Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document And Entity Information [Abstract] | ' |
Entity Registrant Name | 'JETBLUE AIRWAYS CORP |
Entity Central Index Key | '0001158463 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Document Type | '10-Q |
Document Period End Date | 31-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 296,790,736 |
Entity Well-known Seasoned Issuer | 'Yes |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $501 | $225 |
Investment securities | 270 | 402 |
Receivables, less allowance (2014-$6; 2013-$6) | 133 | 129 |
Prepaid expenses and other | 452 | 300 |
Total current assets | 1,356 | 1,056 |
PROPERTY AND EQUIPMENT | ' | ' |
Flight equipment | 5,752 | 5,778 |
Predelivery deposits for flight equipment | 197 | 181 |
Flight Equipment, gross plus deposits | 5,949 | 5,959 |
Less accumulated depreciation | 1,203 | 1,185 |
Flight Equipment, Net | 4,746 | 4,774 |
Other property and equipment | 717 | 688 |
Less accumulated depreciation | 250 | 251 |
Property plant and equipment other net | 467 | 437 |
Assets constructed for others | 561 | 561 |
Less accumulated depreciation | 122 | 116 |
Asset constructed for others net | 439 | 445 |
Total property and equipment | 5,652 | 5,656 |
OTHER ASSETS | ' | ' |
Investment securities | 97 | 114 |
Restricted cash | 60 | 57 |
Other | 480 | 467 |
Total other assets | 637 | 638 |
TOTAL ASSETS | 7,645 | 7,350 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 188 | 180 |
Air traffic liability | 1,007 | 825 |
Accrued salaries, wages and benefits | 164 | 171 |
Other accrued liabilities | 309 | 229 |
Current maturities of long-term debt and capital leases | 307 | 469 |
Total current liabilities | 1,975 | 1,874 |
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS | 2,332 | 2,116 |
CONSTRUCTION OBLIGATION | 498 | 501 |
DEFERRED TAXES AND OTHER LIABILITIES | ' | ' |
Deferred income taxes | 607 | 605 |
Other | 97 | 120 |
Total deferred taxes and other liabilities | 704 | 725 |
STOCKHOLDERS’ EQUITY | ' | ' |
Preferred stock, $0.01 par value; 25,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value; 900,000,000 shares authorized, 348,509,630 and 346,489,574 shares issued and 296,790,736 and 295,587,126 shares outstanding at March 31, 2014 and December 31, 2013, respectively | 3 | 3 |
Treasury stock, at cost; 51,719,505 and 50,902,448 shares at March 31, 2014 and December 31, 2013, respectively | -50 | -43 |
Additional paid-in capital | 1,580 | 1,573 |
Retained earnings | 605 | 601 |
Accumulated other comprehensive loss | -2 | 0 |
Total stockholders’ equity | 2,136 | 2,134 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $7,645 | $7,350 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts receivable | $6 | $6 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 348,509,630 | 346,489,574 |
Common stock, shares, outstanding | 296,790,736 | 295,587,126 |
Treasury stock, shares | 51,719,505 | 50,902,448 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
OPERATING REVENUES | ' | ' |
Passenger | $1,230 | $1,186 |
Other | 119 | 113 |
Total operating revenues | 1,349 | 1,299 |
OPERATING EXPENSES | ' | ' |
Aircraft fuel and related taxes | 464 | 467 |
Salaries, wages and benefits | 329 | 280 |
Landing fees and other rents | 77 | 70 |
Depreciation and amortization | 78 | 68 |
Aircraft rent | 31 | 32 |
Sales and marketing | 54 | 50 |
Maintenance materials and repairs | 94 | 114 |
Other operating expenses | 181 | 159 |
Total operating expenses | 1,308 | 1,240 |
OPERATING INCOME | 41 | 59 |
OTHER INCOME (EXPENSE) | ' | ' |
Interest expense | -37 | -41 |
Capitalized interest | 3 | 3 |
Interest income (expense) and other | -1 | 2 |
Total other income (expense) | -35 | -36 |
INCOME BEFORE INCOME TAXES | 6 | 23 |
Income tax expense | 2 | 9 |
NET INCOME | $4 | $14 |
EARNINGS PER COMMON SHARE: | ' | ' |
Earnings Per Share, Basic | $0.01 | $0.05 |
Earnings Per Share, Diluted | $0.01 | $0.05 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
NET INCOME | $4 | $14 |
Changes in fair value of derivative instruments, net of reclassifications into earnings (net of $(1) and $0 of taxes in 2014 and 2013, respectively) | -2 | 0 |
Total other comprehensive loss | -2 | 0 |
COMPREHENSIVE INCOME | $2 | $14 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net of $(1) and $0 of taxes in 2014 and 2013 | ($1) | $0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $4 | $14 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Deferred income taxes | 2 | 9 |
Depreciation | 68 | 61 |
Amortization | 14 | 11 |
Stock-based compensation | 7 | 3 |
Collateral returned for derivative instruments | 0 | 3 |
Changes in certain operating assets and liabilities | 213 | 106 |
Other, net | 14 | -2 |
Net cash provided by operating activities | 322 | 205 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -158 | -74 |
Predelivery deposits for flight equipment | -32 | -9 |
Purchase of intangible assets | -75 | 0 |
Purchase of held-to-maturity investments | -66 | -69 |
Proceeds from the maturities of held-to-maturity investments | 104 | 116 |
Purchase of available-for-sale securities | -200 | -119 |
Proceeds from the sale of available-for-sale securities | 308 | 154 |
Other, net | -2 | -1 |
Net cash used in investing activities | -46 | -2 |
Proceeds from: | ' | ' |
Issuance of long-term debt | 248 | 24 |
Short-term borrowings and lines of credit | 0 | 190 |
Repayment of long-term debt and capital lease obligations | -237 | -52 |
Repayment of short-term borrowings and lines of credit | 0 | -190 |
Other, net | -11 | -11 |
Net cash provided by (used in) financing activities | 0 | -39 |
INCREASE IN CASH AND CASH EQUIVALENTS | 276 | 164 |
Cash and cash equivalents at beginning of period | 225 | 182 |
Cash and cash equivalents at end of period | $501 | $346 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Basis of Presentation | ||||||||
JetBlue predominately provides air transportation services across the United States, the Caribbean and Latin America. Our condensed consolidated financial statements include the accounts of JetBlue Airways Corporation, or JetBlue, and our subsidiaries, collectively referred to as “we” or the “Company”. All majority-owned subsidiaries are consolidated on a line by line basis, with all intercompany transactions and balances having been eliminated. These condensed consolidated financial statements and related notes should be read in conjunction with our 2013 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013, or our 2013 Form 10-K. | ||||||||
These condensed consolidated financial statements are unaudited and have been prepared by us following the rules and regulations of the Securities and Exchange Commission, or the SEC. In our opinion they reflect all adjustments, including normal recurring items, that are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been condensed or omitted as permitted by such rules and regulations; however, we believe that the disclosures are adequate to make the information presented not misleading. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for the entire year. | ||||||||
Investment securities | ||||||||
Investment securities consist of available-for-sale investment securities and held-to-maturity investment securities. When sold, we use a specific identification method to determine the cost of the securities. | ||||||||
Held-to-maturity investment securities. The contractual maturities of the corporate bonds we held as of March 31, 2014 were not greater than 24 months. We did not record any significant gains or losses on these securities during the three months ended March 31, 2014 or 2013. The estimated fair value of these investments approximated their carrying value as of March 31, 2014 and December 31, 2013, respectively. | ||||||||
The carrying values of investment securities consisted of the following at March 31, 2014 and December 31, 2013 (in millions): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(unaudited) | ||||||||
Available-for-sale securities | ||||||||
Time deposits | $ | 45 | $ | 70 | ||||
Commercial paper | 35 | 118 | ||||||
80 | 188 | |||||||
Held-to-maturity securities | ||||||||
Corporate bonds | 234 | 275 | ||||||
Time deposits | 53 | 53 | ||||||
287 | 328 | |||||||
Total | $ | 367 | $ | 516 | ||||
Intangible Assets | ||||||||
Our intangible assets consist primarily of acquired take-off and landing slots, or Slots, at certain domestic airports. Slots are the rights to take-off or land at a specific airport during a specific time period of the day and are a means by which airport capacity and congestion can be managed. We account for Slots at High Density airports, including Reagan National Airport in Washington, D.C. and LaGuardia and JFK Airports in New York City as indefinite life intangible assets which results in no amortization expense, while Slots at other airports are amortized on a straight-line basis over their expected useful lives, up to 15 years. As of December 31, 2013, we changed our estimated lives for Slots at High Density Airports from 15 years to indefinite life. We incurred amortization expense of $1 million and $5 million related to Slots at High Density Airports for the three months ended March 31, 2013 and the 12 months ended December 31, 2013, respectively. | ||||||||
In March 2014, we completed the purchase of 24 Slots at Reagan National Airport for $75 million. We plan to begin using these Slots in the second half of 2014. Consistent with our accounting treatment for Slots at all High Density Airports, we have assigned these assets an indefinite life. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
SHARE-BASED COMPENSATION | |
