JetBlue Airlines 2009 Annual Report Download - page 86

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Note 17—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
2009 (1)
Operating revenues ...................................... $ 793 $ 807 $ 854 $ 832
Operating income (loss)................................... 73 76 66 64
Net income (loss) ....................................... 12 20 15 11
Basic earnings (loss) per share .............................. $0.05 $ 0.08 $ 0.05 $ 0.04
Diluted earnings (loss) per share ............................ $0.05 $ 0.07 $ 0.05 $ 0.04
2008 (2)
Operating revenues ...................................... $ 816 $ 859 $ 902 $ 811
Operating income (loss)................................... 17 21 22 49
Net income (loss) ....................................... (10) (9) (8) (58)
Basic earnings (loss) per share .............................. $(0.05) $(0.04) $(0.03) $(0.25)
Diluted earnings (loss) per share ............................ $(0.05) $(0.04) $(0.03) $(0.25)
(1) During the first, second, and third quarters of 2009, we recorded a net $8 million loss, $6 million gain,
and $3 million gain, in other-than temporary impairment adjustments related to the value of our auction
rate securities, respectively. During the first quarter of 2009, we sold two aircraft, which resulted in a gain
of $1 million. During the second quarter of 2009, we recorded $11 million in certain tax incentives.
During the fourth quarter of 2009, we recorded $5 million of revenue related to our co-branded credit card
agreement guarantee and an additional $5 million in revenue related to points expiration as a result of
TrueBlue program changes.
(2) During the second, third and fourth quarters of 2008, we sold a total of nine aircraft, which resulted in
gains of $13 million, $2 million and $8 million, respectively. During the second quarter of 2008, we
recorded $6 million in certain tax incentives. 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 holding loss of $53 million related to the valuation of our auction rate securities as
described more fully in Note 14.
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.
Note 18—Subsequent Events
On January 29, 2010 we began the implementation of a new integrated customer service system, which
includes a reservations system, website, revenue management system, revenue accounting system, and a
customer loyalty management system among others. The integrated system, when fully implemented, will
increase our capabilities including growing our current business, providing for more commercial partnerships
and allowing us to attract more business customers. In an effort to minimize the disruption to our customers,
we reduced our flight schedule in the days during the initial implementation. While the initial launch of these
systems has been successful, we may experience higher levels of customer disruptions as we begin to operate
during more peak travel periods. It is not uncommon for integrated systems implementation of this magnitude
to affect service levels for weeks or even months following the initial implementation. Additionally, system
deficiencies or shortcomings may be discovered when we utilize these new systems to perform our financial
and accounting close processes for the first time.
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