Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 30, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | JETBLUE AIRWAYS CORP | ||
Entity Central Index Key | 1158463 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 310,856,091 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $2.60 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $341 | $225 |
Investment securities | 367 | 402 |
Receivables, less allowance (2014-$6; 2013-$6) | 136 | 129 |
Inventories, less allowance (2014-$8; 2013-$6) | 46 | 48 |
Prepaid expenses | 135 | 126 |
Deferred income taxes | 1 | 6 |
Other | 174 | 120 |
Total current assets | 1,200 | 1,056 |
PROPERTY AND EQUIPMENT | ||
Flight equipment | 6,233 | 5,778 |
Predelivery deposits for flight equipment | 207 | 181 |
Flight equipment, gross plus deposits | 6,440 | 5,959 |
Less accumulated depreciation | 1,354 | 1,185 |
Flight equipment net | 5,086 | 4,774 |
Other property and equipment | 816 | 688 |
Less accumulated depreciation | 252 | 251 |
Property plant and equipment other net | 564 | 437 |
Assets constructed for others | 561 | 561 |
Less accumulated depreciation | 139 | 116 |
Asset constructed for others net | 422 | 445 |
Total property and equipment | 6,072 | 5,656 |
OTHER ASSETS | ||
OTHER ASSETS | 60 | 114 |
Investment securities | 61 | 57 |
Restricted cash | 446 | 467 |
Other | 567 | 638 |
Total other assets | 7,839 | 7,350 |
CURRENT LIABILITIES | ||
Accounts payable | 208 | 180 |
Air traffic liability | 973 | 825 |
Accrued salaries, wages and benefits | 203 | 171 |
Other accrued liabilities | 287 | 229 |
Current maturities of long-term debt and capital leases | 265 | 469 |
Total current liabilities | 1,936 | 1,874 |
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS | 1,968 | 2,116 |
CONSTRUCTION OBLIGATION | 487 | 501 |
DEFERRED TAXES AND OTHER LIABILITIES | ||
Deferred income taxes | 832 | 605 |
Other | 87 | 120 |
Total deferred taxes and other liabilities | 919 | 725 |
Commitments and Contingencies | ||
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, 368,883,960 and 346,489,574 shares issued and 309,871,309 and 295,587,126 shares outstanding at 2014 and 2013, respectively | 4 | 3 |
Treasury stock, at cost; 59,012,651 and 50,902,448 shares at 2014 and 2013, respectively | -125 | -43 |
Additional paid-in capital | 1,711 | 1,573 |
Retained earnings | 1,002 | 601 |
Accumulated other comprehensive loss | -63 | 0 |
Total stockholders’ equity | 2,529 | 2,134 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $7,839 | $7,350 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for receivables | $6 | $6 |
Allowance for inventories | $8 | $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 | 368,883,960 | 346,489,574 |
Common stock, shares outstanding | 309,871,309 | 295,587,126 |
Treasury stock, shares | 59,012,651 | 50,902,448 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING REVENUES | |||
Passenger | $5,343 | $4,971 | $4,550 |
Other | 474 | 470 | 432 |
Total operating revenues | 5,817 | 5,441 | 4,982 |
OPERATING EXPENSES | |||
Aircraft fuel and related taxes | 1,912 | 1,899 | 1,806 |
Salaries, wages and benefits | 1,294 | 1,135 | 1,044 |
Landing fees and other rents | 321 | 305 | 277 |
Depreciation and amortization | 320 | 290 | 258 |
Aircraft rent | 124 | 128 | 130 |
Sales and marketing | 231 | 223 | 204 |
Maintenance, materials and repairs | 418 | 432 | 338 |
Other operating expenses | 682 | 601 | 549 |
Total operating expenses | 5,302 | 5,013 | 4,606 |
OPERATING INCOME | 515 | 428 | 376 |
OTHER INCOME (EXPENSE) | |||
Interest expense | -148 | -161 | -176 |
Capitalized interest | 14 | 13 | 8 |
Interest income (expense) and other | 1 | -1 | 1 |
Gain (Loss) on Disposition of Assets | 241 | 0 | 0 |
Total other income (expense) | 108 | -149 | -167 |
INCOME BEFORE INCOME TAXES | 623 | 279 | 209 |
Income tax expense | 222 | 111 | 81 |
NET INCOME | $401 | $168 | $128 |
EARNINGS PER COMMON SHARE: | |||
Basic | $1.36 | $0.59 | $0.45 |
Diluted | $1.19 | $0.52 | $0.40 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Comprehensive Income (Loss) [Abstract] | |||
Net Income | $401 | $168 | $128 |
Changes in fair value of derivative instruments, net of reclassifications into earnings (net of $(40), $5, and $5 of taxes in 2014, 2013 and 2012, respectively) | -63 | 8 | 7 |
Total other comprehensive income (loss) | -63 | 8 | 7 |
COMPREHENSIVE INCOME | $338 | $176 | $135 |
Consolidated_Statement_of_Comp1
Consolidated Statement of Comprehensive Income (Loss) (Parantheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | |||
(net of $(40), $5, and $5 of taxes in 2014, 2013 and 2012, respectively) | ($40) | $5 | $5 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $401 | $168 | $128 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income taxes | 212 | 107 | 76 |
Depreciation | 263 | 258 | 230 |
Amortization | 62 | 48 | 39 |
Stock-based compensation | 20 | 14 | 13 |
Losses on sale of assets, debt extinguishment and customer contract termination | 0 | -1 | -17 |
Gain (Loss) on Disposition of Assets | -241 | 0 | 0 |
Collateral (paid) returned for derivative instruments | -49 | 8 | 8 |
Changes in certain operating assets and liabilities: | |||
Decrease (Increase) in receivables | 1 | -22 | 1 |
Decrease (Increase) in inventories, prepaid and other | 3 | -23 | 38 |
Increase in air traffic liability | 148 | 132 | 66 |
Increase in accounts payable and other accrued liabilities | 68 | 52 | 92 |
Other, net | 24 | 17 | 24 |
Net cash provided by operating activities | 912 | 758 | 698 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | -730 | -615 | -542 |
Predelivery deposits for flight equipment | -127 | -22 | -283 |
Proceeds from the sale and disposition of assets | 8 | 8 | 46 |
Proceeds from disposition of assets | 393 | 0 | 0 |
Assets constructed for others | 0 | 0 | -2 |
Purchase of held-to-maturity investments | -361 | -234 | -444 |
Proceeds from the maturities of held-to-maturity investments | 379 | 300 | 434 |
Purchase of available-for-sale securities | -335 | -413 | -532 |
Proceeds from the sale of available-for-sale securities | 398 | 508 | 438 |
Other, net | -4 | -8 | 18 |
Net cash used in investing activities | -379 | -476 | -867 |
Proceeds from: | |||
Issuance of common stock | 41 | 10 | 9 |
Issuance of long-term debt | 342 | 393 | 215 |
Short-term borrowings and lines of credit | 0 | 190 | 375 |
Repayment of: | |||
Long-term debt and capital lease obligations | -702 | -612 | -418 |
Short-term borrowings and lines of credit | 0 | -190 | -463 |
Construction Obligation | -14 | -13 | -12 |
Acquisition of treasury stock | -82 | -8 | -26 |
Other, net | -2 | -9 | -2 |
Net cash provided by (used in) financing activities | -417 | -239 | -322 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 116 | 43 | -491 |
Cash and cash equivalents at beginning of period | 225 | 182 | 673 |
Cash and cash equivalents at end of period | $341 | $225 | $182 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Millions, except Share data | ||||||
Beginning Balance at Dec. 31, 2011 | ($1,757) | ($3) | $8 | ($1,472) | ($305) | $15 |
Beginning Balance, Shares at Dec. 31, 2011 | 327,000,000 | 45,000,000 | ||||
Net income | 128 | 0 | 0 | 0 | 128 | 0 |
Changes in comprehensive income | 7 | 0 | 0 | 0 | 0 | 7 |
Vesting of restricted stock units | -4 | 0 | -4 | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 493,731 | |||||
Vesting of restricted stock units, Shares | 2,000,000 | 1,000,000 | ||||
Stock compensation expense | 13 | 13 | 0 | 0 | ||
Stock issued under Crewmember stock purchase plan | 7 | 0 | 0 | 7 | 0 | 0 |
Stock issued under crewmember stock purchase plan, Shares | 2,000,000 | 0 | ||||
Shares returned pursuant to 2012 share repurchase plan | 4,000,000 | |||||
Shares repurchased under 2012 share repurchase plan | -23 | 0 | -23 | 0 | 0 | 0 |
Shares repurchased under 2012 share repurchase plan, shares | 0 | |||||
Other | 3 | 0 | 0 | 3 | 0 | 0 |
Other, Shares | 0 | 0 | ||||
Ending Balance at Dec. 31, 2012 | 1,888 | 3 | -35 | 1,495 | 433 | -8 |
Ending Balance, Shares at Dec. 31, 2012 | 331,000,000 | 50,000,000 | ||||
Net income | 168 | 0 | 0 | 0 | 168 | 0 |
Changes in comprehensive income | 8 | 0 | 0 | 0 | 0 | 8 |
Vesting of restricted stock units | -5 | 0 | -5 | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 10,800 | |||||
Vesting of restricted stock units, Shares | 2,000,000 | 1,000,000 | ||||
Stock compensation expense | 14 | 14 | 0 | 0 | ||
Stock issued under Crewmember stock purchase plan | 10 | 0 | 0 | 10 | 0 | 0 |
Stock issued under crewmember stock purchase plan, Shares | 2,000,000 | 0 | ||||
Shares repurchased under 2012 share repurchase plan | -3 | 0 | -3 | 0 | 0 | 0 |
Shares repurchased under 2012 share repurchase plan, shares | 500,000 | 0 | 0 | |||
Convertible debt redemption | 55 | 0 | 0 | 55 | 0 | 0 |
Convertible debt redemption, shares | 12,000,000 | 0 | ||||
Other | -1 | 0 | 0 | -1 | 0 | 0 |
Other, Shares | 0 | 0 | ||||
Ending Balance at Dec. 31, 2013 | 2,134 | 3 | -43 | 1,573 | 601 | 0 |
Ending Balance, Shares at Dec. 31, 2013 | 347,000,000 | 51,000,000 | ||||
Net income | 401 | 0 | 0 | 0 | 0 | |
Changes in comprehensive income | -63 | 0 | 0 | 0 | 0 | |
Vesting of restricted stock units | -9 | 0 | -9 | 0 | 0 | 0 |
Stock Issued During Period, Value, Stock Options Exercised | 22 | 0 | 0 | 22 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,950,482 | 2,000,000 | 0 | |||
Vesting of restricted stock units, Shares | 3,000,000 | 1,000,000 | ||||
Stock compensation expense | 20 | 20 | 0 | 0 | ||
Stock issued under Crewmember stock purchase plan | 19 | 0 | 0 | 19 | 0 | 0 |
Stock issued under crewmember stock purchase plan, Shares | 2,000,000 | 0 | ||||
Shares repurchased under 2012 share repurchase plan | -73 | 0 | -73 | 0 | 0 | 0 |
Shares repurchased under 2012 share repurchase plan, shares | 0 | 7,000,000 | ||||
Convertible debt redemption | 77 | 1 | 0 | 76 | 0 | 0 |
Convertible debt redemption, shares | 15,000,000 | 0 | ||||
Other | 1 | 0 | 0 | 1 | 0 | 0 |
Other, Shares | 0 | 0 | ||||
Ending Balance at Dec. 31, 2014 | $2,529 | $4 | ($125) | $1,711 | $1,002 | ($63) |
Ending Balance, Shares at Dec. 31, 2014 | 369,000,000 | 59,000,000 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Summary of Significant Accounting Policies | Note 1—Summary of Significant Accounting Policies | ||||||||
Basis of Presentation | |||||||||
JetBlue predominately provides air transportation services across the United States, Caribbean and Latin America. Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S., or U.S. GAAP, and include the accounts of JetBlue and our subsidiaries. All majority-owned subsidiaries are consolidated on a line by line basis, with all intercompany transactions and balances being eliminated. In June 2014, LiveTV, LLC (and LTV Global, Inc, and LiveTV International, Inc., subsidiaries of LiveTV, LLC) were sold to Thales Holding Corporation, or Thales, and ceased to be subsidiaries of JetBlue. In September 2014, LiveTV Satellite Communications, LLC was sold to Thales and ceased to be a subsidiary of JetBlue. Following the close of the sales on June 10, 2014 and September 25, 2014, the transferred LiveTV operations are no longer presented in our consolidated financial statements. Refer to Note 8 for more details on the sale. Air transportation services accounted for substantially all of the Company’s operations in 2014, 2013 and 2012. Accordingly, segment information is not provided for LiveTV operations before the sale. | |||||||||
Use of Estimates | |||||||||
The preparation of our consolidated financial statements and accompanying notes in conformity with U.S. GAAP require us to make certain estimates and assumptions. Actual results could differ from those estimates. | |||||||||
Fair Value | |||||||||
The Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board’s, or FASB, Accounting Standards Codification™, or Codification, establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. This topic clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The topic also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs. Refer to Note 14 for more information. | |||||||||
Cash and Cash Equivalents | |||||||||
Our cash and cash equivalents include short-term, highly liquid investments which are readily convertible into cash. These investments include money market securities and commercial papers with maturities of three months or less when purchased. | |||||||||
Restricted Cash | |||||||||
Restricted cash primarily consists of security deposits, funds held in escrow for estimated workers’ compensation obligations and performance bonds for aircraft and facility leases. | |||||||||
Accounts and Other Receivables | |||||||||
Accounts and other receivables are carried at cost. They primarily consist of amounts due from credit card companies associated with sales of tickets for future travel. We estimate an allowance for doubtful accounts based on known troubled accounts, if any, and historical experience of losses incurred. | |||||||||
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. | |||||||||
Available-for-sale investment securities | |||||||||
Our available-for-sale investment securities include highly liquid investments such as certificates of deposits with maturities between three and twelve months which are stated at fair value. | |||||||||
Held-to-maturity investment securities | |||||||||
Our held-to-maturity investments consist of investment-grade interest bearing instruments, primarily corporate bonds, which are stated at amortized cost. We do not intend to sell these investment securities and the contractual maturities are not greater than 24 months. Those with maturities less than twelve months are included in short-term investments on our consolidated balance sheets. Those with remaining maturities in excess of twelve months are included in long-term investments on our consolidated balance sheets. We did not record any material gains or losses on these securities during the years ended December 31, 2014, 2013 or 2012. The estimated fair value of these investments approximated their carrying value as of December 31, 2014 and 2013. | |||||||||
Also included in our held-to-maturity investment securities as of December 31, 2014 are deposits made to lower the interest rate on the debt secured by two aircraft as discussed in Note 2. These funds on deposit are readily available to us and are invested with a bank with a deposit maturity within the next 12 months. If we were to draw upon this deposit, the interest rates on the debt would revert to the higher rates in effect prior to the re-financing. As such, we have classified these time deposits as long-term held-to-maturity investments to reflect our intent to hold them in connection with the maturity of the associated debt. | |||||||||
The carrying values of investment securities consisted of the following at December 31, 2014 and 2013 (in millions): | |||||||||
2014 | 2013 | ||||||||
Available-for-sale securities | |||||||||
Time deposits | $ | 125 | $ | 70 | |||||
Commercial paper | — | 118 | |||||||
125 | 188 | ||||||||
Held-to-maturity securities | |||||||||
Corporate bonds | 254 | 275 | |||||||
Time deposits | 48 | 53 | |||||||
302 | 328 | ||||||||
Total | $ | 427 | $ | 516 | |||||
Derivative Instruments | |||||||||
Derivative instruments, including fuel hedge contracts, fuel basis swap agreements and interest rate swap agreements are stated at fair value, net of any collateral postings. Derivative instruments are included in other current assets and other current liabilities in our consolidated balance sheets. Refer to Note 13 for more information. | |||||||||
Inventories | |||||||||
Inventories consist of expendable aircraft spare parts and supplies that are stated at average cost as well as aircraft fuel that is accounted for on a first-in, first-out basis. These items are expensed when used or consumed. An allowance for obsolescence on aircraft spare parts is provided over the remaining useful life of the related aircraft fleet. | |||||||||
Property and Equipment | |||||||||
We record our property and equipment at cost and depreciate these assets on a straight-line basis over their estimated useful lives to their estimated residual values. We capitalize additions, modifications enhancing the operating performance of our assets, the interest related to predelivery deposits used to acquire new aircraft and the construction of our facilities. | |||||||||
Estimated useful lives and residual values for our property and equipment are as follows: | |||||||||
Estimated Useful Life | Residual Value | ||||||||
Aircraft | 25 years | 20 | % | ||||||
In-flight entertainment systems | 5-10 years | 0 | % | ||||||
Aircraft parts | Fleet life | 10 | % | ||||||
Flight equipment leasehold improvements | Lower of lease term or economic life | 0 | % | ||||||
Ground property and equipment | 2-10 years | 0 | % | ||||||
Leasehold improvements—other | Lower of lease term or economic life | 0 | % | ||||||
Buildings on leased land | Lease term | 0 | % | ||||||
Property under capital leases is initially recorded at an amount equal to the present value of future minimum lease payments which is computed on the basis of our incremental borrowing rate or, when known, the interest rate implicit in the lease. Amortization of property under capital leases is on a straight-line basis over the expected useful life and is included in depreciation and amortization expense. | |||||||||
We record impairment losses on long-lived assets used in operations when events and circumstances indicate the assets may be impaired and the undiscounted future cash flows estimated to be generated by the assets are less than the assets’ net book value. If impairment occurs, the loss is measured by comparing the fair value of the asset to its carrying amount. Impairment losses are recorded in depreciation and amortization expense. | |||||||||
Software | |||||||||
We capitalize certain costs related to the acquisition and development of computer software. We amortize these costs using the straight-line method over the estimated useful life of the software, which is generally between five and ten years. The net book value of computer software, which is included in other assets on our consolidated balance sheets, was $73 million and $70 million as of December 31, 2014 and 2013 respectively. Amortization expense related to computer software was $39 million, $18 million and $13 million for the years ended December 31, 2014, 2013 and 2012 respectively. The increase in amortization expense during 2014 is mainly due to accelerated amortization expense as a result of a change in the expected useful lives of certain software. As of December 31, 2014, amortization expense related to computer software is expected to be approximately $27 million in 2015, $15 million in 2016, $13 million in 2017, $9 million in 2018, and $5 million in 2019. | |||||||||
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., LaGuardia Airport, and JFK Airport, both in New York City as indefinite life intangible assets which results in no amortization expense. Slots at other airports are amortized on a straight-line basis over their expected useful lives of 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 $5 million and $4 million related to Slots at High Density Airports for the years ended December 31, 2013 and 2012 respectively. | |||||||||
In March 2014, we completed the purchase of 24 additional Slots at Reagan National for $75 million. We started using these Slots in the second half of 2014 and continue to announce new routes. Consistent with our accounting treatment for Slots at all High Density Airports, we have assigned these assets an indefinite life. | |||||||||
Passenger Revenue | |||||||||
Passenger revenue is recognized when the transportation is provided or after the ticket or customer credit issued upon payment of a change fee expires. It is recognized net of the taxes that we are required to collect from our customers, including federal transportation taxes, security taxes and airport facility charges. Tickets sold but not yet recognized as revenue and unexpired credits are included in air traffic liability. | |||||||||
Loyalty Program | |||||||||
We account for our customer loyalty program, TrueBlue®, by recording a liability for the estimated incremental cost of outstanding points earned from JetBlue purchases that we expect to be redeemed. The estimated cost includes incremental fuel, insurance, passenger food and supplies and reservation costs. We adjust this liability, which is included in air traffic liability, based on points earned and redeemed, points that will ultimately go unused, or breakage, changes in the estimated incremental costs associated with providing travel and changes in the TrueBlue® program. This liability was $24 million and $19 million as of December 31, 2014 and 2013, respectively. We estimate breakage based on historical point redemptions. In June 2013, we amended the program so points earned by members never expire. As a result of this change, our estimate for the breakage decreased resulting in a $5 million reduction in revenue and a corresponding increase in air traffic liability in 2013. In October 2013, we introduced the pooling of points between small groups of people, branded as Family Pooling™. We believe Family Pooling™ has not had a material impact on the breakage calculation at year-end. We did not make any changes to our frequent flyer accounting in 2014. | |||||||||
Points in TrueBlue® can also be sold to participating companies, including credit card and car rental companies. These sales are accounted for as multiple-element arrangements, with one element representing the fair value of the travel that will ultimately be provided when the points are redeemed and the other consisting of marketing related activities that we conduct with the participating company. The fair value of the transportation portion of these point sales is deferred and recognized as passenger revenue when transportation is provided. The marketing portion, which is the excess of the total sales proceeds over the estimated fair value of the transportation to be provided, is recognized in other revenue when the points are sold. TrueBlue® points sold to participating companies which are not redeemed are recognized as revenue when management determines the probability of redemption is remote. Deferred revenue was $162 million and $131 million at December 31, 2014 and 2013, respectively. We recorded no revenue related to point expirations during 2014 and $2 million, and $5 million during 2013 and 2012, respectively. | |||||||||
