Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 09, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 0-14719 | ||
Entity Registrant Name | SKYWEST INC | ||
Entity Incorporation, State or Country Code | UT | ||
Entity Tax Identification Number | 87-0292166 | ||
Entity Address, Address Line One | 444 South River Road | ||
Entity Address, City or Town | St. George | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84790 | ||
City Area Code | 435 | ||
Local Phone Number | 634-3000 | ||
Title of 12(b) Security | Common Stock, No Par Value | ||
Trading Symbol | SKYW | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,725,423,470 | ||
Entity Common Stock, Shares Outstanding | 40,229,334 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Salt Lake City, Utah | ||
Entity Central Index Key | 0000793733 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 148,277 | $ 102,984 |
Marketable securities | 686,946 | 944,231 |
Receivables, net | 82,854 | 100,523 |
Inventories, net | 127,114 | 123,209 |
Other current assets | 86,705 | 100,334 |
Total current assets | 1,131,896 | 1,371,281 |
PROPERTY AND EQUIPMENT: | ||
Aircraft and rotable spares | 8,323,107 | 8,143,614 |
Deposits on aircraft | 77,282 | 23,931 |
Buildings and ground equipment | 282,398 | 265,019 |
Total property and equipment, gross | 8,682,787 | 8,432,564 |
Less-accumulated depreciation and amortization | (3,199,820) | (2,884,084) |
Total property and equipment, net | 5,482,967 | 5,548,480 |
OTHER ASSETS: | ||
Operating lease right-of-use assets | 86,727 | 151,928 |
Long-term receivables and other assets | 324,703 | 342,864 |
Total other assets | 411,430 | 494,792 |
Total assets | 7,026,293 | 7,414,553 |
CURRENT LIABILITIES: | ||
Current maturities of long-term debt | 443,869 | 438,502 |
Accounts payable | 470,251 | 422,001 |
Accrued salaries, wages and benefits | 194,881 | 186,285 |
Current maturities of operating lease liabilities | 19,335 | 71,726 |
Taxes other than income taxes | 26,077 | 20,480 |
Other current liabilities | 99,879 | 33,549 |
Total current liabilities | 1,254,292 | 1,172,543 |
LONG-TERM DEBT, net of current maturities | 2,562,183 | 2,941,772 |
DEFERRED INCOME TAXES PAYABLE | 687,600 | 687,060 |
NONCURRENT OPERATING LEASE LIABILITIES | 67,392 | 88,622 |
OTHER LONG-TERM LIABILITIES | 341,324 | 176,925 |
COMMITMENTS AND CONTINGENCIES (Note 5) | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, 5,000,000 shares authorized; none issued | ||
Common stock, no par value, 120,000,000 shares authorized; 82,840,372 and 82,592,830 shares issued as of December 31, 2023, and December 31, 2022, respectively | 754,362 | 734,426 |
Retained earnings | 2,271,211 | 2,236,869 |
Treasury stock, at cost, 42,615,347 and 31,994,416 shares as of December 31, 2023, and December 31, 2022, respectively | (912,396) | (619,862) |
Accumulated other comprehensive income (loss) | 325 | (3,802) |
Total stockholders' equity | 2,113,502 | 2,347,631 |
Total liabilities and stockholders' equity | $ 7,026,293 | $ 7,414,553 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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) | $ 0 | $ 0 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 82,840,372 | 82,592,830 |
Treasury stock, at cost, shares | 42,615,347 | 31,994,416 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING REVENUES: | |||
Total operating revenues | $ 2,935,432 | $ 3,004,925 | $ 2,713,491 |
OPERATING EXPENSES: | |||
Salaries, wages and benefits | 1,322,615 | 1,211,551 | 986,664 |
Aircraft maintenance, materials and repairs | 673,453 | 644,157 | 817,803 |
Depreciation and amortization | 383,115 | 394,552 | 440,198 |
Aircraft fuel | 85,913 | 108,456 | 107,057 |
Airport-related expenses | 72,640 | 71,549 | 104,690 |
Aircraft rentals | 25,507 | 75,353 | 63,357 |
Special items | 84,592 | ||
Payroll support grant | (422,669) | ||
Other operating expenses | 268,120 | 318,145 | 255,932 |
Total operating expenses | 2,831,363 | 2,823,763 | 2,437,624 |
OPERATING INCOME | 104,069 | 181,162 | 275,867 |
OTHER INCOME (EXPENSE): | |||
Interest income | 43,928 | 17,605 | 1,114 |
Interest expense | (130,930) | (127,083) | (123,122) |
Other income (loss), net | 23,242 | 20,899 | (3,249) |
Total other expense, net | (63,760) | (88,579) | (125,257) |
INCOME BEFORE INCOME TAXES | 40,309 | 92,583 | 150,610 |
PROVISION FOR INCOME TAXES | 5,967 | 19,630 | 38,700 |
NET INCOME | $ 34,342 | $ 72,953 | $ 111,910 |
BASIC EARNINGS PER SHARE (in dollars per share) | $ 0.78 | $ 1.44 | $ 2.22 |
DILUTED EARNINGS PER SHARE (in dollars per share) | $ 0.77 | $ 1.44 | $ 2.20 |
Weighted average common shares: | |||
Basic (in shares) | 43,940 | 50,548 | 50,348 |
Diluted (in shares) | 44,599 | 50,644 | 50,753 |
COMPREHENSIVE INCOME: | |||
Net income | $ 34,342 | $ 72,953 | $ 111,910 |
Net unrealized appreciation (depreciation) on marketable securities, net of taxes | 4,127 | (3,802) | |
TOTAL COMPREHENSIVE INCOME | 38,469 | 69,151 | 111,910 |
Flying agreements | |||
OPERATING REVENUES: | |||
Total operating revenues | 2,834,397 | 2,899,837 | 2,615,076 |
Lease, airport services and other | |||
OPERATING REVENUES: | |||
Total operating revenues | $ 101,035 | $ 105,088 | $ 98,415 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2020 | $ 704,675 | $ 2,052,006 | $ (617,136) | $ 2,139,545 | |
Balance (in shares) at Dec. 31, 2020 | 82,095,000 | (31,914,000) | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 111,910 | 111,910 | |||
Exercise of common stock options and vested employee stock awards | $ 606 | $ 606 | |||
Exercise of common stock options and vested employee stock awards (in shares) | 177,000 | 41,020 | |||
Employee income tax paid on vested equity awards | $ (1,576) | $ (1,576) | |||
Employee income tax paid on vested equity awards (in shares) | (42,000) | ||||
Sale of common stock under employee stock purchase plan | $ 2,540 | 2,540 | |||
Sale of common stock under employee stock purchase plan (in shares) | 64,000 | ||||
Stock based compensation expense | $ 8,685 | 8,685 | |||
Warrants issued to U.S. Treasury | 5,804 | 5,804 | |||
Balance at Dec. 31, 2021 | $ 722,310 | 2,163,916 | $ (618,712) | 2,267,514 | |
Balance (in shares) at Dec. 31, 2021 | 82,336,000 | (31,956,000) | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 72,953 | 72,953 | |||
Exercise of common stock options and vested employee stock awards | $ 142 | $ 142 | |||
Exercise of common stock options and vested employee stock awards (in shares) | 151,000 | 9,817 | |||
Employee income tax paid on vested equity awards | $ (1,150) | $ (1,150) | |||
Employee income tax paid on vested equity awards (in shares) | (38,000) | ||||
Sale of common stock under employee stock purchase plan | $ 2,815 | 2,815 | |||
Sale of common stock under employee stock purchase plan (in shares) | 106,000 | ||||
Stock based compensation expense | $ 9,159 | 9,159 | |||
Net unrealized appreciation (depreciation) on marketable securities, net of tax | $ (3,802) | (3,802) | |||
Balance at Dec. 31, 2022 | $ 734,426 | 2,236,869 | $ (619,862) | (3,802) | 2,347,631 |
Balance (in shares) at Dec. 31, 2022 | 82,593,000 | (31,994,000) | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 34,342 | 34,342 | |||
Exercise of common stock options and vested employee stock awards | $ 57 | $ 57 | |||
Exercise of common stock options and vested employee stock awards (in shares) | 130,000 | 3,848 | |||
Employee income tax paid on vested equity awards | $ (585) | $ (585) | |||
Employee income tax paid on vested equity awards (in shares) | (32,000) | ||||
Sale of common stock under employee stock purchase plan | $ 2,754 | 2,754 | |||
Sale of common stock under employee stock purchase plan (in shares) | 117,000 | ||||
Stock based compensation expense | $ 17,125 | 17,125 | |||
Treasury stock purchases and related excise tax | $ (291,949) | (291,949) | |||
Treasury stock purchases and related excise tax (in shares) | (10,589,000) | ||||
Net unrealized appreciation (depreciation) on marketable securities, net of tax | 4,127 | 4,127 | |||
Balance at Dec. 31, 2023 | $ 754,362 | $ 2,271,211 | $ (912,396) | $ 325 | $ 2,113,502 |
Balance (in shares) at Dec. 31, 2023 | 82,840,000 | (42,615,000) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY | ||
Net unrealized appreciation (depreciation) on marketable securities, tax | $ 1,329 | $ 1,224 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 34,342 | $ 72,953 | $ 111,910 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 383,115 | 394,552 | 440,198 |
Stock based compensation expense | 17,125 | 9,159 | 8,685 |
Decrease in credit loss reserves | (185) | (4,591) | (4,249) |
Gain on disposal of fixed assets | (14,295) | (7,948) | (4,586) |
Loss (gain) on investments in other companies | 479 | (11,380) | |
Net increase in deferred income taxes | 539 | 23,825 | 37,305 |
Impairment on assets held for sale | 2,318 | 51,384 | |
Special items | 84,592 | ||
Changes in operating assets and liabilities: | |||
Decrease (increase) in receivables | 19,818 | (32,959) | (30,093) |
Decrease (increase) in income tax receivable | 997 | 7,815 | (5,570) |
Increase in inventories | (3,905) | (16,628) | (12,897) |
Decrease (increase) in other current assets | 1,593 | (2,871) | (1,936) |
Decrease in operating lease right-of-use assets | 25,954 | 86,588 | 43,846 |
Decrease in operating lease liabilities | (54,984) | (76,812) | (51,326) |
Increase (decrease) in deferred revenue | 229,862 | 40,812 | (6,832) |
Decrease (increase) in unbilled revenue | 12,601 | (11,491) | (8,404) |
Increase (decrease) in accounts payable and other current liabilities | 80,960 | (42,032) | 231,177 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 736,334 | 480,376 | 831,820 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of marketable securities | (1,339,465) | (1,834,403) | (1,517,861) |
Sales of marketable securities | 1,600,877 | 1,488,359 | 1,526,057 |
Acquisition of property and equipment: | |||
Aircraft and rotable spare parts | (238,068) | (632,460) | (537,574) |
Buildings and ground equipment | (13,258) | (13,031) | (18,127) |
Proceeds from the sale of property and equipment | 15,879 | 16,983 | 7,117 |
Deposits on aircraft | (65,000) | (37,100) | (125,701) |
Aircraft deposits applied towards acquired aircraft | 11,649 | 138,383 | 32,962 |
Decrease (increase) in other assets | 4,158 | (31,625) | (65,395) |
NET CASH USED IN INVESTING ACTIVITIES | (23,228) | (904,894) | (698,522) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of long-term debt | 69,689 | 684,502 | 450,032 |
Principal payments on long-term debt | (447,604) | (415,050) | (540,537) |
Payment of debt issuance cost | (175) | (2,178) | (1,665) |
Net proceeds from issuance of common stock | 2,811 | 2,957 | 3,146 |
Employee income tax paid on vested equity awards | (585) | (1,150) | (1,576) |
Purchase of treasury stock and related excise tax | (291,949) | ||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (667,813) | 269,081 | (90,600) |
Increase (decrease) in cash and cash equivalents | 45,293 | (155,437) | 42,698 |
Cash and cash equivalents at beginning of period | 102,984 | 258,421 | 215,723 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 148,277 | 102,984 | 258,421 |
Non-cash investing and financing activities: | |||
Acquisition of property and equipment | 12,583 | 16,826 | 11,336 |
Derecognition of right of use assets | (39,247) | ||
Derecognition of operating lease liabilities | 39,247 | ||
Warrants issued to U.S. Treasury | 5,804 | ||
Cash paid during the period for: | |||
Interest, net of capitalized amounts | 128,288 | 125,321 | 124,918 |
Income taxes | $ 13,610 | $ 1,166 | $ 6,589 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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 subsidiary, SkyWest Airlines, Inc. (“SkyWest Airlines”) operates the largest regional airline in the United States. As of December 31, 2023, SkyWest Airlines offered scheduled passenger service under code-share agreements with United Airlines, Inc. (“United”), Delta Air Lines, Inc. (“Delta”), American Airlines, Inc. (“American”) and Alaska Airlines, Inc. (“Alaska”) with approximately 1,850 total daily departures to destinations in the United States, Canada and Mexico. Additionally, the Company provides airport customer service and ground handling services for other airlines throughout its system. In 2022, the Company formed SkyWest Charter, LLC (“SWC”), which had its first revenue generating flight in May 2023. SWC offers an on-demand charter flight service. As of December 31, 2023, the Company had 603 total aircraft in its fleet, including 485 aircraft in scheduled service or under contract under its code-share agreements, summarized as follows: E175 CRJ900 CRJ700 CRJ200 Total United 90 — 19 89 198 Delta 85 41 9 — 135 American 20 — 90 — 110 Alaska 42 — — — 42 Aircraft in scheduled service or under contract 237 41 118 89 485 SWC — — — 16 16 Leased to third parties — 5 35 — 40 Other (1) — 3 14 45 62 Total Fleet 237 49 167 150 603 (1) As of December 31, 2023, other aircraft included: supplemental spare aircraft supporting the Company’s code-share agreements that may be placed under future code-share or leasing arrangements, aircraft transitioning between code-share agreements with the Company’s major airline partners, aircraft held-for-sale or aircraft that are scheduled to be disassembled for use as spare parts. For the year ended December 31, 2023, approximately 40.8% of the Company’s aircraft in scheduled service was operated for United, approximately 27.8% was operated for Delta, approximately 22.7% was operated for American and approximately 8.7% was operated for Alaska. SkyWest Airlines has been a code-share partner with Delta since 1987, United since 1997, Alaska since 2011 and American since 2012. As of December 31, 2023, SkyWest Airlines operated as a Delta Connection carrier primarily in Salt Lake City, Detroit and Minneapolis, a United Express carrier primarily in Los Angeles, San Francisco, Denver, Houston, Chicago and the Pacific Northwest, an American carrier primarily in Chicago, Dallas, Los Angeles and Phoenix and an Alaska carrier primarily in the Pacific Northwest. SkyWest Airlines operates the following aircraft manufactured by MHI RJ Aviation ULC, formerly known as Bombardier Aerospace (“Bombardier”): CRJ900s, CRJ700s and CRJ200s, and E175s manufactured by Embraer. The CRJ700, CRJ900 E175 have seat Basis of Presentation The Company’s consolidated financial statements include the accounts of the Company and the SkyWest Airlines and SWC and SkyWest Leasing segments, 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, 2023, through the filing date 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 (“GAAP”) 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 materially from those estimates and assumptions. 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 had no restricted cash as of December 31, 2023 and 2022. Marketable Securities The Company’s investments in debt securities are classified as 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, 2023 and 2022 was as follows (in thousands): Gross unrealized Gross unrealized At December 31, 2023 Amortized Cost holding gains holding losses Fair market value Marketable securities: Bond and bond funds $ 676,644 $ 430 $ — $ 677,074 Commercial Paper 9,872 — — 9,872 Total marketable securities $ 686,516 $ 430 $ — $ 686,946 Gross unrealized Gross unrealized At December 31, 2022 Amortized Cost holding gains holding losses Fair market value Marketable securities: Bond and bond funds $ 629,280 $ — $ (5,026) $ 624,254 Commercial Paper 319,977 — — 319,977 Total marketable securities $ 949,257 $ — $ (5,026) $ 944,231 Inventories Inventories include expendable parts, fuel and supplies and are valued at cost (FIFO basis) less an allowance for obsolescence based on historical part turnover, excess parts 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, anticipated part usage and salvage values. The inventory allowance as of December 31, 2023 and 2022, was $26.1 million and $24.2 million, respectively. 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 Current Residual Value Aircraft, rotable spares, and spare engines up to 22 years up to 20 % Ground equipment up to 10 years 0 % Office equipment up to 5 years 0 % Leasehold improvements Shorter of 15 years or lease term 0 % Buildings 20 - 39.5 years 0 % Impairment of Long-Lived Assets As of December 31, 2023, the Company had approximately $5.5 billion of property and equipment, net. In accounting for these long-lived assets, the Company makes estimates about the expected useful lives of the assets, the expected residual values of such assets, and the potential for impairment based on projected future cash flows and estimated fair value of the assets. 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, the Company groups 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 aircraft type level. During 2022, the Company committed to a plan to sell 14 CRJ700 aircraft, resulting in an impairment on the assets held for sale of $51.4 million. During 2023, the Company wrote-down the assets held for sale for an additional $2.3 million. See Note 8, “Assets Held for Sale” for more information on the assets held for sale. 