Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 03, 2014 | Jun. 28, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'SKYWEST INC | ' | ' |
Entity Central Index Key | '0000793733 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $682,092,110 |
Entity Common Stock, Shares Outstanding | ' | 51,375,679 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $170,636 | $133,772 |
Marketable securities | 487,239 | 556,117 |
Restricted cash | 12,219 | 19,553 |
Income tax receivable | 840 | ' |
Receivables, net | 111,186 | 130,102 |
Inventories, net | 138,094 | 113,581 |
Prepaid aircraft rents | 360,781 | 325,999 |
Deferred tax assets | 156,050 | 124,320 |
Other current assets | 27,392 | 30,596 |
Total current assets | 1,464,437 | 1,434,040 |
PROPERTY AND EQUIPMENT: | ' | ' |
Aircraft and rotable spares | 4,080,886 | 3,997,926 |
Deposits on aircraft | 40,000 | ' |
Buildings and ground equipment | 279,965 | 274,085 |
Total property and equipment, gross | 4,400,851 | 4,272,011 |
Less-accumulated depreciation and amortization | -1,749,058 | -1,561,015 |
Total property and equipment, net | 2,651,793 | 2,710,996 |
OTHER ASSETS | ' | ' |
Intangible assets, net | 14,998 | 17,248 |
Other assets | 101,991 | 92,353 |
Total other assets | 116,989 | 109,601 |
Total assets | 4,233,219 | 4,254,637 |
CURRENT LIABILITIES: | ' | ' |
Current maturities of long-term debt | 177,389 | 171,454 |
Accounts payable | 245,518 | 222,671 |
Accrued salaries, wages and benefits | 133,002 | 121,352 |
Accrued aircraft rents | 7,492 | 12,745 |
Taxes other than income taxes | 19,626 | 22,353 |
Income tax payable | ' | 1,255 |
Other current liabilities | 37,437 | 39,595 |
Total current liabilities | 620,464 | 591,425 |
OTHER LONG TERM LIABILITIES | 76,305 | 57,422 |
LONG TERM DEBT, net of current maturities | 1,293,179 | 1,470,568 |
DEFERRED INCOME TAXES PAYABLE | 727,358 | 657,620 |
DEFERRED AIRCRAFT CREDITS | 80,974 | 90,427 |
COMMITMENTS AND CONTINGENCIES (Note 6) | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock, 5,000,000 shares authorized; none issued | ' | ' |
Common stock, no par value, 120,000,000 shares authorized; 77,325,702 and 76,713,154 shares issued, respectively | 618,511 | 609,763 |
Retained earnings | 1,197,819 | 1,147,117 |
Treasury stock, at cost, 26,095,636 and 25,280,364 shares, respectively | -382,950 | -371,211 |
Accumulated other comprehensive income (Note 1) | 1,559 | 1,506 |
Total stockholders' equity | 1,434,939 | 1,387,175 |
Total liabilities and stockholders' equity | $4,233,219 | $4,254,637 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | ' | ' |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 77,325,702 | 76,713,154 |
Treasury stock, at cost, shares | 26,095,636 | 25,280,364 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING REVENUES: | ' | ' | ' |
Passenger | $3,239,525 | $3,467,546 | $3,584,777 |
Ground handling and other | 58,200 | 66,826 | 70,146 |
Total operating revenues | 3,297,725 | 3,534,372 | 3,654,923 |
OPERATING EXPENSES: | ' | ' | ' |
Salaries, wages and benefits | 1,211,307 | 1,171,689 | 1,155,051 |
Aircraft maintenance, materials and repairs | 686,381 | 659,869 | 712,926 |
Aircraft rentals | 325,360 | 333,637 | 346,526 |
Depreciation and amortization | 245,005 | 251,958 | 254,182 |
Aircraft fuel | 193,513 | 426,387 | 592,871 |
Station rentals and landing fees | 114,688 | 169,855 | 174,838 |
Ground handling services | 129,119 | 125,148 | 131,462 |
Acquisition related costs | ' | ' | 5,770 |
Other, net | 239,241 | 229,842 | 240,192 |
Total operating expenses | 3,144,614 | 3,368,385 | 3,613,818 |
OPERATING INCOME | 153,111 | 165,987 | 41,105 |
OTHER INCOME (EXPENSE): | ' | ' | ' |
Interest income | 3,689 | 7,928 | 8,236 |
Interest expense | -68,658 | -77,380 | -80,383 |
Purchase accounting adjustment | ' | ' | -5,711 |
Other, net | 10,390 | -10,639 | -13,417 |
Total other expense, net | -54,579 | -80,091 | -91,275 |
INCOME (LOSS) BEFORE INCOME TAXES | 98,532 | 85,896 | -50,170 |
PROVISION (BENEFIT) FOR INCOME TAXES | 39,576 | 34,739 | -22,835 |
NET INCOME (LOSS) | 58,956 | 51,157 | -27,335 |
BASIC EARNINGS (LOSS) PER SHARE (in dollars per share) | $1.14 | $1 | ($0.52) |
DILUTED EARNINGS (LOSS) PER SHARE (in dollars per share) | $1.12 | $0.99 | ($0.52) |
Weighted average common shares: | ' | ' | ' |
Basic (in shares) | 51,688 | 51,090 | 52,201 |
Diluted (in shares) | 52,422 | 51,746 | 52,201 |
COMPREHENSIVE INCOME (LOSS): | ' | ' | ' |
Net income (loss) | 58,956 | 51,157 | -27,335 |
Proportionate share of other companies foreign currency translation adjustment, net of taxes | 66 | -251 | -295 |
Net unrealized appreciation (depreciation) on marketable securities, net of taxes | -13 | 316 | 534 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $59,009 | $51,222 | ($27,096) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
In Thousands, unless otherwise specified | |||||
Balance at Dec. 31, 2010 | $1,420,923 | $589,610 | $1,139,739 | ($309,628) | $1,202 |
Balance (in shares) at Dec. 31, 2010 | ' | 75,245 | ' | -21,072 | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income (loss) | -27,335 | ' | -27,335 | ' | ' |
Proportionate share of other companies foreign currency translation adjustment, net of tax of $8, $154 and $180 for the year ended 2013, 2012 and 2011, respectively | -295 | ' | ' | ' | -295 |
Net unrealized appreciation (depreciation) on marketable securities net of tax of $43, $194 and $327 for the year ended 2013, 2012 and 2011, respectively | 534 | ' | ' | ' | 534 |
Exercise of common stock options and issuance of restricted stock | 70 | 70 | ' | ' | ' |
Exercise of common stock options and issuance of restricted stock (in shares) | ' | 289 | ' | ' | ' |
Sale of common stock under employee stock purchase plan | 4,372 | 4,372 | ' | ' | ' |
Sale of common stock under employee stock purchase plan (in shares) | ' | 300 | ' | ' | ' |
Stock based compensation expense related to the issuance of stock options and restricted stock | 5,365 | 5,365 | ' | ' | ' |
Tax (deficiency) benefit from exercise of common stock options | -432 | -432 | ' | ' | ' |
Treasury stock purchases | -60,681 | ' | ' | -60,681 | ' |
Treasury stock purchases (in shares) | ' | ' | ' | -4,149 | ' |
Cash dividends declared ($0.16 per share) | -8,260 | ' | -8,260 | ' | ' |
Balance at Dec. 31, 2011 | 1,334,261 | 598,985 | 1,104,144 | -370,309 | 1,441 |
Balance (in shares) at Dec. 31, 2011 | ' | 75,834 | ' | -25,221 | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income (loss) | 51,157 | ' | 51,157 | ' | ' |
Proportionate share of other companies foreign currency translation adjustment, net of tax of $8, $154 and $180 for the year ended 2013, 2012 and 2011, respectively | -251 | ' | ' | ' | -251 |
Net unrealized appreciation (depreciation) on marketable securities net of tax of $43, $194 and $327 for the year ended 2013, 2012 and 2011, respectively | 316 | ' | ' | ' | 316 |
Exercise of common stock options and issuance of restricted stock | 1,879 | 1,879 | ' | ' | ' |
Exercise of common stock options and issuance of restricted stock (in shares) | ' | 392 | ' | ' | ' |
Sale of common stock under employee stock purchase plan | 4,068 | 4,068 | ' | ' | ' |
Sale of common stock under employee stock purchase plan (in shares) | ' | 487 | ' | ' | ' |
Stock based compensation expense related to the issuance of stock options and restricted stock | 4,693 | 4,693 | ' | ' | ' |
Tax (deficiency) benefit from exercise of common stock options | 138 | 138 | ' | ' | ' |
Treasury stock purchases | -902 | ' | ' | -902 | ' |
Treasury stock purchases (in shares) | ' | ' | ' | -59 | ' |
Cash dividends declared ($0.16 per share) | -8,184 | ' | -8,184 | ' | ' |
Balance at Dec. 31, 2012 | 1,387,175 | 609,763 | 1,147,117 | -371,211 | 1,506 |
Balance (in shares) at Dec. 31, 2012 | ' | 76,713 | ' | -25,280 | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income (loss) | 58,956 | ' | 58,956 | ' | ' |
Proportionate share of other companies foreign currency translation adjustment, net of tax of $8, $154 and $180 for the year ended 2013, 2012 and 2011, respectively | 66 | ' | ' | ' | 66 |
Net unrealized appreciation (depreciation) on marketable securities net of tax of $43, $194 and $327 for the year ended 2013, 2012 and 2011, respectively | -13 | ' | ' | ' | -13 |
Exercise of common stock options and issuance of restricted stock | 835 | 835 | ' | ' | ' |
Exercise of common stock options and issuance of restricted stock (in shares) | ' | 313 | ' | ' | ' |
Sale of common stock under employee stock purchase plan | 3,696 | 3,696 | ' | ' | ' |
Sale of common stock under employee stock purchase plan (in shares) | ' | 300 | ' | ' | ' |
Stock based compensation expense related to the issuance of stock options and restricted stock | 4,363 | 4,363 | ' | ' | ' |
Tax (deficiency) benefit from exercise of common stock options | -146 | -146 | ' | ' | ' |
Treasury stock purchases | -11,739 | ' | ' | -11,739 | ' |
Treasury stock purchases (in shares) | ' | ' | ' | -816 | ' |
Cash dividends declared ($0.16 per share) | -8,254 | ' | -8,254 | ' | ' |
Balance at Dec. 31, 2013 | $1,434,939 | $618,511 | $1,197,819 | ($382,950) | $1,559 |
Balance (in shares) at Dec. 31, 2013 | ' | 77,326 | ' | -26,096 | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ' | ' | ' |
Proportionate share of other companies foreign currency translation adjustment, tax | $8 | $154 | $180 |
Net unrealized appreciation on marketable securities, tax | $43 | $194 | $327 |
Cash dividends declared (in dollars per share) | $0.16 | $0.16 | $0.16 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income (loss) | $58,956 | $51,157 | ($27,335) |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 245,005 | 251,958 | 254,182 |
Stock based compensation expense | 4,363 | 4,693 | 5,365 |
Loss (gain) on sale of property and equipment | ' | 621 | -29 |
Undistributed losses (earnings) of other companies | -10,830 | 10,199 | 13,273 |
Capitalized Brasilia engine overhauls | -29,606 | -25,742 | -17,792 |
Adjustment to purchase accounting gain | ' | ' | 5,711 |
Net increase (decrease) in deferred income taxes | 38,007 | 34,800 | -21,537 |
Changes in operating assets and liabilities: | ' | ' | ' |
Decrease (increase) in restricted cash | 7,334 | -119 | 2,341 |
Decrease (increase) in receivables | 18,916 | 408 | -10,665 |
Decrease (increase) in income tax receivable | -840 | 1,568 | 1,788 |
Decrease (increase) in inventories | -24,513 | 1,630 | -8,639 |
Increase in other current assets and prepaid aircraft rents | -31,578 | -39,451 | -28,668 |
Decrease in deferred aircraft credits | -8,432 | -7,112 | -8,586 |
Increase (decrease) in accounts payable and accrued aircraft rents | 17,594 | -7,653 | 10,161 |
Increase (decrease) in other current liabilities | 5,514 | 11,867 | -7,444 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 289,890 | 288,824 | 162,126 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of marketable securities | -488,564 | -736,330 | -683,396 |
Sales of marketable securities | 557,424 | 677,798 | 857,031 |
Proceeds from the sale of property and equipment | 293 | 15,265 | 193 |
Proceeds from installment payment of equity shares of TRIP | 16,658 | 8,064 | ' |
Acquisition of property and equipment: | ' | ' | ' |
Aircraft and rotable spare parts | -102,499 | -57,277 | -158,942 |
Deposits on aircraft | -40,000 | ' | -13,500 |
Buildings and ground equipment | -9,502 | -7,662 | -13,756 |
Decrease (increase) in other assets | 229 | -8,218 | 817 |
NET CASH USED IN INVESTING ACTIVITIES | -65,961 | -108,360 | -11,553 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from issuance of long-term debt | ' | 44,900 | 76,454 |
Principal payments on long-term debt | -171,453 | -218,270 | -159,038 |
Return of deposits on aircraft and rotable spare parts | ' | ' | 13,900 |
Net proceeds from issuance of common stock | 4,385 | 6,231 | 4,446 |
Purchase of treasury stock | -11,739 | -902 | -60,681 |
Payment of cash dividends | -8,258 | -8,177 | -8,466 |
NET CASH USED IN FINANCING ACTIVITIES | -187,065 | -176,218 | -133,385 |
Increase in cash and cash equivalents | 36,864 | 4,246 | 17,188 |
Cash and cash equivalents at beginning of year | 133,772 | 129,526 | 112,338 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 170,636 | 133,772 | 129,526 |
Cash paid (received) during the year for: | ' | ' | ' |
Interest, net of capitalized amounts | 71,323 | 78,407 | 81,187 |
Income taxes | $3,678 | ($1,354) | ($2,198) |
Nature_of_Operations_and_Summa
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | ' | ||||||||||||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | ' | ||||||||||||||||||||||
(1) Nature of Operations and Summary of Significant Accounting Policies | |||||||||||||||||||||||
SkyWest, Inc. (the "Company"), through its subsidiaries, SkyWest Airlines, Inc. ("SkyWest Airlines") and ExpressJet Airlines, Inc. ("ExpressJet") operates the largest regional airline in the United States. As of December 31, 2013, SkyWest and ExpressJet offered scheduled passenger and air freight service with approximately 4,000 total daily departures to different destinations in the United States, Canada, Mexico and the Caribbean. Additionally, the Company provides ground handling services for other airlines throughout its system. As of December 31, 2013, the Company had a combined fleet of 757 aircraft consisting of the following: | |||||||||||||||||||||||
CRJ200 | ERJ145 | ERJ135 | CRJ700 | CRJ900 | EMB120 | Total | |||||||||||||||||
United | 92 | 242 | 9 | 70 | — | 36 | 449 | ||||||||||||||||
Delta | 125 | — | — | 60 | 60 | 9 | 254 | ||||||||||||||||
American | 23 | — | — | — | — | — | 23 | ||||||||||||||||
US Airways | 11 | — | — | — | 4 | — | 15 | ||||||||||||||||
Alaska | — | — | — | 7 | — | — | 7 | ||||||||||||||||
Subleased to an un-affiliated entity | 2 | — | — | — | — | — | 2 | ||||||||||||||||
Unassigned | 7 | — | — | — | — | — | 7 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | 260 | 242 | 9 | 137 | 64 | 45 | 757 | ||||||||||||||||
For the year ended December 31, 2013, approximately 60.9% of the Company's aggregate capacity was operated for United, approximately 33.6% was operated for Delta approximately 1.3% was operated for Alaska, approximately 1.6% was operated for US Airways and approximately 2.6% was operated for American. | |||||||||||||||||||||||
SkyWest Airlines has been a code-share partner with Delta in Salt Lake City and United in Los Angeles since 1987 and 1997, respectively. In 1998, SkyWest Airlines expanded its relationship with United to provide service in Portland, Seattle/Tacoma, San Francisco and additional Los Angeles markets. In 2004, SkyWest Airlines expanded its United Express operations to provide service in Chicago. In May 2011, SkyWest Airlines entered into a capacity purchase agreement with Alaska. In November 2011, SkyWest Airlines entered into a code share agreement with US Airways. In September, 2012, SkyWest Airlines and ExpressJet entered into code share agreements (the "American Agreements") with American Airlines, Inc. ("American"). As of December 31, 2013, SkyWest Airlines operated as a Delta Connection carrier in Salt Lake City and Minneapolis, a United Express carrier in Los Angeles, San Francisco, Denver, Houston, Chicago and the Pacific Northwest, an Alaska carrier in Seattle/ Tacoma and Portland, a US Airways carrier in Phoenix and an American carrier in Los Angeles. | |||||||||||||||||||||||
On November 17, 2011, the Company's wholly-owned subsidiaries, Atlantic Southeast Airlines, Inc. and ExpressJet Airlines, Inc., consolidated their operations under a single operating certificate, and on December 31, 2011, Atlantic Southeast Airlines, Inc. and ExpressJet Airlines, Inc. were merged, with the surviving corporation named ExpressJet Airlines, Inc. (the "ExpressJet Combination"). In the following Notes to Consolidated Financial Statements, "Atlantic Southeast" refers to Atlantic Southeast Airlines, Inc. for periods prior to the ExpressJet Combination, "ExpressJet Delaware" refers to ExpressJet Airlines, Inc., a Delaware corporation, for periods prior to the ExpressJet Combination, and "ExpressJet" refers to ExpressJet Airlines, Inc., the Utah corporation resulting from the combination of Atlantic Southeast and ExpressJet Delaware, for periods subsequent to the ExpressJet Combination. At the time of the ExpressJet Combination, Atlantic Southeast had been a code-share partner with Delta in Atlanta since 1984 and a code-share partner with United since February 2010. As of December 31, 2013, ExpressJet operated as a Delta Connection carrier in Atlanta and Detroit and a United Express carrier in Chicago (O'Hare), Washington, D.C. (Dulles International Airport), Cleveland, Newark, Houston and Denver. | |||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||
The Company's consolidated financial statements include the accounts of SkyWest, Inc. and its subsidiaries, including SkyWest Airlines and ExpressJet, with all inter-company transactions and balances having been eliminated. | |||||||||||||||||||||||
In preparing the accompanying consolidated financial statements, the Company has reviewed, as determined necessary by the Company's management, events that have occurred after December 31, 2013, up until the filing of the Company's annual report with the U.S. Securities and Exchange Commission. | |||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company classified $12.2 million and $19.6 million of cash as restricted cash as required by the Company's workers' compensation policy and classified it accordingly in the consolidated balance sheets as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
Marketable Securities | |||||||||||||||||||||||
The Company's investments in marketable debt and equity securities are deemed by management to be available for sale and are reported at fair market value with the net unrealized appreciation (depreciation) reported as a component of accumulated other comprehensive income in stockholders' equity. At the time of sale, any realized appreciation or depreciation, calculated by the specific identification method, is recognized in other income and expense. The Company's position in marketable securities as of December 31, 2013 and 2012 was as follows (in thousands): | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Investment Types | Cost | Market Value | Cost | Market Value | |||||||||||||||||||
Commercial paper | $ | — | $ | — | $ | 3,510 | $ | 3,514 | |||||||||||||||
Bond and bond funds | 489,071 | 489,294 | 555,603 | 556,133 | |||||||||||||||||||
Asset backed securities | 182 | 190 | 296 | 314 | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
489,253 | 489,484 | 559,409 | 559,961 | ||||||||||||||||||||
Unrealized appreciation | 231 | — | 552 | — | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Total | 489,484 | 489,484 | $ | 559,961 | $ | 559,961 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Marketable securities had the following maturities as of December 31, 2013 (in thousands): | |||||||||||||||||||||||
Maturities | Amount | ||||||||||||||||||||||
Year 2014 | $ | 304,353 | |||||||||||||||||||||
Years 2015 through 2018 | 182,873 | ||||||||||||||||||||||
Years 2019 through 2023 | — | ||||||||||||||||||||||
Thereafter | 2,258 | ||||||||||||||||||||||
As of December 31, 2013, the Company had classified $487.2 million of marketable securities as short-term since it has the intent to maintain a liquid portfolio and the ability to redeem the securities within one year. The Company has classified approximately $2.2 million of investments as non-current and has identified them as "Other assets" in the Company's consolidated balance sheet as of December 31, 2013 (see Note 7). | |||||||||||||||||||||||
Inventories | |||||||||||||||||||||||
Inventories include expendable parts, fuel and supplies and are valued at cost (FIFO basis) less an allowance for obsolescence based on historical results and management's expectations of future operations. Expendable inventory parts are charged to expense as used. An obsolescence allowance for flight equipment expendable parts is accrued based on estimated lives of the corresponding fleet types and salvage values. The inventory allowance as of December 31, 2013 and 2012 was $10.1 million and $9.2 million, respectively. These allowances are based on management estimates, which are subject to change. | |||||||||||||||||||||||
Property and Equipment | |||||||||||||||||||||||
Property and equipment are stated at cost and depreciated over their useful lives to their estimated residual values using the straight-line method as follows: | |||||||||||||||||||||||
Assets | Depreciable Life | Residual Value | |||||||||||||||||||||
Aircraft and rotable spares | 10 - 18 years | 0 - 30% | |||||||||||||||||||||
Ground equipment | 5 - 10 years | 0% | |||||||||||||||||||||
Office equipment | 5 - 7 years | 0% | |||||||||||||||||||||
Leasehold improvements | 15 years or life of the lease | 0% | |||||||||||||||||||||
Buildings | 20 - 39.5 years | 0% | |||||||||||||||||||||
Impairment of Long Lived Assets | |||||||||||||||||||||||
As of December 31, 2013, the Company had approximately $2.7 billion of property and equipment and related assets. Additionally, as of December 31, 2013, the Company had approximately $15.0 million in intangible assets. In accounting for these long-lived and intangible assets, the Company makes estimates about the expected useful lives of the assets, the expected residual values of certain of these assets, and the potential for impairment based on the fair value of the assets and the cash flows they generate. On September 7, 2005, the Company completed the acquisition of all of the issued and outstanding capital stock of Atlantic Southeast and recorded an intangible asset of approximately $33.7 million relating to the acquisition. The intangible asset is being amortized over fifteen years under the straight-line method. As of December 31, 2013 and 2012, the Company had $18.7 million and $16.5 million in accumulated amortization expense, respectively. Factors indicating potential impairment include, but are not limited to, significant decreases in the market value of the long-lived assets, a significant change in the condition of the long-lived assets and operating cash flow losses associated with the use of the long-lived assets. On a periodic basis, the Company evaluates whether impairment indicators are present. When considering whether or not impairment of long-lived assets exists, we group similar assets together at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and compare the undiscounted cash flows for each asset group to the net carrying amount of the assets supporting the asset group. Asset groupings are done at the fleet or contract level. The Company did not recognize any impairments of long-lived assets during 2013, 2012, or 2011. | |||||||||||||||||||||||
Capitalized Interest | |||||||||||||||||||||||
Interest is capitalized on aircraft purchase deposits as a portion of the cost of the asset and is depreciated over the estimated useful life of the asset. During the years ended December 31, 2013, 2012 and 2011, the Company capitalized interest costs of approximately $1.2 million, $0, and $0, respectively. | |||||||||||||||||||||||
Maintenance | |||||||||||||||||||||||
