JetBlue Airlines 2010 Annual Report Download - page 47

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terrorism. We believe the working capital available to us will be sufficient to meet our cash requirements for
at least the next 12 months.
Contractual Obligations
Our noncancelable contractual obligations at December 31, 2010 include (in millions):
Total 2011 2012 2013 2014 2015 Thereafter
Payments due in
Long-term debt and capital lease
obligations (1) .................... $ 3,788 $ 308 $ 303 $ 493 $ 695 $ 322 $1,667
Lease commitments .................. 1,755 214 191 164 165 170 851
Flight equipment obligations ........... 4,360 375 475 585 805 925 1,195
Financing obligations and other (2) ...... 3,216 222 292 245 209 244 2,004
Total ............................. $13,119 $1,119 $1,261 $1,487 $1,874 $1,661 $5,717
(1) Includes actual interest and estimated interest for floating-rate debt based on December 31, 2010 rates.
(2) Amounts include noncancelable commitments for the purchase of goods and services.
The interest rates are fixed for $1.61 billion of our debt and capital lease obligations, with the remaining
$1.42 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 seven
years at December 31, 2010. We are not subject to any financial covenants in any of our debt obligations. 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. During 2010, we posted $1 million in cash collateral in order to
maintain the required ratios for the spare parts pass-through certificates. At December 31, 2010, we were in
compliance with all covenants of our debt and lease agreements and 75% of our owned property and
equipment was collateralized.
We have operating lease obligations for 61 aircraft with lease terms that expire between 2011 and 2026.
One of the aircraft under operating lease was not yet in service at December 31, 2010. 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
approximately $31 million of restricted assets pledged under standby letters of credit related to certain of our
leases which will expire at the end of the related lease terms.
Including the effects of the 2010 amendments to our Airbus and EMBRAER purchase agreements, our
firm aircraft orders at December 31, 2010 consisted of 55 Airbus A320 aircraft and 54 EMBRAER 190
aircraft scheduled for delivery as follows: 9 in 2011, 11 in 2012, 14 in 2013, 19 in 2014, 22 in 2015, 18 in
2016, 8 in 2017, and 8 in 2018. We have the right to cancel three firm EMBRAER 190 deliveries in 2012 or
later, provided no more than two deliveries are canceled in any one year. 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 eight additional Airbus A320 aircraft for delivery from 2014 through
2015 and 65 additional EMBRAER 190 aircraft for delivery from 2012 through 2018. 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 October 2008, we began operating out of our new Terminal 5 at JFK, or Terminal 5, which we had
been constructing since November 2005. The construction and operation of this facility is governed by a lease
agreement that we entered into with the PANYNJ in 2005. We are responsible for making various payments
under the lease, including ground rents for the new terminal site which began on lease execution in 2005 and
facility rents that commenced in October 2008 upon our occupancy of the new terminal. The facility rents are
based on the number of passengers enplaned out of the new terminal, subject to annual minimums. The
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