PART II  ITEM 8 Financial Statements and Supplementary Data JetBlue Airways Corporation Notes to Consolidated Financial Statements NOTE 1  Summary of Significant Accounting Policies Basis of Presentation Accounts and Other Receivables District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin  Islands, and 15 countries in the Caribbean and Latin America. Our wholly  owned subsidiary, LiveTV, LLC, or LiveTV, provides in-flight entertainment  systems and internet connectivity for commercial aircraft. JetBlue Airways Corporation, or JetBlue, is New York’s Hometown Airline™,  commencing service on February 11, 2000. We believe our differentiated  product and service offerings combined with our competitive cost advantage  enables us to effectively compete in the high-value geography we serve.  As of December 31, 2013, we served 82 destinations in 25 states, the  Accounts and other receivables are carried at cost. They primarily consist  of amounts due from credit card companies associated with sales of  tickets for future travel. We estimate an allowance for doubtful accounts  based on known troubled accounts, if any, and historical experience of  losses incurred. JetBlue predominately provides air transportation services across the  United States, Caribbean and Latin America. Our consolidated financial  statements have been prepared in accordance with accounting principles  generally accepted in the U.S., or U.S. GAAP, and include the accounts  of JetBlue and our subsidiaries. All majority-owned subsidiaries are  consolidated on a line by line basis, with all intercompany transactions  and balances being eliminated. Air transportation services accounted for  substantially all of the Company’s operations in 2013, 2012 and 2011.  Accordingly, segment information is not provided for LiveTV. In the first half  of 2013 we recorded $4 million of maintenance expense and $2 million  in other operating expenses that relate to prior years. Such amounts are  not considered material to the prior or current year results. Investment securities consist of available-for-sale investment securities  and held-to-maturity investment securities. When sold, we use a specific  identification method to determine the cost of the securities. Available-for-sale investment securities: Our available-for-sale investment  securities include (a) highly liquid investments, such as certificates of  deposits and treasury bills, with maturities greater than three months when  purchased, stated at fair value and (b) commercial paper with maturities  between three and twelve months, stated at fair value. The preparation of our consolidated financial statements and accompanying  notes in conformity with U.S. GAAP require us to make certain estimates  and assumptions. Actual results could differ from those estimates. Held-to-maturity investment securities:  Our held-to-maturity investments  consist of investment-grade interest bearing instruments, primarily corporate  bonds, which are stated at amortized cost. We do not intend to sell these  investment securities and the contractual maturities are not greater than  24 months. Those with maturities less than twelve months are included  in short-term investments on our consolidated balance sheets. Those  with remaining maturities in excess of twelve months are included in  long-term investments on our consolidated balance sheets. We did not  record any material gains or losses on these securities during the years  ended December 31, 2013, 2012 or 2011. The estimated fair value of  these investments approximated their carrying value as of December 31,  2013 and 2012. The Fair Value Measurements and Disclosures  topic of the Financial  Accounting Standards Board’s, or FASB, Accounting Standards  Codification™, or Codification, establishes a framework for measuring fair  value and requires enhanced disclosures about fair value measurements.  This topic clarifies fair value is an exit price, representing the amount that  would be received to sell an asset or paid to transfer a liability in an orderly  transaction between market participants. The topic also requires disclosure  about how fair value is determined for assets and liabilities and establishes  a hierarchy for which these assets and liabilities must be grouped, based  on significant levels of inputs. See Note 14 for more information. Also included in our held-to-maturity investment securities as of December 31,  2013 are deposits made to lower the interest rate on the debt secured by  two aircraft as discussed in Note 2. These funds on deposit are readily  available to us and are invested with a bank with a deposit maturity within  the next 12 months. If we were to draw upon this deposit, the interest rates  on the debt reverts to the higher rates in effect prior to the re-financing.  As such, we have classified these time deposits as long-term held-to- maturity investments to reflect our intent to hold them in connection with  the maturity of the associated debt.  Our cash and cash equivalents include short-term, highly liquid investments  which are readily convertible into cash. These investments include money  market securities, treasury bills, and commercial paper with maturities of  three months or less when purchased. Restricted cash primarily consists of security deposits, funds held in escrow  for estimated workers’ compensation obligations and performance bonds  for aircraft and facility leases. Restricted Cash Cash and Cash Equivalents Fair Value Use of Estimates Investment Securities JETBLUE AIRWAYS CORPORATION  -  2013 Annual Report 46