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Balance Sheet Information | 9 Months Ended
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Jun. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract] |
Balance Sheet Information |
7. | Balance Sheet Information
Certain significant amounts included in the Company's condensed consolidated balance sheet as of June 30, 2020 and September 30, 2019, consisted of the following (in thousands):
|  | June 30, |  |  | September 30, |
|  | 2020 |  |  | 2019 |
Expendable parts and supplies, net: |  |  |  |  |  |  |  |
Expendable parts and supplies |  | $ | 26,368 |  |  | $ | 25,336 |
Less: obsolescence and other |  |  | (3,950 | ) |  |  | (3,999 | )
|  | $ | 22,418 |  |  | $ | 21,337 |
Prepaid expenses and other current assets: |  |  |  |  |  |  |  |
Prepaid aircraft rent |  | $ | — |  |  | $ | 35,786 |
Deferred reimbursed costs |  |  | 1,387 |  |  |  | 2,092 |
Other |  |  | 5,756 |  |  |  | 3,045 |
|  | $ | 7,143 |  |  | $ | 40,923 |
Property and equipment, net: |  |  |  |  |  |  |  |
Aircraft and other flight equipment |  | $ | 1,597,916 |  |  | $ | 1,582,199 |
Other equipment |  |  | 5,323 |  |  |  | 5,122 |
Leasehold improvements |  |  | 2,763 |  |  |  | 2,797 |
Vehicles |  |  | 962 |  |  |  | 924 |
Building |  |  | 699 |  |  |  | 699 |
Furniture and fixtures |  |  | 303 |  |  |  | 302 |
Total property and equipment |  |  | 1,607,966 |  |  |  | 1,592,043 |
Less: accumulated depreciation |  |  | (374,239 | ) |  |  | (318,458 | )
|  | $ | 1,233,727 |  |  | $ | 1,273,585 |
Other accrued expenses: |  |  |  |  |  |  |  |
Accrued property taxes |  | $ | 9,035 |  |  | $ | 9,186 |
Accrued interest |  |  | 5,941 |  |  |  | 4,497 |
Accrued vacation |  |  | 5,767 |  |  |  | 6,128 |
Deferred revenue-current portion |  |  | 3,760 |  |  |  | — |
Other |  |  | 13,160 |  |  |  | 9,077 |
|  | $ | 37,663 |  |  | $ | 28,888 |
The Company monitors for any indicators of impairment of the long-lived fixed assets. When certain conditions or changes in the economic situation such as the current environment brought by COVID-19 exist, the assets may be impaired and the carrying amount of the assets exceed its fair value. The assets need to be tested for recoverability of carrying amount. To determine whether impairments exist, we group assets at the Capacity Purchase Agreement and fleet-type level (i.e., the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of capacity purchase arrangements, block hours, maintenance events, labor costs and other relevant factors. Due to our reduced flying schedules and projections of future cash flows, we evaluated each of our fleets to determine if any of the fleets are impaired. Based on our carrying amount recoverability test, we have concluded that no fleet was impaired as of June 30, 2020 as the future cash flows exceeded the carrying value of our long-lived fixed assets. Given the uncertain future amid COVID-19, we will conduct additional tests in 4th quarter 2020. Depreciation expense totaled approximately $20.2 million and $19.3 million for the three months ended June 30, 2020 and 2019, respectively, and $60.5 million and $56.2 million for the nine months ended June 30, 2020 and 2019, respectively. Prior to the Company’s adoption of Topic 842 on October 1, 2019, the Company recorded amortization of the unfavorable lease liability of approximately $1.4 million for the three months ended June 30, 2019 and $4.5 million for the nine months ended June 30, 2019 as a reduction to lease expense. Upon the Company’s adoption of Topic 842, the unfavorable lease liability is now included in its ROU asset balance and amortized therein.

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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