During the three months ended March 31, 2014, 2.0 million restricted stock units vested and 1.9 million restricted stock units were granted under the 2011 Incentive Compensation Plan and the Amended and Restated 2002 Stock Incentive Plan |
Longterm_Debt_Shortterm_Borrow
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations | ' | ||||||||||||||||
LONG TERM DEBT, SHORT TERM BORROWINGS, AND CAPITAL LEASE OBLIGATIONS | |||||||||||||||||
In March 2014, we completed a private placement of $226 million in pass-through certificates, Series 2013-1. The certificates, which were issued by a pass-through trust, 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 previously unencumbered aircraft. Principal and interest are payable semiannually, starting in September 2014. Separately, we also issued $22 million in fixed rate notes secured by one aircraft. | |||||||||||||||||
During the three months ended March 31, 2014, we made scheduled principal payments of $237 million, including the final payment on the Series 2004-1 EETC of $188 million. As a result, 13 aircraft became unencumbered. | |||||||||||||||||
During the three months ended March 31, 2014, we took delivery of one new aircraft that was financed with a capital lease payable through 2024. This transaction resulted in $38 million of net non-cash financing. | |||||||||||||||||
Aircraft, engines, other equipment and facilities with a net book value of $3.71 billion at March 31, 2014 have been pledged as security under various loan agreements. As of March 31, 2014, we owned, free of encumbrance, 20 Airbus A320 aircraft, one EMBRAER 190 aircraft, and 30 spare engines. At March 31, 2014, the weighted average interest rate of all of our long-term debt and capital lease obligations was 4.5% and scheduled maturities were $248 million for the remainder of 2014, $298 million in 2015, $492 million in 2016, $226 million in 2017, $269 million in 2018 and $1.10 billion thereafter. | |||||||||||||||||
The carrying amounts and estimated fair values of our long-term debt at March 31, 2014 and December 31, 2013 were as follows (in millions): | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
Public Debt | |||||||||||||||||
Floating rate enhanced equipment notes: | |||||||||||||||||
Class G-1, due through 2016 | $ | 53 | $ | 51 | $ | 55 | $ | 54 | |||||||||
Class G-2, due 2014 and 2016 | 185 | 181 | 373 | 365 | |||||||||||||
Fixed rate special facility bonds, due through 2036 | 78 | 74 | 78 | 68 | |||||||||||||
6.75% convertible debentures due in 2039 | 162 | 303 | 162 | 297 | |||||||||||||
5.5% convertible debentures due in 2038 | 68 | 137 | 68 | 134 | |||||||||||||
Non-Public Debt | |||||||||||||||||
Fixed rate enhanced equipment notes, due through 2022 | $ | 226 | $ | 224 | $ | — | $ | — | |||||||||
Floating rate equipment notes, due through 2025 | 617 | 627 | 634 | 645 | |||||||||||||
Fixed rate equipment notes, due through 2026 | 1,107 | 1,170 | 1,110 | 1,161 | |||||||||||||
Total | $ | 2,496 | $ | 2,767 | $ | 2,480 | $ | 2,724 | |||||||||
The estimated fair values of our publicly held long-term debt are classified as Level 2 in the fair value hierarchy. The fair values of our enhanced equipment notes and our special facility bonds were based on quoted market prices in markets with low trading volumes. The fair value of our convertible debentures was based upon other observable market inputs since they are not actively traded. The fair value of our non-public debt was estimated using a discounted cash flow analysis based on our borrowing rates for instruments with similar terms and therefore classified as Level 3 in the fair value hierarchy. The fair values of our other financial instruments approximate their carrying values. | |||||||||||||||||
We have financed certain aircraft with enhanced equipment trust certificates, or EETCs, primarily for the purpose of being able to finance several aircraft at the one time, rather than separately. The structure of our EETC financing is that we create pass-through trusts in order to issue pass-through certificates. The proceeds from the issuance of these certificates are then used to purchase equipment notes which are issued by us and are secured by our aircraft. These trusts meet the definition of a variable interest entity, or VIE, as defined in the Consolidations topic of the Codification and must be considered for consolidation in our condensed consolidated financial statements. Our assessment of the EETCs considers both quantitative and qualitative factors including the purpose for which these trusts were established and the nature of the risks in each. The main purpose of the trust structure is to enhance the credit worthiness of our debt obligation through certain bankruptcy protection provisions, liquidity facilities and lower our total borrowing cost. We concluded that we are not the primary beneficiary in these trusts due to our involvement in them being limited to principal and interest payments on the related notes, the trusts were not set up to pass along variability created by credit risk to us and the likelihood of our defaulting on the notes. Therefore, we have not consolidated these trusts in our condensed consolidated financial statements. |
Comprehensive_Income
Comprehensive Income | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
Comprehensive income (loss) includes changes in fair value of our aircraft fuel derivatives and interest rate swap agreements, which qualify for hedge accounting. A rollforward of the amounts included in the accumulated other comprehensive income (loss), net of taxes for the three months ended March 31, 2014 and March 31, 2013 are as follows (in millions, unaudited): | ||||||||||||
Aircraft Fuel | Interest Rate | Total | ||||||||||
Derivatives (1) | Swaps (2) | |||||||||||
Beginning accumulated gains (losses) at December 31, 2013 | $ | 1 | $ | (1 | ) | $ | — | |||||
Reclassifications into earnings (net of $0 of taxes) | 1 | — | 1 | |||||||||
Change in fair value (net of $(1) of taxes) | (3 | ) | — | (3 | ) | |||||||
Ending accumulated losses at March 31, 2014 | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) | |||
Aircraft Fuel | Interest Rate | Total | ||||||||||
Derivatives (1) | Swaps (2) | |||||||||||
Beginning accumulated losses at December 31, 2012 | $ | (1 | ) | $ | (7 | ) | (8 | ) | ||||
Reclassifications into earnings (net of $1 of taxes) | — | 2 | 2 | |||||||||
Change in fair value (net of $(1) of taxes) | (2 | ) | — | (2 | ) | |||||||
Ending accumulated losses at March 31, 2013 | $ | (3 | ) | $ | (5 | ) | (8 | ) | ||||
__________________________ | ||||||||||||
(1) Reclassified to aircraft fuel expense | ||||||||||||
(2) Reclassified to interest expense |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share | ' | |||||||
EARNINGS PER SHARE | ||||||||
The following table shows how we computed basic and diluted earnings per common share (in millions, share amounts in thousands, unaudited): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net income | $ | 4 | $ | 14 | ||||
Effect of dilutive securities: | ||||||||
Interest on convertible debt, net of income taxes and profit sharing | — | 1 | ||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ | 4 | $ | 15 | ||||
Denominator: | ||||||||
Weighted average shares outstanding for basic earnings per share | 294,826 | 279,768 | ||||||
Effect of dilutive securities: | ||||||||
Employee stock options | 2,387 | 1,662 | ||||||
Convertible debt | — | 27,428 | ||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 297,213 | 308,858 | ||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Shares excluded from EPS calculation (in millions): | ||||||||
Shares issuable upon conversion of our convertible debt as assumed conversion would be antidilutive | 48.4 | 33.1 | ||||||
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | 11.9 | 17.5 | ||||||
As of March 31, 2014, a total of approximately 1.4 million shares of our common stock, which were lent to our share borrower pursuant to the terms of our share lending agreement as described more fully in Note 2 to our 2013 Form 10-K, were issued and outstanding for corporate law purposes. Holders of the borrowed shares have all the rights of a holder of our common stock. However, because the share borrower must return all borrowed shares to us (or identical shares or, in certain circumstances of default by the counterparty, the cash value thereof), the borrowed shares are not considered outstanding for the purpose of computing and reporting basic or diluted earnings per share. The fair value of similar common shares not subject to our share lending arrangement, based upon our closing stock price at March 31, 2014, was approximately $12 million. | ||||||||
In March 2014, JetBlue executed an agreement for the repurchase of up to 45,000 shares per day, structured pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934 as amended, with a maximum of eight million shares to be repurchased for the year. The share repurchases commenced April 8, 2014 and will terminate no later than December 31. 2014. We may adjust or change our repurchases practice based on market conditions and other alternatives. |
Employee_Retirement_Plan
Employee Retirement Plan | 3 Months Ended |
Mar. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Retirement Plan | ' |
EMPLOYEE RETIREMENT PLAN | |
We sponsor a retirement savings 401(k) defined contribution plan, or the Plan, covering all of our employees where we match employee contributions of up to 5% of eligible wages. Our non-management employees receive a discretionary contribution of 5% of eligible wages, which we refer to as Retirement Plus. They are also eligible to receive profit sharing, calculated as 15% of adjusted pre-tax income and reduced by the Retirement Plus contributions. Certain FAA-licensed employees receive an additional contribution of 3% of eligible compensation, which we refer to as Retirement Advantage. Total 401(k) company match, Retirement Plus, profit sharing, and Retirement Advantage expensed for the three months ended March 31, 2014 and 2013 was $24 million and $20 million, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
