JetBlue Airlines 2009 Annual Report Download - page 67

During 2008, approximately $76 million principal amount of the 5.5% Debentures were voluntarily
converted by holders. As a result, we issued 16.9 million shares of our common stock. Cash payments
from the escrow accounts related to these conversions were $11 million and borrowed shares equivalent to
the number of shares of our common stock issued upon these conversions were returned to us pursuant to
the share lending agreement described above. During 2009, approximately $3 million principal amount of
the 5.5% Debentures were voluntarily converted by holders into approximately 0.6 million shares of our
common stock. The borrower returned 10.0 million shares to us in September 2009, almost all of which
were voluntarily returned shares in excess of converted shares, pursuant to the share lending agreement. At
December 31, 2009, the remaining principal balance was $123 million, which is currently convertible into
27.4 million shares of our common stock. At December 31, 2009, the amount remaining in the escrow
accounts was $10 million, which is reflected as restricted cash on our consolidated balance sheets.
(9) At December 31, 2009 and 2008, four capital leased Airbus A320 aircraft are included in property and
equipment at a cost of $152 million with accumulated amortization of $13 million and $9 million,
respectively. The future minimum lease payments under these noncancelable leases are $15 million per
year through 2011, $14 million per year in 2012, 2013 and 2014 and $124 million in the years thereafter.
Included in the future minimum lease payments is $61 million representing interest, resulting in a present
value of capital leases of $135 million with a current portion of $7 million and a long-term portion of
$128 million.
Maturities of long-term debt and capital leases, including the assumption that our convertible debt will be
converted upon the first put date, for the next five years are as follows (in millions):
2010 ............................................. $384
2011 ............................................. 175
2012 ............................................. 176
2013 ............................................. 375
2014 ............................................. 594
We had utilized a funding facility to finance aircraft predelivery deposits. This facility allowed for
borrowings of up to $30 million. In October 2009, we repaid the balance of $10 million and terminated the
funding facility. At December 31, 2008, the outstanding balance was $10 million and the weighted average
interest rate on the outstanding short-term borrowings was 5.6%.
In July 2008, we obtained a line of credit with Citigroup Global Markets, Inc. which allowed for
borrowings of up to $110 million through July 20, 2009 and was originally secured by our ARS which were
then held by Citigroup. We repaid the entire $110 million on this line of credit in October 2009 when we sold
the ARS which secured it and concurrently terminated the facility. See Note 14 for further information.
We do not have any financial covenants associated with our debt agreements. We are subject to certain
collateral ratio requirements in our spare parts pass-through certificates and spare engine financing issued in
November 2006 and December 2007, respectively. If we fail to maintain these collateral ratios, we will be
required to provide additional collateral or redeem some or all of the equipment notes so that the ratios return
to compliance.
Aircraft, engines, predelivery deposits and other equipment and facilities having a net book value of
$3.62 billion at December 31, 2009 were pledged as security under various loan agreements. Cash payments
of interest, net of capitalized interest, aggregated $143 million, $166 million and $175 million in 2009, 2008
and 2007, respectively.
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