SkyWest Airlines 2014 Annual Report Download - page 75

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2014
(1) Nature of Operations and Summary of Significant Accounting Policies (Continued)
carrier in Chicago (O’Hare), Washington, D.C. (Dulles International Airport), Cleveland, Newark,
Houston and Denver, and an American carrier in Dallas.
Basis of Presentation
The Company’s consolidated financial statements include the accounts of SkyWest, Inc. and its
subsidiaries, including SkyWest Airlines and ExpressJet, with all inter-company transactions and
balances having been eliminated.
In preparing the accompanying consolidated financial statements, the Company has reviewed, as
determined necessary by the Company’s management, events that have occurred after December 31,
2014, through the filing date of the Company’s annual report with the U.S. Securities and Exchange
Commission.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
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 $11.6 million and $12.2 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, 2014 and 2013, 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
(depreciation) reported as a component of accumulated other comprehensive income (loss) in
stockholders’ equity. At the time of sale, any realized appreciation or depreciation, calculated by the
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