Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 16, 2021 | Jun. 30, 2020 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
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 | ||
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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,635,572,360 | ||
Trading Symbol | SKYW | ||
Entity Common Stock, Shares Outstanding | 50,344,080 | ||
Entity Central Index Key | 0000793733 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 215,723 | $ 87,206 |
Marketable securities | 610,185 | 432,966 |
Income tax receivable | 3,916 | 11,141 |
Receivables, net | 34,462 | 82,977 |
Inventories, net | 91,196 | 110,503 |
Other current assets | 27,320 | 35,553 |
Total current assets | 982,802 | 760,346 |
PROPERTY AND EQUIPMENT: | ||
Aircraft and rotable spares | 7,527,555 | 7,078,801 |
Deposits on aircraft | 31,625 | 48,858 |
Buildings and ground equipment | 258,863 | 265,398 |
Total property and equipment, gross | 7,818,043 | 7,393,057 |
Less-accumulated depreciation and amortization | (2,455,995) | (1,998,376) |
Total property and equipment, net | 5,362,048 | 5,394,681 |
OTHER ASSETS | ||
Operating lease right-of-use assets | 282,362 | 336,009 |
Other long-term assets | 260,410 | 166,093 |
Total other assets | 542,772 | 502,102 |
Total assets | 6,887,622 | 6,657,129 |
CURRENT LIABILITIES: | ||
Current maturities of long-term debt | 402,158 | 364,126 |
Accounts payable | 278,677 | 284,473 |
Accrued salaries, wages and benefits | 125,944 | 133,856 |
Current maturities of operating lease liabilities | 82,641 | 94,806 |
Taxes other than income taxes | 26,183 | 15,004 |
Other current liabilities | 26,119 | 32,411 |
Total current liabilities | 941,722 | 924,676 |
LONG-TERM DEBT, net of current maturities | 2,801,538 | 2,628,989 |
DEFERRED INCOME TAXES PAYABLE | 625,931 | 623,580 |
NONCURRENT OPERATING LEASE LIABILITIES | 205,845 | 259,237 |
OTHER LONG-TERM LIABILITIES | 173,041 | 45,633 |
COMMITMENTS AND CONTINGENCIES (Note 6) | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, 5,000,000 shares authorized; none issued | ||
Common stock, no par value, 120,000,000 shares authorized; 82,094,985 and 81,742,937 shares issued, respectively | 704,675 | 686,806 |
Retained earnings | 2,052,006 | 2,079,179 |
Treasury stock, at cost, 31,913,635 and 31,420,179 shares, respectively | (617,136) | (590,971) |
Total stockholders' equity | 2,139,545 | 2,175,014 |
Total liabilities and stockholders' equity | $ 6,887,622 | $ 6,657,129 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 82,094,985 | 81,742,937 |
Treasury stock, at cost, shares | 31,913,635 | 31,420,179 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING REVENUES: | |||
Total operating revenues | $ 2,127,106 | $ 2,971,963 | $ 3,221,679 |
OPERATING EXPENSES: | |||
Salaries, wages and benefits | 826,109 | 1,001,746 | 1,201,518 |
Depreciation and amortization | 474,959 | 368,098 | 334,589 |
CARES Act payroll support grant | (345,491) | ||
Special items | 21,869 | ||
Other operating expenses | 222,797 | 243,729 | 272,826 |
Total operating expenses | 2,018,304 | 2,459,705 | 2,747,399 |
OPERATING INCOME | 108,802 | 512,258 | 474,280 |
OTHER INCOME (EXPENSE): | |||
Interest income | 5,879 | 14,131 | 8,823 |
Interest expense | (123,173) | (127,755) | (120,409) |
Other, net | 1,165 | 47,671 | 3,620 |
Total other expense, net | (116,129) | (65,953) | (107,966) |
INCOME (LOSS) BEFORE INCOME TAXES | (7,327) | 446,305 | 366,314 |
PROVISION FOR INCOME TAXES | 1,188 | 106,206 | 85,942 |
NET INCOME (LOSS) | $ (8,515) | $ 340,099 | $ 280,372 |
BASIC EARNINGS (LOSS) PER SHARE (in dollars per share) | $ (0.17) | $ 6.68 | $ 5.40 |
DILUTED EARNINGS (LOSS) PER SHARE (in dollars per share) | $ (0.17) | $ 6.62 | $ 5.30 |
Weighted average common shares: | |||
Basic (in shares) | 50,195,000 | 50,932,000 | 51,914,000 |
Diluted (in shares) | 50,195,000 | 51,375,000 | 52,871,000 |
COMPREHENSIVE INCOME (LOSS): | |||
Net income (loss) | $ (8,515) | $ 340,099 | $ 280,372 |
Net unrealized appreciation on marketable securities, net of taxes | 32 | 18 | |
TOTAL COMPREHENSIVE INCOME (LOSS) | (8,515) | 340,131 | 280,390 |
Flying agreements | |||
OPERATING REVENUES: | |||
Total operating revenues | 2,060,801 | 2,889,265 | 3,169,520 |
Lease, airport services and other | |||
OPERATING REVENUES: | |||
Total operating revenues | 66,305 | 82,698 | 52,159 |
Aircraft maintenance, materials and repairs | |||
OPERATING EXPENSES: | |||
Total operating expenses | 618,989 | 514,313 | 556,259 |
Aircraft fuel | |||
OPERATING EXPENSES: | |||
Total operating expenses | 61,739 | 119,115 | 117,657 |
Airport related expenses | |||
OPERATING EXPENSES: | |||
Total operating expenses | 93,886 | 118,837 | 109,605 |
Aircraft rentals | |||
OPERATING EXPENSES: | |||
Total operating expenses | $ 65,316 | $ 71,998 | $ 154,945 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common StockCumulative Effect, Period of Adoption, as Adjusted | Common Stock | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, as Adjusted | Retained Earnings | Treasury StockCumulative Effect, Period of Adoption, as Adjusted | Treasury Stock | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, as Adjusted | Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, as Adjusted | Total |
Balance at Dec. 31, 2017 | $ 672,593 | $ 1,516,957 | $ (435,178) | $ (50) | $ 1,754,322 | |||||||
Balance (in shares) at Dec. 31, 2017 | 80,398 | (28,644) | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income (loss) | 280,372 | 280,372 | ||||||||||
Net unrealized appreciation on marketable securities, net of tax | 18 | 18 | ||||||||||
Exercise of common stock options and vested restricted stock units | $ 2,174 | 2,174 | ||||||||||
Exercise of common stock options and vested restricted stock units (in shares) | 780 | |||||||||||
Shares acquired from vested employee stock awards for income tax withholdings | $ (13,556) | (13,556) | ||||||||||
Shares acquired from vested employee stock awards for income tax withholdings (in shares) | (239) | |||||||||||
Sale of common stock under employee stock purchase plan | $ 3,038 | 3,038 | ||||||||||
Sale of common stock under employee stock purchase plan (in shares) | 61 | |||||||||||
Stock based compensation expense | $ 13,105 | 13,105 | ||||||||||
Treasury stock purchases | $ (54,448) | (54,448) | ||||||||||
Treasury stock purchases (in shares) | (968) | |||||||||||
Cash dividends declared | (20,744) | (20,744) | ||||||||||
Balance at Dec. 31, 2018 | $ 690,910 | $ 690,910 | $ (13,141) | $ 1,763,444 | 1,776,585 | $ (503,182) | $ (503,182) | $ (32) | (32) | $ (13,141) | $ 1,951,140 | 1,964,281 |
Balance (in shares) at Dec. 31, 2018 | 81,239 | 81,239 | (29,851) | (29,851) | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income (loss) | 340,099 | 340,099 | ||||||||||
Net unrealized appreciation on marketable securities, net of tax | $ 32 | 32 | ||||||||||
Exercise of common stock options and vested restricted stock units | $ 3,106 | 3,106 | ||||||||||
Exercise of common stock options and vested restricted stock units (in shares) | 707 | |||||||||||
Shares acquired from vested employee stock awards for income tax withholdings | $ (9,313) | (9,313) | ||||||||||
Shares acquired from vested employee stock awards for income tax withholdings (in shares) | (173) | |||||||||||
Sale of common stock under employee stock purchase plan | $ 3,165 | 3,165 | ||||||||||
Sale of common stock under employee stock purchase plan (in shares) | 65 | |||||||||||
Stock based compensation expense | $ 5,770 | 5,770 | ||||||||||
Common stock purchased and cancelled | $ (16,145) | (16,145) | ||||||||||
Common stock purchased and cancelled (in shares) | (268) | |||||||||||
Treasury stock purchases | $ (78,476) | (78,476) | ||||||||||
Treasury stock purchases (in shares) | (1,396) | |||||||||||
Cash dividends declared | (24,364) | (24,364) | ||||||||||
Balance at Dec. 31, 2019 | $ 686,806 | $ 686,806 | $ (11,639) | $ 2,067,540 | 2,079,179 | $ (590,971) | $ (590,971) | $ (11,639) | $ 2,163,375 | 2,175,014 | ||
Balance (in shares) at Dec. 31, 2019 | 81,743 | 81,743 | (31,420) | (31,420) | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income (loss) | (8,515) | (8,515) | ||||||||||
Exercise of common stock options and vested restricted stock units | $ 38 | 38 | ||||||||||
Exercise of common stock options and vested restricted stock units (in shares) | 287 | |||||||||||
Shares acquired from vested employee stock awards for income tax withholdings | $ (6,165) | (6,165) | ||||||||||
Shares acquired from vested employee stock awards for income tax withholdings (in shares) | (108) | |||||||||||
Sale of common stock under employee stock purchase plan | $ 2,781 | 2,781 | ||||||||||
Sale of common stock under employee stock purchase plan (in shares) | 65 | |||||||||||
Stock based compensation expense | $ 6,802 | 6,802 | ||||||||||
Treasury stock purchases | $ (20,000) | (20,000) | ||||||||||
Treasury stock purchases (in shares) | (386) | |||||||||||
Cash dividends declared | (7,019) | (7,019) | ||||||||||
Warrants issued under CARES Act agreements | 8,248 | 8,248 | ||||||||||
Balance at Dec. 31, 2020 | $ 704,675 | $ 2,052,006 | $ (617,136) | $ 2,139,545 | ||||||||
Balance (in shares) at Dec. 31, 2020 | 82,095 | (31,914) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | |||
Net unrealized appreciation (depreciation) on marketable securities, tax | $ 10 | $ 6 | |
Cash dividends declared (in dollars per share) | $ 0.14 | $ 0.48 | $ 0.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (8,515) | $ 340,099 | $ 280,372 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 474,959 | 368,098 | 334,589 |
Stock based compensation expense | 6,802 | 10,274 | 13,105 |
Write-off of maintenance assets | 3,255 | ||
Increase in credit loss reserves | 17,087 | ||
Loss on disposal of fixed assets | 445 | ||
Net increase in deferred income taxes | 6,100 | 109,654 | 99,139 |
Gain on sale of ExpressJet subsidiary | (46,525) | ||
Special items | 21,869 | ||
Changes in operating assets and liabilities: | |||
Decrease (increase) in receivables | 26,831 | (40,700) | (21,464) |
Decrease (increase) in income tax receivable | 7,225 | 14,795 | (20,620) |
Decrease (increase) in inventories | 19,307 | (4,303) | (7,935) |
Decrease in other current assets | 8,233 | 2,707 | 77,484 |
Decrease in operating lease right-of-use assets | 53,647 | ||
Increase in operating lease liabilities | (65,557) | (895) | |
Increase in deferred revenue | 110,728 | ||
Decrease in deferred aircraft credits | (14,243) | ||
Increase (decrease) in accounts payable and other current liabilities | (26,984) | (54,043) | 62,107 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 633,563 | 721,030 | 802,534 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of marketable securities | (1,347,775) | (1,938,750) | (2,308,768) |
Sales of marketable securities | 1,170,556 | 1,866,761 | 2,451,344 |
Net cash received from sale of ExpressJet subsidiary | 53,200 | ||
Acquisition of property and equipment: | |||
Aircraft and rotable spare parts | (425,618) | (581,329) | (1,062,380) |
Buildings and ground equipment | (12,678) | (80,586) | (34,397) |
Proceeds from the sale of aircraft, property and equipment | 3,239 | 26,008 | |
Deposits on aircraft | (9,625) | (52,817) | (41,937) |
Return of deposits applied towards acquired aircraft | 27,858 | 46,346 | 49,550 |
Decrease (increase) in other assets | (89,428) | 4,133 | (36,816) |
NET CASH USED IN INVESTING ACTIVITIES | (683,471) | (657,034) | (983,404) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of long-term debt | 406,364 | 200,040 | 784,665 |
Principal payments on long-term debt | (187,404) | (382,442) | (370,775) |
Net proceeds from issuance of common stock | 2,819 | 6,271 | 5,212 |
Purchase of treasury stock | (20,000) | (78,476) | (54,448) |
Purchase of common stock | (16,145) | ||
Employee income tax paid on vested equity awards | (6,165) | (9,313) | (13,556) |
Payment of debt issuance cost | (4,130) | (1,642) | (3,892) |
Payment of cash dividends | (13,059) | (23,467) | (19,744) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 178,425 | (305,174) | 327,462 |
Increase (decrease) in cash and cash equivalents | 128,517 | (241,178) | 146,592 |
Cash and cash equivalents at beginning of period | 87,206 | 328,384 | 181,792 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 215,723 | 87,206 | 328,384 |
Non-cash investing and financing activities: | |||
Acquisition of rotable spare parts | 22,187 | 16,514 | 367 |
Debt assumed on aircraft acquired under operating leases | 14,475 | 59,132 | |
Engines contributed to joint venture | 22,313 | ||
Non-cash assets used to acquire aircraft under operating leases | 153,566 | ||
Lease liability arising from the recognition of right-of-use asset | 456,472 | ||
Warrants issued under CARES Act agreements | 8,248 | ||
Cash paid during the period for: | |||
Interest, net of capitalized amounts | 125,440 | 131,733 | 118,268 |
Income taxes | $ 1,780 | 2,490 | $ 2,661 |
SUPPLEMENTAL DISCLOSURE OF SALE OF SUBSIDIARY: | |||
Decrease in carrying amount of assets | (101,448) | ||
Decrease in carrying amount of liabilities | 68,341 | ||
Cash received from buyers | 79,632 | ||
Gain on sale of subsidiary | $ 46,525 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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. On January 22, 2019, the Company completed the sale of its former wholly owned subsidiary, ExpressJet Airlines, Inc. (“ExpressJet”). As of December 31, 2020, SkyWest Airlines offered scheduled passenger service under code-share agreements with Delta Air Lines, Inc. (“Delta”), United Airlines, Inc. (“United”), American Airlines, Inc. (“American”) and Alaska Airlines, Inc. (“Alaska”) with approximately 1,770 total daily departures to destinations in the United States, Canada, Mexico and the Caribbean. Additionally, the Company provides airport customer service and ground handling services for other airlines throughout its system. As of December 31, 2020, the Company had 601 total aircraft in its fleet, including 452 aircraft in scheduled service under its code-share agreements, summarized as follows: CRJ200 CRJ700 CRJ900 E175 Total Delta 26 6 39 71 142 United 104 19 — 90 213 American — 65 — — 65 Alaska — — — 32 32 Aircraft in scheduled service 130 90 39 193 452 Leased to third parties 2 34 5 — 41 Other* 74 30 4 — 108 Total Fleet 206 154 48 193 601 *As of December 31, 2020, these aircraft have been removed from service and are in the process of being placed under a leasing arrangement with a third party, are aircraft transitioning between code-share agreements with the Company’s major airline partners and being used as a supplemental spare aircraft, or are in the process of being parted out. 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, 2020, 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 Bombardier Aerospace (“Bombardier”): CRJ200s, CRJ700s and CRJ900s, and E175s manufactured by Embraer S.A. (“Embraer”). The CRJ200 is a single-class 50-seat aircraft. 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, ExpressJet (for the periods owned by the Company) 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, 2020, 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 requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company had no restricted cash as of December 31, 2020 and 2019. 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 reported as a component of accumulated other comprehensive income (loss) 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. At December 31, 2020 and 2019, the fair market value of the available-for-sale securities was the amortized cost. The Company’s position in marketable securities as of December 31, 2020 and 2019 was as follows (in thousands): Gross unrealized Gross unrealized At December 31, 2020 Amortized Cost holding gains holding losses Fair market value Total cash and cash equivalents $ 215,723 $ — $ — $ 215,723 Marketable securities: Bond and bond funds $ 117,928 $ — $ — $ 117,928 Commercial Paper 492,257 — — 492,257 Total marketable securities $ 610,185 $ — $ — $ 610,185 Total assets measured at fair value $ 825,908 $ — $ — $ 825,908 Gross unrealized Gross unrealized At December 31, 2019 Amortized Cost holding gains holding losses Fair market value Total cash and cash equivalents $ 87,206 $ — $ — $ 87,206 Marketable securities: Bond and bond funds $ 267,243 $ — $ — $ 267,243 Commercial Paper 165,723 — — 165,723 Total marketable securities $ 432,966 $ — $ — $ 432,966 Total assets measured at fair value $ 520,172 $ — $ — $ 520,172 Inventories Inventories include expendable parts, fuel and supplies and are valued at cost (FIFO basis) less an allowance for obsolescence based on historical results, 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 and salvage values. The inventory allowance as of December 31, 2020 and 2019 was $19.7 million and $15.9 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 7 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, 2020, the Company had approximately $5.4 billion of property and equipment and related assets. In accounting for these long-lived and intangible assets, the Company makes estimates about the expected useful lives of the assets, the expected residual values of certain of these assets, and the potential for impairment based on the fair value of the assets and the cash flows they generate. 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 fleet or contract level. The Company did not recognize any impairment charges of long-lived assets during the years ended December 31, 2020, 2019 and 2018. 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, 2020, 2019 and 2018, the Company capitalized interest costs of approximately $1.7 million, $1.6 million, and $1.5 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 wherein the expense is recorded when the overhaul event occurs. 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 on a monthly basis 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 costs of maintenance for airframe and avionics components, landing gear and other recurring maintenance are expensed as incurred. During the year ended December 31, 2020, the Company wrote-off $3.7 million of long-lived maintenance assets at maintenance locations the Company vacated during the year. Flying Agreements and Airport Customer Service and Other Revenues The Company recognizes flying agreements revenue and airport customer service and other revenues when the service is provided under its code-share agreements. Under the Company’s fixed-fee arrangements (referred to as “capacity purchase agreements”, “fixed-fee arrangements,” or “fixed-fee contracts”) with Delta, United, 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 with additional incentives based on flight completion and on-time performance. The major airline partner also directly pays for or reimburses the Company for certain direct expenses incurred under the capacity purchase arrangement, such as fuel, airport landing fees and airport rents. Under the capacity purchase arrangements, the Company’s performance obligation is met and revenue is recognized 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 year ended December 31, 2020, capacity purchase arrangements represented approximately Under the Company’s prorate arrangements (referred to as a “prorate” or “revenue-sharing” arrangement), 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 anticipates 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. For the year ended December 31, 2020, prorate flying arrangements represented approximately Lease, airport services and other revenues primarily consist of ground handling functions, such as gate and ramp agent services at applicable airports where the Company provides such services. 