JetBlue Airlines 2008 Annual Report Download - page 77

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As of December 31, 2008, excluding the contracts that we effectively exited, all of our outstanding
derivative contracts were designated as cash flow hedges for accounting purposes. While outstanding, these
contracts are recorded at fair value on the balance sheet with the effective portion of the change in their fair
value being reflected in accumulated other comprehensive income (loss). At December 31, 2007, 100% of our
derivative contracts were designated as cash flow hedges for accounting purposes.
We have currently suspended our fuel hedging program and are revising the program in light of current
crude oil prices.
Note 14—Quarterly Financial Data (Unaudited)
Quarterly results of operations for the years ended December 31 are summarized below (in millions,
except per share amounts):
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
2008 (1)
Operating revenues ...................................... $ 816 $ 859 $ 902 $ 811
Operating income (loss)................................... 17 21 22 49
Net income (loss) ....................................... (8) (7) (4) (57)
Basic earnings (loss) per share .............................. $(0.04) $(0.03) $(0.02) $(0.24)
Diluted earnings (loss) per share ............................ $(0.04) $(0.03) $(0.02) $(0.24)
2007 (2)
Operating revenues ...................................... $ 608 $ 730 $ 765 $ 739
Operating income (loss)................................... (13) 73 79 30
Net income (loss) ....................................... (22) 21 23 (4)
Basic earnings (loss) per share .............................. $(0.12) $ 0.12 $ 0.13 $(0.02)
Diluted earnings (loss) per share ............................ $(0.12) $ 0.11 $ 0.12 $(0.02)
(1) During the second, third and fourth quarters of 2008, we sold a total of nine Airbus A320 aircraft, which
resulted in gains of $13 million, $2 million and $8 million, respectively. During the third quarter of 2008,
we wrote-off $8 million related to our temporary terminal facility at JFK. During the fourth quarter of
2008, we recorded a net other-than-temporary impairment charge of $53 million related to the value of our
auction rate securities as described more fully in Note 13.
(2) During the third and fourth quarters of 2007, we sold a total of three Airbus A320 aircraft, which resulted
in gains of $2 million and $5 million, respectively.
The sum of the quarterly earnings per share amounts does not equal the annual amount reported since per
share amounts are computed independently for each quarter and for the full year based on respective
weighted-average common shares outstanding and other dilutive potential common shares.
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