Alaska Airlines and Horizon Air 2010 Annual Report Download - page 64

Permitted services under the policy include
audit services, audit-related services, certain
tax services and certain other services
not prohibited by SEC rules or other federal
regulations. Before retaining its independent
accountant for non-audit services, the Audit
Committee will consider factors such as
whether the services might compromise the
accountant’s independence, whether the
accountant is the best provider for the
services, and the appropriate proportion of
audit to non-audit services.
All services must be pre-approved by the
Audit Committee except for certain services
other than audit, review or attest services
that meet the “de minimis exception” under
17 CFR Section 210.2-01, namely:
• the aggregate amount of fees paid for
all such services is not more than five
percent (5%) of the total fees paid by
the Company to its accountant during
the fiscal year in which the services are
provided;
• such services were not recognized by
the Company at the time of the
engagement to be non-audit services;
and
• such services are promptly brought to
the attention of the Audit Committee
and approved prior to the completion of
the audit.
During fiscal years 2010, 2009 and 2008,
there were no such services that were
performed pursuant to the “de minimis
exception.”
AUDIT COMMITTEE REPORT
The following report of the Audit Committee
shall not be deemed to be soliciting material
or to be filed with the SEC under the
Exchange Act, as amended, or incorporated
by reference in any document so filed.
Review of Our Company’s Audited Financial
Statements
The Audit Committee has reviewed and
discussed with management and KPMG, the
Company’s independent accountants, the
Company’s audited financial statements
included in the Company’s Annual Report on
Form 10-K for the fiscal year ended
December 31, 2010. The Committee
believes that management maintains an
effective system of internal controls that
results in fairly presented financial
statements.
The discussions with KPMG also included
the material and judgmental matters
required by Statement on Auditing Standards
No. 61, Communication with Audit
Committees, as amended, by the Auditing
Standards Board of the American Institute of
Certified Public Accountants.
The Committee has also received and
reviewed the written disclosures and the
KPMG letter required by PCAOB Rule 3526,
Communicating with Audit Committees
Concerning Independence, and has
discussed with KPMG their independence.
Based on the review and discussions
described above, the Audit Committee
recommended to the Board of Directors that
the audited financial statements be included
in Alaska Air Group’s Annual Report on Form
10-K for the fiscal year ended December 31,
2010.
Audit Committee of the Board of Directors
Patricia M. Bedient, Chair
Marion C. Blakey, Member
Mark R. Hamilton, Member*
Dennis F. Madsen, Member
* Mr. Hamilton resigned from the Board
effective January 9, 2011.
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