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. Additionally, airport customer service and other revenues includes revenue generated from aircraft and spare engines leased to third parties. Of the Company’s $5.4 billion of property and equipment, net as of December 31, 2020, $271.1 million of regional jet aircraft and spare engines were leased to third parties under operating leases. The Company mitigates the residual asset risks of these assets by leasing aircraft and engine types that can be operated by the Company in the event of a default. A portion of the Company’s leases to third parties contain variable payments from lessees based on departures where the Company pays for maintenance. 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 following table represents the Company’s flying agreements revenue by type for the years ended December 31, 2020, 2019 and 2018 (in thousands): For the year ended December 31, 2020 2019 2018 Capacity purchase agreements revenue: flight operations $ 945,008 $ 1,538,062 $ 1,856,253 Capacity purchase agreements revenue: aircraft lease 846,933 830,247 814,518 Prorate agreements revenue 268,860 520,956 498,749 Flying agreements revenue $ 2,060,801 $ 2,889,265 $ 3,169,520 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 reflected 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. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of comprehensive income since the use of the aircraft is not a separate activity of the total service provided. Under the Company’s capacity purchase agreements, the Company is paid a fixed amount per month per aircraft over the contract term. The Company recognizes revenue attributed to the Fixed Monthly Payments proportionate to the number of block hours complete during each reporting period, relative to the estimated number of block hours we anticipate completing over the remaining contract term. Due to the material decrease in completed block hours in 2020 from historical levels and from anticipated future levels over the remaining contract terms, the Company determined the amount of Fixed Monthly Payments received in 2020 was disproportionately high relative to the number of block hours completed during 2020. The Company anticipates the future number of block hours it will complete over the remaining capacity purchase agreements will significantly increase from 2020 levels. Accordingly, the Company deferred recognizing revenue of $110.7 million of fixed monthly cash payments the Company received under its capacity purchase agreements during 2020. The Company’s deferred revenue related to the fixed payments will adjust over the remaining contract term for each capacity purchase agreement based on the number of block hours it completes each reporting period relative to the number of block hours it anticipates completing over the remaining contract term of each capacity purchase agreement. In the event a flying agreement includes a mid-term rate reset to adjust rates prospectively and the contractual rates under the Company’s flying agreements have not been finalized at quarterly or annual financial statement dates, the Company applies the variable constraint guidance under Topic 606, where the Company records revenue to the extent it believes that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. 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 Topic 606. The following summarizes the significant provisions of each code-share agreement the Company has with each major airline partner through SkyWest Airlines: Delta Connection Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates Delta Connection Agreement (capacity purchase arrangement) ● E175 ● CRJ 900 ● CRJ 700 71 39 6 ● Individual aircraft have scheduled removal dates from 2021 to 2030 ● Delta Connection Prorate Agreement (prorate arrangement) ● CRJ 200 26 ● Terminable with 30-day United Express Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates United Express Agreements (capacity purchase arrangement) ● E175 ● CRJ 700 ● CRJ 200 90 19 70 ● Individual aircraft have scheduled removal dates under the agreement between 2022 and 2029 ● United Express Prorate Agreement (prorate arrangement) ● CRJ 200 34 ● Terminable with 120-day American Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates American Agreement (capacity purchase arrangement) ● CRJ 700 65 ● ● Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates Alaska Agreement (capacity purchase arrangement) ● E175 32 ● ● In addition to the contractual arrangements described above, as of December 31, 2020, SkyWest Airlines entered into a capacity purchase agreement with American to place 20 E175 aircraft into service. The delivery dates for the 20 new E175 aircraft are currently scheduled for 2021 and 2022 and the aircraft are expected to be placed into service in 2022. SkyWest Airlines also entered into an agreement with American to place 25 used CRJ700s under a multi-year capacity purchase agreement beginning in 2021. Final delivery dates may be adjusted based on various factors. SkyWest Airlines also entered into an agreement with Delta to place one CRJ900 aircraft under a capacity purchase agreement in 2021. The Company anticipates Delta will acquire the aircraft and SkyWest operate the aircraft. 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 lessor if the aircraft is leased and the lease is expiring, 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 arrangement, leasing the aircraft to a third party or parting out the aircraft to use the engines and parts as spare inventory or to lease the engines to a third party. The following table represents the Company’s lease, airport services and other revenues for the years ended December 31, 2020, 2019 and 2018 (in thousands): For the year ended December 31, 2020 2019 2018 Airport customer service and other revenue $ 25,804 $ 45,538 $ 48,236 Operating lease income relating to lease payments 34,791 27,552 3,923 Operating lease income relating to variable lease payments 5,710 9,608 — Lease, airport services and other $ 66,305 $ 82,698 $ 52,159 2021 $ 43,573 2022 43,390 2023 42,837 2024 42,530 2025 39,082 Thereafter 155,089 $ 366,501 The Company’s operating revenues could be impacted by a number of 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, 2020, the Company had $34.5 million in accounts receivable of which $27.5 million related to flying agreements. As of December 31, 2019, the Company had $83.0 million in accounts receivable of which $58.8 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, 2020, the Company had gross receivables of $56.1 million in current assets and gross receivables of $157.4 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 twelve months ended December 31, 2020, the collectability on a note receivable from Kair Enterprises, Inc. associated with the Company’s sale of ExpressJet in 2019 became uncertain due to ExpressJet ceasing operations during the year and the credit ratings were lowered on certain entities for which the Company has outstanding accounts receivable or notes receivable, which were the primary drivers for the increase in the Company’s credit loss reserve when benchmarked against historic default rates as of January 1, 2020, when the Company adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” (“Topic 326”) . The following table summarizes the changes in allowance for credit losses: Allowance for Credit Losses Balance at January 1, 2020 $ 15,388 Additions to credit loss reserves 30,837 Write-offs charged against allowance — Balance at December 31, 2020 $ 46,225 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 (Loss) Per Common Share Basic net income (loss) 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 (loss) per common share. During the year ended December 31, 2020, 1,074,375 shares reserved for the issuance of employee equity awards and warrants to acquire the Company’s common stock were excluded in the computation of Diluted EPS since the Company reported a net loss for the year ended December 31, 2020. During the year ended December 31, 2019, 150,000 performance share units (at target performance) were excluded in the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of December 31, 2019. During the year ended December 31, 2018, 207,000 performance share units (at target performance) were excluded in the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of December 31, 2018. 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, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Numerator: Net income (loss) $ (8,515) $ 340,099 $ 280,372 Denominator: Basic earnings per share weighted average shares 50,195 50,932 51,914 Dilution due to stock options and restricted stock units — 443 957 Diluted earnings per share weighted average shares 50,195 51,375 52,871 Basic earnings (loss) per share $ (0.17) $ 6.68 $ 5.40 Diluted earnings (loss) per share $ (0.17) $ 6.62 $ 5.30 Comprehensive Income (Loss) Comprehensive income (loss) includes charges and credits to stockholders’ equity that are not the result of transactions with the Company’s shareholders, including changes in unrealized appreciation 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. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt and was approximately $3,244.0 million as of December 31, 2020, as compared to the carrying amount of $3,236.0 million as of December 31, 2020. The Company’s fair value of long-term debt as of December 31, 2019 was $3,049.1 million as compared to the carrying amount of $3,017.5 million as of December 31, 2019. Segment Reporting Generally accepted accounting principles require disclosures related to components of a company for which separate financial information is available to, and regularly evaluated by, the Company’s chief operating decision maker when deciding how to allocate resources and in assessing performance. The Company’s three operating segments (prior to the sale of ExpressJet in January 2019) consist of the operations conducted by SkyWest Airlines, ExpressJet (for the periods owned by the Company) and SkyWest Leasing. Following the sale of ExpressJet, the Company has two reportable segments: SkyWest Airlines and SkyWest Leasing. Information pertaining to the Company’s reportable segments is presented in Note 3, Segment Reporting Recent Accounting Pronouncements Recently Adopted Standards In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” (“Topic 326”), which requires measurement and recognition of expected credit losses for financial assets held and requires enhanced disclosure regarding significant estimates and judgments used in estimating credit losses. Topic 326 is effective for the Company beginning January 1, 2020. The Company adopted Topic 326 on January 1, 2020. The Company’s primary financial assets as of December 31, 2019 included trade receivables from its flying agreements, a note receivable from the sale of ExpressJet, and receivables from aircraft manufacturers and other third parties in the airline industry. The Company recorded a credit loss of |
Impact of the COVID-19 Pandemic
Impact of the COVID-19 Pandemic | 12 Months Ended |
Dec. 31, 2020 | |
Impact of the COVID-19 Pandemic | |
Impact of the COVID-19 Pandemic | (2) Impact of the COVID-19 Pandemic COVID-19, which was declared a global health pandemic by the World Health Organization in March 2020, has continued to spread around the world and driven the implementation and continuation of significant, government-imposed measures to prevent or reduce its spread, including travel restrictions, closing of borders, “shelter in place” orders and business closures. Consequently, the Company and its major airline partners, have experienced an unprecedented decline in the demand for air travel, which has materially and adversely affected the Company’s revenues, particularly under its prorate arrangements. The continued spread of the virus and the ongoing global pandemic has affected nearly all of the domestic and international networks of the Company’s major airline partners for whom it conducts flight operations and relies on to set its flight schedules. While the length and severity of the reduction in demand due to COVID-19 are uncertain, the Company presently expects a continued significant negative impact on its results of operations at a minimum through 2021. In response to these developments, the Company has implemented measures to focus on the personal safety of its passengers and employees, while at the same time seeking to mitigate the impact on the Company’s financial position and operations. These measures include, but are not limited to, the following: Focus on the Personal Safety of Passengers and Employees. ● Working with the Company’s major airline partners to enhance its aircraft cleaning procedures. ● Working with the Company’s major airline partners to provide masks for crewmembers and ensuring that all fleet service personnel have the necessary personal protective equipment for disinfecting the aircraft. ● Providing a number of options to employees who are diagnosed with COVID-19, including pay protection and extended leave options. ● Implementing workforce social distancing and protection measures, and enhanced cleaning of the Company’s facilities, including training facilities, using methods and products similar to what the Company is using on its aircraft. Capacity Reductions. scheduled flights. Therefore, in response to this decreased demand, the Company has significantly reduced its capacity. During the year ended December 31, 2020, the Company’s number of departures and block hours each decreased 30.5% and 33.5%, respectively, from the year ended December 31, 2019. The number of daily scheduled flights operated by the Company may not return to pre-COVID-19 levels by the end of 2021 or possibly thereafter. The Company will continue to work with its major airline partners regarding future schedules and make demand-driven adjustments to its capacity as needed. The Company removed 55 CRJ200 aircraft that were operating under the SkyWest Airlines Delta Connection Agreement as a result of contract expirations that were not extended during the 2020 calendar year. The Company additionally terminated its American Prorate Agreement on seven CRJ200 aircraft in the second quarter of 2020 and the Company may have further reductions in the number of CRJ200 aircraft operating under its other prorate agreements. The Company may receive requests by its major airline partners to defer deliveries of new or used aircraft that were previously scheduled for delivery in 2021 and 2022. Cost Reductions. ● Reducing employee-related costs including by: o Offering voluntary unpaid leave to employees. o Suspending all non-scale pay increases. o Instituting a company-wide hiring freeze. ● Delaying non-essential projects and reducing or suspending other discretionary spending. Liquidity. CARES Act. In April 2020, SkyWest Airlines entered into an agreement with Treasury to receive $438.0 million in emergency relief through the CARES Act payroll support program to be paid in installments from April to September 2020, which was amended and increased to $450.7 million. SkyWest Airlines received the $450.7 million in the aggregate under the payroll support program during the year ended December 31, 2020. The relief payments are conditioned on the Company’s agreement to, among other things, refrain from conducting involuntary employee layoffs or furloughs through September 30, 2020. Other conditions include bans on share repurchases and dividends through September 30, 2021, continuing essential air service as directed by the U.S. Department of Transportation and certain limitations on executive compensation. The relief payments received under the CARES Act payroll support program included $345.5 million in a grant and $105.2 million in an unsecured 10-year loan. The loan bears interest at an annual rate of 1.00% for the first five years (through April 2025) and the Secured Overnight Financing Rate plus 2.00% in the final five years. In return, the Company issued to Treasury warrants to purchase 370,720 shares of the Company’s common stock. These warrants have an exercise price of $28.38 per share and a five-year term from the date of issuance. The relative fair value of the warrants is recorded within stockholder's equity and as a discount reducing the carrying value of the loan, which will be amortized as interest expense in the Company’s income statement over the term of the loan. The proceeds of the grant are recorded in cash and cash equivalents when received and will be recognized as a reduction in expense in CARES Act payroll support grant in our income statement over the periods that the funds are intended to compensate. During the year ended December 31, 2020, the Company recognized $345.5 million of grant proceeds received under the CARES Act payroll support program, as a reduction in payroll expense. See Note 4, "Long-Term Debt," for further discussion of the unsecured loans and warrants to acquire the Company’s shares issued under the CARES Act payroll support program. The CARES Act also provides for up to $25 billion in secured loans to the airline industry. In September 2020 the Company entered into a secured loan and guarantee agreement with Treasury (the “Treasury Loan Agreement”), which permits the Company to borrow up to $573 million. Subsequently, on October 28, 2020, the Company entered into an amendment to the Treasury Loan Agreement that permits the Company to borrow up to $725 million in the aggregate. As of December 31, 2020, the Company has borrowed $60 million and may, at its option, borrow additional amounts in up to two subsequent borrowings until May 28, 2021. The proceeds are to be used for certain general corporate purposes and operating expenses in accordance with the terms and conditions of the Treasury Loan Agreement and the applicable provisions of the CARES Act. The loan will bear interest at a variable rate per annum equal to the London interbank offer rate divided by one minus the Eurodollar Reserve Percentage (as defined in the Treasury Loan Agreement) plus 3.00%. The applicable interest rate for the $60 million loan will be 3.22% per annum through September 15, 2021 at which time the interest rate will reset in accordance with the foregoing formula. In return, the Company agreed to issue to Treasury warrants to purchase shares of the Company’s common stock based on a debt coverage ratio and amounts drawn under the facility. The Company issued warrants to purchase 211,416 shares of the Company’s common stock to Treasury in conjunction with the Company’s $60 million borrowing under the facility. These warrants have an exercise price of $28.38 per share and a five-year term from the date of issuance. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting | |
