Segment Reporting

3 Months Ended

Mar. 31, 2016

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.

During the fourth quarter of 2015, due to the increase in E175 aircraft acquisitions and the related aircraft debt financing, the Company’s chief operating decision maker started to analyze the flight operations of the Company’s E175 aircraft separately from the acquisition, ownership, financing costs and related revenue of the Company’s E175 aircraft.  Because of this change, the “SkyWest Leasing” segment includes revenue attributed to the Company’s E175 aircraft ownership cost earned under the applicable fixed-fee flying 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 two CRJ200 aircraft leased to a third party. As a result of the change in segmentation, results for prior periods have been recast to conform to the current presentation.

The following represents the Company’s segment data for the three-month periods ended March 31, 2016 and 2015 (in thousands).

	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		2,292,792		1,301,331		1,218,935		4,813,058
Capital expenditures (including non-cash)		13,958		5,048		80,280		99,286

	Three months ended  March 31, 2015
	SkyWest				SkyWest
	Airlines		ExpressJet		Leasing		Consolidated
Operating revenues	$	437,715	$	308,557	$	14,126	$	760,398
Operating expense		399,969		319,251		7,103		726,323
Depreciation and amortization expense		37,688		21,662		6,341		65,691
Interest expense		9,721		4,356		4,388		18,465
Segment profit (loss) (1)		28,025		(15,050)		2,635		15,610
Identifiable intangible assets, other than goodwill		—		12,186		—		12,186
Total assets		2,404,877		1,418,703		767,626		4,591,206
Capital expenditures (including non-cash)		16,092		7,098		245,948		269,138

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