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, 2023, 2022 and 2021, the Company capitalized interest costs of approximately $1.5 million, $1.9 million and $1.9 million, respectively. Maintenance The Company operates under a U.S. Federal Aviation Administration approved continuous inspection and maintenance program. The Company uses the direct expense method of accounting for its regional jet engine overhauls. The Company has engine services agreements with third-party vendors to provide long-term engine services covering the scheduled and unscheduled repairs for most of its aircraft. Under the terms of the agreements, the Company pays a fixed dollar amount per engine hour flown per month and the third-party vendors 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 each contract. The repair costs for engines not covered by these hourly service agreements are expensed when repair services are incurred. The costs of maintenance for airframe and avionics components, landing gear and other recurring maintenance are expensed as incurred. Flying Agreements and Airport Customer Service and Other Revenues The Company recognizes revenue under its flying agreements and under its lease, airport services and other service agreements when the service is provided under the applicable agreement. Under the Company’s capacity purchase agreements with United, Delta, American and Alaska (each, a “major airline partner”), the major airline partner generally pays the Company a fixed-fee for each departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time) incurred, and an amount per aircraft in service each month (a portion of which is accounted for as aircraft lease consideration), with additional incentives based on flight completion, on-time performance or other performance metrics. The major airline partner also directly pays for or reimburses the Company for certain direct expenses incurred under the capacity purchase agreement, such as fuel, airport landing fees and airport rents. Under the capacity purchase agreements, the Company’s performance obligation is met when each flight is completed, measured in completed block hours, and is reflected in flying agreements revenue. The transaction price for the capacity purchase agreements is determined from the fixed-fee consideration, incentive consideration and directly reimbursed expenses earned as flights are completed over the agreement term. For the years ended December 31, 2023, 2022 and 2021, capacity purchase arrangements represented approximately 86.5%, 88.0% and 84.3% of the Company’s flying agreements revenue, respectively. Under the Company’s prorate arrangements (also referred to as a “prorate” agreements), the major airline partner and the Company negotiate a passenger fare proration formula, pursuant to which the Company receives a percentage of the ticket revenues for those passengers traveling for one portion of their trip on a Company airline and the other portion of their trip on the major airline partner. Under the Company’s prorate flying agreements, the performance obligation is met and revenue is recognized when each flight is completed based upon the portion of the prorate passenger fare the Company determines that it will receive for each completed flight. The transaction price for the prorate agreements is determined from the proration formula derived from each passenger ticket amount on each completed flight over the agreement term. Certain routes under the Company’s prorate arrangements are subsidized by the U.S. Department of Transportation under the Essential Air Service (“EAS”) program, a program created to ensure small communities in the United States maintain a minimum level of scheduled air service. The EAS contracts are generally two years in duration and the Company recognizes EAS revenue on a per-completed-flight basis pursuant to the terms of each contract. Under the Company’s charter operations, SWC, the Company negotiates a fare for the charter flight with the customer. The performance obligation is met and revenue is recognized upon completion of the flight. For the years ended December 31, 2023, 2022 and 2021, prorate flying agreements and SWC revenue represented approximately 13.5%, 12.0%, and 15.7% of the Company’s flying agreements revenue, respectively. The following table represents the Company’s flying agreements revenue by type for the years ended December 31, 2023, 2022 and 2021 (in thousands): For the year ended December 31, 2023 2022 2021 Capacity purchase agreements flight operations revenue (non-lease component) $ 1,976,743 $ 2,028,308 $ 1,678,219 Capacity purchase agreements fixed aircraft lease revenue 296,047 504,529 527,173 Capacity purchase agreements variable aircraft lease revenue 180,218 17,664 — Prorate agreements and SWC revenue 381,389 349,336 409,684 Flying agreements revenue $ 2,834,397 $ 2,899,837 $ 2,615,076 The Company allocates the total consideration received under its capacity purchase agreements between lease and non-lease components based on stand-alone selling prices. A portion of the Company’s compensation under its capacity purchase agreements is designed to reimburse the Company for certain aircraft ownership costs. The consideration for aircraft ownership costs varies by agreement but is intended to cover either the Company’s aircraft principal and interest debt service costs, its aircraft depreciation and interest expense or its aircraft lease expense costs while the aircraft is under contract. The consideration received for the use of the aircraft under the Company’s capacity purchase agreements is accounted for as lease revenue, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The lease revenue associated with the Company’s capacity purchase agreements is accounted for as an operating lease and is reflected as flying agreements revenue on the Company’s consolidated statements of comprehensive income. During the three months ended December 31, 2022, the Company amended certain of its capacity purchase agreements resulting in a portion of the Company’s aircraft lease revenue becoming variable beginning in the fourth quarter of 2022. As a result of these capacity purchase agreement amendments executed in 2022, during the year ended December 31, 2023, the Company deferred recognizing lease revenue on $78.5 million of the allocated fixed monthly lease payments received during the year ended December 31, 2023, under the straight-line method. The Company deferred recognizing lease revenue on $22.1 million of the allocated fixed monthly lease payments received during the year ended December 31, 2022, under the straight-line method. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of comprehensive income because the use of the aircraft is not a separate activity of the total service provided under the capacity purchase agreements. A portion of the Company’s compensation under its capacity purchase agreements relates to operating the aircraft, identified as the non-lease component of the capacity purchase agreement. The Company recognizes revenue attributed to the non-lease component received as fixed-fees for each departure, flight hour or block hour on an as-completed basis for each reporting period. The Company recognizes revenue attributed to the non-lease component received as fixed monthly payments per aircraft proportionate to the number of block hours completed during each reporting period, relative to the estimated number of block hours the Company anticipates completing over the remaining contract term. Accordingly, the Company’s revenue recognition will likely vary from the timing of cash receipts under the Company’s capacity purchase agreements. The Company refers to cash received under its capacity purchase agreements prior to recognizing revenue as “deferred revenue,” and the Company refers to revenue recognized prior to billing its major airline partners under its capacity purchase agreements as “unbilled revenue” for each reporting period. The Company’s total deferred revenue balance as of December 31, 2023, was $374.6 million, including $61.0 million in other current liabilities and $313.6 million in other long-term liabilities. The Company’s unbilled revenue balance as of December 31, 2023, was $7.3 million, including $1.2 million in other current assets and $6.1 million in other long-term assets. The Company’s total deferred revenue balance as of December 31, 2022, was $144.7 million, including $5.2 million in other current liabilities and $139.5 million in other long-term liabilities. T In several of the Company’s agreements, the Company is eligible to receive incentive compensation upon the achievement of certain performance criteria. The incentives are defined in the agreements and are measured and determined on a monthly, quarterly or semi-annual basis. At the end of each period during the term of an agreement, the Company calculates the incentives achieved during that period and recognizes revenue attributable to that agreement accordingly, subject to the variable constraint guidance under Accounting Standard Codification (“ASC”) Topic 606. The following summarizes the significant provisions of each code-share agreement the Company has with each major airline partner through SkyWest Airlines: United Express Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates United Express Agreements (capacity purchase agreement) · E175 · CRJ 700 · CRJ 200 90 19 70 · Individual aircraft have scheduled removal dates under the agreement between 2024 and 2029 · The average remaining term of the aircraft under contract is 2.7 years United Express Prorate Agreement (prorate agreement) · CRJ 200 *19 · Terminable with 120 Total under United Express Agreements 198 Delta Connection Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates Delta Connection Agreement (capacity purchase agreement) · E175 · CRJ 900 · CRJ 700 85 35 5 · Individual aircraft have scheduled removal dates from 2024 to 2034 · The average remaining term of the aircraft under contract is 4.8 years Delta Connection Prorate Agreement (prorate agreement) · CRJ 900 · CRJ 700 6* 4* · Terminable with 30 Total under Delta Connection Agreements 135 American Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates American Agreement (capacity purchase agreement) · E175 · CRJ 700 20 90 · Individual aircraft have scheduled removal dates from 2024 to 2032 · The average remaining term of the aircraft under contract is 3.1 years Total under American Agreement 110 Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates Alaska Agreement (capacity purchase agreement) · E175 42 · Individual aircraft have scheduled removal dates from 2030 to 2034 · The average remaining term of the aircraft under contract is 7.5 years * The Company’s prorate agreements are based on specific routes, not a specific aircraft count. The number of aircraft listed above for each prorate agreement approximates the number of aircraft the Company uses to serve the prorate routes. In addition to the contractual arrangements described above, as of December 31, 2023, SkyWest Airlines reached agreements to place the following E175 aircraft under a capacity purchase agreement with the respective partners: 2024 2025 2026 Total Delta Air Lines 1 — — 1 United Airlines 4 7 8 19 Alaska Airlines — 1 — 1 Total 5 8 8 21 Final delivery and in-service dates for aircraft to be placed under contract may be adjusted based on various factors. When an aircraft is scheduled to be removed from a capacity purchase arrangement, the Company may, as practical under the circumstances, negotiate an extension with the respective major airline partner, negotiate the placement of the aircraft with another major airline partner, return the aircraft to the major airline partner when the aircraft is leased from the major airline partner, place owned aircraft for sale or pursue other uses for the aircraft. Other uses for the aircraft may include placing the aircraft in a prorate agreement, leasing the aircraft or engines to a third party or disassembling aircraft components such as the engines and parts to be used as spare inventory. Lease, airport services and other revenues primarily consists of revenue generated from aircraft and spare engines leased to third parties and from airport customer service agreements, such as gate and ramp agent services at various airports where the Company has been contracted by third parties to provide such services. The following table represents the Company’s lease, airport services and other revenues for the years ended December 31, 2023, 2022 and 2021 (in thousands): For the year ended December 31, 2023 2022 2021 Operating lease revenue $ 47,554 $ 48,714 $ 46,532 Operating lease revenue relating to variable lease payments 18,420 17,050 19,998 Airport customer service and other revenue 35,061 39,324 31,885 Lease, airport services and other $ 101,035 $ 105,088 $ 98,415 2024 $ 46,119 2025 41,172 2026 35,630 2027 35,586 2028 35,024 Thereafter 53,122 Total future minimum rental income under operating leases $ 246,653 Of the Company’s $5.5 billion of property and equipment, net as of December 31, 2023, $216.0 million of regional jet aircraft and spare engines were leased to third parties under operating leases. The Company’s mitigation strategy for the residual asset risks of these assets includes leasing aircraft and engine types that can be operated by the Company in the event of a default. Additionally, the operating leases typically have specified lease return condition requirements paid by the lessee to the Company and the Company typically maintains inspection rights under the leases. The transaction price for airport customer service agreements is determined from an agreed-upon rate by location applied to the applicable number of flights handled by the Company over the agreement term. The Company’s operating revenues could be impacted by several factors, including changes to the Company’s code-share agreements with its major airline partners, changes in flight schedules, contract modifications resulting from contract renegotiations, 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 airline partners. 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. As of December 31, 2023, the Company had $82.9 million in accounts receivable of which $73.6 million related to flying agreements. As of December 31, 2022, the Company had $100.5 million in accounts receivable of which $73.7 million related to flying agreements. Allowance for Credit Losses The Company monitors publicly available credit ratings for entities for which the Company has a significant receivable balance. As of December 31, 2023, the Company had gross receivables of $86.1 million in current assets and gross receivables of $199.8 million in other long-term assets. The Company has established credit loss reserves based on publicly available historic default rates issued by a third party for companies with similar credit ratings, factoring in the term of the respective accounts receivable or note receivable. During the year ended December 31, 2023, the Company recorded $0.2 million of adjustments to the credit loss reserve and wrote-off $18.5 million in receivables that were fully reserved as of December 31, 2022. There were no other significant changes in the outstanding accounts receivable, notes receivable or credit ratings of the entities. The following table summarizes the changes in allowance for credit losses: Allowance for Credit Losses Balance at December 31, 2020 $ 46,225 Adjustments to credit loss reserves (4,249) Write-offs charged against allowance — Balance at December 31, 2021 $ 41,976 Adjustments to credit loss reserves (4,591) Write-offs charged against allowance — Balance at December 31, 2022 $ 37,385 Adjustments to credit loss reserves (185) Write-offs charged against allowance (18,501) Balance at December 31, 2023 $ 18,699 Income Taxes The Company recognizes a net 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 are expected to result in taxable or deductible amounts in future years when the reported amounts of the assets and liabilities are recovered or settled. Net Income Per Common Share Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income 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 per common share. Securities that could potentially dilute Basic EPS in the future, and which were excluded from the calculation of Diluted EPS because inclusion of such share would be anti-dilutive, are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Treasury Warrants (1) 286 640 78 Employee Stock Awards 15 219 — Total antidilutive securities 301 859 78 (1) U.S. Department of the Treasury (“Treasury”) warrants to purchase shares of SkyWest common stock issued pursuant to the three Payroll Support Program Agreements and a loan agreement . See Note 10, “Payroll Support Programs” and Note 11, “Capital Transactions” for further discussion on the warrants issued to Treasury. Additionally, for the years ended December 31, 2023, 2022 and 2021, 334,000, 146,000 and 140,000 performance share units (at target performance) were excluded from the computation of Diluted EPS since the Company had not achieved the minimum target thresholds for these units as of December 31, 2023, 2022 and 2021, respectively. 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, 2023, 2022 and 2021 (in thousands): Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 34,342 $ 72,953 $ 111,910 Denominator: Basic earnings per share weighted average shares 43,940 50,548 50,348 Dilution due to employee equity awards and warrants 659 96 405 Diluted earnings per share weighted average shares 44,599 50,644 50,753 Basic earnings per share $ 0.78 $ 1.44 $ 2.22 Diluted earnings per share $ 0.77 $ 1.44 $ 2.20 Comprehensive Income Comprehensive income includes charges and credits to stockholders’ equity that are not the result of transactions with the Company’s shareholders, including changes in unrealized appreciation (or depreciation) on marketable debt securities. 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, the Company has estimated the fair values of these securities utilizing a discounted cash flow analysis. 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. Certain investments in other companies are reported at fair value based on market quoted prices or using the Black Scholes Option Pricing model in the consolidated balance sheets. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt. Segment Reporting GAAP requires 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 reportable segments consist of (1) the operations of SkyWest Airlines and SWC (collectively, “SkyWest Airlines and SWC”) and (2) SkyWest Leasing activities. I nformation pertaining to the Company’s reportable segments is presented in Note 2, Segment Reporting . The Company has two reportable segments: (1) SkyWest Airlines and SWC and (2) SkyWest Leasing. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting | |
Segment Reporting | (2) Segment Reporting GAAP requires 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 reportable segments consist of (1) the operations of SkyWest Airlines and SWC and (2) SkyWest Leasing activities. The Company’s chief operating decision maker analyzes the profitability of operating new aircraft financed through the issuance of debt, including the Company’s E175 fleet, separately from the profitability of the Company’s capital deployed for ownership and financing of such aircraft. The SkyWest Airlines and SWC segment includes revenue earned under the applicable capacity purchase agreements attributed to operating such aircraft and the respective operating costs, and revenue and operating expenses attributed to other flying or airport services agreements. The SkyWest Leasing segment includes applicable revenue earned under the applicable capacity purchase agreements attributed to the ownership of new aircraft acquired through the issuance of debt and the respective depreciation and interest expense of such aircraft. The SkyWest Leasing segment also includes the activity of leasing regional jet aircraft and spare engines to third parties and other activities. The SkyWest Leasing segment’s total assets and capital expenditures include new aircraft acquired through the issuance of debt and assets leased to third parties. Additionally, aircraft removed from SkyWest Airlines’ operations and held for sale are included in the SkyWest Leasing segment. The following represents the Company’s segment data for the years ended December 31, 2023, 2022, and 2021 (in thousands). Year ended December 31, 2023 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 2,392,174 $ 543,258 $ 2,935,432 Operating expense 2,566,946 264,417 2,831,363 Depreciation and amortization expense 149,264 233,851 383,115 Interest expense 17,053 113,877 130,930 Segment profit (loss) (2) (191,825) 164,964 (26,861) Total assets (as of December 31, 2023) 2,537,834 4,488,459 7,026,293 Capital expenditures (including non-cash) 113,783 150,126 263,909 Year ended December 31, 2022 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 2,492,318 $ 512,607 $ 3,004,925 Operating expense 2,525,076 298,687 2,823,763 Depreciation and amortization expense 182,475 212,077 394,552 Interest expense 12,805 114,278 127,083 Segment profit (loss) (2) (45,563) 99,642 54,079 Total assets (as of December 31, 2022) 2,977,804 4,436,749 7,414,553 Capital expenditures (including non-cash) 82,891 579,426 662,317 Year ended December 31, 2021 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 2,192,432 $ 521,059 $ 2,713,491 Operating expense 2,177,524 260,100 2,437,624 Depreciation and amortization expense 210,281 229,917 440,198 Special items - impairment charges 84,592 — 84,592 Interest expense 13,360 109,762 123,122 Segment profit (2) 1,548 151,197 152,745 Total assets (as of December 31, 2021) 2,957,745 4,168,202 7,125,947 Capital expenditures (including non-cash) 128,712 438,325 567,037 (1) Prorate revenue and airport customer service revenue are reflected in the SkyWest Airlines and SWC segment. (2) Segment profit (loss) is equal to operating income less interest expense. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Long-term Debt | |
