Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2012

Parent Company Only Financial Information

Parent Company Only Financial Information

13. Parent Company Only Financial Information

In accordance with Regulation S-X paragraph 210.5-04 (c), the Company is required to provide condensed financial information of Hawaiian Holdings, Inc. as a result of restrictions in Hawaiian's debt agreements. Following is the condensed financial information of Hawaiian Holdings, Inc., presented on a parent company only basis, for the years ended December 31, 2012, 2011 and 2010:

Condensed Statements of Operations
Years ended December 31, 2012, 2011 and 2010

	Year ended December 31,
	2012			2011			2010
	(in thousands)
Operating expenses	$	4,712		$	4,467		$	4,098
Operating loss		(4,712	)		(4,467	)		(4,098	)
Nonoperating income (loss)		(8,216	)		(6,081	)		98
Loss before undistributed earnings of Hawaiian Airlines, Inc.		(12,928	)		(10,548	)		(4,000	)
Undistributed net income of Hawaiian Airlines, Inc. and subsidiaries		66,165			7,899			114,255
Net income (loss)	$	53,237		$	(2,649	)	$	110,255

Condensed Balance Sheets
December 31, 2012 and 2011

	December 31,
	2012		2011
	(in thousands)
ASSETS
Current Assets:
Cash	$	83,626	$	97,219
Other		32		48
Total		83,658		97,267
Investment in Hawaiian Airlines, Inc., and subsidiaries		242,290		149,406
Due from Hawaiian Airlines, Inc		14,936		44,383
Deferred tax assets, net		302		302
Other noncurrent assets		1,695		2,211
Total assets	$	342,881	$	293,569
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	292	$	202
Other		1,310		1,295
Total		1,602		1,497
Long-term debt		72,677		69,196
Shareholders' equity		268,602		222,876
Total liabilities and shareholders' equity	$	342,881	$	293,569

Condensed Statements of Cash Flows
Years ended December 31, 2012, 2011 and 2010

	Year ended December 31,
	2012			2011			2010
	(in thousands)
Operating Activities:
Net income (loss)	$	53,237		$	(2,649	)	$	110,255
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity in undistributed net income of Hawaiian Airlines, Inc. and Subsidiaries		(66,165	)		(7,899	)		(114,255	)
Other operating activities, net		4,102			4,026			(48	)
Net cash used in operating activities		(8,826	)		(6,522	)		(4,048	)
Investing Activities:
Net payments from Hawaiian Airlines		28,745			8,244			4,507
Net cash provided by investing activities		28,745			8,244			4,507
Financing Activities:
Long-term borrowings		—			86,250			—
Debt issuance costs		—			(3,390	)		—
Proceeds from exercise of stock options		1,488			226			1,477
Proceeds from issuance of warrants		—			11,948			—
Treasury stock repurchase		—			—			(9,998	)
Purchase of call options related to convertible debt		—			(19,504	)		—
Investment in Subsidiary		(35,000	)		—			—
Net cash (used in) provided by financing activities		(33,512	)		75,530			(8,521	)
Net (decrease) increase in cash		(13,593	)		77,252			(8,062	)
Cash—Beginning of Period		97,219			19,967			28,029
Cash—End of period	$	83,626		$	97,219		$	19,967

Long-Term Debt

During 2011, the Company issued $86.25 million principal amount of convertible senior notes (the Convertible Notes) due March 15, 2016. In connection with the issuance of the Convertible Notes, the Company entered into separate convertible note hedge transactions (the Convertible Note Hedges) and separate warrant transactions (the Warrants) with certain financial investors to reduce the potential dilution of the Company's common stock and to offset potential payments by the Company to holders of the Convertible Notes in excess of the principal of the Convertible Notes upon conversion. The Convertible Note Hedges and Warrants are separate transactions, entered into by the Company with the financial institutions, and are not part of the Convertible Notes.

For further discussion on the Convertible Notes and Convertible Noted Hedges and Warrants, see Note 6 to the consolidated financial statements.