The Company operates under an FAA-approved continuous inspection and maintenance program. The Company uses the direct expense method of accounting for its regional jet engine overhauls wherein the expense is recorded when the overhaul event occurs. The Company has an engine services agreement with a third party vendor to provide long-term engine services covering the scheduled and unscheduled repairs for certain of its Bombardier CRJ700 Regional Jets ("CRJ700s") and Embraer S.A. ("Embraer") ERJ145 regional jet ("ERJ 145") aircraft. Under the terms of the agreement, the Company pays a set dollar amount per engine hour flown on a monthly basis and the third party vendor will assume the responsibility to repair the engines at no additional cost to the Company, subject to certain specified exclusions. Maintenance costs under these contracts are recognized when the engine hour is flown pursuant to the terms of the contract. The Company uses the "deferral method" of accounting for its Embraer Brasilia EMB-120 turboprop aircraft ("Brasilia turboprop") engine overhauls wherein the overhaul costs are capitalized and depreciated to the next estimated overhaul event. The costs of maintenance for airframe and avionics components, landing gear and normal recurring maintenance are expensed as incurred. For leased aircraft, the Company is subject to lease return provisions that require a minimum portion of the "life" of an overhaul be remaining on the engine at the lease return date. For Brasilia turboprop engine overhauls related to leased aircraft to be returned, the Company adjusts the estimated useful lives of the final engine overhauls based on the shorter of the remaining useful life or the respective lease return dates. | |||||||||||||||||||||||
Passenger and Ground Handling Revenues | |||||||||||||||||||||||
The Company recognizes passenger and ground handling revenues when the service is provided. Under the Company's contract and pro-rate flying agreements with Delta, United, US Airways, American and Alaska, revenue is considered earned when the flight is completed. Revenue is recognized under the Company's pro-rate flying agreements based upon the portion of the pro-rate passenger fare the Company anticipates that it will receive. Other ancillary revenues commonly associated with airlines such as baggage fee revenue, ticket change fee revenue and the marketing component of the sale of mileage credits are retained by the Company's major airline partners on flights that the Company operates under its code-share agreements. | |||||||||||||||||||||||
In the event that the contractual rates under the agreements have not been finalized at quarterly or annual financial statement dates, the Company records revenues based on the lower of prior period's approved rates, as adjusted to reflect any contract negotiations and the Company's estimate of rates that will be implemented in accordance with revenue recognition guidelines. | |||||||||||||||||||||||
In the event the Company has a reimbursement dispute with a major partner, the Company evaluates the dispute under its established revenue recognition criteria and, provided the revenue recognition criteria have been met, the Company recognizes revenue based on management's estimate of the resolution of the dispute. | |||||||||||||||||||||||
In several of the Company's agreements, the Company is eligible for incentive compensation upon the achievement of certain performance criteria. The incentives are defined in the agreements and are being measured and determined on a monthly, quarterly or semi-annual basis. At the end of period, the Company calculates the incentives achieved during that period and recognizes revenue accordingly. | |||||||||||||||||||||||
The following summarizes the significant provision of each code share agreement the Company has with each major partner: | |||||||||||||||||||||||
Delta Connection Agreements | |||||||||||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | ||||||||||||||||||
aircraft under | Dates | or costs paid directly | Incentive | ||||||||||||||||||||
contract | by major partner | Structure | |||||||||||||||||||||
SkyWest Airlines Delta Connection Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ 200 - 41 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | No financial performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ700 - 19 | The final aircraft expires in 2022 | Engine Maintenance | |||||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ 900 - 32 | The average remaining term of the aircraft under contract is 5.8 years | Landing fees, Station Rents, Deice | |||||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Insurance | ||||||||||||||||||||||
ExpressJet Delta Connection Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ 200 - 76 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based financial incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ700 - 41 | The final aircraft expires in 2022 | Engine Maintenance | |||||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ 900 - 28 | The average remaining term of the aircraft under contract is 4.4 years | Landing fees, Station Rents, Deice Insurance | |||||||||||||||||||||
• | |||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | |||||||||||||||||||||||
SkyWest Airlines Prorate Agreement | • | • | • | • | • | ||||||||||||||||||
EMB 120 - 9 | Terminate with 120 days notice | None | None | Pro-rata sharing of the passenger fare revenue | |||||||||||||||||||
• | |||||||||||||||||||||||
CRJ200 - 8 | |||||||||||||||||||||||
SkyWest Airlines and ExpressJet are each parties to a Delta Connection Agreement with Delta, pursuant to which SkyWest Airlines and ExpressJet provide contract flight services for Delta. The SkyWest Airlines and ExpressJet Delta Connection Agreements contain multi-year rate reset provisions beginning in 2010 and continuing each 5th year thereafter. The Delta Connection Agreements also provide that, beginning with the fifth anniversary of the execution of the agreements (September 8, 2010), Delta has the right to require that certain contractual rates under those agreements shall not exceed the second lowest of all carriers within the Delta Connection program. During the fourth quarter of 2010, SkyWest Airlines and ExpressJet reached an agreement with Delta on contractual rates satisfying the 2010 rate reset provision and the second-lowest rate provision and agreed to rates through December 31, 2015. Delta additionally waived its right to require that the contractual rates payable under the Delta Connection Agreements shall not exceed the second-lowest rates of all carriers within the Delta Connection program through December 31, 2015. | |||||||||||||||||||||||
United Express Agreements | |||||||||||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | ||||||||||||||||||
aircraft under | Dates | or costs paid | Incentive Structure | ||||||||||||||||||||
contract | directly by major | ||||||||||||||||||||||
partner | |||||||||||||||||||||||
SkyWest Airlines United Express Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ 200 - 61 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ700 - 70 | The final aircraft expires in 2024 | Landing fees, Station Rents, Deice | |||||||||||||||||||||
• | • | • | |||||||||||||||||||||
EMB 120 - 9 | The average remaining term of the aircraft under contract is 3.8 years | Insurance | |||||||||||||||||||||
• | |||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | |||||||||||||||||||||||
Atlantic Southeast United Express Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ 200 - 14 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
ExpressJet Delaware United Express Agreement | • | • | • | • | • | ||||||||||||||||||
EMB 145 - 22 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
ExpressJet Delaware United Express Agreement | • | • | • | • | • | ||||||||||||||||||
EMB 135 - 9 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based incentives or penalties | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | • | |||||||||||||||||||||
EMB 145 - 220 | The final aircraft expires in 2020 | Engine Maintenance | |||||||||||||||||||||
• | • | ||||||||||||||||||||||
The average remaining term of the aircraft under contract is 4.3 years | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Insurance | ||||||||||||||||||||||
SkyWest Airlines United Express Prorate Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ200 - 17 | Terminate with 120 days notice | None | None | Pro-rata sharing of the passenger fare revenue | |||||||||||||||||||
• | |||||||||||||||||||||||
EMB 120 - 27 | |||||||||||||||||||||||
Alaska Capacity Purchase Agreement | |||||||||||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||||||||||||||
aircraft under | Dates | or costs paid | |||||||||||||||||||||
contract | directly by major | ||||||||||||||||||||||
partner | |||||||||||||||||||||||
SkyWest Airlines Capacity Purchase Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ 700 - 7 | Terminates 2018 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
US Airways Express Agreement | |||||||||||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||||||||||||||
aircraft under | Dates | or costs paid | |||||||||||||||||||||
contract | directly by major | ||||||||||||||||||||||
partner | |||||||||||||||||||||||
SkyWest Airlines US Airways Express Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ200 - 10 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ900 - 4 | Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | |||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
SkyWest Airlines US Airways Express Prorate Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ200 - 1 | Terminate with 120 days notice | None | None | Pro-rata sharing of the passenger fare revenue | |||||||||||||||||||
American Agreement | |||||||||||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||||||||||||||
aircraft under | Dates | or costs paid | |||||||||||||||||||||
contract | directly by major | ||||||||||||||||||||||
partner | |||||||||||||||||||||||
SkyWest Airlines American Capacity Purchase Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ200 - 12 | Terminate 2016 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
ExpressJet American Capacity Purchase Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ200 - 11 | Terminates 2017 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
Other Revenue Items | |||||||||||||||||||||||
The Company's passenger and ground handling revenues could be impacted by a number of factors, including changes to the Company's code-share agreements with Delta, United, Alaska, American or US Airways, contract modifications resulting from contract re-negotiations, the Company's ability to earn incentive payments contemplated under the Company's code-share agreements and settlement of reimbursement disputes with the Company's major partners. | |||||||||||||||||||||||
Under the Company's code-share agreements with Delta, United, Alaska, US Airways and American, the compensation structure generally consists of a combination of agreed-upon rates for operating flights and direct reimbursement for other certain costs associated with operating the aircraft. A portion of the Company's contract flying compensation is designed to reimburse the Company for certain aircraft ownership costs. The Company has concluded that a component of its revenue under these agreements is rental income, inasmuch as the agreements identify the "right of use" of a specific type and number of aircraft over a stated period of time. The amounts deemed to be rental income under the agreements for the years ended December 31, 2013, 2012 and 2011 were $500.2 million, $506.7 million and $521.3 million, respectively. These amounts were recorded as passenger revenue on the Company's consolidated statements of operations. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of comprehensive income (loss) since the use of the aircraft is not a separate activity of the total service provided and there is not a separate profitability measurement for the deemed rental activity of the aircraft. | |||||||||||||||||||||||
Deferred Aircraft Credits | |||||||||||||||||||||||
The Company accounts for incentives provided by aircraft manufacturers as deferred credits. The deferred credits related to leased aircraft are amortized on a straight-line basis as a reduction to rent expense over the lease term. Credits related to owned aircraft reduce the purchase price of the aircraft, which has the effect of amortizing the credits on a straight-line basis as a reduction in depreciation expense over the life of the related aircraft. The incentives are credits that may be used to purchase spare parts and pay for training and other expenses. | |||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||
The Company recognizes a liability or asset for the deferred tax consequences of all temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the assets and liabilities are recovered or settled. | |||||||||||||||||||||||
Net Income (Loss) Per Common Share | |||||||||||||||||||||||
Basic net income (loss) per common share ("Basic EPS") excludes dilution and is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share ("Diluted EPS") reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income (loss) per common share. During the years ended December 31, 2013, 2012 and 2011, 3,072,000, 3,889,000 and 4,323,000 shares reserved for issuance upon the exercise of outstanding options were excluded from the computation of Diluted EPS respectively, as their inclusion would be anti-dilutive. | |||||||||||||||||||||||
The calculation of the weighted average number of common shares outstanding for Basic EPS and Diluted EPS are as follows for the years ended December 31, 2013, 2012and 2011 (in thousands): | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net Income (Loss) | $ | 58,956 | $ | 51,157 | $ | (27,335 | ) | ||||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic earnings per-share weighted average shares | 51,688 | 51,090 | 52,201 | ||||||||||||||||||||
Dilution due to stock options and restricted stock | 734 | 656 | — | ||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Denominator for diluted earnings per-share weighted average shares | 52,422 | 51,746 | 52,201 | ||||||||||||||||||||
Basic earnings (loss) per-share | $ | 1.14 | $ | 1 | $ | (0.52 | ) | ||||||||||||||||
Diluted earnings (loss) per-share | $ | 1.12 | $ | 0.99 | $ | (0.52 | ) | ||||||||||||||||
Comprehensive Income (Loss) | |||||||||||||||||||||||
Comprehensive income (loss) includes charges and credits to stockholders' equity that are not the result of transactions with the Company's shareholders. Also, comprehensive income (loss) consisted of net income (loss) plus changes in unrealized appreciation (depreciation) on marketable securities and unrealized gain (loss) on foreign currency translation adjustment related to the Company's equity investment in Trip Linhas Aereas, a regional airline operating in Brazil ("Trip") and Mekong Aviation Joint Stock Company, an airline operating in Vietnam ("Air Mekong") (see note 8), net of tax, for the periods indicated (in thousands): | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Net Income (Loss) | $ | 58,956 | 51,157 | $ | (27,335 | ) | |||||||||||||||||
Proportionate share of other companies foreign currency translation adjustment, net of tax | 66 | (251 | ) | (295 | ) | ||||||||||||||||||
Unrealized appreciation (depreciation) on marketable securities, net of tax | (13 | ) | 316 | 534 | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Comprehensive income (loss) | $ | 59,009 | $ | 51,222 | $ | (27,096 | ) | ||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||
The carrying amounts reported in the consolidated balance sheets for receivables and accounts payable approximate fair values because of the immediate or short-term maturity of these financial instruments. Marketable securities are reported at fair value based on market quoted prices in the consolidated balance sheets. If quoted prices in active markets are no longer available and the Company has estimated the fair values of these securities utilizing a discounted cash flow analysis as of December 31, 2013. These analyses consider, among other items, the collateralization underlying the security investments, the creditworthiness of the counterparty, the timing of expected future cash flows, and the expectation of the next time the security is expected to have a successful auction. The fair value of the Company's long-term debt is estimated based on current rates offered to the Company for similar debt and was approximately $1,509.2 million as of December 31, 2013, as compared to the carrying amount of $1,470.6 million as of December 31, 2013. The Company's fair value of long-term debt as of December 31, 2012 was $1,744.2 million as compared to the carrying amount of $1,642.0 million as of December 31, 2012. | |||||||||||||||||||||||
Segment Reporting | |||||||||||||||||||||||
Generally accepted accounting principles require disclosures related to components of a company for which separate financial information is available to, and regularly evaluated by, the Company's chief operating decision maker when deciding how to allocate resources and in assessing performance. The Company's two operating segments consist of the operations conducted by its two subsidiaries, SkyWest Airlines and ExpressJet. Information pertaining to the Company's reportable segments is presented in Note 2, Segment Reporting. | |||||||||||||||||||||||
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Reporting | ' | |||||||||||||
Segment Reporting | ' | |||||||||||||
(2) Segment Reporting | ||||||||||||||
Generally accepted accounting principles require disclosures related to components of a company for which separate financial information is available to, and regularly evaluated by, the Company's chief operating decision maker ("CODM") when deciding how to allocate resources and in assessing performance. | ||||||||||||||
The Company's two operating segments consist of the operations conducted by its two subsidiaries, SkyWest Airlines and ExpressJet. On December 31, 2011, ExpressJet Delaware and Atlantic Southeast merged through the ExpressJet Combination. As a result of the ExpressJet Combination, ExpressJet became a reportable segment. Prior year amounts have been revised to conform to the current year segment presentation. The results of operation of ExpressJet Delaware and Atlantic Southeast for periods prior to the ExpressJet Combination are combined under the ExpressJet segment. Corporate overhead expense incurred by the Company is allocated to the operating expenses of its two operating subsidiaries. | ||||||||||||||
The following represents the Company's segment data for the years ended December 31, 2013, 2012 and 2011 (in thousands). | ||||||||||||||
Year ended December 31, 2013 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | 1,827,568 | 1,466,341 | 3,816 | 3,297,725 | ||||||||||
Operating expense | 1,644,129 | 1,494,302 | 6,183 | 3,144,614 | ||||||||||
Depreciation and amortization expense | 155,667 | 89,338 | — | 245,005 | ||||||||||
Interest expense | 43,920 | 21,034 | 3,704 | 68,658 | ||||||||||
Segment profit (loss)(1) | 139,519 | (48,995 | ) | (6,071 | ) | 84,453 | ||||||||
Identifiable intangible assets, other than goodwill | — | 14,998 | — | 14,998 | ||||||||||
Total assets | 2,532,431 | 1,700,788 | — | 4,233,219 | ||||||||||
Capital expenditures (including non-cash) | 103,387 | 38,657 | — | 142,044 | ||||||||||
Year ended December 31, 2012 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | 1,930,149 | 1,593,527 | 10,696 | 3,534,372 | ||||||||||
Operating expense | 1,774,876 | 1,588,400 | 5,109 | 3,368,385 | ||||||||||
Depreciation and amortization expense | 153,915 | 98,043 | — | 251,958 | ||||||||||
Interest expense | 49,208 | 23,582 | 4,590 | 77,380 | ||||||||||
Segment profit(1) | 106,065 | (18,455 | ) | 997 | 88,607 | |||||||||
Identifiable intangible assets, other than goodwill | — | 17,248 | — | 17,248 | ||||||||||
Total assets | 2,633,369 | 1,621,268 | — | 4,254,637 | ||||||||||
Capital expenditures (including non-cash) | 74,636 | 20,204 | — | 94,840 | ||||||||||
Year ended December 31, 2011 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | 2,002,830 | 1,640,837 | 11,256 | 3,654,923 | ||||||||||
Operating expense | 1,893,909 | 1,714,481 | 5,428 | 3,613,818 | ||||||||||
Depreciation and amortization expense | 147,520 | 106,662 | — | 254,182 | ||||||||||
Interest expense | 50,907 | 25,142 | 4,334 | 80,383 | ||||||||||
Segment profit(1) | 58,014 | (98,786 | ) | 1,494 | (39,278 | ) | ||||||||
Identifiable intangible assets, other than goodwill | — | 19,497 | — | 19,497 | ||||||||||
Total assets | 2,595,901 | 1,686,007 | — | 4,281,908 | ||||||||||
Capital expenditures (including non-cash) | 166,998 | 32,758 | — | 199,756 | ||||||||||
-1 | ||||||||||||||
Segment profit is operating income less interest expense | ||||||||||||||
Longterm_Debt
Long-term Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Long-term Debt | ' | |||||||
Long-term Debt | ' | |||||||
(3) Long-term Debt | ||||||||
Long-term debt consisted of the following as of December 31, 2013 and 2012 (in thousands): | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Notes payable to banks, due in semi-annual installments, variable interest based on LIBOR, or with interest rates ranging from 1.34% to 2.55% through 2014 to 2020, secured by aircraft | $ | 224,915 | $ | 273,515 | ||||
Notes payable to a financing company, due in semi-annual installments, variable interest based on LIBOR, or with interest rates ranging from 0.70% to 2.36% through 2014 to 2021, secured by aircraft | 392,660 | 434,716 | ||||||
Notes payable to banks, due in semi-annual installments plus interest at 6.06% to 7.18% through 2021, secured by aircraft | 149,477 | 168,937 | ||||||
Notes payable to a financing company, due in semi-annual installments plus interest at 5.78% to 6.23% through 2019, secured by aircraft | 32,528 | 39,548 | ||||||
Notes payable to banks, due in monthly installments plus interest of 3.15% to 8.18% through 2025, secured by aircraft | 623,315 | 665,867 | ||||||
Notes payable to banks, due in semi-annual installments, plus interest at 6.05% through 2020, secured by aircraft | 15,740 | 17,872 | ||||||
Notes payable to a bank, due in monthly installments interest based on LIBOR plus interest at 2.00% to 4.00% through 2016, secured by aircraft | 31,933 | 41,567 | ||||||
| | | | | | | | |
Long-term debt | 1,470,568 | 1,642,022 | ||||||
| | | | | | | | |
Less current maturities | (177,389 | ) | (171,454 | ) | ||||
| | | | | | | | |
Long-term debt, net of current maturities | 1,293,179 | 1,470,568 | ||||||
| | | | | | | | |
| | | | | | | | |
As of December 31, 2013, the Company had $1.5 billion of long-term debt obligations related to the acquisition of CRJ200, CRJ700 and CRJ900 aircraft. The average effective interest rate on the debt related to the CRJ aircraft was approximately 4.5% at December 31, 2013. | ||||||||
The aggregate amounts of principal maturities of long-term debt as of December 31, 2013 were as follows (in thousands): | ||||||||
2014 | 177,389 | |||||||
2015 | 184,510 | |||||||
2016 | 188,240 | |||||||
2017 | 161,735 | |||||||
2018 | 139,020 | |||||||
Thereafter | 619,674 | |||||||
| | | | | ||||
1,470,568 | ||||||||
| | | | | ||||
| | | | | ||||
As of December 31, 2013 and 2012, SkyWest Airlines had a $25 million line of credit. As of December 31, 2013 and 2012, SkyWest Airlines had no amount outstanding under the facility. The facility expires on March 31, 2014 and has a variable interest rate of Libor plus 3.0%. | ||||||||
As of December 31, 2013, the Company had $88.5 million in letters of credit and surety bonds outstanding with various banks and surety institutions. | ||||||||
As of December 31, 2013, the Company was in compliance with all debt covenants to which it was subject. | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
(4) Income Taxes | |||||||||||
The provision for income taxes includes the following components (in thousands): | |||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current tax provision (benefit): | |||||||||||
Federal | $ | 1,767 | $ | — | $ | — | |||||
State | 343 | 441 | 396 | ||||||||
| | | | | | | | | | | |
2,110 | 441 | 396 | |||||||||
| | | | | | | | | | | |
Deferred tax provision (benefit): | |||||||||||
Federal | 34,728 | 31,791 | (21,533 | ) | |||||||
