6.	Balance Sheet Information

Certain significant amounts included in the company’s condensed consolidated balance sheet as of June 30, 2018 and September 30, 2017, consisted of the following (in thousands):


	June 30,			September 30,
	2018			2017
Expendable parts and supplies, net
Expendable parts and supplies	$	18,687		$	17,807
Less obsolescence and warranty reserve		(2,971	)		(2,693	)

	$	15,716		$	15,114

Prepaid expenses and other current assets
Prepaid aircraft rent	$	27,195		$	53,645
Unutilized manufacturer credits		3,000			—
Deferred offering and reimbursed costs		3,992			1,863
Other		5,315			6,017

	$	39,502		$	61,525

Property and equipment—net
Aircraft and other flight equipment substantially pledged	$	1,475,572		$	1,388,990
Other equipment		3,743			3,383
Leasehold improvements		2,746			2,746
Vehicles		692			744
Building		699			699
Furniture and fixtures		287			251

Total property and equipment		1,483,739			1,396,813
Less accumulated depreciation		(244,191	)		(204,365	)

	$	1,239,548		$	1,192,448

Other accrued expenses
Accrued property taxes	$	5,671		$	6,484
Accrued interest		7,181			4,036
Accrued vacation		5,155			2,663
Accrued wheels, brakes and tires		1,406			2,477
Other		9,236			8,269

	$	28,649		$	23,929

Depreciation expense totaled approximately $15.9 million and $47.3 million for the three and nine months ended June 30, 2018, respectively, and approximately $15.5 million and $44.9 million for the three and nine months ended June 30, 2017, respectively.

The Company recorded amortization of the unfavorable lease liability for approximately $1.7 million and $5.1 million for the three and nine months ended June 30, 2018 and 2017, respectively, as a reduction to lease expense. During the three months ended June 30, 2018, the Company wrote off $1.2 million of unfavorable lease liability related to the lease termination of its aircraft lease facility with Wells Fargo Bank Northwest, National Association, as owner trustee and lessor (the “GECAS Lease Facility”), which was accounted for as lease termination expense.