Upon the re-launch of the TrueBlue® program in November 2009, we extended our co-branded credit card and membership rewards participation agreements. In connection with these extensions, we received a one-time payment of $37 million, which we deferred and are recognizing as other revenue over the term of the agreement through 2015. We recognized approximately $7 million of revenue related to this one-time payment during 2014, 2013 and 2012, respectively. In connection with exclusive benefits to be introduced for our co-branded credit card, we received a one-time payment of $6 million during 2012, which we have deferred and will recognize as other revenue over the remaining term of the agreement. For the year ended December 31, 2014, we have recorded $1 million of revenue related to this one-time payment. | |||||||||
LiveTV Commercial Agreements | |||||||||
LiveTV provides in-flight entertainment solutions for various commercial airlines. These solutions include equipment and related installation as well as agreements for ongoing service and support. In June 2014, we sold LiveTV and until this time we accounted for the equipment agreements as operating leases, with related revenue recognized ratably over the term of the related customer agreement in accordance with the Revenue Recognition-Multiple-Element Arrangements topic of the Codification. This determination was principally as a result of the long term nature of these agreements and the resulting uncertainties surrounding the total costs to provide ongoing equipment maintenance and upkeep throughout the contractual term. We accounted for payments for ongoing service and support ratably over the term of the related customer contract. Before the sale of LiveTV, customer advances that were to be applied in the next 12 months were included in other current liabilities on our consolidated balance sheets while those beyond 12 months were included in other liabilities. As of December 31, 2014, no LiveTV balances are included in our consolidated balance sheets. | |||||||||
Airframe and Engine Maintenance and Repair | |||||||||
Regular airframe maintenance for owned and leased flight equipment is charged to expense as incurred unless covered by a third-party long-term flight hours service agreement. We have separate service agreements in place covering scheduled and unscheduled repairs of certain airframe line replacement unit components as well as the engines in our fleet. These agreements, whose original terms generally range from ten to 15 years, require monthly payments at rates based either on the number of cycles each aircraft was operated during each month or the number of flight hours each engine was operated during each month, subject to annual escalations. These power by the hour agreements transfer certain risks, including cost risks, to the third-party service providers. They generally fix the amount we pay per flight hour or number of cycles in exchange for maintenance and repairs under a predefined maintenance program, which are representative of the time and materials that would be consumed. These costs are expensed as the related flight hours or cycles are incurred. One of our maintenance providers is a subsidiary of a large shareholder of ours and is a related party. We recorded approximately $20 million in 2014, $19 million in 2013 and $7 million in 2012 in maintenance expense provided by this related party. | |||||||||
Advertising Costs | |||||||||
Advertising costs, which are included in sales and marketing, are expensed as incurred. Advertising expense was $64 million in 2014, $61 million in 2013 and $57 million in 2012. | |||||||||
Share-Based Compensation | |||||||||
We record compensation expense for share-based awards based on the grant date fair value of those awards. Share-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis. | |||||||||
Income Taxes | |||||||||
We account for income taxes utilizing the liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the tax and financial statement reporting bases of assets and liabilities. A valuation allowance for deferred tax assets is provided unless realizability is judged by us to be more likely than not. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. | |||||||||
New Accounting Standards | |||||||||
New accounting rules and disclosure requirements can impact our financial results and the comparability of our financial statements. The authoritative literature which has recently been issued and that we believe will impact our consolidated financial statements is described below. There are also several new proposals under development, including proposals related to leases and financial instruments. If and when enacted, these proposals may have a significant impact on our financial statements. | |||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern topic of the Codification. This standard provides specific guidance that requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. This amendment is effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter, early adoption is also permitted. We are still evaluating the new guidance and its impact, if any, on our consolidated financial statements disclosures. | |||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers topic of the Codification, which supersedes existing revenue recognition guidance. Under the new standard, a company will recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled to in exchange for those goods or services. The standard is effective for public companies for annual periods beginning after December 15, 2016, and allows for either full retrospective or modified retrospective adoption. Early adoption is not permitted. While we are still evaluating the full impact of adopting this standard on our consolidated financial statements and disclosures, we have determined that it will impact our loyalty program accounting. The new standard will no longer allow us to use the incremental cost method when recording the financial impact of points earned on JetBlue purchases and will require us to re-value our liability with a relative fair value approach. | |||||||||
In July 2013, the FASB issued ASU 2013-10, amending the Derivatives and Hedging topic of the Codification. This update permits the Federal Funds Effective Swap rate (Overnight Index Swap rate, or OIS) to be designated as a benchmark interest rate for hedging accounting purposes for all new or redesigned hedging relationships as of the issue date of the final guidance. Adoption of this standard did not have a material impact on our consolidated financial statements or notes thereto. |
Longterm_Debt_Shortterm_Borrow
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Long-term Debt, Short-term Borrowings and Capital Lease Obligations | Note 2—Long-term Debt, Short-term Borrowings and Capital Lease Obligations | ||||||||||||||||
Long-term debt and capital lease obligations and the related weighted average interest rate at December 31, 2014 and 2013 consisted of the following (in millions): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Secured Debt | |||||||||||||||||
Floating rate equipment notes, due through 2025 (1) | $ | 276 | 3.2 | % | $ | 634 | 2.8 | % | |||||||||
Floating rate enhanced equipment notes (2) (3) | |||||||||||||||||
Class G-1, due 2016 | 35 | 4.4 | % | 55 | 4.5 | % | |||||||||||
Class G-2, due 2016 | 185 | 1 | % | 373 | 1 | % | |||||||||||
Fixed rate enhanced equipment notes, due through 2023 (4) | 217 | 4.5 | % | — | — | % | |||||||||||
Fixed rate equipment notes, due through 2026 | 1,119 | 5.6 | % | 1,110 | 5.8 | % | |||||||||||
Fixed rate special facility bonds, due through 2036 (5) | 77 | 5 | % | 78 | 5 | % | |||||||||||
Unsecured Debt | |||||||||||||||||
6.75% convertible debentures due in 2039 (6) | 86 | 162 | |||||||||||||||
5.5% convertible debentures due in 2038 (7) | 68 | 68 | |||||||||||||||
Capital Leases (8) | 170 | 4.1 | % | 105 | 3.9 | % | |||||||||||
Total debt and capital lease obligations | 2,233 | 2,585 | |||||||||||||||
Less: Current maturities | (265 | ) | (469 | ) | |||||||||||||
Long-term debt and capital lease obligations | $ | 1,968 | $ | 2,116 | |||||||||||||
(1)Interest rates adjust quarterly or semi-annually based on LIBOR, plus a margin. In June 2014, we used some of the proceeds from the sale of LiveTV and prepaid $299 million of floating rate outstanding principal secured by 14 Airbus A320 aircraft which are now unencumbered. | |||||||||||||||||
(2)In November 2006, we completed a public offering of $124 million of pass-through certificates to finance a certain number of our owned aircraft spare parts. Separate trusts were established for each class of these certificates. On December 16, 2013, the remaining $119 million principal amount of the Class G-1 and Class B-1 certificates due in January 2014 were prepaid, ahead of the scheduled maturities. In April 2009, we entered into interest rate swap agreements for half of the Class G-1 certificates and all of the Class B-1 certificates in the November 2006 offering which expired in 2013. | |||||||||||||||||
(3)In March and November 2004, we completed public offerings for $431 million and $498 million respectively, of pass-through certificates. These offerings were set up in order to finance the purchase of 28 new Airbus A320 aircraft delivered through 2005. Separate trusts were established for each class of these certificates. Quarterly principal payments are required on the Class G-1 certificates. In February 2008, we entered into interest rate swap agreements for the Class G-1 certificates in the November 2004 offering. These swap agreements effectively fixed the interest rate for the remaining term of these certificates. As of December 31, 2014, these certificates had a balance of $35 million and an effective interest rate of 4.4%. The entire principal amount of the Class G-2 certificates is scheduled to be paid in a lump sum on the applicable maturity dates. In February 2009, we entered into interest rate swap agreements for the Class G-2 certificates in the November 2004 offering which expired in 2013. In March 2014, we paid the final scheduled principal payment of $188 million associated with our March 2004 EETC Class G-2 certificates. The interest rate for all other certificates is based on three month LIBOR, plus a margin. Interest is payable quarterly. | |||||||||||||||||
(4)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 previously unencumbered aircraft. Principal and interest are payable semi-annually, starting in September 2014. | |||||||||||||||||
(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. In December 2006, the New York City Industrial Development Agency issued special facility revenue bonds for JFK to us as reimbursement to us for certain airport facility construction and other costs. We recorded the principal amount of the bond, net of discounts, as long-term debt on our consolidated balance sheets because we have issued a guarantee of the debt payments on the bond. This fixed rate debt is secured by leasehold mortgages of our airport facilities. | |||||||||||||||||
(6)In June 2009, we completed a public offering for an aggregate principal amount of $115 million of 6.75% Series A convertible debentures due 2039, or the Series A 6.75% Debentures. We simultaneously completed a public offering for an aggregate principal amount of $86 million of 6.75% Series B convertible debentures due 2039, or the Series B 6.75% Debentures. These are collectively known as the 6.75% Debentures. The 6.75% Debentures are general obligations and rank equal in right of payment with all of our existing and future senior unsecured debt. They are effectively junior in right of payment to our existing and future secured debt, including our secured equipment debentures, to the extent of the value of the assets securing such debt, and senior in right of payment to any subordinated debt. In addition, the 6.75% Debentures are structurally subordinated to all existing and future liabilities of our subsidiaries. The net proceeds were approximately $197 million after deducting underwriting fees and other transaction related expenses. Interest on the 6.75% Debentures is payable semi-annually on April 15 and October 15. The first interest payment on the 6.75% Debentures was paid October 15, 2009. | |||||||||||||||||
Holders of either the Series A or Series B 6.75% Debentures may convert them into shares of our common stock at any time at a conversion rate of 204.6036 shares per $1,000 principal amount of the 6.75% Debentures. The conversion rates are subject to adjustment should we declare common stock dividends or effect any common stock splits or similar transactions. If the holders convert the Series A 6.75% Debentures in connection with a fundamental change that occured prior to October 15, 2014, the applicable conversion rate would of been increased depending on our then current common stock price. The same applies to the Series B 6.75% Debentures prior to October 15, 2016. The maximum number of shares into which all of the 6.75% Debentures are convertible, including pursuant to this make-whole fundamental change provision, is 235.2941 shares per $1,000 principal amount of the 6.75% Debentures outstanding, as adjusted, or 20.3 million shares as of December 31, 2014. | |||||||||||||||||
We may redeem any of the 6.75% Debentures for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest at any time on or after October 15, 2014 for the Series A 6.75% Debentures and October 15, 2016 for the Series B 6.75% Debentures. Holders may require us to repurchase the 6.75% Debentures for cash at a repurchase price equal to 100% of their principal amount plus accrued and unpaid interest, if any, on October 15, 2014, 2019, 2024, 2029 and 2034 for the Series A 6.75% Debentures and October 15, 2016, 2021, 2026, 2031 and 2036 for the Series B 6.75% Debentures; or at any time prior to their maturity upon the occurrence of a certain designated event. | |||||||||||||||||
During the fourth quarter of 2014, the remaining principal amount of approximately $76 million of the Series A 6.75% Debentures were converted by holders and as a result, we issued 15.5 million shares of our common stock. As of December 31, 2014, the remaining principal balance of Series B 6.75% Debentures was $86 million, which is currently convertible into 20.3 million shares of our common stock. | |||||||||||||||||
We evaluated the various embedded derivatives within the supplemental indenture for bifurcation from the 6.75% Debentures under the applicable provisions, including the basic conversion feature, the fundamental change make-whole provision and the put and call options. Based upon our detailed assessment, we concluded these embedded derivatives were either (i) excluded from bifurcation as a result of being clearly and closely related to the 6.75% Debentures or are indexed to our common stock and would be classified in stockholders’ equity if freestanding or (ii) are immaterial embedded derivatives. | |||||||||||||||||
(7)In June 2008, we completed a public offering for an aggregate principal amount of $100.6 million of 5.5% Series A convertible debentures due 2038, or the Series A 5.5% Debentures. We simultaneously completed a public offering for an aggregate principal amount of $100.6 million for 5.5% Series B convertible debentures due 2038, or the Series B 5.5% Debentures. These are collectively known as the 5.5% Debentures. The 5.5% Debentures are general senior obligations and were originally secured in part by an escrow account for each series. We deposited approximately $32 million of the net proceeds from the offering, representing the first six scheduled semi-annual interest payments on the 5.5% Debentures, into escrow accounts for the exclusive benefit of the holders of each series of the 5.5% Debentures. As of December 31, 2011, all funds originally deposited in the escrow account had been used. Interest on the 5.5% Debentures is payable on a semi-annual basis on April 15 and October 15. | |||||||||||||||||
Holders of the Series A 5.5% Debentures may convert them into shares of our common stock at any time at a conversion rate of 220.6288 shares per $1,000 principal amount of Series A 5.5% Debenture. Holders of the Series B 5.5% Debentures may convert them into shares of our common stock at any time at a conversion rate of 225.2252 shares per $1,000 principal amount of Series B 5.5% Debenture. The conversion rates are subject to adjustment should we declare common stock dividends or effect any common stock splits or similar transactions. If the holders convert the Series B 5.5% Debentures in connection with any fundamental corporate change that occurs prior to October 15, 2015 the applicable conversion rate may be increased depending upon our then current common stock price. The maximum number of shares of common stock into which all of the remaining 5.5% Debentures are convertible, including pursuant to this make-whole fundamental change provision, is 18.2 million shares. | |||||||||||||||||
We may redeem any of the 5.5% Debentures for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest at any time on or after October 15, 2015 for the Series B 5.5% Debentures. Holders may require us to repurchase the 5.5% Debentures for cash at a repurchase price equal to 100% of their principal amount plus accrued and unpaid interest, if any, on October 15, 2013, 2018, 2023, 2028, and 2033 for the Series A 5.5% Debentures and October 15, 2015, 2020, 2025, 2030, and 2035 for the Series B 5.5% Debentures; or at any time prior to their maturity upon the occurrence of a specified designated event. | |||||||||||||||||
In June 2008, in conjunction with the public offering of the 5.5% Debentures described above, we also entered into a share lending agreement with Morgan Stanley & Co. Incorporated, an affiliate of the underwriter of the offering, or the share borrower, pursuant to which we loaned the share borrower approximately 44.9 million shares of our common stock. Under the share lending agreement, the share borrower is required to return the borrowed shares when the debentures are no longer outstanding. We did not receive any proceeds from the sale of the borrowed shares by the share borrower, but we did receive a nominal lending fee of $0.01 per share from the share borrower for the use of borrowed shares. | |||||||||||||||||
Our share lending agreement requires the shares borrowed be returned upon the maturity of the related debt, October 2038, or earlier, if the debentures are no longer outstanding. We determined the fair value of the share lending arrangement was approximately $5 million at the date of the issuance based on the value of the estimated fees the shares loaned would have generated over the term of the share lending arrangement. The $5 million value was recognized as a debt issuance cost and is being amortized to interest expense through the earliest put date of the related debt, October 2013 and October 2015 for Series A and Series B, respectively. As of December 31, 2014, approximately $0.4 million of net debt issuance costs remain outstanding related to the share lending arrangement and will continue to be amortized through the earliest put date of the related debt. | |||||||||||||||||
During 2008 and 2009 approximately $79 million principal amount of the 5.5% Debentures was voluntarily converted by holders. As a result, we issued 17.5 million shares of our common stock. Cash payments from the escrow accounts related to the 2008 conversions were $11 million and borrowed shares equivalent to the number of shares of our common stock issued upon these conversions were returned to us pursuant to the share lending agreement described above. The borrower returned 10.0 million shares to us in September 2009, almost all of which were voluntarily returned shares in excess of converted shares, pursuant to the share lending agreement. In October 2011, approximately 16.6 million shares were voluntarily returned to us by the borrower, leaving 1.4 million shares outstanding under the share lending arrangement. At December 31, 2014, the fair value of similar common shares not subject to our share lending arrangement, based upon our closing stock price, was approximately $22 million. During the fourth quarter of 2013, the remaining principal amount of approximately $55 million of the Series A 5.5% Debentures was converted by holders and as a result, we issued 12.2 million shares of our common stock. As of December 31, 2014, the remaining principal balance of Series B 5.5% Debentures was $68 million, which is currently convertible into 15.2 million shares of our common stock. | |||||||||||||||||
(8)As of December 31, 2014, four capital leased Airbus A320 aircraft and two capital leased Airbus A321 aircraft were included in property and equipment at a cost of $253 million with accumulated amortization of $40 million. As of December 31, 2013, four capital leased Airbus A320 aircraft were included in property and equipment at a cost of $152 million with accumulated amortization of $33 million. The future minimum lease payments under these non-cancelable leases are $23 million in 2015, $23 million in 2016, $23 million in 2017, $23 million in 2018, $23 million in 2019 and $98 million in the years thereafter. Included in the future minimum lease payments is $43 million representing interest, resulting in a present value of capital leases of $170 million with a current portion of $15 million and a long-term portion of $155 million. | |||||||||||||||||
During 2012, we modified the debt secured by three of our Airbus A320 aircraft, effectively lowering the borrowing rates over the remaining term of the loans. In exchange for lower borrowing rates associated with two of these aircraft loans, we deposited funds equivalent to the outstanding principal balance, a total of approximately $57 million. The deposit is included in the long-term investment securities on our consolidated balance sheets. If we withdraw the funds deposited, the interest rate on the debt would revert back to the original borrowing rate. As of December 31, 2014, the remaining balance on these funds was approximately $48 million. These deposits are discussed further in Note 1. | |||||||||||||||||
As of December 31, 2014, we believe we were in compliance with all of our covenants in relation to our debt and lease agreements. Maturities of long-term debt and capital leases, including the assumption our convertible debt will be redeemed upon the first put date, for the next five years are as follows (in millions): | |||||||||||||||||
Year | Maturities | ||||||||||||||||
2015 | $ | 265 | |||||||||||||||
2016 | 464 | ||||||||||||||||
2017 | 216 | ||||||||||||||||
2018 | 227 | ||||||||||||||||
2019 | 227 | ||||||||||||||||
Thereafter | 834 | ||||||||||||||||
Aircraft, engines, and other equipment and facilities having a net book value of $3.25 billion at December 31, 2014 were pledged as security under various loan agreements. Cash payments for interest related to debt and capital lease obligations, net of capitalized interest, aggregated $102 million, $117 million and $136 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||
