Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting

Segment Reporting

(2) Segment Reporting

Generally accepted accounting principles require disclosures related to components of a company for which separate financial information is available to, and regularly evaluated by, the Company’s chief operating decision maker when deciding how to allocate resources and in assessing performance.

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 two CRJ200 aircraft leased to a third party.

The following represents the Company’s segment data for the years ended December 31, 2016, 2015 and 2014 (in thousands).

		Year Ended December 31, 2016
		SkyWest
		Airlines		ExpressJet		SkyWest Leasing		Consolidated
Operating revenues	$	1,935,378	$	1,044,828	$	141,000	$	3,121,206
Operating expense		1,886,173		1,339,569		68,148		3,293,890
Depreciation and amortization expense		139,159		83,935		61,875		284,969
Special items		184,295		281,354		—		465,649
Interest expense		26,211		6,773		45,193		78,177
Segment profit (loss) (1)		22,994		(301,514)		27,659		(250,861)
Identifiable intangible assets, other than goodwill		—		8,249		—		8,249
Total assets		2,343,814		618,637		2,174,800		5,137,251
Capital expenditures (including non-cash)		57,761		15,396		1,085,844		1,159,001

		Year Ended December 31, 2015
		SkyWest
		Airlines		ExpressJet		SkyWest Leasing		Consolidated
Operating revenues	$	1,848,363	$	1,169,923	$	77,277	$	3,095,563
Operating expense		1,630,200		1,192,070		38,778		2,861,048
Depreciation and amortization expense		141,189		86,382		36,936		264,507
Interest expense		36,141		12,091		27,618		75,850
Segment profit (loss) (1)		182,022		(34,238)		10,881		158,665
Identifiable intangible assets, other than goodwill		—		10,499		—		10,499
Total assets		2,300,388		1,331,000		1,150,596		4,781,984
Capital expenditures (including non-cash)		30,897		24,679		659,513		715,089

		Year Ended December 31, 2014
		SkyWest
		Airlines		ExpressJet		SkyWest Leasing		Consolidated
Operating revenues	$	1,873,675	$	1,346,859	$	16,913	$	3,237,447
Operating expense		1,758,145		1,446,050		8,404		3,212,599
Depreciation and amortization expense		162,699		88,459		8,484		259,642
Special items		57,046		17,731		—		74,777
Interest expense		39,451		18,754		7,790		65,995
Segment profit (loss) (1)		76,079		(117,945)		719		(41,147)
Identifiable intangible assets, other than goodwill		—		12,748		—		12,748
Total assets		2,475,283		1,386,564		526,971		4,388,818
Capital expenditures (including non-cash)		137,678		23,790		535,455		696,923

(1) Segment profit is operating income less interest expense