As of March 31, 2014, our firm aircraft orders consisted of three Airbus A320 aircraft, 48 Airbus A321 aircraft, 30 Airbus A320 new engine option (A320neo) aircraft, 30 Airbus A321neo aircraft, 24 EMBRAER 190 aircraft and 10 spare engines scheduled for delivery through 2022. Committed expenditures for these aircraft and related flight equipment, including estimated amounts for contractual price escalations and predelivery deposits, will be approximately $430 million for the remainder of 2014, $660 million in 2015, $785 million in 2016, $835 million in 2017, $855 million in 2018 and $3.2 billion thereafter. We are scheduled to receive eight new Airbus A321 aircraft during the remainder of 2014, three of which have committed financing. We plan to purchase the remaining 2014 scheduled deliveries with cash. | |
Our aircraft lease agreements contain termination provisions which include standard maintenance and return conditions. Our policy is to record these lease return conditions when they are probable and the costs can be estimated. | |
Our commitments also include those of LiveTV, which has several noncancelable long-term purchase agreements with various suppliers to provide equipment to be installed on its customers’ aircraft, including JetBlue’s aircraft. As of March 31, 2014, committed expenditures to these suppliers were approximately $50 million for the remainder of 2014, $6 million in 2015 and $2 million in each of the years of 2016 through 2018. Separately, JetBlue has an agreement with ViaSat Inc. through 2020 relating to in-flight broadband connectivity technology on our aircraft. The agreement stipulates a $20 million minimum commitment for the connectivity service and a $25 million minimum commitment for the related hardware and software purchases. As part of the sale of LiveTV, refer to Note 10, these commitments to ViaSat Inc. will be assigned to LiveTV and we will have a new seven year in-flight entertainment and connectivity commitment to LiveTV. | |
In 2012 we commenced construction on T5i, an expansion to T5 that we intend to use as an international arrival facility. An amendment of the original T5 lease was executed in 2013 to include this expansion. JetBlue is self-funding the estimated $175 million construction cost of this facility, which is expected to be completed in late 2014. Through March 31, 2014, total costs incurred for the T5i Project were $112 million. | |
As of March 31, 2014, we had approximately $33 million in assets that serve as collateral for letters of credit related to a certain number of our leases. These are included in restricted cash and expire at the end of the related lease terms. Additionally, we had approximately $25 million pledged related to our workers compensation insurance policies and other business partner agreements, which will expire according to the terms of the related policies or agreements. | |
Environmental Liability | |
In 2012, during performance of required environmental testing, the presence of light non-aqueous phase petroleum liquid was discovered in certain subsurface monitoring wells on the property at JFK. Our lease with the Port Authority of New York and New Jersey, or PANYNJ, provides that under certain circumstances we may be responsible for investigating, delineating, and remediating such subsurface contamination, even if we are not necessarily the party that caused its release. We engaged environmental consultants to assess the extent of the contamination and assist us in determining steps to remediate it. A preliminary estimate indicated costs of remediation could range from $1 million up to approximately $3 million. As of March 31, 2014, we have accrued $2 million for current estimates of remediation costs, which is included in current liabilities on our condensed consolidated balance sheets. However, as with any environmental contamination, there is the possibility this contamination could be more extensive than estimated at this stage. We have a pollution insurance policy that protects us against these types of environmental liabilities, which we expect to mitigate some of our exposure in this matter. | |
Based upon information currently known to us, we do not expect these environmental proceedings to have a material adverse effect on our condensed consolidated balance sheets, results of operations, or cash flows. However, it is not possible to predict with certainty the impact on us of future environmental compliance requirements or the costs of resolving the matter, in part because the scope of the remediation that may be required is not certain and environmental laws and regulations are subject to modification and changes in interpretation. | |
Legal Matters | |
Occasionally, we are involved in various claims, lawsuits, regulatory examinations, investigations and other legal matters arising, for the most part, in the ordinary course of business. The outcome of litigation and other legal matters is always uncertain. The Company believes it has valid defenses to the legal matters currently pending against it, is defending itself vigorously and has recorded accruals determined in accordance with U.S. GAAP, where appropriate. In making a determination regarding accruals, using available information, we evaluate the likelihood of an unfavorable outcome in legal or regulatory proceedings to which we are a party and record a loss contingency when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. These subjective determinations are based on the status of such legal or regulatory proceedings, the merits of our defenses and consultation with legal counsel. Actual outcomes of these legal and regulatory proceedings may materially differ from our current estimates. It is possible that resolution of one or more of the legal matters currently pending or threatened could result in losses material to our consolidated results of operations, liquidity or financial condition. | |
To date, none of these types of litigation matters, most of which are typically covered by insurance, has had a material impact on our operations or financial condition. We have insured and continue to insure against most of these types of claims. A judgment on any claim not covered by, or in excess of, our insurance coverage could materially adversely affect our financial condition or results of operations. | |
Employment Agreement Dispute. In or around March 2010, attorneys representing a group of current and former pilots (the “Claimants”) filed a Request for Mediation with the American Arbitration Association concerning a dispute over the interpretation of a provision of their individual JetBlue Airways Corporation Employment Agreement for Pilots (“Employment Agreement”). In their Fourth Amended Arbitration Demand, dated June 8, 2012, the Claimants (972 pilots) alleged that JetBlue breached the base salary provision of the Employment Agreement and sought back pay and related damages for pay adjustments that occurred in each of 2002, 2007 and 2009. The Claimants also asserted that JetBlue had violated numerous New York state labor laws. In July 2012, in response to JetBlue's partial motion to dismiss, the Claimants withdrew the 2002 claims. Following an arbitration hearing on the remaining claims, in May 2013, the arbitrator issued an interim decision on the contractual provisions of the Employment Agreement. In 2007, all pilots received market rate pay adjustments. The arbitrator determined that a 26.7% base pay rate increase provided to certain pilots during 2007 triggered the base salary provision of the Employment Agreement. The 2009 claims and all New York state labor law claims were dismissed. The parties started the damages phase of the arbitration in June of 2013. Motion practice began in July 2013 and a number of rulings by the arbitrator since that time have significantly limited the number of pilots with valid claims and reduced the scope of damages. In light of those rulings, in April 2014, the Claimants provided their revised calculations, claiming an entitlement to damages of $5 million. We believe that any damages ultimately resulting from this dispute may be nominally different from the amount of damages sought by the Claimants and we have accrued an amount that we believe is probable. Our estimate of reasonably possible losses in excess of the probable loss is not material. However, the outcome of any arbitration is inherently uncertain and any final judgment may differ materially. | |
WestJet Complaint. In December 2013, WestJet, a customer of LiveTV, filed a complaint against LiveTV alleging breach of contract. WestJet has alleged $15 million in damages plus unspecified damages for removing the inflight entertainment systems from its aircraft. In January 2014, LiveTV filed a response to this Complaint and a series of Counterclaims. LiveTV disputes the accuracy and validity of the WestJet claims and to the extent WestJet is able to establish any liability on the part of LiveTV, LiveTV contends that the as-yet unliquidated damages sought by LiveTV in its Counterclaims are likely to exceed any actual damages awarded to WestJet on its Complaint. We believe the Complaint to be without merit and will continue to assert defenses; however, as the case is in its early stages, it is not possible to assess the likelihood of loss. | |