The carrying amounts and estimated fair values of our long-term debt at December 31, 2014 and 2013 were as follows (in millions): | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||
Public Debt | |||||||||||||||||
Floating rate enhanced equipment notes | |||||||||||||||||
Class G-1, due 2016 | $ | 35 | $ | 35 | $ | 55 | $ | 54 | |||||||||
Class G-2, due 2016 | 185 | 180 | 373 | 365 | |||||||||||||
Fixed rate special facility bonds, due through 2036 | 77 | 78 | 78 | 68 | |||||||||||||
6.75% convertible debentures due in 2039 | 86 | 283 | 162 | 297 | |||||||||||||
5.5% convertible debentures due in 2038 | 68 | 241 | 68 | 134 | |||||||||||||
Non-Public Debt | |||||||||||||||||
Fixed rate enhanced equipment notes, due through 2023 | 217 | 224 | — | — | |||||||||||||
Floating rate equipment notes, due through 2025 | 276 | 277 | 634 | 645 | |||||||||||||
Fixed rate equipment notes, due through 2026 | 1,119 | 1,211 | 1,110 | 1,161 | |||||||||||||
Total | $ | 2,063 | $ | 2,529 | $ | 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 EETC transactions 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. Refer to Note 14 for additional information on fair value. | |||||||||||||||||
We have financed certain aircraft with EETCs as one of the benefits is being able to finance several aircraft at one time, rather than individually. The structure of 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 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 consolidated financial statements. | |||||||||||||||||
Short-term Borrowings | |||||||||||||||||
We have several lines of credit which bear interest at a floating rate based upon LIBOR plus a margin range of between 1.0% and 2.75%. | |||||||||||||||||
Morgan Stanley Line of Credit | |||||||||||||||||
In July 2012, we entered into a revolving line of credit with Morgan Stanley for up to approximately $100 million. This was subsequently increased to $200 million in December 2012. This line of credit is secured by a portion of our investment securities held by them and the amount available to us under this line of credit may vary accordingly. This line of credit bears interest at a floating rate based upon LIBOR, plus a margin. As of December 31, 2014 and 2013, we did not have a balance outstanding under this line of credit. | |||||||||||||||||
Citibank Line of Credit | |||||||||||||||||
In April 2013, we entered into a Credit and Guaranty Agreement consisting of a $350 million revolving credit and letter of Credit Facility with Citibank, N.A. as the administrative agent which was scheduled to terminate in 2016. In November 2014, the available line was increased to allow for borrowings up to $400 million. Concurrent with the increase in borrowing capacity, we also extended the term of the facility by an additional two years through to April 2018. Borrowings under the Credit Facility bear interest at a variable rate equal to LIBOR, plus a margin. The Credit Facility is secured by Slots at JFK, Newark, LaGuardia and Reagan National airports as well as certain other assets. The Credit Facility includes covenants that require us to maintain certain minimum balances in unrestricted cash, cash equivalents, and unused commitments available under all revolving credit facilities. In addition, the covenants restrict our ability to incur additional indebtedness, issue preferred stock or pay dividends. As of December 31, 2014 and 2013, we did not have an outstanding balance under this line of credit. |
Operating_Leases
Operating Leases | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases [Abstract] | |||||||||||||
Operating Leases | Operating Leases | ||||||||||||
We lease aircraft, all of our facilities at the airports we serve, office space and other equipment. These leases have varying terms and conditions, with some having early termination clauses which we determine to be the lease expiration date. The length of the lease depends upon the type of asset being leased, with the latest lease expiring in 2035. Total rental expense for all operating leases was $298 million in 2014, $295 million in 2013 and $284 million in 2012. As of December 31, 2014, we have approximately $33 million in assets that serve as collateral for letters of credit. These letters of credit relate to a certain number of our leases and are included in restricted cash. | |||||||||||||
As of December 31, 2014, 60 of the 203 aircraft in our fleet were leased under operating leases, with lease expiration dates ranging from 2016 to 2026. Five of the 60 aircraft operating leases have variable rate rent payments based on LIBOR. Leases for 46 of our aircraft can generally be renewed at rates based on fair market value at the end of the lease term for one or two years. We have purchase options for 45 of our aircraft leases at the end of their lease term. These purchase options are at fair market value and have a one-time option during the term at fixed amounts that were expected to approximate the fair market value at lease inception. | |||||||||||||
We did not extend any leases on our fleet during 2014. During 2013, we extended the leases on eight Airbus A320 aircraft that were previously set to expire in 2014. These extensions resulted in an additional $42 million of lease commitments through 2022. During 2012, we extended the leases on three Airbus A320 aircraft that were previously set to expire in 2013. These extensions resulted in an additional $24 million of lease commitments through 2018. During 2010, we leased six used Airbus A320 aircraft from a third party, each with a separate six year operating lease term. 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. | |||||||||||||
Future minimum lease payments under noncancelable operating leases, including those described above, with initial or remaining terms in excess of one year at December 31, 2014, are as follows (in millions): | |||||||||||||
Aircraft | Other | Total | |||||||||||
2015 | $ | 150 | $ | 85 | $ | 235 | |||||||
2016 | 90 | 80 | 170 | ||||||||||
2017 | 75 | 65 | 140 | ||||||||||
2018 | 75 | 60 | 135 | ||||||||||
2019 | 58 | 57 | 115 | ||||||||||
Thereafter | 213 | 487 | 700 | ||||||||||
Total minimum operating lease payments | $ | 661 | $ | 834 | $ | 1,495 | |||||||
In the past we have entered into sale-leaseback arrangements with a third party lender for 45 of our operating aircraft. The sale-leasebacks occurred simultaneously with the delivery of the related aircraft to us from their manufacturers. Each sale-leaseback transaction was structured with a separate trust set up by the third party lender, the assets of which consist of the one aircraft initially transferred to it following the sale by us and the subsequent lease arrangement with us. Because of their limited capitalization and the potential need for additional financial support, these trusts are VIEs as defined in the Consolidations topic of the Codification and must be considered for consolidation in our financial statements. Our assessment of each trust considers both quantitative and qualitative factors, including whether we have the power to direct the activities and to what extent we participate in the sharing of benefits and losses of the trusts. JetBlue does not retain any equity interests in any of these trusts and our obligations to them are limited to the fixed rental payments we are required to make to them. These were approximately $585 million as of December 31, 2014 and are reflected in the future minimum lease payments in the table above. Our only interest in these entities is the purchase options to acquire the aircraft as specified above. Since there are no other arrangements, either implicit or explicit, between us and the individual trusts that would result in our absorbing additional variability from the trusts, we concluded we are not the primary beneficiary of these trusts. We account for these leases as operating leases, following the appropriate lease guidance as required by the Leases topic in the Codification. |
JFK_Terminal_5
JFK Terminal 5 | 12 Months Ended |
Dec. 31, 2014 | |
JFK Terminal Five [Abstract] | |
JFK Terminal 5 | JFK Terminal 5 |
We operate out of T5 at JFK and our occupancy is governed by various lease agreements with the PANYNJ. Under the terms of the facility lease agreement we were responsible for the construction of the 635,000 square foot 26-gate terminal, a parking garage, roadways and an AirTrain Connector, all of which are owned by the PANYNJ and collectively referred to as the T5 Project. In 2012, we commenced construction on an expansion to T5, referred to as T5i, for an international arrivals facility and additional gates. The construction of T5i was completed in November 2014, with the first international flight using the facilities on November 12, 2014. T5i includes six international arrival gates comprised of three new gates and three converted gates from T5, as well as an international arrivals hall with full U.S. Customs and Border Protection services. | |
We executed an extension to the original T5 lease in 2013. The lease, as amended, now incorporates a total of approximately 19 acres of space for our T5 facilities and ends on the 28th anniversary of the date of beneficial occupancy of T5i. We have the option to terminate the agreement in 2033, five years prior to the end of the original scheduled lease term of October 2038. We are responsible for various payments under the leases, including ground rents which are reflected in the future minimum lease payments table in Note 3, and facility rents which are included below. The facility rents are based upon the number of passengers enplaned out of the terminal, subject to annual minimums. | |
We were considered the owner of the T5 Project for financial reporting purposes only and have been required to reflect an asset and liability for the T5 Project on our consolidated balance sheets since construction commenced in 2005. The cost of the T5 Project and the related liability are being accounted for as a financing obligation. Our construction of T5i is accounted for at cost with no financing obligation. | |
Total costs incurred for the elements of the T5 Project were $637 million, of which $561 million is classified as Assets Constructed for Others and the remaining $76 million is classified as leasehold improvements in our consolidated balance sheets. Assets Constructed for Others are being amortized over the shorter of the 25 years non-cancelable lease term or their economic life. We recorded amortization expense of $23 million in 2014, 2013 and 2012 respectively. Our expenditure relating to T5i is approximately $190 million, of which approximately $102 million was incurred in 2014 and is classified as leasehold improvements in our consolidated balance sheets. | |
The PANYNJ has reimbursed us for the amounts currently included in Assets Constructed for Others. These reimbursements and related interest are reflected as Construction Obligation in our consolidated balance sheets. When the facility rents are paid they are treated as a debt service on the Construction Obligation, with the portion not relating to interest reducing the principal balance. Minimum estimated facility payments including escalations associated with the facility lease are estimated to be $40 million per year in 2015 through 2019 and $576 million thereafter. The portion of these scheduled payments serving to reduce the principal balance of the Construction Obligation is $15 million in 2015, $15 million in 2016, $16 million in 2017, $17 million in 2018 and $18 million in 2019. Payments could exceed these amounts depending on future enplanement levels at JFK. Scheduled facility payments representative of interest totaled $26 million in 2014, and $27 million in 2013 and 2012 respectively. | |
We sublease portions of T5 including space for concessionaires, the airspace lounge and the TSA facilities. Two of our airline commercial partners, Hawaiian Airlines and Aer Lingus, operate from this terminal and sublease facilities from us. Minimum lease payments due to us are subject to various escalation amounts through 2024. Future minimum lease payments due to us during each of the next five years are estimated to be $13 million per year in each of 2015 through 2018 and $6 million in 2019. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity |
In September 2012, our Board of Directors authorized a share repurchase program for up to 25 million shares of common stock over a five year period. The repurchases may be commenced or suspended from time to time without prior notice. During the fourth quarter of 2012, we repurchased approximately 4.1 million shares of our common stock for approximately $23 million. During 2013, we repurchased approximately 0.5 million shares of our common stock for approximately $3 million. During April and May 2014, we repurchased approximately 1.6 million shares of our common stock for approximately $13 million. On May 29, 2014, we announced that we had entered into an accelerated share repurchase agreement, or ASR, with JP Morgan, paying $60 million for approximately 5.1 million shares. On September 9, 2014, the term of the ASR concluded with JP Morgan delivering approximately 0.4 million more shares to JetBlue. This resulted in a total of approximately 5.5 million shares being repurchased under the ASR, based upon the volume weighted average prices of JetBlue's common stock during the term of the ASR. As of December 31, 2014, 13.3 million shares remain available for repurchase under the share repurchase program. | |
As of December 31, 2014, we had a total of 60.8 million shares of our common stock reserved for issuance related to our equity incentive plans, our convertible debt, and our share lending facility. Refer to Note 7 for further details on our share-based compensation. | |
As of December 31, 2014, we had a total of 59.0 million shares of treasury stock, the majority of which relate to the return of borrowed shares under our share lending agreement. Refer to Note 2 for further details on the share lending agreement. The treasury stock also include shares that were repurchased under our share repurchase program described above. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 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 for the years ended December 31 (dollars and share data in millions): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 401 | $ | 168 | $ | 128 | |||||||
Effect of dilutive securities: | |||||||||||||
Interest on convertible debt, net of income taxes and profit sharing | 7 | 9 | 9 | ||||||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ | 408 | $ | 177 | $ | 137 | |||||||
Denominator: | |||||||||||||
Weighted average shares outstanding for basic earnings per share | 294.7 | 282.8 | 282.3 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options and restricted stock units | 2.4 | 2.1 | 1.2 | ||||||||||
Convertible debt | 46.2 | 58.6 | 60.6 | ||||||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 343.3 | 343.5 | 344.1 | ||||||||||
Shares excluded from EPS calculation: | |||||||||||||
Shares issuable upon conversion of our convertible debt as assumed conversion would be antidilutive | — | — | — | ||||||||||
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | 6.9 | 13.8 | 19.5 | ||||||||||
As of December 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 in Note 2, 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 December 31, 2014, was approximately $22 million. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation | |||||||||||||||||||||
We have various equity incentive plans under which we have granted stock awards to our eligible Crewmembers and members of our Board of Directors. These include the JetBlue Airways Corporation 2002 Stock Incentive Plan, and the Restated and Amended 2002 Stock Incentive Plan which were replaced by the JetBlue Airways Corporation 2011 Incentive Compensation Plan. We additionally have an employee stock purchase plan which we refer to as the Crewmember Stock Purchase Plan, or CSPP, that is available to all eligible Crewmembers. | ||||||||||||||||||||||
Unrecognized stock-based compensation expense was approximately $13 million as of December 31, 2014, and related to a total of 3.8 million unvested restricted stock units, or RSUs, under our 2011 Plan. We expect to recognize this stock-based compensation expense over a weighted average period of approximately two years. | ||||||||||||||||||||||
2011 Incentive Compensation Plan | ||||||||||||||||||||||
At our Annual Shareholders Meeting held on May 26, 2011, our shareholders approved the JetBlue Airways Corporation 2011 Incentive Compensation Plan, or 2011 Plan. This replaced the Restated and Amended 2002 Stock Incentive Plan, or 2002 Plan, which was set to expire at the end of 2011. Upon inception, the 2011 Plan had 15.0 million shares of our common stock reserved for issuance. The 2011 Plan, by its terms, will terminate no later than May 2021. The RSUs vest in annual installments over three years which can be accelerated upon the occurrence of a change in control. Under this plan, we grant RSUs to certain Crewmembers and members of our Board of Directors. Our policy is to grant RSUs based on the market price of the underlying common stock on the date of grant. Under this plan we grant deferred stock units, or DSUs, to members of our Board of Directors and performance stock units, or PSUs, to certain members of our executive leadership team. | ||||||||||||||||||||||
The 2011 Plan was amended and restated effective January 1, 2014, to include the definition of retirement eligibility. Once a Crewmember meets the definition they will continue to vest their shares as if they remained employed by JetBlue, regardless of their actual employment status with the Company. In accordance with the Compensation-Stock Compensation topic of the Codification, the grant’s explicit service condition is non-substantive and the grant has effectively vested at the time retirement eligibility is met. | ||||||||||||||||||||||
The following is a summary of RSU activity under the 2011 Plan for the year ended December 31: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||
Nonvested at beginning of year | 4,118,849 | $ | 5.94 | 2,483,664 | $ | 5.77 | 65,914 | $ | 5.08 | |||||||||||||
Granted | 1,930,851 | 8.62 | 2,653,842 | 6.08 | 2,570,891 | 5.79 | ||||||||||||||||
Vested | (1,903,229 | ) | 5.97 | (828,291 | ) | 5.77 | (20,249 | ) | 5.09 | |||||||||||||
Forfeited | (361,385 | ) | 7.02 | (190,366 | ) | 5.82 | (132,892 | ) | 5.83 | |||||||||||||
Nonvested at end of year | 3,785,086 | $ | 7.18 | 4,118,849 | $ | 5.94 | 2,483,664 | $ | 5.77 | |||||||||||||
The total intrinsic value, determined as of the date of vesting, for all RSUs under both Plans that vested and converted to shares of common stock during the year ended December 31, 2014, 2013 and 2012 was $23 million, $13 million and $11 million respectively. | ||||||||||||||||||||||
The vesting period for DSUs under the 2011 Plan is either one or three years of service. Once vested, shares are issued six months and one day following the Director’s departure from the Board. During the years ended December 31, 2014, 2013 and 2012, we granted an immaterial amount of DSUs, almost all of which remain outstanding at December 31, 2014. In 2014 and 2013, we granted immaterial PSUs to members of our executive leadership team which are based upon certain performance criteria. | ||||||||||||||||||||||
Amended and Restated 2002 Stock Incentive Plan | ||||||||||||||||||||||
The 2002 Plan included stock options issued during 1999 through 2001 under a previous plan as well as all options issued from 2002 through adoption of the 2011 Plan. It provided for incentive and non-qualified stock options and RSUs to be granted to certain Crewmembers and members of our Board of Directors. Additionally, it provided for DSUs to be granted to members of our Board of Directors. The 2002 Plan became effective following our initial public offering in April 2002. We began issuing RSUs from 2007 and DSUs from 2008. Prior to 2011, the DSUs vested immediately upon being granted. The RSUs vested in annual installments over three years which could be accelerated upon the occurrence of a change in control as defined in the 2002 Plan. Our policy to grant RSUs was based on the market price of the underlying common stock on the date of grant. No additional grants were made from this plan after the adoption of the 2011 Plan. | ||||||||||||||||||||||
The following is a summary of RSU activity under the 2002 Plan for the year ended December 31: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||
Nonvested at beginning of year | 711,494 | $ | 6 | 2,029,081 | $ | 5.85 | 4,093,484 | $ | 5.64 | |||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||
Vested | (708,728 | ) | 6 | (1,257,045 | ) | 5.76 | (1,921,940 | ) | 5.41 | |||||||||||||
Forfeited | (2,766 | ) | 6.03 | (60,542 | ) | 5.99 | (142,463 | ) | 5.76 | |||||||||||||
Nonvested at end of year | — | $ | — | 711,494 | $ | 6 | 2,029,081 | $ | 5.85 | |||||||||||||
Stock Options | ||||||||||||||||||||||
All options issued under the 2002 Plan expire ten years from the date of grant, with the last options vesting in 2012. Our policy is to grant options with an exercise price equal to the market price of the underlying common stock on the date of grant. | ||||||||||||||||||||||
The following is a summary of stock option activity for the years ended December 31: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | |||||||||||||||||
Outstanding at beginning of year | 11,384,688 | $ | 13.45 | 15,845,124 | $ | 14.87 | 21,807,170 | $ | 13.91 | |||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||
Exercised | (1,950,482 | ) | 11.58 | (10,800 | ) | 7.79 | (493,731 | ) | 4 | |||||||||||||
Forfeited | — | — | — | — | — | — | ||||||||||||||||
Expired | (3,456,986 | ) | 16.38 | (4,449,636 | ) | 18.5 | (5,468,315 | ) | 12.03 | |||||||||||||
Outstanding at end of year | 5,977,220 | $ | 12.38 | 11,384,688 | $ | 13.45 | 15,845,124 | $ | 14.87 | |||||||||||||
Vested at end of year | 5,977,220 | $ | 12.38 | 11,384,688 | $ | 13.45 | 15,845,124 | $ | 14.87 | |||||||||||||
The following is a summary of outstanding stock options at December 31, 2014: | ||||||||||||||||||||||
Options Outstanding, Vested & Exercisable | ||||||||||||||||||||||
Range of exercise prices | Shares | Weighted average remaining contractual life (years) | Weighted average exercise price | Aggregate intrinsic value (millions) | ||||||||||||||||||
$7.79 to $15.27 | 5,977,220 | 1.3 | $ | 12.38 | $ | 22 | ||||||||||||||||
5,977,220 | $ | 22 | ||||||||||||||||||||
