Airtran 2009 Annual Report Download - page 59

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50
airlines, our own improved operating performance in 2009, and our recent ability to refinance certain B737
aircraft.
Our B737 contract with Boeing requires us to make pre-delivery deposits to Boeing. Although we typically
have financed a significant portion of our pre-delivery deposit requirements with debt from banks or other
financial institutions, we currently have no such financing in place for future deliveries.
If we are unable to generate revenues to cover our costs, we may slow our growth, including by the sale, lease,
or sub-lease of certain of our existing or on-order aircraft.
Contractual Obligations
Our contractual obligations as of December 31, 2009 are estimated to be due as follows (in millions):
Nature of commitment
Total 2010 2011-2012 2013-2014 Thereafter
Debt (1) $1,494 $323 $203 $208 $760
Operating lease obligations (2) 2,885 288 545 522 1,530
Capital lease obligations 22 2 4 4 12
Aircraft
p
urchase commitments
(
3
)
2
,
135 50 605 760 720
Total contractual obligations (4) $6,536 $663 $1,357 $1,494 $3,022
(1) Includes principal and interest payments, including interest payments on $665.7 million of floating rate
debt that have been forecasted at current interest rates. Also includes in 2010, repayment of $125 million
outstanding under the Revolving Line of Credit Facility. The holders of the $125 million 7.0% convertible
notes due in 2023 may require us to repurchase such notes in 2010, 2013 or 2018. The maturities of debt
amounts include the $95.8 million assumed impact of the holders exercising their option to require us to
repurchase the notes in 2010. Our debt agreements for aircraft acquisitions generally carry terms of twelve
years and are repaid either quarterly or semiannually.
(2) Amounts include minimum operating lease obligations for aircraft, airport facilities, and other leased
p
roperty. Amounts exclude contingent payments and aircraft maintenance deposit payments based on flight
hours or landings. Aircraft lease agreements are generally for fifteen years for B737 aircraft and for
eighteen to nineteen years for B717 aircraft.
(3) Amounts include payment commitments, including payment of pre-delivery deposits, for aircraft on firm
order. Payment commitments include the forecasted impact of contractual price escalations and directly
related costs.
(4) The table does not include payments to be made to third party aircraft maintenance contractors pursuant to
agreements whereby we pay such contractors based on aircraft flight hours or landings. The table does not
include liabilities to vendors, employees, and others classified as current liabilities on our December 31,
2009 consolidated balance sheet. Additionally, the above table does not include any obligations associated
with derivative financial instruments. As of December 31, 2009, we had recorded the following related to
derivative financial instruments: a $47.0 million current asset; a $14.8 million non-current asset; a $14.9
million current liability; and a $7.8 million non-current liability. Also, as of December 31, 2009, we had
p
rovided counterparties to derivative financial instruments with collateral aggregating $15.0 million.
A variety of assumptions are necessary in order to derive the information with respect to contractual
commitments described in the above table, including, but not limited to, the timing of the aircraft delivery dates.
Our actual obligations may differ from these estimates under different assumptions or conditions.