In April 2014, JetBlue pilots elected to be solely represented by the Air Line Pilots Association, or ALPA. The National Mediation Board, or NMB, will issue a certification naming ALPA as the representative body for JetBlue pilots and we will work with ALPA to reach our first collective bargaining agreement. We do not believe that the result of the election will have a material impact on our financial statements. |
Financial_Derivative_Instrumen
Financial Derivative Instruments and Risk Management | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||
Financial Derivative Instruments and Risk Management | ' | |||||||||||||||||||
FINANCIAL DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT | ||||||||||||||||||||
As part of our risk management techniques, we periodically purchase over the counter energy derivative instruments and enter into fixed forward price agreements, or FFPs, to manage our exposure to the effect of changes in the price of aircraft fuel. Prices for the underlying commodities have historically been highly correlated to aircraft fuel, making derivatives of them effective at providing short-term protection against sharp increases in average fuel prices. We also periodically enter into jet fuel basis swaps for the differential between heating oil and jet fuel, to further limit the variability in fuel prices at various locations. | ||||||||||||||||||||
To manage the variability of the cash flows associated with our variable rate debt, we have also entered into interest rate swaps. We do not hold or issue any derivative financial instruments for trading purposes. | ||||||||||||||||||||
Aircraft fuel derivatives | ||||||||||||||||||||
We attempt to obtain cash flow hedge accounting treatment for each aircraft fuel derivative that we enter into. This treatment is provided for under the Derivatives and Hedging topic of the Codification which allows for gains and losses on the effective portion of qualifying hedges to be deferred until the underlying planned jet fuel consumption occurs, rather than recognizing the gains and losses on these instruments into earnings during each period they are outstanding. The effective portion of realized aircraft fuel hedging derivative gains and losses is recognized in aircraft fuel expense in the period during which the underlying fuel is consumed. | ||||||||||||||||||||
Ineffectiveness results, in certain circumstances, when the change in the total fair value of the derivative instrument differs from the change in the value of our expected future cash outlays for the purchase of aircraft fuel and is recognized immediately in interest income and other. Likewise, if a hedge does not qualify for hedge accounting, the periodic changes in its fair value are recognized in the period of the change in interest income and other. When aircraft fuel is consumed and the related derivative contract settles, any gain or loss previously recorded in other comprehensive income is recognized in aircraft fuel expense. All cash flows related to our fuel hedging derivatives are classified as operating cash flows. | ||||||||||||||||||||
Our current approach to fuel hedging is to enter into hedges on a discretionary basis without a specific target of hedge percentage needs. We view our hedge portfolio as a form of insurance to help mitigate the impact of price volatility and protect us against severe spikes in oil prices, when possible. | ||||||||||||||||||||
The following table illustrates the approximate hedged percentages of our projected fuel usage by quarter as of March 31, 2014 related to our outstanding fuel hedging contracts that were designated as cash flow hedges for accounting purposes. | ||||||||||||||||||||
Jet fuel swap | Jet fuel cap | Total | ||||||||||||||||||
agreements | agreements | |||||||||||||||||||
Second Quarter 2014 | 7 | % | 8 | % | 15 | % | ||||||||||||||
Third Quarter 2014 | 12 | % | — | % | 12 | % | ||||||||||||||
Fourth Quarter 2014 | 12 | % | — | % | 12 | % | ||||||||||||||
First Quarter 2015 | 5 | % | — | % | 5 | % | ||||||||||||||
Second Quarter 2015 | 5 | % | — | % | 5 | % | ||||||||||||||
In April 2014, we entered into jet fuel swap transactions representing additional forecasted consumption of 5% in each of the third and fourth quarters of 2014 as well as each quarter in 2015. | ||||||||||||||||||||
Interest rate swaps | ||||||||||||||||||||
The interest rate hedges we had outstanding as of March 31, 2014 effectively swap floating rate debt for fixed rate debt, taking advantage of lower borrowing rates in existence at the time of the hedge transaction as compared to the date our original debt instruments were executed. As of March 31, 2014, we had $53 million in notional debt outstanding related to these swaps, which cover certain interest payments through August 2016. The notional amount decreases over time to match scheduled repayments of the related debt. | ||||||||||||||||||||
All of our outstanding interest rate swap contracts qualify as cash flow hedges in accordance with the Derivatives and Hedging topic of the Codification. Since all of the critical terms of our swap agreements match the debt to which they pertain, there was no ineffectiveness relating to these interest rate swaps in 2014 or 2013, and all related unrealized losses were deferred in accumulated other comprehensive loss. We did not recognize any material additional interest expense in the three months ended March 31, 2014, compared to $3 million in additional interest expense in the three months ended March 31, 2013. | ||||||||||||||||||||
The table below reflects quantitative information related to our derivative instruments and where these amounts are recorded in our financial statements (dollar amounts in millions): | ||||||||||||||||||||
As of | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Fuel derivatives | ||||||||||||||||||||
Asset fair value recorded in prepaid expenses and other (1) | $ | 2 | $ | 6 | ||||||||||||||||
Liability fair value recorded in other accrued liabilities (1) | 1 | — | ||||||||||||||||||
Longest remaining term (months) | 15 | 12 | ||||||||||||||||||
Hedged volume (barrels, in thousands) | 1,869 | 1,320 | ||||||||||||||||||
Estimated amount of existing gains expected to be reclassified into earnings in the next 12 months | $ | 1 | $ | 3 | ||||||||||||||||
Interest rate derivatives | ||||||||||||||||||||
Liability fair value recorded in other long term liabilities (2) | $ | 3 | $ | 3 | ||||||||||||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | (2 | ) | (2 | ) | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||
Fuel derivatives | ||||||||||||||||||||
Hedge effectiveness gains (losses) recognized in aircraft fuel expense | $ | (1 | ) | $ | — | |||||||||||||||
Hedge ineffectiveness losses recognized in other income (expense) | — | — | ||||||||||||||||||
Hedge losses on derivatives recognized in comprehensive income | (4 | ) | (3 | ) | ||||||||||||||||
Percentage of actual consumption economically hedged | 16 | % | 19 | % | ||||||||||||||||
Interest rate derivatives | ||||||||||||||||||||
Hedge gains (losses) on derivatives recognized in comprehensive income | $ | — | $ | — | ||||||||||||||||
Hedge losses on derivatives recognized in interest expense | — | (3 | ) | |||||||||||||||||
____________________________ | ||||||||||||||||||||
-1 | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty. | |||||||||||||||||||
-2 | Gross liability, prior to impact of collateral posted. | |||||||||||||||||||
Any outstanding derivative instrument exposes us to credit loss in connection with our fuel contracts in the event of nonperformance by the counterparties to the agreements, but we do not expect that any of our six counterparties will fail to meet their obligations. The amount of such credit exposure is generally the fair value of our outstanding contracts for which we are in a receivable position. To manage credit risks, we select counterparties based on credit assessments, limit our overall exposure to any single counterparty and monitor the market position with each counterparty. Some of our agreements require cash deposits from either counterparty if market risk exposure exceeds a specified threshold amount. | ||||||||||||||||||||
We have master netting arrangements with our counterparties allowing us the right of offset to mitigate credit risk in derivative transactions. The financial derivative instrument agreements we have with our counterparties may require us to fund all, or a portion of, outstanding loss positions related to these contracts prior to their scheduled maturities. The 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 impact of offsetting derivative instruments is depicted below (in millions): | ||||||||||||||||||||
Gross Amount of Recognized | Gross Amount of Cash Collateral | Net Amount Presented | ||||||||||||||||||
in Balance Sheet | ||||||||||||||||||||
Assets | Liabilities | Offset | Assets | Liabilities | ||||||||||||||||
As of March 31, 2014 (unaudited) | ||||||||||||||||||||
Fuel derivatives | $ | 2 | $ | 1 | $ | — | $ | 2 | $ | 1 | ||||||||||
Interest rate derivatives | — | 3 | 3 | — | — | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Fuel derivatives | $ | 6 | $ | — | $ | — | $ | 6 | $ | — | ||||||||||
Interest rate derivatives | — | 3 | 3 | — | — | |||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
Under the Fair Value Measurements and Disclosures topic of the Codification, disclosures are required about how fair value is determined for assets and liabilities and a hierarchy for which these assets and liabilities must be grouped is established, based on significant levels of inputs as follows: | ||||||||||||||||
Level 1 quoted prices in active markets for identical assets or liabilities; | ||||||||||||||||
Level 2 quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or | ||||||||||||||||