The total intrinsic value, determined as of the date of exercise, of options exercised was $5 million during the year ended December 31, 2014, less than $1 million during the year ended December 31, 2013, and $1 million during the year ended December 31, 2012. Amounts received in cash for options exercised were $22 million for the year ended December 31, 2014, less than $1 million during the year ended December 31, 2013, and $2 million during the year ended December 31, 2012. We have not granted any stock options since 2008 and those previously granted became fully expensed in 2012. The total fair value of stock options vested was approximately $2 million during 2012. Following shareholder approval of the 2011 Plan, we stopped using equity under the 2002 Plan. | ||||||||||||||||||||||
Crewmember Stock Purchase Plan | ||||||||||||||||||||||
In May 2011, our shareholders also approved the 2011 Crewmember Stock Purchase Plan, or the 2011 CSPP, to replace the original CSPP which was set to expire in April 2012. At inception, the 2011 CSPP had 8.0 million shares of our common stock reserved for issuance. The 2011 CSPP, by its terms, will terminate no later than the last business day of April 2021. | ||||||||||||||||||||||
The following is a summary of share activity under the 2011 CSPP for the year ended December 31: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Available for future purchases, beginning of year | 4,855,144 | 6,436,224 | 8,000,000 | |||||||||||||||||||
Common stock purchased | (2,332,823 | ) | $ | 8.04 | (1,581,080 | ) | $ | 6.2 | (1,563,776 | ) | $ | 4.75 | ||||||||||
Available for future purchases, end of year | 2,552,321 | 4,855,144 | 6,436,224 | |||||||||||||||||||
The 2011 CSPP has a series of six month offering periods, with a new offering period beginning on the first business day of May and November each year. Crewmembers can only join an offering period on the start date. Crewmembers may contribute up to 10% of their pay towards the purchase of common stock via payroll deductions. Purchase dates occur on the last business day of April and October each year. | ||||||||||||||||||||||
Until April 2013, our 2011 CSPP was considered non-compensatory as the purchase price discount was 5% based upon the stock price on the date of purchase. The plan was amended and restated in May 2013 with the CSPP purchase price discount increasing to 15% based upon the stock price on the date of purchase. In accordance with the Compensation-Stock Compensation topic of the Codification, the 2011 CSPP no longer meets the non-compensatory definition as the terms of the plan are more favorable than those to all holders of the common stock. For all offering periods starting after May 1, 2013, the compensation cost relating to the discount is recognized over the offering period. The total expense recognized relating to the 2011 CSPP was approximately $3 million and $2 million for the years ended December 31, 2014 and 2013 respectively. | ||||||||||||||||||||||
Should we be acquired by merger or sale of substantially all of our assets or sale of more than 50% of our outstanding voting securities, all outstanding purchase rights will automatically be exercised immediately prior to the effective date of the acquisition at a price equal to 85% of the fair market value per share immediately prior to the acquisition. | ||||||||||||||||||||||
Taxation | ||||||||||||||||||||||
The Compensation-Stock Compensation topic of the Codification requires deferred taxes be recognized on temporary differences that arise with respect to stock-based compensation attributable to nonqualified stock options and awards. However, no tax benefit is recognized for stock-based compensation attributable to incentive stock options, or ISO, or CSPP shares until there is a disqualifying disposition, if any, for income tax purposes. A portion of our stock-based compensation is attributable to ISO and CSPP shares; therefore, our effective tax rate is subject to fluctuation. | ||||||||||||||||||||||
LiveTV sale | ||||||||||||||||||||||
In June 2014, we sold our subsidiary LiveTV and accelerated the vesting for all RSUs outstanding for LiveTV employees. The total expense recognized relating to this acceleration was less than $1 million. |
LiveTV
LiveTV | 12 Months Ended |
Dec. 31, 2014 | |
Live TV Disclosures [Abstract] | |
LiveTV | LiveTV |
LiveTV, LLC, formerly a wholly owned subsidiary of JetBlue, provides in-flight entertainment and connectivity solutions for various commercial airlines including JetBlue. On June 10, 2014, JetBlue entered into an amended and restated purchase agreement with Thales Holding Corporation, or Thales, replacing the original purchase agreement between the parties dated as of March 13, 2014. Under the terms of the amended and restated purchase agreement, JetBlue sold LiveTV to Thales for $399 million, subject to purchase adjustments based upon the amount of cash, indebtedness, and working capital of LiveTV at the closing date of the transaction relative to a target amount. Excluded from this sale was LiveTV Satellite Communications, LLC, which was retained by JetBlue pending receipt of the necessary regulatory approvals for the sale. On September 25, 2014, JetBlue received all necessary regulatory approvals and sold LiveTV Satellite Communications, LLC, to Thales for approximately $1 million in cash. | |
The total cash proceeds of $393 million reflect the agreed upon purchase price, net of purchase agreement adjustments including post-closing purchase price adjustments, which were finalized during the third quarter of 2014. The sale resulted in a pre-tax gain of approximately $241 million and is net of approximately $19 million in transactions costs. The gain on the sale has been reported as a separate line item in the consolidated statement of operations for the year ended December 31, 2014. | |
The tax expense recorded in connection with this transaction totaled $72 million, net of a $19 million tax benefit related to the utilization of a capital loss carryforward. The capital gain generated from the sale of LiveTV resulted in the release of a valuation allowance related to the capital loss deferred tax asset. This resulted in an after tax gain on the sale of approximately $169 million. | |
Following the close of the sales on June 10, 2014, and on September 25, 2014, the applicable LiveTV operations are no longer being consolidated as a subsidiary in JetBlue's consolidated financial statements. The effect of this reporting structure change is not material to the consolidated financial statements presented. LiveTV third party revenues in 2014 up to the date of sale were $30 million, compared to $72 million in 2013 and $81 million in 2012. In December 2011, LiveTV terminated its contract with one of its airline customers and upon fulfilling its obligation to deactivate service on the customer's aircraft, recorded a gain of $8 million in other operating expenses in 2012. | |
Deferred profit on hardware sales and advance deposits for future hardware sales were included in other accrued liabilities and other long term liabilities on our consolidated balance sheets depending on whether we expected to recognize it in the next 12 months or beyond. No deferred profit is recognized in our consolidated balance sheets as of December 31, 2014, compared to $42 million as of December 31, 2013. There is no net book value of equipment installed for other airlines in our consolidated balance sheets as of December 31, 2014, compared to $102 million as of December 31, 2013. | |
JetBlue expects to continue to be a significant customer of LiveTV. Concurrent with the LiveTV sale, the parties have entered into two agreements, each with seven year terms pursuant to which LiveTV continues to provide JetBlue with in-flight entertainment and onboard connectivity products and services. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The provision for income taxes consisted of the following for the years ended December 31 (in millions): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Deferred: | |||||||||||||
Federal | $ | 192 | $ | 95 | $ | 68 | |||||||
State | 20 | 12 | 8 | ||||||||||
Deferred income tax expense | 212 | 107 | 76 | ||||||||||
Current income tax expense | 10 | 4 | 5 | ||||||||||
Total income tax expense | $ | 222 | $ | 111 | $ | 81 | |||||||
The effective tax rate on income before income taxes differed from the federal income tax statutory rate for the years ended December 31 for the following reasons (in millions): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense at statutory rate | $ | 218 | $ | 98 | $ | 73 | |||||||
Increase resulting from: | |||||||||||||
State income tax, net of federal benefit | 18 | 9 | 6 | ||||||||||
Valuation Allowance, federal and state | (19 | ) | — | — | |||||||||
Other, net | 5 | 4 | 2 | ||||||||||
Total income tax expense | $ | 222 | $ | 111 | $ | 81 | |||||||
Cash payments for income taxes were $8 million in 2014, $4 million in 2013 and $4 million in 2012. The net deferred taxes below include a current net deferred tax asset of $174 million and a long-term net deferred tax liability of $832 million at December 31, 2014, and a current net deferred tax asset of $120 million and a long-term net deferred tax liability of $605 million at December 31, 2013. | |||||||||||||
The components of our deferred tax assets and liabilities as of December 31 are as follows (in millions): | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 152 | $ | 157 | |||||||||
Employee benefits | 41 | 40 | |||||||||||
Deferred revenue/gains | 102 | 95 | |||||||||||
Rent expense | 30 | 24 | |||||||||||
Terminal 5 lease | 32 | 29 | |||||||||||
Capital loss carryforwards | — | 20 | |||||||||||
Other | 27 | 31 | |||||||||||
Valuation allowance | — | (20 | ) | ||||||||||
Financial derivative instruments | 40 | 1 | |||||||||||
Deferred tax assets, net | 424 | 377 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Accelerated depreciation | (1,082 | ) | (862 | ) | |||||||||
Deferred tax liabilities, net | (1,082 | ) | (862 | ) | |||||||||
Net deferred tax liability | $ | (658 | ) | $ | (485 | ) | |||||||
As of December 31, 2014, we had U.S. Federal regular and alternative minimum tax net operating loss, or NOL, carryforwards of $446 million and $410 million, respectively, which begin to expire in 2025. In addition, as of December 31, 2014, we had deferred tax assets associated with state NOLs of $7 million, which begin to expire in 2020. Our NOL carryforwards as of December 31, 2014 include an unrecorded benefit of approximately $9 million related to stock-based compensation that will be recorded in equity when, and to the extent, realized. Section 382 of the Internal Revenue Code imposes limitations on a corporation’s ability to use its NOL carryforwards if it experiences an “ownership change.” As of December 31, 2014, our valuation allowance did not include any amounts attributable to this limitation; however, if an “ownership change” were to occur in the future, the ability to use our NOLs could be limited. | |||||||||||||
In evaluating the realizability of the deferred tax assets, we assess whether it is more likely than not that some portion, or all, of the deferred tax assets, will be realized. We consider, among other things, the generation of future taxable income, including reversals of deferred tax liabilities, during the periods in which the related temporary differences will become deductible. The capital gain generated from the sale of our subsidiary, LiveTV, in June 2014 resulted in the release of a $19 million valuation allowance related to the capital loss deferred tax asset. We have concluded that no valuation allowance is required as of December 31, 2014. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follow (in millions): | |||||||||||||
Unrecognized tax benefits December 31, 2011 | 12 | ||||||||||||
Increases for tax positions taken during the period | 1 | ||||||||||||
Unrecognized tax benefits December 31, 2012 | 13 | ||||||||||||
Increases for tax positions taken during the period | 2 | ||||||||||||
Decreases for settlement with tax authorities during the period | (4 | ) | |||||||||||
Unrecognized tax benefits December 31, 2013 | 11 | ||||||||||||
Increases for tax positions taken during a prior period | 2 | ||||||||||||
Increases for tax positions taken during the period | 4 | ||||||||||||
Decreases for tax positions taken during a prior period | (1 | ) | |||||||||||
Unrecognized tax benefits December 31, 2014 | 16 | ||||||||||||
Interest and penalties accrued on unrecognized tax benefits were not significant. If recognized, $12 million of the unrecognized tax benefits as of December 31, 2014 would impact our effective tax rate. We do not expect any significant change in the amount of the unrecognized tax benefits within the next twelve months. As a result of NOLs and statute of limitations in our major tax jurisdictions, years 2002 through 2013 remain subject to examination by the relevant tax authorities. |
Employee_Retirement_Plan
Employee Retirement Plan | 12 Months Ended |
Dec. 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 Crewmembers. In 2014, we matched 100% of our Crewmember contributions up to 5% of their compensation. The contributions vest over five years and are measured from an Crewmember’s hire date. Participants are immediately vested in their voluntary contributions. | |
Another component of the Plan is a Company discretionary contribution of 5% of eligible non-management Crewmember compensation, which we refer to as Retirement Plus. Retirement Plus contributions vest over three years and are measured from a Crewmember’s hire date. Our non-management Crewmembers are also eligible to receive profit sharing, calculated as 15% of adjusted pre-tax income and reduced by the Retirement Plus contributions and special items. Certain FAA-licensed Crewmembers 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 in 2014, 2013 and 2012 were $119 million, $94 million and $73 million, respectively. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments |
Flight Equipment Commitments | |
As of December 31, 2014, our firm aircraft orders consisted of 33 Airbus A321 aircraft, 25 Airbus A320 new engine option (A320neo) aircraft, 45 Airbus A321neo aircraft, 24 EMBRAER 190 aircraft and ten spare engines scheduled for delivery through 2023. Committed expenditures for these aircraft and related flight equipment, including estimated amounts for contractual price escalations and predelivery deposits, will be approximately $610 million in 2015, $545 million in 2016, $595 million in 2017, $520 million in 2018, $935 million in 2019 and $3.5 billion thereafter. We are scheduled to receive 12 new Airbus A321 aircraft in 2015. Dependent on market conditions, we anticipate paying cash for the 12 Airbus A321 aircraft scheduled for delivery in 2015. | |
In November 2014, we amended our purchase agreement with Airbus by deferring 13 Airbus A321 aircraft orders and eight Airbus A320 aircraft orders from 2016-2020 to 2020-2023. Of these deferrals, ten A321 aircraft orders were converted to Airbus A321 new engine option (A321neo) orders and five A320neo aircraft orders were converted to Airbus A321neo aircraft orders. We additionally converted three Airbus A320 aircraft orders in 2016 to Airbus A321 aircraft orders. In October 2013, we amended our purchase agreements with both Embraer and Airbus. We deferred 24 EMBRAER 190 aircraft from 2014-2018 to 2020-2022. We converted eight existing A320 orders to A321 orders and ten A320neo orders to A321neo orders. We incrementally ordered 15 A321 aircraft for delivery between 2015 and 2017 and 20 A321neo aircraft for delivery between 2018 and 2020. | |
Other Commitments | |
We utilize several credit card processors to process our ticket sales. Our agreements with these processors do not contain covenants, but do generally allow the processor to withhold cash reserves to protect the processor for potential liability for tickets purchased, but not yet used for travel. While we currently do not have any collateral requirements related to our credit card processors, we may be required to issue collateral to our credit card processors, or other key vendors, in the future. | |
As of December 31, 2014, we had approximately $24 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. | |
As part of the sale of LiveTV, refer to Note 8, a $3 million liability relating to Airfone was assigned to JetBlue as part of the purchase agreement. Separately, prior to the sale of LiveTV, JetBlue had an agreement with ViaSat Inc. through 2020 relating to in-flight broadband connectivity technology on our aircraft. That agreement stipulated 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, these commitments to ViaSat Inc. were assigned to LiveTV and JetBlue entered into two new service agreements with LiveTV pursuant to which LiveTV will provide in-flight entertainment and connectivity services to JetBlue for a minimum of seven years. | |
Except for our pilots, our Crewmembers do not have third-party representation. In April 2014, JetBlue pilots elected to be solely represented by ALPA. The NMB certified ALPA as the representative body for JetBlue pilots and we plan to work with ALPA to reach our first collective bargaining agreement. We enter into individual employment agreements with each of our non-unionized FAA-licensed Crewmembers which include dispatchers, technicians and inspectors as well as air traffic controllers. Each employment agreement is for a term of 5 years and automatically renews for an additional five-year term unless either the Crewmember or we elect not to renew it by giving at least 90 days notice before the end of the relevant term. Pursuant to these agreements, these Crewmembers can only be terminated for cause. In the event of a downturn in our business that would require a reduction in work hours, we are obligated to pay these Crewmembers a guaranteed level of income and to continue their benefits if they do not obtain other aviation employment. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
We self-insure a portion of our losses from claims related to workers’ compensation, environmental issues, property damage, medical insurance for employees and general liability. Losses are accrued based on an estimate of the ultimate aggregate liability for claims incurred, using standard industry practices and our actual experience. | |
We are a party to many routine contracts under which we indemnify third parties for various risks. These indemnities consist of the following: | |
All of our bank loans, including our aircraft and engine mortgages, contain standard provisions present in loans of this type. These provisions obligate us to reimburse the bank for any increased costs associated with continuing to hold the loan on our books which arise as a result of broadly defined regulatory changes, including changes in reserve requirements and bank capital requirements. These indemnities would have the practical effect of increasing the interest rate on our debt if they were to be triggered. In all cases, we have the right to repay the loan and avoid the increased costs. The term of these indemnities matches the length of the related loan up to 15 years. | |
Under both aircraft leases with foreign lessors and aircraft and engine mortgages with foreign lenders, we have agreed to customary indemnities concerning withholding tax law changes. Under these contracts we are responsible, should withholding taxes be imposed, for paying such amount of additional rent or interest as is necessary to ensure that the lessor or lender still receives, after taxes, the rent stipulated in the lease or the interest stipulated under the loan. The term of these indemnities matches the length of the related lease up to 20 years. | |
We have various leases with respect to real property as well as various agreements among airlines relating to fuel consortia or fuel farms at airports. Under these contracts we have agreed to standard language indemnifying the lessor against environmental liabilities associated with the real property or operations described under the agreement, even if we are not the party responsible for the initial event that caused the environmental damage. In the case of fuel consortia at airports, these indemnities are generally joint and several among the participating airlines. We have purchased a standalone environmental liability insurance policy to help mitigate this exposure. Our existing aviation hull and liability policy includes some limited environmental coverage when a cleanup is part of an associated single identifiable covered loss. | |
Under certain contracts, we indemnify specified parties against legal liability arising out of actions by other parties. The terms of these contracts range up to 25 years. Generally, we have liability insurance protecting ourselves for the obligations we have undertaken relative to these indemnities. | |
Upon the sale of LiveTV to Thales in June 2014, refer to Note 8 for more information, we transferred certain contingencies to Thales. These included product warranties and LiveTV indemnities against any claims which may of been brought against its customers. These indemnities related to allegations of patent, trademark, copyright or license infringement as a result of the use of the LiveTV system. | |
Under a certain number of our operating lease agreements we are required to restore certain property or equipment to its original form upon expiration of the related agreement. We have recorded the estimated fair value of these retirement obligations of approximately $6 million as of December 31, 2014. This liability may increase over time. | |
We are unable to estimate the potential amount of future payments under the foregoing indemnities and agreements. | |
Environmental Liability | |
Many aspects of airlines’ operations are subject to increasingly stringent federal, state, local, and foreign laws protecting the environment. Since the domestic airline industry is increasingly price sensitive we may not be able to recover the cost of compliance with new or more stringent environmental laws and regulations from our passengers which could adversely affect our business. Although it is not expected that the costs of complying with current environmental regulations will have a material adverse effect on our financial position, results of operations or cash flows, no assurance can be made that the costs of complying with environmental regulations in the future will not have such an effect. The impact to us and our industry from such actions is likely to be adverse and could be significant, particularly if regulators were to conclude that emissions from commercial aircraft cause significant harm to the upper atmosphere or have a greater impact on climate change than other industries. | |