State | 2,738 | 2,507 | (1,698 | ) | |||||||
| | | | | | | | | | | |
37,466 | 34,298 | (23,231 | ) | ||||||||
| | | | | | | | | | | |
Provision (benefit) for income taxes | 39,576 | 34,739 | (22,835 | ) | |||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The following is a reconciliation between the statutory Federal income tax rate of 35% and the effective rate which is derived by dividing the provision (benefit) for income taxes by income (loss) before for income taxes adjusted for permanent differences (in thousands): | |||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Computed "expected" provision (benefit) for income taxes at the statutory rates adjusted for permanent differences | $ | 37,743 | $ | 32,983 | $ | (14,683 | ) | ||||
Increase (decrease) in income taxes resulting from: | |||||||||||
Purchase accounting (gain) adjustment | — | — | 1,999 | ||||||||
State income tax provision (benefit), net of Federal income tax benefit | 2,867 | 2,220 | (1,810 | ) | |||||||
Valuation allowance changes affecting the provision for income taxes | 1,430 | 1,614 | — | ||||||||
Other, net | (2,464 | ) | (2,078 | ) | (8,341 | ) | |||||
| | | | | | | | | | | |
Provision (benefit) for income taxes | 39,576 | 34,739 | (22,835 | ) | |||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
For the years ended December 31, 2013 and 2012, the Company recorded a $1.4 million and $1.6 million valuation allowance against certain deferred tax assets associated with capital losses with a limited carryforward period, respectively. The Company anticipates the carryforward period will lapse prior to utilization of the deferred tax assets. | |||||||||||
The significant components of the net deferred tax assets and liabilities are as follows (in thousands): | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Intangible Asset | $ | 36,164 | $ | 37,031 | |||||||
Accrued benefits | 40,850 | 40,469 | |||||||||
Net operating loss carryforward | 85,885 | 118,448 | |||||||||
AMT credit carryforward | 17,649 | 15,882 | |||||||||
Deferred aircraft credits | 44,350 | 48,124 | |||||||||
Accrued reserves and other | 30,987 | 31,846 | |||||||||
| | | | | | | | ||||
Total deferred tax assets | 255,885 | 291,800 | |||||||||
| | | | | | | | ||||
Valuation allowance | (3,044 | ) | (1,614 | ) | |||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Accelerated depreciation | (824,149 | ) | (823,487 | ) | |||||||
| | | | | | | | ||||
Total deferred tax liabilities | (824,149 | ) | (823,487 | ) | |||||||
| | | | | | | | ||||
Net deferred tax liability | (571,308 | ) | (533,301 | ) | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
The Company's deferred tax liabilities were primarily generated through an accelerated bonus depreciation on newly purchased aircraft and support equipment in accordance with IRS Section 168(k) in combination with shorter depreciable tax lives. | |||||||||||
The Company's valuation allowance is related to certain deferred tax assets with a limited carry-forward period. The Company does not anticipate utilizing these deferred tax assets prior to the lapse of the carry-forward period. | |||||||||||
At December 31, 2013, the Company had federal net operating losses of approximately $191.5 million and state net operating losses of approximately $651.2 million, which will start to expire in 2026 and 2014, respectively. As of December 31, 2013, the Company also had an alternative minimum tax credit of approximately $17.6 million which does not expire. | |||||||||||
In conjunction with the ExpressJet Merger, the Company acquired non-amortizable intangible tax assets and other tax assets that are not anticipated to provide a tax benefit until 2027 or later due to statutory limitations. Because of the uncertainty associated with the realization of those tax assets, the Company had a full valuation allowance of approximately $69.8 million on such tax assets as of December 31, 2013 and $73.0 million as of December 31, 2012. The Company also has a valuation allowance against deferred tax assets of approximately $1 million for net operating losses in states with short carry-forward periods. The deferred tax assets in the table above are shown net of these valuation allowances. | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies | ' | |||||||
Commitments and Contingencies | ' | |||||||
(5) Commitments and Contingencies | ||||||||
Lease Obligations | ||||||||
The Company leases 570 aircraft, as well as airport facilities, office space, and various other property and equipment under non-cancelable operating leases which are generally on a long-term net rent basis where the Company pays taxes, maintenance, insurance and certain other operating expenses applicable to the leased property. The following table summarizes future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2013 (in thousands): | ||||||||
Year ending December 31, | ||||||||
2014 | 380,413 | |||||||
2015 | 331,151 | |||||||
2016 | 258,464 | |||||||
2017 | 194,258 | |||||||
2018 | 153,294 | |||||||
Thereafter | 571,783 | |||||||
| | | | | ||||
1,889,363 | ||||||||
| | | | | ||||
| | | | | ||||
The majority of the Company's leased aircraft are owned and leased through trusts whose sole purpose is to purchase, finance and lease these aircraft to the Company; therefore, they meet the criteria of a variable interest entity. However, since these are single owner trusts in which the Company does not participate, the Company is not considered at risk for losses and is not considered the primary beneficiary. As a result, based on the current rules, the Company is not required to consolidate any of these trusts or any other entities in applying the accounting guidance. The Company's management believes that the Company's maximum exposure under these leases is the remaining lease payments. | ||||||||
Total rental expense for non-cancelable aircraft operating leases was approximately $325.4 million, $333.6 million and $346.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. The minimum rental expense for airport station rents was approximately $35.1 million, $43.5 million and $42.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||
The Company's leveraged lease agreements typically obligate the Company to indemnify the equity/owner participant against liabilities that may arise due to changes in benefits from tax ownership of the respective leased aircraft. The terms of these contracts range up to 12 years. The Company did not accrue any liability relating to the indemnification to the equity/owner participant because of management's assessment that the probability of this occurring is remote. | ||||||||
Self-insurance | ||||||||
The Company self-insures a portion of its potential losses from claims related to workers' compensation, environmental issues, property damage, medical insurance for employees and general liability. Losses are accrued based on an estimate of the ultimate aggregate liability for claims incurred, using standard industry practices and the Company's actual experience. Actual results could differ from these estimates. | ||||||||
Legal Matters | ||||||||
The Company is subject to certain legal actions which it considers routine to its business activities. As of December 31, 2013, management believed, after consultation with legal counsel, that the ultimate outcome of such legal matters was not likely to have a material adverse effect on the Company's financial position, liquidity or results of operations. However, the following is a significant outstanding legal matter. | ||||||||
SkyWest Airlines and ExpressJet v. Delta | ||||||||
During the quarter ended December 31, 2007, Delta notified the Company, SkyWest Airlines and Atlantic Southeast, of a dispute under the Delta Connection Agreements executed by Delta with SkyWest Airlines and Atlantic Southeast. The dispute relates to the allocation of liability for certain irregular operation ("IROP") expenses paid by SkyWest Airlines and Atlantic Southeast to their passengers and vendors under certain situations. During the period between the execution of the Delta Connection Agreements in September 2005 and December 2007, SkyWest Airlines and Atlantic Southeast passed through to Delta IROP expenses that were paid pursuant to Delta's policies, and Delta accepted and reimbursed those expenses. Delta now claims it is obligated to reimburse only a fraction of those IROP expenses. As a result, Delta withheld a combined total of approximately $25 million (pre-tax) from one of the weekly scheduled wire payments to SkyWest Airlines and Atlantic Southeast during December 2007. Since December 2007, Delta has continued to withhold payments from the weekly scheduled wire payments to SkyWest Airlines and Atlantic Southeast (now ExpressJet), and has disputed subsequent billings for IROP expenses. On February 1, 2008, SkyWest Airlines and Atlantic Southeast filed a Complaint in the Superior Court for Fulton County, Georgia ("Superior Court") challenging Delta's treatment of the matter and seeking recovery of the payments withheld by Delta and any future withholdings related to this issue. Delta filed an Answer to the SkyWest Airlines and Atlantic Southeast Complaint and a Counterclaim against SkyWest Airlines and Atlantic Southeast on March 24, 2008. Delta's Counterclaim alleged that SkyWest Airlines and Atlantic Southeast breached the Delta Connection Agreements by invoicing Delta for IROP expenses that were paid pursuant to Delta's policies, and claims only a portion of those expenses may be invoiced to Delta. Since July 1, 2008, the Company has not recognized revenue related to IROP expense reimbursements withheld by Delta because collection of those reimbursements is the subject of litigation and is not reasonably assured. As of December 31, 2013, the Company had recognized a cumulative total of $31.7 million of revenue associated with the funds withheld by Delta prior to July 1, 2008. | ||||||||
During 2010, the Company and Delta began preliminary settlement discussions related to the IROP dispute. Notwithstanding the legal merits of the case, the Company offered to settle the claim for approximately $5.9 million less than the cumulative total of revenue recognized related to this matter. Those settlement discussions were not successful; however, as a result of the settlement offer, the Company wrote off $5.9 million of related receivables as of December 31, 2013. | ||||||||
After proceedings that included contested motions, document discovery, and depositions, Delta voluntarily dismissed its Counterclaim. Discovery in that action was not complete at the time of dismissal. On February 14, 2011, SkyWest Airlines and Atlantic Southeast voluntarily dismissed their claims in the Superior Court, and filed a new complaint (the "State Court Complaint") in the Georgia State Court of Fulton County (the "State Court"). The claims continue to include breach of contract, breach of contract based on mutual departure, breach of contract based on voluntary payment, and breach of the duty of good faith and fair dealing. Delta moved for partial dismissal of the State Court Complaint, which motion was denied in its entirety. | ||||||||
Discovery in the State Court lawsuit has concluded. On July 19, 2013, the parties filed cross motions for partial summary judgment. SkyWest Airlines and ExpressJet filed a motion for partial summary judgment on their claim for voluntary payment. Delta filed a motion for partial summary judgment on all of SkyWest's and ExpressJet's claims, for partial summary judgment on the issue of damages, and for spoliation sanctions. Briefing of the cross motions is complete, but no hearing has been scheduled by the Court. SkyWest and ExpressJet intend to oppose Delta's motions and continue to vigorously pursue their claims set forth in the State Court Complaint. | ||||||||
As of December 31, 2013, the Company's estimated range of reasonably possible loss related to the dispute was $0 to $25.8 million. | ||||||||
Concentration Risk and Significant Customers | ||||||||
The Company requires no collateral from its major partners or customers but monitors the financial condition of its major partners. The Company maintains an allowance for doubtful accounts receivable based upon expected collectability of all accounts receivable. The Company's allowance for doubtful accounts totaled $94,000 and $94,000 as of December 31, 2013 and 2012, respectively. For the years ended December 31, 2013, 2012 and 2011, the Company's contractual relationships with Delta and United combined accounted for approximately 91.6%, 94.8% and 97.6%, respectively of the Company's total revenues. | ||||||||
Employees Under Collective Bargaining Agreements | ||||||||
As of December 31, 2013, the Company had 18,358 full-time equivalent employees. Approximately 49% of these employees were represented by unions, including the following employee groups. Notwithstanding the completion of the ExpressJet Combination, ExpressJet's employee groups continue to be represented by those unions who provided representation prior to the ExpressJet Combination. | ||||||||
Accordingly, the following table refers to ExpressJet's employee groups based upon their union affiliations prior to the ExpressJet Combination. | ||||||||
Employee Group | Approximate | Representatives | Status of | |||||
Number of | Agreement | |||||||
Active Employees | ||||||||
Represented | ||||||||
Atlantic Southeast Pilots | 1,800 | Air Line Pilots Association International | Amendable | |||||
Atlantic Southeast Flight Attendants | 1,075 | International Association of Machinists and Aerospace Workers | Amendable | |||||
Atlantic Southeast Flight Controllers | 60 | Transport Workers Union of America | Amendable | |||||
Atlantic Southeast Mechanics | 700 | International Brotherhood of Teamsters | Amendable | |||||
Atlantic Southeast Stock Clerks | 70 | International Brotherhood of Teamsters | Amendable | |||||
ExpressJet Delaware Pilots | 2,900 | Air Line Pilots Association International | Amendable | |||||
ExpressJet Delaware Flight Attendants | 1,200 | International Association of Machinists and Aerospace Workers | Amendable | |||||
ExpressJet Delaware Mechanics | 1,000 | International Brotherhood of Teamsters | Amendable | |||||
ExpressJet Delaware Dispatchers | 85 | Transport Workers Union of America | Amendable | |||||
ExpressJet Delaware Stock Clerks | 100 | International Brotherhood of Teamsters | Amendable | |||||
During December 2013, the Airline Pilots Association International ("ALPA"), which represents the Atlantic Southeast pilot and ExpressJet Delaware pilot groups, conducted a vote of the two employee groups, seeking approval of a joint collective bargaining agreement that ExpressJet had negotiated with ALPA representatives. The two employee groups rejected the joint collective bargaining agreement, which resulted in the agreements with those employee groups remaining amendable as indicated in the foregoing table. The decision of those employee groups to reject the joint collective bargaining agreement will preclude us from realizing some of the savings we had hoped to achieve through the ExpressJet Combination. ExpressJet intends to resume negotiations with ALPA in an effort to negotiate an acceptable agreement. | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
(6) Fair Value Measurements | ||||||||||||||
The Company holds certain assets that are required to be measured at fair value in accordance with United States GAAP. The Company determined fair value of these assets based on the following three levels of inputs: | ||||||||||||||
Level 1—Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||
Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Some of the Company's marketable securities primarily utilize broker quotes in a non-active market for valuation of these securities. | ||||||||||||||
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, therefore requiring an entity to develop its own assumptions. | ||||||||||||||
As of December 31, 2013, the Company held certain assets that are required to be measured at fair value on a recurring basis. Assets measured at fair value on a recurring basis are summarized below (in thousands): | ||||||||||||||
Fair Value Measurements as of December 31, | ||||||||||||||
2013 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Marketable Securities | ||||||||||||||
Bonds | $ | 487,049 | $ | — | $ | 487,049 | $ | — | ||||||
Asset backed securities | 190 | — | 190 | — | ||||||||||
| | | | | | | | | | | | | | |
487,239 | — | 487,239 | — | |||||||||||
Cash, Cash Equivalents and Restricted Cash | $ | 182,855 | 182,855 | — | — | |||||||||
Other Assets(a) | 2,245 | — | — | 2,245 | ||||||||||
| | | | | | | | | | | | | | |
Total Assets Measured at Fair Value | $ | 672,339 | $ | 182,855 | $ | 487,239 | $ | 2,245 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Fair Value Measurements as of December 31, | ||||||||||||||
2012 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Marketable Securities | ||||||||||||||
Bonds | $ | 552,289 | $ | — | $ | 552,289 | $ | — | ||||||
Commercial paper | 3,514 | — | 3,514 | — | ||||||||||
Asset backed securities | 314 | — | 314 | — | ||||||||||
| | | | | | | | | | | | | | |
556,117 | — | 556,117 | — | |||||||||||
Cash, Cash Equivalents and Restricted Cash | 153,325 | 153,325 | — | — | ||||||||||
Other Assets(a) | 3,844 | — | — | 3,844 | ||||||||||
| | | | | | | | | | | | | | |
Total Assets Measured at Fair Value | $ | 713,286 | $ | 153,325 | $ | 556,117 | $ | 3,844 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
(a) | ||||||||||||||
Auction rate securities included in "Other assets" in the Consolidated Balance Sheet | ||||||||||||||
Based on market conditions, the Company uses a discounted cash flow valuation methodology for auction rate securities. Accordingly, for purposes of the foregoing consolidated financial statements, these securities were categorized as Level 3 securities. The Company's "Marketable Securities" classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. | ||||||||||||||
No significant transfers between Level 1, Level 2 and Level 3 occurred during the year ended December 31, 2013. The Company's policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period. | ||||||||||||||
The following table presents the Company's assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at December 31, 2013 (in thousands): | ||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||
(Level 3) | ||||||||||||||
Auction Rate | ||||||||||||||
Securities | ||||||||||||||
Balance at January 1, 2013 | $ | 3,844 | ||||||||||||
Total realized and unrealized gains or (losses) | ||||||||||||||
Included in earnings | — | |||||||||||||
Included in other comprehensive income | (71 | ) | ||||||||||||
Transferred out | — | |||||||||||||
Settlements | (1,528 | ) | ||||||||||||
| | | | | ||||||||||
Balance at December 31, 2013 | $ | 2,245 | ||||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
Investment_in_Other_Companies
Investment in Other Companies | 12 Months Ended |
Dec. 31, 2013 | |
Investment in Other Companies | ' |
Investment in Other Companies | ' |
(7) Investment in Other Companies | |
In September 2008, the Company entered into an agreement to acquire a 20% interest in Trip Linhas Aereas, a regional airline operating in Brazil ("TRIP"). As of December 31, 2013, the Company's investment balance in TRIP was $19.1 million. In connection with the investment in TRIP, the Company entered into a put option agreement with the majority shareholder of TRIP that allowed the Company to put its investment to TRIP's majority shareholder at an established price based on a 5% annual rate of return over the investment period. | |
On July 12, 2012, the Company sold its interest in TRIP for a price of $42 million. The purchase price is scheduled to be paid in three installments over a two-year period and may be accelerated upon the occurrence of certain conditions identified in the purchase agreement. As part of the sale transaction, the Company also received an option to acquire 15.38% of the ownership in Trip Investimentos Ltda., the purchaser of the Company's TRIP shares ("Trip Investimentos"). The option has an initial exercise price per share equal to the price paid by Trip Investimentos to acquire the TRIP shares from the Company. The exercise price escalates annually at a specified rate and the Company can exercise the option, at its discretion, between the second and fourth anniversaries of the Company's receipt of the final required installment payments from Trip Investimentos. Under the terms of the agreement, Trip Investmentos is prohibited from transferring the TRIP shares until all three installment payments have been made. The restriction on Trip Investimentos' ability to transfer the TRIP shares prevents the transaction from being recognized as a sale for financial reporting purposes. As a result, the Company intends to account for the transaction as a sale once all three installment payments have been made. The Company has no continuing involvement with the TRIP shares. As of December 31, 2013, the Company had received the first two installment payments totaling $26.2 million. These payments were recorded as an "Other Long-Term Liability" on the Company's consolidated balance sheet. The third installment payment is due July 12, 2014 for an amount of $16.8 million. The last installment payment and the option to purchase 15.38% of Trip Investimentos represent variable interests in TRIP Investimentos, which is a variable interest entity. The Company has no equity interest and no control over Trip Investimentos, and therefore the Company does not consolidate the financial performance of Trip Investimentos in its financial statements. | |
On September 29, 2010, the Company invested $7 million for a 30% ownership interest in Mekong Aviation Joint Stock Company, an airline operating in Vietnam ("Air Mekong"). During 2011, the Company invested an additional $3 million in Air Mekong. During the year ended December 31, 2013, the Company sold its shares of Air Mekong. In conjunction with the sale of its shares, the Company recognized a gain of $5.0 million, which is reflected in other income in the Consolidated Statements of Comprehensive Income. | |
During the year ended December 31, 2013, the Company terminated its sub-lease with Air Mekong and recognized $5.1 million of other income primarily due to the recognition of contingent rent payments, net of the write-off of certain maintenance deposits. The contingent rent payments were collected and realized related to aircraft maintenance obligations and no are longer payable to Air Mekong as a result of the sub-lease termination. | |
Capital_Transactions
Capital Transactions | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Capital Transactions | ' | |||||||||||||||||||||||||
Capital Transactions | ' | |||||||||||||||||||||||||
(8) Capital Transactions | ||||||||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||||||
The Company is authorized to issue 5,000,000 shares of preferred stock in one or more series without shareholder approval. No shares of preferred stock are presently outstanding. The Company's Board of Directors is authorized, without any further action by the shareholders of the Company, to (i) divide the preferred stock into series; (ii) designate each such series; (iii) fix and determine dividend rights; (iv) determine the price, terms and conditions on which shares of preferred stock may be redeemed; (v) determine the amount payable to holders of preferred stock in the event of voluntary or involuntary liquidation; (vi) determine any sinking fund provisions; and (vii) establish any conversion privileges. | ||||||||||||||||||||||||||
Stock Compensation | ||||||||||||||||||||||||||