Long-term Debt | (3) Long-term Debt Long-term debt consisted of the following as of December 31, 2023 and 2022 (in thousands): December 31, December 31, 2023 2022 Notes payable to banks, due in quarterly installments, plus interest at 2.33% to 5.95% through 2035, secured by aircraft $ 2,302,578 $ 2,604,058 Notes payable to banks, due in monthly or semi-annual installments, plus interest at 2.68% to 5.94% through 2032, secured by aircraft and engines 527,092 604,613 Notes payable to U.S. Government, interest due quarterly at 1.00% through 2025 and based on SOFR plus 2.0% from 2025 through 2031, unsecured 200,640 200,640 Long-term debt $ 3,030,310 $ 3,409,311 Current portion of long-term debt (447,534) (442,360) Less long-term portion of unamortized debt issue cost, net (20,593) (25,179) Long-term debt, net of current maturities and debt issue costs $ 2,562,183 $ 2,941,772 Current portion of long-term debt $ 447,534 $ 442,360 Less current portion of unamortized debt issue cost, net (3,665) (3,858) Current portion of long-term debt, net of debt issue costs $ 443,869 $ 438,502 As of December 31, 2023 and 2022, the Company had $3.0 billion and $3.4 billion, respectively, of total long-term debt. The average effective interest rate on the Company’s debt was approximately 4.1% and 4.0% at December 31, 2023 and 2022, respectively. During 2023, the Company took delivery of two new E175 aircraft that the Company financed through $44.7 million of long-term debt. The debt associated with the two E175 aircraft has 12-year During 2023, the Company executed a promissory note for $25 million. The promissory note has an eight-year term, is due in monthly installments, has a fixed annual interest rates of 5.6% and is secured by spare engines. The aggregate amounts of principal maturities of long-term debt as of December 31, 2023 were as follows (in thousands): 2024 $ 447,534 2025 532,314 2026 510,625 2027 464,280 2028 292,812 Thereafter 782,745 $ 3,030,310 As of December 31, 2023 and 2022, SkyWest Airlines had a $100.0 million line of credit. The line of credit includes minimum liquidity and profitability covenants and is secured by certain assets. As of December 31, 2023 and 2022, SkyWest Airlines had no amounts outstanding under the line of credit facility. However, at December 31, 2023 and 2022, the Company had $29.2 million and $29.9 million, respectively, in letters of credit issued under the facility which reduced the amount available under the facility to $70.8 million and $70.1 million, respectively. The line of credit expires March 25, 2025 and has a variable interest rate of 3.5% plus the one month SOFR rate. As of December 31, 2023 and 2022, the Company had $49.1 million and $59.2 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions. The Company’s debt agreements are not traded on an active market and are recorded at carrying value on the Company’s consolidated balance sheet. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt. Debt is primarily classified as Level 2 within the fair value hierarchy. The carrying value and fair value of the Company’s long-term debt as of December 31, 2023 and 2022, were as follows (in thousands): December 31, 2023 December 31, 2022 Carrying value $ 3,030,310 $ 3,409,311 Fair value $ 2,918,012 $ 3,264,704 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | (4) Income Taxes The provision for income taxes includes the following components (in thousands): Year ended December 31, 2023 2022 2021 Current tax provision (benefit): Federal $ 4,962 $ (7,319) $ — State 1,794 1,813 846 6,756 (5,506) 846 Deferred tax provision (benefit): Federal (678) 21,587 32,510 State (111) 3,549 5,344 (789) 25,136 37,854 Provision for income taxes $ 5,967 $ 19,630 $ 38,700 The following is a reconciliation between a federal income tax rate of 21% and the effective tax rate which is derived by dividing the provision for income taxes by the income before the provision for income taxes (in thousands): Year ended December 31, 2023 2022 2021 Computed provision (benefit) for income taxes at the statutory rate $ 8,465 $ 19,442 $ 31,628 Increase (decrease) in income taxes resulting from: State income tax provision, net of federal income tax benefit 2,056 4,295 6,247 Non-deductible expenses 3,578 546 1,007 Valuation allowance changes affecting the provision for income taxes (1,085) 1,716 — Excess tax benefits from share-based compensation 939 534 (92) Change in unrecognized tax benefit (7,556) (7,319) — Other, net (430) 416 (90) Provision for income taxes $ 5,967 $ 19,630 $ 38,700 For the year ended December 31, 2023, the Company released a $1.1 million valuation allowance related to certain deferred tax assets associated with state net operating losses with a limited carry forward period. For the year ended December 31, 2022, the Company recorded a $1.7 mi llion valuation allowance against certain deferred tax assets associated with state net operating losses with a limited carry forward period. The Company recorded a $0.9 million expense, $0.5 million expense and $0.1 million benefit from share-based compensation in 2023, 2022, and 2021, respectively, relating to ASU 2016-09 which requires excess tax benefits and deficiencies to be recognized in the income tax provision during the period stock options are exercised and stock awards vest. The Company recorded a $7.6 million and $7.3 million tax benefit for the release of uncertain tax position under ASC The significant components of the Company’s net deferred tax assets and liabilities as of December 31, 2023 and 2022, are as follows (in thousands): As of December 31, 2023 2022 Deferred tax assets: Accrued benefits $ 28,889 $ 29,154 Net operating loss carryforward 130,478 186,517 Aircraft credits 93,189 77,962 Deferred revenue 91,809 35,385 Operating lease liabilities 21,207 39,209 Interest deduction limitation 11,563 26,469 Accrued reserves and other 64,971 49,972 Total deferred tax assets 442,106 444,668 Valuation allowance (630) (1,716) Deferred tax liabilities: Accelerated depreciation (1,108,042) (1,094,538) Operating lease right-of-use assets (21,034) (35,474) Total deferred tax liabilities (1,129,076) (1,130,012) Net deferred tax liability $ (687,600) $ (687,060) At Under ASC : Year ended December 31, 2023 2022 2021 Unrecognized tax benefits at the beginning of year $ 8,210 $ 15,529 $ 14,980 Gross increases - current year tax positions — — — Gross increases - prior year tax positions 191 343 549 Gross decreases - prior year tax positions (7,747) (7,662) — Unrecognized tax benefits at end of year $ 654 $ 8,210 $ 15,529 Interest and penalties in year-end balance $ — $ 607 $ 976 For the years ended December 31, 2023, 2022, and 2021, the Company recorded $191,000, $343,000, and $549,000, respectively, of interest expense related to uncertain tax positions not offset by the Company's tax attributes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | (5) Commitments and Contingencies 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. The Company uses judgment and estimates in determining the ultimate aggregate liabilities for claims incurred in its workers’ compensation liability. The Company also used assumptions in determining the workers compensation liability such as an estimation of loss payment and loss reporting development patterns. At December 31, 2023 and 2022, the Company’s accrued workers’ compensation liability totaled $20.6 million and $21.6 million, respectively, of which $7.3 million and $8.0 million, respectively, was short-term and included in other current liabilities. 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, 2023, 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. Concentration Risk and Significant Customers The Company requires no collateral from its major airline partners or customers, but monitors the financial condition of its major airline partners. Under the majority of the Company’s code-share agreements, the Company receives weekly payments from its major code-share partners that approximate a significant percentage of the compensation earned for such period. Additionally, the Company provides certain customer service functions at multiple airports for various airlines and the Company maintains a credit loss reserve based upon expected collectability of all accounts receivable. For the years ended December 31, 2023, 2022, and 2021, the Company’s contractual relationships with Delta and United combined accounted for approximately 70.9%, 72.5% and 73.5%, respectively of the Company’s total revenues. Employees Under Collective Bargaining Agreements As of December 31, 2023, the Company had approximately 13,000 employees. Although no SkyWest Airlines employees are represented by a national union, the majority of SkyWest Airline employees are covered by a written, stable and binding collective bargaining agreement under the Railway Labor Act, entered into between SkyWest Airlines and long-established labor associations, such as the SkyWest Airlines Pilot Association (“SAPA”). Aircraft Purchase Commitments As of December 31, 2023, the Company had a purchase commitment to purchase five new E175 aircraft in 2024, eight new E175 aircraft in 2025 and eight new E175 aircraft in 2026. Guarantees In 2022, the Company agreed to guarantee $19.8 million of debt for a 14 CFR Part 135 air carrier. The debt is secured by the Part 135 air carrier’s aircraft and engines and has a five-year term. In exchange for providing the guarantee, the Company received 6.5% of the guaranteed amount as consideration, payable in the estimated value of common stock of the Part 135 air carrier. During the year ended December 31, 2023, the Company sold all of its shares of common stock of the Part 135 air carrier and recorded a gain of $0.5 million in “Other income, net” on the Company’s consolidated statements of comprehensive income. The balance of the debt under the guarantee was $17.6 million as of December 31, 2023. In 2023, the Company agreed to guarantee up to $12.0 million of debt for an aviation school. The debt is secured by the school’s aircraft and engines and has a five-year term. The purpose of these guarantees is to help reduce the financing costs of aircraft for the third-parties in an effort to increase the potential number of commercial pilots in the Company’s hiring pipeline. The Company also recorded the estimated credit loss associated with the guarantees based on publicly available historical default rates issued by a third party for companies with similar credit ratings, factoring the collateral and guarantee term. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | (6) Leases The Company leases property and equipment under operating leases. For leases with durations longer than 12 months, the Company recorded the related operating lease right-of-use asset and operating lease liability at the present value of lease payments over the term. The Company used its incremental borrowing rate to discount the Aircraft During the year ended December 31, 2023, the Company acquired 35 CRJ aircraft under early lease buyout arrangements with the lessors for $142.4 million. The aircraft were in the Company’s operating fleet when the lease buyouts occurred. As of December 31, 2023, excluding aircraft financed by the Company’s major airline partners that the Company operates for them under contract, the Company leased eight aircraft under long-term lease agreements with remaining terms ranging from five seven Airport facilities The Company has operating leases for facility space including airport terminals, office space, cargo warehouses and maintenance facilities. The Company generally leases this space from government agencies that control the use of the various airports. The remaining lease terms for facility space vary from one month to 33 years. The Company’s operating leases with lease rates that are variable based on airport operating costs, use of the facilities or other variable factors are excluded from the Company’s right-of-use assets and operating lease liabilities in accordance with accounting guidance. Leases As of December 31, 2023, the Company’s right-of-use assets were $86.7 million, the Company’s current maturities of operating lease liabilities were $19.3 million, and the Company’s noncurrent lease liabilities were $67.4 million. During 2023, the Company paid $31.7 million in operating leases reflected as a reduction from operating cash flows. The table below presents lease related terms and discount rates as of December 31, 2023: Weighted-average remaining lease term for operating leases 11 years Weighted-average discount rate for operating leases 6.1% The Company’s lease costs for 2023, 2022 and 2021 included the following components (in thousands): For the year ended December 31, 2023 2022 2021 Operating lease cost $ 48,169 $ 97,998 $ 89,891 Variable and short-term lease cost 2,840 1,830 4,468 Sublease income (5,402) (7,089) (6,552) Total lease cost $ 45,607 $ 92,739 $ 87,807 As of December 31, 2023, the Company leased aircraft, airport facilities, office space, and other property and equipment under non-cancelable operating leases, which are generally on a long-term, triple-net lease basis pursuant to which the Company pays taxes, maintenance, insurance and certain other operating expenses applicable to the leased property. The Company expects that, in the normal course of business, such operating leases that expire will be renewed or replaced by other leases. The following table summarizes future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms as of December 31, 2023 (in thousands): 2024 $ 19,924 2025 17,503 2026 13,752 2027 12,554 2028 9,762 Thereafter 55,568 Total future minimum operating lease payments $ 129,063 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | (7) Fair Value Measurements The Company holds certain assets that are required to be measured at fair value in accordance with GAAP. The Company determined fair value of these assets based on the following three levels of inputs: Level 1 Level 2 Level 3 As of December 31, 2023 and 2022, 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, 2023 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 677,074 $ — $ 677,074 $ — Commercial paper 9,872 — 9,872 — $ 686,946 $ — $ 686,946 $ — Investments in Other Companies 15,402 2,925 — 12,477 Cash and Cash Equivalents 148,277 148,277 — — Total Assets Measured at Fair Value $ 850,625 $ 151,202 $ 686,946 $ 12,477 Fair Value Measurements as of December 31, 2022 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 624,254 $ — $ 624,254 $ — Commercial paper 319,977 — 319,977 — $ 944,231 $ — $ 944,231 $ — Investments in Other Companies 21,380 7,200 — 14,180 Cash and Cash Equivalents 102,984 102,984 — — Total Assets Measured at Fair Value $ 1,068,595 $ 110,184 $ 944,231 $ 14,180 The Company’s “Marketable Securities” classified as Level 2 securities primarily utilize broker quotes in a non-active market for valuation of these securities. See Note 14, “Investments in Other Companies” regarding the Company’s investments in other companies. The Company did not make any significant transfers of securities between Level 1, Level 2 and Level 3 during the year ended December 31, 2023. The Company’s policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Dec. 31, 2023 | |
Assets Held for Sale | |
Assets Held for Sale | (8) Assets Held for Sal e In 2022, the Company committed to a formal plan to sell 14 CRJ700 aircraft and determined the aircraft met the criteria to be classified as assets held for sale. In connection with the classification of these assets as held for sale, the Company recorded an impairment loss of $51.4 million, which is included in “Other operating expenses” on the Company’s consolidated statements of comprehensive income and in the SkyWest Leasing segment for the year ended December 31, 2022. During 2023, the Company recorded a $2.3 million loss related to changes in the fair value of the 14 aircraft held for sale which is included in “Other operating expenses” on the Company’s consolidated statements of comprehensive income and in the SkyWest Leasing segment for the year ended December 31, 2023. The Company presented the $54.3 million of assets held for sale at the lower of their current carrying value or their fair market value less costs to sell and included the amount in “Other current assets” on the Company’s consolidated balance sheet. The fair values were based upon observable and unobservable inputs, including a third-party valuation, market trends and condition of the airframes and engines. The assumptions used to determine the fair value of the assets held for sale are subject to inherent uncertainty and could produce a wide range of outcomes which the Company will continue to monitor in future periods as new information becomes available. Prior to the ultimate sale of the assets, subsequent changes in the estimate of the fair value of the assets held for sale will be recorded as a gain or loss with a corresponding adjustment to the assets’ carrying value. |
Special Items
Special Items | 12 Months Ended |
Dec. 31, 2023 | |
Special Items | |
Special Items | (9) Special Items During 2021, the Company recorded a non-cash impairment charge of $84.6 million to write-down certain CRJ900 aircraft to their estimated fair value. In 2021, the Company evaluated its CRJ900 fleet and related CRJ900 assets for impairment. Pursuant to ASC 360-10, “Impairment and Disposal of Long-Lived Assets,” the Company determined that the asset group for the CRJ900 aircraft existed at the major airline partner level. A recoverability test was performed utilizing estimated undiscounted future cash flows for the CRJ900 aircraft pursuant to applicable capacity purchase agreement terms and forecasted cash flow including the estimated value the Company would realize upon disposal of aircraft. This was compared to the carrying value of the related assets resulting in a cash flow deficiency indicating that an impairment existed. The impairment analysis required the Company to perform an assessment of the fair value of its long-lived assets related to the CRJ900 aircraft within the asset groups utilized in the recoverability test. The Company engaged a third party to assist in determining the fair value of these aircraft. These values were estimated based on listed market values or recent third-party market transactions for similar assets, adjusted by the related maintenance status of the fleet. This special item impairment charge is reflected in the SkyWest Airlines operating expenses under Note 2, “Segment Reporting” for the year ended December 31, 2021. |
Payroll Support Programs
Payroll Support Programs | 12 Months Ended |
Dec. 31, 2023 | |
Payroll Support Programs | |
Payroll Support Programs | (10) Payroll Support Programs In 2020 and 2021, the Company entered into three Payroll Support Program Agreements with Treasury that provided certain payroll support relief payments, including the payroll support program established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (“PSP1”), the payroll support program established under the Consolidated Appropriations Act, 2021 (“PSP2”) and the payroll support program established under the American Rescue Plan Act of 2021 (“PSP3”), collectively “Payroll Support Programs”. The relief payments were conditioned on the Company’s agreement to, among other things, refrain from conducting involuntary employee layoffs or furloughs through September 30, 2021. Other conditions included restrictions on share repurchases and dividends through September 30, 2022, continuing EAS as directed by the U.S. Department of Transportation and certain limitations on executive compensation. No grants were received or recognized during 2022 and 2023. In 2020, in connection with the CARES Act, the Company entered into the Treasury Loan Agreement with Treasury (“Secured Loan”) and borrowed $60.0 million under the agreement and in conjunction therewith, issued warrants to purchase shares of the Company’s common stock. During 2021, the Company repaid all amounts outstanding under the secured loan with Treasury, and in connection with See Note 11, “Capital Transactions” for further discussion on the warrants issued to Treasury. |
