Segment Reporting

3 Months Ended

Mar. 31, 2017

Segment Reporting

Segment Reporting

Note 5 - Segment Reporting

The Company’s three reporting segments consist of the operations of SkyWest Airlines, ExpressJet and SkyWest Leasing activities. Corporate overhead expenses incurred by the Company are allocated to the operating expenses of SkyWest Airlines and ExpressJet.

The Company’s chief operating decision maker analyzes the profitability of operating the E175 aircraft (including operating costs and associated revenue) separately from the profitability of the Company’s ownership, financing costs and associated revenue of the Company’s E175 aircraft (including depreciation expense, interest expense and associated revenue). The SkyWest Leasing segment includes revenue attributed to the Company’s E175 aircraft ownership cost earned under the applicable fixed-fee contracts and the depreciation and interest expense of the Company’s E175 aircraft. The SkyWest Leasing segment’s total assets and capital expenditures include the acquired E175 aircraft. The SkyWest Leasing segment additionally includes the activity of four CRJ200 aircraft leased to a third party.

The following represents the Company’s segment data for the three-month periods ended March 31, 2017 and 2016 (in thousands).

	Three months ended  March 31, 2017
	SkyWest				SkyWest
	Airlines		ExpressJet		Leasing		Consolidated
Operating revenues	$	482,954	$	228,658	$	53,803	$	765,415
Operating expense		435,368		229,493		24,259		689,120
Depreciation and amortization expense		31,817		14,525		23,772		70,114
Interest expense		5,799		1,114		17,636		24,549
Segment profit (loss) (1)		41,787		(1,949)		11,908		51,746
Identifiable intangible assets, other than goodwill		—		7,686		—		7,686
Total assets		2,224,407		565,839		2,338,110		5,128,356
Capital expenditures (including non-cash)		33,431		5,654		184,014		223,099

	Three months ended  March 31, 2016
	SkyWest				SkyWest
	Airlines		ExpressJet		Leasing		Consolidated
Operating revenues	$	466,296	$	267,807	$	27,972	$	762,075
Operating expense		414,084		273,619		12,563		700,266
Depreciation and amortization expense		34,331		21,267		12,203		67,801
Interest expense		6,659		2,123		8,943		17,725
Segment profit (loss) (1)		45,553		(7,935)		6,466		44,084
Identifiable intangible assets, other than goodwill		—		9,936		—		9,936
Total assets		2,213,958		1,277,361		1,218,935		4,710,254
Capital expenditures (including non-cash)		13,073		5,048		80,280		98,401

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