JetBlue Airlines 2011 Annual Report Download - page 65

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JETBLUE AIRWAYS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2011
JetBlue Airways Corporation is an innovative passenger airline that provides award-winning customer
service at competitive fares primarily on point-to-point routes. We offer our customers a high quality product
with young, fuel-efficient aircraft, leather seats, free in-flight entertainment at every seat, pre-assigned seating
and reliable performance. We commenced service in February 2000 and established our primary base of
operations at New York’s John F. Kennedy International Airport, or JFK, where we now have more
enplanements than any other airline. As of December 31, 2011, we served 70 destinations in 22 states, Puerto
Rico, Mexico, and 12 countries in the Caribbean and Latin America. Our wholly owned subsidiary, LiveTV,
LLC, or LiveTV, provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite
television, digital satellite radio, wireless aircraft data link service and cabin surveillance systems.
Note 1—Summary of Significant Accounting Policies
Basis of Presentation: Our consolidated financial statements include the accounts of JetBlue Airways
Corporation, or JetBlue, and our subsidiaries, collectively “we” or the “Company”, with all intercompany
transactions and balances having been eliminated. Air transportation services accounted for substantially all the
Company’s operations in 2011, 2010 and 2009. Accordingly, segment information is not provided for LiveTV.
Certain prior year amounts have been reclassified to conform to the current year presentation.
Use of Estimates: We are required to make estimates and assumptions when preparing our consolidated
financial statements in conformity with accounting principles generally accepted in the United States that affect
the amounts reported in our consolidated financial statements and accompanying notes. Actual results could
differ from those estimates.
Fair Value: The Fair Value Measurements and Disclosures topic of the Financial Accounting Standards
Board’s, or FASB, Accounting Standards CodificationTM, or Codification, establishes a framework for measuring
fair value and requires enhanced disclosures about fair value measurements. Additionally, this topic clarifies that
fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants. The Fair Value Measurements and Disclosures
topic also requires disclosure about how fair value is determined for assets and liabilities and establishes a
hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs. See Note
14 for more information.
Cash and Cash Equivalents: Our cash and cash equivalents include short-term, highly liquid investments
which are readily convertible into cash. These investments include money market securities and commercial
paper with maturities of three months or less when purchased.
Restricted Cash: Restricted cash primarily consists of security deposits and performance bonds for aircraft
and facility leases and funds held in escrow for estimated workers’ compensation obligations.
Accounts and Other Receivables: Accounts and other receivables are carried at cost. They primarily
consist of amounts due from credit card companies associated with sales of tickets for future travel and amounts
due from counterparties associated with fuel derivative instruments that have settled. We estimate an allowance
for doubtful accounts based on known troubled accounts, if any, and historical experience of losses incurred.
Investment Securities: Investment securities consist of available-for-sale investment securities and held-
to-maturity investment securities. When sold, we use a specific identification method to determine the cost of the
securities.
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