In 2012, during performance of 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 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. An estimate indicated costs of remediation could range from approximately $1 million up to $3 million. As of December 31, 2014, we had accrued $2 million for current estimates of remediation costs, which is included in current liabilities on our 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 will mitigate most 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 consolidated financial position, 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 to 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 (the "AAA") 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. 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. In early July 2014, the AAA issued the arbitrator's Final Award, awarding 318 of the 972 Claimants a total of approximately $4.4 million, including interest, from which applicable tax withholdings must be further deducted. In January 2015, the New York State Supreme Court justice confirmed the arbitrator's Final Award and denied Claimants' motion to vacate the award. | |
As the amount of damages awarded to the Claimants in the Final Award has been confirmed by the Court, 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 litigation 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. In its pleadings, 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. At the present time it is not possible to assess the likelihood of loss. As part of the sale of LiveTV, JetBlue agreed to indemnify Thales for certain losses and retained certain rights to potential recovery received as a result of the Counterclaims asserted against WestJet, refer to Note 8 for additional information. | |
ALPA. In April 2014, JetBlue pilots elected to be solely represented by the Air Line Pilots Association, or ALPA. The National Mediation Board, or NMB, certified ALPA as the representative body for JetBlue pilots and we plan to 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. | |
Litigation Recovery. During December 2014, JetBlue reached an agreement with respect to the settlement of a commercial dispute. JetBlue recorded a benefit of $7.5 million related to this matter. |
Financial_Derivative_Instrumen
Financial Derivative Instruments and Risk Management | 12 Months Ended | ||||||||||||||||||||
Dec. 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 volatility 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. It 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 the underlying fuel is consumed. | |||||||||||||||||||||
Ineffectiveness can occur 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 December 31, 2014, related to our outstanding fuel hedging contracts that were designated as cash flow hedges for accounting purposes. | |||||||||||||||||||||
Jet fuel swap | Jet fuel collar agreements | Heating oil collar agreements | Total | ||||||||||||||||||
agreements | |||||||||||||||||||||
First Quarter 2015 | 10% | 10% | —% | 20% | |||||||||||||||||
Second Quarter 2015 | 10% | 10% | —% | 20% | |||||||||||||||||
Third Quarter 2015 | 5% | —% | 9% | 14% | |||||||||||||||||
Fourth Quarter 2015 | 5% | —% | 10% | 15% | |||||||||||||||||
Starting in the second quarter of 2014, we entered into basis swap transactions that will settle in early 2015. These basis swaps have not been designated as cash flow hedges for accounting purposes and as a result are marked to market in earnings each period. As of December 31, 2014, the fair value recorded for these contracts was not material. | |||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||
The interest rate swap agreements we had outstanding as of December 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 December 31, 2014, we had $35 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. Refer to Note 2 for information on the debt outstanding related to these swap agreements. | |||||||||||||||||||||
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, 2013 or 2012, and all related unrealized losses were deferred in accumulated other comprehensive income. We recognized approximately $1 million, $8 million and $11 million in additional interest expense as the related interest payments were made during 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
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 December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Fuel derivatives | |||||||||||||||||||||
Asset fair value recorded in prepaid expenses and other (1) | $ | — | $ | 6 | |||||||||||||||||
Liability fair value recorded in other accrued liabilities (1) | 102 | — | |||||||||||||||||||
Longest remaining term (months) | 12 | 12 | |||||||||||||||||||
Hedged volume (barrels, in thousands) | 2,808 | 1,320 | |||||||||||||||||||
Estimated amount of existing gains (losses) expected to be reclassified into earnings in the next 12 months | (102 | ) | 3 | ||||||||||||||||||
Interest rate derivatives | |||||||||||||||||||||
Liability fair value recorded in other long term liabilities (2) | 1 | 3 | |||||||||||||||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | (1 | ) | (2 | ) | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fuel derivatives | |||||||||||||||||||||
Hedge effectiveness gains (losses) recognized in aircraft fuel expense | $ | (30 | ) | $ | (10 | ) | $ | 10 | |||||||||||||
Gains (losses) on derivatives not qualifying for hedge accounting recognized in other expense | 2 | — | (3 | ) | |||||||||||||||||
Hedge gains (losses) on derivatives recognized in comprehensive income | (134 | ) | (6 | ) | 14 | ||||||||||||||||
Percentage of actual consumption economically hedged | 20 | % | 21 | % | 30 | % | |||||||||||||||
Interest rate derivatives | |||||||||||||||||||||
Hedge losses on derivatives recognized in interest expense | (1 | ) | (8 | ) | (11 | ) | |||||||||||||||
Hedge gains (losses) on derivatives recognized in comprehensive income | — | 1 | (3 | ) | |||||||||||||||||
-1 | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty and prior to impact of collateral paid. | ||||||||||||||||||||
-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 any of our seven 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 liability 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. We had $51 million of collateral posted related to our outstanding fuel hedge contracts at December 31, 2014 which offset the hedge liability in other current liabilities, compared to no collateral as of December 31, 2013. We had $1 million and $3 million posted in collateral related to our interest rate derivatives which offset the hedge liability in other current liabilities at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
The impact of offsetting derivative instruments is depicted below (dollar amounts in millions): | |||||||||||||||||||||
Gross Amount of Recognized | Gross Amount of Cash Collateral | Net Amount Presented | |||||||||||||||||||
in Balance Sheet | |||||||||||||||||||||
Assets | Liabilities | Offset | Assets | Liabilities | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Fuel derivatives | $ | — | $ | 102 | $ | 51 | $ | — | $ | 51 | |||||||||||
Interest rate derivatives | — | 1 | 1 | — | — | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Fuel derivatives | $ | 6 | $ | — | $ | — | $ | 6 | $ | — | |||||||||||
Interest rate derivatives | — | 3 | 3 | — | — | ||||||||||||||||
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
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 described in Note 1 (in millions): | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 153 | $ | — | $ | — | $ | 153 | |||||||||
Available-for-sale investment securities | — | 125 | — | 125 | |||||||||||||
Aircraft fuel derivatives | — | — | — | — | |||||||||||||
$ | 153 | $ | 125 | $ | — | $ | 278 | ||||||||||
Liabilities | |||||||||||||||||
Aircraft fuel derivatives | — | 102 | — | 102 | |||||||||||||
Interest rate swap | — | 1 | — | 1 | |||||||||||||
$ | — | $ | 103 | $ | — | $ | 103 | ||||||||||
As of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
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 | ||||||||||
The carrying values of all other financial instruments approximated their fair values at December 31, 2014 and 2013. Refer to Note 2 for fair value information related to our outstanding debt obligations as of December 31, 2014 and 2013. | |||||||||||||||||
Cash equivalents | |||||||||||||||||
Our cash equivalents include money market securities and commercial papers which are readily convertible into cash with maturities of three months or less when purchased. All of these instruments 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 time deposits with original maturities greater than three months but less than one year. The fair values of these instruments are based on observable inputs in non-active markets, which are therefore classified as Level 2 in the hierarchy. We did not record any material gains or losses on these securities during the year ended December 31, 2014 or 2013. | |||||||||||||||||
Aircraft fuel derivatives | |||||||||||||||||
Our aircraft fuel derivatives include swaps, caps, collars, and basis swaps 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. | |||||||||||||||||
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. Their fair values are determined using a market approach based on inputs that are readily available from public markets; therefore, they are classified as Level 2 inputs. |
Comprehensive_Income_Loss
Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | 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 accumulated other comprehensive income (loss), net of taxes for the years ended December 31, 2014, 2013 and 2012 is as follows (in millions): | |||||||||||||
Aircraft Fuel | Interest | Total | |||||||||||
Derivatives (1) | Rate Swaps (2) | ||||||||||||
Beginning accumulated losses at December 31, 2011 | $ | (3 | ) | $ | (12 | ) | $ | (15 | ) | ||||
Reclassifications into earnings (net of $0 of taxes) | (6 | ) | 7 | 1 | |||||||||
Change in fair value (net of $5 of taxes) | 8 | (2 | ) | 6 | |||||||||
Balance of accumulated losses at December 31, 2012 | (1 | ) | (7 | ) | (8 | ) | |||||||
Reclassifications into earnings (net of $7 of taxes) | 6 | 5 | 11 | ||||||||||
Change in fair value (net of $(2) of taxes) | (4 | ) | 1 | (3 | ) | ||||||||
Balance of accumulated income (losses), at December 31, 2013 | 1 | (1 | ) | — | |||||||||
Reclassifications into earnings (net of $12 of taxes) | 18 | 1 | 19 | ||||||||||
Change in fair value (net of $(52) of taxes) | (82 | ) | — | (82 | ) | ||||||||
Balance of accumulated losses, at December 31, 2014 | $ | (63 | ) | $ | — | $ | (63 | ) | |||||
(1) Reclassified to aircraft fuel expense | |||||||||||||
(2) Reclassified to interest expense |
Geographic_Information
Geographic Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Geographic Information | Geographic Information | ||||||||||||
Under the Segment Reporting topic of the Codification, disclosures are required for operating segments that are regularly reviewed by chief operating decision makers. Air transportation services accounted for substantially all the Company’s operations in 2014, 2013 and 2012. | |||||||||||||
Operating revenues are allocated to geographic regions, as defined by the DOT, based upon the origination and destination of each flight segment. We currently serve 26 locations in the Caribbean and Latin American region, or Latin America as defined by the DOT. However, our management includes our three destinations in Puerto Rico and two destinations in the U.S. Virgin Islands in our Caribbean and Latin America allocation of revenues. Therefore, we have reflected these locations within the Caribbean and Latin America region in the table below. Operating revenues by geographic regions for the years ended December 31 are summarized below (in millions): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 4,093 | $ | 3,886 | $ | 3,666 | |||||||
Caribbean & Latin America | 1,724 | 1,555 | 1,316 | ||||||||||
Total | $ | 5,817 | $ | 5,441 | $ | 4,982 | |||||||
Our tangible assets primarily consist of our fleet of aircraft, which is deployed system wide, with no individual aircraft dedicated to any specific route or region; therefore our assets do not require any allocation to a geographic area. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) | ||||||||||||||||
Quarterly results of operations for the years ended December 31 are summarized below (in millions, except per share amounts): | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2014 (1) | |||||||||||||||||
Operating revenues | $ | 1,349 | $ | 1,493 | $ | 1,529 | $ | 1,446 | |||||||||
Operating income | 41 | 141 | 164 | 169 | |||||||||||||
Net income | 4 | 230 | 79 | 88 | |||||||||||||
Basic earnings per share | $ | 0.01 | $ | 0.79 | $ | 0.27 | $ | 0.29 | |||||||||
Diluted earnings per share | $ | 0.01 | $ | 0.68 | $ | 0.24 | $ | 0.26 | |||||||||
2013 (2) | |||||||||||||||||
Operating revenues | $ | 1,299 | $ | 1,335 | $ | 1,442 | $ | 1,365 | |||||||||
Operating income | 59 | 102 | 152 | 115 | |||||||||||||
Net income | 14 | 36 | 71 | 47 | |||||||||||||
Basic earnings per share | $ | 0.05 | $ | 0.13 | $ | 0.25 | $ | 0.16 | |||||||||
Diluted earnings per share | $ | 0.05 | $ | 0.11 | $ | 0.21 | $ | 0.14 | |||||||||
(1) During the first quarter of 2014, severe winter weather led to the cancellation of approximately 4,100 flights which resulted in reduced revenue by an estimated $50 million and reduced operating income by approximately $35 million. During the second quarter of 2014, we had a gain of $242 million on the sale of LiveTV business. | |||||||||||||||||
(2) During the first quarter of 2013, we had a gain of $7 million on the sale of the Airfone business by LiveTV. During the fourth quarter of 2013, we recorded gains of approximately $2 million on the sale of three spare aircraft engines in other operating expenses, as well as losses of approximately $3 million in interest income and other on the early extinguishment of debt. | |||||||||||||||||
The sum of the quarterly earnings per share amounts does not equal the annual amount reported since per share amounts are computed independently for each quarter and for the full year based on respective weighted-average common shares outstanding and other dilutive potential common shares. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||
Valuation and Qualifying Accounts | JETBLUE AIRWAYS CORPORATION | |||||||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Additions | ||||||||||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions | Balance at | |||||||||||||||||
beginning of | Costs and | Other | end of | |||||||||||||||||||
period | Expenses | Accounts | period | |||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||
Allowances deducted from asset accounts: | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 5,795 | $ | 2,949 | $ | — | $ | 3,014 | -1 | $ | 5,730 | |||||||||||
Allowance for obsolete inventory parts | 6,355 | 1,719 | — | — | -3 | 8,074 | ||||||||||||||||
Valuation allowance for deferred tax assets | 20,149 | — | — | 19,752 | -2 | 397 | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||
Allowances deducted from asset accounts: | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 6,593 | $ | 3,618 | $ | — | $ | 4,416 | -1 | $ | 5,795 | |||||||||||
Allowance for obsolete inventory parts | 5,046 | 1,309 | — | — | -3 | 6,355 | ||||||||||||||||
Valuation allowance for deferred tax assets | 20,268 | — | — | 119 | -2 | 20,149 | ||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||
Allowances deducted from asset accounts: | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 7,586 | $ | 5,472 | $ | — | $ | 6,465 | -1 | $ | 6,593 | |||||||||||
Allowance for obsolete inventory parts | 3,886 | 1,250 | — | 90 | -3 | 5,046 | ||||||||||||||||
Valuation allowance for deferred tax assets | 20,872 | — | — | 604 | -2 | 20,268 | ||||||||||||||||
-1 | Uncollectible accounts written off, net of recoveries. | |||||||||||||||||||||
-2 | Attributable to recognition and write-off of deferred tax assets. | |||||||||||||||||||||
-3 | Inventory scrapped |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
Basis of Presentation | Basis of Presentation | |||
JetBlue predominately provides air transportation services across the United States, Caribbean and Latin America. Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S., or U.S. GAAP, and include the accounts of JetBlue and our subsidiaries. All majority-owned subsidiaries are consolidated on a line by line basis, with all intercompany transactions and balances being eliminated. In June 2014, LiveTV, LLC (and LTV Global, Inc, and LiveTV International, Inc., subsidiaries of LiveTV, LLC) were sold to Thales Holding Corporation, or Thales, and ceased to be subsidiaries of JetBlue. In September 2014, LiveTV Satellite Communications, LLC was sold to Thales and ceased to be a subsidiary of JetBlue. Following the close of the sales on June 10, 2014 and September 25, 2014, the transferred LiveTV operations are no longer presented in our consolidated financial statements. Refer to Note 8 for more details on the sale. Air transportation services accounted for substantially all of the Company’s operations in 2014, 2013 and 2012. Accordingly, segment information is not provided for LiveTV operations before the sale. | ||||
Use of Estimates | Use of Estimates | |||
The preparation of our consolidated financial statements and accompanying notes in conformity with U.S. GAAP require us to make certain estimates and assumptions. Actual results could differ from those estimates. | ||||
Fair Value | Fair Value | |||
The Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board’s, or FASB, Accounting Standards Codification™, or Codification, establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. This topic clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The topic also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs. Refer to Note 14 for more information. | ||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||
Our cash and cash equivalents include short-term, highly liquid investments which are readily convertible into cash. These investments include money market securities and commercial papers with maturities of three months or less when purchased. | ||||
Cash equivalents | ||||
Our cash equivalents include money market securities and commercial papers which are readily convertible into cash with maturities of three months or less when purchased. All of these instruments 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. | ||||
Restricted Cash | Restricted Cash | |||
Restricted cash primarily consists of security deposits, funds held in escrow for estimated workers’ compensation obligations and performance bonds for aircraft and facility leases. | ||||
Accounts and Other Receivables | Accounts and Other Receivables | |||
Accounts and other receivables are carried at cost. They primarily consist of amounts due from credit card companies associated with sales of tickets for future travel. We estimate an allowance for doubtful accounts based on known troubled accounts, if any, and historical experience of losses incurred. | ||||
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. | ||||
Available-for-sale investment securities | ||||
Our available-for-sale investment securities include highly liquid investments such as certificates of deposits with maturities between three and twelve months which are stated at fair value. | ||||
Held-to-maturity investment securities | ||||
Our held-to-maturity investments consist of investment-grade interest bearing instruments, primarily corporate bonds, which are stated at amortized cost. We do not intend to sell these investment securities and the contractual maturities are not greater than 24 months. Those with maturities less than twelve months are included in short-term investments on our consolidated balance sheets. Those with remaining maturities in excess of twelve months are included in long-term investments on our consolidated balance sheets. We did not record any material gains or losses on these securities during the years ended December 31, 2014, 2013 or 2012. The estimated fair value of these investments approximated their carrying value as of December 31, 2014 and 2013. | ||||
Also included in our held-to-maturity investment securities as of December 31, 2014 are deposits made to lower the interest rate on the debt secured by two aircraft as discussed in Note 2. These funds on deposit are readily available to us and are invested with a bank with a deposit maturity within the next 12 months. If we were to draw upon this deposit, the interest rates on the debt would revert to the higher rates in effect prior to the re-financing. As such, we have classified these time deposits as long-term held-to-maturity investments to reflect our intent to hold them in connection with the maturity of the associated debt. | ||||
The carrying values of investment securities consisted of the following at December 31, 2014 and 2013 (in millions): | ||||
Available-for-sale investment securities | ||||
Included in our available-for-sale investment securities are time deposits with original maturities greater than three months but less than one year. The fair values of these instruments are based on observable inputs in non-active markets, which are therefore classified as Level 2 in the hierarchy. We did not record any material gains or losses on these securities during the year ended December 31, 2014 or 2013. | ||||
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Available-for-sale investment securities | |||
Our available-for-sale investment securities include highly liquid investments such as certificates of deposits with maturities between three and twelve months which are stated at fair value. | ||||
Held-to-maturity investment securities | Held-to-maturity investment securities | |||
Our held-to-maturity investments consist of investment-grade interest bearing instruments, primarily corporate bonds, which are stated at amortized cost. We do not intend to sell these investment securities and the contractual maturities are not greater than 24 months. Those with maturities less than twelve months are included in short-term investments on our consolidated balance sheets. Those with remaining maturities in excess of twelve months are included in long-term investments on our consolidated balance sheets. We did not record any material gains or losses on these securities during the years ended December 31, 2014, 2013 or 2012. The estimated fair value of these investments approximated their carrying value as of December 31, 2014 and 2013. | ||||
Also included in our held-to-maturity investment securities as of December 31, 2014 are deposits made to lower the interest rate on the debt secured by two aircraft as discussed in Note 2. These funds on deposit are readily available to us and are invested with a bank with a deposit maturity within the next 12 months. If we were to draw upon this deposit, the interest rates on the debt would revert to the higher rates in effect prior to the re-financing. As such, we have classified these time deposits as long-term held-to-maturity investments to reflect our intent to hold them in connection with the maturity of the associated debt. | ||||
