Alaska Airlines and Horizon Air 2014 Annual Report Download - page 146

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Shareholders
Alaska Air Group, Inc.:
We have audited the accompanying consolidated balance sheets of Alaska Air Group, Inc.
and subsidiaries as of December 31, 2014 and 2013, and the related consolidated statements of
operations, comprehensive operations, shareholders’ equity, and cash flows for each of the years in the
three-year period ended December 31, 2014. These consolidated financial statements are the
responsibility of the Company’s management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of Alaska Air Group, Inc. and subsidiaries as of December 31, 2014 and
2013, and the results of their operations and their cash flows for each of the years in the three-year
period ended December 31, 2014, in conformity with U.S. generally accepted accounting principles.
As discussed in Note 11 to the consolidated financial statements, the Company’s affinity card
agreement was materially modified effective July 2, 2013. As a result, the Company changed its
method of accounting for consideration received under this agreement in accordance with Accounting
Standards Update No. 2009-13, Multiple Deliverable Revenue Arrangements, in 2013.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), Alaska Air Group, Inc.’s internal control over financial reporting as of
December 31, 2014, based on criteria established in Internal Control - Integrated Framework
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and
our report dated February 11, 2015 expressed an unqualified opinion on the effectiveness of the
Company’s internal control over financial reporting.
/s/ KPMG LLP
Seattle, Washington
February 11, 2015
62