JetBlue Airlines 2006 Annual Report Download - page 48

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Contractual Obligations
Our noncancelable contractual obligations at December 31, 2006 include (in millions):
Payments due in
Total 2007 2008 2009 2010 2011 Thereafter
Long-term debt and capital lease
obligations (1) ................... $ 4,312 $ 350 $ 387 $ 282 $ 275 $ 271 $ 2,747
Lease commitments ................ 2,177 217 216 190 170 159 1,225
Flight equipment obligations ........ 5,705 775 835 965 1,030 1,000 1,100
Short-term borrowings.............. 39 39 — — — — —
Financing obligations and other (2) . . 2,333 147 119 138 147 168 1,614
Total ............................. $ 14,566 $ 1,528 $ 1,557 $ 1,575 $ 1,622 $ 1,598 $ 6,686
(1) Includes actual interest and estimated interest for floating-rate debt based on December 31, 2006
rates.
(2) Amounts include noncancelable commitments for the purchase of goods and services.
The interest rates are fixed for $1.03 billion of our debt and capital lease obligations, with the
remaining $1.70 billion having floating interest rates. The floating interest rates adjust quarterly or
semi-annually based on the London Interbank Offered Rate, or LIBOR. The weighted average
maturity of all of our debt was 11 years at December 31, 2006. In 2006, we refinanced the debt on five
of our Airbus A320 aircraft and, as a result, eliminated all financial covenants associated with our
debt instruments. Our spare parts pass-through certificates issued in November 2006 require us to
maintain certain non-financial collateral coverage ratios, which could require us to provide additional
spare parts collateral or redeem some or all of the related equipment notes. At December 31, 2006,
we were in compliance with all covenants of our debt and lease agreements and 93%of our owned
property and equipment was collateralized.
We have operating lease obligations for 47 aircraft with lease terms that expire from 2009 to 2024.
Five of these leases have variable-rate rent payments that 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 $97 million of restricted assets pledged under standby letters of
credit related to certain of our leases, $76 million of which will expire in late 2007 and the remainder
at the end of the related lease terms.
Our firm aircraft orders at December 31, 2006 consisted of 82 Airbus A320 aircraft and
78 EMBRAER 190 aircraft scheduled for delivery as follows: 22 in each of 2007 and 2008, 26 in 2009,
28 in each of 2010 and 2011, 17 in 2012, 11 in 2013 and 6 in 2014. We meet our predelivery deposit
requirements for our aircraft by paying cash or by using short-term borrowing facilities for deposits
required six to 24 months prior to delivery. Any predelivery deposits paid by the issuance of notes are
fully repaid at the time of delivery of the related aircraft.
We also have options to acquire 48 additional Airbus A320 aircraft for delivery from 2009
through 2013 and 100 additional EMBRAER 190 aircraft for delivery from 2008 through 2015. We
can elect to substitute Airbus A321 aircraft or A319 aircraft for the A320 aircraft until 21 months
prior to the scheduled delivery date for those aircraft not on firm order.
In November 2005, we executed a 30-year lease agreement with the Port Authority of New York
and New Jersey, or PANYNJ, for the construction and operation of a new terminal at JFK. The
aggregate cost of this project is estimated at $740 million and it is expected to be completed in late
2008. We are committed to making various payments under the lease, including ground rents for the
new terminal site which began on lease execution and facility rents that are anticipated to commence
upon the date of beneficial occupancy. The facility rents are based on the number of passengers
enplaned out of the new terminal, subject to annual minimums. The PANYNJ reimburses us for costs
of this project in accordance with the terms of the lease, except for approximately $80 million in
leasehold improvements that will be provided by us. For financial reporting purposes, this project will
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