SkyWest Airlines 2011 Annual Report Download - page 92

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2011
(8) Fair Value Measurements
The Company holds certain assets that are required to be measured at fair value in accordance
with United States GAAP. The Company determined fair value of these assets based on the following
three levels of inputs:
Level 1 —Quoted prices in active markets for identical assets or liabilities.
Level 2 —Observable inputs other than Level 1 prices such as quoted prices for similar assets
or liabilities; quoted prices in markets that are not active; or other inputs that are
observable or can be corroborated by observable market data for substantially the
full term of the assets or liabilities. Some of the Company’s marketable securities
primarily utilize broker quotes in a non-active market for valuation of these
securities.
Level 3 —Unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities, therefore requiring an entity to
develop its own assumptions.
As of December 31, 2011, the Company held certain assets that are required to be measured at
fair value on a recurring basis. Assets measured at fair value on a recurring basis are summarized
below (in thousands):
Fair Value Measurements as of December 31,
2011
Total Level 1 Level 2 Level 3
Marketable Securities
Bonds ...................................... $492,517 $ — $492,517 $ —
Commercial paper ............................. 4,557 — 4,557 —
Asset backed securities .......................... 478 — 478 —
497,552 — 497,552 —
Cash, Cash Equivalents and Restricted Cash ............ 148,960 148,960 — —
Other Assets(a) ................................. 3,793 — — 3,793
Total Assets Measured at Fair Value .................. $650,305 $148,960 $497,552 $3,793
Fair Value Measurements as of December 31,
2010
Total Level 1 Level 2 Level 3
Marketable Securities
Bonds ...................................... $665,023 $ — $665,023 $ —
Commercial paper ............................. 4,998 — 4,998 —
Asset backed securities .......................... 718 — 718 —
670,739 — 670,739 —
Cash, Cash Equivalents and Restricted Cash ............ 134,113 134,113 — —
Other Assets(a) ................................. 4,002 — — 4,002
Total Assets Measured at Fair Value .................. $808,854 $134,113 $670,739 $4,002
(a) Auction rate securities included in ‘‘Other assets’’ in the Consolidated Balance Sheet
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