JetBlue Airlines 2009 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2009 JetBlue Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 118

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118

amount of collateral posted, if any, is periodically adjusted based on the fair value of the hedge contracts. Our
policy is to offset the liabilities represented by these contracts with any cash collateral paid to the
counterparties. The table below reflects a summary of our collateral balances (in millions):
2009 2008
As of December 31,
Fuel derivatives
Cash collateral posted to counterparty offsetting hedge liability in other
current liabilities .......................................... $— $117
Cash collateral posted for settled fuel contracts in current liabilities ...... — 21
Interest rate derivatives
Cash collateral posted to counterparty offsetting hedge liability in other
current liabilities .......................................... $17 $ 11
The table below reflects quantitative information related to our derivative instruments and where these
amounts are recorded in our financial statements. The fair value of those contracts not designated as cash flow
hedges was not material at either December 31, 2009 or 2008 (dollar amounts in millions).
2009 2008
As of December 31,
Fuel derivatives
Asset fair value recorded in prepaid expenses and other ................... $ 25 $ —
Asset fair value recorded in other long term assets ...................... 3 —
Liability fair value recorded in other current liabilities (1) ................. — 35
Liability fair value of de-designated hedges recorded in other current
liabilities (1)(2)............................................... — 93
Longest remaining term (months) ................................... 18 12
Hedged volume (barrels, in thousands) . .............................. 5,070 870
Estimated amount of existing gains (losses) expected to be reclassified into
earnings in the next 12 months ................................... 12 (128)
Interest rate derivatives
Liability fair value recorded in other long term liabilities (1) ............... 10 10
Estimated amount of existing gains (losses) expected to be reclassified into
earnings in the next 12 months ................................... (8) (4)
2009 2008 2007
Fuel derivatives
Hedge effectiveness gains (losses) recognized in aircraft fuel expense . . . $(120) $ 48 $35
Hedge ineffectiveness gains (losses) recognized in other income
(expense) .............................................. 1 — 5
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) ........................................... 17 (104) 77
Percentage of actual consumption economically hedged . ............. 23% 38% 59%
Interest rate derivatives
Hedge gains (losses) of derivatives recognized in comprehensive income,
(see Note 15) ........................................... (5) (10) —
(1) Gross liability, prior to impact of collateral posted.
72