Capital Transactions
Capital Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Capital Transactions | |
Capital Transactions | (11) 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 7, 2019, the Company’s shareholders approved the adoption of the SkyWest, Inc. 2019 Long-Term Incentive Plan, which provides for the issuance of up to 4,500,000 shares of common stock to the Company’s directors, employees, consultants and advisors (the “2019 Incentive Plan”). The 2019 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 2019 Incentive Plan is subject to a fungible ratio concept, such that the issuance of stock options and stock appreciation rights reduces the number of available shares under the 2019 Incentive Plan on a 1-for-1 basis, and the issuance of other awards reduces the number of available shares under the 2019 Incentive Plan on a 1.65-for-1 basis. The 2019 Incentive Plan is administered by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”). As of December 31, 2023, the 2019 Incentive Plan had 2.6 million plan shares remaining available for future issuance, based on target for granted and unvested performance share units. Stock Options During the years ended December 31, 2023, 2022 and 2021, the Company did not grant any options to purchase shares of common stock to its employees. The Company had no outstanding stock options as of December 31, 2023. The following table summarizes the stock option activity for the years ended December 31, 2023, 2022 and 2021. 2023 2022 2021 Weighted Weighted Average Aggregate Weighted Weighted Average Remaining Intrinsic Average Average Number of Exercise Contractual Value Number of Exercise Number of Exercise Options Price Term ($000) Options Price Options Price Outstanding at beginning of year 6,816 $ 14.78 0.1 years $ 11.8 16,633 $ 14.62 57,653 $ 14.74 Granted — — — — — — Exercised (3,848) 14.78 (9,817) 14.52 (41,020) 14.78 Cancelled (2,968) 14.78 — — — — Outstanding at end of year — $ — 6,816 14.78 16,633 14.62 Exercisable at December 31, 2023 — $ — — years $ — Exercisable at December 31, 2022 6,816 $ 14.78 0.1 years $ 11.8 The total intrinsic value of options to acquire shares of the Company’s common stock that were exercised was $0.1 million for the years ended December 31, 2023 and 2022, and $1.8 million for the year ended December 31, 2021. Restricted Stock Units During the year ended December 31, 2023, the Company granted 127,348 restricted stock units to certain of the Company’s employees under the 2019 Incentive Plan. The restricted stock units granted during the year ended December 31, 2023, have a three-year cliff-vesting period, during which the recipient must remain employed with the Company or its subsidiaries. The weighted average fair value of the restricted stock units at the date of grants made during the year ended December 31, 2023, was $18.77 per share. The following table summarizes the activity of restricted stock units granted to certain Company employees for the years ended December 31, 2023, 2022, and 2021: Weighted-Average Grant-Date Fair Number of RSUs Value Non-vested RSUs outstanding at December 31, 2020 237,977 $ 54.15 Granted 44,770 44.87 Vested (69,184) 53.41 Cancelled (13,390) 52.28 Non-vested RSUs outstanding at December 31, 2021 200,173 $ 52.45 Granted 66,680 32.86 Vested (86,534) 48.69 Cancelled (20,297) 44.91 Non-vested RSUs outstanding at December 31, 2022 160,022 $ 47.28 Granted 127,348 18.77 Vested (65,283) 61.45 Cancelled (19,175) 28.11 Non-vested RSUs outstanding at December 31, 2023 202,912 $ 26.64 Performance Share Units During the year ended December 31, 2023, the Compensation Committee granted performance share units, which are performance-based restricted stock units, to certain Company employees. The PSUs have a three-year vesting period, during which the recipient must remain employed with the Company. The number of performance shares awardable from the 2023 grants can range from 0% to 250% of the original amount granted depending on the Company’s performance over three one-year measurement periods against the pre-established targets. The Company’s compensation expense for performance share units is based upon the projected number of performance share units estimated to be awarded at the conclusion of the performance period. During 2023, the Compensation Committee awarded 40% of the shares related to the performance share grant in 2020 based on the Company’s performance for the three years ended December 31, 2022, measured against the pre-established targets for the same period. This resulted in the forfeiture of 35,328 PSUs in 2023 from target related to the 2020 PSU grant. The Compensation Committee will determine the achievement of performance results and corresponding vesting of performance shares for each year’s grant in 2021, 2022 and 2023 following the conclusion of the respective performance period. At the end of each performance period, the number of shares awarded can range from 0% to 250% of the original target amount for performance share units granted in 2023, 2022 and 2021. The following table summarizes the activity of PSUs for the years ended December 31, 2023, 2022 and 2021. The number of PSUs granted in the table reflects target performance for the grant in each respective year. The number of achieved PSUs (at, above, or below target) are reflected in the year the performance is certified by the Board, as indicated in the table: Weighted-Average Grant-Date Fair Number of PSUs Value Non-vested PSUs outstanding at December 31, 2020 196,609 $ 54.17 Granted 157,210 44.87 PSUs forfeited from the 2018 grant due to performance (11,392) 53.41 Vested (45,644) 53.41 Cancelled (3,991) 53.30 Non-vested PSUs outstanding at December 31, 2021 292,792 $ 49.39 Granted 225,345 32.73 PSUs forfeited from the 2019 grant due to performance (45,695) 48.87 Vested (30,480) 48.87 Cancelled (13,032) 41.81 Non-vested PSUs outstanding at December 31, 2022 428,930 $ 40.96 Granted 391,810 18.65 PSUs forfeited from the 2020 grant due to performance (35,328) 61.45 Vested (23,528) 61.45 Cancelled (2,154) 48.07 Non-vested PSUs outstanding at December 31, 2023 759,730 $ 27.85 As of December 31, 2023, the Company had $22.1 million of total unrecognized compensation cost related to non-vested restricted stock grants and non-vested performance stock units. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures and estimates of the Company’s future performance for unvested performance share units. The Company expects to recognize this cost over a weighted average period of 1.7 years. Taxes The Company’s treatment of stock option grants of non-qualified options, restricted stock units and performance shares results in the creation of a deferred tax asset, which is a temporary difference, until the time that the option is exercised or the restrictions lapse. Warrants In 2020 and 2021, the Company issued to Treasury warrants to purchase shares of the Company’s common stock under the Payroll Support Programs and Secured Loan. The weighted average grant-date fair value of these warrants was estimated The following table summarizes the warrants issued under the payroll support programs and secured loan facility: Number of Warrants Exercise Price Weighted Average Grant-Date Fair Value PSP1 370,720 $ 28.38 $ 13.57 Secured Loan 211,416 $ 28.38 $ 15.22 PSP2 124,773 $ 40.41 $ 32.52 PSP3 78,317 $ 57.47 $ 22.31 Total 785,226 |
Retirement Plans and Employee S
Retirement Plans and Employee Stock Purchase Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Plans and Employee Stock Purchase Plans | |
Retirement Plans and Employee Stock Purchase Plans | (12) Retirement Plans and Employee Stock Purchase Plans SkyWest Retirement Plan The Company sponsors the SkyWest, Inc. Employees’ Retirement Plan (the “SkyWest Plan”). Subject to certain specified exceptions, all employees of the Company are eligible to participate in the SkyWest Plan. Employees may elect to make contributions to the SkyWest Plan. Generally, the Company matches 100% of such contributions up to levels ranging from 2% to 12% of compensation, based on position and years of service. Eligible employees who are SAPA pilots and SWC captains are eligible for non-elective profit sharing contributions ranging from 0% to 20%, based on position and years of service. Additionally, a discretionary contribution may be made by the Company. The Company’s combined contributions to the SkyWest Plan were $59.3 million, $45.4 million and $42.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. 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 $25,000 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, 2023, 2022 and 2021: Year ended December 31, 2023 2022 2021 Number of shares purchased 117,350 105,606 63,962 Average price of shares purchased $ 23.47 $ 26.66 $ 39.70 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, 2023, 2022, and 2021. |
Stock Repurchase
Stock Repurchase | 12 Months Ended |
Dec. 31, 2023 | |
Stock Repurchase | |
Stock Repurchase | (13) Stock Repurchase The Company’s Board of Directors adopted stock repurchase programs in both February 2019 and May 2023, which authorize the Company to repurchase shares of the Company’s common stock in the public market or in private transactions, from time to time, at prevailing prices. The Company’s February 2019 stock repurchase During the year ended December 31, 2023, the Company repurchased 10.6 million shares of common stock for $289.1 million at a weighted average price per share of $27.30, of which $130.0 million was repurchased under the February 2019 stock repurchase program and $159.1 million was repurchased under the May 2023 stock repurchase program. The Company also recorded $2.9 million of excise tax related to the stock repurchases as Treasury Stock in the Company’s Stockholders Equity for the year ended December 31, 2023. The Company did not have any stock repurchases during the years ended December 31, 2022 and 2021. Additionally, during the years ended December 31, 2023, 2022 and 2021, the Company paid $0.6 million, $1.2 million and $1.6 million, respectively, for a net settlement of the income tax obligation on employee equity awards that vested during the applicable periods. |
Investments in Other Companies
Investments in Other Companies | 12 Months Ended |
Dec. 31, 2023 | |
Investments in Other Companies | |
Investments in Other Companies | (14) Investments in Other Companies Equity Method Investments During 2019, the Company created a joint venture with Regional One, Inc. (“Regional One”) and, as of December 31, 2023, has invested a total of $26.6 million for a 75% ownership interest in Aero Engines, LLC. (“Aero Engines”). The primary purpose of Aero Engines is to lease engines to third parties. Aero Engines requires unanimous approval from the Company and Regional One for all material transactions. Although the Company determined Aero Engines is a variable interest entity, Aero Engines has no primary beneficiary as the voting rights are disproportionate to the ownership rights. Accordingly, the Company accounts for its investment in Aero Engines under the equity method. The Company’s exposure in its investment in Aero Engines primarily consists of the Company’s portion of income or loss from Aero Engines’ engine lease agreements with third parties and the Company’s ownership percentage in Aero Engines’ engines book value. Aero Engines had no debt outstanding as of December 31, 2023. As of December 31, 2023, the Company’s investment balance in Aero Engines was $25.1 million. The Company’s investment in Aero Engines has been recorded in “Other Assets” on the Company’s consolidated balance sheet. The Company’s portion of the income generated by Aero Engines for the year ended December 31, 2023, was $0.2 million, which is recorded in “Other income (loss), net” on the Company’s consolidated statements of comprehensive income. In December 2023, the Company invested $9.9 million for a 9.9% ownership interest in Corporate Flight Management, Inc. d/b/a C 14 CFR Part 135 air carrier. The Company holds one of five seats, or 20% , on Contour’s board of directors. The Contour arrangement also includes an asset provisioning agreement under which the Company will provide CRJ airframes, engines and rotable parts to Contour. Subsequent to December 31, 2023, the Company increased its investment in Contour to $25.0 million for a 25.0% ownership interest. The The Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. Fair Value Method Investment In 2022, the Company acquired 1,000,000 shares of common stock of Eve and a warrant giving the Company the right to acquire 1,500,000 shares of common stock of Eve at an exercise price of $0.01 per share. The Company also received a put option from an Eve shareholder for the 1,000,000 shares of common stock of Eve payable in aircraft parts credits. The intent of the put option is to reduce the Company’s investment risk in Eve, and the put option expires in December 2031. The Company acquired the shares of common stock, warrant and put option (collectively the “Eve Investments”) for $10.0 million. The Company evaluated the Eve Investments under ASC Topic 321, “Investments – Equity Securities” and ASC Topic 815, “Derivatives and Hedging,” and recorded the Eve Investments based on their pro rata share of the consideration paid using the fair value of the Eve Investments on the acquisition date, with subsequent changes in the fair value reported in earnings. During the year ended December 31, 2023, the Company sold 600,411 shares of common stock of Eve, which concurrently forfeited the 600,411 shares subject to the put option from the Eve shareholder. The shares of common stock of Eve are classified as Level 1 within the fair value hierarchy as Eve stock is actively traded on the New York Stock Exchange, and the value is determined using quoted market prices for the equity security. Company used the Black Scholes Option Pricing Model to determine the estimated fair market value of the , including an expected volatility of 52% , which is a derived from historical volatility of comparable companies. The table below shows the reconciliation of the Eve Level 3 Investments (in thousands): Eve Level 3 Investments: Balance at December 31, 2021 $ — Purchases 6,551 Unrealized gains 7,629 Balance at December 31, 2022 $ 14,180 Purchases — Realized loss on forfeiture of put options (827) Unrealized loss (876) Balance at December 31, 2023 $ 12,477 The Company recognized a realized gain of $2.1 million from the sale of the Eve shares, net of the forfeited put options, and unrealized losses of $3.1 million related to the Eve Investments, both were included in “Other income (loss), net” on the Company’s consolidated statements of comprehensive income for the year ended December 31, 2023. As of December 31, 2023, the fair value of the Eve Investments was $15.4 million and was recorded in “Other Assets” on the Company’s consolidated balance sheet. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SKYWEST, INC. AND SUBSIDIARIES SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December 31, 2023, 2022 and 2021 (Dollars in thousands) Additions Balance at Charged to Beginning Costs and Balance at Description of Year Expenses Deductions End of Year Year Ended December 31, 2023 Allowance for inventory obsolescence $ 24,206 $ 1,883 $ — $ 26,089 Allowance for credit losses 37,385 — (18,686) 18,699 $ 61,591 $ 1,883 $ (18,686) $ 44,788 Year Ended December 31, 2022 Allowance for inventory obsolescence $ 22,956 $ 1,250 $ — $ 24,206 Allowance for credit losses 41,976 — (4,591) 37,385 $ 64,932 $ 1,250 $ (4,591) $ 61,591 Year Ended December 31, 2021 Allowance for inventory obsolescence $ 19,676 $ 3,280 $ — $ 22,956 Allowance for credit losses 46,225 — (4,249) 41,976 $ 65,901 $ 3,280 $ (4,249) $ 64,932 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 the Company and the SkyWest Airlines and SWC and SkyWest Leasing segments, 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, 2023, through the filing date 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 (“GAAP”) 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 materially from those estimates and assumptions. |
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 had no restricted cash as of December 31, 2023 and 2022. |
Marketable Securities | Marketable Securities The Company’s investments in debt securities are classified as 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, 2023 and 2022 was as follows (in thousands): Gross unrealized Gross unrealized At December 31, 2023 Amortized Cost holding gains holding losses Fair market value Marketable securities: Bond and bond funds $ 676,644 $ 430 $ — $ 677,074 Commercial Paper 9,872 — — 9,872 Total marketable securities $ 686,516 $ 430 $ — $ 686,946 Gross unrealized Gross unrealized At December 31, 2022 Amortized Cost holding gains holding losses Fair market value Marketable securities: Bond and bond funds $ 629,280 $ — $ (5,026) $ 624,254 Commercial Paper 319,977 — — 319,977 Total marketable securities $ 949,257 $ — $ (5,026) $ 944,231 |
Inventories | Inventories Inventories include expendable parts, fuel and supplies and are valued at cost (FIFO basis) less an allowance for obsolescence based on historical part turnover, excess parts 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, anticipated part usage and salvage values. The inventory allowance as of December 31, 2023 and 2022, was $26.1 million and $24.2 million, respectively. |
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 Current Residual Value Aircraft, rotable spares, and spare engines up to 22 years up to 20 % Ground equipment up to 10 years 0 % Office equipment up to 5 years 0 % Leasehold improvements Shorter of 15 years or lease term 0 % Buildings 20 - 39.5 years 0 % |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets As of December 31, 2023, the Company had approximately $5.5 billion of property and equipment, net. In accounting for these long-lived assets, the Company makes estimates about the expected useful lives of the assets, the expected residual values of such assets, and the potential for impairment based on projected future cash flows and estimated fair value of the assets. 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, the Company groups 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 aircraft type level. During 2022, the Company committed to a plan to sell 14 CRJ700 aircraft, resulting in an impairment on the assets held for sale of $51.4 million. During 2023, the Company wrote-down the assets held for sale for an additional $2.3 million. See Note 8, “Assets Held for Sale” for more information on the assets held for sale. |
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, 2023, 2022 and 2021, the Company capitalized interest costs of approximately $1.5 million, $1.9 million and $1.9 million, respectively. |
Maintenance | Maintenance The Company operates under a U.S. Federal Aviation Administration approved continuous inspection and maintenance program. The Company uses the direct expense method of accounting for its regional jet engine overhauls. The Company has engine services agreements with third-party vendors to provide long-term engine services covering the scheduled and unscheduled repairs for most of its aircraft. Under the terms of the agreements, the Company pays a fixed dollar amount per engine hour flown per month and the third-party vendors 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 each contract. The repair costs for engines not covered by these hourly service agreements are expensed when repair services are incurred. The costs of maintenance for airframe and avionics components, landing gear and other recurring maintenance are expensed as incurred. |