Level 3 unobservable inputs for the asset or liability, such as discounted cash flow models or valuations. | ||||||||||||||||
The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy as of March 31, 2014 and December 31, 2013 (in millions): | ||||||||||||||||
As of March 31, 2014 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 342 | $ | — | $ | — | $ | 342 | ||||||||
Available-for-sale investment securities | — | 80 | — | 80 | ||||||||||||
Aircraft fuel derivatives | — | 2 | — | 2 | ||||||||||||
$ | 342 | $ | 82 | $ | — | $ | 424 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||
Interest rate swap | — | 3 | — | 3 | ||||||||||||
$ | — | $ | 4 | $ | — | $ | 4 | |||||||||
As of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 51 | $ | — | $ | — | $ | 51 | ||||||||
Available-for-sale investment securities | — | 188 | — | 188 | ||||||||||||
Aircraft fuel derivatives | — | 6 | — | 6 | ||||||||||||
$ | 51 | $ | 194 | $ | — | $ | 245 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | $ | — | $ | — | $ | — | $ | — | ||||||||
Interest rate swap | — | 3 | — | 3 | ||||||||||||
$ | — | $ | 3 | $ | — | $ | 3 | |||||||||
Refer to Note 3 for fair value information related to our outstanding debt obligations as of March 31, 2014 and December 31, 2013. | ||||||||||||||||
Cash equivalents | ||||||||||||||||
Our cash equivalents include money market securities and commercial paper which are readily convertible into cash with maturities of 90 days or less when purchased, all of which are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. | ||||||||||||||||
Available-for-sale investment securities | ||||||||||||||||
Included in our available-for-sale investment securities are certificates of deposit and commercial paper with original maturities greater than 90 days but less than one year. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. The fair value of treasury bills are based on actively traded quoted market prices and are therefore classified as Level 1 in the hierarchy. We did not record any significant gains or losses on these securities during the three months ended March 31, 2014 and December 31, 2013. | ||||||||||||||||
Interest rate swaps | ||||||||||||||||
The fair values of our interest rate swaps are based on inputs received from the related counterparty, which are based on observable inputs for active swap indications in quoted markets for similar terms. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. | ||||||||||||||||
Aircraft fuel derivatives | ||||||||||||||||
Our aircraft fuel derivatives include jet fuel swaps and jet fuel caps which are not traded on public exchanges. Their fair values are determined using a market approach based on inputs that are readily available from public markets for commodities and energy trading activities. Therefore, they are classified as Level 2 inputs. The data inputs are combined into quantitative models and processes to generate forward curves and volatilities related to the specific terms of the underlying hedge contracts. |
LiveTV
LiveTV | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Live TV Disclosures [Abstract] | ' | ||||||||
LiveTV | ' | ||||||||
LIVETV | |||||||||
LiveTV, a wholly owned subsidiary of JetBlue, provides inflight entertainment and connectivity solutions for various commercial airlines, including JetBlue. In March 2014, we announced plans to sell LiveTV to Thales Group for $400 million. The sale is expected to be completed in mid-2014 following receipt of required regulatory and other approvals. We anticipate the sale to produce a gain. | |||||||||
As of March 31, 2014 and December 31, 2013, the major classes of LiveTV assets and liabilities were as follows (in millions): | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(unaudited) | |||||||||
Assets: | |||||||||
Current Assets | $ | 6 | $ | 7 | |||||
Property & Equipment, net | 91 | 84 | |||||||
Other Long Term Assets | 100 | 105 | |||||||
Total Assets | $ | 197 | $ | 196 | |||||
Liabilities: | |||||||||
Current Liabilities | $ | 47 | $ | 42 | |||||
Deferred Credits and Other Liabilities | 37 | 34 | |||||||
Total Liabilities | $ | 84 | $ | 76 | |||||
As it is expected that the transaction will be completed within one year, all LiveTV assets and liabilities as of March 31, 2014 have been classified as current in the Condensed Consolidated Balance Sheets. Current assets have been reported in prepaid expenses and other while current liabilities have been reported in other accrued liabilities. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of presentation | ' |
Basis of Presentation | |
JetBlue predominately provides air transportation services across the United States, the Caribbean and Latin America. Our condensed consolidated financial statements include the accounts of JetBlue Airways Corporation, or JetBlue, and our subsidiaries, collectively referred to as “we” or the “Company”. All majority-owned subsidiaries are consolidated on a line by line basis, with all intercompany transactions and balances having been eliminated. These condensed consolidated financial statements and related notes should be read in conjunction with our 2013 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013, or our 2013 Form 10-K. | |
These condensed consolidated financial statements are unaudited and have been prepared by us following the rules and regulations of the Securities and Exchange Commission, or the SEC. In our opinion they reflect all adjustments, including normal recurring items, that are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been condensed or omitted as permitted by such rules and regulations; however, we believe that the disclosures are adequate to make the information presented not misleading. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for the entire year. | |
Investment securities | ' |
Investment securities | |
Investment securities consist of available-for-sale investment securities and held-to-maturity investment securities. When sold, we use a specific identification method to determine the cost of the securities. | |
Held-to-maturity investment securities | ' |
Held-to-maturity investment securities. The contractual maturities of the corporate bonds we held as of March 31, 2014 were not greater than 24 months. We did not record any significant gains or losses on these securities during the three months ended March 31, 2014 or 2013. The estimated fair value of these investments approximated their carrying value as of March 31, 2014 and December 31, 2013, respectively. | |
Intangible assets | ' |
Intangible Assets | |
Our intangible assets consist primarily of acquired take-off and landing slots, or Slots, at certain domestic airports. Slots are the rights to take-off or land at a specific airport during a specific time period of the day and are a means by which airport capacity and congestion can be managed. We account for Slots at High Density airports, including Reagan National Airport in Washington, D.C. and LaGuardia and JFK Airports in New York City as indefinite life intangible assets which results in no amortization expense, while Slots at other airports are amortized on a straight-line basis over their expected useful lives, up to 15 years. As of December 31, 2013, we changed our estimated lives for Slots at High Density Airports from 15 years to indefinite life. We incurred amortization expense of $1 million and $5 million related to Slots at High Density Airports for the three months ended March 31, 2013 and the 12 months ended December 31, 2013, respectively. | |
In March 2014, we completed the purchase of 24 Slots at Reagan National Airport for $75 million. We plan to begin using these Slots in the second half of 2014. Consistent with our accounting treatment for Slots at all High Density Airports, we have assigned these assets an indefinite life. | |
Cash equivalents | ' |
Cash equivalents | |
Our cash equivalents include money market securities and commercial paper which are readily convertible into cash with maturities of 90 days or less when purchased, all of which are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. | |
Available-for-sale investment securities | ' |
Available-for-sale investment securities | |
Included in our available-for-sale investment securities are certificates of deposit and commercial paper with original maturities greater than 90 days but less than one year. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. The fair value of treasury bills are based on actively traded quoted market prices and are therefore classified as Level 1 in the hierarchy. We did not record any significant gains or losses on these securities during the three months ended March 31, 2014 and December 31, 2013. | |
Interest rate swaps and Aircraft fuel derivative | ' |
Interest rate swaps | |
The fair values of our interest rate swaps are based on inputs received from the related counterparty, which are based on observable inputs for active swap indications in quoted markets for similar terms. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. | |
Aircraft fuel derivatives | |
Our aircraft fuel derivatives include jet fuel swaps and jet fuel caps which are not traded on public exchanges. Their fair values are determined using a market approach based on inputs that are readily available from public markets for commodities and energy trading activities. Therefore, they are classified as Level 2 inputs. The data inputs are combined into quantitative models and processes to generate forward curves and volatilities related to the specific terms of the underlying hedge contracts. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Schedule of marketable securities | ' | |||||||
