JetBlue Airlines 2003 Annual Report Download - page 62

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JETBLUE AIRWAYS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 2003
Note 2—Long-term Debt and Short-term Borrowings (Continued)
Maturities of long-term debt for the next five years are as follows (in thousands):
2004 .................................................. $ 67,101
2005 .................................................. 69,840
2006 .................................................. 69,802
2007 .................................................. 70,515
2008 .................................................. 72,623
Cash payments of interest, net of capitalized interest, aggregated $19.7 million, $14.2 million and
$4.8 million in 2003, 2002 and 2001, respectively. Non-cash predelivery financing obtained in connection
with the acquisition of new aircraft was $34.0 million in 2001.
In November 2000, we entered into a funding facility to finance aircraft predelivery deposits. The
facility, as amended in September 2003, allows for borrowings up to $34.0 million through
November 2005. Commitment fees are .35% per annum on the average unused portion of the facility.
At December 31, 2003, $4.1 million was available under this facility. The weighted average interest rate
on these outstanding short-term borrowings at December 31, 2003 and 2002 was 2.7% and 2.9%,
respectively.
On October 7, 2003, we filed a registration statement on Form S-3 with the SEC, File
No. 333-109546, which, when effective, will permit us to offer up to $750 million aggregate amount of
common stock, preferred stock, debt securities and/or pass through certificates. This registration
statement has not yet become effective and we have not issued nor offered any securities related to it.
Note 3—Leases
We lease aircraft, as well as airport terminal space, other airport facilities, office space and other
equipment, which expire in various years through 2024. Total rental expense for all operating leases in
2003, 2002 and 2001 was $99.1 million, $64.5 million and $49.7 million, respectively. We have
$15.1 million of restricted cash pledged under standby letters of credit related to these leases which is
included in other assets.
At December 31, 2003, 24 of the 53 aircraft we operated were leased under operating leases, with
initial lease term expiration dates ranging from 2009 to 2023. Five of the 24 aircraft leases have
variable-rate rent payments based on the London Interbank Offered Rate. Seventeen aircraft leases
generally can be renewed at rates based on fair market value at the end of the lease term for one, two
or four years and 15 aircraft leases have purchase options after five or 12 years at amounts that are
expected to approximate fair market value or at the end of the lease term at fair market value. We
entered into sale and leaseback transactions for seven aircraft which we had acquired during 2003.
Gains associated with these operating leases have been deferred and are being recognized on a
straight-line basis over the lease term as a reduction to rent expense.
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