Airtran 2008 Annual Report Download - page 98

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Assets and (liabilities) measured at fair value on a recurring basis during the period were as follows (in
thousands):
(in thousands)
Fair Value at
December
31, 2008
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Other
Observable
Inputs (Level 2)
Fair Value
Measurements
Using Unobservable
Inputs (Level 3)
Valuation
Technique
Cash and cash equivalents
$ 315,078 $ — $ 315,078 $ — Market
Short-term investments 19,937 — 19,937 — Market
Long-term investments
5,497 — 5,497 — Market
Interest rate derivatives
(21,338) — (21,338) — Market
Fuel derivatives
(65,504) — — (65,504)Market
The reconciliation of our fuel derivatives that are measured at fair value on a recurring basis using significant
unobservable inputs (Level 3) for the period January 1, 2008 through December 31, 2008 is as follows (in
thousands):
Fair Value
Measurements
Using Significant
Unobservable
Inputs (Level 3)
Fuel related derivative asset (liability):
Balance at January 1, 2008 $ 13,035
Total realized and unrealized gains or (losses):
Included in earnings (135,205)
Included in other comprehensive income (11,374)
Purchases, issuances, and settlements 68,040
Balance at December 31, 2008 $ (65,504)
The amount of total gains or (losses) for the twelve months ended December 31,
2008, included in earnings attributable to the change in unrealized gains or losses
relating to assets and liabilities still held at December 31, 2008 $ (12,885)
Note 8 – Common Stock
We have one class of common stock. Holders of shares of our common stock are entitled to one vote per share.
As of December 31, 2008, we had reserved 9,793,912 common shares for issuance for stock option exercises,
conversion of restricted stock, and the exercise of warrants, of which 3,662,901 shares are reserved for stock
options that are vested and exercisable and restricted stock that have been granted but not vested, and 4,700,886
shares are reserved for issuance upon the exercise of warrants.
In May 2008, we completed a public offering of 24.7 million shares of our common stock at a price of $3.20 per
share. We received net proceeds from the offering of approximately $74.7 million, after deducting discounts
and commissions paid to the underwriters and other expenses incurred with the offering.
On April 6, 2006, 55,468 warrants were exercised for the purchase of our common stock. Each warrant entitled
the purchaser to 18.0289 shares of common stock for a total of 1,000,024 shares at $4.51 per share. Total
proceeds from the aforementioned transaction amounted to approximately $4.5 million.
Certain of our debt agreements restrict our ability to pay cash dividends.
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