Segment Reporting | (3) Segment Reporting Generally accepted accounting principles require disclosures related to components of a company for which separate financial information is available to, and regularly evaluated by, the Company’s chief operating decision maker when deciding how to allocate resources and in assessing performance. Prior to the Company’s sale of ExpressJet on January 22, 2019, the Company’s three reporting segments consisted of the operations of SkyWest Airlines, ExpressJet and SkyWest Leasing activities. The segment information presented for ExpressJet reflects the period of time prior to the sale, when ExpressJet was operating as a subsidiary of the Company. 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 segment includes revenue earned under the applicable capacity purchase contracts attributed to operating such aircraft and the respective operating costs. The SkyWest Leasing segment includes applicable revenue earned under the applicable capacity purchase contracts 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. 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. The following represents the Company’s segment data for the years ended December 31, 2020, 2019 and 2018 (in thousands). Year Ended December 31, 2020 SkyWest Airlines SkyWest Leasing Consolidated Operating revenues $ 1,636,762 $ 490,344 $ 2,127,106 Operating expense 1,716,808 301,496 2,018,304 Depreciation and amortization expense 221,216 253,743 474,959 Interest expense 12,381 110,792 123,173 Segment profit (loss) (1) (92,427) 78,056 (14,371) Total assets 2,804,259 4,083,363 6,887,622 Capital expenditures (including non-cash) 124,825 335,658 460,483 Year Ended December 31, 2019 SkyWest Airlines ExpressJet SkyWest Leasing Consolidated Operating revenues $ 2,478,681 $ 24,050 $ 469,232 $ 2,971,963 Operating expense 2,214,632 28,690 216,383 2,459,705 Depreciation and amortization expense 168,246 971 198,881 368,098 Special items 18,508 3,361 — 21,869 Interest expense 13,525 — 114,230 127,755 Segment profit (loss) (1) 250,524 (4,640) 138,619 384,503 Total assets 2,728,964 — 3,928,165 6,657,129 Capital expenditures (including non-cash) 270,191 — 576,279 846,470 Year Ended December 31, 2018 SkyWest Airlines ExpressJet SkyWest Leasing Consolidated Operating revenues $ 2,346,251 $ 564,202 $ 311,226 $ 3,221,679 Operating expense 2,022,560 577,608 147,231 2,747,399 Depreciation and amortization expense 155,511 37,290 141,788 334,589 Interest expense 17,021 2,340 101,048 120,409 Segment profit (loss) (1) 306,670 (15,746) 62,947 353,871 Total assets 2,531,707 279,303 3,502,202 6,313,212 Capital expenditures (including non-cash) 149,731 10,137 996,408 1,156,276 (1) Segment profit is operating income less interest expense |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Debt | |
Long-term Debt | (4) Long-term Debt Long-term debt consisted of the following as of December 31, 2020 and 2019 (in thousands): December 31, December 31, 2020 2019 Notes payable to a financing company, due in semi-annual installments, with a fixed interest rate of 3.25% through 2021, secured by aircraft $ 6,205 $ 18,412 Notes payable to banks, due in semi-annual installments plus interest at 6.24% to 6.51% through 2021, secured by aircraft 7,608 22,557 Notes payable to banks, due in monthly or semi-annual installments, plus interest at 2.68% to 6.86% through 2029, secured by aircraft 424,407 438,878 Notes payable to banks, due in quarterly installments, plus interest at 2.33% to 5.08% through 2032, secured by aircraft 2,618,777 2,537,676 Notes payable to bank, due in monthly installments interest based on LIBOR plus interest spread at 2.65% through 2021 13,795 — Notes payable to US Government, interest due quarterly based on LIBOR plus interest spread currently at 3.22% through 2025, secured by parts and engines 60,000 — Notes payable to US Government, interest due quarterly at 1.00% through 2025 and based on SOFR plus spread from 2025 through 2030, unsecured 105,210 — Long-term debt $ 3,236,002 $ 3,017,523 Current portion of long-term debt (406,005) (367,954) Less long-term portion of unamortized debt issue cost, net (28,459) (20,580) Long-term debt, net of current maturities and debt issue costs $ 2,801,538 $ 2,628,989 Current portion of long-term debt 406,005 367,954 Less current portion of unamortized debt issue cost, net (3,847) (3,828) Current portion of long-term debt, net of debt issue costs $ 402,158 $ 364,126 During 2020, the Company took delivery of six new E175 aircraft that the Company financed through $107.7 million of long-term debt. The debt associated with the six E175 aircraft has a 12-year During 2020, the Company took delivery of 21 used CRJ700 aircraft that the Company financed through $133.5 million of long-term debt. The debt associated with the 10 of the CRJ700 aircraft has a 7.5-year term, is due in quarterly installments with fixed annual interest rates of 3.5% and is secured by the CRJ700 aircraft. The debt associated with 11 of the CRJ700 aircraft has a 5-year term, is due in monthly installments with fixed annual interest rates of 4.0% and is secured by the CRJ700 aircraft. During 2020, in connection with the CARES Act payroll support program, the Company issued to Treasury a promissory note for an aggregate principal amount of $105.2 million and issued warrants to purchase 370,720 shares of the Company’s common stock. The Company has recorded the value of the promissory note and warrants on a relative fair value basis as $105.2 million of long-term debt and $5.0 million in common stock, respectively. These warrants have an exercise price of $28.38 per share and a five-year term from the date of issuance. Additionally, during 2020, in connection with the CARES Act, the Company entered into the Treasury Loan Agreement with Treasury which permits the Company to borrow up to $573 million. Subsequently, on October 28, 2020, the Company entered into an amendment to the Treasury Loan Agreement that permits the Company to borrow up to $725 million in the aggregate. As of December 31, 2020, the Company has drawn $60 million under the agreement and issued warrants to purchase 211,416 shares of the Company’s common stock. The Treasury Loan Agreement is secured by aircraft engines and aircraft parts. The Company may, at its option, borrow additional amounts in up to two subsequent borrowings until May 28, 2021. The proceeds will be used for certain general corporate purposes and operating expenses in accordance with the terms and conditions of the Treasury Loan Agreement and the applicable provisions of the CARES Act. The Company has recorded the value of the promissory note and warrants on a relative fair value basis as $60 million of long-term debt and $3.2 million in common stock, respectively. These warrants have an exercise price of $28.38 per share and a five-year term from the date of issuance. As of December 31, 2020, and 2019, the Company had $3.07 billion and $3.02 billion, respectively, of long-term debt obligations primarily related to the acquisition of aircraft and certain spare engines. The average effective interest rate on the debt related to those long-term debt obligations at December 31, 2020 and 2019, was approximately 4.0% and 4.2%, respectively. During the year ended December 31, 2019, the Company used $30.1 million in cash to extinguish $30.1 million in debt early. These payments did not result in a pre-tax gain or loss in the consolidated statements of comprehensive income (loss). The aggregate amounts of principal maturities of long-term debt as of December 31, 2020 were as follows (in thousands): 2021 $ 406,005 2022 407,554 2023 418,048 2024 372,322 2025 447,251 Thereafter 1,184,822 $ 3,236,002 As of December 31, 2020 and 2019, SkyWest Airlines had a $75 million line of credit. The line of credit includes minimum liquidity and profitability covenants and is secured by certain assets. As of December 31, 2020, the Company obtained waivers for the line of credit agreement that permitted the Company to receive funding under the CARES Act and waived compliance with minimum profitability covenants through June 30, 2021. As of December 31, 2020 and 2019, SkyWest Airlines had no amount outstanding under the line of credit facility. However, at December 31, 2020 and 2019 the Company had $35.5 million and $8.8 million, respectively, in letters of credit issued under the facility which reduced the amount available under the facility to $39.5 million and $66.2 million, respectively. The facility expires on September 1, 2021 and has a variable interest rate of LIBOR plus 2.5% at December 31, 2020. As of December 31, 2020 and 2019, the Company had $61.1 million and $61.7 million, respectively, in letters of credit and surety bonds outstanding with various banks and surety institutions in addition to the letters of credit outstanding under the line of credit. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | (5) Income Taxes The provision for income taxes includes the following components (in thousands): Year ended December 31, 2020 2019 2018 Current tax provision (benefit): Federal $ (4,397) $ (4,395) $ (21,598) State (875) 891 1,465 Foreign — — 1,575 (5,272) (3,504) (18,558) Deferred tax provision (benefit): Federal 6,659 95,655 92,250 State (199) 14,055 12,250 6,460 109,710 104,500 Provision (benefit) for income taxes $ 1,188 $ 106,206 $ 85,942 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 (loss) before the provision for income taxes (in thousands): Year ended December 31, 2020 2019 2018 Computed provision for income taxes at the statutory rate $ (1,539) $ 93,724 $ 76,926 Increase (decrease) in income taxes resulting from: State income tax provision, net of federal income tax benefit 173 15,645 12,711 Non-deductible expenses 2,539 3,934 1,956 Valuation allowance changes affecting the provision for income taxes (892) (517) (1,187) Foreign income taxes, net of federal & state benefit — — 1,192 Excess tax benefits from share-based compensation (1,434) (3,525) (4,548) Other, net 2,341 (3,055) (1,108) Provision for income taxes $ 1,188 $ 106,206 $ 85,942 For the year ended December 31, 2020, the Company released $0.9 million of valuation allowance against certain deferred tax assets primarily associated with state net operating losses with a limited carry forward period. For the year ended December 31, 2019, the Company released $0.5 million of valuation allowance against certain deferred tax assets primarily associated with ExpressJet state net operating losses. For the year ended December 31, 2018, the Company released The Company recorded a $1.4 million, $3.5 million and $4.5 million benefit from share-based compensation in 2020, 2019, and 2018, 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 when stock awards vest. The significant components of the Company’s net deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows (in thousands): As of December 31, 2020 2019 Deferred tax assets: Accrued benefits $ 19,668 $ 20,848 Net operating loss carryforward 229,815 358,685 AMT credit carryforward — 4,397 Aircraft credits 12,765 9,114 Deferred revenue 27,076 — Accrued reserves and other 34,816 17,225 Total deferred tax assets 324,140 410,269 Valuation allowance — (892) Deferred tax liabilities: Accelerated depreciation (950,071) (1,032,957) Total deferred tax liabilities (950,071) (1,032,957) Net deferred tax liability $ (625,931) $ (623,580) At %, respectively. The Company anticipated that the federal and state net operating losses will start to expire in 2036 and 2021, respectively. As of December 31, 2019, the Company also had an alternative minimum tax credit of approximately $4.4 million, which did not expire. Under the CARES Act of 2020, these credits were realized by claiming a refundable credit during 2020. The Company has no ongoing federal or state examinations. Under ASC Topic 740, the accounting guidance related to uncertainty in tax positions requires that the impact of a tax position be recognized in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2020, 2019 and 2018 is as follows (in thousands) : Year ended December 31, 2020 2019 2018 Unrecognized tax benefits at the beginning of year $ 14,620 $ 14,553 $ 2,223 Gross increases - current year tax positions — — 13,899 Gross increases - prior year tax positions 360 67 — Gross decreases - prior year tax positions — — (1,569) Unrecognized tax benefits at end of year $ 14,980 $ 14,620 $ 14,553 Interest and penalties in year-end balance $ 427 $ 67 $ — For the years ending December 31, 2020 and 2019, the Company recorded $360,000 and $67,000, 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, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | (6) 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 significant assumptions in determining the workers compensation liability such as an estimation of loss payment and loss reporting development patterns. At December 31, 2020 and 2019, the Company’s accrued workers’ compensation liability totaled $20.7 million and $23.9 million, respectively. 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, 2020, 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, 2020, 2019 and 2018, the Company’s contractual relationships with Delta and United combined accounted for approximately 76.4%, 77.6% and 81.4%, respectively of the Company’s total revenues. Employees Under Collective Bargaining Agreements As of December 31, 2020, the Company had approximately 12,502 full- time equivalent employees. Although Aircraft Purchase Commitments As of December 31, 2020, the Company had a purchase commitment to purchase 20 new E175 aircraft in late 2021 and early 2022. Subsequent to December 31, 2020, the Company entered into a purchase commitment to purchase 12 used CRJ700 aircraft in 2021. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | (7) Leases Effective January 1, 2019, the Company adopted Topic 842. 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 As of December 31, 2020, excluding aircraft financed by our major partners that we operate for them under contract, the Company had 41 aircraft under long-term lease agreements with remaining terms ranging from less than one year to ten years. With the adoption of Topic 842, the Company evaluated whether leased aircraft asset groups within the Company’s fleet were impaired. Under the transition guidance for Topic 842, a company is permitted to recognize a previously unrecognized impairment related to a right-of-use asset in the period prior to the adoption date of Topic 842 if the event giving rise to the impairment occurred before the adoption date. In 2016, the Company recorded an impairment on certain of its long-lived assets, which included the Company’s CRJ200 aircraft . In 2016, the market lease rate was less than the contractual lease rate on the Company’s CRJ200 leased aircraft. The Company recorded an impairment of 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 airport. The remaining lease terms for facility space vary from one month to 36 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, 2020, the Company’s right-of-use assets were $282.4 million, the Company’s current maturities of operating lease liabilities were $82.6 million, and the Company’s noncurrent lease liabilities were $205.8 million. During 2020, the Company paid $90.3 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, 2020. As of December 31, 2020 Weighted-average remaining lease term Operating leases 6.50 years Weighted-average discount rate Operating leases 6.1% The Company’s lease costs for 2020 and 2019 included the following components (in thousands): For the year ended December 31, 2020 2019 Operating lease cost $ 94,915 $ 104,011 Variable and short-term lease cost 4,619 5,232 Sublease income (6,304) (1,436) Total lease cost $ 93,230 $ 107,807 As of December 31, 2020, 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, or the property may be purchased rather than leased. 2021 $ 85,869 2022 77,780 2023 69,530 2024 28,091 2025 15,751 Thereafter 82,719 $ 359,740 Total rental expense for non-cancelable aircraft operating leases was approximately $65.3 million, $72.0 million and $154.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. The minimum rental expense for airport station rents was approximately $20.1 million, $23.1 million and $19.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | (8) 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, 2020, 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, 2020 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 117,928 $ — $ 117,928 $ — Commercial paper 492,257 — 492,257 — $ 610,185 $ — $ 610,185 $ — Cash, Cash Equivalents and Restricted Cash 215,723 215,723 — — Total Assets Measured at Fair Value $ 825,908 $ 215,723 $ 610,185 $ — Fair Value Measurements as of December 31, 2019 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 267,243 $ — $ 267,243 $ — Commercial paper 165,723 — 165,723 — $ 432,966 $ — $ 432,966 $ — Cash, Cash Equivalents and Restricted Cash 87,206 87,206 — — Total Assets Measured at Fair Value $ 520,172 $ 87,206 $ 432,966 $ — The Company’s “Marketable Securities” classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No significant transfers between Level 1, Level 2 and Level 3 occurred during the year ended December 31, 2020. The Company’s policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period. |
Special Items
Special Items | 12 Months Ended |
Dec. 31, 2020 | |
Special Items | |
Special Items | (9) Special Items The following table summarizes the components of the Company's special items, for the year ended December 31, 2020, 2019 and 2018 (in thousands): Year ended December 31, 2020 2019 2018 Special items: Parts Credit 1 $ — $ 18,508 $ — Employee severance 2 — 3,361 — Total special items $ — $ 21,869 $ — (1) The Company terminated an agreement with an aircraft manufacturer that obligated the Company to future aircraft lease return conditions on aircraft the Company leased. In conjunction with the terminated agreement, the aircraft manufacturer released the Company from the future aircraft lease return obligations and the Company agreed to terminate aircraft part credits previously issued by the manufacturer to the Company. As a result of the terminated agreement, the Company recorded a non-cash expense of $18.5 million (pre-tax) during 2019 to write-off the terminated aircraft part credits, which was reflected as a special items operating expense in the consolidated statement of comprehensive income. These special items are reflected in the SkyWest Airlines operating expenses under Note 3 Segment Reporting . (2) During 2019, the Company incurred $3.4 million of employee severance related costs associated with the sale of ExpressJet that are also reflected in special items. These special items are reflected in the ExpressJet operating expenses under Note 3 Segment Reporting . |
Capital Transactions
Capital Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Capital Transactions | |
