Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting

Segment Reporting

Note E — Segment Reporting

Generally accepted accounting principles require disclosures related to components of a company for which separate financial information is available to and regularly evaluated by the company’s chief operating decision maker (“CODM”) when deciding how to allocate resources and in assessing performance.

The Company’s two operating segments consist of the operations of its two operating subsidiaries, SkyWest Airlines and ExpressJet. On December 31, 2011, ExpressJet Delaware and Atlantic Southeast merged through the ExpressJet Combination. In conjunction with the ExpressJet Combination, ExpressJet became a reportable segment. Prior year amounts have been revised to conform to the current year segment presentation. Corporate overhead expense incurred by the Company is allocated to the operating expenses of its two operating subsidiaries. The following represents the Company’s segment data for the three months ended June 30, 2012 and 2011 (in thousands).

	Three months ended June 30,2012
	SkyWest Airlines	ExpressJet		Other	Consolidated
Operating revenues	509,135	425,445		2,634	937,214
Operating expense	467,497	421,640		1,271	890,408
Depreciation and amortization expense	38,646	25,536		—	64,182
Interest expense	12,353	5,959		1,075	19,387
Segment profit (loss)(1)	29,285	(2,154	)	288	27,419
Identifiable intangible assets, other than goodwill	—	18,373		—	18,373
Total assets	2,604,012	1,634,798		—	4,238,810
Capital expenditures (including non-cash)	6,700	4,579		—	11,279

	Three months ended June 30, 2011
	SkyWest Airlines	ExpressJet		Other	Consolidated
Operating revenues	513,326	417,497		2,874	933,697
Operating expense	479,905	433,371		1,381	914,657
Depreciation and amortization expense	36,825	26,872		—	63,697
Interest expense	12,621	6,332		1,099	20,052
Segment profit (loss) (1)	20,800	(22,206	)	394	(1,012	)
Identifiable intangible assets, other than goodwill	—	20,622		—	20,622
Total assets	2,545,336	1,794,405		—	4,339,741
Capital expenditures (including non-cash)	11,318	7,729		—	19,047

(1)Segment profit is operating income less interest expense

The following represents the Company’s segment data for the six-months periods ended June 30, 2012 and 2011 (in thousands).

	Six months ended June 30, 2012
	SkyWest Airlines	ExpressJet		Other	Consolidated
Operating revenues	1,004,046	849,074		5,268	1,858,388
Operating expense	940,403	848,192		2,530	1,791,125
Depreciation and amortization expense	77,429	51,068		—	128,497
Interest expense	24,915	12,005		2,247	39,167
Segment profit (loss)(1)	38,728	(11,123	)	491	28,096
Identifiable intangible assets, other than goodwill	—	18,373		—	18,373
Total assets	2,604,012	1,634,798		—	4,238,810
Capital expenditures (including non-cash)	21,953	8,541		—	30,494

	Six months ended June 30, 2011
	SkyWest Airlines	ExpressJet		Other	Consolidated
Operating revenues	992,944	800,956		5,748	1,799,648
Operating expense	936,720	840,962		2,700	1,780,382
Depreciation and amortization expense	73,280	53,610		—	126,890
Interest expense	25,351	12,711		2,210	40,272
Segment profit (loss) (1)	30,873	(52,717	)	838	(21,006	)
Identifiable intangible assets, other than goodwill	—	20,622		—	20,622
Total assets	2,545,336	1,794,405		—	4,339,741
Capital expenditures (including non-cash)	21,618	15,048		—	36,666

(1)Segment profit is operating income less interest expense