SkyWest Airlines 2003 Annual Report Download - page 38

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2003
2002
Investment Types Cost Market Value Cost Market Value
Commercial paper $ 15,318 $ 15,318 $ 10,019 $ 10,019
Bond funds 262,790 262,345 232,891 230,858
Corporate notes 59,984 60,117 35,597 35,439
Asset backed securities 20,395 20,390 18,288 18,148
Other 584 657 - -
359,071 358,827 296,795 294,464
Unrealized depreciation (244) - (2,331) -
Total $ 358,827 $ 358,827 $ 294,464 $ 294,464
Marketable securities had the following maturities as of December 31, 2003 (in thousands):
Maturities
Amount
Year 2004 $ 197,111
Years 2005 through 2008 83,338
Years 2009 through 2013 21,384
Thereafter 56,994
The Company has classified all marketable securities as short-term since it has the intent to maintain a liquid portfolio and the
ability to redeem the securities within one year.
Inventories
Inventories include expendable parts, fuel and supplies and are valued at cost (FIFO basis) less an allowance for obsolescence
based on historical results and management’s expectations of future operations. Expendable inventory parts are charged to
expense as used. An allowance for obsolescence is provided over the remaining estimated useful life of the related aircraft, plus
allowances for spare parts currently identified as excess to reduce the carrying costs to net realizable value. These allowances are
based on management estimates, which are subject to change.
Property and Equipment
Property and equipment are stated at cost and depreciated over their useful lives to their estimated residual values using the
straight-line method as follows:
Depreciable Residual
Assets Life Value
Aircraft 14-18 years 25-30%
Rotable spares 5 years 0%
Ground equipment 5-7 years 0%
Office equipment 5-7 years 0%
Leasehold improvements 15 years 0%
Buildings 20-39.5 years 0%
Impairment of Long Lived Assets
As of December 31, 2003, the Company had $742.8 million of flight equipment and related long-lived assets, net of accumulated
depreciation and amortization. In addition to the original cost of these assets, their recorded value is impacted by a number of
policy elections made by the Company, including estimated useful lives and salvage values. The Company reviews its long-lived
assets for impairment upon certain triggering events, such as a reduction to fleet lives, at each balance sheet date that may indicate
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