On May 4, 2010, the Company's shareholders approved the adoption of the SkyWest Inc. 2010 Long-Term Incentive Plan, which provides for the issuance of up to 5,150,000 shares of common stock to the Company's directors, employees, consultants and advisors (the "2010 Incentive Plan"). The 2010 Incentive Plan provides for awards in the form of options to acquire shares of common stock, stock appreciation rights, restricted stock grants, restricted stock units and performance awards. The 2010 Incentive Plan is administered by the Compensation Committee of the Company's Board of Directors (the "Compensation Committee") who is authorized to designate option grants as either incentive or non-statutory. Incentive stock options are granted at not less than 100% of the market value of the underlying common stock on the date of grant. Non-statutory stock options are granted at a price as determined by the Compensation Committee. | ||||||||||||||||||||||||||
In prior years, the Company adopted three stock option plans: the Executive Stock Incentive Plan (the "Executive Plan"), the 2001 Allshare Stock Option Plan (the "Allshare Plan") and SkyWest Inc. Long-Term Incentive Plan (the "2006 Incentive Plan"). However, as of December 31, 2013, options to purchase an aggregate of 2,613,415 shares of the Company's common stock remained outstanding under the Executive Plan, the Allshare Plan and the 2006 Incentive Plan. There are no additional shares of common stock available for issuance under these plans. | ||||||||||||||||||||||||||
The fair value of stock options awarded under the Company's stock option plans has been estimated as of the grant date using the Black-Scholes option pricing model. The Company uses historical data to estimate option exercises and employee termination in the option pricing model. The expected term of options granted is derived from the output of the option pricing model and represents the period of time that options granted are expected to be outstanding. The expected volatilities are based on the historical volatility of the Company's traded stock and other factors. During the year ended December 31, 2013, the Company granted 173,560 stock options to employees under the 2010 Incentive Plan. The following table shows the assumptions used and weighted average fair value for grants in the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Expected annual dividend rate | 1.21 | % | 1.23 | % | 1.04 | % | ||||||||||||||||||||
Risk-free interest rate | 0.92 | % | 0.81 | % | 2.08 | % | ||||||||||||||||||||
Average expected life (years) | 6 | 5.6 | 5.8 | |||||||||||||||||||||||
Expected volatility of common stock | 0.446 | 0.409 | 0.404 | |||||||||||||||||||||||
Forfeiture rate | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||
Weighted average fair value of option grants | $ | 5.04 | $ | 4.43 | $ | 5.74 | ||||||||||||||||||||
The Company recorded share-based compensation expense only for those options that are expected to vest. The estimated fair value of the stock options is amortized over the vesting period of the respective stock option grants. | ||||||||||||||||||||||||||
During the year ended December 31, 2013, the Company granted 282,651 shares of restricted stock units to the Company's employees under the 2010 Incentive Plan. The restricted stock has a three-year vesting period, during which the recipient must remain employed with the Company or its subsidiaries. The weighted average fair value of the restricted stock on the date of grants made during the year ended December 31, 2013 was $13.24 per share. Additionally, the Company granted 29,453 fully-vested shares of common stock to the Company's directors with a weighted average grant-date fair value of $13.41. The following table summarizes the restricted stock activity as of December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||||
Number of Shares | Weighted-Average | |||||||||||||||||||||||||
Grant-Date Fair | ||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||
Non-vested shares outstanding at December 31, 2010 | 659,263 | 18.97 | ||||||||||||||||||||||||
Granted | 249,502 | 15.51 | ||||||||||||||||||||||||
Vested | (238,848 | ) | 25.8 | |||||||||||||||||||||||
Cancelled | (58,315 | ) | 15.71 | |||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares outstanding at December 31, 2011 | 611,602 | 15.08 | ||||||||||||||||||||||||
Granted | 318,139 | 13.04 | ||||||||||||||||||||||||
Vested | (212,841 | ) | 14.95 | |||||||||||||||||||||||
Cancelled | (18,015 | ) | 14.2 | |||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares outstanding at December 31, 2012 | 698,885 | 14.21 | ||||||||||||||||||||||||
Granted | 312,104 | 13.41 | ||||||||||||||||||||||||
Vested | (231,465 | ) | 14.35 | |||||||||||||||||||||||
Cancelled | (45,933 | ) | 13.69 | |||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares outstanding at December 31, 2013 | 733,591 | 13.79 | ||||||||||||||||||||||||
During the year ended December 31, 2013, 2012 and 2011, the Company recorded equity-based compensation expense of $4.4 million, $4.7 million and $5.4 million, respectively. | ||||||||||||||||||||||||||
As of December 31, 2013, the Company had $4.9 million of total unrecognized compensation cost related to non-vested stock options and non-vested restricted stock grants. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. The Company expects to recognize this cost over a weighted average period of 1.7 years. | ||||||||||||||||||||||||||
Options are exercisable for a period as defined by the Compensation Committee on the date granted; however, no stock option will be exercisable before six months have elapsed from the date it is granted and no incentive stock option shall be exercisable after ten years from the date of grant. The following table summarizes the stock option activity for all of the Company's plans for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | Number of | Weighted | Number of | Weighted | |||||||||||||||||||
Options | Average | Average | Intrinsic | Options | Average | Options | Average | |||||||||||||||||||
Exercise | Remaining | Value | Exercise | Exercise | ||||||||||||||||||||||
Price | Contractual | $0 | Price | Price | ||||||||||||||||||||||
Term | ||||||||||||||||||||||||||
Outstanding at beginning of year | 3,653,859 | $ | 18.44 | 2.3 years | $ | — | 4,176,673 | $ | 19.26 | 4,586,979 | $ | 19.96 | ||||||||||||||
Granted | 173,560 | 13.24 | 200,115 | 13.06 | 327,617 | 15.45 | ||||||||||||||||||||
Exercised | (75,080 | ) | 10.91 | (179,204 | ) | 10.57 | (5,941 | ) | 10.57 | |||||||||||||||||
Cancelled | (344,764 | ) | 20.67 | (543,725 | ) | 25.35 | (731,982 | ) | 24.73 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Outstanding at end of year | 3,407,575 | 17.99 | 1.8 years | — | 3,653,859 | 18.44 | 4,176,673 | 19.26 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Exercisable at December 31, 2013 | 2,818,464 | 18.83 | 1.1 years | — | ||||||||||||||||||||||
Exercisable at December 31, 2012 | 3,031,825 | 19.28 | 1.8 years | — | ||||||||||||||||||||||
The total intrinsic value of options to acquire shares of the Company's common stock that were exercised during the years ended December 31, 2013, 2012 and 2011 was $172,000, $191,000 and $31,000, respectively. | ||||||||||||||||||||||||||
The following table summarizes the status of the Company's non-vested stock options as of December 31, 2013: | ||||||||||||||||||||||||||
Number of | Weighted-Average | |||||||||||||||||||||||||
Shares | Grant-Date | |||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Non-vested shares at beginning of year | 622,034 | $ | 4.99 | |||||||||||||||||||||||
Granted | 173,560 | 5.04 | ||||||||||||||||||||||||
Vested | (206,483 | ) | 4.78 | |||||||||||||||||||||||
Cancelled | — | — | ||||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares at end of year | 589,111 | 5.07 | ||||||||||||||||||||||||
The following table summarizes information about the Company's stock options outstanding at December 31, 2013: | ||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted Average | Weighted Average | Number | Weighted Average | |||||||||||||||||||||
Outstanding | Remaining | Exercise Price | Exercisable | Exercise Price | ||||||||||||||||||||||
Contractual Life | ||||||||||||||||||||||||||
$10 to $16 | 1,240,074 | 3.7 years | $ | 14.51 | 650,963 | $ | 15 | |||||||||||||||||||
$17 to $21 | 1,593,980 | 0.8 years | 17.72 | 1,593,980 | 17.72 | |||||||||||||||||||||
$22 to $28 | 573,521 | 0.6 years | 26.29 | 573,521 | 26.29 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
$10 to $28 | 3,407,575 | 1.8 years | 17.99 | 2,818,464 | 18.83 | |||||||||||||||||||||
Taxes | ||||||||||||||||||||||||||
A portion of the Company's granted options qualify as incentive stock options ("ISOs") for income tax purposes. As such, a tax benefit is not recorded at the time the compensation cost related to the options is recorded for book purposes due to the fact that an ISO does not ordinarily result in a tax benefit unless there is a disqualifying disposition. Stock option grants of non-qualified options result in the creation of a deferred tax asset, which is a temporary difference, until the time that the option is exercised. Due to the treatment of incentive stock options for tax purposes, the Company's effective tax rate from year to year is subject to variability. | ||||||||||||||||||||||||||
Retirement_Plans_and_Employee_
Retirement Plans and Employee Stock Purchase Plans | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Retirement Plans and Employee Stock Purchase Plans | ' | ||||||||||
Retirement Plans and Employee Stock Purchase Plans | ' | ||||||||||
(9) Retirement Plans and Employee Stock Purchase Plans | |||||||||||
SkyWest Retirement Plan | |||||||||||
The Company sponsors the SkyWest, Inc. Employees' Retirement Plan (the "SkyWest Plan"). Employees who have completed 90 days of service and are at least 18 years of age are eligible for participation in the SkyWest Plan. Employees may elect to make contributions to the SkyWest Plan. The Company matches 100% of such contributions up to 2%, 4% or 6% of the individual participant's compensation, based upon length of service. Additionally, a discretionary contribution may be made by the Company. The Company's combined contributions to the SkyWest Plan were $18.3 million, $16.0 million and $14.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||
ExpressJet and Atlantic Southeast Retirement Plan | |||||||||||
ExpressJet (formerly Atlantic Southeast) sponsors the Atlantic Southeast Airlines, Inc. Investment Savings Plan (the "Atlantic Southeast Plan"). Employees who have completed 90 days of service and are 18 years of age are eligible for participation in the Atlantic Southeast Plan. Employees may elect to make contributions to the Atlantic Southeast Plan; however, ExpressJet limits the amount of company match at 6% of each participant's total compensation, except for those with ten or more years of service whose company match is limited to 8% of total compensation. Additionally, ExpressJet matches the individual participant's contributions from 20% to 75%, depending on the length of the participant's service. Additionally, participants are 100% vested in their elective deferrals and rollover amounts and from 10% to 100% vested in company matching contributions based on length of service. | |||||||||||
Effective December 31, 2002, ExpressJet Delaware adopted the ExpressJet Airlines, Inc. 401(k) Savings Plan (the "ExpressJet Retirement Plan"). Substantially all of ExpressJet Delaware's domestic employees were covered by this plan at the time of the ExpressJet Combination. Effective January 1, 2009, the ExpressJet Retirement Plan was amended such that certain matching payment amounts have been reduced or eliminated depending on the terms of the collective bargaining unit or work group, as applicable. | |||||||||||
ExpressJet's contribution to the Atlantic Southeast and the ExpressJet Retirement Plans was $26.7 million, $26.4 million and $25.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||
ExpressJet Delaware also provided medical bridge coverage for employees between the ages of 60 to 65, with at least ten years of service who have retired from the Company. In December 2007, the Fair Treatment for Experienced Pilots Act (H.R. 4343) was enacted. This law increased the mandatory retirement age of commercial pilots from 60 to 65. As a result of this legislation, ExpressJet is no longer required to provide medical bridge coverage to its pilots between the ages of 60 to 65. In 2008, ExpressJet Delaware's practice of providing medical bridge coverage for non-pilot employees was frozen, and does not permit non-pilot employees retiring on or after January 1, 2009 to participate in such coverage. | |||||||||||
Employee Stock Purchase Plans | |||||||||||
In May 2009, the Company's Board of Directors approved the SkyWest, Inc. 2009 Employee Stock Purchase Plan (the "2009 Stock Purchase Plan"). All employees who have completed 90 days of employment with the Company or one of its subsidiaries are eligible to participate in the 2009 Stock Purchase Plan, except employees who own five percent or more of the Company's common stock. The 2009 Stock Purchase Plan enables employees to purchase shares of the Company's common stock at a five percent discount, through payroll deductions. Employees can contribute up to 15% of their base pay, not to exceed $21,250 each calendar year, for the purchase of shares. Shares are purchased semi-annually at a five percent discount based on the end of the period price. Employees can terminate their participation in the 2009 Stock Purchase Plan at any time upon written notice. | |||||||||||
The following table summarizes purchases made under the 2009 Employee Stock Purchase Plans during the years ended December 31, 2013, 2012 and 2011: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Number of shares purchased | 299,786 | 487,451 | 300,177 | ||||||||
Average price of shares purchased | $ | 12.33 | $ | 8.35 | $ | 14.56 | |||||
The 2009 Stock Purchase Plan is a non-compensatory plan under the accounting guidance. Therefore, no compensation expense was recorded for the years ended December 31, 2013, 2012 and 2011. | |||||||||||
Stock_Repurchase
Stock Repurchase | 12 Months Ended |
Dec. 31, 2013 | |
Stock Repurchase | ' |
Stock Repurchase | ' |
(10) Stock Repurchase | |
The Company's Board of Directors has authorized the repurchase of up to 25,000,000 shares of the Company's common stock in the public market since 2007. During the years ended December 31, 2013 and 2012, the Company repurchased 0.8 million and 0.1 million shares of common stock for approximately $11.7 million and $0.9 million, respectively at a weighted average price per share of $14.40 and $15.32, respectively. Effective September 14, 2012, the Company's Board of Directors adopted the SkyWest, Inc. 2012 Stock Repurchase Plan (the "Stock Repurchase Plan"), which provides for the repurchase of up to 6,514,266 shares of common stock, from time to time in open market or privately negotiated transactions, as contemplated by Rule 10b5-1 promulgated under the Exchange Act, as amended. The Stock Repurchase Plan expires on October 15, 2014. | |
RelatedParty_Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related-Party Transactions | ' |
Related-Party Transactions | ' |
(11) Related-Party Transactions | |
The Company's President, Chairman of the Board and Chief Executive Officer, serves on the Board of Directors of Zions Bancorporation ("Zions"). The Company maintains a line of credit (see Note 3) and certain bank accounts with Zions. Zions is an equity participant in leveraged leases on three CRJ200, two CRJ700 and five Brasilia turboprop aircraft operated by the Company's subsidiaries. Zions also refinanced six CRJ200 and two CRJ700 aircraft in 2012 for terms of three to four years, becoming the debtor on these aircraft. Zions also serves as the Company's transfer agent. The Company's cash balance in the accounts held at Zions as of December 31, 2013 and 2012 was $81.8 million and $56.4 million, respectively. | |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
(12) Quarterly Financial Data (Unaudited) | |||||||||||||||||
Unaudited summarized financial data by quarter for 2013 and 2012 is as follows (in thousands, except per share data): | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Operating revenues | $ | 803,487 | $ | 839,130 | $ | 850,740 | $ | 804,368 | $ | 3,297,725 | |||||||
Operating income | 15,561 | 50,555 | 56,174 | 30,820 | 153,111 | ||||||||||||
Net income (loss) | 3,233 | 20,720 | 26,394 | 8,609 | 58,956 | ||||||||||||
Net income (loss) per common share: | |||||||||||||||||
Basic | 0.06 | 0.4 | 0.51 | 0.17 | 1.14 | ||||||||||||
Diluted | 0.06 | 0.39 | 0.5 | 0.17 | 1.12 | ||||||||||||
Weighted average common shares: | |||||||||||||||||
Basic: | 51,763 | 51,881 | 51,881 | 51,228 | 51,688 | ||||||||||||
Diluted: | 52,497 | 52,547 | 52,610 | 52,034 | 52,422 | ||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Operating revenues | $ | 921,173 | $ | 937,214 | $ | 865,259 | $ | 810,726 | $ | 3,534,372 | |||||||
Operating income | 20,457 | 46,806 | 54,974 | 43,750 | 165,987 | ||||||||||||
Net income (loss) | (682 | ) | 16,960 | 20,933 | 13,946 | 51,157 | |||||||||||
Net income (loss) per common share: | |||||||||||||||||
Basic | (0.01 | ) | 0.33 | 0.41 | 0.27 | 1 | |||||||||||
Diluted | (0.01 | ) | 0.33 | 0.4 | 0.27 | 0.99 | |||||||||||
Weighted average common shares: | |||||||||||||||||
Basic: | 50,881 | 50,944 | 51,241 | 51,296 | 51,090 | ||||||||||||
Diluted: | 50,881 | 51,789 | 52,153 | 52,161 | 51,746 |
SCHEDULE_IIVALUATION_AND_QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | ' | |||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | ' | |||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||
For the Years Ended December 31, 2013, 2012 and 2011 | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
Description | Balance at | Additions | Deductions | Balance at | ||||||||||
Beginning | Charged to | End of Year | ||||||||||||
of Year | Costs and | |||||||||||||
Expenses | ||||||||||||||
Year Ended December 31, 2013: | ||||||||||||||
Allowance for inventory obsolescence | $ | 9,189 | 949 | — | 10,138 | |||||||||
Allowance for doubtful accounts receivable | 94 | — | — | 94 | ||||||||||
| | | | | | | | | | | | | | |
9,283 | 949 | — | 10,232 | |||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Year Ended December 31, 2012: | ||||||||||||||
Allowance for inventory obsolescence | $ | 8,248 | 941 | — | $ | 9,189 | ||||||||
Allowance for doubtful accounts receivable | 240 | — | (146 | ) | 94 | |||||||||
| | | | | | | | | | | | | | |
8,488 | 941 | (146 | ) | 9,283 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Year Ended December 31, 2011: | ||||||||||||||
Allowance for inventory obsolescence | $ | 7,541 | $ | 707 | — | $ | 8,248 | |||||||
Allowance for doubtful accounts receivable | 47 | 193 | — | 240 | ||||||||||
| | | | | | | | | | | | | | |
7,588 | 900 | — | 8,488 | |||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Nature_of_Operations_and_Summa1
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | ' | |||||||||||||
Basis of Presentation | ' | |||||||||||||
Basis of Presentation | ||||||||||||||
The Company's consolidated financial statements include the accounts of SkyWest, Inc. and its subsidiaries, including SkyWest Airlines and ExpressJet, with all inter-company transactions and balances having been eliminated. | ||||||||||||||
In preparing the accompanying consolidated financial statements, the Company has reviewed, as determined necessary by the Company's management, events that have occurred after December 31, 2013, up until the filing of the Company's annual report with the U.S. Securities and Exchange Commission. | ||||||||||||||
Use of Estimates | ' | |||||||||||||
Use of Estimates | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||
Cash and Cash Equivalents | ' | |||||||||||||
Cash and Cash Equivalents | ||||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company classified $12.2 million and $19.6 million of cash as restricted cash as required by the Company's workers' compensation policy and classified it accordingly in the consolidated balance sheets as of December 31, 2013 and 2012, respectively. | ||||||||||||||
Marketable Securities | ' | |||||||||||||
Marketable Securities | ||||||||||||||
The Company's investments in marketable debt and equity securities are deemed by management to be available for sale and are reported at fair market value with the net unrealized appreciation (depreciation) reported as a component of accumulated other comprehensive income in stockholders' equity. At the time of sale, any realized appreciation or depreciation, calculated by the specific identification method, is recognized in other income and expense. The Company's position in marketable securities as of December 31, 2013 and 2012 was as follows (in thousands): | ||||||||||||||
2013 | 2012 | |||||||||||||
Investment Types | Cost | Market Value | Cost | Market Value | ||||||||||
Commercial paper | $ | — | $ | — | $ | 3,510 | $ | 3,514 | ||||||
Bond and bond funds | 489,071 | 489,294 | 555,603 | 556,133 | ||||||||||
Asset backed securities | 182 | 190 | 296 | 314 | ||||||||||
| | | | | | | | | | | | | | |
489,253 | 489,484 | 559,409 | 559,961 | |||||||||||
Unrealized appreciation | 231 | — | 552 | — | ||||||||||
| | | | | | | | | | | | | | |
Total | 489,484 | 489,484 | $ | 559,961 | $ | 559,961 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Marketable securities had the following maturities as of December 31, 2013 (in thousands): | ||||||||||||||
Maturities | Amount | |||||||||||||
Year 2014 | $ | 304,353 | ||||||||||||
Years 2015 through 2018 | 182,873 | |||||||||||||
Years 2019 through 2023 | — | |||||||||||||
Thereafter | 2,258 | |||||||||||||
As of December 31, 2013, the Company had classified $487.2 million of marketable securities as short-term since it has the intent to maintain a liquid portfolio and the ability to redeem the securities within one year. The Company has classified approximately $2.2 million of investments as non-current and has identified them as "Other assets" in the Company's consolidated balance sheet as of December 31, 2013 (see Note 7). | ||||||||||||||
Inventories | ' | |||||||||||||
Inventories | ||||||||||||||
Inventories include expendable parts, fuel and supplies and are valued at cost (FIFO basis) less an allowance for obsolescence based on historical results and management's expectations of future operations. Expendable inventory parts are charged to expense as used. An obsolescence allowance for flight equipment expendable parts is accrued based on estimated lives of the corresponding fleet types and salvage values. The inventory allowance as of December 31, 2013 and 2012 was $10.1 million and $9.2 million, respectively. These allowances are based on management estimates, which are subject to change. | ||||||||||||||
Property and Equipment | ' | |||||||||||||
Property and Equipment | ||||||||||||||
Property and equipment are stated at cost and depreciated over their useful lives to their estimated residual values using the straight-line method as follows: | ||||||||||||||
Assets | Depreciable Life | Residual Value | ||||||||||||
Aircraft and rotable spares | 10 - 18 years | 0 - 30% | ||||||||||||
Ground equipment | 5 - 10 years | 0% | ||||||||||||
Office equipment | 5 - 7 years | 0% | ||||||||||||
Leasehold improvements | 15 years or life of the lease | 0% | ||||||||||||
Buildings | 20 - 39.5 years | 0% | ||||||||||||
Impairment of Long-Lived Assets | ' | |||||||||||||
Impairment of Long Lived Assets | ||||||||||||||
