Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Depreciable lives used for the principal depreciable asset classifications

The depreciable lives used for the principal depreciable asset classifications are:




	Estimated Useful Life
Spare rotables and flight assemblies	Lesser of the useful life of equipment or average remaining fleet life
Other equipment and vehicles	5 to 7 years
Internal use software	3 to 10 years

Components of depreciation and amortization expense

The following table illustrates the components of depreciation and amortization expense:



	Year Ended December 31,
	2012		2011		2010
	(in thousands)
Depreciation	$	6,156	$	5,186	$	4,313
Amortization of heavy maintenance	9,100		2,574		1,307
Total depreciation and amortization	$	15,256	$	7,760	$	5,620

Total cash proceeds received from the sale of mileage credit

The following table illustrates total cash proceeds received from the sale of mileage credits and the portion of such proceeds recognized in revenue immediately as marketing component:



	Cash proceeds from sale of miles to non-airline third parties		Portion of proceeds recognized immediately as marketing component
Year Ended	(in thousands)
December 31, 2012	$	24,938	$	20,998
December 31, 2011	20,954		16,580
December 31, 2010	20,748		10,576

Primary components of non-ticket revenue and the revenue recognition method utilized for each service or product

The following table summarizes the primary components of non-ticket revenue and the revenue recognition method utilized for each service or product:



		Year Ended December 31,
Non-ticket revenue	Recognition method	2012		2011		2010
		(in thousands)
Baggage	Time of departure	$	217,536	$	168,290	$	91,393
Passenger usage fee	Time of departure	149,577		71,757		47,367
Advance seat selection	Time of departure	48,956		42,112		32,512
Service charges for changes and cancellations	When itinerary is changed	27,762		25,927		23,120
Other		91,765		73,450		48,904
Non-ticket revenue		$	535,596	$	381,536	$	243,296

Aircraft maintenance expense

The table below summarizes the extent to which the Company’s maintenance costs are rate capped due to flight hour maintenance contracts:



	Year Ended December 31,
	2012		2011		2010
	(in thousands)
Flight hour-based maintenance expense	$	25,748	$	21,974	$	16,683
Non-flight hour-based maintenance expense	23,712		12,043		10,352
Total maintenance expense	$	49,460	$	34,017	$	27,035

- Definition

Tabular disclosure of the useful life and salvage value of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.

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