Airtran 2001 Annual Report Download - page 33

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8. Leases
Total rental expense charged to operations for aircraft, facilities and office space for the years ended December
31,
2001, 2000 and 1999 was
approximately $56.7 million, $30.9 million and $21.7 million, respectively.
We tease six DC-9s, one
8737
and 22 8717s under operating leases with terms that expire ttlrough 2020. We have the option to renew the DC-9
leases for one or more periods
of
not less than six months. We have the option to renew the 8717 leases for periods ranging from one to four
years. The 8717 leases have purchase options
at
or near the end of the lease term
at
fair market value, and
two
have purchase options based on a
stated percentage of the lessor's defined cost
of
the aircraft
at
the end
of
the 13th year
of
the lease term. TIle 8717 leases
are
the result of sate and
leaseback transactions. Deferred gains from these transactions are being amortized over the terms
of
the leases. At December
31,
2001 and 2000,
unamortized deferred gains were $44.1 million and
$10.1
million, respectively. See Note
6.
We also lease facilities from local airport authorities or other
carriers, as well as office space under operating leases with terms ranging from one month to
13
years.
In
addition, we lease ground equipment and
certain rotables under capital leases.
The amounts applicable to capital leases included
in
property and equipment were:
As
of
December
31,
(In
thousands)
Flight equipment
Less: Accumulated depreciation
2001
2000
$2,627
$2,627
(285)
(111)
$2,342
$2,516
The following schedule outlines the future minimum lease payments at December
31,
2001, under noncancelable operating leases and capital leases
with initial terms
in
excess
of
one year:
(In
thousands)
2002
2003
2004
2005
2006
Thereafter
Total mini!llum lease payments
Less: amount representing interest
Present value of future payments
Less: current obligations
Long-term obligations
Capital lease obligations are included
in
long-term debt in our Consolidated Balance Slleets.
Capital
Leases
$564
565
535
95
1,759
(165)
1,594
(482)
$1,112
Operating
Leases
$81,192
81,123
76,303
74,313
72,687
668,032
$1,053,650
9.
Comprehensive
Income
(Loss)
Comprehensive income (loss) encompasses net income (loss) and "other comprehensive income
{loss),"
which includes all other nonowner transactions
and events that change stockholders' equity. Other comprellensive income (loss)
is
composed
of
changes
in
the fair value
of
our derivative financial
instruments that qualify for hedge accounting. Comprehensive loss totaled $6.8 million for 2001. The difference between net loss and comprehensive
loss for 2001
is
as follows:
(In
thousands)
Net loss
Unrealized loss on derivative instruments
Comprehensive loss
2001
$(2,757)
(6,846)
$(9,603)