As of December 31, 2013, the Company had approximately $2.7 billion of property and equipment and related assets. Additionally, as of December 31, 2013, the Company had approximately $15.0 million in intangible assets. In accounting for these long-lived and intangible assets, the Company makes estimates about the expected useful lives of the assets, the expected residual values of certain of these assets, and the potential for impairment based on the fair value of the assets and the cash flows they generate. On September 7, 2005, the Company completed the acquisition of all of the issued and outstanding capital stock of Atlantic Southeast and recorded an intangible asset of approximately $33.7 million relating to the acquisition. The intangible asset is being amortized over fifteen years under the straight-line method. As of December 31, 2013 and 2012, the Company had $18.7 million and $16.5 million in accumulated amortization expense, respectively. Factors indicating potential impairment include, but are not limited to, significant decreases in the market value of the long-lived assets, a significant change in the condition of the long-lived assets and operating cash flow losses associated with the use of the long-lived assets. On a periodic basis, the Company evaluates whether impairment indicators are present. When considering whether or not impairment of long-lived assets exists, we group similar assets together at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and compare the undiscounted cash flows for each asset group to the net carrying amount of the assets supporting the asset group. Asset groupings are done at the fleet or contract level. The Company did not recognize any impairments of long-lived assets during 2013, 2012, or 2011. | ||||||||||||||
Capitalized Interest | ' | |||||||||||||
Capitalized Interest | ||||||||||||||
Interest is capitalized on aircraft purchase deposits as a portion of the cost of the asset and is depreciated over the estimated useful life of the asset. During the years ended December 31, 2013, 2012 and 2011, the Company capitalized interest costs of approximately $1.2 million, $0, and $0, respectively. | ||||||||||||||
Maintenance | ' | |||||||||||||
Maintenance | ||||||||||||||
The Company operates under an FAA-approved continuous inspection and maintenance program. The Company uses the direct expense method of accounting for its regional jet engine overhauls wherein the expense is recorded when the overhaul event occurs. The Company has an engine services agreement with a third party vendor to provide long-term engine services covering the scheduled and unscheduled repairs for certain of its Bombardier CRJ700 Regional Jets ("CRJ700s") and Embraer S.A. ("Embraer") ERJ145 regional jet ("ERJ 145") aircraft. Under the terms of the agreement, the Company pays a set dollar amount per engine hour flown on a monthly basis and the third party vendor will assume the responsibility to repair the engines at no additional cost to the Company, subject to certain specified exclusions. Maintenance costs under these contracts are recognized when the engine hour is flown pursuant to the terms of the contract. The Company uses the "deferral method" of accounting for its Embraer Brasilia EMB-120 turboprop aircraft ("Brasilia turboprop") engine overhauls wherein the overhaul costs are capitalized and depreciated to the next estimated overhaul event. The costs of maintenance for airframe and avionics components, landing gear and normal recurring maintenance are expensed as incurred. For leased aircraft, the Company is subject to lease return provisions that require a minimum portion of the "life" of an overhaul be remaining on the engine at the lease return date. For Brasilia turboprop engine overhauls related to leased aircraft to be returned, the Company adjusts the estimated useful lives of the final engine overhauls based on the shorter of the remaining useful life or the respective lease return dates. | ||||||||||||||
Passenger and Ground Handling Revenues | ' | |||||||||||||
Passenger and Ground Handling Revenues | ||||||||||||||
The Company recognizes passenger and ground handling revenues when the service is provided. Under the Company's contract and pro-rate flying agreements with Delta, United, US Airways, American and Alaska, revenue is considered earned when the flight is completed. Revenue is recognized under the Company's pro-rate flying agreements based upon the portion of the pro-rate passenger fare the Company anticipates that it will receive. Other ancillary revenues commonly associated with airlines such as baggage fee revenue, ticket change fee revenue and the marketing component of the sale of mileage credits are retained by the Company's major airline partners on flights that the Company operates under its code-share agreements. | ||||||||||||||
In the event that the contractual rates under the agreements have not been finalized at quarterly or annual financial statement dates, the Company records revenues based on the lower of prior period's approved rates, as adjusted to reflect any contract negotiations and the Company's estimate of rates that will be implemented in accordance with revenue recognition guidelines. | ||||||||||||||
In the event the Company has a reimbursement dispute with a major partner, the Company evaluates the dispute under its established revenue recognition criteria and, provided the revenue recognition criteria have been met, the Company recognizes revenue based on management's estimate of the resolution of the dispute. | ||||||||||||||
In several of the Company's agreements, the Company is eligible for incentive compensation upon the achievement of certain performance criteria. The incentives are defined in the agreements and are being measured and determined on a monthly, quarterly or semi-annual basis. At the end of period, the Company calculates the incentives achieved during that period and recognizes revenue accordingly. | ||||||||||||||
The following summarizes the significant provision of each code share agreement the Company has with each major partner: | ||||||||||||||
Delta Connection Agreements | ||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | |||||||||
aircraft under | Dates | or costs paid directly | Incentive | |||||||||||
contract | by major partner | Structure | ||||||||||||
SkyWest Airlines Delta Connection Agreement | • | • | • | • | • | |||||||||
CRJ 200 - 41 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | No financial performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||||||
• | • | • | ||||||||||||
CRJ700 - 19 | The final aircraft expires in 2022 | Engine Maintenance | ||||||||||||
• | • | • | ||||||||||||
CRJ 900 - 32 | The average remaining term of the aircraft under contract is 5.8 years | Landing fees, Station Rents, Deice | ||||||||||||
• | • | |||||||||||||
Upon expiration, aircraft may be renewed or extended | Insurance | |||||||||||||
ExpressJet Delta Connection Agreement | • | • | • | • | • | |||||||||
CRJ 200 - 76 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based financial incentives | Rate per block hour, per departure and per aircraft under contract | ||||||||||
• | • | • | ||||||||||||
CRJ700 - 41 | The final aircraft expires in 2022 | Engine Maintenance | ||||||||||||
• | • | • | ||||||||||||
CRJ 900 - 28 | The average remaining term of the aircraft under contract is 4.4 years | Landing fees, Station Rents, Deice Insurance | ||||||||||||
• | ||||||||||||||
Upon expiration, aircraft may be renewed or extended | ||||||||||||||
SkyWest Airlines Prorate Agreement | • | • | • | • | • | |||||||||
EMB 120 - 9 | Terminate with 120 days notice | None | None | Pro-rata sharing of the passenger fare revenue | ||||||||||
• | ||||||||||||||
CRJ200 - 8 | ||||||||||||||
SkyWest Airlines and ExpressJet are each parties to a Delta Connection Agreement with Delta, pursuant to which SkyWest Airlines and ExpressJet provide contract flight services for Delta. The SkyWest Airlines and ExpressJet Delta Connection Agreements contain multi-year rate reset provisions beginning in 2010 and continuing each 5th year thereafter. The Delta Connection Agreements also provide that, beginning with the fifth anniversary of the execution of the agreements (September 8, 2010), Delta has the right to require that certain contractual rates under those agreements shall not exceed the second lowest of all carriers within the Delta Connection program. During the fourth quarter of 2010, SkyWest Airlines and ExpressJet reached an agreement with Delta on contractual rates satisfying the 2010 rate reset provision and the second-lowest rate provision and agreed to rates through December 31, 2015. Delta additionally waived its right to require that the contractual rates payable under the Delta Connection Agreements shall not exceed the second-lowest rates of all carriers within the Delta Connection program through December 31, 2015. | ||||||||||||||
United Express Agreements | ||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | |||||||||
aircraft under | Dates | or costs paid | Incentive Structure | |||||||||||
contract | directly by major | |||||||||||||
partner | ||||||||||||||
SkyWest Airlines United Express Agreement | • | • | • | • | • | |||||||||
CRJ 200 - 61 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||||||
• | • | • | ||||||||||||
CRJ700 - 70 | The final aircraft expires in 2024 | Landing fees, Station Rents, Deice | ||||||||||||
• | • | • | ||||||||||||
EMB 120 - 9 | The average remaining term of the aircraft under contract is 3.8 years | Insurance | ||||||||||||
• | ||||||||||||||
Upon expiration, aircraft may be renewed or extended | ||||||||||||||
Atlantic Southeast United Express Agreement | • | • | • | • | • | |||||||||
CRJ 200 - 14 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||||||
• | • | |||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | |||||||||||||
• | ||||||||||||||
Insurance | ||||||||||||||
ExpressJet Delaware United Express Agreement | • | • | • | • | • | |||||||||
EMB 145 - 22 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||||||
• | • | |||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | |||||||||||||
• | ||||||||||||||
Insurance | ||||||||||||||
ExpressJet Delaware United Express Agreement | • | • | • | • | • | |||||||||
EMB 135 - 9 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based incentives or penalties | Rate per block hour, per departure and per aircraft under contract | ||||||||||
• | • | • | ||||||||||||
EMB 145 - 220 | The final aircraft expires in 2020 | Engine Maintenance | ||||||||||||
• | • | |||||||||||||
The average remaining term of the aircraft under contract is 4.3 years | Landing fees, Station Rents, Deice | |||||||||||||
• | • | |||||||||||||
Upon expiration, aircraft may be renewed or extended | Insurance | |||||||||||||
SkyWest Airlines United Express Prorate Agreement | • | • | • | • | • | |||||||||
CRJ200 - 17 | Terminate with 120 days notice | None | None | Pro-rata sharing of the passenger fare revenue | ||||||||||
• | ||||||||||||||
EMB 120 - 27 | ||||||||||||||
Alaska Capacity Purchase Agreement | ||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | |||||||||
aircraft under | Dates | or costs paid | ||||||||||||
contract | directly by major | |||||||||||||
partner | ||||||||||||||
SkyWest Airlines Capacity Purchase Agreement | • | • | • | • | • | |||||||||
CRJ 700 - 7 | Terminates 2018 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||||||
• | • | |||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | |||||||||||||
• | ||||||||||||||
Insurance | ||||||||||||||
US Airways Express Agreement | ||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | |||||||||
aircraft under | Dates | or costs paid | ||||||||||||
contract | directly by major | |||||||||||||
partner | ||||||||||||||
SkyWest Airlines US Airways Express Agreement | • | • | • | • | • | |||||||||
CRJ200 - 10 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||||||
• | • | • | ||||||||||||
CRJ900 - 4 | Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | ||||||||||||
• | ||||||||||||||
Insurance | ||||||||||||||
SkyWest Airlines US Airways Express Prorate Agreement | • | • | • | • | • | |||||||||
CRJ200 - 1 | Terminate with 120 days notice | None | None | Pro-rata sharing of the passenger fare revenue | ||||||||||
American Agreement | ||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | |||||||||
aircraft under | Dates | or costs paid | ||||||||||||
contract | directly by major | |||||||||||||
partner | ||||||||||||||
SkyWest Airlines American Capacity Purchase Agreement | • | • | • | • | • | |||||||||
CRJ200 - 12 | Terminate 2016 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||||||
• | • | |||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | |||||||||||||
• | ||||||||||||||
Insurance | ||||||||||||||
ExpressJet American Capacity Purchase Agreement | • | • | • | • | • | |||||||||
CRJ200 - 11 | Terminates 2017 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | ||||||||||
• | • | |||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | |||||||||||||
• | ||||||||||||||
Insurance | ||||||||||||||
Other Revenue Items | ' | |||||||||||||
Other Revenue Items | ||||||||||||||
The Company's passenger and ground handling revenues could be impacted by a number of factors, including changes to the Company's code-share agreements with Delta, United, Alaska, American or US Airways, contract modifications resulting from contract re-negotiations, the Company's ability to earn incentive payments contemplated under the Company's code-share agreements and settlement of reimbursement disputes with the Company's major partners. | ||||||||||||||
Under the Company's code-share agreements with Delta, United, Alaska, US Airways and American, the compensation structure generally consists of a combination of agreed-upon rates for operating flights and direct reimbursement for other certain costs associated with operating the aircraft. A portion of the Company's contract flying compensation is designed to reimburse the Company for certain aircraft ownership costs. The Company has concluded that a component of its revenue under these agreements is rental income, inasmuch as the agreements identify the "right of use" of a specific type and number of aircraft over a stated period of time. The amounts deemed to be rental income under the agreements for the years ended December 31, 2013, 2012 and 2011 were $500.2 million, $506.7 million and $521.3 million, respectively. These amounts were recorded as passenger revenue on the Company's consolidated statements of operations. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of comprehensive income (loss) since the use of the aircraft is not a separate activity of the total service provided and there is not a separate profitability measurement for the deemed rental activity of the aircraft. | ||||||||||||||
Deferred Aircraft Credits | ' | |||||||||||||
Deferred Aircraft Credits | ||||||||||||||
The Company accounts for incentives provided by aircraft manufacturers as deferred credits. The deferred credits related to leased aircraft are amortized on a straight-line basis as a reduction to rent expense over the lease term. Credits related to owned aircraft reduce the purchase price of the aircraft, which has the effect of amortizing the credits on a straight-line basis as a reduction in depreciation expense over the life of the related aircraft. The incentives are credits that may be used to purchase spare parts and pay for training and other expenses. | ||||||||||||||
Income Taxes | ' | |||||||||||||
Income Taxes | ||||||||||||||
The Company recognizes a liability or asset for the deferred tax consequences of all temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the assets and liabilities are recovered or settled. | ||||||||||||||
Net Income (Loss) Per Common Share | ' | |||||||||||||
Net Income (Loss) Per Common Share | ||||||||||||||
Basic net income (loss) per common share ("Basic EPS") excludes dilution and is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share ("Diluted EPS") reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income (loss) per common share. During the years ended December 31, 2013, 2012 and 2011, 3,072,000, 3,889,000 and 4,323,000 shares reserved for issuance upon the exercise of outstanding options were excluded from the computation of Diluted EPS respectively, as their inclusion would be anti-dilutive. | ||||||||||||||
The calculation of the weighted average number of common shares outstanding for Basic EPS and Diluted EPS are as follows for the years ended December 31, 2013, 2012and 2011 (in thousands): | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Numerator: | ||||||||||||||
Net Income (Loss) | $ | 58,956 | $ | 51,157 | $ | (27,335 | ) | |||||||
Denominator: | ||||||||||||||
Denominator for basic earnings per-share weighted average shares | 51,688 | 51,090 | 52,201 | |||||||||||
Dilution due to stock options and restricted stock | 734 | 656 | — | |||||||||||
| | | | | | | | | | | ||||
Denominator for diluted earnings per-share weighted average shares | 52,422 | 51,746 | 52,201 | |||||||||||
Basic earnings (loss) per-share | $ | 1.14 | $ | 1 | $ | (0.52 | ) | |||||||
Diluted earnings (loss) per-share | $ | 1.12 | $ | 0.99 | $ | (0.52 | ) | |||||||
Comprehensive Income (Loss) | ' | |||||||||||||
Comprehensive Income (Loss) | ||||||||||||||
Comprehensive income (loss) includes charges and credits to stockholders' equity that are not the result of transactions with the Company's shareholders. Also, comprehensive income (loss) consisted of net income (loss) plus changes in unrealized appreciation (depreciation) on marketable securities and unrealized gain (loss) on foreign currency translation adjustment related to the Company's equity investment in Trip Linhas Aereas, a regional airline operating in Brazil ("Trip") and Mekong Aviation Joint Stock Company, an airline operating in Vietnam ("Air Mekong") (see note 8), net of tax, for the periods indicated (in thousands): | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Net Income (Loss) | $ | 58,956 | 51,157 | $ | (27,335 | ) | ||||||||
Proportionate share of other companies foreign currency translation adjustment, net of tax | 66 | (251 | ) | (295 | ) | |||||||||
Unrealized appreciation (depreciation) on marketable securities, net of tax | (13 | ) | 316 | 534 | ||||||||||
| | | | | | | | | | | ||||
Comprehensive income (loss) | $ | 59,009 | $ | 51,222 | $ | (27,096 | ) | |||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
The carrying amounts reported in the consolidated balance sheets for receivables and accounts payable approximate fair values because of the immediate or short-term maturity of these financial instruments. Marketable securities are reported at fair value based on market quoted prices in the consolidated balance sheets. If quoted prices in active markets are no longer available and the Company has estimated the fair values of these securities utilizing a discounted cash flow analysis as of December 31, 2013. These analyses consider, among other items, the collateralization underlying the security investments, the creditworthiness of the counterparty, the timing of expected future cash flows, and the expectation of the next time the security is expected to have a successful auction. The fair value of the Company's long-term debt is estimated based on current rates offered to the Company for similar debt and was approximately $1,509.2 million as of December 31, 2013, as compared to the carrying amount of $1,470.6 million as of December 31, 2013. The Company's fair value of long-term debt as of December 31, 2012 was $1,744.2 million as compared to the carrying amount of $1,642.0 million as of December 31, 2012. | ||||||||||||||
Segment Reporting | ' | |||||||||||||
Segment Reporting | ||||||||||||||
Generally accepted accounting principles require disclosures related to components of a company for which separate financial information is available to, and regularly evaluated by, the Company's chief operating decision maker when deciding how to allocate resources and in assessing performance. The Company's two operating segments consist of the operations conducted by its two subsidiaries, SkyWest Airlines and ExpressJet. Information pertaining to the Company's reportable segments is presented in Note 2, Segment Reporting. | ||||||||||||||
Nature_of_Operations_and_Summa2
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | ' | ||||||||||||||||||||||
Schedule of details of aircraft and agreements with other airlines | ' | ||||||||||||||||||||||
As of December 31, 2013, the Company had a combined fleet of 757 aircraft consisting of the following: | |||||||||||||||||||||||
CRJ200 | ERJ145 | ERJ135 | CRJ700 | CRJ900 | EMB120 | Total | |||||||||||||||||
United | 92 | 242 | 9 | 70 | — | 36 | 449 | ||||||||||||||||
Delta | 125 | — | — | 60 | 60 | 9 | 254 | ||||||||||||||||
American | 23 | — | — | — | — | — | 23 | ||||||||||||||||
US Airways | 11 | — | — | — | 4 | — | 15 | ||||||||||||||||
Alaska | — | — | — | 7 | — | — | 7 | ||||||||||||||||
Subleased to an un-affiliated entity | 2 | — | — | — | — | — | 2 | ||||||||||||||||
Unassigned | 7 | — | — | — | — | — | 7 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total | 260 | 242 | 9 | 137 | 64 | 45 | 757 | ||||||||||||||||
Schedule of the Company's position in marketable securities | ' | ||||||||||||||||||||||
The Company's position in marketable securities as of December 31, 2013 and 2012 was as follows (in thousands): | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Investment Types | Cost | Market Value | Cost | Market Value | |||||||||||||||||||
Commercial paper | $ | — | $ | — | $ | 3,510 | $ | 3,514 | |||||||||||||||
Bond and bond funds | 489,071 | 489,294 | 555,603 | 556,133 | |||||||||||||||||||
Asset backed securities | 182 | 190 | 296 | 314 | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
489,253 | 489,484 | 559,409 | 559,961 | ||||||||||||||||||||
Unrealized appreciation | 231 | — | 552 | — | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Total | 489,484 | 489,484 | $ | 559,961 | $ | 559,961 | |||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Schedule of maturities of marketable securities | ' | ||||||||||||||||||||||
Marketable securities had the following maturities as of December 31, 2013 (in thousands): | |||||||||||||||||||||||
Maturities | Amount | ||||||||||||||||||||||
Year 2014 | $ | 304,353 | |||||||||||||||||||||
Years 2015 through 2018 | 182,873 | ||||||||||||||||||||||
Years 2019 through 2023 | — | ||||||||||||||||||||||
Thereafter | 2,258 | ||||||||||||||||||||||
Schedule of property and equipment | ' | ||||||||||||||||||||||
Assets | Depreciable Life | Residual Value | |||||||||||||||||||||
Aircraft and rotable spares | 10 - 18 years | 0 - 30% | |||||||||||||||||||||
Ground equipment | 5 - 10 years | 0% | |||||||||||||||||||||
Office equipment | 5 - 7 years | 0% | |||||||||||||||||||||
Leasehold improvements | 15 years or life of the lease | 0% | |||||||||||||||||||||
Buildings | 20 - 39.5 years | 0% | |||||||||||||||||||||
Net income with per share data and comprehensive income | ' | ||||||||||||||||||||||
Schedule of net income (loss) per common share | ' | ||||||||||||||||||||||
The calculation of the weighted average number of common shares outstanding for Basic EPS and Diluted EPS are as follows for the years ended December 31, 2013, 2012and 2011 (in thousands): | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net Income (Loss) | $ | 58,956 | $ | 51,157 | $ | (27,335 | ) | ||||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic earnings per-share weighted average shares | 51,688 | 51,090 | 52,201 | ||||||||||||||||||||
Dilution due to stock options and restricted stock | 734 | 656 | — | ||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Denominator for diluted earnings per-share weighted average shares | 52,422 | 51,746 | 52,201 | ||||||||||||||||||||
Basic earnings (loss) per-share | $ | 1.14 | $ | 1 | $ | (0.52 | ) | ||||||||||||||||
Diluted earnings (loss) per-share | $ | 1.12 | $ | 0.99 | $ | (0.52 | ) | ||||||||||||||||
