Airtran 2009 Annual Report Download - page 54

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Changes in the components of our working capital also impact cash flow from operating activities. Changes in
the air traffic liability balance and the related accounts receivable balance have had a significant impact on our
net cash flow from operating activities. We have a liability to provide future air travel because travelers tend to
purchase air transportation in advance of their intended travel date. Advance ticket sales, which are recorded as
air traffic liability, fluctuate seasonally and also provide cash when we grow and consequently receive
additional cash for future travel. This historical source of cash will decline or change to a use to the extent our
growth slows or reverses or the amounts held back by our credit card processors increase. During 2009, our air
traffic liability balance decreased $25.2 million, negatively impacting our net cash flow from operating
activities. During 2008, our air traffic liability balance increased $32.1 million, contributing to net cash flow
from operating activities. Changes in accounts payable, accrued, and other current and non-current liabilities
also impact our cash flow from operating activities. During 2009, the $22.0 million decrease in accounts
payable and accrued and other liabilities negatively impacted net cash provided by operating activities. During
2008, the $37.3 million increase in accounts payable and accrued and other liabilities contributed favorably to
net cash flow from operating activities.
Our derivative financial instruments reduced our cash flow provided by operating activities during 2009 by
$56.1 million. Cash flow from operations was reduced by $104.9 million primarily due to payments to
counterparties (including amounts paid to unwind certain fuel-related derivatives) and changes in the fair value
of derivatives. Changes in the fair value of derivative financial instruments neither provide nor use cash until
realized. During 2009, counterparties to our derivative financial instrument arrangements released deposits held
by them as consequences of the unwinding of fuel-related derivatives and the reduction of the value of our fuel-
related derivative financial instrument obligations. The amount of deposits received from counterparties, net of
amounts paid to counterparties, aggregated $48.8 million during the year ended December 31, 2009.
We used cash to increase other assets by $5.7 million and $4.5 million during the years ended December 31,
2009 and 2008, respectively. Other assets include prepaid aircraft maintenance and other deposits, prepaid
insurance, and prepaid distribution costs. Additionally, cash was used to increase prepaid and stored fuel by
$18.3 million during the year ended December 31, 2009. During the year ended December 31, 2008, cash was
provided as we decreased prepaid and stored fuel by $16.7 million.
Investing activities in 2009 used $47.2 million in cash compared to the $328.7 million provided in 2008.
Purchases and sales of available for sales securities are classified as investing activities. During 2009, we sold
$27.1 million of available for sale securities. During 2008, we purchased $30.3 million and sold $119.0 million
of available for sale securities. Investing activities also include expenditures for aircraft deposits and the
purchase of aircraft and other property and equipment.
Aircraft purchase contracts typically require that the purchaser make pre-delivery deposits to the manufacturer.
These deposits are refunded at the time of aircraft delivery. We may invest a portion or all of the refunded
deposits in the aircraft. During 2009, we paid $11.8 million in deposits and received $26.1 million in previously
paid deposits. During 2008, we paid $59.1 million in deposits and received $114.9 million in previously paid
deposits. During 2009, we expended $90.9 million in cash, primarily for the acquisition of two B737 aircraft as
well as for the acquisition of rotable parts, buyer-furnished equipment, and other property and equipment.
Acquisitions of other property and equipment included additions to leasehold improvements and the purchase of
ground and computer equipment. During 2008, we expended $136.4 million in cash, primarily for the
acquisition of eight B737 aircraft (of which two were sold to a foreign airline) as well as for the acquisition of
rotable parts and other property and equipment.
Financing activities provided $156.5 million of cash during 2009, compared to using cash of $40.6 million
during 2008.