SkyWest Airlines 2011 Annual Report Download - page 73

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2011
(1) Nature of Operations and Summary of Significant Accounting Policies (Continued)
date of the ExpressJet Combination and United from February 2010 through the date of the ExpressJet
Combination. Upon the completion of the ExpressJet Combination on December 31, 2011, ExpressJet
operated as a Delta Connection carrier in Atlanta and Cincinnati and a United Express carrier in
Chicago (O’Hare), Washington, D.C. (Dulles International Airport), Cleveland, Newark and Houston.
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. References in the accompanying financial statements to ‘‘Atlantic
Southeast’’ and ‘‘ExpressJet Delaware’’ refer to the operations conducted by Atlantic Southeast and
ExpressJet Delaware, respectively, prior to the completion of the ExpressJet Combination on
December 31, 2011.
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,
2011, up until the filing of the Company’s annual report with the U.S. Securities and Exchange
Commission.
Reclassification
Certain reclassifications have been made to the Company’s December 31, 2010 and 2009
consolidated financial statements to conform to the presentation of the Company’s December 31, 2011
consolidated financial statements.
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 $19.4 million and $21.8 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, 2011 and 2010, 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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