Flying Agreements and Airport Customer Service and Other Revenues | Flying Agreements and Airport Customer Service and Other Revenues The Company recognizes revenue under its flying agreements and under its lease, airport services and other service agreements when the service is provided under the applicable agreement. Under the Company’s capacity purchase agreements with United, Delta, American and Alaska (each, a “major airline partner”), the major airline partner generally pays the Company a fixed-fee for each departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time) incurred, and an amount per aircraft in service each month (a portion of which is accounted for as aircraft lease consideration), with additional incentives based on flight completion, on-time performance or other performance metrics. The major airline partner also directly pays for or reimburses the Company for certain direct expenses incurred under the capacity purchase agreement, such as fuel, airport landing fees and airport rents. Under the capacity purchase agreements, the Company’s performance obligation is met when each flight is completed, measured in completed block hours, and is reflected in flying agreements revenue. The transaction price for the capacity purchase agreements is determined from the fixed-fee consideration, incentive consideration and directly reimbursed expenses earned as flights are completed over the agreement term. For the years ended December 31, 2023, 2022 and 2021, capacity purchase arrangements represented approximately 86.5%, 88.0% and 84.3% of the Company’s flying agreements revenue, respectively. Under the Company’s prorate arrangements (also referred to as a “prorate” agreements), the major airline partner and the Company negotiate a passenger fare proration formula, pursuant to which the Company receives a percentage of the ticket revenues for those passengers traveling for one portion of their trip on a Company airline and the other portion of their trip on the major airline partner. Under the Company’s prorate flying agreements, the performance obligation is met and revenue is recognized when each flight is completed based upon the portion of the prorate passenger fare the Company determines that it will receive for each completed flight. The transaction price for the prorate agreements is determined from the proration formula derived from each passenger ticket amount on each completed flight over the agreement term. Certain routes under the Company’s prorate arrangements are subsidized by the U.S. Department of Transportation under the Essential Air Service (“EAS”) program, a program created to ensure small communities in the United States maintain a minimum level of scheduled air service. The EAS contracts are generally two years in duration and the Company recognizes EAS revenue on a per-completed-flight basis pursuant to the terms of each contract. Under the Company’s charter operations, SWC, the Company negotiates a fare for the charter flight with the customer. The performance obligation is met and revenue is recognized upon completion of the flight. For the years ended December 31, 2023, 2022 and 2021, prorate flying agreements and SWC revenue represented approximately 13.5%, 12.0%, and 15.7% of the Company’s flying agreements revenue, respectively. The following table represents the Company’s flying agreements revenue by type for the years ended December 31, 2023, 2022 and 2021 (in thousands): For the year ended December 31, 2023 2022 2021 Capacity purchase agreements flight operations revenue (non-lease component) $ 1,976,743 $ 2,028,308 $ 1,678,219 Capacity purchase agreements fixed aircraft lease revenue 296,047 504,529 527,173 Capacity purchase agreements variable aircraft lease revenue 180,218 17,664 — Prorate agreements and SWC revenue 381,389 349,336 409,684 Flying agreements revenue $ 2,834,397 $ 2,899,837 $ 2,615,076 The Company allocates the total consideration received under its capacity purchase agreements between lease and non-lease components based on stand-alone selling prices. A portion of the Company’s compensation under its capacity purchase agreements is designed to reimburse the Company for certain aircraft ownership costs. The consideration for aircraft ownership costs varies by agreement but is intended to cover either the Company’s aircraft principal and interest debt service costs, its aircraft depreciation and interest expense or its aircraft lease expense costs while the aircraft is under contract. The consideration received for the use of the aircraft under the Company’s capacity purchase agreements is accounted for as lease revenue, inasmuch as the agreements identify the “right of use” of a specific type and number of aircraft over a stated period of time. The lease revenue associated with the Company’s capacity purchase agreements is accounted for as an operating lease and is reflected as flying agreements revenue on the Company’s consolidated statements of comprehensive income. During the three months ended December 31, 2022, the Company amended certain of its capacity purchase agreements resulting in a portion of the Company’s aircraft lease revenue becoming variable beginning in the fourth quarter of 2022. As a result of these capacity purchase agreement amendments executed in 2022, during the year ended December 31, 2023, the Company deferred recognizing lease revenue on $78.5 million of the allocated fixed monthly lease payments received during the year ended December 31, 2023, under the straight-line method. The Company deferred recognizing lease revenue on $22.1 million of the allocated fixed monthly lease payments received during the year ended December 31, 2022, under the straight-line method. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of comprehensive income because the use of the aircraft is not a separate activity of the total service provided under the capacity purchase agreements. A portion of the Company’s compensation under its capacity purchase agreements relates to operating the aircraft, identified as the non-lease component of the capacity purchase agreement. The Company recognizes revenue attributed to the non-lease component received as fixed-fees for each departure, flight hour or block hour on an as-completed basis for each reporting period. The Company recognizes revenue attributed to the non-lease component received as fixed monthly payments per aircraft proportionate to the number of block hours completed during each reporting period, relative to the estimated number of block hours the Company anticipates completing over the remaining contract term. Accordingly, the Company’s revenue recognition will likely vary from the timing of cash receipts under the Company’s capacity purchase agreements. The Company refers to cash received under its capacity purchase agreements prior to recognizing revenue as “deferred revenue,” and the Company refers to revenue recognized prior to billing its major airline partners under its capacity purchase agreements as “unbilled revenue” for each reporting period. The Company’s total deferred revenue balance as of December 31, 2023, was $374.6 million, including $61.0 million in other current liabilities and $313.6 million in other long-term liabilities. The Company’s unbilled revenue balance as of December 31, 2023, was $7.3 million, including $1.2 million in other current assets and $6.1 million in other long-term assets. The Company’s total deferred revenue balance as of December 31, 2022, was $144.7 million, including $5.2 million in other current liabilities and $139.5 million in other long-term liabilities. T In several of the Company’s agreements, the Company is eligible to receive incentive compensation upon the achievement of certain performance criteria. The incentives are defined in the agreements and are measured and determined on a monthly, quarterly or semi-annual basis. At the end of each period during the term of an agreement, the Company calculates the incentives achieved during that period and recognizes revenue attributable to that agreement accordingly, subject to the variable constraint guidance under Accounting Standard Codification (“ASC”) Topic 606. The following summarizes the significant provisions of each code-share agreement the Company has with each major airline partner through SkyWest Airlines: United Express Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates United Express Agreements (capacity purchase agreement) · E175 · CRJ 700 · CRJ 200 90 19 70 · Individual aircraft have scheduled removal dates under the agreement between 2024 and 2029 · The average remaining term of the aircraft under contract is 2.7 years United Express Prorate Agreement (prorate agreement) · CRJ 200 *19 · Terminable with 120 Total under United Express Agreements 198 Delta Connection Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates Delta Connection Agreement (capacity purchase agreement) · E175 · CRJ 900 · CRJ 700 85 35 5 · Individual aircraft have scheduled removal dates from 2024 to 2034 · The average remaining term of the aircraft under contract is 4.8 years Delta Connection Prorate Agreement (prorate agreement) · CRJ 900 · CRJ 700 6* 4* · Terminable with 30 Total under Delta Connection Agreements 135 American Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates American Agreement (capacity purchase agreement) · E175 · CRJ 700 20 90 · Individual aircraft have scheduled removal dates from 2024 to 2032 · The average remaining term of the aircraft under contract is 3.1 years Total under American Agreement 110 Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates Alaska Agreement (capacity purchase agreement) · E175 42 · Individual aircraft have scheduled removal dates from 2030 to 2034 · The average remaining term of the aircraft under contract is 7.5 years * The Company’s prorate agreements are based on specific routes, not a specific aircraft count. The number of aircraft listed above for each prorate agreement approximates the number of aircraft the Company uses to serve the prorate routes. In addition to the contractual arrangements described above, as of December 31, 2023, SkyWest Airlines reached agreements to place the following E175 aircraft under a capacity purchase agreement with the respective partners: 2024 2025 2026 Total Delta Air Lines 1 — — 1 United Airlines 4 7 8 19 Alaska Airlines — 1 — 1 Total 5 8 8 21 Final delivery and in-service dates for aircraft to be placed under contract may be adjusted based on various factors. When an aircraft is scheduled to be removed from a capacity purchase arrangement, the Company may, as practical under the circumstances, negotiate an extension with the respective major airline partner, negotiate the placement of the aircraft with another major airline partner, return the aircraft to the major airline partner when the aircraft is leased from the major airline partner, place owned aircraft for sale or pursue other uses for the aircraft. Other uses for the aircraft may include placing the aircraft in a prorate agreement, leasing the aircraft or engines to a third party or disassembling aircraft components such as the engines and parts to be used as spare inventory. Lease, airport services and other revenues primarily consists of revenue generated from aircraft and spare engines leased to third parties and from airport customer service agreements, such as gate and ramp agent services at various airports where the Company has been contracted by third parties to provide such services. The following table represents the Company’s lease, airport services and other revenues for the years ended December 31, 2023, 2022 and 2021 (in thousands): For the year ended December 31, 2023 2022 2021 Operating lease revenue $ 47,554 $ 48,714 $ 46,532 Operating lease revenue relating to variable lease payments 18,420 17,050 19,998 Airport customer service and other revenue 35,061 39,324 31,885 Lease, airport services and other $ 101,035 $ 105,088 $ 98,415 2024 $ 46,119 2025 41,172 2026 35,630 2027 35,586 2028 35,024 Thereafter 53,122 Total future minimum rental income under operating leases $ 246,653 Of the Company’s $5.5 billion of property and equipment, net as of December 31, 2023, $216.0 million of regional jet aircraft and spare engines were leased to third parties under operating leases. The Company’s mitigation strategy for the residual asset risks of these assets includes leasing aircraft and engine types that can be operated by the Company in the event of a default. Additionally, the operating leases typically have specified lease return condition requirements paid by the lessee to the Company and the Company typically maintains inspection rights under the leases. The transaction price for airport customer service agreements is determined from an agreed-upon rate by location applied to the applicable number of flights handled by the Company over the agreement term. The Company’s operating revenues could be impacted by several factors, including changes to the Company’s code-share agreements with its major airline partners, changes in flight schedules, contract modifications resulting from contract renegotiations, 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 airline partners. 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. As of December 31, 2023, the Company had $82.9 million in accounts receivable of which $73.6 million related to flying agreements. As of December 31, 2022, the Company had $100.5 million in accounts receivable of which $73.7 million related to flying agreements. |
Allowance for Credit Losses | Allowance for Credit Losses The Company monitors publicly available credit ratings for entities for which the Company has a significant receivable balance. As of December 31, 2023, the Company had gross receivables of $86.1 million in current assets and gross receivables of $199.8 million in other long-term assets. The Company has established credit loss reserves based on publicly available historic default rates issued by a third party for companies with similar credit ratings, factoring in the term of the respective accounts receivable or note receivable. During the year ended December 31, 2023, the Company recorded $0.2 million of adjustments to the credit loss reserve and wrote-off $18.5 million in receivables that were fully reserved as of December 31, 2022. There were no other significant changes in the outstanding accounts receivable, notes receivable or credit ratings of the entities. The following table summarizes the changes in allowance for credit losses: Allowance for Credit Losses Balance at December 31, 2020 $ 46,225 Adjustments to credit loss reserves (4,249) Write-offs charged against allowance — Balance at December 31, 2021 $ 41,976 Adjustments to credit loss reserves (4,591) Write-offs charged against allowance — Balance at December 31, 2022 $ 37,385 Adjustments to credit loss reserves (185) Write-offs charged against allowance (18,501) Balance at December 31, 2023 $ 18,699 |
Income Taxes | Allowance for Credit Losses Balance at December 31, 2020 $ 46,225 Adjustments to credit loss reserves (4,249) Write-offs charged against allowance — Balance at December 31, 2021 $ 41,976 Adjustments to credit loss reserves (4,591) Write-offs charged against allowance — Balance at December 31, 2022 $ 37,385 Adjustments to credit loss reserves (185) Write-offs charged against allowance (18,501) Balance at December 31, 2023 $ 18,699 |
Net Income Per Common Share | Net Income Per Common Share Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income 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 per common share. Securities that could potentially dilute Basic EPS in the future, and which were excluded from the calculation of Diluted EPS because inclusion of such share would be anti-dilutive, are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Treasury Warrants (1) 286 640 78 Employee Stock Awards 15 219 — Total antidilutive securities 301 859 78 (1) U.S. Department of the Treasury (“Treasury”) warrants to purchase shares of SkyWest common stock issued pursuant to the three Payroll Support Program Agreements and a loan agreement . See Note 10, “Payroll Support Programs” and Note 11, “Capital Transactions” for further discussion on the warrants issued to Treasury. Additionally, for the years ended December 31, 2023, 2022 and 2021, 334,000, 146,000 and 140,000 performance share units (at target performance) were excluded from the computation of Diluted EPS since the Company had not achieved the minimum target thresholds for these units as of December 31, 2023, 2022 and 2021, respectively. 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, 2023, 2022 and 2021 (in thousands): Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 34,342 $ 72,953 $ 111,910 Denominator: Basic earnings per share weighted average shares 43,940 50,548 50,348 Dilution due to employee equity awards and warrants 659 96 405 Diluted earnings per share weighted average shares 44,599 50,644 50,753 Basic earnings per share $ 0.78 $ 1.44 $ 2.22 Diluted earnings per share $ 0.77 $ 1.44 $ 2.20 |
Comprehensive Income | Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 34,342 $ 72,953 $ 111,910 Denominator: Basic earnings per share weighted average shares 43,940 50,548 50,348 Dilution due to employee equity awards and warrants 659 96 405 Diluted earnings per share weighted average shares 44,599 50,644 50,753 Basic earnings per share $ 0.78 $ 1.44 $ 2.22 Diluted earnings per share $ 0.77 $ 1.44 $ 2.20 |
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, the Company has estimated the fair values of these securities utilizing a discounted cash flow analysis. 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. Certain investments in other companies are reported at fair value based on market quoted prices or using the Black Scholes Option Pricing model in the consolidated balance sheets. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt. |
Segment Reporting | Segment Reporting GAAP requires 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 reportable segments consist of (1) the operations of SkyWest Airlines and SWC (collectively, “SkyWest Airlines and SWC”) and (2) SkyWest Leasing activities. I nformation pertaining to the Company’s reportable segments is presented in Note 2, Segment Reporting . The Company has two reportable segments: (1) SkyWest Airlines and SWC and (2) SkyWest Leasing. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the FASB issued Accounting Standards Update No. 2023-07, “Segment Reporting (ASC Topic 280) – Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (ASC Topic 740) – Improvements to Income Tax Disclosures”, which enhances the transparency, effectiveness and comparability of income tax disclosures by requiring consistent categories and greater disaggregation of information related to income tax rate reconciliations and the jurisdictions in which income taxes are paid. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Schedule of number of aircraft held by entity | E175 CRJ900 CRJ700 CRJ200 Total United 90 — 19 89 198 Delta 85 41 9 — 135 American 20 — 90 — 110 Alaska 42 — — — 42 Aircraft in scheduled service or under contract 237 41 118 89 485 SWC — — — 16 16 Leased to third parties — 5 35 — 40 Other (1) — 3 14 45 62 Total Fleet 237 49 167 150 603 (1) As of December 31, 2023, other aircraft included: supplemental spare aircraft supporting the Company’s code-share agreements that may be placed under future code-share or leasing arrangements, aircraft transitioning between code-share agreements with the Company’s major airline partners, aircraft held-for-sale or aircraft that are scheduled to be disassembled for use as spare parts. |
