JetBlue Airlines 2004 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2004 JetBlue Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

JETBLUE AIRWAYS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 2004
Note 2—Long-term Debt and Short-term Borrowings (Continued)
We currently have shelf registration statements on file with the Securities and Exchange
Commission related to the issuance of $1 billion aggregate amount of common stock, preferred stock,
debt securities and/or pass-through certificates. Through December 31, 2004, we had issued $498
million in pass-through certificates under these registration statements.
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 2036. Total rental expense for all operating leases in
2004, 2003 and 2002 was $119.8 million, $99.1 million and $64.5 million, respectively. We have $20.4
million of restricted cash pledged under standby letters of credit related to certain of our leases, which
is included in other assets.
At December 31, 2004, 25 of the 69 aircraft we operated were leased under operating leases, with
initial lease term expiration dates ranging from 2009 to 2023. Five of the 25 aircraft leases have
variable-rate rent payments based on LIBOR. Eighteen 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. During 2003, we entered into sale
and leaseback transactions for seven aircraft acquired in 2003. Gains associated with sale and leaseback
operating leases have been deferred and are being recognized on a straight-line basis over the lease
term as a reduction to aircraft rent expense.
Future minimum lease payments under noncancelable operating leases with initial or remaining
terms in excess of one year at December 31, 2004, are as follows (in thousands):
Aircraft Other
2005 ................................................ $ 81,008 $ 29,332
2006 ................................................ 87,662 25,903
2007 ................................................ 85,611 12,069
2008 ................................................ 82,146 10,286
2009 ................................................ 80,012 8,480
Thereafter ........................................... 496,697 36,235
Total minimum lease payments ............................ $ 913,136 $ 122,305
We hold variable interests in 15 of our 25 aircraft leases, which are owned by single owner trusts
whose sole purpose is to purchase, finance and lease these aircraft to us. Since we do not participate in
these trusts and we are not at risk for losses, we are not required to include these trusts in our
consolidated financial statements. Our maximum exposure is the remaining lease payments, which are
reflected in the future minimum lease payments in the table above.
57