JetBlue Airlines 2004 Annual Report Download - page 51

Contractual Obligations
Our noncancelable contractual obligations at December 31, 2004 include the following (in
millions):
Payments due in
Total 2005 2006 2007 2008 2009 Thereafter
Long-term debt(1) ......... $ 2,011 $ 173 $ 166 $ 163 $ 179 $ 129 $ 1,201
Operating leases ........... 1,035 110 114 98 92 88 533
Flight equipment obligations . . 7,280 820 1,120 1,170 1,210 1,240 1,720
Short-term borrowings ...... 44 44———— —
Facilities and other(2) ....... 271 143 28 28 30 27 15
Total ................... $ 10,641 $ 1,290 $ 1,428 $ 1,459 $ 1,511 $ 1,484 $ 3,469
(1) Includes actual interest and estimated interest for floating-rate debt based on December 31, 2004
rates.
(2) Amounts represent noncancelable commitments for the purchase of goods and services.
All of our debt, other than our 31⁄2% convertible notes, has floating interest rates and had a
weighted average maturity of 8.6 years at December 31, 2004. Interest rates adjust quarterly or
semi-annually based on the London Interbank Offered Rate, or LIBOR. Under the debt agreements
related to two of our aircraft, we are required to comply with two specific financial covenants. The first
requires that our tangible net worth be at least 12% of our total assets. The second requires that for
each quarter, our EBITDA for the prior four quarters must be at least twice our interest expense for
those four quarters. Our inability to comply with the required financial maintenance covenants or
provisions could result in default under these financing agreements and would result in a cross default
under our other financing agreements. In the event of any such default and our inability to obtain a
waiver of the default, all amounts outstanding under the agreements could be declared to be
immediately due and payable. If we did not have sufficient available cash to pay all amounts that
become due and payable, we would have to seek additional debt or equity financing, which may not be
available on acceptable terms, or at all. At December 31, 2004, we were in compliance with the
covenants of all of our debt and lease agreements.
We have significant operating lease obligations for 25 aircraft with initial lease terms that range
from 10 to 20 years. Five of these aircraft have variable-rate rent payments and adjust semi-annually
based on LIBOR. We also lease airport terminal space and other airport facilities in each of our
markets, as well as office space and other equipment. We have $20.4 million of restricted cash pledged
under standby letters of credit related to certain of our leases, which expire at the end of the related
lease terms.
Our firm aircraft orders at December 31, 2004 consisted of 114 Airbus A320 aircraft and 100
Embraer E190 aircraft scheduled for delivery as follows: 22 in 2005, 35 in each of 2006, 2007 and 2008,
36 in each of 2009 and 2010, and 15 in 2011. We meet our predelivery deposit requirements for our
Airbus A320 aircraft by paying cash, or by using a short-term borrowing facility, for deposits required
24 and 12 months prior to delivery. Any Airbus A320 predelivery deposits paid by the issuance of notes
are fully repaid at the time of delivery of the related aircraft. Predelivery deposits for our Embraer
E190 aircraft are required 15, 12 and six months prior to delivery. We do not currently have a
borrowing facility in place for these deposits.
We also have options to acquire 50 additional Airbus A320 aircraft for delivery from 2008 through
2013 and 100 additional Embraer E190 aircraft for delivery from 2011 through 2016. We can elect to
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