The carrying values of investment securities consisted of the following at March 31, 2014 and December 31, 2013 (in millions): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(unaudited) | ||||||||
Available-for-sale securities | ||||||||
Time deposits | $ | 45 | $ | 70 | ||||
Commercial paper | 35 | 118 | ||||||
80 | 188 | |||||||
Held-to-maturity securities | ||||||||
Corporate bonds | 234 | 275 | ||||||
Time deposits | 53 | 53 | ||||||
287 | 328 | |||||||
Total | $ | 367 | $ | 516 | ||||
Longterm_Debt_Shortterm_Borrow1
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Carrying amounts and estimated fair values of long-term debt | ' | ||||||||||||||||
The carrying amounts and estimated fair values of our long-term debt at March 31, 2014 and December 31, 2013 were as follows (in millions): | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
Public Debt | |||||||||||||||||
Floating rate enhanced equipment notes: | |||||||||||||||||
Class G-1, due through 2016 | $ | 53 | $ | 51 | $ | 55 | $ | 54 | |||||||||
Class G-2, due 2014 and 2016 | 185 | 181 | 373 | 365 | |||||||||||||
Fixed rate special facility bonds, due through 2036 | 78 | 74 | 78 | 68 | |||||||||||||
6.75% convertible debentures due in 2039 | 162 | 303 | 162 | 297 | |||||||||||||
5.5% convertible debentures due in 2038 | 68 | 137 | 68 | 134 | |||||||||||||
Non-Public Debt | |||||||||||||||||
Fixed rate enhanced equipment notes, due through 2022 | $ | 226 | $ | 224 | $ | — | $ | — | |||||||||
Floating rate equipment notes, due through 2025 | 617 | 627 | 634 | 645 | |||||||||||||
Fixed rate equipment notes, due through 2026 | 1,107 | 1,170 | 1,110 | 1,161 | |||||||||||||
Total | $ | 2,496 | $ | 2,767 | $ | 2,480 | $ | 2,724 | |||||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||
Accumulated other comprehensive income (loss), net of taxes | ' | |||||||||||
A rollforward of the amounts included in the accumulated other comprehensive income (loss), net of taxes for the three months ended March 31, 2014 and March 31, 2013 are as follows (in millions, unaudited): | ||||||||||||
Aircraft Fuel | Interest Rate | Total | ||||||||||
Derivatives (1) | Swaps (2) | |||||||||||
Beginning accumulated gains (losses) at December 31, 2013 | $ | 1 | $ | (1 | ) | $ | — | |||||
Reclassifications into earnings (net of $0 of taxes) | 1 | — | 1 | |||||||||
Change in fair value (net of $(1) of taxes) | (3 | ) | — | (3 | ) | |||||||
Ending accumulated losses at March 31, 2014 | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) | |||
Aircraft Fuel | Interest Rate | Total | ||||||||||
Derivatives (1) | Swaps (2) | |||||||||||
Beginning accumulated losses at December 31, 2012 | $ | (1 | ) | $ | (7 | ) | (8 | ) | ||||
Reclassifications into earnings (net of $1 of taxes) | — | 2 | 2 | |||||||||
Change in fair value (net of $(1) of taxes) | (2 | ) | — | (2 | ) | |||||||
Ending accumulated losses at March 31, 2013 | $ | (3 | ) | $ | (5 | ) | (8 | ) | ||||
__________________________ | ||||||||||||
(1) Reclassified to aircraft fuel expense | ||||||||||||
(2) Reclassified to interest expense |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||
The following table shows how we computed basic and diluted earnings per common share (in millions, share amounts in thousands, unaudited): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net income | $ | 4 | $ | 14 | ||||
Effect of dilutive securities: | ||||||||
Interest on convertible debt, net of income taxes and profit sharing | — | 1 | ||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ | 4 | $ | 15 | ||||
Denominator: | ||||||||
Weighted average shares outstanding for basic earnings per share | 294,826 | 279,768 | ||||||
Effect of dilutive securities: | ||||||||
Employee stock options | 2,387 | 1,662 | ||||||
Convertible debt | — | 27,428 | ||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 297,213 | 308,858 | ||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Shares excluded from EPS calculation (in millions): | ||||||||
Shares issuable upon conversion of our convertible debt as assumed conversion would be antidilutive | 48.4 | 33.1 | ||||||
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | 11.9 | 17.5 | ||||||
Financial_Derivative_Instrumen1
Financial Derivative Instruments and Risk Management (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||
Percentage fuel covered under derivative contracts | ' | |||||||||||||||||||
The following table illustrates the approximate hedged percentages of our projected fuel usage by quarter as of March 31, 2014 related to our outstanding fuel hedging contracts that were designated as cash flow hedges for accounting purposes. | ||||||||||||||||||||
Jet fuel swap | Jet fuel cap | Total | ||||||||||||||||||
agreements | agreements | |||||||||||||||||||
Second Quarter 2014 | 7 | % | 8 | % | 15 | % | ||||||||||||||
Third Quarter 2014 | 12 | % | — | % | 12 | % | ||||||||||||||
Fourth Quarter 2014 | 12 | % | — | % | 12 | % | ||||||||||||||
First Quarter 2015 | 5 | % | — | % | 5 | % | ||||||||||||||
Second Quarter 2015 | 5 | % | — | % | 5 | % | ||||||||||||||
Derivative instrument in statement of financial position and financial performance | ' | |||||||||||||||||||
The table below reflects quantitative information related to our derivative instruments and where these amounts are recorded in our financial statements (dollar amounts in millions): | ||||||||||||||||||||
As of | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Fuel derivatives | ||||||||||||||||||||
Asset fair value recorded in prepaid expenses and other (1) | $ | 2 | $ | 6 | ||||||||||||||||
Liability fair value recorded in other accrued liabilities (1) | 1 | — | ||||||||||||||||||
Longest remaining term (months) | 15 | 12 | ||||||||||||||||||
Hedged volume (barrels, in thousands) | 1,869 | 1,320 | ||||||||||||||||||
Estimated amount of existing gains expected to be reclassified into earnings in the next 12 months | $ | 1 | $ | 3 | ||||||||||||||||
Interest rate derivatives | ||||||||||||||||||||
Liability fair value recorded in other long term liabilities (2) | $ | 3 | $ | 3 | ||||||||||||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | (2 | ) | (2 | ) | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||
Fuel derivatives | ||||||||||||||||||||
Hedge effectiveness gains (losses) recognized in aircraft fuel expense | $ | (1 | ) | $ | — | |||||||||||||||
Hedge ineffectiveness losses recognized in other income (expense) | — | — | ||||||||||||||||||
Hedge losses on derivatives recognized in comprehensive income | (4 | ) | (3 | ) | ||||||||||||||||
Percentage of actual consumption economically hedged | 16 | % | 19 | % | ||||||||||||||||
Interest rate derivatives | ||||||||||||||||||||
Hedge gains (losses) on derivatives recognized in comprehensive income | $ | — | $ | — | ||||||||||||||||
Hedge losses on derivatives recognized in interest expense | — | (3 | ) | |||||||||||||||||
____________________________ | ||||||||||||||||||||
-1 | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty. | |||||||||||||||||||
-2 | Gross liability, prior to impact of collateral posted | |||||||||||||||||||
Offsetting assets and liabilities | ' | |||||||||||||||||||
The impact of offsetting derivative instruments is depicted below (in millions): | ||||||||||||||||||||
Gross Amount of Recognized | Gross Amount of Cash Collateral | Net Amount Presented | ||||||||||||||||||
in Balance Sheet | ||||||||||||||||||||
Assets | Liabilities | Offset | Assets | Liabilities | ||||||||||||||||
As of March 31, 2014 (unaudited) | ||||||||||||||||||||
Fuel derivatives | $ | 2 | $ | 1 | $ | — | $ | 2 | $ | 1 | ||||||||||
Interest rate derivatives | — | 3 | 3 | — | — | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Fuel derivatives | $ | 6 | $ | — | $ | — | $ | 6 | $ | — | ||||||||||
Interest rate derivatives | — | 3 | 3 | — | — | |||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair value, by balance sheet grouping | ' | |||||||||||||||
The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy as of March 31, 2014 and December 31, 2013 (in millions): | ||||||||||||||||
As of March 31, 2014 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 342 | $ | — | $ | — | $ | 342 | ||||||||
Available-for-sale investment securities | — | 80 | — | 80 | ||||||||||||
Aircraft fuel derivatives | — | 2 | — | 2 | ||||||||||||
$ | 342 | $ | 82 | $ | — | $ | 424 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||
Interest rate swap | — | 3 | — | 3 | ||||||||||||
$ | — | $ | 4 | $ | — | $ | 4 | |||||||||
As of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 51 | $ | — | $ | — | $ | 51 | ||||||||
Available-for-sale investment securities | — | 188 | — | 188 | ||||||||||||
Aircraft fuel derivatives | — | 6 | — | 6 | ||||||||||||
$ | 51 | $ | 194 | $ | — | $ | 245 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | $ | — | $ | — | $ | — | $ | — | ||||||||
Interest rate swap | — | 3 | — | 3 | ||||||||||||
$ | — | $ | 3 | $ | — | $ | 3 | |||||||||
LiveTV_Tables
LiveTV (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Live TV Disclosures [Abstract] | ' | ||||||||
Schedule of disposal groups, including discontinued operations, income statement, balance sheet and additional disclosures | ' | ||||||||
As of March 31, 2014 and December 31, 2013, the major classes of LiveTV assets and liabilities were as follows (in millions): | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(unaudited) | |||||||||
Assets: | |||||||||
Current Assets | $ | 6 | $ | 7 | |||||
Property & Equipment, net | 91 | 84 | |||||||
Other Long Term Assets | 100 | 105 | |||||||
Total Assets | $ | 197 | $ | 196 | |||||
Liabilities: | |||||||||
Current Liabilities | $ | 47 | $ | 42 | |||||
Deferred Credits and Other Liabilities | 37 | 34 | |||||||
Total Liabilities | $ | 84 | $ | 76 | |||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
