JetBlue Airlines 2006 Annual Report Download - page 69

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The following is a summary of outstanding stock options at December 31, 2006:
Options Outstanding Options Vested
Range of
exercise prices Shares
Weighted
Average
Remaining
Contractual
Life (years)
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
(millions) Shares
Weighted
Average
Remaining
Contractual
Life (years)
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
(millions)
$0.33 to $14.15.... 20,779,698 6.4 $ 9.11 $ 110 16,220,209 5.8 $ 8.53 $ 95
$14.53 to $29.71. . . 10,310,047 7.5 18.23 — 8,661,577 7.2 18.10 —
31,089,745 6.8 12.13 $ 110 24,881,786 6.3 11.86 $ 95
The total intrinsic value, determined as of the date of exercise, of options exercised during the
twelve months ended December 31, 2006, 2005 and 2004 was $25 million, $19 million and $24 million,
respectively. We received $11 million, $6 million and $4 million in cash from option exercises for the
twelve months ended December 31, 2006, 2005 and 2004, respectively.
Note 8—LiveTV
Purchased technology, which is an intangible asset related to our September 2002 acquisition of
the membership interests of LiveTV, is being amortized over seven years based on the average
number of aircraft expected to be in service as of the date of acquisition. Projected amortization
expense is $11 million, $13 million and $8 million in 2007, 2008 and 2009, respectively.
Through December 31, 2006, LiveTV had installed in-flight entertainment systems for other
airlines on 231 aircraft and had firm commitments for installations on 185 additional aircraft scheduled
to be installed through 2012, with options for 187 additional installations through 2017. Revenues in
2006, 2005 and 2004 were $29 million, $19 million and $6 million, respectively. Deferred profit on
hardware sales and advance deposits for future hardware sales included in long term liabilities in the
accompanying consolidated balance sheets was $27 million and $21 million at December 31, 2006 and
2005, respectively. Deferred profit to be recognized on installations completed through
December 31, 2006 will be approximately $4 million per year through 2009, $1 million in both 2010
and 2011 and $4 million thereafter.
Note 9—Income Taxes
The provision (benefit) for income taxes consisted of the following for the years ended
December 31 (in millions):
2006 2005 2004
Current:
Federal........................................................... $ — $ — $ (1)
State and foreign .................................................. — — —
Deferred:
Federal........................................................... 9 (4) 28
State and foreign .................................................. 1 — 2
Income tax expense (benefit) ......................................... $ 10 $ (4) $ 29
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