Derivative Instruments | Derivative Instruments | |||
Derivative instruments, including fuel hedge contracts, fuel basis swap agreements and interest rate swap agreements are stated at fair value, net of any collateral postings. Derivative instruments are included in other current assets and other current liabilities in our consolidated balance sheets. Refer to Note 13 for more information. | ||||
Aircraft fuel derivatives | ||||
Our aircraft fuel derivatives include swaps, caps, collars, and basis swaps 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. | ||||
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. Their fair values are determined using a market approach based on inputs that are readily available from public markets; therefore, they are classified as Level 2 inputs. | ||||
Inventories | Inventories | |||
Inventories consist of expendable aircraft spare parts and supplies that are stated at average cost as well as aircraft fuel that is accounted for on a first-in, first-out basis. These items are expensed when used or consumed. An allowance for obsolescence on aircraft spare parts is provided over the remaining useful life of the related aircraft fleet. | ||||
Property and Equipment | Property and Equipment | |||
We record our property and equipment at cost and depreciate these assets on a straight-line basis over their estimated useful lives to their estimated residual values. We capitalize additions, modifications enhancing the operating performance of our assets, the interest related to predelivery deposits used to acquire new aircraft and the construction of our facilities. | ||||
Estimated useful lives and residual values for our property and equipment are as follows: | ||||
Estimated Useful Life | Residual Value | |||
Aircraft | 25 years | 20 | % | |
In-flight entertainment systems | 5-10 years | 0 | % | |
Aircraft parts | Fleet life | 10 | % | |
Flight equipment leasehold improvements | Lower of lease term or economic life | 0 | % | |
Ground property and equipment | 2-10 years | 0 | % | |
Leasehold improvements—other | Lower of lease term or economic life | 0 | % | |
Buildings on leased land | Lease term | 0 | % | |
Property under capital leases is initially recorded at an amount equal to the present value of future minimum lease payments which is computed on the basis of our incremental borrowing rate or, when known, the interest rate implicit in the lease. Amortization of property under capital leases is on a straight-line basis over the expected useful life and is included in depreciation and amortization expense. | ||||
We record impairment losses on long-lived assets used in operations when events and circumstances indicate the assets may be impaired and the undiscounted future cash flows estimated to be generated by the assets are less than the assets’ net book value. If impairment occurs, the loss is measured by comparing the fair value of the asset to its carrying amount. Impairment losses are recorded in depreciation and amortization expense. | ||||
Software | Software | |||
We capitalize certain costs related to the acquisition and development of computer software. We amortize these costs using the straight-line method over the estimated useful life of the software, which is generally between five and ten years. The net book value of computer software, which is included in other assets on our consolidated balance sheets, was $73 million and $70 million as of December 31, 2014 and 2013 respectively. Amortization expense related to computer software was $39 million, $18 million and $13 million for the years ended December 31, 2014, 2013 and 2012 respectively. The increase in amortization expense during 2014 is mainly due to accelerated amortization expense as a result of a change in the expected useful lives of certain software. As of December 31, 2014, amortization expense related to computer software is expected to be approximately $27 million in 2015, $15 million in 2016, $13 million in 2017, $9 million in 2018, and $5 million in 2019. | ||||
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., LaGuardia Airport, and JFK Airport, both in New York City as indefinite life intangible assets which results in no amortization expense. Slots at other airports are amortized on a straight-line basis over their expected useful lives of 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 $5 million and $4 million related to Slots at High Density Airports for the years ended December 31, 2013 and 2012 respectively. | ||||
In March 2014, we completed the purchase of 24 additional Slots at Reagan National for $75 million. We started using these Slots in the second half of 2014 and continue to announce new routes. Consistent with our accounting treatment for Slots at all High Density Airports, we have assigned these assets an indefinite life. | ||||
Passenger Revenues | Passenger Revenue | |||
Passenger revenue is recognized when the transportation is provided or after the ticket or customer credit issued upon payment of a change fee expires. It is recognized net of the taxes that we are required to collect from our customers, including federal transportation taxes, security taxes and airport facility charges. Tickets sold but not yet recognized as revenue and unexpired credits are included in air traffic liability. | ||||
Loyalty Program | Loyalty Program | |||
We account for our customer loyalty program, TrueBlue®, by recording a liability for the estimated incremental cost of outstanding points earned from JetBlue purchases that we expect to be redeemed. The estimated cost includes incremental fuel, insurance, passenger food and supplies and reservation costs. We adjust this liability, which is included in air traffic liability, based on points earned and redeemed, points that will ultimately go unused, or breakage, changes in the estimated incremental costs associated with providing travel and changes in the TrueBlue® program. This liability was $24 million and $19 million as of December 31, 2014 and 2013, respectively. We estimate breakage based on historical point redemptions. In June 2013, we amended the program so points earned by members never expire. As a result of this change, our estimate for the breakage decreased resulting in a $5 million reduction in revenue and a corresponding increase in air traffic liability in 2013. In October 2013, we introduced the pooling of points between small groups of people, branded as Family Pooling™. We believe Family Pooling™ has not had a material impact on the breakage calculation at year-end. We did not make any changes to our frequent flyer accounting in 2014. | ||||
Points in TrueBlue® can also be sold to participating companies, including credit card and car rental companies. These sales are accounted for as multiple-element arrangements, with one element representing the fair value of the travel that will ultimately be provided when the points are redeemed and the other consisting of marketing related activities that we conduct with the participating company. The fair value of the transportation portion of these point sales is deferred and recognized as passenger revenue when transportation is provided. The marketing portion, which is the excess of the total sales proceeds over the estimated fair value of the transportation to be provided, is recognized in other revenue when the points are sold. TrueBlue® points sold to participating companies which are not redeemed are recognized as revenue when management determines the probability of redemption is remote. Deferred revenue was $162 million and $131 million at December 31, 2014 and 2013, respectively. We recorded no revenue related to point expirations during 2014 and $2 million, and $5 million during 2013 and 2012, respectively. | ||||
Upon the re-launch of the TrueBlue® program in November 2009, we extended our co-branded credit card and membership rewards participation agreements. In connection with these extensions, we received a one-time payment of $37 million, which we deferred and are recognizing as other revenue over the term of the agreement through 2015. We recognized approximately $7 million of revenue related to this one-time payment during 2014, 2013 and 2012, respectively. In connection with exclusive benefits to be introduced for our co-branded credit card, we received a one-time payment of $6 million during 2012, which we have deferred and will recognize as other revenue over the remaining term of the agreement. For the year ended December 31, 2014, we have recorded $1 million of revenue related to this one-time payment. | ||||
Live TV Revenues and Expenses | LiveTV Commercial Agreements | |||
LiveTV provides in-flight entertainment solutions for various commercial airlines. These solutions include equipment and related installation as well as agreements for ongoing service and support. In June 2014, we sold LiveTV and until this time we accounted for the equipment agreements as operating leases, with related revenue recognized ratably over the term of the related customer agreement in accordance with the Revenue Recognition-Multiple-Element Arrangements topic of the Codification. This determination was principally as a result of the long term nature of these agreements and the resulting uncertainties surrounding the total costs to provide ongoing equipment maintenance and upkeep throughout the contractual term. We accounted for payments for ongoing service and support ratably over the term of the related customer contract. Before the sale of LiveTV, customer advances that were to be applied in the next 12 months were included in other current liabilities on our consolidated balance sheets while those beyond 12 months were included in other liabilities. As of December 31, 2014, no LiveTV balances are included in our consolidated balance sheets. | ||||
Airframe and Engine Maintenance and Repair | Airframe and Engine Maintenance and Repair | |||
Regular airframe maintenance for owned and leased flight equipment is charged to expense as incurred unless covered by a third-party long-term flight hours service agreement. We have separate service agreements in place covering scheduled and unscheduled repairs of certain airframe line replacement unit components as well as the engines in our fleet. These agreements, whose original terms generally range from ten to 15 years, require monthly payments at rates based either on the number of cycles each aircraft was operated during each month or the number of flight hours each engine was operated during each month, subject to annual escalations. These power by the hour agreements transfer certain risks, including cost risks, to the third-party service providers. They generally fix the amount we pay per flight hour or number of cycles in exchange for maintenance and repairs under a predefined maintenance program, which are representative of the time and materials that would be consumed. These costs are expensed as the related flight hours or cycles are incurred. One of our maintenance providers is a subsidiary of a large shareholder of ours and is a related party. We recorded approximately $20 million in 2014, $19 million in 2013 and $7 million in 2012 in maintenance expense provided by this related party. | ||||
Advertising Costs | Advertising Costs | |||
Advertising costs, which are included in sales and marketing, are expensed as incurred. Advertising expense was $64 million in 2014, $61 million in 2013 and $57 million in 2012. | ||||
Share-Based Compensation | Share-Based Compensation | |||
We record compensation expense for share-based awards based on the grant date fair value of those awards. Share-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis. | ||||
Income Taxes | Income Taxes | |||
We account for income taxes utilizing the liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the tax and financial statement reporting bases of assets and liabilities. A valuation allowance for deferred tax assets is provided unless realizability is judged by us to be more likely than not. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. | ||||
New Accounting Standards | New Accounting Standards | |||
New accounting rules and disclosure requirements can impact our financial results and the comparability of our financial statements. The authoritative literature which has recently been issued and that we believe will impact our consolidated financial statements is described below. There are also several new proposals under development, including proposals related to leases and financial instruments. If and when enacted, these proposals may have a significant impact on our financial statements. | ||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern topic of the Codification. This standard provides specific guidance that requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. This amendment is effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter, early adoption is also permitted. We are still evaluating the new guidance and its impact, if any, on our consolidated financial statements disclosures. | ||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers topic of the Codification, which supersedes existing revenue recognition guidance. Under the new standard, a company will recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled to in exchange for those goods or services. The standard is effective for public companies for annual periods beginning after December 15, 2016, and allows for either full retrospective or modified retrospective adoption. Early adoption is not permitted. While we are still evaluating the full impact of adopting this standard on our consolidated financial statements and disclosures, we have determined that it will impact our loyalty program accounting. The new standard will no longer allow us to use the incremental cost method when recording the financial impact of points earned on JetBlue purchases and will require us to re-value our liability with a relative fair value approach. | ||||
In July 2013, the FASB issued ASU 2013-10, amending the Derivatives and Hedging topic of the Codification. This update permits the Federal Funds Effective Swap rate (Overnight Index Swap rate, or OIS) to be designated as a benchmark interest rate for hedging accounting purposes for all new or redesigned hedging relationships as of the issue date of the final guidance. Adoption of this standard did not have a material impact on our consolidated financial statements or notes thereto. |
Longterm_Debt_Shortterm_Borrow1
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations Short Term Borrowings (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | Short-term Borrowings |
We have several lines of credit which bear interest at a floating rate based upon LIBOR plus a margin range of between 1.0% and 2.75%. | |
Morgan Stanley Line of Credit | |
In July 2012, we entered into a revolving line of credit with Morgan Stanley for up to approximately $100 million. This was subsequently increased to $200 million in December 2012. This line of credit is secured by a portion of our investment securities held by them and the amount available to us under this line of credit may vary accordingly. This line of credit bears interest at a floating rate based upon LIBOR, plus a margin. As of December 31, 2014 and 2013, we did not have a balance outstanding under this line of credit. | |
Citibank Line of Credit | |
In April 2013, we entered into a Credit and Guaranty Agreement consisting of a $350 million revolving credit and letter of Credit Facility with Citibank, N.A. as the administrative agent which was scheduled to terminate in 2016. In November 2014, the available line was increased to allow for borrowings up to $400 million. Concurrent with the increase in borrowing capacity, we also extended the term of the facility by an additional two years through to April 2018. Borrowings under the Credit Facility bear interest at a variable rate equal to LIBOR, plus a margin. The Credit Facility is secured by Slots at JFK, Newark, LaGuardia and Reagan National airports as well as certain other assets. The Credit Facility includes covenants that require us to maintain certain minimum balances in unrestricted cash, cash equivalents, and unused commitments available under all revolving credit facilities. In addition, the covenants restrict our ability to incur additional indebtedness, issue preferred stock or pay dividends. As of December 31, 2014 and 2013, we did not have an outstanding balance under this line of credit. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Marketable Securities | The carrying values of investment securities consisted of the following at December 31, 2014 and 2013 (in millions): | ||||||||
2014 | 2013 | ||||||||
Available-for-sale securities | |||||||||
Time deposits | $ | 125 | $ | 70 | |||||
Commercial paper | — | 118 | |||||||
125 | 188 | ||||||||
Held-to-maturity securities | |||||||||
Corporate bonds | 254 | 275 | |||||||
Time deposits | 48 | 53 | |||||||
302 | 328 | ||||||||
Total | $ | 427 | $ | 516 | |||||
Property, Plant and Equipment | Estimated useful lives and residual values for our property and equipment are as follows: | ||||||||
Estimated Useful Life | Residual Value | ||||||||
Aircraft | 25 years | 20 | % | ||||||
In-flight entertainment systems | 5-10 years | 0 | % | ||||||
Aircraft parts | Fleet life | 10 | % | ||||||
Flight equipment leasehold improvements | Lower of lease term or economic life | 0 | % | ||||||
Ground property and equipment | 2-10 years | 0 | % | ||||||
Leasehold improvements—other | Lower of lease term or economic life | 0 | % | ||||||
Buildings on leased land | Lease term | 0 | % |
Operating_Leases_Tables
Operating Leases (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases [Abstract] | |||||||||||||
Future minimum lease payments under non cancelable operating leases | Future minimum lease payments under noncancelable operating leases, including those described above, with initial or remaining terms in excess of one year at December 31, 2014, are as follows (in millions): | ||||||||||||
Aircraft | Other | Total | |||||||||||
2015 | $ | 150 | $ | 85 | $ | 235 | |||||||
2016 | 90 | 80 | 170 | ||||||||||
2017 | 75 | 65 | 140 | ||||||||||
2018 | 75 | 60 | 135 | ||||||||||
2019 | 58 | 57 | 115 | ||||||||||
Thereafter | 213 | 487 | 700 | ||||||||||
Total minimum operating lease payments | $ | 661 | $ | 834 | $ | 1,495 | |||||||
Longterm_Debt_Shortterm_Borrow2
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Schedule of debt | Long-term debt and capital lease obligations and the related weighted average interest rate at December 31, 2014 and 2013 consisted of the following (in millions): | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Secured Debt | |||||||||||||||||
Floating rate equipment notes, due through 2025 (1) | $ | 276 | 3.2 | % | $ | 634 | 2.8 | % | |||||||||
Floating rate enhanced equipment notes (2) (3) | |||||||||||||||||
Class G-1, due 2016 | 35 | 4.4 | % | 55 | 4.5 | % | |||||||||||
Class G-2, due 2016 | 185 | 1 | % | 373 | 1 | % | |||||||||||
Fixed rate enhanced equipment notes, due through 2023 (4) | 217 | 4.5 | % | — | — | % | |||||||||||
Fixed rate equipment notes, due through 2026 | 1,119 | 5.6 | % | 1,110 | 5.8 | % | |||||||||||
Fixed rate special facility bonds, due through 2036 (5) | 77 | 5 | % | 78 | 5 | % | |||||||||||
Unsecured Debt | |||||||||||||||||
6.75% convertible debentures due in 2039 (6) | 86 | 162 | |||||||||||||||
5.5% convertible debentures due in 2038 (7) | 68 | 68 | |||||||||||||||
Capital Leases (8) | 170 | 4.1 | % | 105 | 3.9 | % | |||||||||||
Total debt and capital lease obligations | 2,233 | 2,585 | |||||||||||||||
Less: Current maturities | (265 | ) | (469 | ) | |||||||||||||
Long-term debt and capital lease obligations | $ | 1,968 | $ | 2,116 | |||||||||||||
(1)Interest rates adjust quarterly or semi-annually based on LIBOR, plus a margin. In June 2014, we used some of the proceeds from the sale of LiveTV and prepaid $299 million of floating rate outstanding principal secured by 14 Airbus A320 aircraft which are now unencumbered. | |||||||||||||||||
(2)In November 2006, we completed a public offering of $124 million of pass-through certificates to finance a certain number of our owned aircraft spare parts. Separate trusts were established for each class of these certificates. On December 16, 2013, the remaining $119 million principal amount of the Class G-1 and Class B-1 certificates due in January 2014 were prepaid, ahead of the scheduled maturities. In April 2009, we entered into interest rate swap agreements for half of the Class G-1 certificates and all of the Class B-1 certificates in the November 2006 offering which expired in 2013. | |||||||||||||||||
(3)In March and November 2004, we completed public offerings for $431 million and $498 million respectively, of pass-through certificates. These offerings were set up in order to finance the purchase of 28 new Airbus A320 aircraft delivered through 2005. Separate trusts were established for each class of these certificates. Quarterly principal payments are required on the Class G-1 certificates. In February 2008, we entered into interest rate swap agreements for the Class G-1 certificates in the November 2004 offering. These swap agreements effectively fixed the interest rate for the remaining term of these certificates. As of December 31, 2014, these certificates had a balance of $35 million and an effective interest rate of 4.4%. The entire principal amount of the Class G-2 certificates is scheduled to be paid in a lump sum on the applicable maturity dates. In February 2009, we entered into interest rate swap agreements for the Class G-2 certificates in the November 2004 offering which expired in 2013. In March 2014, we paid the final scheduled principal payment of $188 million associated with our March 2004 EETC Class G-2 certificates. The interest rate for all other certificates is based on three month LIBOR, plus a margin. Interest is payable quarterly. | |||||||||||||||||
(4)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 previously unencumbered aircraft. Principal and interest are payable semi-annually, starting in September 2014. | |||||||||||||||||
(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. In December 2006, the New York City Industrial Development Agency issued special facility revenue bonds for JFK to us as reimbursement to us for certain airport facility construction and other costs. We recorded the principal amount of the bond, net of discounts, as long-term debt on our consolidated balance sheets because we have issued a guarantee of the debt payments on the bond. This fixed rate debt is secured by leasehold mortgages of our airport facilities. | |||||||||||||||||