takeoff_and_landing_slot | Acquired Take-Off and Landing Slots [Member] | High Density Airports, Take-Off and Landing Slots [Member] | High Density Airports, Take-Off and Landing Slots [Member] | Bank Time Deposits [Member] | Bank Time Deposits [Member] | Commercial paper [Member] | Commercial paper [Member] | Corporate bonds [Member] | Corporate bonds [Member] | ||
Available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale investment securities | $80 | $188 | ' | ' | ' | $45 | $70 | $35 | $118 | ' | ' |
Held-to-maturity securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Held-to-maturity securities | 287 | 328 | ' | ' | ' | 53 | 53 | ' | ' | 234 | 275 |
Marketable securities | 367 | 516 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived intangible asset, useful life | ' | ' | '15 years | ' | '15 years | ' | ' | ' | ' | ' | ' |
Amortization of intangible assets | ' | ' | ' | 1 | 5 | ' | ' | ' | ' | ' | ' |
Number of take off and landing slots | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-lived domestic slots and routes | $75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period | 2 |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 1.9 |
Longterm_Debt_Shortterm_Borrow2
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Enhanced Equipment Trust Certificate [Member] | Fixed Rate Notes [Member] | Class G Two Certificates For November Two Zero Zero Four Offering [Member] | Public Debt Floating Rate Class G One Due Through Two Thousand Sixteen [Member] | Public Debt Floating Rate Class G One Due Through Two Thousand Sixteen [Member] | Public Debt Floating Rate Class G Two Due Two Thousand Fourteen And Two Thousand Sixteen Member | Public Debt Floating Rate Class G Two Due Two Thousand Fourteen And Two Thousand Sixteen Member | Public Debt Fixed Rate Special Facility Bonds Due Through Two Thousand Thirty Three [Member] | Public Debt Fixed Rate Special Facility Bonds Due Through Two Thousand Thirty Three [Member] | Public Debt Six Point Seven Five Percentage Convertible Debentures Due In Two Thousand Thirty Six [Member] | Public Debt Six Point Seven Five Percentage Convertible Debentures Due In Two Thousand Thirty Six [Member] | Public Debt Five Point Five Percentage Convertible Debentures Due In Two Thousand Thirty Eight [Member] | Public Debt Five Point Five Percentage Convertible Debentures Due In Two Thousand Thirty Eight [Member] | Non Public Debt Fixed Rate Enhanced Equipment Notes Due Through Two Thousand And Twenty Two [Member] | Non Public Debt Fixed Rate Enhanced Equipment Notes Due Through Two Thousand And Twenty Two [Member] | Non Public Debt Floating Rate Equipment Notes Due Through Two Thousand And Twenty Five [Member] | Non Public Debt Floating Rate Equipment Notes Due Through Two Thousand And Twenty Five [Member] | Non Public Debt Fixed Rate Equipment Notes Due Through Two Thousand Twenty Six [Member] | Non Public Debt Fixed Rate Equipment Notes Due Through Two Thousand Twenty Six [Member] | A-320-200 [Member] | A-320-200 [Member] | Aircraft [Domain] | Aircraft [Domain] | EMBRAER 190 Aircraft [Member] | |||
aircraft | aircraft | Enhanced Equipment Trust Certificate [Member] | aircraft | Fixed Rate Notes [Member] | aircraft | |||||||||||||||||||||
aircraft | aircraft | |||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | $226,000,000 | $22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of new aircraft held as security | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | 1 | ' |
Reduction in outstanding debt and capital lease obligations | 237,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Final principal payment | ' | ' | ' | ' | 188,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
unencumbered aircraft | ' | ' | ' | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | 1 |
Number of leased aircrafts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Capital lease obligations incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 | ' | ' |
Value of aircraft, engines and other equipment and facilities which were pledged as security under various loan agreements | 3,710,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unencumbered spare engine | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 |
Weighted average interest rate of long-term debt | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturities, repayments of principal in next twelve months | 248,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturities, repayments of principal in Year Two | 298,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturities, repayments of principal in Year Three | 492,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturities, repayments of principal in Year Four | 226,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturities, repayments of principal in Year Five | 269,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturities, repayments, thereafter | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amounts and estimated fair values of long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value, Total | 2,496,000,000 | 2,480,000,000 | ' | ' | ' | 53,000,000 | 55,000,000 | 185,000,000 | 373,000,000 | 78,000,000 | 78,000,000 | 162,000,000 | 162,000,000 | 68,000,000 | 68,000,000 | 226,000,000 | 0 | 617,000,000 | 634,000,000 | 1,107,000,000 | 1,110,000,000 | ' | ' | ' | ' | ' |
Estimated Fair Value, Total | $2,767,000,000 | $2,724,000,000 | ' | ' | ' | $51,000,000 | $54,000,000 | $181,000,000 | $365,000,000 | $74,000,000 | $68,000,000 | $303,000,000 | $297,000,000 | $137,000,000 | $134,000,000 | $224,000,000 | $0 | $627,000,000 | $645,000,000 | $1,170,000,000 | $1,161,000,000 | ' | ' | ' | ' | ' |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Beginning accumulated gains (losses) | $0 | ($8) |
Reclassifications into earnings | 1 | 2 |
Change in fair value | -3 | -2 |
Ending accumulated losses | -2 | -8 |
Fuel Derivatives [Member] | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Beginning accumulated gains (losses) | 1 | -1 |
Reclassifications into earnings | 1 | 0 |
Change in fair value | -3 | -2 |
Ending accumulated losses | -1 | -3 |
Interest Rate Contract [Member] | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Beginning accumulated gains (losses) | -1 | -7 |
Reclassifications into earnings | 0 | 2 |
Change in fair value | 0 | 0 |
Ending accumulated losses | ($1) | ($5) |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) (Parentheticals) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Reclassifications into earnings, tax | $1 | $1 |
Change in fair value, tax | ($2) | ($1) |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator: | ' | ' |
Net income | $4 | $14 |
Effect of dilutive securities: | ' | ' |
Interest on convertible debt, net of income taxes and profit sharing | 0 | 1 |
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | 4 | 15 |
Denominator: | ' | ' |
Weighted average shares outstanding for basic earnings per share | 294,826,000 | 279,768,000 |
Effect of dilutive securities: | ' | ' |
Employee stock options | 2,387,000 | 1,662,000 |
Convertible debt | 0 | 27,428,000 |
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 297,213,000 | 308,858,000 |
Earnings Per Share (Textuals) [Abstract] | ' | ' |
Share lending arrangement, shares, outstanding | 1,400,000 | ' |
Share lending arrangement, shares, outstanding, value | $12 | ' |
Stock repurchase program, number of shares authorized to be repurchased, maximum daily shares | 45,000 | ' |
Stock repurchase program, number of shares authorized to be repurchased | 8,000,000 | ' |
Convertible Debt Securities [Member] | ' | ' |
Shares excluded from EPS calculation (in millions): | ' | ' |
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | 48,400,000 | 33,100,000 |
Stock Compensation Plan [Member] | ' | ' |
Shares excluded from EPS calculation (in millions): | ' | ' |
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | 11,900,000 | 17,500,000 |
Employee_Retirement_Plan_Detai
Employee Retirement Plan (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Employee Retirement Plan (Textuals) [Abstract] | ' | ' |
Percentage of employees' gross pay for which the employer contributes a matching contribution to the Plan. | 5.00% | ' |
Percentage of employees' gross pay for which the employer can contribute a discretionary profit sharing contribution to the Plan. | 5.00% | ' |
Percentage of Its Eligible Pre Tax Profits for which the employer contributes to the Plan. | 15.00% | ' |
Percentage of FAA licensed employees gross pay for which ER can contribute discretionary profit sharing contribution to plan | 3.00% | ' |
Contribution to employee retirement plan | $24 | $20 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 23 Months Ended | 3 Months Ended | ||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
A-320-200 [Member] | Airbus A321 [Member] | Airbus A320 Neo [Member] | Airbus A321 Neo [Member] | EMBRAER 190 Aircraft [Member] | Spare Engines [Member] | LiveTV [Member] | Connectivity Service [Member] | Hardware and Software Purchases [Member] | ||
aircraft | aircraft | aircraft | aircraft | aircraft | engine | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecorded unconditional purchase obligations disclosure | ' | 3 | 48 | 30 | 30 | 24 | 10 | ' | ' | ' |
Committed expenditure due within current year | $430,000,000 | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | ' |
Committed expenditure due within second year | 660,000,000 | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' |
Committed expenditure due within third year | 785,000,000 | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' |
Committed expenditure due within four years | 835,000,000 | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' |