Schedule of marketable securities | Gross unrealized Gross unrealized At December 31, 2023 Amortized Cost holding gains holding losses Fair market value Marketable securities: Bond and bond funds $ 676,644 $ 430 $ — $ 677,074 Commercial Paper 9,872 — — 9,872 Total marketable securities $ 686,516 $ 430 $ — $ 686,946 Gross unrealized Gross unrealized At December 31, 2022 Amortized Cost holding gains holding losses Fair market value Marketable securities: Bond and bond funds $ 629,280 $ — $ (5,026) $ 624,254 Commercial Paper 319,977 — — 319,977 Total marketable securities $ 949,257 $ — $ (5,026) $ 944,231 |
Schedule of property and equipment | Assets Depreciable Life Current Residual Value Aircraft, rotable spares, and spare engines up to 22 years up to 20 % Ground equipment up to 10 years 0 % Office equipment up to 5 years 0 % Leasehold improvements Shorter of 15 years or lease term 0 % Buildings 20 - 39.5 years 0 % |
Schedule of aircraft and agreements with major airline partners | United Express Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates United Express Agreements (capacity purchase agreement) · E175 · CRJ 700 · CRJ 200 90 19 70 · Individual aircraft have scheduled removal dates under the agreement between 2024 and 2029 · The average remaining term of the aircraft under contract is 2.7 years United Express Prorate Agreement (prorate agreement) · CRJ 200 *19 · Terminable with 120 Total under United Express Agreements 198 Delta Connection Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates Delta Connection Agreement (capacity purchase agreement) · E175 · CRJ 900 · CRJ 700 85 35 5 · Individual aircraft have scheduled removal dates from 2024 to 2034 · The average remaining term of the aircraft under contract is 4.8 years Delta Connection Prorate Agreement (prorate agreement) · CRJ 900 · CRJ 700 6* 4* · Terminable with 30 Total under Delta Connection Agreements 135 American Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates American Agreement (capacity purchase agreement) · E175 · CRJ 700 20 90 · Individual aircraft have scheduled removal dates from 2024 to 2032 · The average remaining term of the aircraft under contract is 3.1 years Total under American Agreement 110 Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates Alaska Agreement (capacity purchase agreement) · E175 42 · Individual aircraft have scheduled removal dates from 2030 to 2034 · The average remaining term of the aircraft under contract is 7.5 years 2024 2025 2026 Total Delta Air Lines 1 — — 1 United Airlines 4 7 8 19 Alaska Airlines — 1 — 1 Total 5 8 8 21 |
Schedule of future minimum rental payments for operating leases | The following table summarizes future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms as of December 31, 2023 (in thousands): 2024 $ 19,924 2025 17,503 2026 13,752 2027 12,554 2028 9,762 Thereafter 55,568 Total future minimum operating lease payments $ 129,063 |
Schedule of allowance for credit losses | The following table summarizes the changes in allowance for credit losses: Allowance for Credit Losses Balance at December 31, 2020 $ 46,225 Adjustments to credit loss reserves (4,249) Write-offs charged against allowance — Balance at December 31, 2021 $ 41,976 Adjustments to credit loss reserves (4,591) Write-offs charged against allowance — Balance at December 31, 2022 $ 37,385 Adjustments to credit loss reserves (185) Write-offs charged against allowance (18,501) Balance at December 31, 2023 $ 18,699 |
Schedule of net income (loss) per common share | Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 34,342 $ 72,953 $ 111,910 Denominator: Basic earnings per share weighted average shares 43,940 50,548 50,348 Dilution due to employee equity awards and warrants 659 96 405 Diluted earnings per share weighted average shares 44,599 50,644 50,753 Basic earnings per share $ 0.78 $ 1.44 $ 2.22 Diluted earnings per share $ 0.77 $ 1.44 $ 2.20 |
Schedule of antidilutive securities excluded from calculation of diluted EPS | Year Ended December 31, 2023 2022 2021 Treasury Warrants (1) 286 640 78 Employee Stock Awards 15 219 — Total antidilutive securities 301 859 78 (1) U.S. Department of the Treasury (“Treasury”) warrants to purchase shares of SkyWest common stock issued pursuant to the three Payroll Support Program Agreements and a loan agreement . See Note 10, “Payroll Support Programs” and Note 11, “Capital Transactions” for further discussion on the warrants issued to Treasury. |
Flying agreements | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Schedule of revenue by type | The following table represents the Company’s flying agreements revenue by type for the years ended December 31, 2023, 2022 and 2021 (in thousands): For the year ended December 31, 2023 2022 2021 Capacity purchase agreements flight operations revenue (non-lease component) $ 1,976,743 $ 2,028,308 $ 1,678,219 Capacity purchase agreements fixed aircraft lease revenue 296,047 504,529 527,173 Capacity purchase agreements variable aircraft lease revenue 180,218 17,664 — Prorate agreements and SWC revenue 381,389 349,336 409,684 Flying agreements revenue $ 2,834,397 $ 2,899,837 $ 2,615,076 |
Airport customer service and other revenue | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Schedule of revenue by type | represents the Company’s lease, airport services and other revenues for the years ended December 31, 2023, 2022 and 2021 (in thousands): For the year ended December 31, 2023 2022 2021 Operating lease revenue $ 47,554 $ 48,714 $ 46,532 Operating lease revenue relating to variable lease payments 18,420 17,050 19,998 Airport customer service and other revenue 35,061 39,324 31,885 Lease, airport services and other $ 101,035 $ 105,088 $ 98,415 |
Aircraft | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Schedule of future minimum rental payments for operating leases | 2024 $ 46,119 2025 41,172 2026 35,630 2027 35,586 2028 35,024 Thereafter 53,122 Total future minimum rental income under operating leases $ 246,653 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting | |
Schedule of Company's segment data | The following represents the Company’s segment data for the years ended December 31, 2023, 2022, and 2021 (in thousands). Year ended December 31, 2023 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 2,392,174 $ 543,258 $ 2,935,432 Operating expense 2,566,946 264,417 2,831,363 Depreciation and amortization expense 149,264 233,851 383,115 Interest expense 17,053 113,877 130,930 Segment profit (loss) (2) (191,825) 164,964 (26,861) Total assets (as of December 31, 2023) 2,537,834 4,488,459 7,026,293 Capital expenditures (including non-cash) 113,783 150,126 263,909 Year ended December 31, 2022 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 2,492,318 $ 512,607 $ 3,004,925 Operating expense 2,525,076 298,687 2,823,763 Depreciation and amortization expense 182,475 212,077 394,552 Interest expense 12,805 114,278 127,083 Segment profit (loss) (2) (45,563) 99,642 54,079 Total assets (as of December 31, 2022) 2,977,804 4,436,749 7,414,553 Capital expenditures (including non-cash) 82,891 579,426 662,317 Year ended December 31, 2021 SkyWest Airlines SkyWest and SWC Leasing Consolidated Operating revenues (1) $ 2,192,432 $ 521,059 $ 2,713,491 Operating expense 2,177,524 260,100 2,437,624 Depreciation and amortization expense 210,281 229,917 440,198 Special items - impairment charges 84,592 — 84,592 Interest expense 13,360 109,762 123,122 Segment profit (2) 1,548 151,197 152,745 Total assets (as of December 31, 2021) 2,957,745 4,168,202 7,125,947 Capital expenditures (including non-cash) 128,712 438,325 567,037 (1) Prorate revenue and airport customer service revenue are reflected in the SkyWest Airlines and SWC segment. (2) Segment profit (loss) is equal to operating income less interest expense. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-term Debt | |
Schedule of long-term debt | Long-term debt consisted of the following as of December 31, 2023 and 2022 (in thousands): December 31, December 31, 2023 2022 Notes payable to banks, due in quarterly installments, plus interest at 2.33% to 5.95% through 2035, secured by aircraft $ 2,302,578 $ 2,604,058 Notes payable to banks, due in monthly or semi-annual installments, plus interest at 2.68% to 5.94% through 2032, secured by aircraft and engines 527,092 604,613 Notes payable to U.S. Government, interest due quarterly at 1.00% through 2025 and based on SOFR plus 2.0% from 2025 through 2031, unsecured 200,640 200,640 Long-term debt $ 3,030,310 $ 3,409,311 Current portion of long-term debt (447,534) (442,360) Less long-term portion of unamortized debt issue cost, net (20,593) (25,179) Long-term debt, net of current maturities and debt issue costs $ 2,562,183 $ 2,941,772 Current portion of long-term debt $ 447,534 $ 442,360 Less current portion of unamortized debt issue cost, net (3,665) (3,858) Current portion of long-term debt, net of debt issue costs $ 443,869 $ 438,502 |
Schedule of maturities of long-term debt | The aggregate amounts of principal maturities of long-term debt as of December 31, 2023 were as follows (in thousands): 2024 $ 447,534 2025 532,314 2026 510,625 2027 464,280 2028 292,812 Thereafter 782,745 $ 3,030,310 |
Carrying value and fair value of long-term debt | December 31, 2023 December 31, 2022 Carrying value $ 3,030,310 $ 3,409,311 Fair value $ 2,918,012 $ 3,264,704 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of components of provision (benefit) for income taxes | The provision for income taxes includes the following components (in thousands): Year ended December 31, 2023 2022 2021 Current tax provision (benefit): Federal $ 4,962 $ (7,319) $ — State 1,794 1,813 846 6,756 (5,506) 846 Deferred tax provision (benefit): Federal (678) 21,587 32,510 State (111) 3,549 5,344 (789) 25,136 37,854 Provision for income taxes $ 5,967 $ 19,630 $ 38,700 |
Schedule of income tax rate reconciliation | Year ended December 31, 2023 2022 2021 Current tax provision (benefit): Federal $ 4,962 $ (7,319) $ — State 1,794 1,813 846 6,756 (5,506) 846 Deferred tax provision (benefit): Federal (678) 21,587 32,510 State (111) 3,549 5,344 (789) 25,136 37,854 Provision for income taxes $ 5,967 $ 19,630 $ 38,700 |
Schedule of components of the net deferred tax assets and liabilities | The significant components of the Company’s net deferred tax assets and liabilities as of December 31, 2023 and 2022, are as follows (in thousands): As of December 31, 2023 2022 Deferred tax assets: Accrued benefits $ 28,889 $ 29,154 Net operating loss carryforward 130,478 186,517 Aircraft credits 93,189 77,962 Deferred revenue 91,809 35,385 Operating lease liabilities 21,207 39,209 Interest deduction limitation 11,563 26,469 Accrued reserves and other 64,971 49,972 Total deferred tax assets 442,106 444,668 Valuation allowance (630) (1,716) Deferred tax liabilities: Accelerated depreciation (1,108,042) (1,094,538) Operating lease right-of-use assets (21,034) (35,474) Total deferred tax liabilities (1,129,076) (1,130,012) Net deferred tax liability $ (687,600) $ (687,060) |
Schedule of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2023, 2022, and 2021 is as follows (in thousands) : Year ended December 31, 2023 2022 2021 Unrecognized tax benefits at the beginning of year $ 8,210 $ 15,529 $ 14,980 Gross increases - current year tax positions — — — Gross increases - prior year tax positions 191 343 549 Gross decreases - prior year tax positions (7,747) (7,662) — Unrecognized tax benefits at end of year $ 654 $ 8,210 $ 15,529 Interest and penalties in year-end balance $ — $ 607 $ 976 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Summary of related terms and discount rates | Weighted-average remaining lease term for operating leases 11 years Weighted-average discount rate for operating leases 6.1% |
Summary of lease costs | Weighted-average remaining lease term for operating leases 11 years Weighted-average discount rate for operating leases 6.1% The Company’s lease costs for 2023, 2022 and 2021 included the following components (in thousands): For the year ended December 31, 2023 2022 2021 Operating lease cost $ 48,169 $ 97,998 $ 89,891 Variable and short-term lease cost 2,840 1,830 4,468 Sublease income (5,402) (7,089) (6,552) Total lease cost $ 45,607 $ 92,739 $ 87,807 |
Schedule of future minimum rental payments for operating leases | The following table summarizes future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms as of December 31, 2023 (in thousands): 2024 $ 19,924 2025 17,503 2026 13,752 2027 12,554 2028 9,762 Thereafter 55,568 Total future minimum operating lease payments $ 129,063 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Schedule of assets measured at fair value on a recurring basis | As of December 31, 2023 and 2022, 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, 2023 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 677,074 $ — $ 677,074 $ — Commercial paper 9,872 — 9,872 — $ 686,946 $ — $ 686,946 $ — Investments in Other Companies 15,402 2,925 — 12,477 Cash and Cash Equivalents 148,277 148,277 — — Total Assets Measured at Fair Value $ 850,625 $ 151,202 $ 686,946 $ 12,477 Fair Value Measurements as of December 31, 2022 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 624,254 $ — $ 624,254 $ — Commercial paper 319,977 — 319,977 — $ 944,231 $ — $ 944,231 $ — Investments in Other Companies 21,380 7,200 — 14,180 Cash and Cash Equivalents 102,984 102,984 — — Total Assets Measured at Fair Value $ 1,068,595 $ 110,184 $ 944,231 $ 14,180 |
Capital Transactions (Tables)
Capital Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of stock option activity | 2023 2022 2021 Weighted Weighted Average Aggregate Weighted Weighted Average Remaining Intrinsic Average Average Number of Exercise Contractual Value Number of Exercise Number of Exercise Options Price Term ($000) Options Price Options Price Outstanding at beginning of year 6,816 $ 14.78 0.1 years $ 11.8 16,633 $ 14.62 57,653 $ 14.74 Granted — — — — — — Exercised (3,848) 14.78 (9,817) 14.52 (41,020) 14.78 Cancelled (2,968) 14.78 — — — — Outstanding at end of year — $ — 6,816 14.78 16,633 14.62 Exercisable at December 31, 2023 — $ — — years $ — Exercisable at December 31, 2022 6,816 $ 14.78 0.1 years $ 11.8 |
Schedule of restricted stock activity | Weighted-Average Grant-Date Fair Number of RSUs Value Non-vested RSUs outstanding at December 31, 2020 237,977 $ 54.15 Granted 44,770 44.87 Vested (69,184) 53.41 Cancelled (13,390) 52.28 Non-vested RSUs outstanding at December 31, 2021 200,173 $ 52.45 Granted 66,680 32.86 Vested (86,534) 48.69 Cancelled (20,297) 44.91 Non-vested RSUs outstanding at December 31, 2022 160,022 $ 47.28 Granted 127,348 18.77 Vested (65,283) 61.45 Cancelled (19,175) 28.11 Non-vested RSUs outstanding at December 31, 2023 202,912 $ 26.64 |
Schedule of warrant issued under the payroll support programs and secured loan facility | Number of Warrants Exercise Price Weighted Average Grant-Date Fair Value PSP1 370,720 $ 28.38 $ 13.57 Secured Loan 211,416 $ 28.38 $ 15.22 PSP2 124,773 $ 40.41 $ 32.52 PSP3 78,317 $ 57.47 $ 22.31 Total 785,226 |
Performance Share Units (PSUs) | |
Schedule of non-vested stock options | Weighted-Average Grant-Date Fair Number of PSUs Value Non-vested PSUs outstanding at December 31, 2020 196,609 $ 54.17 Granted 157,210 44.87 PSUs forfeited from the 2018 grant due to performance (11,392) 53.41 Vested (45,644) 53.41 Cancelled (3,991) 53.30 Non-vested PSUs outstanding at December 31, 2021 292,792 $ 49.39 Granted 225,345 32.73 PSUs forfeited from the 2019 grant due to performance (45,695) 48.87 Vested (30,480) 48.87 Cancelled (13,032) 41.81 Non-vested PSUs outstanding at December 31, 2022 428,930 $ 40.96 Granted 391,810 18.65 PSUs forfeited from the 2020 grant due to performance (35,328) 61.45 Vested (23,528) 61.45 Cancelled (2,154) 48.07 Non-vested PSUs outstanding at December 31, 2023 759,730 $ 27.85 |
Retirement Plans and Employee_2
Retirement Plans and Employee Stock Purchase Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Plans and Employee Stock Purchase Plans | |
Schedule of purchases made under the 2009 Employee Stock Purchase Plans | Year ended December 31, 2023 2022 2021 Number of shares purchased 117,350 105,606 63,962 Average price of shares purchased $ 23.47 $ 26.66 $ 39.70 |
Investments in Other Companies
Investments in Other Companies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments in Other Companies | |
Schedule of reconciliation of Eve Level 3 investments | Eve Level 3 Investments: Balance at December 31, 2021 $ — Purchases 6,551 Unrealized gains 7,629 Balance at December 31, 2022 $ 14,180 Purchases — Realized loss on forfeiture of put options (827) Unrealized loss (876) Balance at December 31, 2023 $ 12,477 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Aircraft Fleet (Details) | 12 Months Ended |
Dec. 31, 2023 aircraft | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of daily departures | 1,850 |
Number of aircraft held by entity | 603 |
E175 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 237 |
E175 | Minimum | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of seats on aircraft | 65 |
E175 | Maximum | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of seats on aircraft | 76 |
CRJ 900 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 49 |
CRJ 900 | Minimum | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of seats on aircraft | 65 |
CRJ 900 | Maximum | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of seats on aircraft | 76 |
CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 167 |
CRJ 700 | Minimum | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of seats on aircraft | 65 |
CRJ 700 | Maximum | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of seats on aircraft | 76 |
CRJ 200 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 150 |
Number of seats on aircraft | 50 |
United | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 198 |
Percentage of aggregate capacity operated | 40.80% |
United | E175 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 90 |
United | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 19 |
United | CRJ 200 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 89 |
Delta | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 135 |
Percentage of aggregate capacity operated | 27.80% |
Delta | E175 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 85 |
Delta | CRJ 900 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 41 |
Delta | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 9 |
American | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 110 |
Percentage of aggregate capacity operated | 22.70% |
American | E175 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 20 |
American | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 90 |
Alaska | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 42 |
Percentage of aggregate capacity operated | 8.70% |
Alaska | E175 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 42 |
Aircraft in schedule service or under contract | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 485 |
Aircraft in schedule service or under contract | E175 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 237 |
Aircraft in schedule service or under contract | CRJ 900 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 41 |
Aircraft in schedule service or under contract | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 118 |
Aircraft in schedule service or under contract | CRJ 200 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 89 |
SWC | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 16 |
SWC | CRJ 200 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 16 |
