SkyWest Airlines 2008 Annual Report Download - page 64

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2008
(1) Nature of Operations and Summary of Significant Accounting Policies (Continued)
date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Reclassification
Certain reclassifications have been made to the December 31, 2007 and 2006 consolidated financial
statements to conform to current year presentation.
Cash and Cash Equivalents
The Company considers all highly liquid investments with an original maturity of three months or
less to be cash equivalents. The Company classified $10.7 million and $14.7 million of cash as restricted
cash as required by the Company’s workers’ compensation policy and classified it accordingly in the
consolidated balance sheets as of December 31, 2008 and 2007, respectively.
Marketable Securities
The Company’s investments in marketable debt and equity securities are deemed by management
to be available for sale and are reported at fair market value with the net unrealized appreciation or
depreciation reported as a component of accumulated other comprehensive loss in stockholders’ equity.
At the time of sale, any realized appreciation or depreciation, calculated by the specific identification
method, is recognized in other income and expense. The Company’s position in marketable securities
as of December 31, 2008 and 2007 was as follows (in thousands):
2008 2007
Investment Types Cost Market Value Cost Market Value
Commercial paper ............. $ 24,855 $ 22,790 $ 14,974 $ 14,983
Bond and bond funds .......... 546,003 542,733 507,147 505,706
Asset backed securities ......... 5,330 5,277 2,208 2,236
576,188 570,800 524,329 522,925
Unrealized loss ............... (5,388) — (1,404) —
Total ....................... $570,800 $570,800 $522,925 $522,925
Marketable securities had the following maturities as of December 31, 2008 (in thousands):
Maturities Amount
Year 2009 ............................................... $300,311
Years 2010 through 2013 .................................... 67,058
Years 2014 through 2018 .................................... 90
Thereafter ............................................... 203,341
The Company has classified $568.6 million of 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. The
Company has classified approximately $2.2 million of investments as non-current and has identified
60