JetBlue Airlines 2006 Annual Report Download - page 65

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Asset Construction. As a result, we are considered the owner of the Project for financial reporting
purposes only and are required to reflect an asset and liability for in-process construction related to
the Project on our balance sheets. To date, we have paid $179 million in Project costs and have
capitalized $7 million in interest, which are reflected as Assets Constructed for Others in the
accompanying consolidated balance sheets. Reimbursements from the PANYNJ and financing charges
totaled $186 million through December 31, 2006 and are reflected as Construction Obligation in our
consolidated balance sheets. Following the construction period, we do not currently anticipate that we
will have satisfied the sale and leaseback accounting criteria outlined in Statement of Financial
Accounting Standards No. 98, Accounting for Leases, due to our continuing involvement in the
property; therefore, the completed project and related liability will remain on our balance sheets and
be accounted for as a financing.
Assets Constructed for Others will be amortized over the shorter of the lease term or their
economic life. Facility rents will be recorded as debt service on the Construction Obligation, with the
portion not relating to interest reducing the principal balance. Ground rents are being recognized on a
straight-line basis over the lease term and are reflected in the future minimum lease payments table
included in Note 3. Minimum estimated facility payments, including escalations, associated with this
lease are estimated to be $19 million in 2008, $29 million in 2009, $33 million in 2010, $38 million in
2011 and $905 million thereafter.
Note 5—Stockholders’ Equity
Our authorized shares of capital stock consist of 500 million shares of common stock and
25 million shares of preferred stock. The holders of our common stock are entitled to one vote per
share on all matters which require a vote by the Company’s stockholders as set forth in our Amended
and Restated Certificate of Incorporation and Bylaws.
We distributed 57 million shares of common stock in connection with our December 2005
three-for-two stock split. All common share and per share data for periods presented in the
accompanying consolidated financial statements and notes thereto give effect to this stock split.
In November 2005, we completed a public offering of 12.9 million shares of our common stock at
$12.00 per share, raising net proceeds of $153 million, after deducting discounts and commissions paid
to the underwriters and other expenses incurred in connection with the offering.
Pursuant to our Stockholder Rights Agreement, which became effective in February 2002, each
share of common stock has attached to it a right and, until the rights expire or are redeemed, each
new share of common stock issued by the Company will include one right. Upon the occurrence of
certain events, each right entitles the holder to purchase one one-thousandth of a share of Series A
participating preferred stock at an exercise price of $35.55, subject to further adjustment. The rights
become exercisable only after any person or group acquires beneficial ownership of 15%or more
(25%or more in the case of certain specified stockholders) of the Company’s outstanding common
stock or commences a tender or exchange offer that would result in such person or group acquiring
beneficial ownership of 15%or more (25%or more in the case of certain stockholders) of the
Company’s common stock. If after the rights become exercisable, the Company is involved in a
merger or other business combination or sells more than 50%of its assets or earning power, each right
will entitle its holder (other than the acquiring person or group) to receive common stock of the
acquiring company having a market value of twice the exercise price of the rights. The rights expire
on April 17, 2012 and may be redeemed by the Company at a price of $.01 per right prior to the time
they become exercisable.
As of December 31, 2006, we had a total of 74.8 million shares of our common stock reserved for
issuance under our CSPP, our 2002 Plan and for our convertible debt.
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