Capital Transactions | (10) 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 administered by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”). As of December 31, 2020, the 2019 Incentive Plan had 4.1 million shares remaining available for future issuance. Stock Options The fair value of stock options awarded under the Company’s stock option plans has been estimated as of the grant date using the Black-Scholes option pricing model. The Company uses historical data to estimate option exercises and employee termination in the option pricing model. The expected term of options granted is derived from the output of the option pricing model and represents the period of time that options granted are expected to be outstanding. The expected volatilities are based on the historical volatility of the Company’s traded stock and other factors. During the years ended December 31, 2020, 2019 and 2018, the Company did not grant any options to purchase shares of common stock to its employees. Options are exercisable for a period as defined by the Compensation Committee on the date granted; however, no stock option will be exercisable before six months have elapsed from the date of grant and no stock option shall be exercisable after seven years from the date of grant. The following table summarizes the stock option activity for all of the Company’s plans for the years ended December 31, 2020, 2019 and 2018. 2020 2019 2018 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 60,231 14.74 3.1 years $ 3,005.1 300,580 $ 13.70 458,103 $ 13.73 Granted — — — — — — Exercised (2,578) 14.78 (232,514) 13.36 (157,523) 13.80 Cancelled — — (7,835) 15.86 — — Outstanding at end of year 57,653 14.74 2.1 years $ 1,474.5 60,231 14.74 300,580 13.70 Exercisable at December 31, 2020 57,653 14.74 2.1 years $ 1,474.5 Exercisable at December 31, 2019 60,231 14.74 3.1 years $ 3,005.1 The total intrinsic value of options to acquire shares of the Company’s common stock that were exercised during the years ended December 31, 2020, 2019 and 2018 was $0.1 million, $10.5 million and $7.1 million, respectively. All of the Company’s stock options were vested as of December 31, 2020. The following table summarizes information about the Company’s stock options outstanding at December 31, 2020: Options Outstanding Options Exercisable Weighted Average Number Remaining Weighted Average Number Weighted Average Range of Exercise Prices Outstanding Contractual Life Exercise Price Exercisable Exercise Price $13.00 to $13.99 2,034 0.1 years $ 13.51 2,034 $ 13.51 $14.00 to $15.00 55,619 1.1 years 14.78 55,619 14.78 $13.00 to $15.00 57,653 1.1 years $ 14.74 57,653 $ 14.74 Restricted Stock Units During the year ended December 31, 2020, the Company granted 82,505 The following table summarizes the activity of restricted stock units granted to certain Company employees for the years ended December 31, 2020, 2019 and 2018: Weighted-Average Grant-Date Fair Number of RSUs Value Non-vested RSUs outstanding at December 31, 2017 815,590 $ 18.35 Granted 115,044 53.40 Vested (330,580) 13.57 Cancelled (24,273) 27.77 Non-vested RSUs outstanding at December 31, 2018 575,781 $ 27.71 Granted 104,120 48.65 Vested (251,853) 14.79 Cancelled (143,362) 30.85 Non-vested RSUs outstanding at December 31, 2019 284,686 $ 45.21 Granted 82,505 61.45 Vested (103,231) 35.81 Cancelled (25,983) 52.31 Non-vested RSUs outstanding at December 31, 2020 237,977 $ 54.15 Performance Stock Units During the year ended December 31, 2020, the Compensation Committee granted performance share units, which are performance based restricted stock units, to certain Company employees. The PSUs are based on cumulative three-year performance-based metrics ending December 31, 2022 that the Company must meet before those awards may be measured and earned. 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 2020, the Compensation Committee awarded 83,042 additional shares of stock related to the performance share grant in 2017 based on the Company’s performance for the three years ended December 31, 2019 measured against the pre-established targets for the same period. The Compensation Committee will determine the achievement of performance results and corresponding vesting of performance shares for each year’s grant in 2018, 2019 and 2020 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 200% of the original granted amount for performance share units granted in 2020, 2019 and 2018. The following table summarizes the activity of performance share units granted at target as of December 31, 2020: Weighted-Average Grant-Date Number of PSUs Fair Value Non-vested PSUs outstanding at December 31, 2017 468,576 $ 19.70 Granted 90,264 53.41 Additional PSUs awarded from the 2015 grant 92,335 13.62 Vested (277,029) 13.62 Cancelled (3,229) 30.09 Non-vested PSUs outstanding at December 31, 2018 370,917 $ 30.84 Granted 87,864 48.81 Additional PSUs awarded from the 2016 grant 67,853 14.80 Vested (203,582) 14.80 Cancelled (89,481) 34.70 Non-vested PSUs outstanding at December 31, 2019 233,571 $ 45.44 Granted 69,132 61.45 Additional PSUs awarded from the 2017 grant 83,042 35.81 Vested (166,084) 35.81 Cancelled (23,052) 53.66 Non-vested PSUs outstanding at December 31, 2020 196,609 $ 54.17 During the years ended December 31, 2020, 2019 and 2018 the Company granted fully-vested shares of common stock to the Company’s directors in the amounts of 14,643, 18,576 and 15,165 shares, respectively, with a weighted average grant-date fair value of $61.45, $48.45, and $53.40 respectively. During the year ended December 31, 2020, 2019 and 2018, the Company recorded equity-based compensation expense of $6.8 million, $10.3 million and $13.1 million, respectively. Additionally, the Company incurred $7.9 million of employee severance related costs associated with the sale of ExpressJet, partially offset by a forfeiture credit of $4.5 million, primarily resulting from stock-based compensation awards that terminated upon the sale of ExpressJet during 2019. As of December 31, 2020, the Company had $9.2 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. 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 During the year ended December 31, 2020 the Company issued to Treasury warrants to purchase 370,720 shares of the Company’s common stock as part of the CARES Act payroll support. xercise price of $28.38 per share for a five-year term from the date of issuance. Additionally, the Company issued to Treasury warrants to purchase 211,416 shares of the Company’s common stock in conjunction with the Company’s $60 million borrowing under the CARES Act Secured Loan facility. warrants were issued with an e xercise price of $28.38 per share for a five-year term from the date of issuance. The weighted average fair value of these warrants was estimated at $15.22 |
Retirement Plans and Employee S
Retirement Plans and Employee Stock Purchase Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Plans and Employee Stock Purchase Plans | |
Retirement Plans and Employee Stock Purchase Plans | (11) Retirement Plans and Employee Stock Purchase Plans SkyWest Retirement Plan The Company sponsors the SkyWest, Inc. Employees’ Retirement Plan (the “SkyWest Plan”). Employees who are at least 18 years of age are eligible for participation in the SkyWest Plan. Employees may elect to make contributions to the SkyWest Plan. 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. Additionally, a discretionary contribution may be made by the Company. The Company’s combined contributions to the SkyWest Plan were $31.9 million, $40.7 million and $35.6 million for the years ended December 31, 2020, 2019 and 2018, 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, 2020, 2019 and 2018: Year ended December 31, 2020 2019 2018 Number of shares purchased 65,512 65,148 60,950 Average price of shares purchased $ 42.45 $ 48.58 $ 49.85 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, 2020, 2019 and 2018. |
Stock Repurchase
Stock Repurchase | 12 Months Ended |
Dec. 31, 2020 | |
Stock Repurchase | |
Stock Repurchase | (12) Stock Repurchase The Company’s Board of Directors has adopted a stock repurchase program which authorizes 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 stock repurchase program authorizes the repurchase of up to $250.0 million of the Company’s common stock commencing on February 5, 2019, of which $139.6 million remained available at December 31, 2020. Under the terms of the Treasury Loan Agreement, the Company is restricted from repurchasing shares of its common stock for a twelve-month period following repayment of the loan in full. During the years ended December 31, 2020, 2019 and 2018, the Company repurchased 0.4 million, 1.7 million and 1.0 million shares of common stock for approximately $20.0 million, $94.6 million and $54.4 million, respectively at a weighted average price per share of $51.87, $56.86 and $56.25, respectively. Additionally, during the year ended December 31, 2020, 2019 and 2018, the Company paid $6.2 million, $9.3 million and $13.6 million, respectively, for a net settlement of the income tax obligation on employee equity awards that vested during the applicable periods. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related-Party Transactions | |
Related-Party Transactions | (13) Related-Party Transactions During the year ended December 31, 2020, the Company purchased $223,050 of spare aircraft parts from an entity affiliated with a director of the Company. |
Gain on Sale of ExpressJet
Gain on Sale of ExpressJet | 12 Months Ended |
Dec. 31, 2020 | |
Gain on Sale of ExpressJet | |
Gain on Sale of ExpressJet | (14) Gain on Sale of ExpressJet On January 22, 2019, the Company completed the sale of its former wholly owned subsidiary ExpressJet. The Company recorded a gain of $46.5 million (pre-tax) from the sale of ExpressJet. The closing of the transaction was completed in two parts, through an asset sale and stock sale, as further described below. Asset Sale On January 11, 2019, pursuant to the terms and conditions of the Asset Purchase Agreement, dated as of December 17, 2018, by and among the Company, ExpressJet and United, United acquired certain specified assets and liabilities of ExpressJet, including, among other things, aircraft engines, auxiliary power units, rotable spare parts, ground support equipment and flight training equipment for $60.8 million in cash, subject to certain purchase price adjustments (the “Asset Sale”). Certain assets and liabilities of ExpressJet were expressly excluded from the Asset Sale. Stock Sale Additionally, on January 22, 2019, pursuant to the terms and conditions of the Stock Purchase Agreement, dated as of December 17, 2018, by and among the Company and ManaAir, LLC, a company in which United owns a minority interest (the “Buyer”), the Buyer acquired all of the outstanding shares of capital stock of ExpressJet from the Company for $18.8 million in cash, subject to certain purchase price adjustments (the “Stock Sale,”). To facilitate payment of the purchase price for the Stock Sale, at the closing of the Stock Sale, the Company loaned $26 million to Kair Enterprises, Inc. (the “Borrower”), the majority owner of the Buyer. Such loan accrues interest at the rate of 6.85% per annum, matures on the last business day of the last month immediately preceding the two-year anniversary of the closing of the Stock Sale and is secured by, among other things, the Borrower’s ownership interests in the Buyer. The Company evaluated the collectability of this loan balance as of December 31, 2020 under Topic 326. See Note 1 - Flying Agreements and Airport Customer Services and Other Revenues Allowance for Credit Losses |
Investment in Other Companies
Investment in Other Companies | 12 Months Ended |
Dec. 31, 2020 | |
Investment in Other Companies | |
Investment in Other Companies | (15) Investment in Other Companies During 2019, the Company created a joint venture with Regional One, Inc. (“Regional One”) by investing $22.3 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 its engine purchases, dispositions, lease agreements with third parties and all other material transactions. The Company determined Aero Engines is a variable interest entity as the Company has a 75% ownership interest in Aero Engines and all material decisions require unanimous approval from the Company and Regional One, resulting in disproportionate ownership rights relative to voting rights. As unanimous approval is required for all Aero Engines’ material activities. Aero Engines has no primary beneficiary. 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. The Company purchased 15 spare engines and sold the 15 spare engines to Aero Engines at net book value during 2019. Since the initial investment, the Company has invested an additional $1.0 million into Aero Engines during 2020. Aero Engines had no debt outstanding as of December 31, 2020. As of December 31, 2020, the Company’s investment balance in Aero Engines was $25.5 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 2020 was $1.6 million. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Subsequent Events | (16) Subsequent Events On January 15, 2021, SkyWest Airlines entered into a Payroll Support Program Extension Agreement (the “PSP Extension Agreement”) with Treasury with respect to a payroll grant program under the Consolidated Appropriations Act, 2021 (“2021 Appropriations Act”). Payroll Support Program Extension Agreement Pursuant to the PSP Extension Agreement, SkyWest Airlines expects to receive from Treasury approximately $233.1 million in the aggregate during the first quarter of 2021. In connection with the receipt of financial assistance under the PSP Extension Agreement, SkyWest Airlines is required to comply with the relevant provisions of the 2021 Appropriations Act, many of which are substantially similar to the requirements placed on SkyWest Airlines by the Payroll Support Program under the CARES Act. The relevant provisions include the requirement that the funding be used exclusively for the continuation of payment of employee wages, salaries and benefits. Similar to the Payroll Support Program under the CARES Act, SkyWest Airlines and, in some cases, the Company will also be subject to certain restrictions, including, but not limited to, limitations on involuntary terminations, salary reductions and furloughs through March 31, 2021, restrictions on the payment of dividends and the repurchase of shares through October 1, 2022, and certain limitations on executive compensation. SkyWest Airlines is also required to recall employees involuntarily terminated or furloughed after September 30, 2020 with pay from December 1, 2020 to March 31, 2021. Promissory Note As partial compensation to Treasury for the provision of financial assistance under the PSP Extension Agreement, SkyWest Airlines issued, and the Company guaranteed, a promissory note (the “Promissory Note”) to Treasury on the Closing Date. The Promissory Note provides for SkyWest Airlines’ unconditional promise to pay to Treasury the expected principal sum of up to approximately $39.9 million. The Promissory Note will bear interest at a rate equal to 1.00% per annum until the fifth anniversary of the Closing Date, and 2.00% plus an interest rate based on the secured overnight financing rate per annum (but not less than 0.00%) thereafter until the tenth anniversary of the Closing Date (the “Maturity Date”). Accrued interest will be payable in arrears on the last business day of each of March and September of each year, beginning with March 31, 2021. The aggregate unpaid principal amount of the Promissory Note, all accrued and unpaid interest and all other amounts payable under the Promissory Note will be due and payable on the Maturity Date. Warrant Agreement and Warrants In connection with the PSP Extension Agreement and as partial compensation to Treasury for the provision of financial assistance under the PSP Extension Agreement, the Company will issue warrants (each a “Warrant” and, collectively, the “Warrants”) to Treasury to purchase up to an expected aggregate of 98,815 shares (the “Warrant Shares”) of the Company’s common stock, at an exercise price of $40.41 per share, which was the closing price of the Common Stock on The Nasdaq Stock Market on December 24, 2020. The Warrants will be issued pursuant to the terms of a Warrant Agreement entered into by the Company and Treasury on January 15, 2021. The number of Warrant Shares to be issued is subject to adjustment as a result of certain anti-dilution provisions contained in the Warrants. Treasury Loan Agreement Borrowing Extension On January 15, 2021, SkyWest Airlines and the Company entered into an additional amendment to the Loan Agreement with Treasury to provide that the deadline pursuant to which SkyWest Airlines may, at its discretion, borrow additional amounts under the facility was extended from March 26, 2021 to May 28, 2021. The other terms of the Loan Agreement were not affected. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data (Unaudited) | |
Quarterly Financial Data (Unaudited) | (17) Quarterly Financial Data (Unaudited) Unaudited summarized financial data by quarter for 2020 and 2019 is as follows (in thousands, except per share data): Year ended December 31, 2020 First Second Third Fourth Quarter Quarter Quarter Quarter Year Operating revenues $ 729,936 $ 350,039 $ 457,493 $ 589,638 $ 2,127,106 Operating income 66,321 (4,403) 74,553 (27,669) 108,802 Net income 29,988 (25,715) 33,662 (46,450) (8,515) Net income per common share: Basic 0.60 (0.51) 0.67 (0.93) (0.17) Diluted 0.59 (0.51) 0.66 (0.93) (0.17) Weighted average common shares: Basic: 50,277 50,140 50,181 50,181 50,195 Diluted: 50,559 50,140 50,622 50,181 50,195 Year ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Year Operating revenues $ 723,694 $ 744,383 $ 760,295 $ 743,591 $ 2,971,963 Operating income 96,419 144,093 146,441 125,305 512,258 Net income (1) 88,181 88,052 91,339 72,527 340,099 Net income per common share: Basic 1.71 1.72 1.80 1.44 6.68 Diluted 1.69 1.71 1.79 1.43 6.62 Weighted average common shares: Basic: 51,440 51,145 50,746 50,395 50,932 Diluted: 52,098 51,477 51,129 50,796 51,375 (1) Net income for the first quarter of 2019 included a $46.5 million gain related to the sale of ExpressJet (see Note 14 Gain on Sale of ExpressJet for more details) and a $21.9 million special charge (see Note 9 Special Items for more details). |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 (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, 2020: Allowance for inventory obsolescence $ 15,890 3,786 — $ 19,676 Allowance for doubtful accounts receivable 18 — (18) — Allowance for credit losses (adoption of Topic 326) 15,388 30,837 — 46,225 $ 31,296 34,623 (18) $ 65,901 Year ended December 31, 2019: Allowance for inventory obsolescence $ 22,141 — (6,251) $ 15,890 Allowance for doubtful accounts receivable 158 — (140) 18 $ 22,299 — (6,391) $ 15,908 Year ended December 31, 2018: Allowance for inventory obsolescence $ 17,098 5,043 — $ 22,141 Allowance for doubtful accounts receivable 157 1 — 158 $ 17,255 5,044 — $ 22,299 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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, ExpressJet (for the periods owned by the Company) 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, 2020, 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 requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company had no restricted cash as of December 31, 2020 and 2019. |
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 reported as a component of accumulated other comprehensive income (loss) 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. At December 31, 2020 and 2019, the fair market value of the available-for-sale securities was the amortized cost. The Company’s position in marketable securities as of December 31, 2020 and 2019 was as follows (in thousands): Gross unrealized Gross unrealized At December 31, 2020 Amortized Cost holding gains holding losses Fair market value Total cash and cash equivalents $ 215,723 $ — $ — $ 215,723 Marketable securities: Bond and bond funds $ 117,928 $ — $ — $ 117,928 Commercial Paper 492,257 — — 492,257 Total marketable securities $ 610,185 $ — $ — $ 610,185 Total assets measured at fair value $ 825,908 $ — $ — $ 825,908 Gross unrealized Gross unrealized At December 31, 2019 Amortized Cost holding gains holding losses Fair market value Total cash and cash equivalents $ 87,206 $ — $ — $ 87,206 Marketable securities: Bond and bond funds $ 267,243 $ — $ — $ 267,243 Commercial Paper 165,723 — — 165,723 Total marketable securities $ 432,966 $ — $ — $ 432,966 Total assets measured at fair value $ 520,172 $ — $ — $ 520,172 |
Inventories | Inventories Inventories include expendable parts, fuel and supplies and are valued at cost (FIFO basis) less an allowance for obsolescence based on historical results, 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 and salvage values. The inventory allowance as of December 31, 2020 and 2019 was $19.7 million and $15.9 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 7 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, 2020, the Company had approximately $5.4 billion of property and equipment and related assets. In accounting for these long-lived and intangible assets, the Company makes estimates about the expected useful lives of the assets, the expected residual values of certain of these assets, and the potential for impairment based on the fair value of the assets and the cash flows they generate. 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 fleet or contract level. The Company did not recognize any impairment charges of long-lived assets during the years ended December 31, 2020, 2019 and 2018. |
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, 2020, 2019 and 2018, the Company capitalized interest costs of approximately $1.7 million, $1.6 million, and $1.5 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 wherein the expense is recorded when the overhaul event occurs. 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 on a monthly basis 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 costs of maintenance for airframe and avionics components, landing gear and other recurring maintenance are expensed as incurred. During the year ended December 31, 2020, the Company wrote-off $3.7 million of long-lived maintenance assets at maintenance locations the Company vacated during the year. |