(6)In June 2009, we completed a public offering for an aggregate principal amount of $115 million of 6.75% Series A convertible debentures due 2039, or the Series A 6.75% Debentures. We simultaneously completed a public offering for an aggregate principal amount of $86 million of 6.75% Series B convertible debentures due 2039, or the Series B 6.75% Debentures. These are collectively known as the 6.75% Debentures. The 6.75% Debentures are general obligations and rank equal in right of payment with all of our existing and future senior unsecured debt. They are effectively junior in right of payment to our existing and future secured debt, including our secured equipment debentures, to the extent of the value of the assets securing such debt, and senior in right of payment to any subordinated debt. In addition, the 6.75% Debentures are structurally subordinated to all existing and future liabilities of our subsidiaries. The net proceeds were approximately $197 million after deducting underwriting fees and other transaction related expenses. Interest on the 6.75% Debentures is payable semi-annually on April 15 and October 15. The first interest payment on the 6.75% Debentures was paid October 15, 2009. | |||||||||||||||||
Holders of either the Series A or Series B 6.75% Debentures may convert them into shares of our common stock at any time at a conversion rate of 204.6036 shares per $1,000 principal amount of the 6.75% Debentures. The conversion rates are subject to adjustment should we declare common stock dividends or effect any common stock splits or similar transactions. If the holders convert the Series A 6.75% Debentures in connection with a fundamental change that occured prior to October 15, 2014, the applicable conversion rate would of been increased depending on our then current common stock price. The same applies to the Series B 6.75% Debentures prior to October 15, 2016. The maximum number of shares into which all of the 6.75% Debentures are convertible, including pursuant to this make-whole fundamental change provision, is 235.2941 shares per $1,000 principal amount of the 6.75% Debentures outstanding, as adjusted, or 20.3 million shares as of December 31, 2014. | |||||||||||||||||
We may redeem any of the 6.75% Debentures for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest at any time on or after October 15, 2014 for the Series A 6.75% Debentures and October 15, 2016 for the Series B 6.75% Debentures. Holders may require us to repurchase the 6.75% Debentures for cash at a repurchase price equal to 100% of their principal amount plus accrued and unpaid interest, if any, on October 15, 2014, 2019, 2024, 2029 and 2034 for the Series A 6.75% Debentures and October 15, 2016, 2021, 2026, 2031 and 2036 for the Series B 6.75% Debentures; or at any time prior to their maturity upon the occurrence of a certain designated event. | |||||||||||||||||
During the fourth quarter of 2014, the remaining principal amount of approximately $76 million of the Series A 6.75% Debentures were converted by holders and as a result, we issued 15.5 million shares of our common stock. As of December 31, 2014, the remaining principal balance of Series B 6.75% Debentures was $86 million, which is currently convertible into 20.3 million shares of our common stock. | |||||||||||||||||
We evaluated the various embedded derivatives within the supplemental indenture for bifurcation from the 6.75% Debentures under the applicable provisions, including the basic conversion feature, the fundamental change make-whole provision and the put and call options. Based upon our detailed assessment, we concluded these embedded derivatives were either (i) excluded from bifurcation as a result of being clearly and closely related to the 6.75% Debentures or are indexed to our common stock and would be classified in stockholders’ equity if freestanding or (ii) are immaterial embedded derivatives. | |||||||||||||||||
(7)In June 2008, we completed a public offering for an aggregate principal amount of $100.6 million of 5.5% Series A convertible debentures due 2038, or the Series A 5.5% Debentures. We simultaneously completed a public offering for an aggregate principal amount of $100.6 million for 5.5% Series B convertible debentures due 2038, or the Series B 5.5% Debentures. These are collectively known as the 5.5% Debentures. The 5.5% Debentures are general senior obligations and were originally secured in part by an escrow account for each series. We deposited approximately $32 million of the net proceeds from the offering, representing the first six scheduled semi-annual interest payments on the 5.5% Debentures, into escrow accounts for the exclusive benefit of the holders of each series of the 5.5% Debentures. As of December 31, 2011, all funds originally deposited in the escrow account had been used. Interest on the 5.5% Debentures is payable on a semi-annual basis on April 15 and October 15. | |||||||||||||||||
Holders of the Series A 5.5% Debentures may convert them into shares of our common stock at any time at a conversion rate of 220.6288 shares per $1,000 principal amount of Series A 5.5% Debenture. Holders of the Series B 5.5% Debentures may convert them into shares of our common stock at any time at a conversion rate of 225.2252 shares per $1,000 principal amount of Series B 5.5% Debenture. The conversion rates are subject to adjustment should we declare common stock dividends or effect any common stock splits or similar transactions. If the holders convert the Series B 5.5% Debentures in connection with any fundamental corporate change that occurs prior to October 15, 2015 the applicable conversion rate may be increased depending upon our then current common stock price. The maximum number of shares of common stock into which all of the remaining 5.5% Debentures are convertible, including pursuant to this make-whole fundamental change provision, is 18.2 million shares. | |||||||||||||||||
We may redeem any of the 5.5% Debentures for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest at any time on or after October 15, 2015 for the Series B 5.5% Debentures. Holders may require us to repurchase the 5.5% Debentures for cash at a repurchase price equal to 100% of their principal amount plus accrued and unpaid interest, if any, on October 15, 2013, 2018, 2023, 2028, and 2033 for the Series A 5.5% Debentures and October 15, 2015, 2020, 2025, 2030, and 2035 for the Series B 5.5% Debentures; or at any time prior to their maturity upon the occurrence of a specified designated event. | |||||||||||||||||
In June 2008, in conjunction with the public offering of the 5.5% Debentures described above, we also entered into a share lending agreement with Morgan Stanley & Co. Incorporated, an affiliate of the underwriter of the offering, or the share borrower, pursuant to which we loaned the share borrower approximately 44.9 million shares of our common stock. Under the share lending agreement, the share borrower is required to return the borrowed shares when the debentures are no longer outstanding. We did not receive any proceeds from the sale of the borrowed shares by the share borrower, but we did receive a nominal lending fee of $0.01 per share from the share borrower for the use of borrowed shares. | |||||||||||||||||
Our share lending agreement requires the shares borrowed be returned upon the maturity of the related debt, October 2038, or earlier, if the debentures are no longer outstanding. We determined the fair value of the share lending arrangement was approximately $5 million at the date of the issuance based on the value of the estimated fees the shares loaned would have generated over the term of the share lending arrangement. The $5 million value was recognized as a debt issuance cost and is being amortized to interest expense through the earliest put date of the related debt, October 2013 and October 2015 for Series A and Series B, respectively. As of December 31, 2014, approximately $0.4 million of net debt issuance costs remain outstanding related to the share lending arrangement and will continue to be amortized through the earliest put date of the related debt. | |||||||||||||||||
During 2008 and 2009 approximately $79 million principal amount of the 5.5% Debentures was voluntarily converted by holders. As a result, we issued 17.5 million shares of our common stock. Cash payments from the escrow accounts related to the 2008 conversions were $11 million and borrowed shares equivalent to the number of shares of our common stock issued upon these conversions were returned to us pursuant to the share lending agreement described above. The borrower returned 10.0 million shares to us in September 2009, almost all of which were voluntarily returned shares in excess of converted shares, pursuant to the share lending agreement. In October 2011, approximately 16.6 million shares were voluntarily returned to us by the borrower, leaving 1.4 million shares outstanding under the share lending arrangement. At December 31, 2014, the fair value of similar common shares not subject to our share lending arrangement, based upon our closing stock price, was approximately $22 million. During the fourth quarter of 2013, the remaining principal amount of approximately $55 million of the Series A 5.5% Debentures was converted by holders and as a result, we issued 12.2 million shares of our common stock. As of December 31, 2014, the remaining principal balance of Series B 5.5% Debentures was $68 million, which is currently convertible into 15.2 million shares of our common stock. | |||||||||||||||||
(8)As of December 31, 2014, four capital leased Airbus A320 aircraft and two capital leased Airbus A321 aircraft were included in property and equipment at a cost of $253 million with accumulated amortization of $40 million. As of December 31, 2013, four capital leased Airbus A320 aircraft were included in property and equipment at a cost of $152 million with accumulated amortization of $33 million. The future minimum lease payments under these non-cancelable leases are $23 million in 2015, $23 million in 2016, $23 million in 2017, $23 million in 2018, $23 million in 2019 and $98 million in the years thereafter. Included in the future minimum lease payments is $43 million representing interest, resulting in a present value of capital leases of $170 million with a current portion of $15 million and a long-term portion of $155 million. | |||||||||||||||||
Schedule of maturities of long-term debt | Maturities of long-term debt and capital leases, including the assumption our convertible debt will be redeemed upon the first put date, for the next five years are as follows (in millions): | ||||||||||||||||
Year | Maturities | ||||||||||||||||
2015 | $ | 265 | |||||||||||||||
2016 | 464 | ||||||||||||||||
2017 | 216 | ||||||||||||||||
2018 | 227 | ||||||||||||||||
2019 | 227 | ||||||||||||||||
Thereafter | 834 | ||||||||||||||||
Carrying amounts and estimated fair values of long-term debt | The carrying amounts and estimated fair values of our long-term debt at December 31, 2014 and 2013 were as follows (in millions): | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||
Public Debt | |||||||||||||||||
Floating rate enhanced equipment notes | |||||||||||||||||
Class G-1, due 2016 | $ | 35 | $ | 35 | $ | 55 | $ | 54 | |||||||||
Class G-2, due 2016 | 185 | 180 | 373 | 365 | |||||||||||||
Fixed rate special facility bonds, due through 2036 | 77 | 78 | 78 | 68 | |||||||||||||
6.75% convertible debentures due in 2039 | 86 | 283 | 162 | 297 | |||||||||||||
5.5% convertible debentures due in 2038 | 68 | 241 | 68 | 134 | |||||||||||||
Non-Public Debt | |||||||||||||||||
Fixed rate enhanced equipment notes, due through 2023 | 217 | 224 | — | — | |||||||||||||
Floating rate equipment notes, due through 2025 | 276 | 277 | 634 | 645 | |||||||||||||
Fixed rate equipment notes, due through 2026 | 1,119 | 1,211 | 1,110 | 1,161 | |||||||||||||
Total | $ | 2,063 | $ | 2,529 | $ | 2,480 | $ | 2,724 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 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 for the years ended December 31 (dollars and share data in millions): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 401 | $ | 168 | $ | 128 | |||||||
Effect of dilutive securities: | |||||||||||||
Interest on convertible debt, net of income taxes and profit sharing | 7 | 9 | 9 | ||||||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ | 408 | $ | 177 | $ | 137 | |||||||
Denominator: | |||||||||||||
Weighted average shares outstanding for basic earnings per share | 294.7 | 282.8 | 282.3 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options and restricted stock units | 2.4 | 2.1 | 1.2 | ||||||||||
Convertible debt | 46.2 | 58.6 | 60.6 | ||||||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 343.3 | 343.5 | 344.1 | ||||||||||
Shares excluded from EPS calculation: | |||||||||||||
Shares issuable upon conversion of our convertible debt as assumed conversion would be antidilutive | — | — | — | ||||||||||
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | 6.9 | 13.8 | 19.5 | ||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
Summary of restricted stock unit activity | The following is a summary of RSU activity under the 2011 Plan for the year ended December 31: | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||
Nonvested at beginning of year | 4,118,849 | $ | 5.94 | 2,483,664 | $ | 5.77 | 65,914 | $ | 5.08 | |||||||||||||
Granted | 1,930,851 | 8.62 | 2,653,842 | 6.08 | 2,570,891 | 5.79 | ||||||||||||||||
Vested | (1,903,229 | ) | 5.97 | (828,291 | ) | 5.77 | (20,249 | ) | 5.09 | |||||||||||||
Forfeited | (361,385 | ) | 7.02 | (190,366 | ) | 5.82 | (132,892 | ) | 5.83 | |||||||||||||
Nonvested at end of year | 3,785,086 | $ | 7.18 | 4,118,849 | $ | 5.94 | 2,483,664 | $ | 5.77 | |||||||||||||
The following is a summary of RSU activity under the 2002 Plan for the year ended December 31: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||
Nonvested at beginning of year | 711,494 | $ | 6 | 2,029,081 | $ | 5.85 | 4,093,484 | $ | 5.64 | |||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||
Vested | (708,728 | ) | 6 | (1,257,045 | ) | 5.76 | (1,921,940 | ) | 5.41 | |||||||||||||
Forfeited | (2,766 | ) | 6.03 | (60,542 | ) | 5.99 | (142,463 | ) | 5.76 | |||||||||||||
Nonvested at end of year | — | $ | — | 711,494 | $ | 6 | 2,029,081 | $ | 5.85 | |||||||||||||
Summary of stock option activity | The following is a summary of stock option activity for the years ended December 31: | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | |||||||||||||||||
Outstanding at beginning of year | 11,384,688 | $ | 13.45 | 15,845,124 | $ | 14.87 | 21,807,170 | $ | 13.91 | |||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||
Exercised | (1,950,482 | ) | 11.58 | (10,800 | ) | 7.79 | (493,731 | ) | 4 | |||||||||||||
Forfeited | — | — | — | — | — | — | ||||||||||||||||
Expired | (3,456,986 | ) | 16.38 | (4,449,636 | ) | 18.5 | (5,468,315 | ) | 12.03 | |||||||||||||
Outstanding at end of year | 5,977,220 | $ | 12.38 | 11,384,688 | $ | 13.45 | 15,845,124 | $ | 14.87 | |||||||||||||
Vested at end of year | 5,977,220 | $ | 12.38 | 11,384,688 | $ | 13.45 | 15,845,124 | $ | 14.87 | |||||||||||||
Summary of outstanding stock options | The following is a summary of outstanding stock options at December 31, 2014: | |||||||||||||||||||||
Options Outstanding, Vested & Exercisable | ||||||||||||||||||||||
Range of exercise prices | Shares | Weighted average remaining contractual life (years) | Weighted average exercise price | Aggregate intrinsic value (millions) | ||||||||||||||||||
$7.79 to $15.27 | 5,977,220 | 1.3 | $ | 12.38 | $ | 22 | ||||||||||||||||
5,977,220 | $ | 22 | ||||||||||||||||||||
Summary of CSPP share reserve activity | The following is a summary of share activity under the 2011 CSPP for the year ended December 31: | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Available for future purchases, beginning of year | 4,855,144 | 6,436,224 | 8,000,000 | |||||||||||||||||||
Common stock purchased | (2,332,823 | ) | $ | 8.04 | (1,581,080 | ) | $ | 6.2 | (1,563,776 | ) | $ | 4.75 | ||||||||||
Available for future purchases, end of year | 2,552,321 | 4,855,144 | 6,436,224 | |||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of provision for income taxes | The provision for income taxes consisted of the following for the years ended December 31 (in millions): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Deferred: | |||||||||||||
Federal | $ | 192 | $ | 95 | $ | 68 | |||||||
State | 20 | 12 | 8 | ||||||||||
Deferred income tax expense | 212 | 107 | 76 | ||||||||||
Current income tax expense | 10 | 4 | 5 | ||||||||||
Total income tax expense | $ | 222 | $ | 111 | $ | 81 | |||||||
Schedule of income taxes differed from the federal income tax statutory rate | The effective tax rate on income before income taxes differed from the federal income tax statutory rate for the years ended December 31 for the following reasons (in millions): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense at statutory rate | $ | 218 | $ | 98 | $ | 73 | |||||||
Increase resulting from: | |||||||||||||
State income tax, net of federal benefit | 18 | 9 | 6 | ||||||||||
Valuation Allowance, federal and state | (19 | ) | — | — | |||||||||
Other, net | 5 | 4 | 2 | ||||||||||
Total income tax expense | $ | 222 | $ | 111 | $ | 81 | |||||||
Schedule of deferred tax assets and deferred liabilities | The components of our deferred tax assets and liabilities as of December 31 are as follows (in millions): | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 152 | $ | 157 | |||||||||
Employee benefits | 41 | 40 | |||||||||||
Deferred revenue/gains | 102 | 95 | |||||||||||
Rent expense | 30 | 24 | |||||||||||
Terminal 5 lease | 32 | 29 | |||||||||||
Capital loss carryforwards | — | 20 | |||||||||||
Other | 27 | 31 | |||||||||||
Valuation allowance | — | (20 | ) | ||||||||||
Financial derivative instruments | 40 | 1 | |||||||||||
Deferred tax assets, net | 424 | 377 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Accelerated depreciation | (1,082 | ) | (862 | ) | |||||||||
Deferred tax liabilities, net | (1,082 | ) | (862 | ) | |||||||||
Net deferred tax liability | $ | (658 | ) | $ | (485 | ) | |||||||
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follow (in millions): | ||||||||||||
Unrecognized tax benefits December 31, 2011 | 12 | ||||||||||||
Increases for tax positions taken during the period | 1 | ||||||||||||
Unrecognized tax benefits December 31, 2012 | 13 | ||||||||||||
Increases for tax positions taken during the period | 2 | ||||||||||||
Decreases for settlement with tax authorities during the period | (4 | ) | |||||||||||
Unrecognized tax benefits December 31, 2013 | 11 | ||||||||||||
Increases for tax positions taken during a prior period | 2 | ||||||||||||
Increases for tax positions taken during the period | 4 | ||||||||||||
Decreases for tax positions taken during a prior period | (1 | ) | |||||||||||
Unrecognized tax benefits December 31, 2014 | 16 | ||||||||||||
Financial_Derivative_Instrumen1
Financial Derivative Instruments and Risk Management (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 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 December 31, 2014, related to our outstanding fuel hedging contracts that were designated as cash flow hedges for accounting purposes. | ||||||||||||||||||||
Jet fuel swap | Jet fuel collar agreements | Heating oil collar agreements | Total | ||||||||||||||||||
agreements | |||||||||||||||||||||
First Quarter 2015 | 10% | 10% | —% | 20% | |||||||||||||||||
Second Quarter 2015 | 10% | 10% | —% | 20% | |||||||||||||||||
Third Quarter 2015 | 5% | —% | 9% | 14% | |||||||||||||||||
Fourth Quarter 2015 | 5% | —% | 10% | 15% | |||||||||||||||||
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 December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Fuel derivatives | |||||||||||||||||||||
Asset fair value recorded in prepaid expenses and other (1) | $ | — | $ | 6 | |||||||||||||||||
Liability fair value recorded in other accrued liabilities (1) | 102 | — | |||||||||||||||||||
Longest remaining term (months) | 12 | 12 | |||||||||||||||||||
Hedged volume (barrels, in thousands) | 2,808 | 1,320 | |||||||||||||||||||
Estimated amount of existing gains (losses) expected to be reclassified into earnings in the next 12 months | (102 | ) | 3 | ||||||||||||||||||
Interest rate derivatives | |||||||||||||||||||||
Liability fair value recorded in other long term liabilities (2) | 1 | 3 | |||||||||||||||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | (1 | ) | (2 | ) | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fuel derivatives | |||||||||||||||||||||
Hedge effectiveness gains (losses) recognized in aircraft fuel expense | $ | (30 | ) | $ | (10 | ) | $ | 10 | |||||||||||||
Gains (losses) on derivatives not qualifying for hedge accounting recognized in other expense | 2 | — | (3 | ) | |||||||||||||||||
Hedge gains (losses) on derivatives recognized in comprehensive income | (134 | ) | (6 | ) | 14 | ||||||||||||||||
Percentage of actual consumption economically hedged | 20 | % | 21 | % | 30 | % | |||||||||||||||
Interest rate derivatives | |||||||||||||||||||||
Hedge losses on derivatives recognized in interest expense | (1 | ) | (8 | ) | (11 | ) | |||||||||||||||
Hedge gains (losses) on derivatives recognized in comprehensive income | — | 1 | (3 | ) | |||||||||||||||||
-1 | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty and prior to impact of collateral paid. | ||||||||||||||||||||
-2 | Gross liability prior to impact of collateral posted | ||||||||||||||||||||
Offsetting assets and liabilities | The impact of offsetting derivative instruments is depicted below (dollar amounts in millions): | ||||||||||||||||||||
Gross Amount of Recognized | Gross Amount of Cash Collateral | Net Amount Presented | |||||||||||||||||||
in Balance Sheet | |||||||||||||||||||||
Assets | Liabilities | Offset | Assets | Liabilities | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
Fuel derivatives | $ | — | $ | 102 | $ | 51 | $ | — | $ | 51 | |||||||||||
Interest rate derivatives | — | 1 | 1 | — | — | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Fuel derivatives | $ | 6 | $ | — | $ | — | $ | 6 | $ | — | |||||||||||
Interest rate derivatives | — | 3 | 3 | — | — | ||||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair value measurements, recurring | 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 described in Note 1 (in millions): | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 153 | $ | — | $ | — | $ | 153 | |||||||||
Available-for-sale investment securities | — | 125 | — | 125 | |||||||||||||
Aircraft fuel derivatives | — | — | — | — | |||||||||||||
$ | 153 | $ | 125 | $ | — | $ | 278 | ||||||||||
Liabilities | |||||||||||||||||
Aircraft fuel derivatives | — | 102 | — | 102 | |||||||||||||
