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JETBLUE AIRWAYS CORPORATION-2014Annual Report30
PART II
ITEM7Management’s Discussion and Analysis of Financial Condition and Results of Operations
Net Income and Pre-Tax Income, excluding special items (Non-GAAP)
We exclude special items from net income and pre-tax income as we believe the exclusion of these items is helpful to investors to evaluate JetBlue’s
recurring core operational performance in the periods shown. Therefore, we adjust for these amounts. Special items excluded in the tables below
showing the reconciliation of net income and pre-tax income include the gain on the sale of JetBlue’s wholly-owned subsidiary LiveTV due to the non-
recurring nature of this item.
Reconciliation of Net Income, Income before Income Taxes and EPS excluding Special Items
(in millions, except per share amounts)
Twelve Months Ended December 31,
2014 2013
Income before income taxes $ 623 $ 279
Less: Gain on sale of subsidiary 241 —
Income before income taxes excluding special items 382 279
Less: Income tax expense 222 111
Add back: Income tax relating to gain on sale of subsidiary(a) 72 —
Net Income excluding special items $ 232 $ 168
Basic:
Earnings per common share $ 1.36 $ 0.59
Less: Special items, net of tax $ 0.57 $ —
Earnings per common share excluding special items $ 0.79 $ 0.59
Diluted:
Earnings per common share $ 1.19 $ 0.52
Less: Special items, net of tax $ 0.49 $ —
Earnings per common share excluding special items $ 0.70 $ 0.52
(a) The capital gain generated from the sale of LiveTV allowed JetBlue to utilize a capital loss carryforward which resulted in the release of a valuation allowance related to the capital loss
deferred tax asset of $19 million.