SkyWest Airlines 2015 Annual Report Download - page 41

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We utilize several valuation techniques in order to assess the fair value of our financial assets and liabilities.
Our cash and cash equivalents primarily utilize quoted prices in active markets for identical assets or liabilities.
We have valued non-auction rate marketable securities using quoted prices in active markets for identical assets
or liabilities. If a quoted price is not available, we utilize broker quotes in a non-active market for valuation of these
securities. For auction-rate security instruments, quoted prices in active markets are no longer available. As a result, we
have estimated the fair values of these securities utilizing a discounted cash flow model.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update
No. 2014-09, “Revenue from Contracts with Customers” (“ASU No. 2014-09”). Under ASU No. 2014-09, revenue is
recognized at the time a good or service is transferred to a customer for the amount of consideration received for that
specific good or service. In July 2015, the FASB deferred the effective date of ASU No. 2014-09 to January 2, 2018.
The FASB also proposed permitting early adoption of the standard, but not before January 2, 2017. Entities may use a
full retrospective approach or report the cumulative effect as of the date of adoption. Our management is currently
evaluating the impact the adoption of ASU No. 2014-09 is anticipated to have on our consolidated financial statements.
In April 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update
No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU No. 2015-03”). In August 2015, ASU
No. 2015-03 was amended to modify existing guidance to require the presentation of debt issuance costs in the balance
sheet as a deduction from the carrying amount of the related debt liability instead of as a deferred charge. ASU
No. 2015-03 is effective for annual reporting periods beginning after December 15, 2015, but early adoption is
permitted. We anticipate reclassifying the unamortized debt issuance costs and present debt net of those unamortized
costs on our balance sheet upon adoption of ASU No. 2015-03.
In November 2015, the FASB issued Accounting Standards Update 2015-17, Income Taxes (Topic 740):
Balance Sheet Classification of Deferred Taxes (ASU No. 2015-17). The standard requires that deferred tax liabilities
and assets be classified as noncurrent in a classified statement of financial position. The current requirement that
deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not
affected by ASU No. 2015-17. ASU No. 2015-17 is effective for annual periods beginning after December 15, 2016,
and interim periods within those annual periods. We are evaluating the impact the adoption of ASU 2015-17 is
anticipated to have on our consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). The standard amends the existing
accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets
and making targeted changes to lessor accounting. ASU 2016-02 will be effective beginning in the first quarter of 2019.
Early adoption of ASU 2016-02 is permitted. The new leases standard requires a modified retrospective transition
approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain
transition relief. We are currently evaluating the impact of adopting ASU 2016-02 on our consolidated financial
statements.