Committed expenditure due within five years | 855,000,000 | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' |
Committed expenditure due after five years | 3,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft scheduled to receive | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' |
Number of aircrafts delivery committed debt financing | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Unrecorded unconditional purchase obligation, minimum amount | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | 25,000,000 |
Unrecorded unconditional purchase obligations, term | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' |
Net costs for terminal construction project subject to underlying ground lease | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net costs for terminal construction project subject to underlying ground lease 2 | 112,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted assets pledged under letter of credit | 33,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted assets pledged related to workers compensation insurance policies and other business partner agreements | $25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Loss Contingencies (Details) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
pilot | Environmental Issue [Member] | Live T.V. Breach of Contract [Member] | ||
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Cost of remediation estimate (less than $1 million, minimum) | ' | ' | $1 | ' |
Cost of remediation estimate ($3 million, maximum) | ' | ' | 3 | ' |
Environmental exit costs, costs accrued to date | ' | 2 | ' | ' |
Number of claimants in employment agreement dispute | ' | 972 | ' | ' |
Base pay rate trigger in employment agreement dispute | ' | 26.70% | ' | ' |
Loss contingency, damages sought, value | $5 | ' | ' | $15 |
Financial_Derivative_Instrumen2
Financial Derivative Instruments and Risk Management (Details) (USD $) | 3 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Interest Rate Contract [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Second Quarter 2014 [Member] | Third Quarter 2014 [Member] | Fourth Quarter 2014 [Member] | First Quarter 2015 [Member] | Second Quarter 2015 [Member] | Jet Fuel Swap Agreements [Member] | Jet Fuel Swap Agreements [Member] | Jet Fuel Swap Agreements [Member] | Jet Fuel Swap Agreements [Member] | Jet Fuel Swap Agreements [Member] | Jet Fuel Swap Agreements [Member] | Jet Fuel Swap Agreements [Member] | Jet Fuel Cap Agreement [Member] | Jet Fuel Cap Agreement [Member] | Jet Fuel Cap Agreement [Member] | Jet Fuel Cap Agreement [Member] | Jet Fuel Cap Agreement [Member] | |||
Interest Expense [Member] | Interest Expense [Member] | Designated as Hedging Instrument [Member] | Second Quarter 2014 [Member] | Third Quarter 2014 [Member] | Third Quarter 2014 [Member] | Fourth Quarter 2014 [Member] | Fourth Quarter 2014 [Member] | First Quarter 2015 [Member] | Second Quarter 2015 [Member] | Second Quarter 2014 [Member] | Third Quarter 2014 [Member] | Fourth Quarter 2014 [Member] | First Quarter 2015 [Member] | Second Quarter 2015 [Member] | ||||||||
Interest Rate Swap [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage fuel hedged | ' | ' | ' | ' | ' | 15.00% | 12.00% | 12.00% | 5.00% | 5.00% | 7.00% | 12.00% | 5.00% | 12.00% | 5.00% | 5.00% | 5.00% | 8.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Notional amount of interest rate cash flow hedge derivatives | ' | ' | ' | ' | $53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hedge losses on derivatives recognized in interest expense | $37 | $41 | $0 | $3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial_Derivative_Instrumen3
Financial Derivative Instruments and Risk Management (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
bbl | bbl | |||
Fuel derivatives [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset fair value recorded in prepaid expenses and other | $2 | $6 | ||
Liability fair value recorded in other accriued liabilities | 1 | 0 | ||
Longest remaining term (months) | '15 months | '12 months | ||
Hedged volume (barrels, in thousands) | 1,869,000 | 1,320,000 | ||
Estimated amount of existing gains expected to be reclassified into earnings in the next 12 months | 1 | 3 | ||
Interest rate derivatives [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liability fair value recorded in other long term liabilities | 3 | [1] | 3 | [1] |
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | -2 | -2 | ||
Prepaid expenses and other [Member] | Fuel derivatives [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Asset fair value recorded in prepaid expenses and other | 2 | [2] | 6 | [2] |
Other accrued liabilities [Member] | Fuel derivatives [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liability fair value recorded in other accriued liabilities | $1 | [2] | $0 | [2] |
[1] | Gross liability, prior to impact of collateral posted | |||
[2] | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty. |
Financial_Derivative_Instrumen4
Financial Derivative Instruments and Risk Management - Hedging Effectiveness (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Interest expense | ($37) | ($41) |
Other income (expense) [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Hedge effectiveness losses recognized in aircraft fuel expense | 0 | 0 |
Fuel derivatives [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Percentage of actual consumption economically hedged | 16.00% | 19.00% |
Fuel derivatives [Member] | Aircraft Fuel Expense [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Hedge effectiveness losses recognized in aircraft fuel expense | -1 | 0 |
Fuel derivatives [Member] | Comprehensive Income [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Hedge losses on derivatives recognized in comprehensive income | -4 | -3 |
Interest Rate Contract [Member] | Comprehensive Income [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Hedge losses on derivatives recognized in comprehensive income | 0 | 0 |
Interest Rate Contract [Member] | Interest Expense [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Interest expense | $0 | ($3) |
Financial_Derivative_Instrumen5
Financial Derivative Instruments and Risk Management (Details 4) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Number of counterparties to derivative agreements | 6 | ' | ||
Fuel Derivatives [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets, gross amount of recognized, fuel derivatives | $2 | $6 | ||
Liabilities, gross amount of recognized, fuel derivatives | 1 | 0 | ||
Offset, Gross Amount of Cash Collateral | 0 | 0 | ||
Assets, net amount presented in balance sheet | 2 | 6 | ||
Liabilities, net amount presented in balance sheet | 1 | 0 | ||
Interest Rate Contract [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets, gross amount of recognized, interest rate derivatives | 0 | 0 | ||
Liabilities, gross amount of recognized, interest rate derivatives | 3 | [1] | 3 | [1] |
Offset, Gross Amount of Cash Collateral | 3 | 3 | ||
Assets, net amount presented in balance sheet | 0 | 0 | ||
Liabilities, net amount presented in balance sheet | $0 | $0 | ||
[1] | Gross liability, prior to impact of collateral posted |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Available-for-sale investment securities | $80 | $188 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 342 | 51 |
Available-for-sale investment securities | 80 | 188 |
Aircraft fuel derivatives | 2 | 6 |
Assets, Total | 424 | 245 |
Liabilities | ' | ' |
Liabilities, Total | 4 | 3 |
Fair Value, Measurements, Recurring [Member] | Aircraft Fuel Derivatives [Member] | ' | ' |
Liabilities | ' | ' |
Derivative Liabilities | 1 | 0 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | ' | ' |
Liabilities | ' | ' |
Derivative Liabilities | 3 | 3 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 342 | 51 |
Available-for-sale investment securities | 0 | 0 |
Aircraft fuel derivatives | 0 | 0 |
Assets, Total | 342 | 51 |
Liabilities | ' | ' |
Liabilities, Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Aircraft Fuel Derivatives [Member] | ' | ' |
Liabilities | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Interest Rate Swap [Member] | ' | ' |
Liabilities | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 0 | 0 |
Available-for-sale investment securities | 80 | 188 |
Aircraft fuel derivatives | 2 | 6 |
Assets, Total | 82 | 194 |
Liabilities | ' | ' |
Liabilities, Total | 4 | 3 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Aircraft Fuel Derivatives [Member] | ' | ' |
Liabilities | ' | ' |
Derivative Liabilities | 1 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | ' | ' |
Liabilities | ' | ' |
Derivative Liabilities | 3 | 3 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 0 | 0 |
Available-for-sale investment securities | 0 | 0 |
Aircraft fuel derivatives | 0 | 0 |
Assets, Total | 0 | 0 |
Liabilities | ' | ' |
Liabilities, Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Aircraft Fuel Derivatives [Member] | ' | ' |
Liabilities | ' | ' |
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Interest Rate Swap [Member] | ' | ' |
Liabilities | ' | ' |
Derivative Liabilities | $0 | $0 |
LiveTV_Details
LiveTV (Details) (In Flight Entertainment Systems [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
In Millions, unless otherwise specified | Scenario, Forecast [Member] | ||
Proceeds from divestiture of LiveTV | ' | ' | $400 |
Assets: | ' | ' | ' |
Current Assets | 6 | 7 | ' |
Property & Equipment, net | 91 | 84 | ' |
Other Long Term Assets | 100 | 105 | ' |
Total Assets | 197 | 196 | ' |
Liabilities: | ' | ' | ' |
Current Liabilities | 47 | 42 | ' |
Deferred Credits and Other Liabilities | 37 | 34 | ' |
Total Liabilities | $84 | $76 | ' |