Alaska Airlines and Horizon Air 2010 Annual Report Download - page 195

Other Assets
Other assets consisted of the following at
December 31 (in millions):
2010 2009
Restricted deposits (primarily
restricted investments) ..... $ 83.6 $ 86.7
Long-term asset related to
Terminal 6 at LAX airport .... 31.3 —
Deferred costs and other* .... 52.7 56.5
$167.6 $143.2
* Deferred costs and other includes deferred financing costs,
long-term prepaid rent, lease deposits and other items.
In 2009, the Company announced plans to move
from Terminal 3 to Terminal 6 at Los Angeles
International Airport (LAX). As part of this move,
the Company has agreed to manage and fund up
to $175 million of the project during the design
and construction phase. The project is estimated
to cost approximately $250 million and is
expected to be completed in 2012. The
Company expects Los Angeles World Airports
and the Transportation Security Administration to
reimburse the Company for the majority of the
construction costs either during the course of, or
upon the completion of, construction. The
Company is currently working with the City of Los
Angeles and Los Angeles World Airports on a
funding agreement and expects to have it
finalized in the near future. The Company
expects that its proprietary share will be
approximately $25 million of the total cost of the
project. As of December 31, 2010, we
capitalized $34 million associated with this
project, which represents total project costs to
date.
At December 31, 2010, the Company’s
restricted deposits were primarily restricted
investments used to guarantee various letters of
credit and workers compensation self-insurance
programs. The restricted investments consist of
highly liquid securities with original maturities of
three months or less. They are carried at cost,
which approximates fair value.
Other Accrued Liabilities (current)
Other accrued liabilities consisted of the
following at December 31 (in millions):
2010 2009
Mileage Plan current liabilities ....... $278.0 $267.9
Pension liability (nonqualified plans) . . 2.3 2.5
Postretirement medical benefits
liability ........................ 4.9 4.2
Other* .......................... 216.0 199.9
$501.2 $474.5
* Other consists of property and transportation taxes
collected but not yet remitted and accruals for ground
operations, facilities rent, maintenance, and fuel, among
other items.
Other Liabilities (noncurrent)
Other liabilities consisted of the following at
December 31 (in millions):
2010 2009
Mileage Plan liability ............... $ 13.8 $ 13.2
Uncertain tax position liability (see
Note 11) ...................... 1.5 1.3
Aircraft rent-related ................ 36.2 63.2
Other* .......................... 71.5 70.5
$123.0 $148.2
* Other consists of accrued workers’ compensation and
deferred credits on aircraft purchases, among other items.
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss
consisted of the following at December 31 (in
millions, net of tax):
2010 2009
Unrealized loss (gain) on marketable
securities considered
available-for-sale ................ $ (8.0) $ (8.7)
Related to pension plans ........... 255.4 238.8
Related to postretirement medical
benefits ....................... 14.3 11.4
Related to interest rate derivatives .... 5.5 (1.5)
$267.2 $240.0
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ŠForm 10-K