Schedule of comprehensive income (loss) | ' | ||||||||||||||||||||||
Also, comprehensive income (loss) consisted of net income (loss) plus changes in unrealized appreciation (depreciation) on marketable securities and unrealized gain (loss) on foreign currency translation adjustment related to the Company's equity investment in Trip Linhas Aereas, a regional airline operating in Brazil ("Trip") and Mekong Aviation Joint Stock Company, an airline operating in Vietnam ("Air Mekong") (see note 8), net of tax, for the periods indicated (in thousands): | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Net Income (Loss) | $ | 58,956 | 51,157 | $ | (27,335 | ) | |||||||||||||||||
Proportionate share of other companies foreign currency translation adjustment, net of tax | 66 | (251 | ) | (295 | ) | ||||||||||||||||||
Unrealized appreciation (depreciation) on marketable securities, net of tax | (13 | ) | 316 | 534 | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Comprehensive income (loss) | $ | 59,009 | $ | 51,222 | $ | (27,096 | ) | ||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Delta Connection Agreements | ' | ||||||||||||||||||||||
Agreements with other airlines | ' | ||||||||||||||||||||||
Schedule of details of agreements with other airlines | ' | ||||||||||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | ||||||||||||||||||
aircraft under | Dates | or costs paid directly | Incentive | ||||||||||||||||||||
contract | by major partner | Structure | |||||||||||||||||||||
SkyWest Airlines Delta Connection Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ 200 - 41 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | No financial performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ700 - 19 | The final aircraft expires in 2022 | Engine Maintenance | |||||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ 900 - 32 | The average remaining term of the aircraft under contract is 5.8 years | Landing fees, Station Rents, Deice | |||||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Insurance | ||||||||||||||||||||||
ExpressJet Delta Connection Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ 200 - 76 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based financial incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ700 - 41 | The final aircraft expires in 2022 | Engine Maintenance | |||||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ 900 - 28 | The average remaining term of the aircraft under contract is 4.4 years | Landing fees, Station Rents, Deice Insurance | |||||||||||||||||||||
• | |||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | |||||||||||||||||||||||
SkyWest Airlines Prorate Agreement | • | • | • | • | • | ||||||||||||||||||
EMB 120 - 9 | Terminate with 120 days notice | None | None | Pro-rata sharing of the passenger fare revenue | |||||||||||||||||||
• | |||||||||||||||||||||||
CRJ200 - 8 | |||||||||||||||||||||||
United Express Agreements | ' | ||||||||||||||||||||||
Agreements with other airlines | ' | ||||||||||||||||||||||
Schedule of details of agreements with other airlines | ' | ||||||||||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Performance | Payment Structure | ||||||||||||||||||
aircraft under | Dates | or costs paid | Incentive Structure | ||||||||||||||||||||
contract | directly by major | ||||||||||||||||||||||
partner | |||||||||||||||||||||||
SkyWest Airlines United Express Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ 200 - 61 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ700 - 70 | The final aircraft expires in 2024 | Landing fees, Station Rents, Deice | |||||||||||||||||||||
• | • | • | |||||||||||||||||||||
EMB 120 - 9 | The average remaining term of the aircraft under contract is 3.8 years | Insurance | |||||||||||||||||||||
• | |||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | |||||||||||||||||||||||
Atlantic Southeast United Express Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ 200 - 14 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
ExpressJet Delaware United Express Agreement | • | • | • | • | • | ||||||||||||||||||
EMB 145 - 22 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
ExpressJet Delaware United Express Agreement | • | • | • | • | • | ||||||||||||||||||
EMB 135 - 9 | The contract expires on an individual aircraft basis beginning in 2014 | Fuel | Performance based incentives or penalties | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | • | |||||||||||||||||||||
EMB 145 - 220 | The final aircraft expires in 2020 | Engine Maintenance | |||||||||||||||||||||
• | • | ||||||||||||||||||||||
The average remaining term of the aircraft under contract is 4.3 years | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Insurance | ||||||||||||||||||||||
SkyWest Airlines United Express Prorate Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ200 - 17 | Terminate with 120 days notice | None | None | Pro-rata sharing of the passenger fare revenue | |||||||||||||||||||
• | |||||||||||||||||||||||
EMB 120 - 27 | |||||||||||||||||||||||
Alaska Capacity Purchase Agreement | ' | ||||||||||||||||||||||
Agreements with other airlines | ' | ||||||||||||||||||||||
Schedule of details of agreements with other airlines | ' | ||||||||||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||||||||||||||
aircraft under | Dates | or costs paid | |||||||||||||||||||||
contract | directly by major | ||||||||||||||||||||||
partner | |||||||||||||||||||||||
SkyWest Airlines Capacity Purchase Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ 700 - 7 | Terminates 2018 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
US Airways Express Agreement | ' | ||||||||||||||||||||||
Agreements with other airlines | ' | ||||||||||||||||||||||
Schedule of details of agreements with other airlines | ' | ||||||||||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||||||||||||||
aircraft under | Dates | or costs paid | |||||||||||||||||||||
contract | directly by major | ||||||||||||||||||||||
partner | |||||||||||||||||||||||
SkyWest Airlines US Airways Express Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ200 - 10 | Terminates 2015 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | • | |||||||||||||||||||||
CRJ900 - 4 | Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | |||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
SkyWest Airlines US Airways Express Prorate Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ200 - 1 | Terminate with 120 days notice | None | None | Pro-rata sharing of the passenger fare revenue | |||||||||||||||||||
American Agreement | ' | ||||||||||||||||||||||
Agreements with other airlines | ' | ||||||||||||||||||||||
Schedule of details of agreements with other airlines | ' | ||||||||||||||||||||||
Agreement | Number of | Term / Termination | Pass through costs | Incentive Structure | Payment Structure | ||||||||||||||||||
aircraft under | Dates | or costs paid | |||||||||||||||||||||
contract | directly by major | ||||||||||||||||||||||
partner | |||||||||||||||||||||||
SkyWest Airlines American Capacity Purchase Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ200 - 12 | Terminate 2016 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
ExpressJet American Capacity Purchase Agreement | • | • | • | • | • | ||||||||||||||||||
CRJ200 - 11 | Terminates 2017 | Fuel | Performance based incentives | Rate per block hour, per departure and per aircraft under contract | |||||||||||||||||||
• | • | ||||||||||||||||||||||
Upon expiration, aircraft may be renewed or extended | Landing fees, Station Rents, Deice | ||||||||||||||||||||||
• | |||||||||||||||||||||||
Insurance |
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Reporting | ' | |||||||||||||
Schedule of Company's segment data | ' | |||||||||||||
The following represents the Company's segment data for the years ended December 31, 2013, 2012 and 2011 (in thousands). | ||||||||||||||
Year ended December 31, 2013 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | 1,827,568 | 1,466,341 | 3,816 | 3,297,725 | ||||||||||
Operating expense | 1,644,129 | 1,494,302 | 6,183 | 3,144,614 | ||||||||||
Depreciation and amortization expense | 155,667 | 89,338 | — | 245,005 | ||||||||||
Interest expense | 43,920 | 21,034 | 3,704 | 68,658 | ||||||||||
Segment profit (loss)(1) | 139,519 | (48,995 | ) | (6,071 | ) | 84,453 | ||||||||
Identifiable intangible assets, other than goodwill | — | 14,998 | — | 14,998 | ||||||||||
Total assets | 2,532,431 | 1,700,788 | — | 4,233,219 | ||||||||||
Capital expenditures (including non-cash) | 103,387 | 38,657 | — | 142,044 | ||||||||||
Year ended December 31, 2012 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | 1,930,149 | 1,593,527 | 10,696 | 3,534,372 | ||||||||||
Operating expense | 1,774,876 | 1,588,400 | 5,109 | 3,368,385 | ||||||||||
Depreciation and amortization expense | 153,915 | 98,043 | — | 251,958 | ||||||||||
Interest expense | 49,208 | 23,582 | 4,590 | 77,380 | ||||||||||
Segment profit(1) | 106,065 | (18,455 | ) | 997 | 88,607 | |||||||||
Identifiable intangible assets, other than goodwill | — | 17,248 | — | 17,248 | ||||||||||
Total assets | 2,633,369 | 1,621,268 | — | 4,254,637 | ||||||||||
Capital expenditures (including non-cash) | 74,636 | 20,204 | — | 94,840 | ||||||||||
Year ended December 31, 2011 | ||||||||||||||
SkyWest | ExpressJet | Other | Consolidated | |||||||||||
Airlines | ||||||||||||||
Operating revenues | 2,002,830 | 1,640,837 | 11,256 | 3,654,923 | ||||||||||
Operating expense | 1,893,909 | 1,714,481 | 5,428 | 3,613,818 | ||||||||||
Depreciation and amortization expense | 147,520 | 106,662 | — | 254,182 | ||||||||||
Interest expense | 50,907 | 25,142 | 4,334 | 80,383 | ||||||||||
Segment profit(1) | 58,014 | (98,786 | ) | 1,494 | (39,278 | ) | ||||||||
Identifiable intangible assets, other than goodwill | — | 19,497 | — | 19,497 | ||||||||||
Total assets | 2,595,901 | 1,686,007 | — | 4,281,908 | ||||||||||
Capital expenditures (including non-cash) | 166,998 | 32,758 | — | 199,756 | ||||||||||
-1 | ||||||||||||||
Segment profit is operating income less interest expense | ||||||||||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Long-term Debt | ' | |||||||
Schedule of long-term debt | ' | |||||||
Long-term debt consisted of the following as of December 31, 2013 and 2012 (in thousands): | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Notes payable to banks, due in semi-annual installments, variable interest based on LIBOR, or with interest rates ranging from 1.34% to 2.55% through 2014 to 2020, secured by aircraft | $ | 224,915 | $ | 273,515 | ||||
Notes payable to a financing company, due in semi-annual installments, variable interest based on LIBOR, or with interest rates ranging from 0.70% to 2.36% through 2014 to 2021, secured by aircraft | 392,660 | 434,716 | ||||||
Notes payable to banks, due in semi-annual installments plus interest at 6.06% to 7.18% through 2021, secured by aircraft | 149,477 | 168,937 | ||||||
Notes payable to a financing company, due in semi-annual installments plus interest at 5.78% to 6.23% through 2019, secured by aircraft | 32,528 | 39,548 | ||||||
Notes payable to banks, due in monthly installments plus interest of 3.15% to 8.18% through 2025, secured by aircraft | 623,315 | 665,867 | ||||||
Notes payable to banks, due in semi-annual installments, plus interest at 6.05% through 2020, secured by aircraft | 15,740 | 17,872 | ||||||
Notes payable to a bank, due in monthly installments interest based on LIBOR plus interest at 2.00% to 4.00% through 2016, secured by aircraft | 31,933 | 41,567 | ||||||
| | | | | | | | |
Long-term debt | 1,470,568 | 1,642,022 | ||||||
| | | | | | | | |
Less current maturities | (177,389 | ) | (171,454 | ) | ||||
| | | | | | | | |
Long-term debt, net of current maturities | 1,293,179 | 1,470,568 | ||||||
| | | | | | | | |
| | | | | | | | |
Schedule of maturities of long-term debt | ' | |||||||
The aggregate amounts of principal maturities of long-term debt as of December 31, 2013 were as follows (in thousands): | ||||||||
2014 | 177,389 | |||||||
2015 | 184,510 | |||||||
2016 | 188,240 | |||||||
2017 | 161,735 | |||||||
2018 | 139,020 | |||||||
Thereafter | 619,674 | |||||||
| | | | | ||||
1,470,568 | ||||||||
| | | | | ||||
| | | | | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of components of provision for income taxes | ' | ||||||||||
The provision for income taxes includes the following components (in thousands): | |||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current tax provision (benefit): | |||||||||||
Federal | $ | 1,767 | $ | — | $ | — | |||||
State | 343 | 441 | 396 | ||||||||
| | | | | | | | | | | |
2,110 | 441 | 396 | |||||||||
| | | | | | | | | | | |
Deferred tax provision (benefit): | |||||||||||
Federal | 34,728 | 31,791 | (21,533 | ) | |||||||
State | 2,738 | 2,507 | (1,698 | ) | |||||||
| | | | | | | | | | | |
37,466 | 34,298 | (23,231 | ) | ||||||||
| | | | | | | | | | | |
Provision (benefit) for income taxes | 39,576 | 34,739 | (22,835 | ) | |||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of income tax rate reconciliation | ' | ||||||||||
The following is a reconciliation between the statutory Federal income tax rate of 35% and the effective rate which is derived by dividing the provision (benefit) for income taxes by income (loss) before for income taxes adjusted for permanent differences (in thousands): | |||||||||||
Year ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Computed "expected" provision (benefit) for income taxes at the statutory rates adjusted for permanent differences | $ | 37,743 | $ | 32,983 | $ | (14,683 | ) | ||||
Increase (decrease) in income taxes resulting from: | |||||||||||
Purchase accounting (gain) adjustment | — | — | 1,999 | ||||||||
State income tax provision (benefit), net of Federal income tax benefit | 2,867 | 2,220 | (1,810 | ) | |||||||
Valuation allowance changes affecting the provision for income taxes | 1,430 | 1,614 | — | ||||||||
Other, net | (2,464 | ) | (2,078 | ) | (8,341 | ) | |||||
| | | | | | | | | | | |
Provision (benefit) for income taxes | 39,576 | 34,739 | (22,835 | ) | |||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of components of the net deferred tax assets and liabilities | ' | ||||||||||
The significant components of the net deferred tax assets and liabilities are as follows (in thousands): | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Intangible Asset | $ | 36,164 | $ | 37,031 | |||||||
Accrued benefits | 40,850 | 40,469 | |||||||||
Net operating loss carryforward | 85,885 | 118,448 | |||||||||
AMT credit carryforward | 17,649 | 15,882 | |||||||||
Deferred aircraft credits | 44,350 | 48,124 | |||||||||
Accrued reserves and other | 30,987 | 31,846 | |||||||||
| | | | | | | | ||||
Total deferred tax assets | 255,885 | 291,800 | |||||||||
| | | | | | | | ||||
Valuation allowance | (3,044 | ) | (1,614 | ) | |||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Accelerated depreciation | (824,149 | ) | (823,487 | ) | |||||||
| | | | | | | | ||||
Total deferred tax liabilities | (824,149 | ) | (823,487 | ) | |||||||
| | | | | | | | ||||
Net deferred tax liability | (571,308 | ) | (533,301 | ) | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies | ' | |||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||||||
The following table summarizes future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2013 (in thousands): | ||||||||
Year ending December 31, | ||||||||
2014 | 380,413 | |||||||
2015 | 331,151 | |||||||
2016 | 258,464 | |||||||
2017 | 194,258 | |||||||
2018 | 153,294 | |||||||
Thereafter | 571,783 | |||||||
| | | | | ||||
1,889,363 | ||||||||
| | | | | ||||
| | | | | ||||
Schedule of Employees Under Collective Bargaining Agreements | ' | |||||||
Employee Group | Approximate | Representatives | Status of | |||||
Number of | Agreement | |||||||
Active Employees | ||||||||
Represented | ||||||||
Atlantic Southeast Pilots | 1,800 | Air Line Pilots Association International | Amendable | |||||
Atlantic Southeast Flight Attendants | 1,075 | International Association of Machinists and Aerospace Workers | Amendable | |||||
Atlantic Southeast Flight Controllers | 60 | Transport Workers Union of America | Amendable | |||||
Atlantic Southeast Mechanics | 700 | International Brotherhood of Teamsters | Amendable | |||||
Atlantic Southeast Stock Clerks | 70 | International Brotherhood of Teamsters | Amendable | |||||
ExpressJet Delaware Pilots | 2,900 | Air Line Pilots Association International | Amendable | |||||
ExpressJet Delaware Flight Attendants | 1,200 | International Association of Machinists and Aerospace Workers | Amendable | |||||
ExpressJet Delaware Mechanics | 1,000 | International Brotherhood of Teamsters | Amendable | |||||
ExpressJet Delaware Dispatchers | 85 | Transport Workers Union of America | Amendable | |||||
ExpressJet Delaware Stock Clerks | 100 | International Brotherhood of Teamsters | Amendable |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Schedule of assets measured at fair value on a recurring basis | ' | |||||||||||||
Assets measured at fair value on a recurring basis are summarized below (in thousands): | ||||||||||||||
Fair Value Measurements as of December 31, | ||||||||||||||
2013 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Marketable Securities | ||||||||||||||
Bonds | $ | 487,049 | $ | — | $ | 487,049 | $ | — | ||||||
Asset backed securities | 190 | — | 190 | — | ||||||||||
| | | | | | | | | | | | | | |
487,239 | — | 487,239 | — | |||||||||||
Cash, Cash Equivalents and Restricted Cash | $ | 182,855 | 182,855 | — | — | |||||||||
Other Assets(a) | 2,245 | — | — | 2,245 | ||||||||||
| | | | | | | | | | | | | | |
Total Assets Measured at Fair Value | $ | 672,339 | $ | 182,855 | $ | 487,239 | $ | 2,245 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Fair Value Measurements as of December 31, | ||||||||||||||
2012 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Marketable Securities | ||||||||||||||
Bonds | $ | 552,289 | $ | — | $ | 552,289 | $ | — | ||||||
Commercial paper | 3,514 | — | 3,514 | — | ||||||||||
Asset backed securities | 314 | — | 314 | — | ||||||||||
| | | | | | | | | | | | | | |
556,117 | — | 556,117 | — | |||||||||||
Cash, Cash Equivalents and Restricted Cash | 153,325 | 153,325 | — | — | ||||||||||
Other Assets(a) | 3,844 | — | — | 3,844 | ||||||||||
| | | | | | | | | | | | | | |
Total Assets Measured at Fair Value | $ | 713,286 | $ | 153,325 | $ | 556,117 | $ | 3,844 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
(a) | ||||||||||||||
Auction rate securities included in "Other assets" in the Consolidated Balance Sheet | ||||||||||||||
Schedule of fair value measurements using significant unobservable inputs | ' | |||||||||||||
The following table presents the Company's assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at December 31, 2013 (in thousands): | ||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||
(Level 3) | ||||||||||||||
Auction Rate | ||||||||||||||
Securities | ||||||||||||||
Balance at January 1, 2013 | $ | 3,844 | ||||||||||||
Total realized and unrealized gains or (losses) | ||||||||||||||
Included in earnings | — | |||||||||||||
Included in other comprehensive income | (71 | ) | ||||||||||||
Transferred out | — | |||||||||||||
Settlements | (1,528 | ) | ||||||||||||
| | | | | ||||||||||
Balance at December 31, 2013 | $ | 2,245 | ||||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
Capital_Transactions_Tables
Capital Transactions (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Capital Transactions | ' | |||||||||||||||||||||||||
Schedule of assumptions used and weighted average fair value for grants | ' | |||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Expected annual dividend rate | 1.21 | % | 1.23 | % | 1.04 | % | ||||||||||||||||||||
Risk-free interest rate | 0.92 | % | 0.81 | % | 2.08 | % | ||||||||||||||||||||
Average expected life (years) | 6 | 5.6 | 5.8 | |||||||||||||||||||||||
Expected volatility of common stock | 0.446 | 0.409 | 0.404 | |||||||||||||||||||||||
Forfeiture rate | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||
Weighted average fair value of option grants | $ | 5.04 | $ | 4.43 | $ | 5.74 | ||||||||||||||||||||
Schedule of restricted stock activity | ' | |||||||||||||||||||||||||
Number of Shares | Weighted-Average | |||||||||||||||||||||||||
Grant-Date Fair | ||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||
Non-vested shares outstanding at December 31, 2010 | 659,263 | 18.97 | ||||||||||||||||||||||||
Granted | 249,502 | 15.51 | ||||||||||||||||||||||||
Vested | (238,848 | ) | 25.8 | |||||||||||||||||||||||
Cancelled | (58,315 | ) | 15.71 | |||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares outstanding at December 31, 2011 | 611,602 | 15.08 | ||||||||||||||||||||||||
Granted | 318,139 | 13.04 | ||||||||||||||||||||||||
Vested | (212,841 | ) | 14.95 | |||||||||||||||||||||||
Cancelled | (18,015 | ) | 14.2 | |||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares outstanding at December 31, 2012 | 698,885 | 14.21 | ||||||||||||||||||||||||
Granted | 312,104 | 13.41 | ||||||||||||||||||||||||
Vested | (231,465 | ) | 14.35 | |||||||||||||||||||||||
Cancelled | (45,933 | ) | 13.69 | |||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares outstanding at December 31, 2013 | 733,591 | 13.79 | ||||||||||||||||||||||||
Schedule of stock option activity | ' | |||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | Number of | Weighted | Number of | Weighted | |||||||||||||||||||
Options | Average | Average | Intrinsic | Options | Average | Options | Average | |||||||||||||||||||
Exercise | Remaining | Value | Exercise | Exercise | ||||||||||||||||||||||
Price | Contractual | $0 | Price | Price | ||||||||||||||||||||||
Term | ||||||||||||||||||||||||||
Outstanding at beginning of year | 3,653,859 | $ | 18.44 | 2.3 years | $ | — | 4,176,673 | $ | 19.26 | 4,586,979 | $ | 19.96 | ||||||||||||||
Granted | 173,560 | 13.24 | 200,115 | 13.06 | 327,617 | 15.45 | ||||||||||||||||||||
Exercised | (75,080 | ) | 10.91 | (179,204 | ) | 10.57 | (5,941 | ) | 10.57 | |||||||||||||||||
Cancelled | (344,764 | ) | 20.67 | (543,725 | ) | 25.35 | (731,982 | ) | 24.73 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Outstanding at end of year | 3,407,575 | 17.99 | 1.8 years | — | 3,653,859 | 18.44 | 4,176,673 | 19.26 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Exercisable at December 31, 2013 | 2,818,464 | 18.83 | 1.1 years | — | ||||||||||||||||||||||
Exercisable at December 31, 2012 | 3,031,825 | 19.28 | 1.8 years | — | ||||||||||||||||||||||
Schedule of non-vested stock options | ' | |||||||||||||||||||||||||
The following table summarizes the status of the Company's non-vested stock options as of December 31, 2013: | ||||||||||||||||||||||||||
Number of | Weighted-Average | |||||||||||||||||||||||||
Shares | Grant-Date | |||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Non-vested shares at beginning of year | 622,034 | $ | 4.99 | |||||||||||||||||||||||
Granted | 173,560 | 5.04 | ||||||||||||||||||||||||
Vested | (206,483 | ) | 4.78 | |||||||||||||||||||||||
Cancelled | — | — | ||||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares at end of year | 589,111 | 5.07 | ||||||||||||||||||||||||
Schedule of stock options outstanding | ' | |||||||||||||||||||||||||
The following table summarizes information about the Company's stock options outstanding at December 31, 2013: | ||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted Average | Weighted Average | Number | Weighted Average | |||||||||||||||||||||
Outstanding | Remaining | Exercise Price | Exercisable | Exercise Price | ||||||||||||||||||||||
Contractual Life | ||||||||||||||||||||||||||
$10 to $16 | 1,240,074 | 3.7 years | $ | 14.51 | 650,963 | $ | 15 | |||||||||||||||||||
$17 to $21 | 1,593,980 | 0.8 years | 17.72 | 1,593,980 | 17.72 | |||||||||||||||||||||