Flying Agreements and Airport Customer Service and Other Revenues | Flying Agreements and Airport Customer Service and Other Revenues The Company recognizes flying agreements revenue and airport customer service and other revenues when the service is provided under its code-share agreements. Under the Company’s fixed-fee arrangements (referred to as “capacity purchase agreements”, “fixed-fee arrangements,” or “fixed-fee contracts”) with Delta, United, 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 with additional incentives based on flight completion and on-time performance. The major airline partner also directly pays for or reimburses the Company for certain direct expenses incurred under the capacity purchase arrangement, such as fuel, airport landing fees and airport rents. Under the capacity purchase arrangements, the Company’s performance obligation is met and revenue is recognized 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 year ended December 31, 2020, capacity purchase arrangements represented approximately Under the Company’s prorate arrangements (referred to as a “prorate” or “revenue-sharing” arrangement), 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 anticipates 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. For the year ended December 31, 2020, prorate flying arrangements represented approximately Lease, airport services and other revenues primarily consist of ground handling functions, such as gate and ramp agent services at applicable airports where the Company provides such services. 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. Additionally, airport customer service and other revenues includes revenue generated from aircraft and spare engines leased to third parties. Of the Company’s $5.4 billion of property and equipment, net as of December 31, 2020, $271.1 million of regional jet aircraft and spare engines were leased to third parties under operating leases. The Company mitigates the residual asset risks of these assets by leasing aircraft and engine types that can be operated by the Company in the event of a default. A portion of the Company’s leases to third parties contain variable payments from lessees based on departures where the Company pays for maintenance. 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 following table represents the Company’s flying agreements revenue by type for the years ended December 31, 2020, 2019 and 2018 (in thousands): For the year ended December 31, 2020 2019 2018 Capacity purchase agreements revenue: flight operations $ 945,008 $ 1,538,062 $ 1,856,253 Capacity purchase agreements revenue: aircraft lease 846,933 830,247 814,518 Prorate agreements revenue 268,860 520,956 498,749 Flying agreements revenue $ 2,060,801 $ 2,889,265 $ 3,169,520 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 reflected 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. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statement of comprehensive income since the use of the aircraft is not a separate activity of the total service provided. Under the Company’s capacity purchase agreements, the Company is paid a fixed amount per month per aircraft over the contract term. The Company recognizes revenue attributed to the Fixed Monthly Payments proportionate to the number of block hours complete during each reporting period, relative to the estimated number of block hours we anticipate completing over the remaining contract term. Due to the material decrease in completed block hours in 2020 from historical levels and from anticipated future levels over the remaining contract terms, the Company determined the amount of Fixed Monthly Payments received in 2020 was disproportionately high relative to the number of block hours completed during 2020. The Company anticipates the future number of block hours it will complete over the remaining capacity purchase agreements will significantly increase from 2020 levels. Accordingly, the Company deferred recognizing revenue of $110.7 million of fixed monthly cash payments the Company received under its capacity purchase agreements during 2020. The Company’s deferred revenue related to the fixed payments will adjust over the remaining contract term for each capacity purchase agreement based on the number of block hours it completes each reporting period relative to the number of block hours it anticipates completing over the remaining contract term of each capacity purchase agreement. In the event a flying agreement includes a mid-term rate reset to adjust rates prospectively and the contractual rates under the Company’s flying agreements have not been finalized at quarterly or annual financial statement dates, the Company applies the variable constraint guidance under Topic 606, where the Company records revenue to the extent it believes that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. 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 Topic 606. The following summarizes the significant provisions of each code-share agreement the Company has with each major airline partner through SkyWest Airlines: Delta Connection Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates Delta Connection Agreement (capacity purchase arrangement) ● E175 ● CRJ 900 ● CRJ 700 71 39 6 ● Individual aircraft have scheduled removal dates from 2021 to 2030 ● Delta Connection Prorate Agreement (prorate arrangement) ● CRJ 200 26 ● Terminable with 30-day United Express Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates United Express Agreements (capacity purchase arrangement) ● E175 ● CRJ 700 ● CRJ 200 90 19 70 ● Individual aircraft have scheduled removal dates under the agreement between 2022 and 2029 ● United Express Prorate Agreement (prorate arrangement) ● CRJ 200 34 ● Terminable with 120-day American Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates American Agreement (capacity purchase arrangement) ● CRJ 700 65 ● ● Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates Alaska Agreement (capacity purchase arrangement) ● E175 32 ● ● In addition to the contractual arrangements described above, as of December 31, 2020, SkyWest Airlines entered into a capacity purchase agreement with American to place 20 E175 aircraft into service. The delivery dates for the 20 new E175 aircraft are currently scheduled for 2021 and 2022 and the aircraft are expected to be placed into service in 2022. SkyWest Airlines also entered into an agreement with American to place 25 used CRJ700s under a multi-year capacity purchase agreement beginning in 2021. Final delivery dates may be adjusted based on various factors. SkyWest Airlines also entered into an agreement with Delta to place one CRJ900 aircraft under a capacity purchase agreement in 2021. The Company anticipates Delta will acquire the aircraft and SkyWest operate the aircraft. 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 lessor if the aircraft is leased and the lease is expiring, 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 arrangement, leasing the aircraft to a third party or parting out the aircraft to use the engines and parts as spare inventory or to lease the engines to a third party. The following table represents the Company’s lease, airport services and other revenues for the years ended December 31, 2020, 2019 and 2018 (in thousands): For the year ended December 31, 2020 2019 2018 Airport customer service and other revenue $ 25,804 $ 45,538 $ 48,236 Operating lease income relating to lease payments 34,791 27,552 3,923 Operating lease income relating to variable lease payments 5,710 9,608 — Lease, airport services and other $ 66,305 $ 82,698 $ 52,159 2021 $ 43,573 2022 43,390 2023 42,837 2024 42,530 2025 39,082 Thereafter 155,089 $ 366,501 The Company’s operating revenues could be impacted by a number of 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, 2020, the Company had $34.5 million in accounts receivable of which $27.5 million related to flying agreements. As of December 31, 2019, the Company had $83.0 million in accounts receivable of which $58.8 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, 2020, the Company had gross receivables of $56.1 million in current assets and gross receivables of $157.4 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 twelve months ended December 31, 2020, the collectability on a note receivable from Kair Enterprises, Inc. associated with the Company’s sale of ExpressJet in 2019 became uncertain due to ExpressJet ceasing operations during the year and the credit ratings were lowered on certain entities for which the Company has outstanding accounts receivable or notes receivable, which were the primary drivers for the increase in the Company’s credit loss reserve when benchmarked against historic default rates as of January 1, 2020, when the Company adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” (“Topic 326”) . The following table summarizes the changes in allowance for credit losses: Allowance for Credit Losses Balance at January 1, 2020 $ 15,388 Additions to credit loss reserves 30,837 Write-offs charged against allowance — Balance at December 31, 2020 $ 46,225 |
Income Taxes | 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 (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic net income (loss) per common share (“Basic EPS”) excludes dilution and is computed by dividing net income 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 (loss) per common share. During the year ended December 31, 2020, 1,074,375 shares reserved for the issuance of employee equity awards and warrants to acquire the Company’s common stock were excluded in the computation of Diluted EPS since the Company reported a net loss for the year ended December 31, 2020. During the year ended December 31, 2019, 150,000 performance share units (at target performance) were excluded in the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of December 31, 2019. During the year ended December 31, 2018, 207,000 performance share units (at target performance) were excluded in the computation of Diluted EPS since the Company had not achieved the minimum target thresholds as of December 31, 2018. 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, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Numerator: Net income (loss) $ (8,515) $ 340,099 $ 280,372 Denominator: Basic earnings per share weighted average shares 50,195 50,932 51,914 Dilution due to stock options and restricted stock units — 443 957 Diluted earnings per share weighted average shares 50,195 51,375 52,871 Basic earnings (loss) per share $ (0.17) $ 6.68 $ 5.40 Diluted earnings (loss) per share $ (0.17) $ 6.62 $ 5.30 |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes charges and credits to stockholders’ equity that are not the result of transactions with the Company’s shareholders, including changes in unrealized appreciation on marketable debt securities. |
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. The fair value of the Company’s long-term debt is estimated based on current rates offered to the Company for similar debt and was approximately $3,244.0 million as of December 31, 2020, as compared to the carrying amount of $3,236.0 million as of December 31, 2020. The Company’s fair value of long-term debt as of December 31, 2019 was $3,049.1 million as compared to the carrying amount of $3,017.5 million as of December 31, 2019. |
Segment Reporting | Segment Reporting Generally accepted accounting principles require disclosures related to components of a company for which separate financial information is available to, and regularly evaluated by, the Company’s chief operating decision maker when deciding how to allocate resources and in assessing performance. The Company’s three operating segments (prior to the sale of ExpressJet in January 2019) consist of the operations conducted by SkyWest Airlines, ExpressJet (for the periods owned by the Company) and SkyWest Leasing. Following the sale of ExpressJet, the Company has two reportable segments: SkyWest Airlines and SkyWest Leasing. Information pertaining to the Company’s reportable segments is presented in Note 3, Segment Reporting |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Standards In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” (“Topic 326”), which requires measurement and recognition of expected credit losses for financial assets held and requires enhanced disclosure regarding significant estimates and judgments used in estimating credit losses. Topic 326 is effective for the Company beginning January 1, 2020. The Company adopted Topic 326 on January 1, 2020. The Company’s primary financial assets as of December 31, 2019 included trade receivables from its flying agreements, a note receivable from the sale of ExpressJet, and receivables from aircraft manufacturers and other third parties in the airline industry. The Company recorded a credit loss of |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Schedule of number of aircraft held by entity | CRJ200 CRJ700 CRJ900 E175 Total Delta 26 6 39 71 142 United 104 19 — 90 213 American — 65 — — 65 Alaska — — — 32 32 Aircraft in scheduled service 130 90 39 193 452 Leased to third parties 2 34 5 — 41 Other* 74 30 4 — 108 Total Fleet 206 154 48 193 601 *As of December 31, 2020, these aircraft have been removed from service and are in the process of being placed under a leasing arrangement with a third party, are aircraft transitioning between code-share agreements with the Company’s major airline partners and being used as a supplemental spare aircraft, or are in the process of being parted out. |
Schedule of marketable securities | At December 31, 2020 and 2019, the fair market value of the available-for-sale securities was the amortized cost. The Company’s position in marketable securities as of December 31, 2020 and 2019 was as follows (in thousands): Gross unrealized Gross unrealized At December 31, 2020 Amortized Cost holding gains holding losses Fair market value Total cash and cash equivalents $ 215,723 $ — $ — $ 215,723 Marketable securities: Bond and bond funds $ 117,928 $ — $ — $ 117,928 Commercial Paper 492,257 — — 492,257 Total marketable securities $ 610,185 $ — $ — $ 610,185 Total assets measured at fair value $ 825,908 $ — $ — $ 825,908 Gross unrealized Gross unrealized At December 31, 2019 Amortized Cost holding gains holding losses Fair market value Total cash and cash equivalents $ 87,206 $ — $ — $ 87,206 Marketable securities: Bond and bond funds $ 267,243 $ — $ — $ 267,243 Commercial Paper 165,723 — — 165,723 Total marketable securities $ 432,966 $ — $ — $ 432,966 Total assets measured at fair value $ 520,172 $ — $ — $ 520,172 |
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 7 years 0 % Leasehold improvements Shorter of 15 years or lease term 0 % Buildings 20 - 39.5 years 0 % |
Schedule of future minimum rental payments for operating leases | The following table summarizes future minimum rental payments primarily related to leased aircraft required under operating leases that had initial or remaining non-cancelable lease terms as of December 31, 2020 (in thousands): 2021 $ 85,869 2022 77,780 2023 69,530 2024 28,091 2025 15,751 Thereafter 82,719 $ 359,740 |
Schedule of allowance for credit losses | The following table summarizes the changes in allowance for credit losses: Allowance for Credit Losses Balance at January 1, 2020 $ 15,388 Additions to credit loss reserves 30,837 Write-offs charged against allowance — Balance at December 31, 2020 $ 46,225 |
Schedule of net income (loss) per common share | Year Ended December 31, 2020 2019 2018 Numerator: Net income (loss) $ (8,515) $ 340,099 $ 280,372 Denominator: Basic earnings per share weighted average shares 50,195 50,932 51,914 Dilution due to stock options and restricted stock units — 443 957 Diluted earnings per share weighted average shares 50,195 51,375 52,871 Basic earnings (loss) per share $ (0.17) $ 6.68 $ 5.40 Diluted earnings (loss) per share $ (0.17) $ 6.62 $ 5.30 |
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, 2020, 2019 and 2018 (in thousands): For the year ended December 31, 2020 2019 2018 Capacity purchase agreements revenue: flight operations $ 945,008 $ 1,538,062 $ 1,856,253 Capacity purchase agreements revenue: aircraft lease 846,933 830,247 814,518 Prorate agreements revenue 268,860 520,956 498,749 Flying agreements revenue $ 2,060,801 $ 2,889,265 $ 3,169,520 |
Airport customer service and other revenue | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Schedule of revenue by type | The following table represents the Company’s lease, airport services and other revenues for the years ended December 31, 2020, 2019 and 2018 (in thousands): For the year ended December 31, 2020 2019 2018 Airport customer service and other revenue $ 25,804 $ 45,538 $ 48,236 Operating lease income relating to lease payments 34,791 27,552 3,923 Operating lease income relating to variable lease payments 5,710 9,608 — Lease, airport services and other $ 66,305 $ 82,698 $ 52,159 |
Delta Connection Agreement | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Schedule of details of aircraft and agreements with other airlines | Delta Connection Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates Delta Connection Agreement (capacity purchase arrangement) ● E175 ● CRJ 900 ● CRJ 700 71 39 6 ● Individual aircraft have scheduled removal dates from 2021 to 2030 ● Delta Connection Prorate Agreement (prorate arrangement) ● CRJ 200 26 ● Terminable with 30-day |
United Express Agreements | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Schedule of details of aircraft and agreements with other airlines | United Express Agreements Agreement Aircraft type Number of Aircraft Term / Termination Dates United Express Agreements (capacity purchase arrangement) ● E175 ● CRJ 700 ● CRJ 200 90 19 70 ● Individual aircraft have scheduled removal dates under the agreement between 2022 and 2029 ● United Express Prorate Agreement (prorate arrangement) ● CRJ 200 34 ● Terminable with 120-day |
American Agreements | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Schedule of details of aircraft and agreements with other airlines | American Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates American Agreement (capacity purchase arrangement) ● CRJ 700 65 ● ● |
Alaska Capacity Purchase Agreement | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Schedule of details of aircraft and agreements with other airlines | Alaska Capacity Purchase Agreement Agreement Aircraft type Number of Aircraft Term / Termination Dates Alaska Agreement (capacity purchase arrangement) ● E175 32 ● ● |
Aircraft | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Schedule of future minimum rental payments for operating leases | 2021 $ 43,573 2022 43,390 2023 42,837 2024 42,530 2025 39,082 Thereafter 155,089 $ 366,501 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting | |
Schedule of Company's segment data | The following represents the Company’s segment data for the years ended December 31, 2020, 2019 and 2018 (in thousands). Year Ended December 31, 2020 SkyWest Airlines SkyWest Leasing Consolidated Operating revenues $ 1,636,762 $ 490,344 $ 2,127,106 Operating expense 1,716,808 301,496 2,018,304 Depreciation and amortization expense 221,216 253,743 474,959 Interest expense 12,381 110,792 123,173 Segment profit (loss) (1) (92,427) 78,056 (14,371) Total assets 2,804,259 4,083,363 6,887,622 Capital expenditures (including non-cash) 124,825 335,658 460,483 Year Ended December 31, 2019 SkyWest Airlines ExpressJet SkyWest Leasing Consolidated Operating revenues $ 2,478,681 $ 24,050 $ 469,232 $ 2,971,963 Operating expense 2,214,632 28,690 216,383 2,459,705 Depreciation and amortization expense 168,246 971 198,881 368,098 Special items 18,508 3,361 — 21,869 Interest expense 13,525 — 114,230 127,755 Segment profit (loss) (1) 250,524 (4,640) 138,619 384,503 Total assets 2,728,964 — 3,928,165 6,657,129 Capital expenditures (including non-cash) 270,191 — 576,279 846,470 Year Ended December 31, 2018 SkyWest Airlines ExpressJet SkyWest Leasing Consolidated Operating revenues $ 2,346,251 $ 564,202 $ 311,226 $ 3,221,679 Operating expense 2,022,560 577,608 147,231 2,747,399 Depreciation and amortization expense 155,511 37,290 141,788 334,589 Interest expense 17,021 2,340 101,048 120,409 Segment profit (loss) (1) 306,670 (15,746) 62,947 353,871 Total assets 2,531,707 279,303 3,502,202 6,313,212 Capital expenditures (including non-cash) 149,731 10,137 996,408 1,156,276 (1) Segment profit is operating income less interest expense |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Debt | |
Schedule of long-term debt | Long-term debt consisted of the following as of December 31, 2020 and 2019 (in thousands): December 31, December 31, 2020 2019 Notes payable to a financing company, due in semi-annual installments, with a fixed interest rate of 3.25% through 2021, secured by aircraft $ 6,205 $ 18,412 Notes payable to banks, due in semi-annual installments plus interest at 6.24% to 6.51% through 2021, secured by aircraft 7,608 22,557 Notes payable to banks, due in monthly or semi-annual installments, plus interest at 2.68% to 6.86% through 2029, secured by aircraft 424,407 438,878 Notes payable to banks, due in quarterly installments, plus interest at 2.33% to 5.08% through 2032, secured by aircraft 2,618,777 2,537,676 Notes payable to bank, due in monthly installments interest based on LIBOR plus interest spread at 2.65% through 2021 13,795 — Notes payable to US Government, interest due quarterly based on LIBOR plus interest spread currently at 3.22% through 2025, secured by parts and engines 60,000 — Notes payable to US Government, interest due quarterly at 1.00% through 2025 and based on SOFR plus spread from 2025 through 2030, unsecured 105,210 — Long-term debt $ 3,236,002 $ 3,017,523 Current portion of long-term debt (406,005) (367,954) Less long-term portion of unamortized debt issue cost, net (28,459) (20,580) Long-term debt, net of current maturities and debt issue costs $ 2,801,538 $ 2,628,989 Current portion of long-term debt 406,005 367,954 Less current portion of unamortized debt issue cost, net (3,847) (3,828) Current portion of long-term debt, net of debt issue costs $ 402,158 $ 364,126 |
Schedule of maturities of long-term debt | The aggregate amounts of principal maturities of long-term debt as of December 31, 2020 were as follows (in thousands): 2021 $ 406,005 2022 407,554 2023 418,048 2024 372,322 2025 447,251 Thereafter 1,184,822 $ 3,236,002 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 Current tax provision (benefit): Federal $ (4,397) $ (4,395) $ (21,598) State (875) 891 1,465 Foreign — — 1,575 (5,272) (3,504) (18,558) Deferred tax provision (benefit): Federal 6,659 95,655 92,250 State (199) 14,055 12,250 6,460 109,710 104,500 Provision (benefit) for income taxes $ 1,188 $ 106,206 $ 85,942 |
Schedule of income tax rate reconciliation | Year ended December 31, 2020 2019 2018 Current tax provision (benefit): Federal $ (4,397) $ (4,395) $ (21,598) State (875) 891 1,465 Foreign — — 1,575 (5,272) (3,504) (18,558) Deferred tax provision (benefit): Federal 6,659 95,655 92,250 State (199) 14,055 12,250 6,460 109,710 104,500 Provision (benefit) for income taxes $ 1,188 $ 106,206 $ 85,942 |
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, 2020 and 2019 are as follows (in thousands): As of December 31, 2020 2019 Deferred tax assets: Accrued benefits $ 19,668 $ 20,848 Net operating loss carryforward 229,815 358,685 AMT credit carryforward — 4,397 Aircraft credits 12,765 9,114 Deferred revenue 27,076 — Accrued reserves and other 34,816 17,225 Total deferred tax assets 324,140 410,269 Valuation allowance — (892) Deferred tax liabilities: Accelerated depreciation (950,071) (1,032,957) Total deferred tax liabilities (950,071) (1,032,957) Net deferred tax liability $ (625,931) $ (623,580) |
Schedule of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2020, 2019 and 2018 is as follows (in thousands) : Year ended December 31, 2020 2019 2018 Unrecognized tax benefits at the beginning of year $ 14,620 $ 14,553 $ 2,223 Gross increases - current year tax positions — — 13,899 Gross increases - prior year tax positions 360 67 — Gross decreases - prior year tax positions — — (1,569) Unrecognized tax benefits at end of year $ 14,980 $ 14,620 $ 14,553 Interest and penalties in year-end balance $ 427 $ 67 $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Summary of related terms and discount rates | The table below presents lease related terms and discount rates as of December 31, 2020. As of December 31, 2020 Weighted-average remaining lease term Operating leases 6.50 years Weighted-average discount rate Operating leases 6.1% |
Summary of lease costs | The Company’s lease costs for 2020 and 2019 included the following components (in thousands): For the year ended December 31, 2020 2019 Operating lease cost $ 94,915 $ 104,011 Variable and short-term lease cost 4,619 5,232 Sublease income (6,304) (1,436) Total lease cost $ 93,230 $ 107,807 |
Schedule of future minimum rental payments for operating leases | The following table summarizes future minimum rental payments primarily related to leased aircraft required under operating leases that had initial or remaining non-cancelable lease terms as of December 31, 2020 (in thousands): 2021 $ 85,869 2022 77,780 2023 69,530 2024 28,091 2025 15,751 Thereafter 82,719 $ 359,740 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements | |
Schedule of assets measured at fair value on a recurring basis | As of December 31, 2020, 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, 2020 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 117,928 $ — $ 117,928 $ — Commercial paper 492,257 — 492,257 — $ 610,185 $ — $ 610,185 $ — Cash, Cash Equivalents and Restricted Cash 215,723 215,723 — — Total Assets Measured at Fair Value $ 825,908 $ 215,723 $ 610,185 $ — Fair Value Measurements as of December 31, 2019 Total Level 1 Level 2 Level 3 Marketable Securities Bonds and bond funds $ 267,243 $ — $ 267,243 $ — Commercial paper 165,723 — 165,723 — $ 432,966 $ — $ 432,966 $ — Cash, Cash Equivalents and Restricted Cash 87,206 87,206 — — Total Assets Measured at Fair Value $ 520,172 $ 87,206 $ 432,966 $ — |
Special Items (Tables)
Special Items (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Special Items | |
Summary of the components of special items | The following table summarizes the components of the Company's special items, for the year ended December 31, 2020, 2019 and 2018 (in thousands): Year ended December 31, 2020 2019 2018 Special items: Parts Credit 1 $ — $ 18,508 $ — Employee severance 2 — 3,361 — Total special items $ — $ 21,869 $ — (1) The Company terminated an agreement with an aircraft manufacturer that obligated the Company to future aircraft lease return conditions on aircraft the Company leased. In conjunction with the terminated agreement, the aircraft manufacturer released the Company from the future aircraft lease return obligations and the Company agreed to terminate aircraft part credits previously issued by the manufacturer to the Company. As a result of the terminated agreement, the Company recorded a non-cash expense of $18.5 million (pre-tax) during 2019 to write-off the terminated aircraft part credits, which was reflected as a special items operating expense in the consolidated statement of comprehensive income. These special items are reflected in the SkyWest Airlines operating expenses under Note 3 Segment Reporting . (2) During 2019, the Company incurred $3.4 million of employee severance related costs associated with the sale of ExpressJet that are also reflected in special items. These special items are reflected in the ExpressJet operating expenses under Note 3 Segment Reporting . |
Capital Transactions (Tables)
Capital Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of stock option activity | 2020 2019 2018 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 60,231 14.74 3.1 years $ 3,005.1 300,580 $ 13.70 458,103 $ 13.73 Granted — — — — — — Exercised (2,578) 14.78 (232,514) 13.36 (157,523) 13.80 Cancelled — — (7,835) 15.86 — — Outstanding at end of year 57,653 14.74 2.1 years $ 1,474.5 60,231 14.74 300,580 13.70 Exercisable at December 31, 2020 57,653 14.74 2.1 years $ 1,474.5 Exercisable at December 31, 2019 60,231 14.74 3.1 years $ 3,005.1 |
Schedule of stock options outstanding | The following table summarizes information about the Company’s stock options outstanding at December 31, 2020: Options Outstanding Options Exercisable Weighted Average Number Remaining Weighted Average Number Weighted Average Range of Exercise Prices Outstanding Contractual Life Exercise Price Exercisable Exercise Price $13.00 to $13.99 2,034 0.1 years $ 13.51 2,034 $ 13.51 $14.00 to $15.00 55,619 1.1 years 14.78 55,619 14.78 $13.00 to $15.00 57,653 1.1 years $ 14.74 57,653 $ 14.74 |
Schedule of restricted stock activity | Weighted-Average Grant-Date Fair Number of RSUs Value Non-vested RSUs outstanding at December 31, 2017 815,590 $ 18.35 Granted 115,044 53.40 Vested (330,580) 13.57 Cancelled (24,273) 27.77 Non-vested RSUs outstanding at December 31, 2018 575,781 $ 27.71 Granted 104,120 48.65 Vested (251,853) 14.79 Cancelled (143,362) 30.85 Non-vested RSUs outstanding at December 31, 2019 284,686 $ 45.21 Granted 82,505 61.45 Vested (103,231) 35.81 Cancelled (25,983) 52.31 Non-vested RSUs outstanding at December 31, 2020 237,977 $ 54.15 |
Performance stock units | |
Schedule of non-vested stock options | Weighted-Average Grant-Date Number of PSUs Fair Value Non-vested PSUs outstanding at December 31, 2017 468,576 $ 19.70 Granted 90,264 53.41 Additional PSUs awarded from the 2015 grant 92,335 13.62 Vested (277,029) 13.62 Cancelled (3,229) 30.09 Non-vested PSUs outstanding at December 31, 2018 370,917 $ 30.84 Granted 87,864 48.81 Additional PSUs awarded from the 2016 grant 67,853 14.80 Vested (203,582) 14.80 Cancelled (89,481) 34.70 Non-vested PSUs outstanding at December 31, 2019 233,571 $ 45.44 Granted 69,132 61.45 Additional PSUs awarded from the 2017 grant 83,042 35.81 Vested (166,084) 35.81 Cancelled (23,052) 53.66 Non-vested PSUs outstanding at December 31, 2020 196,609 $ 54.17 |
Retirement Plans and Employee_2
Retirement Plans and Employee Stock Purchase Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Plans and Employee Stock Purchase Plans | |
Schedule of purchases made under the 2009 Employee Stock Purchase Plans | Year ended December 31, 2020 2019 2018 Number of shares purchased 65,512 65,148 60,950 Average price of shares purchased $ 42.45 $ 48.58 $ 49.85 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data (Unaudited) | |
Schedule of Quarterly Financial Data (Unaudited) | Unaudited summarized financial data by quarter for 2020 and 2019 is as follows (in thousands, except per share data): Year ended December 31, 2020 First Second Third Fourth Quarter Quarter Quarter Quarter Year Operating revenues $ 729,936 $ 350,039 $ 457,493 $ 589,638 $ 2,127,106 Operating income 66,321 (4,403) 74,553 (27,669) 108,802 Net income 29,988 (25,715) 33,662 (46,450) (8,515) Net income per common share: Basic 0.60 (0.51) 0.67 (0.93) (0.17) Diluted 0.59 (0.51) 0.66 (0.93) (0.17) Weighted average common shares: Basic: 50,277 50,140 50,181 50,181 50,195 Diluted: 50,559 50,140 50,622 50,181 50,195 Year ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Year Operating revenues $ 723,694 $ 744,383 $ 760,295 $ 743,591 $ 2,971,963 Operating income 96,419 144,093 146,441 125,305 512,258 Net income (1) 88,181 88,052 91,339 72,527 340,099 Net income per common share: Basic 1.71 1.72 1.80 1.44 6.68 Diluted 1.69 1.71 1.79 1.43 6.62 Weighted average common shares: Basic: 51,440 51,145 50,746 50,395 50,932 Diluted: 52,098 51,477 51,129 50,796 51,375 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Aircraft Fleet (Details) | 12 Months Ended |
Dec. 31, 2020aircraft | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of daily departures | 1,770 |
Number of aircraft held by entity | 601 |
CRJ 200 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 206 |
Number of seats on aircraft | 50 |
CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 154 |
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 900 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 48 |
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 |
E175 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 193 |
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 |
Delta | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 142 |
Percentage of aggregate capacity operated | 47.10% |
Delta | CRJ 200 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 26 |
Delta | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 6 |
Delta | CRJ 900 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 39 |
Delta | E175 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 71 |
United | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 213 |
Percentage of aggregate capacity operated | 31.40% |
United | CRJ 200 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 104 |
United | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 19 |
United | E175 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 90 |
American | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 65 |
Percentage of aggregate capacity operated | 14.40% |
American | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 65 |
Alaska | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 32 |
Percentage of aggregate capacity operated | 7.10% |
Alaska | E175 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 32 |
Aircraft in scheduled service | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 452 |
Aircraft in scheduled service | CRJ 200 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 130 |
Aircraft in scheduled service | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 90 |
Aircraft in scheduled service | CRJ 900 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 39 |
Aircraft in scheduled service | E175 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 193 |
Leased to third parties | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 41 |
Leased to third parties | CRJ 200 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 2 |
Leased to third parties | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 34 |
Leased to third parties | CRJ 900 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 5 |
Other | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 108 |
Other | CRJ 200 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 74 |
Other | CRJ 700 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 30 |
Other | CRJ 900 | |
Nature of Operations and Summary of Significant Accounting Policies [Line Items] | |
Number of aircraft held by entity | 4 |
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, 2020 | Dec. 31, 2019 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents | $ 215,723 | $ 87,206 | $ 328,384 | $ 181,792 |
Amortized Cost | 610,185 | 432,966 | ||
Fair market value | 610,185 | 432,966 | ||
Total Assets Measured at Fair Value - Amortized cost | 825,908 | 520,172 | ||
Total cash and cash equivalents and available for sale securities, fair market value | $ 825,908 | 520,172 | ||
Marketable Securities | ||||
Maximum period for redemption | 1 year | |||
Bonds and bond funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | $ 117,928 | 267,243 | ||
Fair market value | 117,928 | 267,243 | ||
Commercial paper | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 492,257 | 165,723 | ||
Fair market value | $ 492,257 | $ 165,723 |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories | ||
Inventory allowance | $ 19.7 | $ 15.9 |
Nature of Operations and Summ_8
Nature of Operations and Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Aircraft, rotable spares, and spare engines | Maximum | |
Property and Equipment | |
Depreciable Life | 22 years |
Residual Value (as a percent) | 20.00% |
Ground equipment | |
Property and Equipment | |
Residual Value (as a percent) | 0.00% |
Ground equipment | Maximum | |
Property and Equipment | |
Depreciable Life | 10 years |
Office equipment | |
Property and Equipment | |
Residual Value (as a percent) | 0.00% |
Office equipment | Maximum | |
Property and Equipment | |
Depreciable Life | 7 years |
Leasehold improvements | |
Property and Equipment | |
Residual Value (as a percent) | 0.00% |
Leasehold improvements | Maximum | |
Property and Equipment | |
Depreciable Life | 15 years |
Buildings | |
Property and Equipment | |
Residual Value (as a percent) | 0.00% |
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) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impairment of Long Lived and Intangible Assets | |||
Property and equipment and related assets | $ 5,362,048 | $ 5,394,681 | |
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Interest | |||
Capitalized interest costs | $ 1.7 | $ 1.6 | $ 1.5 |
Long-lived maintenance assets written off | $ 3.7 |
Nature of Operations and Sum_11
Nature of Operations and Summary of Significant Accounting Policies - Flying Agreements (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)aircraft | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Agreements with other airlines | |||||||||||
Percentage of ASMs flown under fixed-fee arrangements | 87.00% | ||||||||||
Percentage of ASMs flown under pro-rate arrangements | 13.00% | ||||||||||
Revenues [Abstract] | |||||||||||
Operating revenues | $ 589,638 | $ 457,493 | $ 350,039 | $ 729,936 | $ 743,591 | $ 760,295 | $ 744,383 | $ 723,694 | $ 2,127,106 | $ 2,971,963 | $ 3,221,679 |
Rental income under operating leases | |||||||||||
Operating lease revenue | 34,791 | ||||||||||
Operating lease income relating to lease payments | 27,552 | 3,923 | |||||||||
Operating lease income relating to variable lease payments | 5,710 | 9,608 | |||||||||
Future minimum rental income | |||||||||||
2021 | 43,573 | 43,573 | |||||||||
2022 | 43,390 | 43,390 | |||||||||
2023 | 42,837 | 42,837 | |||||||||
2024 | 42,530 | 42,530 | |||||||||
2025 | 39,082 | 39,082 | |||||||||
Thereafter | 155,089 | 155,089 | |||||||||
Total | 366,501 | 366,501 | |||||||||
Property and equipment and related assets | 5,362,048 | 5,394,681 | 5,362,048 | 5,394,681 | |||||||
Deferred recognizing revenue | 110,728 | ||||||||||
Accounts receivable | 34,500 | 83,000 | 34,500 | 83,000 | |||||||
Gross receivables current | 56,100 | 56,100 | |||||||||
Gross receivables Non-current | 157,400 | 157,400 | |||||||||
Balance | $ 15,388 | 15,388 | |||||||||
Additions to credit loss reserve | 30,837 | ||||||||||
Balance | 46,225 | 15,388 | $ 46,225 | 15,388 | |||||||
Sky West Airlines Inc | Delta Connection Agreement | |||||||||||
Future minimum rental income | |||||||||||
Agreement term | 5 years 8 months 12 days | ||||||||||
Sky West Airlines Inc | Delta Connection Prorate Agreement | |||||||||||
Future minimum rental income | |||||||||||
Notice period for termination of agreement | 30 days | ||||||||||
Sky West Airlines Inc | United Express Agreements | |||||||||||
Future minimum rental income | |||||||||||
Agreement term | 4 years 10 months 24 days | ||||||||||
Sky West Airlines Inc | United Express Prorate Agreement | |||||||||||
Future minimum rental income | |||||||||||
Notice period for termination of agreement | 120 days | ||||||||||
Third Party Lease | |||||||||||
Future minimum rental income | |||||||||||
Property and equipment and related assets | 271,100 | $ 271,100 | |||||||||
CRJ 200 | |||||||||||
Future minimum rental income | |||||||||||
Number of seats on aircraft | aircraft | 50 | ||||||||||
