Related Party Transactions

9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

(8) Related Party Transactions

Relationship with Verde Investments, Inc.

Verde Investments, Inc., or “Verde,” is an Arizona corporation that is wholly-owned by Ernest C. Garcia II, our Chairman and principal shareholder. Verde engages in the acquisition, development, and long-term investment in real estate and other commercial assets. Mr. Garcia is the principal shareholder, president and director of Verde. Another affiliate of Mr. Garcia is the Garcia Family Limited Partnership, LLP, of which Mr. Garcia and his wife own 7.32% and Verde owns 66.18%. The other interests are owned by his son and two related trusts.

During the three and nine months ended September 30, 2013 and 2012, we recorded related party operating expenses as follows:

	Three Months Ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
	(In thousands)
General and Administrative Expenses—Related Party
Property lease expense	$	1,168		$	1,144		$	3,556		$	3,553
Restricted stock compensation expense	310			310			930			1,239
Aircraft operating and lease expense	1,226			1,091			3,318			3,173
Salaries and wages, general & administrative and other expenses	135			107			393			441
Reimbursement of certain general and administrative expenses	(77		)	(71		)	(231		)	(213		)
Total General and Administrative Expenses—Related Party	$	2,762		$	2,581		$	7,966		$	8,193

Senior Secured Notes Payable

In August 2013, Verde sold $4.5 million of the Senior Secured Notes on the open market at a price of 110.00% to par, plus accrued interest. In August 2013, Mr. Fidel also sold $0.5 million of the Senior Secured Notes on the open market at an identical price. As a result, at September 30, 2013 none of the Senior Secured Notes were held by a related party.

Interest Expense

During the three and nine months ended September 30, 2013 and 2012, we recorded related party interest expense as follows:

	Three Months Ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
	(In thousands)
Senior Secured Notes Interest Expense—Related Party
Senior Secured Notes Payable—Verde	$	81	$	95	$	365	$	95
Senior Secured Notes Payable—CEO	9		8		41		8
Total Senior Secured Notes Interest Expense—Related Party	$	90	$	103	$	406	$	103

For a description of the nature of these transactions, see Note 10 - Related Party Transactions to the Consolidated Financial Statements included in our Annual Report on Form 10-K filed on March 28, 2013.