ALASKA AIR GROUP, INC. PP&E Disclosure
(in millions) | 2025 | 2024 | |||||||||
| Property and Equipment | |||||||||||
| Aircraft and other flight equipment | $ | 13,647 | $ | 12,273 | |||||||
| Other property and equipment | 2,424 | 2,173 | |||||||||
| Deposits for future flight equipment | 731 | 883 | |||||||||
| Less: Accumulated depreciation and amortization | (4,945) | (4,548) | |||||||||
| Total Property and Equipment, net | $ | 11,857 | $ | 10,781 | |||||||
| Estimated Useful Life | Estimated Salvage Value | |||||||
| Aircraft and other flight equipment: | ||||||||
Boeing 717-200 aircraft | 3 to 4 years(a) | 10% | ||||||
Boeing 737 aircraft | 20 to 25 years | 10% | ||||||
Boeing 787-9 aircraft | 25 years | 10% | ||||||
Airbus A321neo aircraft | 18 to 20 years(a) | 10% | ||||||
Airbus A330 aircraft | 11 to 15 years(a) | 10% | ||||||
Embraer E175 aircraft | 20 years | 10% | ||||||
| Buildings | 30 to 40 years | 10% | ||||||
| Minor building and land improvements | 10 years | —% | ||||||
| Capitalized leases and leasehold improvements | Generally shorter of lease term or estimated useful life | —% | ||||||
| Computer hardware and software | 3 to 5 years | —% | ||||||
| Other furniture and equipment | 3 to 10 years | —% | ||||||
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.