JetBlue Airlines 2004 Annual Report Download - page 73

JETBLUE AIRWAYS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 2004
Note 8—Income Taxes (Continued)
The components of our deferred tax assets and liabilities as of December 31 are as follows (in
thousands):
2004 2003
Deferred tax assets:
Net operating loss carryforwards ............................... $ 141,000 $ 52,097
Employee benefits ......................................... 4,396 2,419
Gains from sale and leaseback of aircraft ......................... 2,413 2,683
Tax credit carryforwards ..................................... 2,326 1,427
Rent expense ............................................. 1,685 1,774
Organization and start-up costs ................................ 1,049 2,871
Other .................................................. 1,269 1,505
Deferred tax assets ....................................... 154,138 64,776
Deferred tax liabilities:
Accelerated depreciation ..................................... (271,146) (160,723)
Derivative gains ........................................... (7,828) (4,046)
Net deferred tax liability ................................... $ (124,836) $ (99,993)
At December 31, 2004, the Company had regular and alternative minimum tax net operating loss
carryforwards of $358.3 million and $223.0 million, respectively, available for carryforward to reduce the
tax liabilities of future years. These carryforwards begin to expire in 2020 for federal purposes and
between 2015 and 2023 for state purposes.
Note 9—Employee Retirement Plan
We sponsor a retirement savings 401(k) defined contribution plan, or the Plan, covering all of our
employees. We match 100 percent of our employee contributions up to three percent of their
compensation in cash, which then vests over five years. Participants are immediately vested in their
voluntary contributions. We have a profit sharing retirement plan as a separate component of the Plan
for all of our employees under which an award pool consisting of 15 percent of our pre-tax earnings,
subject to Board of Director approval, is distributed on a pro rata basis based on employee
compensation. These contributions vest immediately. Our contributions expensed for the Plan in 2004,
2003 and 2002 were $19.4 million, $35.3 million and $19.3 million, respectively.
Note 10—Commitments
At December 31, 2004, our firm aircraft orders consisted of 114 Airbus A320 aircraft, 100 Embraer
E190 aircraft and 37 spare engines scheduled for delivery through 2012. We also have firm orders for
four Airbus A320 and one Embraer E190 full flight simulators to be delivered in 2005. Committed
expenditures for these aircraft and related flight equipment, including estimated amounts for
contractual price escalations and predelivery deposits, will be approximately $0.82 billion in 2005, $1.12
billion in 2006, $1.17 billion in 2007, $1.21 billion in 2008, $1.24 billion in 2009, and $1.72 billion
thereafter. We have options to purchase 50 A320 aircraft scheduled for delivery from 2008 through
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