JetBlue Airlines 2010 Annual Report Download - page 82
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our interest rate derivatives which offset the hedge liability in other current liabilities at December 31, 2010
and 2009, respectively.
The table below reflects quantitative information related to our derivative instruments and where these
amounts are recorded in our financial statements. All of our outstanding contracts at December 31, 2010 were
designated as cash flow hedges. The fair value of those contracts not designated as cash flow hedges was not
material at December 31, 2009 (dollar amounts in millions).
2010 2009
As of December 31,
Fuel derivatives
Asset fair value recorded in prepaid expenses and other .................. $ 19 $ 25
Asset fair value recorded in other long term assets ...................... 4 3
Longest remaining term (months) .................................. 24 18
Hedged volume (barrels, in thousands) .............................. 4,290 5,070
Estimated amount of existing gains (losses) expected to be reclassified into
earnings in the next 12 months .................................. 3 12
Interest rate derivatives
Liability fair value recorded in other long term liabilities (1) .............. 23 10
Estimated amount of existing gains (losses) expected to be reclassified into
earnings in the next 12 months .................................. (10) (8)
2010 2009 2008
Fuel derivatives
Hedge effectiveness gains (losses) recognized in aircraft
fuel expense ............................................. $ (3) $(120) $ 48
Hedge ineffectiveness gains (losses) recognized in other income
(expense) .............................................. (2) 1 —
Gains (losses) of derivatives not qualifying for hedge accounting
recognized in other income (expense) ......................... — (1) 4
Hedge gains (losses) of derivatives recognized in comprehensive income,
(see Note 15) ........................................... 11 17 (104)
Percentage of actual consumption economically hedged ............. 51% 23% 38%
Interest rate derivatives
Hedge gains (losses) of derivatives recognized in comprehensive income,
(see Note 15) ........................................... (21) (5) (10)
(1) Gross liability, prior to impact of collateral posted.
Note 14—Fair Value
Under the Fair Value Measurements and Disclosures topic of the Codification, disclosures are required
about how fair value is determined for assets and liabilities and a hierarchy for which these assets and
liabilities must be grouped is established, based on significant levels of inputs as follows:
Level 1 quoted prices in active markets for identical assets or liabilities;
Level 2 quoted prices in active markets for similar assets and liabilities and inputs that are
observable for the asset or liability; or
Level 3 unobservable inputs for the asset or liability, such as discounted cash flow models
or valuations.
The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level
of input that is significant to the fair value measurement. The following is a listing of our assets and liabilities
73