including estimated
amounts for contractual price escalations, which are approximately $7.6 million in 2015, $8.0 million in 2016, $7.4 million in
2017, $5.8 million in 2018, $4.2 million in 2019 and $14.1 million in 2020 and beyond.
Off-Balance Sheet Arrangements
We have significant obligations for aircraft as 61 of our 65 aircraft are financed under operating leases and therefore are
not reflected on our balance sheets. These leases expire between 2016 to 2026. Aircraft rent payments were $198.7 million and
$166.3 million for 2014 and 2013, respectively. Our aircraft lease payments for 56 of our aircraft are fixed-rate obligations.
Five of our leases provide for variable rent payments, which fluctuate based on changes in LIBOR (London Interbank Offered
Rate).
Our contractual purchase commitments consist primarily of aircraft and engine acquisitions through manufacturer and
aircraft leasing companies. As of December 31, 2014, our aircraft orders consisted of the following:
Airbus Third-Party
Lessor
A320 A320NEO A321 A321NEO A320NEO Total
2015 8 6 1 15
2016 3 9 4 16
2017 8 10 18
2018 2 6 5 13
2019 3 10 13
2020 13 13
2021 18 18
21 40 30 10 5 106