Number of seats on aircraft | 30 |
Leased to third parties | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 40 |
Leased to third parties | CRJ 900 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 5 |
Leased to third parties | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 35 |
Other | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 62 |
Other | CRJ 900 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 3 |
Other | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 14 |
Other | CRJ 200 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 45 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Nature of Operations and Summary of Significant Accounting Policies | ||
Restricted cash | $ 0 | $ 0 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies - Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 686,516 | $ 949,257 |
Gross unrealized holding gains | 430 | |
Gross unrealized holding losses | (5,026) | |
Fair market value | $ 686,946 | 944,231 |
Marketable Securities | ||
Maximum period for redemption | 1 year | |
Bond and bond funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 676,644 | 629,280 |
Gross unrealized holding gains | 430 | |
Gross unrealized holding losses | (5,026) | |
Fair market value | 677,074 | 624,254 |
Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,872 | 319,977 |
Fair market value | $ 9,872 | $ 319,977 |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventories | ||
Inventory allowance | $ 26.1 | $ 24.2 |
Nature of Operations and Summ_8
Nature of Operations and Summary of Significant Accounting Policies - Property and Equipment (Details) | Dec. 31, 2023 |
Aircraft, rotable spares, and spare engines | Maximum | |
Property and Equipment | |
Depreciable Life | 22 years |
Residual Value (as a percent) | 20% |
Ground equipment | |
Property and Equipment | |
Residual Value (as a percent) | 0% |
Ground equipment | Maximum | |
Property and Equipment | |
Depreciable Life | 10 years |
Office equipment | |
Property and Equipment | |
Residual Value (as a percent) | 0% |
Office equipment | Maximum | |
Property and Equipment | |
Depreciable Life | 5 years |
Leasehold improvements | |
Property and Equipment | |
Residual Value (as a percent) | 0% |
Leasehold improvements | Maximum | |
Property and Equipment | |
Depreciable Life | 15 years |
Buildings | |
Property and Equipment | |
Residual Value (as a percent) | 0% |
Buildings | Minimum | |
Property and Equipment | |
Depreciable Life | 20 years |
Buildings | Maximum | |
Property and Equipment | |
Depreciable Life | 39 years 6 months |
Nature of Operations and Summ_9
Nature of Operations and Summary of Significant Accounting Policies - Long-Lived Assets (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) aircraft | Dec. 31, 2022 USD ($) aircraft | |
Impairment of Long Lived and Intangible Assets | ||
Property and equipment and related assets | $ 5,482,967 | $ 5,548,480 |
Impairment loss of assets held for sale | 2,318 | $ 51,384 |
Number of aircraft held-for-sale | aircraft | 14 | |
Impairment on assets held for sale | 2,318 | $ 51,384 |
Held for sale | CRJ 700 | ||
Impairment of Long Lived and Intangible Assets | ||
Impairment loss of assets held for sale | $ 2,300 | $ 51,400 |
Number of aircraft held-for-sale | aircraft | 14 | 14 |
Impairment on assets held for sale | $ 2,300 | $ 51,400 |
Nature of Operations and Sum_10
Nature of Operations and Summary of Significant Accounting Policies - Capitalized Interest and Maintenance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized Interest | |||
Capitalized interest costs | $ 1.5 | $ 1.9 | $ 1.9 |
Nature of Operations and Sum_11
Nature of Operations and Summary of Significant Accounting Policies - Flying Agreements (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) aircraft | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Agreements with other airlines | |||
Percentage of ASMs flown under fixed-fee arrangements | 86.50% | 88% | 84.30% |
EAS contract term | 2 years | ||
Percentage of ASMs flown under pro-rate arrangements | 13.50% | 12% | 15.70% |
Rental income under operating leases | |||
Operating lease revenue | $ 47,554 | $ 48,714 | $ 46,532 |
Operating lease revenue relating to variable lease payments | 18,420 | 17,050 | 19,998 |
Total operating revenues | 2,935,432 | 3,004,925 | 2,713,491 |
Future minimum rental income | |||
2024 | 46,119 | ||
2025 | 41,172 | ||
2026 | 35,630 | ||
2027 | 35,586 | ||
2028 | 35,024 | ||
Thereafter | 53,122 | ||
Total future minimum rental income under operating leases | 246,653 | ||
Deferred revenue recognized | 12,600 | 18,700 | |
Unbilled revenue recognized | (12,601) | 11,491 | 8,404 |
Unbilled revenue | 7,300 | 19,900 | |
Deferred revenue | 374,600 | 144,700 | |
Deferred revenue in other current liabilities | 61,000 | 5,200 | |
Deferred revenue in other long-term liabilities | 313,600 | 139,500 | |
Property and equipment and related assets | 5,482,967 | 5,548,480 | |
Deferred recognizing revenue | 229,862 | 40,812 | (6,832) |
Accounts receivable | 82,900 | 100,500 | |
Gross receivables current | 86,100 | ||
Gross receivables Non-current | 199,800 | ||
Balance | 37,385 | 41,976 | 46,225 |
Adjustments to credit loss reserves | (185) | (4,591) | (4,249) |
Write-offs charged against allowance | (18,501) | ||
Balance | 18,699 | 37,385 | 41,976 |
Other Noncurrent Liabilities | |||
Future minimum rental income | |||
Deferred lease revenue | 78,500 | 22,100 | |
Other Current Assets | |||
Future minimum rental income | |||
Unbilled revenue | 1,200 | 9,900 | |
Other Noncurrent Assets | |||
Future minimum rental income | |||
Unbilled revenue | 6,100 | $ 10,000 | |
Capacity Purchase Agreements | |||
Future minimum rental income | |||
Deferred revenue | $ 151,400 | ||
United | United Express Agreements | |||
Future minimum rental income | |||
Agreement term | 2 years 8 months 12 days | ||
United | United Express Prorate Agreement | |||
Future minimum rental income | |||
Notice period for termination of agreement | 120 days | ||
Delta | |||
Future minimum rental income | |||
Number of aircraft | aircraft | 135 | ||
Delta | Delta Connection Prorate Agreement | |||
Future minimum rental income | |||
Notice period for termination of agreement | 30 days | ||
Delta | Delta Connection Agreements | |||
Future minimum rental income | |||
Agreement term | 4 years 9 months 18 days | ||
American | American Capacity Purchase Agreement | |||
Future minimum rental income | |||
Agreement term | 3 years 1 month 6 days | ||
Alaska | Alaska Capacity Purchase Agreement | |||
Future minimum rental income | |||
Agreement term | 7 years 6 months | ||
Jet aircraft and spare engines leased to third parties | |||
Future minimum rental income | |||
Property and equipment and related assets | $ 216,000 | ||
CRJ 200 | |||
Future minimum rental income | |||
Number of seats on aircraft | aircraft | 50 | ||
CRJ 200 | United | United Express Agreements | |||
Future minimum rental income | |||
Number of aircraft | aircraft | 70 | ||
CRJ 200 | United | United Express Prorate Agreement | |||
Future minimum rental income | |||
Number of aircraft | aircraft | 19 | ||
CRJ 700 | Minimum | |||
Future minimum rental income | |||
Number of seats on aircraft | aircraft | 65 | ||
CRJ 700 | Maximum | |||
Future minimum rental income | |||
Number of seats on aircraft | aircraft | 76 | ||
CRJ 700 | United | United Express Agreements | |||
Future minimum rental income | |||
Number of aircraft | aircraft | 19 | ||
CRJ 700 | Delta | Delta Capacity Purchase Agreement | |||
Future minimum rental income | |||
Number of aircraft | aircraft | 5 | ||
CRJ 700 | Delta | Delta Connection Prorate Agreement | |||
Future minimum rental income | |||
Number of aircraft | aircraft | 4 | ||
CRJ 700 | American | American Capacity Purchase Agreement | |||
Future minimum rental income | |||
Number of aircraft | aircraft | 90 | ||
CRJ 900 | Minimum | |||
Future minimum rental income | |||
Number of seats on aircraft | aircraft | 65 | ||
CRJ 900 | Maximum | |||
Future minimum rental income | |||
Number of seats on aircraft | aircraft | 76 | ||
CRJ 900 | Delta | Delta Capacity Purchase Agreement | |||
Future minimum rental income | |||
Number of aircraft | aircraft | 35 | ||
CRJ 900 | Delta | Delta Connection Prorate Agreement | |||
Future minimum rental income | |||
Number of aircraft | aircraft | 6 | ||
E175 | |||
Agreements with other airlines | |||
2024 | aircraft | 5 | ||
2025 | aircraft | 8 | ||
2026 | aircraft | 8 | ||
Total | aircraft | 21 | ||
E175 | Minimum | |||
Future minimum rental income | |||
Number of seats on aircraft | aircraft | 65 | ||
E175 | Maximum | |||
Future minimum rental income | |||
Number of seats on aircraft | aircraft | 76 | ||
E175 | United | United Express Agreements | |||
Agreements with other airlines | |||
2024 | aircraft | 4 | ||
2025 | aircraft | 7 | ||
2026 | aircraft | 8 | ||
Total | aircraft | 19 | ||
Future minimum rental income | |||
Number of aircraft | aircraft | 90 | ||
E175 | Delta | Delta Capacity Purchase Agreement | |||
Agreements with other airlines | |||
2024 | aircraft | 1 | ||
Total | aircraft | 1 | ||
Future minimum rental income | |||
Number of aircraft | aircraft | 85 | ||
E175 | American | American Capacity Purchase Agreement | |||
Future minimum rental income | |||
Number of aircraft | aircraft | 20 | ||
E175 | Alaska | Alaska Capacity Purchase Agreement | |||
Agreements with other airlines | |||
2025 | aircraft | 1 | ||
Total | aircraft | 1 | ||
Flying agreements | |||
Rental income under operating leases | |||
Total operating revenues | $ 2,834,397 | $ 2,899,837 | 2,615,076 |
Future minimum rental income | |||
Accounts receivable | 73,600 | 73,700 | |
Capacity purchase agreements flight operations revenue (non-lease component) | |||
Rental income under operating leases | |||
Total operating revenues | 1,976,743 | 2,028,308 | 1,678,219 |
Capacity purchase agreements fixed aircraft lease revenue | |||
Rental income under operating leases | |||
Total operating revenues | 296,047 | 504,529 | 527,173 |
Capacity purchase agreements variable aircraft lease revenue | |||
Rental income under operating leases | |||
Total operating revenues | 180,218 | 17,664 | |
Prorate agreements and SWC revenue | |||
Rental income under operating leases | |||
Total operating revenues | 381,389 | 349,336 | 409,684 |
Airport customer service and other revenue | |||
Rental income under operating leases | |||
Total operating revenues | 35,061 | 39,324 | 31,885 |
Lease, airport services and other. | |||
Rental income under operating leases | |||
Total operating revenues | $ 101,035 | $ 105,088 | $ 98,415 |
Nature of Operations and Sum_12
Nature of Operations and Summary of Significant Accounting Policies - Net Income Per Share and Fair Value (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Net income per common share: | |||
Number of outstanding units not included in computation of Diluted EPS (in shares) | 301,000 | 859,000 | 78,000 |
Numerator: | |||
Net income | $ | $ 34,342 | $ 72,953 | $ 111,910 |
Denominator: | |||
Basic earnings per share weighted average shares (in shares) | 43,940,000 | 50,548,000 | 50,348,000 |
Dilution due to employee equity awards and warrants (in shares) | 659,000 | 96,000 | 405,000 |
Diluted earnings per share weighted average shares | 44,599,000 | 50,644,000 | 50,753,000 |
Basic earnings per share (in dollars per share) | $ / shares | $ 0.78 | $ 1.44 | $ 2.22 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 0.77 | $ 1.44 | $ 2.20 |
Fair Value of Financial Instruments | |||
Total long-term debt | $ | $ 3,030,310 | $ 3,409,311 | |
Segment Reporting | |||
Number of reporting segments | segment | 2 | ||
Performance Share Units (PSUs) | |||
Net income per common share: | |||
Number of outstanding units not included in computation of Diluted EPS (in shares) | 334,000 | 146,000 | 140,000 |
Warrants PSP1 | |||
Net income per common share: | |||
Number of outstanding units not included in computation of Diluted EPS (in shares) | 286,000 | 640,000 | 78,000 |
Employee Stock Option [Member] | |||
Net income per common share: | |||
Number of outstanding units not included in computation of Diluted EPS (in shares) | 15,000 | 219,000 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting | |||
Number of reporting segments | segment | 2 | ||
Operating revenues | $ 2,935,432 | $ 3,004,925 | $ 2,713,491 |
Operating expense | 2,831,363 | 2,823,763 | 2,437,624 |
Depreciation and amortization expense | 383,115 | 394,552 | 440,198 |
Special items - impairment charges | 84,592 | ||
Interest expense | 130,930 | 127,083 | 123,122 |
Segment profit (loss) | (26,861) | 54,079 | 152,745 |
Total assets | 7,026,293 | 7,414,553 | 7,125,947 |
Capital expenditures (including non-cash) | 263,909 | 662,317 | 567,037 |
SkyWest Airlines | |||
Segment Reporting | |||
Operating revenues | 2,392,174 | 2,492,318 | 2,192,432 |
Operating expense | 2,566,946 | 2,525,076 | 2,177,524 |
Depreciation and amortization expense | 149,264 | 182,475 | 210,281 |
Special items - impairment charges | 84,592 | ||
Interest expense | 17,053 | 12,805 | 13,360 |
Segment profit (loss) | (191,825) | (45,563) | 1,548 |
Total assets | 2,537,834 | 2,977,804 | 2,957,745 |
Capital expenditures (including non-cash) | 113,783 | 82,891 | 128,712 |
SkyWest Leasing | |||
Segment Reporting | |||
Operating revenues | 543,258 | 512,607 | 521,059 |
Operating expense | 264,417 | 298,687 | 260,100 |
Depreciation and amortization expense | 233,851 | 212,077 | 229,917 |
Interest expense | 113,877 | 114,278 | 109,762 |
Segment profit (loss) | 164,964 | 99,642 | 151,197 |
Total assets | 4,488,459 | 4,436,749 | 4,168,202 |
Capital expenditures (including non-cash) | $ 150,126 | $ 579,426 | $ 438,325 |
Long-term Debt (Details)
Long-term Debt (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) aircraft | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Total | $ 3,030,310 | $ 3,409,311 | |
Current portion of long-term debt | (447,534) | (442,360) | |
Long-term portion of unamortized debt issue cost, net | (20,593) | (25,179) | |
Long-term debt, net of current maturities and debt issue costs | 2,562,183 | 2,941,772 | |
Current portion of long-term debt | 447,534 | 442,360 | |
Current portion of unamortized debt issue cost, net | (3,665) | (3,858) | |
Current portion of long-term debt, net of debt issue costs | $ 443,869 | $ 438,502 | |
Basis spread on variable rate | 3.50% | ||
Effective interest rate (as a percent) | 4.10% | 4% | |
Aggregate amounts of principal maturities of long-term debt | |||
2024 | $ 447,534 | ||
2025 | 532,314 | ||
2026 | 510,625 | ||
2027 | 464,280 | ||
2028 | 292,812 | ||
Thereafter | 782,745 | ||
Letters of credit | 29,200 | $ 29,900 | |
Current borrowing capacity | 70,800 | 70,100 | |
Letters of credit and surety bonds outstanding with various banks and surety institutions | $ 49,100 | 59,200 | |
E175 | |||
Debt Instrument [Line Items] | |||
Number of aircraft delivered | aircraft | 2 | ||
Purchase of aircraft financed through long-term debt | $ 44,700 | ||
Debt instrument, term | 12 years | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.60% | ||
Promissory note | |||
Debt Instrument [Line Items] | |||
Debt instrument, term | 8 years | ||
Principal amount | $ 25,000 | ||
Treasury Loan Agreement | |||
Debt Instrument [Line Items] | |||
Loan | $ 60,000 | ||
Notes payable to banks, due in quarterly installments, plus interest at 2.33% to 5.95% through 2035, secured by aircraft | |||
Debt Instrument [Line Items] | |||
Total | $ 2,302,578 | 2,604,058 | |
Notes payable to banks, due in quarterly installments, plus interest at 2.33% to 5.95% through 2035, secured by aircraft | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 2.33% | ||
Notes payable to banks, due in quarterly installments, plus interest at 2.33% to 5.95% through 2035, secured by aircraft | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.95% | ||
Notes payable to banks, due in monthly or semi-annual installments, plus interest at 2.90% to 5.94% through 2032, secured by aircraft and engines | |||
Debt Instrument [Line Items] | |||
Total | $ 527,092 | 604,613 | |
Notes payable to banks, due in monthly or semi-annual installments, plus interest at 2.90% to 5.94% through 2032, secured by aircraft and engines | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 2.68% | ||
Notes payable to banks, due in monthly or semi-annual installments, plus interest at 2.90% to 5.94% through 2032, secured by aircraft and engines | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.94% | ||
Notes payable to U.S. Government, interest due quarterly at 1.00% through 2025 and based on SOFR plus 2.0% from 2025 through 2031, unsecured | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 1% | ||
Total | $ 200,640 | 200,640 | |
Basis spread on variable rate | 2% | ||
Primarily related to acquisition of aircraft and certain spare engines | |||
Debt Instrument [Line Items] | |||
Total | $ 3,000,000 | 3,400,000 | |
Line of credit | |||
Aggregate amounts of principal maturities of long-term debt | |||
Maximum borrowing capacity | 100,000 | 100,000 | |
Amount outstanding | $ 0 | $ 0 |
Long-term Debt - Carrying Value
Long-term Debt - Carrying Value and Fair Value (Details) - Recurring - Level 2 - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Carrying value | $ 3,030,310 | $ 3,409,311 |
Fair value | $ 2,918,012 | $ 3,264,704 |
Income Taxes - Provision (Detai
Income Taxes - Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax provision (benefit): | |||
Federal | $ 4,962 | $ (7,319) | |
State | 1,794 | 1,813 | $ 846 |
Total current tax provision (benefit) | 6,756 | (5,506) | 846 |
Deferred tax provision (benefit): | |||
Federal | (678) | 21,587 | 32,510 |
State | (111) | 3,549 | 5,344 |
Total deferred tax provision (benefit) | (789) | 25,136 | 37,854 |
Provision for income taxes | $ 5,967 | $ 19,630 | $ 38,700 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
Statutory Federal income tax rate (as a percent) | 21% | 21% | 21% |
Reconciliation | |||
Computed provision (benefit) for income taxes at the statutory rate | $ 8,465 | $ 19,442 | $ 31,628 |
State income tax provision, net of federal income tax benefit | 2,056 | 4,295 | 6,247 |
Non-deductible expenses | 3,578 | 546 | 1,007 |
Valuation allowance changes affecting the provision for income taxes | (1,085) | 1,716 | |
Excess tax benefits from share based compensation | 939 | 534 | (92) |
Change in unrecognized tax benefit | (7,556) | (7,319) | |
Other, net | (430) | 416 | (90) |
Provision for income taxes | 5,967 | 19,630 | 38,700 |
Valuation allowance | 1,100 | 1,700 | |
Benefit (expense) from share-based compensation | (900) | (500) | $ 100 |
Deferred tax assets: | |||
Accrued benefits | 28,889 | 29,154 | |
Net operating loss carryforward | 130,478 | 186,517 | |
Aircraft credits | 93,189 | 77,962 | |
Deferred revenue | 91,809 | 35,385 | |
Operating lease liabilities | 21,207 | 39,209 | |
Interest deduction limitation | 11,563 | 26,469 | |
Accrued reserves and other | 64,971 | 49,972 | |
Total deferred tax assets | 442,106 | 444,668 | |
Valuation allowance | (630) | (1,716) | |
Deferred tax liabilities: | |||
Accelerated depreciation | (1,108,042) | (1,094,538) | |
Operating lease right-of-use assets | (21,034) | (35,474) | |
Total deferred tax liabilities | (1,129,076) | (1,130,012) | |
Net deferred tax liability | $ (687,600) | $ (687,060) |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Losses and Tax Rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net operating losses | |||
Tax benefit for release of uncertain tax position | $ 7.6 | $ 7.3 | |
Statutory Federal income tax rate (as a percent) | 21% | 21% | 21% |
Domestic Tax Authority | |||
Net operating losses | |||
Operating loss carryforward | $ 566.3 | $ 817.4 | |