$22 to $28 | 573,521 | 0.6 years | 26.29 | 573,521 | 26.29 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | ||||||||||
$10 to $28 | 3,407,575 | 1.8 years | 17.99 | 2,818,464 | 18.83 |
Retirement_Plans_and_Employee_1
Retirement Plans and Employee Stock Purchase Plans (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Retirement Plans and Employee Stock Purchase Plans | ' | ||||||||||
Schedule of purchases made under the 2009 Employee Stock Purchase Plans | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Number of shares purchased | 299,786 | 487,451 | 300,177 | ||||||||
Average price of shares purchased | $ | 12.33 | $ | 8.35 | $ | 14.56 |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
Schedule of Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
Unaudited summarized financial data by quarter for 2013 and 2012 is as follows (in thousands, except per share data): | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Operating revenues | $ | 803,487 | $ | 839,130 | $ | 850,740 | $ | 804,368 | $ | 3,297,725 | |||||||
Operating income | 15,561 | 50,555 | 56,174 | 30,820 | 153,111 | ||||||||||||
Net income (loss) | 3,233 | 20,720 | 26,394 | 8,609 | 58,956 | ||||||||||||
Net income (loss) per common share: | |||||||||||||||||
Basic | 0.06 | 0.4 | 0.51 | 0.17 | 1.14 | ||||||||||||
Diluted | 0.06 | 0.39 | 0.5 | 0.17 | 1.12 | ||||||||||||
Weighted average common shares: | |||||||||||||||||
Basic: | 51,763 | 51,881 | 51,881 | 51,228 | 51,688 | ||||||||||||
Diluted: | 52,497 | 52,547 | 52,610 | 52,034 | 52,422 | ||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Operating revenues | $ | 921,173 | $ | 937,214 | $ | 865,259 | $ | 810,726 | $ | 3,534,372 | |||||||
Operating income | 20,457 | 46,806 | 54,974 | 43,750 | 165,987 | ||||||||||||
Net income (loss) | (682 | ) | 16,960 | 20,933 | 13,946 | 51,157 | |||||||||||
Net income (loss) per common share: | |||||||||||||||||
Basic | (0.01 | ) | 0.33 | 0.41 | 0.27 | 1 | |||||||||||
Diluted | (0.01 | ) | 0.33 | 0.4 | 0.27 | 0.99 | |||||||||||
Weighted average common shares: | |||||||||||||||||
Basic: | 50,881 | 50,944 | 51,241 | 51,296 | 51,090 | ||||||||||||
Diluted: | 50,881 | 51,789 | 52,153 | 52,161 | 51,746 |
Nature_of_Operations_and_Summa3
Nature of Operations and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
item | |
Nature of Operations and Summary of Significant Accounting Policies | ' |
Number of daily departures to different destinations | 4,000 |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 757 |
United | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 449 |
Percentage of aggregate capacity operated | 60.90% |
Delta | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 254 |
Percentage of aggregate capacity operated | 33.60% |
American | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 23 |
Percentage of aggregate capacity operated | 2.60% |
US Airways | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 15 |
Percentage of aggregate capacity operated | 1.60% |
Alaska | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 7 |
Percentage of aggregate capacity operated | 1.30% |
Subleased to an un-affiliated entity | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 2 |
Unassigned | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 7 |
CRJ 200 | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 260 |
CRJ 200 | United | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 92 |
CRJ 200 | Delta | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 125 |
CRJ 200 | American | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 23 |
CRJ 200 | US Airways | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 11 |
CRJ 200 | Subleased to an un-affiliated entity | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 2 |
CRJ 200 | Unassigned | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 7 |
ERJ145 | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 242 |
ERJ145 | United | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 242 |
ERJ135 | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 9 |
ERJ135 | United | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 9 |
CRJ700 | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 137 |
CRJ700 | United | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 70 |
CRJ700 | Delta | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 60 |
CRJ700 | Alaska | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 7 |
CRJ 900 | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 64 |
CRJ 900 | Delta | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 60 |
CRJ 900 | US Airways | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 4 |
EMB 120 | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 45 |
EMB 120 | United | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 36 |
EMB 120 | Delta | ' |
Agreements with other airlines | ' |
Number of aircrafts held by entity | 9 |
Nature_of_Operations_and_Summa4
Nature of Operations and Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash and Cash Equivalents | ' | ' |
Restricted cash | $12,219,000 | $19,553,000 |
Marketable Securities | ' | ' |
Cost | 489,253,000 | 559,409,000 |
Unrealized appreciation | 231,000 | 552,000 |
Total marketable securities | 489,484,000 | 559,961,000 |
Maturities of marketable securities | ' | ' |
Year 2014 | 304,353,000 | ' |
Years 2015 through 2018 | 182,873,000 | ' |
Thereafter | 2,258,000 | ' |
Marketable securities | 487,200,000 | ' |
Maximum period for redemption | '1 year | ' |
Investment as non-current | 2,200,000 | ' |
Commercial paper | ' | ' |
Marketable Securities | ' | ' |
Cost | ' | 3,510,000 |
Total marketable securities | ' | 3,514,000 |
Bond and bond funds | ' | ' |
Marketable Securities | ' | ' |
Cost | 489,071,000 | 555,603,000 |
Total marketable securities | 489,294,000 | 556,133,000 |
Asset backed securities | ' | ' |
Marketable Securities | ' | ' |
Cost | 182,000 | 296,000 |
Total marketable securities | $190,000 | $314,000 |
Nature_of_Operations_and_Summa5
Nature of Operations and Summary of Significant Accounting Policies (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Aircraft and rotable spares | Aircraft and rotable spares | Ground equipment | Ground equipment | Ground equipment | Office equipment | Office equipment | Office equipment | Leasehold improvements | Buildings | Buildings | Buildings | ||
Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | |||||||
Inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory allowance | $10.10 | $9.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciable Life | ' | ' | '18 years | '10 years | ' | '10 years | '5 years | ' | '7 years | '5 years | '15 years | ' | '39 years 6 months | '20 years |
Residual Value (as a percent) | ' | ' | 30.00% | 0.00% | 0.00% | ' | ' | 0.00% | ' | ' | 0.00% | 0.00% | ' | ' |
Nature_of_Operations_and_Summa6
Nature of Operations and Summary of Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 07, 2005 | Dec. 31, 2013 | Dec. 31, 2012 | |
Atlantic Southeast Airlines,Inc. | Atlantic Southeast Airlines,Inc. | Atlantic Southeast Airlines,Inc. | ||||
Impairment of Long Lived and Intangible Assets | ' | ' | ' | ' | ' | ' |
Property and equipment and related assets | $2,651,793,000 | $2,710,996,000 | ' | ' | ' | ' |
Intangible assets | 14,998,000 | 17,248,000 | 19,497,000 | ' | ' | ' |
Intangible assets related to acquisition of Atlantic Southeast | ' | ' | ' | 33,700,000 | ' | ' |
Period for amortization of intangible assets | ' | ' | ' | '15 years | ' | ' |
Accumulated amortization expense | ' | ' | ' | ' | 18,700,000 | 16,500,000 |
Capitalized Interest | ' | ' | ' | ' | ' | ' |
Capitalized interest costs | $1,200,000 | $0 | $0 | ' | ' | ' |
Nature_of_Operations_and_Summa7
Nature of Operations and Summary of Significant Accounting Policies (Details 5) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
segment | |||||||||||
Other Revenue Items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deemed rental income under code-share agreement | ' | ' | ' | ' | ' | ' | ' | ' | $500,200,000 | $506,700,000 | $521,300,000 |
Net Income (loss) Per Common Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of outstanding options not included in computation of Diluted EPS (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 3,072,000 | 3,889,000 | 4,323,000 |
Numerator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 8,609,000 | 26,394,000 | 20,720,000 | 3,233,000 | 13,946,000 | 20,933,000 | 16,960,000 | -682,000 | 58,956,000 | 51,157,000 | -27,335,000 |
Denominator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Denominator for basic earnings per-share weighted average shares | 51,228,000 | 51,881,000 | 51,881,000 | 51,763,000 | 51,296,000 | 51,241,000 | 50,944,000 | 50,881,000 | 51,688,000 | 51,090,000 | 52,201,000 |
Dilution due to stock options and restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 734,000 | 656,000 | ' |
Denominator for diluted earnings per-share weighted average shares | 52,034,000 | 52,610,000 | 52,547,000 | 52,497,000 | 52,161,000 | 52,153,000 | 51,789,000 | 50,881,000 | 52,422,000 | 51,746,000 | 52,201,000 |
Basic earnings (loss) per share (in dollars per share) | $0.17 | $0.51 | $0.40 | $0.06 | $0.27 | $0.41 | $0.33 | ($0.01) | $1.14 | $1 | ($0.52) |
Diluted earnings (loss) per share (in dollars per share) | $0.17 | $0.50 | $0.39 | $0.06 | $0.27 | $0.40 | $0.33 | ($0.01) | $1.12 | $0.99 | ($0.52) |
COMPREHENSIVE INCOME (LOSS): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss) | 8,609,000 | 26,394,000 | 20,720,000 | 3,233,000 | 13,946,000 | 20,933,000 | 16,960,000 | -682,000 | 58,956,000 | 51,157,000 | -27,335,000 |
Proportionate share of other companies foreign currency translation adjustment, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 66,000 | -251,000 | -295,000 |
Unrealized appreciation (depreciation) on marketable securities, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -13,000 | 316,000 | 534,000 |
TOTAL COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' | ' | ' | ' | ' | 59,009,000 | 51,222,000 | -27,096,000 |
Fair Value of Financial Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of long-term debt | 1,509,200,000 | ' | ' | ' | 1,744,200,000 | ' | ' | ' | 1,509,200,000 | 1,744,200,000 | ' |
Carrying amount of long-term debt | $1,470,568,000 | ' | ' | ' | $1,642,022,000 | ' | ' | ' | $1,470,568,000 | $1,642,022,000 | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating segments number | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Number of operating subsidiaries representing operating segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Delta Connection Agreements | ExpressJet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of agreement | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 4 months 24 days | ' | ' |
Delta Connection Agreements | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of agreement | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 9 months 18 days | ' | ' |
Delta Connection Agreements | CRJ 200 | ExpressJet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 76 | ' | ' |
Delta Connection Agreements | CRJ 200 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 41 | ' | ' |
Delta Connection Agreements | CRJ700 | ExpressJet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 41 | ' | ' |
Delta Connection Agreements | CRJ700 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 19 | ' | ' |
Delta Connection Agreements | CRJ 900 | ExpressJet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 28 | ' | ' |
Delta Connection Agreements | CRJ 900 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 32 | ' | ' |
United Express Agreements | ExpressJet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of agreement | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 3 months 18 days | ' | ' |
United Express Agreements | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of agreement | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 9 months 18 days | ' | ' |
United Express Agreements | CRJ 200 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 61 | ' | ' |
United Express Agreements | CRJ 200 | Atlantic Southeast Airlines,Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' |
United Express Agreements | CRJ700 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 70 | ' | ' |
United Express Agreements | EMB 120 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' |
United Express Agreements | EMB 145 | ExpressJet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 22 | ' | ' |
United Express Agreements | EMB 135 | ExpressJet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' |
United Express Agreements | EMB 145 one | ExpressJet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 220 | ' | ' |
Prorate Agreement | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notice period for termination of agreement | ' | ' | ' | ' | ' | ' | ' | ' | '120 days | ' | ' |
Prorate Agreement | CRJ 200 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' |
Prorate Agreement | EMB 120 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' |
United Express Prorate Agreement | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notice period for termination of agreement | ' | ' | ' | ' | ' | ' | ' | ' | '120 days | ' | ' |
United Express Prorate Agreement | CRJ 200 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' |
United Express Prorate Agreement | EMB 120 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 27 | ' | ' |
Alaska Capacity Purchase Agreement | CRJ700 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' |
US Airways Express Agreement | CRJ 200 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' |
US Airways Express Agreement | CRJ 900 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
US Airways Express Prorate Agreement | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notice period for termination of agreement | ' | ' | ' | ' | ' | ' | ' | ' | '120 days | ' | ' |
US Airways Express Prorate Agreement | CRJ 200 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
American Capacity Purchase Agreement | CRJ 200 | ExpressJet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' |
American Capacity Purchase Agreement | CRJ 200 | SkyWest Airlines, Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements with other airlines | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft under contract | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
segment | |||||||||||
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating segments number | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Number of operating subsidiaries representing operating segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | $804,368 | $850,740 | $839,130 | $803,487 | $810,726 | $865,259 | $937,214 | $921,173 | $3,297,725 | $3,534,372 | $3,654,923 |
Operating expense | ' | ' | ' | ' | ' | ' | ' | ' | 3,144,614 | 3,368,385 | 3,613,818 |
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 245,005 | 251,958 | 254,182 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 68,658 | 77,380 | 80,383 |
Segment profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 84,453 | 88,607 | -39,278 |
Identifiable intangible assets, other than goodwill | 14,998 | ' | ' | ' | 17,248 | ' | ' | ' | 14,998 | 17,248 | 19,497 |
Total assets | 4,233,219 | ' | ' | ' | 4,254,637 | ' | ' | ' | 4,233,219 | 4,254,637 | 4,281,908 |
Capital expenditures (including non - cash) | ' | ' | ' | ' | ' | ' | ' | ' | 142,044 | 94,840 | 199,756 |
SkyWest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,827,568 | 1,930,149 | 2,002,830 |
Operating expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,644,129 | 1,774,876 | 1,893,909 |
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 155,667 | 153,915 | 147,520 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 43,920 | 49,208 | 50,907 |
Segment profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 139,519 | 106,065 | 58,014 |
Total assets | 2,532,431 | ' | ' | ' | 2,633,369 | ' | ' | ' | 2,532,431 | 2,633,369 | 2,595,901 |
Capital expenditures (including non - cash) | ' | ' | ' | ' | ' | ' | ' | ' | 103,387 | 74,636 | 166,998 |
ExpressJet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,466,341 | 1,593,527 | 1,640,837 |
Operating expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,494,302 | 1,588,400 | 1,714,481 |
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 89,338 | 98,043 | 106,662 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 21,034 | 23,582 | 25,142 |
Segment profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -48,995 | -18,455 | -98,786 |
Identifiable intangible assets, other than goodwill | 14,998 | ' | ' | ' | 17,248 | ' | ' | ' | 14,998 | 17,248 | 19,497 |
Total assets | 1,700,788 | ' | ' | ' | 1,621,268 | ' | ' | ' | 1,700,788 | 1,621,268 | 1,686,007 |
Capital expenditures (including non - cash) | ' | ' | ' | ' | ' | ' | ' | ' | 38,657 | 20,204 | 32,758 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3,816 | 10,696 | 11,256 |
Operating expense | ' | ' | ' | ' | ' | ' | ' | ' | 6,183 | 5,109 | 5,428 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 3,704 | 4,590 | 4,334 |
Segment profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($6,071) | $997 | $1,494 |
Longterm_Debt_Details
Long-term Debt (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Long-term Debt | ' | ' |
Long-term debt | $1,470,568,000 | $1,642,022,000 |
Less current maturities | -177,389,000 | -171,454,000 |
Long-term debt, net of current maturities | 1,293,179,000 | 1,470,568,000 |
Aggregate amounts of principal maturities of long-term debt | ' | ' |
2014 | 177,389,000 | ' |
2015 | 184,510,000 | ' |
2016 | 188,240,000 | ' |
2017 | 161,735,000 | ' |
2018 | 139,020,000 | ' |
Thereafter | 619,674,000 | ' |
Total | 1,470,568,000 | 1,642,022,000 |
Letters of credit and surety bonds outstanding with various banks and surety institutions | 88,500,000 | ' |
CRJ | ' | ' |
Long-term Debt | ' | ' |
Long-term debt | 1,500,000,000 | ' |
Effective interest rate (as a percent) | 4.50% | ' |
Aggregate amounts of principal maturities of long-term debt | ' | ' |
Total | 1,500,000,000 | ' |
Notes payable to banks, due in semi-annual installments through 2014 to 2020 | ' | ' |
Long-term Debt | ' | ' |
Interest rate, minimum (as a percent) | 1.34% | ' |
Interest rate, maximum (as a percent) | 2.55% | ' |
Long-term debt | 224,915,000 | 273,515,000 |
Variable interest rate, basis | 'LIBOR | ' |
Aggregate amounts of principal maturities of long-term debt | ' | ' |
Total | 224,915,000 | 273,515,000 |
Notes payable to a financing company, due in semi-annual installments through 2014 to 2021 | ' | ' |
Long-term Debt | ' | ' |
Interest rate, minimum (as a percent) | 0.70% | ' |
Interest rate, maximum (as a percent) | 2.36% | ' |
Long-term debt | 392,660,000 | 434,716,000 |
Variable interest rate, basis | 'LIBOR | ' |
Aggregate amounts of principal maturities of long-term debt | ' | ' |
Total | 392,660,000 | 434,716,000 |
Notes payable to banks, due in semi-annual installments through 2021 | ' | ' |
Long-term Debt | ' | ' |
Interest rate, minimum (as a percent) | 6.06% | ' |
Interest rate, maximum (as a percent) | 7.18% | ' |
Long-term debt | 149,477,000 | 168,937,000 |
Aggregate amounts of principal maturities of long-term debt | ' | ' |
Total | 149,477,000 | 168,937,000 |
Notes payable to a financing company, due in semi-annual installments through 2019 | ' | ' |
Long-term Debt | ' | ' |
Interest rate, minimum (as a percent) | 5.78% | ' |
Interest rate, maximum (as a percent) | 6.23% | ' |
Long-term debt | 32,528,000 | 39,548,000 |
Aggregate amounts of principal maturities of long-term debt | ' | ' |
Total | 32,528,000 | 39,548,000 |
Notes payable to banks, due in monthly installments through 2025 | ' | ' |
Long-term Debt | ' | ' |
Interest rate, minimum (as a percent) | 3.15% | ' |
Interest rate, maximum (as a percent) | 8.18% | ' |
Long-term debt | 623,315,000 | 665,867,000 |
Aggregate amounts of principal maturities of long-term debt | ' | ' |
Total | 623,315,000 | 665,867,000 |
Notes payable to banks, due in semi-annual installments through 2020 | ' | ' |
Long-term Debt | ' | ' |
Interest rate (as a percent) | 6.05% | ' |
Long-term debt | 15,740,000 | 17,872,000 |
Aggregate amounts of principal maturities of long-term debt | ' | ' |
Total | 15,740,000 | 17,872,000 |
Notes payable to a bank, due in monthly installments through 2016 | ' | ' |
Long-term Debt | ' | ' |
Interest rate, minimum (as a percent) | 2.00% | ' |
Interest rate, maximum (as a percent) | 4.00% | ' |
Long-term debt | 31,933,000 | 41,567,000 |
Variable interest rate, basis | 'LIBOR | ' |
Aggregate amounts of principal maturities of long-term debt | ' | ' |
Total | 31,933,000 | 41,567,000 |
Line of credit | SkyWest Airlines | ' | ' |
Long-term Debt | ' | ' |
Interest rate (as a percent) | 3.00% | ' |
Variable interest rate, basis | 'Libor | ' |
Aggregate amounts of principal maturities of long-term debt | ' | ' |
Maximum borrowing capacity | 25,000,000 | 25,000,000 |
Amount outstanding | $0 | $0 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current tax provision (benefit): | ' | ' | ' |
Federal | $1,767 | ' | ' |
State | 343 | 441 | 396 |
Total current payable | 2,110 | 441 | 396 |
Deferred tax provision (benefit): | ' | ' | ' |
Federal | 34,728 | 31,791 | -21,533 |
State | 2,738 | 2,507 | -1,698 |
Total deferred payable | 37,466 | 34,298 | -23,231 |
Provision (benefit) for income taxes | $39,576 | $34,739 | ($22,835) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes | ' | ' | ' |
Statutory Federal income tax rate (as a percent) | 35.00% | ' | ' |
Reconciliation between the statutory Federal income tax rate of 35% and the effective rate which is derived by dividing the provision (benefit) for income taxes by income (loss) before provision for income taxes | ' | ' | ' |
Computed ''expected'' provision (benefit) for income taxes at the statutory rates adjusted for permanent differences | $37,743 | $32,983 | ($14,683) |
Purchase accounting (gain) adjustment | ' | ' | 1,999 |
State income tax provision (benefit), net of Federal income tax benefit | 2,867 | 2,220 | -1,810 |
Valuation allowance changes affecting the provision for income taxes | 1,430 | 1,614 | ' |
Other, net | -2,464 | -2,078 | -8,341 |
Provision (benefit) for income taxes | 39,576 | 34,739 | -22,835 |
Deferred tax assets: | ' | ' | ' |
Intangible Asset | 36,164 | 37,031 | ' |
Accrued benefits | 40,850 | 40,469 | ' |
Net operating loss carryforward | 85,885 | 118,448 | ' |
AMT credit carryforward | 17,649 | 15,882 | ' |
Deferred aircraft credits | 44,350 | 48,124 | ' |
Accrued reserves and other | 30,987 | 31,846 | ' |
Total deferred tax assets | 255,885 | 291,800 | ' |
Valuation allowance | -3,044 | -1,614 | ' |
Deferred tax liabilities: | ' | ' | ' |
Accelerated depreciation | -824,149 | -823,487 | ' |
Total deferred tax liabilities | -824,149 | -823,487 | ' |
Net deferred tax liability | ($571,308) | ($533,301) | ' |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Net operating losses | ' | ' |
Alternative minimum tax credit without expiration | $17,649,000 | $15,882,000 |
Valuation allowance on acquired non-amortizable intangible tax assets and other tax assets | 3,044,000 | 1,614,000 |
ExpressJet | ' | ' |
Net operating losses | ' | ' |
Valuation allowance on acquired non-amortizable intangible tax assets and other tax assets | 69,800,000 | 73,000,000 |
Deferred tax assets for net operating losses in states with short carry-forward periods | 1,000,000 | ' |
Federal | ' | ' |
Net operating losses | ' | ' |
Operating loss carryforward | 191,500,000 | ' |
State | ' | ' |
Net operating losses | ' | ' |
Operating loss carryforward | $651,200,000 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
aircraft | |||
Commitments and Contingencies | ' | ' | ' |
Number of aircraft leased by the entity | 570 | ' | ' |
