XML 80 R32.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Tables)
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Schedule of debt
Long-term debt and finance lease obligations and the related weighted average interest rate at December 31, 2019 and 2018 consisted of the following (in millions):
 
 
December 31, 2019
 
December 31, 2018
Secured Debt
 
 
 
 
 
 
 
 
Floating rate equipment notes, due through 2028(1)
 
$
201

 
4.3
%
 
$
247

 
4.9
%
Fixed rate enhanced equipment notes, due through 2023(2)
 
134

 
4.5
%
 
152

 
4.5
%
Fixed rate enhanced equipment notes:(3)
 
 
 
 
 
 
 
 
Series AA, due through 2032
 
589

 
2.8
%
 
—

 
—
%
Series A, due through 2028
 
183

 
3.0
%
 
—

 
—
%
Fixed rate equipment notes, due through 2028(4)
 
1,113

 
4.2
%
 
1,131

 
4.7
%
Fixed rate specialty bonds, due through 2036(5)
 
43

 
4.9
%
 
43

 
4.9
%
Finance Leases(6)
 
89

 
4.8
%
 
107

 
4.7
%
Total debt and finance lease obligations
 
2,352

 
 
 
1,680

 
 
Less: Current maturities
 
(344
)
 
 
 
(309
)
 
 
Less: Debt acquisition cost
 
(18
)
 
 
 
(10
)
 
 
Long-term debt and finance lease obligations
 
$
1,990

 
 
 
$
1,361

 
 

(1)Interest rates adjust quarterly or semi-annually based on LIBOR, plus a margin. In 2018, we issued $120 million in floating rate equipment notes due through 2028, which are secured by six Airbus A320 aircraft and one Airbus A321 aircraft.
(2)In March 2014, we completed a private placement of $226 million in pass-through certificates, Series 2013-1. The certificates were issued by a pass-through trust and are not obligations of JetBlue. The proceeds from the issuance of the pass-through certificates were used to purchase equipment notes issued by JetBlue and secured by 14 of our aircraft. Principal and interest are payable semi-annually.
(3)In November 2019, we completed a public placement of equipment notes in an aggregate principal amount of $772 million secured by 25 Airbus A321 aircraft. The equipment notes were issued in two series: (i) Series AA, bearing interest at the rate of 2.75% per annum in the aggregate principal amount equal to $589 million, and (ii) Series A, bearing interest at the rate of 2.95% per annum in the aggregate principal amount equal to $183 million. Principal and interest are payable semi-annually.
(4)In 2019, we issued $219 million in fixed rate equipment notes due through 2027, which are secured by 10 Airbus A320 aircraft and two Airbus A321 aircraft. In 2018, we issued $567 million in fixed rate equipment notes due through 2028, which are secured by 14 Airbus A320 aircraft and 10 Airbus A321 aircraft.
(5)    In November 2005, the Greater Orlando Aviation Authority, or GOAA, issued special purpose airport facilities revenue bonds to JetBlue as reimbursement for certain airport facility construction and other costs. In April 2013, GOAA issued $42 million in special purpose airport facility revenue bonds to refund the bonds issued in 2005. The proceeds from the refunded bonds were loaned to us and we recorded the issuance of $43 million, net of $1 million premium, as long-term debt on our consolidated balance sheets.
(6) As of December 31, 2019 and 2018, four finance leased Airbus A320 aircraft and two finance leased Airbus A321 aircraft were included in property and equipment at a cost of $250 million and $253 million, respectively, with accumulated amortization of $80 million and $72 million, respectively. The future minimum lease payments under these non-cancelable leases are $35 million in 2020, $39 million in 2021, $9 million in 2022, $9 million in 2023, $5 million in 2024 and no payments in the years thereafter. Included in the future minimum lease payments is $8 million representing interest, resulting in a present value of finance leases of $89 million with a current portion of $31 million and a long-term portion of $58 million.
Schedule of maturities of long-term debt
Maturities of our debt and finance leases, net of debt acquisition costs, for the next five years are as follows (in millions):
 
 
Maturities
2020
 
$
341

2021
 
340

2022
 
319

2023
 
298

2024
 
169

Thereafter
 
867
Carrying amounts and estimated fair values of long-term debt
The carrying amounts and estimated fair values of our long-term debt, net of debt acquisition costs, at December 31, 2019 and 2018 were as follows (in millions):
 
 
December 31, 2019
 
December 31, 2018
 
 
Carrying Value
 
Estimated Fair Value
 
Carrying Value
 
Estimated Fair Value
Public Debt
 
 
 
 
 
 
 
 
Fixed rate special facility bonds, due through 2036
 
$
42

 
$
46

 
$
42

 
$
44

Fixed rate enhanced equipment notes:
 
 
 
 
 
 
 
 
Series AA, due through 2032
 
581

 
586

 
—

 
—

Series A, due through 2028
 
181

 
186

 
—

 
—

Non-Public Debt
 
 
 
 
 
 
 
 
Fixed rate enhanced equipment notes, due through 2023
 
133

 
141

 
151

 
153

Floating rate equipment notes, due through 2028
 
201

 
207

 
245

 
245

Fixed rate equipment notes, due through 2028
 
1,107

 
1,201

 
1,125

 
1,135

Total(1)
 
$
2,245

 
$
2,367

 
$
1,563

 
$
1,577

(1) Total excludes finance lease obligations of $89 million and $107 million at December 31, 2019 and 2018, respectively.