CRJ 200 | Sky West Airlines Inc | Delta Connection Prorate Agreement | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 26 | ||||||||||
CRJ 200 | Sky West Airlines Inc | United Express Agreements | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 70 | ||||||||||
CRJ 200 | Sky West Airlines Inc | United Express Prorate Agreement | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 34 | ||||||||||
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 | American Capacity Purchase Agreement | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 65 | ||||||||||
Agreement term | 3 years 3 months 18 days | ||||||||||
CRJ 700 | Sky West Airlines Inc | Delta Connection Agreement | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 6 | ||||||||||
CRJ 700 | Sky West Airlines Inc | United Express Agreements | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 19 | ||||||||||
CRJ 700 | American | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 25 | ||||||||||
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 | Sky West Airlines Inc | Delta Connection Agreement | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 39 | ||||||||||
CRJ 900 | Delta | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 1 | ||||||||||
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 | Alaska Capacity Purchase Agreement | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 32 | ||||||||||
Agreement term | 8 years 2 months 12 days | ||||||||||
E175 | Sky West Airlines Inc | Delta Connection Agreement | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 71 | ||||||||||
E175 | Sky West Airlines Inc | United Express Agreements | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 90 | ||||||||||
E175 | American | |||||||||||
Future minimum rental income | |||||||||||
Number of aircraft | aircraft | 20 | ||||||||||
Flying agreements | |||||||||||
Revenues [Abstract] | |||||||||||
Operating revenues | $ 2,060,801 | 2,889,265 | 3,169,520 | ||||||||
Future minimum rental income | |||||||||||
Accounts receivable | $ 27,500 | $ 58,800 | 27,500 | 58,800 | |||||||
Flight operations | |||||||||||
Revenues [Abstract] | |||||||||||
Operating revenues | 945,008 | 1,538,062 | 1,856,253 | ||||||||
Aircraft lease and fixed revenue | |||||||||||
Revenues [Abstract] | |||||||||||
Operating revenues | 846,933 | 830,247 | 814,518 | ||||||||
Prorate agreements | |||||||||||
Revenues [Abstract] | |||||||||||
Operating revenues | 268,860 | 520,956 | 498,749 | ||||||||
Airport customer service and other revenue | |||||||||||
Rental income under operating leases | |||||||||||
Operating lease revenue | 25,804 | 45,538 | 48,236 | ||||||||
Lease, airport services and other | |||||||||||
Rental income under operating leases | |||||||||||
Total operating lease income | $ 66,305 | $ 82,698 | $ 52,159 |
Nature of Operations and Sum_12
Nature of Operations and Summary of Significant Accounting Policies - Net Income (Loss) Per Common Share and Fair Value (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($)segment$ / sharesshares | Dec. 31, 2019USD ($)segment$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Net Income (Loss) Per Common Share | |||||||||||
Number of outstanding units not included in computation of Diluted EPS (in shares) | 1,074,375 | 150,000 | 207,000 | ||||||||
Numerator: | |||||||||||
Net income (loss) | $ | $ (46,450) | $ 33,662 | $ (25,715) | $ 29,988 | $ 72,527 | $ 91,339 | $ 88,052 | $ 88,181 | $ (8,515) | $ 340,099 | $ 280,372 |
Denominator: | |||||||||||
Basic earnings per share weighted average shares (in shares) | 50,181,000 | 50,181,000 | 50,140,000 | 50,277,000 | 50,395,000 | 50,746,000 | 51,145,000 | 51,440,000 | 50,195,000 | 50,932,000 | 51,914,000 |
Dilution due to stock options and restricted stock units (in shares) | 443,000 | 957,000 | |||||||||
Diluted earnings per share weighted average shares | 50,181,000 | 50,622,000 | 50,140,000 | 50,559,000 | 50,796,000 | 51,129,000 | 51,477,000 | 52,098,000 | 50,195,000 | 51,375,000 | 52,871,000 |
Basic earnings (loss) per share (in dollars per share) | $ / shares | $ (0.93) | $ 0.67 | $ (0.51) | $ 0.60 | $ 1.44 | $ 1.80 | $ 1.72 | $ 1.71 | $ (0.17) | $ 6.68 | $ 5.40 |
Diluted earnings (loss) per share (in dollars per share) | $ / shares | $ (0.93) | $ 0.66 | $ (0.51) | $ 0.59 | $ 1.43 | $ 1.79 | $ 1.71 | $ 1.69 | $ (0.17) | $ 6.62 | $ 5.30 |
Fair Value of Financial Instruments | |||||||||||
Fair value of long-term debt | $ | $ 3,244,000 | $ 3,049,100 | $ 3,244,000 | $ 3,049,100 | |||||||
Total long-term debt | $ | $ 3,236,002 | $ 3,017,523 | $ 3,236,002 | $ 3,017,523 | |||||||
Segment Reporting | |||||||||||
Number of operating segments | segment | 3 | ||||||||||
Number of reporting segments | segment | 2 |
Nature of Operations and Sum_13
Nature of Operations and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Credit loss | $ 30,837 | |
Accounting Standards Update 2016-13 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Credit loss | $ 11,600 |
Impact of the COVID-19 Pandem_2
Impact of the COVID-19 Pandemic (Details) $ / shares in Units, $ in Thousands | Jan. 22, 2019 | Jun. 30, 2020aircraft | Dec. 31, 2020USD ($)itemaircraft$ / sharesshares | Oct. 28, 2020USD ($) | Sep. 30, 2020USD ($) | Apr. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Liquid Assets | $ 1,530,400 | ||||||
Cash and Marketable Securities | 825,900 | ||||||
Line of credit facility, reduction of amount available | 39,500 | ||||||
Borrowed amount | $ 3,236,002 | $ 3,017,523 | |||||
Interest rate (as a percent) | 6.85% | ||||||
COVID-19 | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Decrease in departures (as a percent) | 30.50% | ||||||
Decrease in block hours (as a percent) | 33.50% | ||||||
Maximum | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
CARES Act, secured loans to airline industry | $ 25,000,000 | ||||||
PSP agreement | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Grants receivable | 450,700 | $ 450,700 | $ 438,000 | ||||
Proceeds | $ 345,500 | ||||||
CRJ 200 | Sky West Airlines Inc | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Number of aircraft removed from service | aircraft | 55 | ||||||
CRJ 200 | Sky West Airlines Inc | American Prorate Agreement | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Number of aircraft removed from service | aircraft | 7 | ||||||
Grant | PSP agreement | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Principal amount | $ 345,500 | ||||||
Unsecured term loan | PSP agreement | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Principal amount | $ 105,200 | ||||||
Debt term | 10 years | ||||||
Unsecured term loan | First five years | PSP agreement | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Interest rate (as a percent) | 1.00% | ||||||
Unsecured term loan | Final five years | PSP agreement | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Interest rate (as a percent) | 2.00% | ||||||
Secured loan | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Borrowed amount | $ 60,000 | ||||||
Number of subsequent borrowings | item | 2 | ||||||
Interest rate (as a percent) | 3.22% | ||||||
Warrants to purchase shares | shares | 211,416 | ||||||
Warrants exercise price | $ / shares | $ 28.38 | ||||||
Warrant term | 5 years | ||||||
Maximum borrowing capacity | $ 725,000 | 573,000 | |||||
Secured loan | COVID-19 | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Liquid Assets | $ 665,000 | ||||||
Secured loan | LIBOR | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Basis spread on variable rate | 3.00% | ||||||
Secured loan | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Borrowed amount | $ 60,000 | ||||||
Number of subsequent borrowings | aircraft | 2 | ||||||
Warrants to purchase shares | shares | 211,416 | ||||||
Warrants exercise price | $ / shares | $ 28.38 | ||||||
Warrant term | 5 years | ||||||
Maximum borrowing capacity | $ 725,000 | $ 573,000 | |||||
Warrant Shares | PSP agreement | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Warrants to purchase shares | shares | 370,720 | ||||||
Warrants exercise price | $ / shares | $ 28.38 | ||||||
Warrant term | 5 years |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Segment Reporting | |||||||||||
Number of operating segments | segment | 3 | ||||||||||
Number of reporting segments | segment | 2 | ||||||||||
Operating revenues | $ 589,638 | $ 457,493 | $ 350,039 | $ 729,936 | $ 743,591 | $ 760,295 | $ 744,383 | $ 723,694 | $ 2,127,106 | $ 2,971,963 | $ 3,221,679 |
Operating expense | 2,018,304 | 2,459,705 | 2,747,399 | ||||||||
Depreciation and amortization expense | 474,959 | 368,098 | 334,589 | ||||||||
Special items | $ 21,900 | 21,869 | |||||||||
Interest expense | 123,173 | 127,755 | 120,409 | ||||||||
Segment profit (loss) | (14,371) | 384,503 | 353,871 | ||||||||
Total assets | 6,887,622 | 6,657,129 | 6,887,622 | 6,657,129 | 6,313,212 | ||||||
Capital expenditures (including non-cash) | 460,483 | 846,470 | 1,156,276 | ||||||||
SkyWest Airlines | |||||||||||
Segment Reporting | |||||||||||
Operating revenues | 1,636,762 | 2,478,681 | 2,346,251 | ||||||||
Operating expense | 1,716,808 | 2,214,632 | 2,022,560 | ||||||||
Depreciation and amortization expense | 221,216 | 168,246 | 155,511 | ||||||||
Special items | 18,508 | ||||||||||
Interest expense | 12,381 | 13,525 | 17,021 | ||||||||
Segment profit (loss) | (92,427) | 250,524 | 306,670 | ||||||||
Total assets | 2,804,259 | 2,728,964 | 2,804,259 | 2,728,964 | 2,531,707 | ||||||
Capital expenditures (including non-cash) | 124,825 | 270,191 | 149,731 | ||||||||
ExpressJet Airlines Inc | |||||||||||
Segment Reporting | |||||||||||
Operating revenues | 24,050 | 564,202 | |||||||||
Operating expense | 28,690 | 577,608 | |||||||||
Depreciation and amortization expense | 971 | 37,290 | |||||||||
Special items | 3,361 | ||||||||||
Interest expense | 2,340 | ||||||||||
Segment profit (loss) | (4,640) | (15,746) | |||||||||
Total assets | 279,303 | ||||||||||
Capital expenditures (including non-cash) | 10,137 | ||||||||||
SkyWest Leasing | |||||||||||
Segment Reporting | |||||||||||
Operating revenues | 490,344 | 469,232 | 311,226 | ||||||||
Operating expense | 301,496 | 216,383 | 147,231 | ||||||||
Depreciation and amortization expense | 253,743 | 198,881 | 141,788 | ||||||||
Interest expense | 110,792 | 114,230 | 101,048 | ||||||||
Segment profit (loss) | 78,056 | 138,619 | 62,947 | ||||||||
Total assets | $ 4,083,363 | $ 3,928,165 | 4,083,363 | 3,928,165 | 3,502,202 | ||||||
Capital expenditures (including non-cash) | $ 335,658 | $ 576,279 | $ 996,408 |
Long-term Debt (Details)
Long-term Debt (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)aircraft$ / sharesshares | Oct. 28, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 3,236,002 | $ 3,017,523 | ||
Current portion of long-term debt | (406,005) | (367,954) | ||
Less long-term portion of unamortized debt issue cost, net | (28,459) | (20,580) | ||
Long-term debt, net of current maturities and debt issue costs | 2,801,538 | 2,628,989 | ||
Current portion of long-term debt | 406,005 | 367,954 | ||
Less current portion of unamortized debt issue cost, net | (3,847) | (3,828) | ||
Current portion of long-term debt, net of debt issue costs | $ 402,158 | $ 364,126 | ||
Effective interest rate (as a percent) | 4.00% | 4.20% | ||
Aggregate amounts of principal maturities of long-term debt | ||||
2021 | $ 406,005 | |||
2022 | 407,554 | |||
2023 | 418,048 | |||
2024 | 372,322 | |||
2025 | 447,251 | |||
Thereafter | 1,184,822 | |||
Repayment of debt in cash | 30,100 | |||
Total repayment of debt | 30,100 | |||
Letters of credit | 35,500 | $ 8,800 | ||
Current borrowing capacity | 39,500 | 66,200 | ||
Letters of credit and surety bonds outstanding with various banks and surety institutions | $ 61,100 | 61,700 | ||
E175 | ||||
Debt Instrument [Line Items] | ||||
Number of aircraft delivered | aircraft | 6 | |||
Purchase of aircraft financed through long-term debt | $ 107,700 | |||
Debt instrument, term | 12 years | |||
CRJ 700 | ||||
Debt Instrument [Line Items] | ||||
Number of aircraft delivered | aircraft | 21 | |||
Purchase of aircraft financed through long-term debt | $ 133,500 | |||
CRJ 700 | Quarterly Installments | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 3.50% | |||
Number of aircraft delivered | aircraft | 10 | |||
Debt instrument, term | 7 years 6 months | |||
CRJ 700 | Monthly Installments | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 4.00% | |||
Number of aircraft delivered | aircraft | 11 | |||
Debt instrument, term | 5 years | |||
Minimum | E175 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 2.30% | |||
Maximum | E175 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 3.45% | |||
Promissory note | ||||
Debt Instrument [Line Items] | ||||
Common stock value issued | $ 5,000 | |||
Warrants to purchase shares | shares | 370,720 | |||
Warrants exercise price | $ / shares | $ 28.38 | |||
Warrant term | 5 years | |||
Long-term debt | $ 105,200 | |||
Principal amount | 105,200 | |||
Secured loan | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 60,000 | |||
Common stock value issued | $ 3,200 | |||
Number of subsequent borrowings | aircraft | 2 | |||
Warrants to purchase shares | shares | 211,416 | |||
Warrants exercise price | $ / shares | $ 28.38 | |||
Warrant term | 5 years | |||
Aggregate amounts of principal maturities of long-term debt | ||||
Maximum borrowing capacity | $ 725,000 | $ 573,000 | ||
Notes payable to a financing company, due in semi-annual installments, with a fixed interest rate of 3.25% through 2021, secured by aircraft | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 3.25% | |||
Total long-term debt | $ 6,205 | 18,412 | ||
Notes payable to banks, due in semi-annual installments plus interest at 6.24% to 6.51% through 2021, secured by aircraft | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 7,608 | 22,557 | ||
Notes payable to banks, due in semi-annual installments plus interest at 6.24% to 6.51% through 2021, secured by aircraft | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 6.24% | |||
Notes payable to banks, due in semi-annual installments plus interest at 6.24% to 6.51% through 2021, secured by aircraft | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 6.51% | |||
Notes payable to banks, due in monthly or semi-annual installments, plus interest at 2.68% to 6.86% through 2029, secured by aircraft | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 424,407 | 438,878 | ||
Notes payable to banks, due in monthly or semi-annual installments, plus interest at 2.68% to 6.86% through 2029, secured by aircraft | 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 2.68% to 6.86% through 2029, secured by aircraft | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 6.86% | |||
Notes payable to banks, due in quarterly installments, plus interest at 2.33% to 5.08% through 2032, secured by aircraft | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 2,618,777 | 2,537,676 | ||
Notes payable to banks, due in quarterly installments, plus interest at 2.33% to 5.08% through 2032, 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 5.08% through 2032, secured by aircraft | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 5.08% | |||
Notes payable to bank, due in monthly installments interest based on LIBOR plus interest spread at 2.65% through 2021 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 13,795 | |||
Notes payable to US Government, interest due quarterly based on LIBOR plus interest spread currently at 3.22% through 2025, secured by parts and engines | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 60,000 | |||
Basis spread on variable rate | 3.22% | |||
Notes payable to US Government, interest due quarterly at 1.00% through 2025 and based on SOFR plus spread from 2025 through 2030, unsecured | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 105,210 | |||
Primarily related to acquisition of aircraft and certain spare engines | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 3,070,000 | 3,020,000 | ||
Line of credit | ||||
Aggregate amounts of principal maturities of long-term debt | ||||
Maximum borrowing capacity | 75,000 | 75,000 | ||
Amount outstanding | $ 0 | $ 0 | ||
LIBOR | Notes payable to bank, due in monthly installments interest based on LIBOR plus interest spread at 2.65% through 2021 | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.65% | |||
LIBOR | Notes payable to US Government, interest due quarterly at 1.00% through 2025 and based on SOFR plus spread from 2025 through 2030, unsecured | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
LIBOR | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.50% |
Income Taxes - Provision (Detai
Income Taxes - Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax provision (benefit): | |||
Federal | $ (4,397) | $ (4,395) | $ (21,598) |
State | (875) | 891 | 1,465 |
Foreign | 1,575 | ||
Total current tax provision (benefit) | (5,272) | (3,504) | (18,558) |
Deferred tax provision (benefit): | |||
Federal | 6,659 | 95,655 | 92,250 |
State | (199) | 14,055 | 12,250 |
Total deferred tax provision (benefit) | 6,460 | 109,710 | 104,500 |
Provision for income taxes | $ 1,188 | $ 106,206 | $ 85,942 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Reconciliation | |||
Computed provision for income taxes at the statutory rate | $ (1,539) | $ 93,724 | $ 76,926 |
State income tax provision, net of federal income tax benefit | 173 | 15,645 | 12,711 |
Non-deductible expenses | 2,539 | 3,934 | 1,956 |
Valuation allowance changes affecting the provision for income taxes | (892) | (517) | (1,187) |
Foreign income taxes, net of federal & state benefit | 1,192 | ||
Excess tax benefits from share based compensation | (1,434) | (3,525) | (4,548) |
Other, net | 2,341 | (3,055) | (1,108) |
Provision for income taxes | 1,188 | 106,206 | 85,942 |
Deferred tax assets: | |||
Accrued benefits | 19,668 | 20,848 | |
Net operating loss carryforward | 229,815 | 358,685 | |
AMT credit carryforward | 4,397 | ||
Aircraft credits | 12,765 | 9,114 | |
Deferred revenue | 27,076 | ||
Accrued reserves and other | 34,816 | 17,225 | |
Total deferred tax assets | 324,140 | 410,269 | |
Valuation allowance | (892) | ||
Deferred tax liabilities: | |||
Accelerated depreciation | (950,071) | (1,032,957) | |
Total deferred tax liabilities | (950,071) | (1,032,957) | |
Net deferred tax liability | (625,931) | (623,580) | |
Accounting Standards Update 2016-09 | |||
Reconciliation | |||
Benefit from share-based compensation | 1,400 | 3,500 | 4,500 |
ExpressJet | State | |||
Reconciliation | |||
Valuation allowance | $ 900 | $ 500 | $ 1,200 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Losses and Tax Rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net operating losses | |||
Statutory Federal income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Alternative minimum tax credit which does not expire | $ 4.4 | ||
Federal | |||
Net operating losses | |||
Operating loss carryforward | $ 987 | 1,581.1 | |
Estimated effective tax rate on net operating losses | 21.00% | ||
State | |||
Net operating losses | |||
Operating loss carryforward | $ 653.1 | $ 766.4 | |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes | |||
Unrecognized tax benefits at the beginning of year | $ 14,620,000 | $ 14,553,000 | $ 2,223,000 |
Gross increases - current year tax positions | 13,899,000 | ||
Gross increases - prior year tax positions | 360,000 | 67,000 | |
Gross decreases - prior year tax positions | (1,569,000) | ||
Unrecognized tax benefits at end of year | 14,980,000 | 14,620,000 | $ 14,553,000 |
Interest and penalties in year-end balance | 427,000 | 67,000 | |
Interest expense related to uncertain tax positions | $ 360,000 | $ 67,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021aircraft | Dec. 31, 2020USD ($)employeeaircraft | Dec. 31, 2019USD ($) | Dec. 31, 2018 | |
Concentration Risk and Significant Customers | ||||
Accrued workers' compensation liability | $ | $ 20.7 | $ 23.9 | ||
E175 | ||||
Concentration Risk and Significant Customers | ||||
Commitment to purchase number of aircraft | aircraft | 20 | |||
CRJ 700 | Subsequent event | ||||
Concentration Risk and Significant Customers | ||||
Commitment to purchase number of aircraft | aircraft | 12 | |||
Revenue from rights, concentration risk | Customer concentration risk | Delta, United, and Continental Combined | ||||
Concentration Risk and Significant Customers | ||||
Concentration risk (as a percent) | 76.40% | 77.60% | 81.40% | |
Full-time equivalent number of employees | Labor force concentration risk | ||||
Concentration Risk and Significant Customers | ||||
Number of employees | employee | 12,502 | |||
SkyWest Airlines | Full-time equivalent number of employees | Unionized employees | ||||
Concentration Risk and Significant Customers | ||||
Approximate number of active employees | employee | 0 |
Leases (Details)
Leases (Details) $ in Thousands | Jan. 01, 2019USD ($) | Dec. 31, 2020USD ($)aircraft | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |||
Retained earnings | $ 2,052,006 | $ 2,079,179 | |
Operating lease right-of-use assets | 282,362 | 336,009 | |
Current maturities of lease liabilities | 82,641 | 94,806 | |
Noncurrent operating leases | 205,845 | 259,237 | |
Operating leases | $ 90,300 | ||
Weighted-average remaining lease term for operating leases | 6 years 6 months | ||
Weighted-average discount rate for operating leases | 6.10% | ||
Lease costs | |||
Operating lease cost | $ 94,915 | 104,011 | |
Variable and short-term lease cost | 4,619 | 5,232 | |
Sublease income | (6,304) | (1,436) | |
Total lease cost | $ 93,230 | $ 107,807 | |
Aircraft | |||
Lessee, Lease, Description [Line Items] | |||
Number of aircraft acquired | aircraft | 41 | ||
Impairment charges | $ 13,100 | ||
Aircraft | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Aircraft | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 10 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 | 36 years |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Future minimum rental payments required under operating leases | |||
2021 | $ 85,869 | ||
2022 | 77,780 | ||
2023 | 69,530 | ||
2024 | 28,091 | ||
Thereafter | 15,751 | ||
Thereafter | 82,719 | ||
Total | 359,740 | ||
Total rental expense for non-cancelable aircraft operating leases | $ 154,900 | ||
Total rental expense for non-cancelable aircraft operating leases | 65,300 | $ 72,000 | |
Minimum rental expense for airport station rents | $ 19,600 | ||
Minimum rental expense for airport station rents | $ 20,100 | $ 23,100 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Measurements | ||
Marketable securities | $ 610,185 | $ 432,966 |
Total assets measured at fair value | 825,908 | 520,172 |
Fair Value of Financial Instruments | ||
Fair value of long-term debt | 3,244,000 | 3,049,100 |
Recurring | Fair value | ||
Fair Value Measurements | ||
Marketable securities | 610,185 | 432,966 |
Cash, Cash Equivalents and Restricted Cash | 215,723 | 87,206 |
Total assets measured at fair value | 825,908 | 520,172 |
Recurring | Fair value | Bonds and bond funds | ||
Fair Value Measurements | ||
Marketable securities | 117,928 | 267,243 |
Recurring | Fair value | Commercial paper | ||
Fair Value Measurements | ||
Marketable securities | 492,257 | 165,723 |
Recurring | Level 1 | ||
Fair Value Measurements | ||
Cash, Cash Equivalents and Restricted Cash | 215,723 | 87,206 |
Total assets measured at fair value | 215,723 | 87,206 |
Recurring | Level 2 | ||
Fair Value Measurements | ||
Marketable securities | 610,185 | 432,966 |
Total assets measured at fair value | 610,185 | 432,966 |
Recurring | Level 2 | Bonds and bond funds | ||
Fair Value Measurements | ||
Marketable securities | 117,928 | 267,243 |
Recurring | Level 2 | Commercial paper | ||
Fair Value Measurements | ||
Marketable securities | $ 492,257 | $ 165,723 |
Special Items (Details)
Special Items (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2019 | |
Special Items | ||
Parts credit | $ 18,508 | |
Employee severance | 3,361 | |
Total Special items | $ 21,900 | $ 21,869 |
Capital Transactions - Preferre
Capital Transactions - Preferred Stock (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
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) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | May 04, 2010 | |
Share-Based Compensation | ||||||
Performance period | 90 days | |||||
Compensation expenses | ||||||
Stock based compensation expense | $ 6,802,000 | $ 10,274,000 | $ 13,105,000 | |||
Employee severance related costs | 7,900,000 | |||||
Forfeiture credit partially offset | $ 4,500,000 | |||||
Director | ||||||
Share-Based Compensation | ||||||
Granted (in shares) | 14,643 | 18,576 | ||||
Granted (in dollars per share) | $ 61.45 | $ 48.45 | $ 53.40 | |||
Number of shares | ||||||
Granted (in shares) | 14,643 | 18,576 | ||||
Weighted Average Grant-Date Fair Value | ||||||
Granted (in dollars per share) | $ 61.45 | $ 48.45 | $ 53.40 | |||
Number of Options | ||||||
Granted (in shares) | 15,165 | |||||
Non-vested stock options | ||||||
Granted (in shares) | 15,165 | |||||
Restricted stock grants and performance stock units | ||||||
Compensation expenses | ||||||
Total unrecognized compensation cost | $ 9,200,000 | |||||
Unrecognized compensation cost recognized over a weighted average period (in years) | 1 month 21 days | |||||
Employee stock options | ||||||
Share-Based Compensation | ||||||
Options outstanding (in shares) | 57,653 | 300,580 | 458,103 | 57,653 | 60,231 | |
Compensation expenses | ||||||
Period from grant date after which stock options become exercisable, minimum (in months) | 6 months | |||||
Period from grant date within which incentive stock options are exercisable, maximum (in years) | 7 years | |||||
Number of Options | ||||||
Outstanding at the beginning of the period (in shares) | 60,231 | 300,580 | 458,103 | |||
Exercised (in shares) | (2,578) | (232,514) | (157,523) | |||
Cancelled (in shares) | (7,835) | |||||
Outstanding at the end of the period (in shares) | 57,653 | 60,231 | 300,580 | |||
Exercisable (in shares) | 57,653 | 60,231 | ||||
Weighted Average Exercise Price | ||||||
Outstanding at the beginning of the period (in dollars per share) | $ 14.74 | $ 13.70 | $ 13.73 | |||
Exercised (in dollars per share) | 14.78 | 13.36 | 13.80 | |||
Cancelled (in dollars per share) | 15.86 | |||||
Outstanding at the end of the period (in dollars per share) | $ 14.74 | $ 14.74 | $ 13.70 | |||
Exercisable (in dollars per share) | $ 14.74 | $ 14.74 | ||||
Weighted Average Remaining Contractual Term | ||||||
Outstanding, Weighted Average Remaining Contractual Term (in years) | 2 years 1 month 6 days | 3 years 1 month 6 days | ||||
Exercisable, Weighted Average Remaining Contractual Term (in years) | 2 years 1 month 6 days | 3 years 1 month 6 days | ||||
Aggregate Intrinsic Value | ||||||
Average intrinsic value of shares outstanding | $ 1,474,500 | $ 3,005,100 | ||||
Average intrinsic value of shares exercisable | $ 1,474,500 | $ 3,005,100 | ||||
Total intrinsic value of options exercised | $ 100,000 | $ 10,500,000 | $ 7,100,000 | |||
Performance stock units | ||||||
Share-Based Compensation | ||||||
Granted (in shares) | 69,132 | 87,864 | 90,264 | |||
Granted (in dollars per share) | $ 61.45 | $ 48.81 | $ 53.41 | |||
Performance period | 3 years | |||||
Number of shares | ||||||
Nonvested sharess at the beginning of the period (in shares) | 233,571 | 370,917 | 468,576 | |||
Granted (in shares) | 69,132 | 87,864 | 90,264 | |||
Additional shares awarded from the 2015 grant | 83,042 | 67,853 | 92,335 | |||
Vested (in shares) | (166,084) | (203,582) | (277,029) | |||
Cancelled (in shares) | (23,052) | (89,481) | (3,229) | |||
Nonvested shares at the end of the period (in shares) | 196,609 | 233,571 | 370,917 | |||
Weighted Average Grant-Date Fair Value | ||||||
Nonvested shares at the beginning of the period (in dollars per share) | $ 45.44 | $ 30.84 | $ 19.70 | |||
Granted (in dollars per share) | 61.45 | 48.81 | 53.41 | |||
Additional shares awarded from the 2015 grant (in dollars per share) | 35.81 | 14.80 | 13.62 | |||
Vested (in dollars per share) | 35.81 | 14.80 | 13.62 | |||
Cancelled (in dollars per share) | 53.66 | 34.70 | 30.09 | |||
Nonvested shares at the end of the period (in dollars per share) | $ 54.17 | $ 45.44 | $ 30.84 | |||
Performance stock units | Maximum | ||||||
Share-Based Compensation | ||||||
Award percentage | 200.00% | 200.00% | 200.00% | |||
Performance stock units | Minimum | ||||||
Share-Based Compensation | ||||||
Award percentage | 0.00% | 0.00% | 0.00% | |||
Restricted stock units | ||||||
Share-Based Compensation | ||||||
Granted (in shares) | 82,505 | 104,120 | 115,044 | |||
Granted (in dollars per share) | $ 61.45 | $ 48.65 | $ 53.40 | |||
Number of shares | ||||||
Nonvested sharess at the beginning of the period (in shares) | 284,686 | 575,781 | 815,590 | |||
Granted (in shares) | 82,505 | 104,120 | 115,044 | |||
Vested (in shares) | (103,231) | (251,853) | (330,580) | |||
Cancelled (in shares) | (25,983) | (143,362) | (24,273) | |||
Nonvested shares at the end of the period (in shares) | 237,977 | 284,686 | 575,781 | |||
Weighted Average Grant-Date Fair Value | ||||||
Nonvested shares at the beginning of the period (in dollars per share) | $ 45.21 | $ 27.71 | $ 18.35 | |||
Granted (in dollars per share) | 61.45 | 48.65 | 53.40 | |||
Vested (in dollars per share) | 35.81 | 14.79 | 13.57 | |||
Cancelled (in dollars per share) | 52.31 | 30.85 | 27.77 | |||
Nonvested shares at the end of the period (in dollars per share) | $ 54.15 | $ 45.21 | $ 27.71 | |||
Long Term Incentive Plan 2010 | ||||||
Share-Based Compensation | ||||||
Number of shares authorized | 4,500,000 | |||||
Shares remaining available for future issuance | 4,100,000 | |||||
Long Term Incentive Plan 2010 | Restricted stock units | ||||||
Share-Based Compensation | ||||||
Vesting period | 3 years | |||||
Granted (in dollars per share) | $ 61.45 | |||||
Weighted Average Grant-Date Fair Value | ||||||
Granted (in dollars per share) | $ 61.45 | |||||
Long Term Incentive Plan 2010 | Restricted stock units | Director | ||||||
Share-Based Compensation | ||||||
Granted (in shares) | 82,505 | |||||
Number of shares | ||||||
Granted (in shares) | 82,505 |
Capital Transactions - Informat
Capital Transactions - Information About Stock Options Outstanding (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Options Exercisable | ||
Borrowed amount | $ 3,236,002,000 | $ 3,017,523,000 |
Employee stock options | $13.00 to $13.99 | ||
Stock options, exercise price | ||
Exercise price range, low end of range (in dollars per share) | $ 13 | |
Exercise price range, high end of range (in dollars per share) | $ 13.99 | |
Options Outstanding | ||
Number of options outstanding (in shares) | 2,034 | |
Options outstanding, Weighted Average Remaining Contractual Life | 1 month 6 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 13.51 | |
Options Exercisable | ||
Number of options Exercisable (in shares) | 2,034 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 13.51 | |
Employee stock options | $14.00 to $15.00 | ||
Stock options, exercise price | ||
Exercise price range, low end of range (in dollars per share) | 14 | |
Exercise price range, high end of range (in dollars per share) | $ 15 | |
Options Outstanding | ||
Number of options outstanding (in shares) | 55,619 | |
Options outstanding, Weighted Average Remaining Contractual Life | 1 year 1 month 6 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 14.78 | |
Options Exercisable | ||
Number of options Exercisable (in shares) | 55,619 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 14.78 | |
Employee stock options | $13.00 to $15.00 | ||
Stock options, exercise price | ||
Exercise price range, low end of range (in dollars per share) | 13 | |
Exercise price range, high end of range (in dollars per share) | $ 15 | |
Options Outstanding | ||
Number of options outstanding (in shares) | 57,653 | |
Options outstanding, Weighted Average Remaining Contractual Life | 1 year 1 month 6 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 14.74 | |
Options Exercisable | ||
Number of options Exercisable (in shares) | 57,653 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 14.74 | |
PSP agreement | Warrant Shares | ||
Options Exercisable | ||
Warrants to purchase shares | 370,720 | |
Warrants exercise price | $ 28.38 | |
Warrant term | 5 years | |
Weighted average fair value of the warrants | $ 13.57 | |
Secured loan | ||
Options Exercisable | ||
Warrants to purchase shares | 211,416 | |
Warrants exercise price | $ 28.38 | |
Warrant term | 5 years | |
Weighted average fair value of the warrants | $ 15.22 | |
Borrowed amount | $ 60,000,000 |
Retirement Plans and Employee_3
Retirement Plans and Employee Stock Purchase Plans - Retirement Plans (Details) - SkyWest Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Plans | |||
Required age for an employee to be eligible to participate in plan | 18 years | ||
Percentage of employer matching contribution based on length of service | 100.00% | ||
Minimum benefit plan percentage of participants compensation eligible for employer matching contribution based on position and years of service | 2.00% | ||
Maximum benefit plan percentage of participants compensation eligible for employer matching contribution based on position and years of service | 12.00% | ||
Company's combined contributions | $ 31.9 | $ 40.7 | $ 35.6 |
Retirement Plans and Employee_4
Retirement Plans and Employee Stock Purchase Plans - Employee Stock Purchase Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Stock Purchase Plans | |||
Service period required to be completed for an employee to be eligible to participate in plan, minimum | 90 days | ||
Ownership interest in Company common stock to disqualify employee from participation in plan, maximum (as a percent) | 5.00% | ||
Maximum percentage of base salary which can be contributed by the employees | 15.00% | ||
Maximum amount of base salary which can be contributed annually by the employees | $ 25,000 | ||
Discount rate at which common stock can be purchased by the plan participant (as a percent) | 5.00% | ||
Summary of purchases made under the 2010 and 1995 Employee Stock Purchase Plans | |||
Number of shares purchased | 65,512 | 65,148 | 60,950 |
Average price of shares purchased (in dollars per share) | $ 42.45 | $ 48.58 | $ 49.85 |
2009 Stock Purchase Plan | |||
Summary of purchases made under the 2010 and 1995 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Repurchase | |||
Common stock authorized for repurchase, maximum (in shares) | 250 | ||
Common stock remaining number of shares authorized to repurchase | 139.6 | ||
Common stock repurchased (in shares) | 0.4 | 1.7 | 1 |
Common stock repurchased, value | $ 20 | $ 94.6 | $ 54.4 |
Weighted average price per share of common stock (in dollars per share) | $ 51.87 | $ 56.86 | $ 56.25 |
Payment of income tax obligation on employee equity awards | $ 6.2 | $ 9.3 | $ 13.6 |
Related-Party Transactions (Det
Related-Party Transactions (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Affiliated entity | |
Related Party Transactions | |
Purchase from related party | $ 223,050 |
Gain on Sale of ExpressJet (Det
Gain on Sale of ExpressJet (Details) - USD ($) $ in Thousands | Jan. 22, 2019 | Jan. 11, 2019 | Mar. 31, 2019 | Dec. 31, 2019 |
Gain on sale | $ 46,500 | $ 46,500 | $ 46,525 | |
Interest rate (as a percent) | 6.85% | |||
Asset Purchase Agreement | ExpressJet | ||||
Proceeds from sale of equipment | $ 60,800 | |||
Stock Purchase Agreement | ExpressJet | ||||
Cash received from stock sale | $ 18,800 | |||
Amount loaned to Kair Enterprises, Inc | $ 26,000 |
Investment in Other Companies (
Investment in Other Companies (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)engine | |
Number of spare engines sold to Aero Engines | engine | 15 |
Aero Engines, LLC. | |
Payments to acquire interest in joint venture | $ 22,300 |
Investment ownership (as a percent) | 75.00% |
Number of spare engines purchased | engine | 15 |
Long-term debt | $ 0 |
Investment balance in Aero Engines | 25,500 |
Additional interest in Joint venture | 1,000 |
Company's portion of income generated by Aero Engines | $ 1,600 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 15, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0 | $ 0 | |
Subsequent event | Promissory Note | Until Fifth Anniversary of Closing Date | |||
Subsequent Event [Line Items] | |||
Interest rate (as a percent) | 1.00% | ||
Subsequent event | Promissory Note | Thereafter until the tenth anniversary of the Closing Date | |||
Subsequent Event [Line Items] | |||
Interest rate (as a percent) | 2.00% | ||
Subsequent event | Payroll Support Program Extension Agreement | |||
Subsequent Event [Line Items] | |||
Amount borrowed | $ 233.1 | ||
Subsequent event | Warrant Agreement | |||
Subsequent Event [Line Items] | |||
Warrants exercise price | $ 40.41 | ||
Minimum | Subsequent event | Promissory Note | |||
Subsequent Event [Line Items] | |||
Interest rate (as a percent) | 0.00% | ||
Maximum | Subsequent event | Promissory Note | |||
Subsequent Event [Line Items] | |||
Amount borrowed | $ 39.9 | ||
Maximum | Subsequent event | Warrant Agreement | |||
Subsequent Event [Line Items] | |||
Warrants to purchase shares | 98,815 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 22, 2019 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Quarterly Financial Data (Unaudited) | ||||||||||||
Operating revenues | $ 589,638 | $ 457,493 | $ 350,039 | $ 729,936 | $ 743,591 | $ 760,295 | $ 744,383 | $ 723,694 | $ 2,127,106 | $ 2,971,963 | $ 3,221,679 | |
Operating income | (27,669) | 74,553 | (4,403) | 66,321 | 125,305 | 146,441 | 144,093 | 96,419 | 108,802 | 512,258 | 474,280 | |
Net income | $ (46,450) | $ 33,662 | $ (25,715) | $ 29,988 | $ 72,527 | $ 91,339 | $ 88,052 | $ 88,181 | $ (8,515) | $ 340,099 | $ 280,372 | |
Net income per common share: | ||||||||||||
Basic (in dollars per share) | $ (0.93) | $ 0.67 | $ (0.51) | $ 0.60 | $ 1.44 | $ 1.80 | $ 1.72 | $ 1.71 | $ (0.17) | $ 6.68 | $ 5.40 | |
Diluted (in dollars per share) | $ (0.93) | $ 0.66 | $ (0.51) | $ 0.59 | $ 1.43 | $ 1.79 | $ 1.71 | $ 1.69 | $ (0.17) | $ 6.62 | $ 5.30 | |
Weighted average common shares: | ||||||||||||
Basic (in shares) | 50,181,000 | 50,181,000 | 50,140,000 | 50,277,000 | 50,395,000 | 50,746,000 | 51,145,000 | 51,440,000 | 50,195,000 | 50,932,000 | 51,914,000 | |
Diluted (in shares) | 50,181,000 | 50,622,000 | 50,140,000 | 50,559,000 | 50,796,000 | 51,129,000 | 51,477,000 | 52,098,000 | 50,195,000 | 51,375,000 | 52,871,000 | |
Gain on sale of subsidiary | $ 46,500 | $ 46,500 | $ 46,525 | |||||||||
Special items | $ 21,900 | $ 21,869 |
SCHEDULE II -VALUATION AND QUAL
SCHEDULE II -VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | $ 15,908 | $ 22,299 | $ 17,255 |
Additions Charged to Costs and Expenses | 5,044 | ||
Deductions | (6,391) | ||
Balance at End of Year | 15,908 | 22,299 | |
Accounting Standards Update 2016-13 | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | 31,296 | ||
Additions Charged to Costs and Expenses | 34,623 | ||
Deductions | (18) | ||
Balance at End of Year | 65,901 | 31,296 | |
Allowance for inventory obsolescence | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | 15,890 | 22,141 | 17,098 |
Additions Charged to Costs and Expenses | 3,786 | 5,043 | |
Deductions | (6,251) | ||
Balance at End of Year | 19,676 | 15,890 | 22,141 |
Allowance for doubtful accounts receivable | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | 18 | 158 | 157 |
Additions Charged to Costs and Expenses | 1 | ||
Deductions | (18) | (140) | |
Balance at End of Year | 18 | $ 158 | |
Allowance for doubtful accounts receivable | Accounting Standards Update 2016-13 | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | 15,388 | ||
Additions Charged to Costs and Expenses | 30,837 | ||
Balance at End of Year | $ 46,225 | $ 15,388 |