Future minimum rental payments required under operating leases | ' | ' | ' |
2014 | $380,413,000 | ' | ' |
2015 | 331,151,000 | ' | ' |
2016 | 258,464,000 | ' | ' |
2017 | 194,258,000 | ' | ' |
2018 | 153,294,000 | ' | ' |
Thereafter | 571,783,000 | ' | ' |
Total | 1,889,363,000 | ' | ' |
Rental expense for non-cancelable aircraft operating leases | 325,360,000 | 333,637,000 | 346,526,000 |
Minimum rental expense for airport station rents | $35,100,000 | $43,500,000 | $42,600,000 |
Leveraged lease agreements term, maximum | '12 years | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (SkyWest Airlines and ExpressJet v. Delta, USD $) | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2010 |
SkyWest Airlines and ExpressJet v. Delta | ' | ' | ' |
Legal Matters | ' | ' | ' |
Amount of receivables withheld from weekly scheduled wire payments to SkyWest Airlines and Atlantic Southeast | $25 | ' | ' |
Withheld receivables recognized as revenue by the entity | ' | 31.7 | ' |
Amount that the settlement offered by the reporting entity was less than the cumulative amount of withheld receivables recognized as revenue by the reporting entity | ' | ' | 5.9 |
Receivables written off by the entity | ' | 5.9 | ' |
Minimum amount of possible damages | ' | 0 | ' |
Reasonably possible loss related to dispute, maximum | ' | $25.80 | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments and Contingencies | ' | ' | ' |
Allowance for doubtful accounts | 94,000 | 94,000 | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Number of full-time equivalent employees | 18,358 | ' | ' |
Atlantic southeast pilots and expressjet delaware pilots | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Number of employee group for joint bargaining agreement | 2 | ' | ' |
Total revenues | Significant Customers | Delta, United, and Continental Combined | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Concentration risk (as a percent) | 91.60% | 94.80% | 97.60% |
Full-time equivalent employees | Employees represented by unions | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Concentration risk (as a percent) | 49.00% | ' | ' |
Full-time equivalent employees | Employees represented by unions | Atlantic Southeast Pilots | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Approximate Number of Active Employees | 1,800 | ' | ' |
Full-time equivalent employees | Employees represented by unions | Atlantic Southeast Flight Attendants | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Approximate Number of Active Employees | 1,075 | ' | ' |
Full-time equivalent employees | Employees represented by unions | Atlantic Southeast Flight Controllers | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Approximate Number of Active Employees | 60 | ' | ' |
Full-time equivalent employees | Employees represented by unions | Atlantic Southeast Mechanics | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Approximate Number of Active Employees | 700 | ' | ' |
Full-time equivalent employees | Employees represented by unions | Atlantic Southeast Stock Clerks | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Approximate Number of Active Employees | 70 | ' | ' |
Full-time equivalent employees | Employees represented by unions | ExpressJet Delaware Pilots | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Approximate Number of Active Employees | 2,900 | ' | ' |
Full-time equivalent employees | Employees represented by unions | ExpressJet Delaware Flight Attendants | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Approximate Number of Active Employees | 1,200 | ' | ' |
Full-time equivalent employees | Employees represented by unions | ExpressJet Delaware Mechanics | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Approximate Number of Active Employees | 1,000 | ' | ' |
Full-time equivalent employees | Employees represented by unions | ExpressJet Delaware Dispatchers | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Approximate Number of Active Employees | 85 | ' | ' |
Full-time equivalent employees | Employees represented by unions | ExpressJet Delaware Stock Clerks | ' | ' | ' |
Concentration Risk and Significant Customers | ' | ' | ' |
Approximate Number of Active Employees | 100 | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Auction rate securities | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | ||
Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | ||||
Bonds | Bonds | Commercial paper | Asset backed securities | Asset backed securities | Bonds | Bonds | Commercial paper | Asset backed securities | Asset backed securities | ||||||||||||
Fair Value Measurements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable securities | $487,239 | $556,117 | ' | $487,239 | $556,117 | $487,049 | $552,289 | $3,514 | $190 | $314 | ' | ' | $487,239 | $556,117 | $487,049 | $552,289 | $3,514 | $190 | $314 | ' | ' |
Cash, Cash Equivalents and Restricted Cash | ' | ' | ' | 182,855 | 153,325 | ' | ' | ' | ' | ' | 182,855 | 153,325 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Assets | ' | ' | ' | 2,245 | 3,844 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,245 | 3,844 |
Total Assets Measured at Fair Value | ' | ' | ' | 672,339 | 713,286 | ' | ' | ' | ' | ' | 182,855 | 153,325 | 487,239 | 556,117 | ' | ' | ' | ' | ' | 2,245 | 3,844 |
Changes in assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 3,844 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total realized and unrealized gains or (losses) Included in other comprehensive income | ' | ' | -71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlements | ' | ' | -1,528 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | ' | ' | $2,245 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment_in_Other_Companies_
Investment in Other Companies (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jul. 12, 2012 | Sep. 30, 2008 | Dec. 31, 2013 | Jul. 12, 2012 | Jul. 12, 2012 | Sep. 29, 2010 | Sep. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2011 | |
TRIP | TRIP | TRIP | Trip Investimentos Ltda. | Trip Investimentos Ltda. | Trip Investimentos Ltda. | Air Mekong | Air Mekong | Air Mekong | Air Mekong | |||
Sale of interest | Common stock | item | Sale of interest | Sale of interest | ||||||||
item | Minimum | Maximum | ||||||||||
Investment in other companies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage ownership acquired | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | 30.00% | ' | ' |
Company's investment balance | ' | ' | $19,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual rate of return used to calculate the put option price (as a percent) | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of equity method investment | 16,658,000 | 8,064,000 | ' | 42,000,000 | ' | 26,200,000 | ' | ' | ' | ' | ' | ' |
Number of installments | ' | ' | ' | 3 | ' | 3 | ' | ' | ' | ' | ' | ' |
Period of payment under the purchase agreement | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Option to acquire ownership (as a percent) | ' | ' | ' | 15.38% | ' | 15.38% | ' | ' | ' | ' | ' | ' |
Option exercise period | ' | ' | ' | ' | ' | ' | '2 years | '4 years | ' | ' | ' | ' |
Number of installment payments received | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Third installment of equity interest sold | ' | ' | ' | ' | ' | 16,800,000 | ' | ' | ' | ' | ' | ' |
Payments to acquire equity method investment | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | 3,000,000 |
Gain on sale of cost method investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' |
Other income recognized on termination of sub-lease with Air Mekong | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,100,000 | ' |
Capital_Transactions_Details
Capital Transactions (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 4-May-10 | 4-May-10 | Dec. 31, 2013 | Dec. 31, 2013 | |
Stock options and restricted stock | Stock options | Stock options | Stock options | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Executive Plan, All share Plan and 2006 Incentive Plan | Executive Plan, All share Plan and 2006 Incentive Plan | 2010 Incentive Plan | 2010 Incentive Plan | 2010 Incentive Plan | 2010 Incentive Plan | ||||
Directors | item | Stock options | Stock options | Stock options | Restricted Stock | ||||||||||||
Capital Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation expense | $4,363,000 | $4,693,000 | $5,365,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock outstanding (in shares) | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,150,000 | ' | ' | ' |
Minimum incentive stock option exercise price, expressed as a percentage of common stock grant date market value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Number of stock option plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Options outstanding (in shares) | ' | ' | ' | ' | 3,407,575 | 3,653,859 | 4,176,673 | ' | ' | ' | ' | ' | 2,613,415 | ' | ' | ' | ' |
Additional shares of common stock available for issuance | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumptions used to determine value of the shares purchased under the stock purchase plan using Black-Scholes option pricing model | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected annual dividend rate (as a percent) | ' | ' | ' | ' | 1.21% | 1.23% | 1.04% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | ' | ' | 0.92% | 0.81% | 2.08% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average expected life (in years) | ' | ' | ' | ' | '6 years | '5 years 7 months 6 days | '5 years 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility of common stock (as a percent) | ' | ' | ' | ' | 44.60% | 40.90% | 40.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeiture rate (as a percent) | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | $5.04 | $4.43 | $5.74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | 312,104 | 318,139 | 249,502 | 29,453 | ' | ' | ' | ' | ' | 282,651 |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years |
Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested shares at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | 698,885 | 611,602 | 659,263 | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | 312,104 | 318,139 | 249,502 | 29,453 | ' | ' | ' | ' | ' | 282,651 |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | -231,465 | -212,841 | -238,848 | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in shares) | ' | ' | ' | ' | ' | ' | ' | -45,933 | -18,015 | -58,315 | ' | ' | ' | ' | ' | ' | ' |
Nonvested shares at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | 733,591 | 698,885 | 611,602 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant-Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested shares at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $14.21 | $15.08 | $18.97 | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $13.41 | $13.04 | $15.51 | $13.41 | ' | ' | ' | ' | ' | $13.24 |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $14.35 | $14.95 | $25.80 | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $13.69 | $14.20 | $15.71 | ' | ' | ' | ' | ' | ' | ' |
Nonvested shares at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $13.79 | $14.21 | $15.08 | ' | ' | ' | ' | ' | ' | ' |
Compensation expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | ' | ' | ' | 4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost recognized over a weighted average period (in years) | ' | ' | ' | '1 year 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period from grant date after which stock options become exercisable, minimum (in months) | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period from grant date within which incentive stock options are exercisable, maximum (in years) | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | 3,653,859 | 4,176,673 | 4,586,979 | ' | ' | ' | ' | ' | 2,613,415 | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | 173,560 | 200,115 | 327,617 | ' | ' | ' | ' | ' | ' | ' | ' | 173,560 | ' |
Exercised (in shares) | ' | ' | ' | ' | -75,080 | -179,204 | -5,941 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in shares) | ' | ' | ' | ' | -344,764 | -543,725 | -731,982 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | ' | ' | ' | ' | 3,407,575 | 3,653,859 | 4,176,673 | ' | ' | ' | ' | ' | 2,613,415 | ' | ' | ' | ' |
Exercisable (in shares) | ' | ' | ' | ' | 2,818,464 | 3,031,825 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | $18.44 | $19.26 | $19.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | $13.24 | $13.06 | $15.45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | $10.91 | $10.57 | $10.57 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in dollars per share) | ' | ' | ' | ' | $20.67 | $25.35 | $24.73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | ' | ' | ' | $17.99 | $18.44 | $19.26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable (in dollars per share) | ' | ' | ' | ' | $18.83 | $19.28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, Weighted Average Remaining Contractual Term (in years) | ' | ' | ' | ' | '1 year 9 months 18 days | '2 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, Weighted Average Remaining Contractual Term (in years) | ' | ' | ' | ' | '1 year 1 month 6 days | '1 year 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | ' | ' | ' | $172,000 | $191,000 | $31,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested shares at beginning of year (in shares) | ' | ' | ' | ' | 622,034 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | 173,560 | 200,115 | 327,617 | ' | ' | ' | ' | ' | ' | ' | ' | 173,560 | ' |
Vested (in shares) | ' | ' | ' | ' | -206,483 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested shares at end of year (in shares) | ' | ' | ' | ' | 589,111 | 622,034 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant-Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested shares at beginning of year (in dollars per share) | ' | ' | ' | ' | $4.99 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | $5.04 | $4.43 | $5.74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in dollars per share) | ' | ' | ' | ' | $4.78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested shares at end of year (in dollars per share) | ' | ' | ' | ' | $5.07 | $4.99 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital_Transactions_Details_2
Capital Transactions (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
$10 to $16 | ' |
Stock options, exercise price | ' |
Exercise price range, low end of range (in dollars per share) | $10 |
Exercise price range, high end of range (in dollars per share) | $16 |
Options Outstanding | ' |
Number of options outstanding (in shares) | 1,240,074 |
Options outstanding, Weighted Average Remaining Contractual Life | '3 years 8 months 12 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $14.51 |
Options Exercisable | ' |
Number of options Exercisable (in shares) | 650,963 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $15 |
$17 to $21 | ' |
Stock options, exercise price | ' |
Exercise price range, low end of range (in dollars per share) | $17 |
Exercise price range, high end of range (in dollars per share) | $21 |
Options Outstanding | ' |
Number of options outstanding (in shares) | 1,593,980 |
Options outstanding, Weighted Average Remaining Contractual Life | '9 months 18 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $17.72 |
Options Exercisable | ' |
Number of options Exercisable (in shares) | 1,593,980 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $17.72 |
$22 to $28 | ' |
Stock options, exercise price | ' |
Exercise price range, low end of range (in dollars per share) | $22 |
Exercise price range, high end of range (in dollars per share) | $28 |
Options Outstanding | ' |
Number of options outstanding (in shares) | 573,521 |
Options outstanding, Weighted Average Remaining Contractual Life | '7 months 6 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $26.29 |
Options Exercisable | ' |
Number of options Exercisable (in shares) | 573,521 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $26.29 |
$10 to $28 | ' |
Stock options, exercise price | ' |
Exercise price range, low end of range (in dollars per share) | $10 |
Exercise price range, high end of range (in dollars per share) | $28 |
Options Outstanding | ' |
Number of options outstanding (in shares) | 3,407,575 |
Options outstanding, Weighted Average Remaining Contractual Life | '1 year 9 months 18 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $17.99 |
Options Exercisable | ' |
Number of options Exercisable (in shares) | 2,818,464 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $18.83 |
Retirement_Plans_and_Employee_2
Retirement Plans and Employee Stock Purchase Plans (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2007 | Nov. 30, 2007 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Minimum | Maximum | SkyWest Plan | SkyWest Plan | SkyWest Plan | Atlantic Southeast and the ExpressJet Plans | Atlantic Southeast and the ExpressJet Plans | Atlantic Southeast and the ExpressJet Plans | Atlantic Southeast Plan | Atlantic Southeast Plan | Atlantic Southeast Plan | ||||
Minimum | Maximum | |||||||||||||
Retirement Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service period required to be completed to be eligible to participate in plan | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | '90 days | ' | ' |
Required age for an employee to be eligible to participate in plan | ' | ' | ' | ' | ' | '18 years | ' | ' | ' | ' | ' | '18 years | ' | ' |
Percentage of employer matching contribution based on length of service | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | 20.00% | 75.00% |
Percentage of participant's compensation eligible for employer's matching contribution based upon length of service, threshold one | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of participant's compensation eligible for employer's matching contribution based upon length of service, threshold two | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of participant compensation eligible for employer's matching contribution based upon length of service, threshold three | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Company's combined contributions | ' | ' | ' | ' | ' | $18.30 | $16 | $14.40 | $26.70 | $26.40 | $25.10 | ' | ' | ' |
Maximum percentage of participant's total compensation eligible for employer matching contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' |
Minimum service period required to be completed for eight percent matching contribution by the employer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Maximum percentage of participant's total compensation eligible for employer matching contribution after requisite service period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' |
Percentage of vesting for plan participants' elective deferrals and rollover amounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Percentage of vesting of company matching contribution based on length of service | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 100.00% |
ExpressJet Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Eligible age to provide medical bridge coverage | ' | ' | ' | '60 years | '65 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum period of service required to be completed by retired employees for availing medical bridge coverage | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mandatory retirement age for commercial pilots | '65 years | '60 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement_Plans_and_Employee_3
Retirement Plans and Employee Stock Purchase Plans (Details 2) (2009 Stock Purchase Plan, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
2009 Stock Purchase Plan | ' | ' | ' |
Employee Stock Purchase Plans | ' | ' | ' |
Service period required to be completed for an employee to be eligible to participate in plan, minimum | '90 days | ' | ' |
Ownership interest in Company common stock to disqualify employee from participation in plan, maximum (as a percent) | 5.00% | ' | ' |
Maximum percentage of base salary which can be contributed by the employees | 15.00% | ' | ' |
Maximum amount of base salary which can be contributed annually by the employees | $21,250 | ' | ' |
Discount rate at which common stock can be purchased by the plan participant (as a percent) | 5.00% | ' | ' |
Summary of purchases made under the 2010 and 1995 Employee Stock Purchase Plans | ' | ' | ' |
Number of shares purchased | 299,786 | 487,451 | 300,177 |
Average price of shares purchased (in dollars per share) | $12.33 | $8.35 | $14.56 |
Stock_Repurchase_Details
Stock Repurchase (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 14, 2012 |
Stock Repurchase | ' | ' | ' |
Common stock authorized for repurchase, maximum (in shares) | 25,000,000 | ' | 6,514,266 |
Common stock repurchased (in shares) | 800,000 | 100,000 | ' |
Common stock repurchased, value | $11.70 | $0.90 | ' |
Weighted average price per share of common stock (in dollars per share) | $14.40 | $15.32 | ' |
RelatedParty_Transactions_Deta
Related-Party Transactions (Details) (Zions Bancorporation, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
item | item | |
Related Party Transactions | ' | ' |
Cash balance with related party | 81.8 | 56.4 |
Minimum | ' | ' |
Related Party Transactions | ' | ' |
Refinancing term | ' | '3 years |
Maximum | ' | ' |
Related Party Transactions | ' | ' |
Refinancing term | ' | '4 years |
CRJ 200 | ' | ' |
Related Party Transactions | ' | ' |
Equity participation in leveraged leases on number of aircraft | 3 | ' |
Number of refinanced aircraft | ' | 6 |
CRJ700 | ' | ' |
Related Party Transactions | ' | ' |
Equity participation in leveraged leases on number of aircraft | 2 | ' |
Number of refinanced aircraft | ' | 2 |
Brasilia turboprop aircraft | ' | ' |
Related Party Transactions | ' | ' |
Equity participation in leveraged leases on number of aircraft | 5 | ' |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Data (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | $804,368 | $850,740 | $839,130 | $803,487 | $810,726 | $865,259 | $937,214 | $921,173 | $3,297,725 | $3,534,372 | $3,654,923 |
Operating income | 30,820 | 56,174 | 50,555 | 15,561 | 43,750 | 54,974 | 46,806 | 20,457 | 153,111 | 165,987 | 41,105 |
Net income (loss) | $8,609 | $26,394 | $20,720 | $3,233 | $13,946 | $20,933 | $16,960 | ($682) | $58,956 | $51,157 | ($27,335) |
Net income (loss) per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.17 | $0.51 | $0.40 | $0.06 | $0.27 | $0.41 | $0.33 | ($0.01) | $1.14 | $1 | ($0.52) |
Diluted (in dollars per share) | $0.17 | $0.50 | $0.39 | $0.06 | $0.27 | $0.40 | $0.33 | ($0.01) | $1.12 | $0.99 | ($0.52) |
Weighted average common shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | 51,228 | 51,881 | 51,881 | 51,763 | 51,296 | 51,241 | 50,944 | 50,881 | 51,688 | 51,090 | 52,201 |
Diluted (in shares) | 52,034 | 52,610 | 52,547 | 52,497 | 52,161 | 52,153 | 51,789 | 50,881 | 52,422 | 51,746 | 52,201 |
SCHEDULE_IIVALUATION_AND_QUALI1
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
VALUATION AND QUALIFYING ACCOUNTS | ' | ' | ' |
Balance at Beginning of Year | $9,283 | $8,488 | $7,588 |
Additions Charged to Costs and Expenses | 949 | 941 | 900 |
Deductions | ' | -146 | ' |
Balance at End of Year | 10,232 | 9,283 | 8,488 |
Allowance for inventory obsolescence | ' | ' | ' |
VALUATION AND QUALIFYING ACCOUNTS | ' | ' | ' |
Balance at Beginning of Year | 9,189 | 8,248 | 7,541 |
Additions Charged to Costs and Expenses | 949 | 941 | 707 |
Balance at End of Year | 10,138 | 9,189 | 8,248 |
Allowance for doubtful accounts receivable | ' | ' | ' |
VALUATION AND QUALIFYING ACCOUNTS | ' | ' | ' |
Balance at Beginning of Year | ' | 240 | 47 |
Additions Charged to Costs and Expenses | ' | ' | 193 |
Deductions | ' | -146 | ' |
Balance at End of Year | $94 | $94 | $240 |