Estimated effective tax rate on net operating losses | 21% | ||
State and Local Jurisdiction | |||
Net operating losses | |||
Operating loss carryforward | $ 316.2 | $ 380.6 | |
Estimated effective tax rate on net operating losses | 3.45% |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
Unrecognized tax benefits at the beginning of year | $ 8,210,000 | $ 15,529,000 | $ 14,980,000 |
Gross increases - prior year tax positions | 191,000 | 343,000 | 549,000 |
Gross decreases - prior year tax positions | (7,747,000) | (7,662,000) | |
Unrecognized tax benefits at end of year | 654,000 | 8,210,000 | 15,529,000 |
Interest and penalties in year-end balance | 607,000 | 976,000 | |
Interest expense related to uncertain tax positions | $ 191,000 | $ 343,000 | $ 549,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) employee aircraft | Dec. 31, 2022 USD ($) | Dec. 31, 2021 | |
Concentration Risk and Significant Customers | |||
Accrued workers' compensation liability | $ | $ 20.6 | $ 21.6 | |
Accrued workers' compensation liability, current | $ | $ 7.3 | $ 8 | |
E175 | |||
Concentration Risk and Significant Customers | |||
Commitment to purchase number of aircraft, 2024 | 5 | ||
Commitment to purchase number of aircraft, 2025 | 8 | ||
Commitment to purchase number of aircraft, 2026 | 8 | ||
Revenue from rights, concentration risk | Customer Concentration Risk | Delta, United, and Continental Combined | |||
Concentration Risk and Significant Customers | |||
Concentration risk (as a percent) | 70.90% | 72.50% | 73.50% |
Full-time equivalent number of employees | Labor Force Concentration Risk | |||
Concentration Risk and Significant Customers | |||
Number of employees | employee | 13,000 | ||
SkyWest Airlines | Full-time equivalent number of employees | Unionized employees | |||
Concentration Risk and Significant Customers | |||
Approximate number of active employees | employee | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases, Commitments, Guarantees and Contingencies | ||
Guaranteed amount received as consideration, percentage | 2% | 6.50% |
Other income, net | ||
Leases, Commitments, Guarantees and Contingencies | ||
Gain on sale of common stock | $ 0.5 | |
Debt | ||
Leases, Commitments, Guarantees and Contingencies | ||
Guarantor Obligations, Current Carrying Value | 4.8 | |
Debt | Aircraft and engines | ||
Leases, Commitments, Guarantees and Contingencies | ||
Guaranteed amount | $ 12 | $ 19.8 |
Term of guarantee obligations | 5 years | 5 years |
Guarantor Obligations, Current Carrying Value | $ 17.6 |
Leases (Details)
Leases (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) aircraft | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 86,727,000 | $ 151,928,000 | |
Current maturities of lease liabilities | 19,335,000 | 71,726,000 | |
Noncurrent operating leases | 67,392,000 | 88,622,000 | |
Operating leases | $ 31,700,000 | ||
Weighted-average remaining lease term for operating leases | 11 years | ||
Weighted-average discount rate for operating leases | 6.10% | ||
Lease costs | |||
Operating lease cost | $ 48,169,000 | 97,998,000 | $ 89,891,000 |
Variable and short-term lease cost | 2,840,000 | 1,830,000 | 4,468,000 |
Sublease income | (5,402,000) | (7,089,000) | (6,552,000) |
Total lease cost | $ 45,607,000 | $ 92,739,000 | $ 87,807,000 |
CRJ Aircraft | |||
Lessee, Lease, Description [Line Items] | |||
Number of aircraft acquired | aircraft | 35 | ||
Lease liability payable due | $ 142,400,000 | ||
Aircraft | |||
Lessee, Lease, Description [Line Items] | |||
Number of aircraft acquired | 8 | ||
Number of aircraft subleased | aircraft | 8 | ||
Aircraft | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 5 years | ||
Aircraft | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 7 years | ||
Airport Facilities | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 month | ||
Airport Facilities | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 33 years |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Future minimum rental payments required under operating leases | |
2024 | $ 19,924 |
2025 | 17,503 |
2026 | 13,752 |
2027 | 12,554 |
2028 | 9,762 |
Thereafter | 55,568 |
Total future minimum operating lease payments | $ 129,063 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Measurements | ||
Marketable Securities | $ 686,946 | $ 944,231 |
Recurring | Estimate of Fair Value Measurement | ||
Fair Value Measurements | ||
Marketable Securities | 686,946 | 944,231 |
Investments in Other Companies | 15,402 | 21,380 |
Cash and Cash Equivalents | 148,277 | 102,984 |
Total Assets Measured at Fair Value | 850,625 | 1,068,595 |
Recurring | Estimate of Fair Value Measurement | Bonds and bond funds | ||
Fair Value Measurements | ||
Marketable Securities | 677,074 | 624,254 |
Recurring | Estimate of Fair Value Measurement | Commercial Paper | ||
Fair Value Measurements | ||
Marketable Securities | 9,872 | 319,977 |
Recurring | Level 1 | ||
Fair Value Measurements | ||
Investments in Other Companies | 2,925 | 7,200 |
Cash and Cash Equivalents | 148,277 | 102,984 |
Total Assets Measured at Fair Value | 151,202 | 110,184 |
Recurring | Level 2 | ||
Fair Value Measurements | ||
Marketable Securities | 686,946 | 944,231 |
Total Assets Measured at Fair Value | 686,946 | 944,231 |
Recurring | Level 2 | Bonds and bond funds | ||
Fair Value Measurements | ||
Marketable Securities | 677,074 | 624,254 |
Recurring | Level 2 | Commercial Paper | ||
Fair Value Measurements | ||
Marketable Securities | 9,872 | 319,977 |
Recurring | Level 3 | ||
Fair Value Measurements | ||
Investments in Other Companies | 12,477 | 14,180 |
Total Assets Measured at Fair Value | $ 12,477 | $ 14,180 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) aircraft | Dec. 31, 2022 USD ($) aircraft | |
Assets Held for Sale | ||
Number of aircraft held-for-sale | aircraft | 14 | |
Impairment loss of assets held for sale | $ 2,318 | $ 51,384 |
CRJ 700 | Held for sale | ||
Assets Held for Sale | ||
Number of aircraft held-for-sale | aircraft | 14 | 14 |
Assets held for sale | $ 54,300 | |
Impairment loss of assets held for sale | $ 2,300 | $ 51,400 |
Special Items (Details)
Special Items (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
CRJ 900 | |
Impairment charges | $ 84.6 |
Payroll Support Programs (Detai
Payroll Support Programs (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) item | Dec. 31, 2020 USD ($) item | |
Unusual or Infrequent Item, or Both [Line Items] | ||||
Proceeds from payroll grant | $ 422,700,000 | |||
Grants received | $ 0 | $ 0 | ||
PSP agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Number of payroll support program agreements | item | 3 | 3 | ||
Unsecured term loan | PSP agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Debt term | 10 years | |||
Treasury Loan Agreement | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Proceeds received | $ 60,000,000 |
Capital Transactions - Preferre
Capital Transactions - Preferred Stock (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred Stock | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock outstanding (in shares) | 0 |
Capital Transactions - Stock Co
Capital Transactions - Stock Compensation (Details) | 12 Months Ended | |||
May 07, 2019 shares | Dec. 31, 2023 USD ($) item $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share-Based Compensation | ||||
Basis rate | 3.50% | |||
Options outstanding (in shares) | 6,816 | 16,633 | ||
Performance period | 90 days | |||
Compensation expenses | ||||
Stock based compensation expense | $ | $ 17,125,000 | $ 9,159,000 | $ 8,685,000 | |
Number of Options | ||||
Outstanding at the beginning of the period (in shares) | 6,816 | 16,633 | 57,653 | |
Exercised (in shares) | (3,848) | (9,817) | (41,020) | |
Cancelled (in shares) | (2,968) | |||
Outstanding at the end of the period (in shares) | 6,816 | 16,633 | ||
Exercisable (in shares) | 6,816 | |||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 14.78 | $ 14.62 | $ 14.74 | |
Exercised (in dollars per share) | $ / shares | 14.78 | 14.52 | 14.78 | |
Cancelled (in dollars per share) | $ / shares | $ 14.78 | |||
Outstanding at the end of the period (in dollars per share) | $ / shares | 14.78 | $ 14.62 | ||
Exercisable (in dollars per share) | $ / shares | $ 14.78 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding, Weighted Average Remaining Contractual Term (in years) | 1 month 6 days | |||
Exercisable, Weighted Average Remaining Contractual Term (in years) | 0 years | 1 month 6 days | ||
Aggregate Intrinsic Value | ||||
Average intrinsic value of shares outstanding | $ | $ 11,800 | |||
Average intrinsic value of shares exercisable | $ | $ 11,800 | |||
Director | ||||
Share-Based Compensation | ||||
Granted (in shares) | 37,534 | 24,423 | 21,175 | |
Granted (in dollars per share) | $ / shares | $ 18.65 | $ 32.86 | $ 44.87 | |
Number of shares | ||||
Granted (in shares) | 37,534 | 24,423 | 21,175 | |
Weighted Average Grant-Date Fair Value | ||||
Granted (in dollars per share) | $ / shares | $ 18.65 | $ 32.86 | $ 44.87 | |
Restricted stock grants and performance share units | ||||
Compensation expenses | ||||
Total unrecognized compensation cost | $ | $ 22,100,000 | |||
Unrecognized compensation cost recognized over a weighted average period (in years) | 1 month 21 days | |||
Employee Stock Option [Member] | ||||
Aggregate Intrinsic Value | ||||
Total intrinsic value of options exercised | $ | $ 100,000 | $ 100,000 | $ 1,800,000 | |
Performance Share Units (PSUs) | ||||
Share-Based Compensation | ||||
Granted (in shares) | 391,810 | 225,345 | 157,210 | |
Vesting period | 3 years | |||
Granted (in dollars per share) | $ / shares | $ 18.65 | $ 32.73 | $ 44.87 | |
Number of performance period | item | 3 | |||
Performance period | 1 year | |||
Award percentage | 40% | |||
Number of shares | ||||
Nonvested shares at the beginning of the period (in shares) | 428,930 | 292,792 | 196,609 | |
Granted (in shares) | 391,810 | 225,345 | 157,210 | |
Forfeited (in shares) | (35,328) | (45,695) | (11,392) | |
Vested (in shares) | (23,528) | (30,480) | (45,644) | |
Cancelled (in shares) | (2,154) | (13,032) | (3,991) | |
Nonvested shares at the end of the period (in shares) | 759,730 | 428,930 | 292,792 | |
Weighted Average Grant-Date Fair Value | ||||
Nonvested shares at the beginning of the period (in dollars per share) | $ / shares | $ 40.96 | $ 49.39 | $ 54.17 | |
Granted (in dollars per share) | $ / shares | 18.65 | 32.73 | 44.87 | |
Forfeiture (in dollars per share) | $ / shares | 61.45 | 48.87 | 53.41 | |
Vested (in dollars per share) | $ / shares | 61.45 | 48.87 | 53.41 | |
Cancelled (in dollars per share) | $ / shares | 48.07 | 41.81 | 53.30 | |
Nonvested shares at the end of the period (in dollars per share) | $ / shares | $ 27.85 | $ 40.96 | $ 49.39 | |
Performance Share Units (PSUs) | Maximum | ||||
Share-Based Compensation | ||||
Award percentage | 250% | 250% | 250% | |
Performance Share Units (PSUs) | Minimum | ||||
Share-Based Compensation | ||||
Award percentage | 0% | 0% | 0% | |
Restricted Stock Units (RSUs) | ||||
Share-Based Compensation | ||||
Granted (in shares) | 127,348 | 66,680 | 44,770 | |
Granted (in dollars per share) | $ / shares | $ 18.77 | $ 32.86 | $ 44.87 | |
Number of shares | ||||
Nonvested shares at the beginning of the period (in shares) | 160,022 | 200,173 | 237,977 | |
Granted (in shares) | 127,348 | 66,680 | 44,770 | |
Vested (in shares) | (65,283) | (86,534) | (69,184) | |
Cancelled (in shares) | (19,175) | (20,297) | (13,390) | |
Nonvested shares at the end of the period (in shares) | 202,912 | 160,022 | 200,173 | |
Weighted Average Grant-Date Fair Value | ||||
Nonvested shares at the beginning of the period (in dollars per share) | $ / shares | $ 47.28 | $ 52.45 | $ 54.15 | |
Granted (in dollars per share) | $ / shares | 18.77 | 32.86 | 44.87 | |
Vested (in dollars per share) | $ / shares | 61.45 | 48.69 | 53.41 | |
Cancelled (in dollars per share) | $ / shares | 28.11 | 44.91 | 52.28 | |
Nonvested shares at the end of the period (in dollars per share) | $ / shares | $ 26.64 | $ 47.28 | $ 52.45 | |
Long Term Incentive Plan 2019 | ||||
Share-Based Compensation | ||||
Number of shares authorized | 4,500,000 | |||
Basis rate | 1.65% | |||
Shares remaining available for future issuance | 2,600,000 | |||
Long Term Incentive Plan 2019 | Employee Stock Option [Member] | ||||
Share-Based Compensation | ||||
Basis rate | 1% | |||
Long Term Incentive Plan 2019 | Restricted Stock | ||||
Weighted Average Exercise Price | ||||
Granted (in dollars per share) | $ / shares | $ 18.77 | |||
Long Term Incentive Plan 2019 | Restricted Stock Units (RSUs) | ||||
Share-Based Compensation | ||||
Granted (in shares) | 127,348 | |||
Vesting period | 3 years | |||
Number of shares | ||||
Granted (in shares) | 127,348 |
Capital Transactions - Informat
Capital Transactions - Information About Stock Options Outstanding (Details) - PSP agreement - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2021 | |
Options Exercisable | ||
Number of Warrants | 785,226 | |
Warrant Shares | ||
Options Exercisable | ||
Warrant term | 5 years | |
Warrants PSP1 | ||
Options Exercisable | ||
Number of Warrants | 370,720 | |
Warrants exercise price | $ 28.38 | |
Weighted Average Grant-Date Fair Value | $ 13.57 | |
Warrants PSP2 | ||
Options Exercisable | ||
Number of Warrants | 124,773 | |
Warrants exercise price | $ 40.41 | |
Weighted Average Grant-Date Fair Value | $ 32.52 | |
Warrants PSP3 | ||
Options Exercisable | ||
Number of Warrants | 78,317 | |
Warrants exercise price | $ 57.47 | |
Weighted Average Grant-Date Fair Value | $ 22.31 | |
Secured loan | ||
Options Exercisable | ||
Number of Warrants | 211,416 | |
Warrants exercise price | $ 28.38 | |
Weighted Average Grant-Date Fair Value | $ 15.22 |
Retirement Plans and Employee_3
Retirement Plans and Employee Stock Purchase Plans - Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Plans | |||
Minimum benefit plan percentage of participants compensation eligible for employer matching contribution based on position and years of service | 0% | ||
Maximum benefit plan percentage of participants compensation eligible for employer matching contribution based on position and years of service | 20% | ||
SkyWest Plan | |||
Retirement Plans | |||
Percentage of employer matching contribution based on length of service | 100% | ||
Minimum benefit plan percentage of participants compensation eligible for employer matching contribution based on position and years of service | 2% | ||
Maximum benefit plan percentage of participants compensation eligible for employer matching contribution based on position and years of service | 12% | ||
Company's combined contributions | $ 59.3 | $ 45.4 | $ 42.1 |
Retirement Plans and Employee_4
Retirement Plans and Employee Stock Purchase Plans - Employee Stock Purchase Plans (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
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% | ||
Maximum percentage of base salary which can be contributed by the employees | 15% | ||
Maximum amount of base salary which can be contributed annually by the employees | $ 25,000 | ||
Discount rate at which common stock can be purchased by the plan participant (as a percent) | 5% | ||
Summary of purchases made under the 2009 Employee Stock Purchase Plans | |||
Number of shares purchased | 117,350 | 105,606 | 63,962 |
Average price of shares purchased (in dollars per share) | $ 23.47 | $ 26.66 | $ 39.70 |
2009 Stock Purchase Plan | |||
Summary of purchases made under the 2009 Employee Stock Purchase Plans | |||
Stock based compensation expense | $ 0 | $ 0 | $ 0 |
Stock Repurchase (Details)
Stock Repurchase (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2023 | |
Common stock authorized for repurchase, maximum | $ 250 | $ 250 | ||
Common stock remaining number of shares authorized to repurchase | 90.9 | |||
Stock repurchased (shares) | 10.6 | |||
Stock repurchased during period (value) | $ 289.1 | |||
Weighted average price per share of common stock (in dollars per share) | $ 27.30 | |||
Excise tax related to the stock repurchases as treasury stock | $ 2.9 | |||
Payment of income tax obligation on employee equity awards | 0.6 | $ 1.2 | $ 1.6 | |
February 2019 Stock Repurchase Program | ||||
Stock repurchased during period (value) | 130 | |||
May 2023 Stock Repurchase Program | ||||
Stock repurchased during period (value) | $ 159.1 |
Investments in Other Companie_2
Investments in Other Companies (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 USD ($) item | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 aircraft | Jan. 01, 2024 USD ($) | |
Eve UAM, LLC | Strategic partnership | Electric vertical takeoff and landing ("eVTOL") aircraft | |||||
Non-binding letter of intent to purchase number of aircraft | aircraft | 100 | ||||
Aero Engines, LLC. ("Aero Engines") | |||||
Payments to acquire interest in joint venture | $ 26,600 | ||||
Investment ownership (as a percent) | 75% | 75% | |||
Long-term debt | $ 0 | $ 0 | |||
Investment balance in other companies | $ 25,100 | 25,100 | |||
Aero Engines, LLC. ("Aero Engines") | Other income (loss), net | |||||
Company's portion of income (loss) generated by other companies | $ 200 | ||||
Contour Airlines | |||||
Investment ownership (as a percent) | 9.90% | 9.90% | |||
Number of Board of Directors Seat Held | item | 1 | ||||
Total Number of Board of Directors Seat | item | 5 | ||||
Percentage of Board of Directors Seat Held | 20% | 20% | |||
Payments to acquire equity method investment | $ 9,900 | ||||
Contour Airlines | Subsequent event | |||||
Investment ownership (as a percent) | 25% | ||||
Equity Method Investments, Anticipated Amount | $ 25,000 | ||||
Contour Airlines | Other Assets | |||||
Investment balance in other companies | 9,900 | $ 9,900 | |||
Eve Holdings, Inc. ("Eve") | |||||
Warrants to purchase shares | shares | 1,500,000 | ||||
Warrants exercise price (in dollars per share) | $ / shares | $ 0.01 | ||||
Initial investment | $ 10,000 | ||||
Eve Holdings, Inc. ("Eve") | Level 3 | |||||
Beginning balance | 14,180 | ||||
Purchases | 6,551 | ||||
Realized loss on forfeiture of put options | $ (827) | ||||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | ||||
Unrealized loss | $ (876) | 7,629 | |||
Ending balance | 12,477 | $ 12,477 | $ 14,180 | ||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | ||||
Eve Holdings, Inc. ("Eve") | Level 3 | Black Scholes Option Pricing Model | Volatility | |||||
Measurement input | 0.52 | ||||
Eve Holdings, Inc. ("Eve") | Put option | |||||
Shares obtained | shares | 1,000,000 | ||||
Shares sold | shares | 600,411 | ||||
Shares reduced | shares | 600,411 | ||||
Eve Holdings, Inc. ("Eve") | Other Assets | |||||
Investment balance in other companies | $ 15,400 | $ 15,400 | |||
Eve Holdings, Inc. ("Eve") | Other income (loss), net | |||||
Net realized gain from sale of shares | 2,100 | ||||
Company's portion of income (loss) generated by other companies | $ (3,100) | ||||
Eve Holdings, Inc. ("Eve") | Class A common stock | |||||
Number of shares acquired | shares | 1,000,000 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | $ 61,591 | $ 64,932 | $ 65,901 |
Additions Charged to Costs and Expenses | 1,883 | 1,250 | 3,280 |
Deductions | (18,686) | (4,591) | (4,249) |
Balance at End of Year | 44,788 | 61,591 | 64,932 |
Allowance for inventory obsolescence | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | 24,206 | 22,956 | 19,676 |
Additions Charged to Costs and Expenses | 1,883 | 1,250 | 3,280 |
Balance at End of Year | 26,089 | 24,206 | 22,956 |
Allowance for credit losses | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | 37,385 | 41,976 | 46,225 |
Deductions | (18,686) | (4,591) | (4,249) |
Balance at End of Year | $ 18,699 | $ 37,385 | $ 41,976 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |