Segment Reporting

6 Months Ended

Jun. 30, 2014

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. The following represents the Company’s segment data for the three months ended June 30, 2014 and 2013 (in thousands).

	Three months ended June 30, 2014
	SkyWest Airlines	ExpressJet		Other		Consolidated
Operating revenues	475,501	340,599		474		816,574
Operating expense	433,551	369,891		(112	)	803,330
Depreciation and amortization expense	41,958	22,294		—		64,252
Interest expense	10,661	4,743		734		16,138
Segment profit (loss)(1)	31,289	(34,035	)	(148	)	(2,894	)
Identifiable intangible assets, other than goodwill(2)	—	13,873		—		13,873
Total assets (2)	2,688,143	1,591,698		—		4,279,841
Capital expenditures (including non-cash)	234,986	7,374		—		242,360

	Three months ended June 30, 2013
	SkyWest Airlines	ExpressJet		Other		Consolidated
Operating revenues	463,068	375,588		474		839,130
Operating expense	411,917	374,431		2,227		788,575
Depreciation and amortization expense	38,839	22,335		—		61,174
Interest expense	11,227	5,362		937		17,526
Segment profit (loss)(1)	39,924	(4,205	)	(2,690	)	33,029
Identifiable intangible assets, other than goodwill(3)	—	16,123		—		16,123
Total assets(3)	2,656,855	1,583,215		—		4,240,070
Capital expenditures (including non-cash)	21,952	11,473		—		33,425

(1) Segment profit (loss) is equal to operating income less interest expense

(2) As of June 30 ,2014

(3) As of June 30, 2013

The following represents the Company’s segment data for the six-month periods ended June 30, 2014 and 2013 (in thousands).

	Six months ended June 30, 2014
	SkyWest Airlines	ExpressJet		Other		Consolidated
Operating revenues	922,543	665,469		948		1,588,960
Operating expense	859,193	744,317		(20	)	1,603,490
Depreciation and amortization expense	81,958	44,609		—		126,567
Interest expense	20,687	9,618		1,509		31,814
Segment profit (loss)(1)	42,663	(88,466	)	(541	)	(46,344	)
Identifiable intangible assets, excluding goodwill(2)	—	13,873		—		13,873
Total assets(2)	2,688,143	1,591,698		—		4,279,841
Capital expenditures (including non-cash)	282,842	14,666		—		297,508

	Six months ended June 30, 2013
	SkyWest Airlines	ExpressJet		Other		Consolidated
Operating revenues	912,413	727,336		2,868		1,642,617
Operating expense	826,683	746,174		3,642		1,576,499
Depreciation and amortization expense	77,464	44,710		—		122,174
Interest expense	22,723	10,825		1,943		35,491
Segment profit (loss)(1)	63,007	(29,663	)	(2,717	)	30,627
Identifiable intangible assets, other than goodwill(3)	—	16,123		—		16,123
Total assets(3)	2,656,855	1,583,215		—		4,240,070
Capital expenditures (including non-cash)	44,362	19,351		—		63,713

(1) Segment profit (loss) is equal to operating income less interest expense

(2) As of June 30, 2014

(3) As of June 30, 2013