Alaska Airlines and Horizon Air 2009 Annual Report Download - page 48

INDEPENDENT AUDITORS
Selection of Independent Auditors for the
Current Fiscal Year
The Audit Committee of the Board of
Directors has selected, and the
stockholders ratified, KPMG LLP (“KPMG”)
as the Company’s independent auditors for
the current fiscal year. Representatives of
KPMG are expected to attend the meeting to
respond to questions from stockholders and
will have the opportunity to make a
statement, if they wish to do so.
Fees Paid to Independent Auditors
During fiscal years 2009, 2008 and 2007,
the Company retained KPMG as its principal
auditors. The independent auditors provided
services in the following categories and
amounts:
2009 KPMG LLP
Audit Fees for the Company’s
Annual Financial Statements
and Quarterly Reviews(1) $1,036,907
Audit-Related Fees(2) 138,365
Tax Fees(3) 22,108
All Other Fees(4) 25,000
Total Fees for 2009 $1,222,380
2008 KPMG LLP
Audit Fees for the Company’s
Annual Financial Statements
and Quarterly Reviews(1) $1,127,591
Audit-Related Fees(2) 166,224
All Other Fees(4) 30,500
Total Fees for 2008 $1,324,315
2007 KPMG LLP
Audit Fees for the Company’s
Annual Financial Statements
and Quarterly Reviews(1) $1,212,523
Audit-Related Fees(2) 155,000
Tax Fees(3) 24,159
All Other Fees(4) 33,000
Total Fees for 2007 $1,424,682
(1) Audit fees represent the arranged fees for the
years presented, including the annual audit of
internal controls as mandated under Sarbanes-
Oxley Section 404, and out-of-pocket expenses
reimbursed during the respective year.
(2) Consists of fees paid in connection with the audit
of Air Group’s employee benefit plans in all years
and, in 2008, fees incurred in connection with the
Form S-8 Registration Statement filed on June 18,
2008.
(3) Consists of fees paid for professional services in
connection with tax consulting related to specific
aircraft leasing and acquisition matters. These
services were pre-approved by the Audit
Committee.
(4) Consists of fees paid for professional services in
connection with (i) the audit of passenger facility
charges and examination of related controls,
(ii) the examination of agreed-upon procedures for
the U.S. Citizenship and Immigration Services,
and in 2007 and 2008, (iii) agreed-upon
procedures regarding Air Group’s employee
incentive pay plans.
The Audit Committee has considered
whether the provision of the non-audit
services referenced above is compatible
with maintaining the independence of the
Company’s independent auditors, and has
determined that it does not impact the
independence of the auditors.
Independent Auditor Engagement Policy
The Audit Committee has established an
Independent Auditor Engagement Policy that
is designed to ensure that the Company’s
auditor performs its services independently
and with the highest integrity and
professionalism. The Audit Committee
reviews the policy annually.
The policy provides that any engagement of
the Company’s outside auditor must be
consistent with principles determined by the
SEC, namely, whether the independent
auditor is capable of exercising impartial
judgment on all issues encompassed within
the auditor’s engagement.
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