Interest rate swap | — | 1 | — | 1 | |||||||||||||
$ | — | $ | 103 | $ | — | $ | 103 | ||||||||||
As of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
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 | ||||||||||
Comprehensive_Income_Loss_Tabl
Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated other comprehensive income (loss), net of taxes | A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes for the years ended December 31, 2014, 2013 and 2012 is as follows (in millions): | ||||||||||||
Aircraft Fuel | Interest | Total | |||||||||||
Derivatives (1) | Rate Swaps (2) | ||||||||||||
Beginning accumulated losses at December 31, 2011 | $ | (3 | ) | $ | (12 | ) | $ | (15 | ) | ||||
Reclassifications into earnings (net of $0 of taxes) | (6 | ) | 7 | 1 | |||||||||
Change in fair value (net of $5 of taxes) | 8 | (2 | ) | 6 | |||||||||
Balance of accumulated losses at December 31, 2012 | (1 | ) | (7 | ) | (8 | ) | |||||||
Reclassifications into earnings (net of $7 of taxes) | 6 | 5 | 11 | ||||||||||
Change in fair value (net of $(2) of taxes) | (4 | ) | 1 | (3 | ) | ||||||||
Balance of accumulated income (losses), at December 31, 2013 | 1 | (1 | ) | — | |||||||||
Reclassifications into earnings (net of $12 of taxes) | 18 | 1 | 19 | ||||||||||
Change in fair value (net of $(52) of taxes) | (82 | ) | — | (82 | ) | ||||||||
Balance of accumulated losses, at December 31, 2014 | $ | (63 | ) | $ | — | $ | (63 | ) | |||||
(1) Reclassified to aircraft fuel expense | |||||||||||||
(2) Reclassified to interest expense |
Geographic_Information_Tables
Geographic Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Summary of operating revenues by geographic regions | Operating revenues by geographic regions for the years ended December 31 are summarized below (in millions): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 4,093 | $ | 3,886 | $ | 3,666 | |||||||
Caribbean & Latin America | 1,724 | 1,555 | 1,316 | ||||||||||
Total | $ | 5,817 | $ | 5,441 | $ | 4,982 | |||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of quarterly financial information | Quarterly results of operations for the years ended December 31 are summarized below (in millions, except per share amounts): | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2014 (1) | |||||||||||||||||
Operating revenues | $ | 1,349 | $ | 1,493 | $ | 1,529 | $ | 1,446 | |||||||||
Operating income | 41 | 141 | 164 | 169 | |||||||||||||
Net income | 4 | 230 | 79 | 88 | |||||||||||||
Basic earnings per share | $ | 0.01 | $ | 0.79 | $ | 0.27 | $ | 0.29 | |||||||||
Diluted earnings per share | $ | 0.01 | $ | 0.68 | $ | 0.24 | $ | 0.26 | |||||||||
2013 (2) | |||||||||||||||||
Operating revenues | $ | 1,299 | $ | 1,335 | $ | 1,442 | $ | 1,365 | |||||||||
Operating income | 59 | 102 | 152 | 115 | |||||||||||||
Net income | 14 | 36 | 71 | 47 | |||||||||||||
Basic earnings per share | $ | 0.05 | $ | 0.13 | $ | 0.25 | $ | 0.16 | |||||||||
Diluted earnings per share | $ | 0.05 | $ | 0.11 | $ | 0.21 | $ | 0.14 | |||||||||
(1) During the first quarter of 2014, severe winter weather led to the cancellation of approximately 4,100 flights which resulted in reduced revenue by an estimated $50 million and reduced operating income by approximately $35 million. During the second quarter of 2014, we had a gain of $242 million on the sale of LiveTV business. | |||||||||||||||||
(2) During the first quarter of 2013, we had a gain of $7 million on the sale of the Airfone business by LiveTV. During the fourth quarter of 2013, we recorded gains of approximately $2 million on the sale of three spare aircraft engines in other operating expenses, as well as losses of approximately $3 million in interest income and other on the early extinguishment of debt. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of AFS and HTM Securities [Line Items] | ||
Available-for-sale securities | $125 | $188 |
Held-to-maturity securities | 302 | 328 |
Total | 427 | 516 |
Bank Time Deposits [Member] | ||
Schedule of AFS and HTM Securities [Line Items] | ||
Available-for-sale securities | 125 | 70 |
Held-to-maturity securities | 48 | 53 |
Commercial Paper [Member] | ||
Schedule of AFS and HTM Securities [Line Items] | ||
Available-for-sale securities | 0 | 118 |
Corporate Bond Securities [Member] | ||
Schedule of AFS and HTM Securities [Line Items] | ||
Held-to-maturity securities | $254 | $275 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) | 12 Months Ended |
Dec. 31, 2014 | |
Aircraft [Member] | |
Property and Equipment | |
Estimated Useful Life | 25 years |
Residual Value | 20.00% |
In-flight entertainment systems [Member] | |
Property and Equipment | |
Residual Value | 0.00% |
Aircraft Parts [Member] | |
Property and Equipment | |
Residual Value | 10.00% |
Flight equipment leasehold improvements [Member] | |
Property and Equipment | |
Residual Value | 0.00% |
Ground property and equipment [Member] | |
Property and Equipment | |
Residual Value | 0.00% |
Leasehold improvements-other [Member] | |
Property and Equipment | |
Residual Value | 0.00% |
Buildings on Leased Land Member | |
Property and Equipment | |
Residual Value | 0.00% |
Minimum [Member] | In-flight entertainment systems [Member] | |
Property and Equipment | |
Estimated Useful Life | 5 years |
Minimum [Member] | Ground property and equipment [Member] | |
Property and Equipment | |
Estimated Useful Life | 2 years |
Maximum [Member] | In-flight entertainment systems [Member] | |
Property and Equipment | |
Estimated Useful Life | 10 years |
Maximum [Member] | Ground property and equipment [Member] | |
Property and Equipment | |
Estimated Useful Life | 10 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2009 | |
takeoff_and_landing_slot | engine | |||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Subsidiary value consolidated by parent | $0 | |||||
Customer Loyalty Program Liability, Current | 24,000,000 | 19,000,000 | 19,000,000 | |||
Held-to-maturity Securities, Gross Gains (Losses), Derivatives | 0 | 0 | 0 | |||
Aircraft Maintenance, Materials, and Repairs | 418,000,000 | 432,000,000 | 338,000,000 | |||
Other Cost and Expense, Operating | 682,000,000 | 601,000,000 | 549,000,000 | |||
Number Of Take Off And Landing Slot | 24 | |||||
Revenue Reduction Due to Change in Estimate | 5,000,000 | |||||
Deferred Revenue from Loyalty Program Points | 162,000,000 | 131,000,000 | 131,000,000 | |||
Revenue from point sales | 0 | 2,000,000 | 5,000,000 | |||
One Time Payment Under Co Branded Credit Card Agreement Extension - Deferred Revenue | 37,000,000 | |||||
Revenue related to the one-time payment of the minimum point sales | 7,000,000 | 7,000,000 | 7,000,000 | |||
One Time Payment Under Co Branded Credit Card Agreement Exclusive Benefits - Deferred Revenue | 6,000,000 | |||||
Maintenance service agreements, Minimum | 10 years | |||||
Maintenance service agreements, Maximum | 15 years | |||||
Related Party Transaction, Expenses from Transactions with Related Party | 20,000,000 | 19,000,000 | 7,000,000 | |||
Advertising expense | 64,000,000 | 61,000,000 | 57,000,000 | |||
Co-Branded Credit Card [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Revenue related to the one-time payment of the minimum point sales | 1,000,000 | |||||
Acquired Take-Off and Landing Slots [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||||
Computer Software, Intangible Asset [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Capitalized Computer Software, Net | 73,000,000 | 70,000,000 | 70,000,000 | |||
Amortization expense | 39,000,000 | 18,000,000 | 13,000,000 | |||
Estimated Amortization expense related to computer software, Year one | 27,000,000 | |||||
Estimated Amortization expense related to computer software, Year two | 15,000,000 | |||||
Estimated Amortization expense related to computer software, Year three | 13,000,000 | |||||
Estimated Amortization expense related to computer software, Year four | 9,000,000 | |||||
Estimated Amortization expense related to computer software, Year five | 5,000,000 | |||||
High Density Airports, Take-Off and Landing Slots [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||||
Amortization expense | 5,000,000 | 4,000,000 | ||||
Spare Engines [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Property, Plant and Equipment, Number of Aircraft Sold | 3 | |||||
Gain (Loss) on Disposition of Assets | 2,000,000 | |||||
Minimum [Member] | Computer Software, Intangible Asset [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||||
Maximum [Member] | Computer Software, Intangible Asset [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||
La Guardia and Reagan National Slots [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Indefinite-Lived Domestic Slots and Routes | 75,000,000 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies Held-to-Maturities Securities, Gains (Losses) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investments, Debt and Equity Securities [Abstract] | |||
Held-to-maturity Securities, Gross Gains (Losses), Derivatives | $0 | $0 | $0 |
Operating_Leases_Details
Operating Leases (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Future minimum lease payments under non cancelable operating leases | |
Future minimum lease payments, 2015 | $235 |
Future minimum lease payments, 2016 | 170 |
Future minimum lease payments, 2017 | 140 |
Future minimum lease payments, 2018 | 135 |
Future minimum lease payments, 2019 | 115 |
Thereafter | 700 |
Total minimum operating lease payments | 1,495 |
Aircraft [Member] | |
Future minimum lease payments under non cancelable operating leases | |
Future minimum lease payments, 2015 | 150 |
Future minimum lease payments, 2016 | 90 |
Future minimum lease payments, 2017 | 75 |
Future minimum lease payments, 2018 | 75 |
Future minimum lease payments, 2019 | 58 |
Thereafter | 213 |
Total minimum operating lease payments | 661 |
Other [Member] | |
Future minimum lease payments under non cancelable operating leases | |
Future minimum lease payments, 2015 | 85 |
Future minimum lease payments, 2016 | 80 |
Future minimum lease payments, 2017 | 65 |
Future minimum lease payments, 2018 | 60 |
Future minimum lease payments, 2019 | 57 |
Thereafter | 487 |
Total minimum operating lease payments | $834 |
Longterm_Debt_Shortterm_Borrow3
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Long-term debt and capital lease obligations and the weighted average interest rate | ||
Weighted average interest rate | 4.10% | 0.00% |
Capital Leases (7) | $170 | $105 |
Total debt and capital lease obligations | 2,233 | 2,585 |
Less: current maturities | -265 | -469 |
Long-term debt and capital lease obligations | 1,968 | 2,116 |
Floating rate equipment notes due through 2025 [Member] | ||
Long-term debt and capital lease obligations and the weighted average interest rate | ||
Secured Debt | 276 | 634 |
Weighted average interest rate | 3.20% | 2.80% |
Public Debt Floating rate Class G-1, due 2013, 2014 and 2016 [Member] | ||
Long-term debt and capital lease obligations and the weighted average interest rate | ||
Secured Debt | 35 | 55 |
Weighted average interest rate | 4.40% | 4.50% |
Public Debt Floating rate Class G-2 due 2014 and 2016 [Member] | ||
Long-term debt and capital lease obligations and the weighted average interest rate | ||
Secured Debt | 185 | 373 |
Weighted average interest rate | 1.00% | 1.00% |
Fixed rate equipment notes, due through 2026 [Member] | ||
Long-term debt and capital lease obligations and the weighted average interest rate | ||
Secured Debt | 1,119 | 1,110 |
Weighted average interest rate | 5.60% | 5.80% |
Public Debt Fixed rate special facility bonds, due through 2036 [Member] | ||
Long-term debt and capital lease obligations and the weighted average interest rate | ||
Secured Debt | 77 | 78 |
Weighted average interest rate | 5.00% | 5.00% |
Public Debt 6.75% convertible debentures due in 2039 [Member] | ||
Long-term debt and capital lease obligations and the weighted average interest rate | ||
Unsecured Debt | 86 | 162 |
Public Debt 5.5% convertible debentures due in 2038 [Member] | ||
Long-term debt and capital lease obligations and the weighted average interest rate | ||
Unsecured Debt | 68 | 68 |
Fixed Rate Equipment Notes Due Through Two Thousand Twenty Three I [Member] | ||
Long-term debt and capital lease obligations and the weighted average interest rate | ||
Secured Debt | $217 | $0 |
Weighted average interest rate | 4.50% | 0.00% |
Operating_Leases_Details_Textu
Operating Leases (Details Textual) (USD $) | 12 Months Ended | 32 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2010 |
aircraft | aircraft | aircraft | |||
Operating Leases (Textual) [Abstract] | |||||
Total rental expense for operating leases | $298 | $295 | $284 | ||
Collateral assets for letters of credit related to leases | 33 | 33 | |||
Operating Leases of Lessee, Contingent Rentals, Description of Variable Rate Basis | LIBOR | ||||
Number of aircraft variable rate rent | 5 | 5 | |||
Number of aircraft lease rate renewed based on fair market value | 46 | 46 | |||
Period of lease term extended | one or two years | ||||
Number of aircraft having purchase options | 45 | 45 | |||
Additional lease commitments | 42 | 24 | |||
Payments for capital improvements | 102 | 190 | |||
Number of operating aircrafts, sold and leased back | 45 | 45 | |||
Future minimum lease payments vies | $585 | $585 | |||
Minimum [Member] | |||||
Operating Leases (Textual) [Abstract] | |||||
Operating Lease Term Expiration Range | 2016 | ||||
Maximum [Member] | |||||
Operating Leases (Textual) [Abstract] | |||||
Operating Lease Term Expiration Range | 2026 | ||||
A-320-200 [Member] | |||||
Operating Leases (Textual) [Abstract] | |||||
Number of aircraft leased | 6 | ||||
Number of aircraft leased which will expire in one year | 0 | 8 | 3 | 0 | |
Operating lease term | 6 years | ||||
Aircraft [Member] | |||||
Operating Leases (Textual) [Abstract] | |||||
Number of aircraft leased | 60 | 60 | |||
Number of aircraft operated | 203 | 203 |
Longterm_Debt_Shortterm_Borrow4
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Details 1) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Maturities of long-term debt and capital leases | |
2015 | $265 |
2016 | 464 |
2017 | 216 |
2018 | 227 |
2019 | 227 |
Thereafter | $834 |
Longterm_Debt_Shortterm_Borrow5
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value | $2,063 | $2,480 |
Estimated Fair Value | 2,529 | 2,724 |
Public Debt Floating rate Class G-1, due 2013, 2014 and 2016 [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value | 35 | 55 |
Estimated Fair Value | 35 | 54 |
Public Debt Floating rate Class G-2 due 2014 and 2016 [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value | 185 | 373 |
Estimated Fair Value | 180 | 365 |
Public Debt Fixed rate special facility bonds, due through 2036 [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value | 77 | 78 |
Estimated Fair Value | 78 | 68 |
Public Debt 6.75% convertible debentures due in 2039 [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value | 86 | 162 |
Estimated Fair Value | 283 | 297 |
Public Debt 5.5% convertible debentures due in 2038 [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value | 68 | 68 |
Estimated Fair Value | 241 | 134 |
Non Public Debt Fixed Rate Enhanced Equipment Notes Due Through Two Thousand And Twenty Three [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value | 217 | 0 |
Estimated Fair Value | 224 | 0 |
Non-Public Debt Floating rate equipment notes, due through 2025 [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value | 276 | 634 |
Estimated Fair Value | 277 | 645 |
Non-Public Debt Fixed rate equipment notes due through 2026 [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value | 1,119 | 1,110 |
Estimated Fair Value | $1,211 | $1,161 |
Longterm_Debt_Shortterm_Borrow6
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 21 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2005 | Mar. 31, 2014 | Dec. 31, 2014 | Jun. 04, 2008 | Oct. 31, 2011 | Sep. 30, 2009 | Dec. 31, 2009 | Dec. 31, 2008 | Jun. 30, 2014 | Apr. 11, 2013 | Jul. 31, 2012 | Nov. 30, 2014 | Apr. 23, 2013 | Nov. 30, 2006 | Nov. 30, 2004 | Mar. 31, 2004 | Jul. 09, 2009 | |
aircraft | aircraft | aircraft | interest_payment | ||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Face value of convertible debt issued | $42,000,000 | ||||||||||||||||||||
Number of Airbus purchased | 28 | ||||||||||||||||||||
Debt instrument, net amount | 43,000,000 | ||||||||||||||||||||
Debt instrument, unamortized premium | 1,000,000 | ||||||||||||||||||||
Gains (Losses) on the early extinguishment of debt | 3,000,000 | ||||||||||||||||||||
Convertible debt redemption | 77,000,000 | 55,000,000 | |||||||||||||||||||
Fair value of the share lending arrangement | 22,000,000 | 22,000,000 | |||||||||||||||||||
Capital leases | 105,000,000 | 170,000,000 | 105,000,000 | 170,000,000 | |||||||||||||||||
Accumulated amortization on capital leases | 33,000,000 | 40,000,000 | 33,000,000 | 40,000,000 | |||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
2015 | 40,000,000 | 40,000,000 | |||||||||||||||||||
2016 | 40,000,000 | 40,000,000 | |||||||||||||||||||
2017 | 40,000,000 | 40,000,000 | |||||||||||||||||||
2018 | 40,000,000 | 40,000,000 | |||||||||||||||||||
2019 | 40,000,000 | 40,000,000 | |||||||||||||||||||
Thereafter | 576,000,000 | 576,000,000 | |||||||||||||||||||
Future minimum lease interest payments | 43,000,000 | 43,000,000 | |||||||||||||||||||
Present value of capital leases | 170,000,000 | 170,000,000 | |||||||||||||||||||
Current portion of capital leases | 15,000,000 | 15,000,000 | |||||||||||||||||||
Long-term portion of capital leases | 155,000,000 | 155,000,000 | |||||||||||||||||||
Number of aircraft securing modified debt | 3 | ||||||||||||||||||||
Number of aircraft for which funds were deposited to lower borrowing rates | 2 | ||||||||||||||||||||
Funds deposited as security for debt | 48,000,000 | 57,000,000 | |||||||||||||||||||
Long-term debt and capital lease obligations | 2,116,000,000 | 1,968,000,000 | 2,116,000,000 | 1,968,000,000 | |||||||||||||||||
Value of aircraft, engines and other equipment and facilities which were pledged as security under various loan agreements | 3,250,000,000 | 3,250,000,000 | |||||||||||||||||||
Cash payments for interest related to debt and capital lease obligations, net of capitalized interest | 102,000,000 | 117,000,000 | 136,000,000 | ||||||||||||||||||
Morgan Stanley [Member] | |||||||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
Maximum borrowing capacity on line of credit | 200,000,000 | 100,000,000 | |||||||||||||||||||
Variable rate based on LIBOR | LIBOR, plus a margin | ||||||||||||||||||||
Line of credit facility, amount outstanding | 0 | 0 | 0 | 0 | |||||||||||||||||
Enhanced Equipment Trust Certificate [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Face value of convertible debt issued | 226,000,000 | ||||||||||||||||||||
Frequency of interest payments | semi-annually | ||||||||||||||||||||
Line of Credit [Member] | |||||||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
Variable rate based on LIBOR | LIBOR plus a margin | ||||||||||||||||||||
Line of Credit [Member] | CitiBank [Member] | Revolving Credit Facility and Letter of Credit Facility [Member] | |||||||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
Variable rate based on LIBOR | LIBOR, plus a margin | ||||||||||||||||||||
Line of credit facility, amount outstanding | 0 | 0 | 0 | 0 | |||||||||||||||||
Line of credit facility, current borrowing capacity | 400,000,000 | 350,000,000 | |||||||||||||||||||
Aircraft Member | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Capital leases | 152,000,000 | 253,000,000 | 152,000,000 | 253,000,000 | |||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
2015 | 23,000,000 | 23,000,000 | |||||||||||||||||||
2016 | 23,000,000 | 23,000,000 | |||||||||||||||||||
2017 | 23,000,000 | 23,000,000 | |||||||||||||||||||
2018 | 23,000,000 | 23,000,000 | |||||||||||||||||||
2019 | 23,000,000 | 23,000,000 | |||||||||||||||||||
Thereafter | 98,000,000 | 98,000,000 | |||||||||||||||||||
A-320-200 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Number of aircraft under capital lease | 4 | 4 | 4 | 4 | |||||||||||||||||
A-320-200 [Member] | Enhanced Equipment Trust Certificate [Member] | |||||||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
Number of new aircraft held as security | 14 | ||||||||||||||||||||
A-320-200 [Member] | Secured Debt [Member] | |||||||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
unencumbered aircraft | 14 | ||||||||||||||||||||
A-321-200 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Number of aircraft under capital lease | 2 | 2 | |||||||||||||||||||
Maximum [Member] | Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.75% | ||||||||||||||||||||
Minimum [Member] | Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||||||||||||||
2006 Public Offering [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Face value of convertible debt issued | 124,000,000 | ||||||||||||||||||||
Class G-1 certificates [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Face value of convertible debt issued | 119,000,000 | 119,000,000 | |||||||||||||||||||
2004 Public Offering [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Face value of convertible debt issued | 498,000,000 | 431,000,000 | |||||||||||||||||||
Interest rate | 4.40% | 4.40% | |||||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
Variable rate based on LIBOR | LIBOR, plus a margin | ||||||||||||||||||||
Class G-1 certificates for the November 2004 offering [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Frequency of interest payments | Quarterly | ||||||||||||||||||||
Balance of swapped certificates | 35,000,000 | 35,000,000 | |||||||||||||||||||
Public Debt 6.75% convertible debentures due in 2039 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Frequency of interest payments | semi-annually | ||||||||||||||||||||
Interest rate | 6.75% | 6.75% | |||||||||||||||||||
Net proceeds after underwriting and other transaction | 197,000,000 | ||||||||||||||||||||
Convertible number of shares | 204.6036 | ||||||||||||||||||||
Repurchased amount of convertible debentures | 1,000 | ||||||||||||||||||||
Maximum number of shares for convertible debt | 20,300,000 | ||||||||||||||||||||
Redemption price of debentures as percentage of principal amount | 100.00% | ||||||||||||||||||||
Public Debt 6.75% convertible debentures due in 2039 [Member] | Maximum [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Convertible number of shares | 235.2941 | ||||||||||||||||||||
Public Debt 6.75% Series A convertible debentures due 2039 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Face value of convertible debt issued | 115,000,000 | ||||||||||||||||||||
Interest rate | 6.75% | 6.75% | |||||||||||||||||||
Convertible debt redemption | 76,000,000 | ||||||||||||||||||||
Shares issued in conversion of debentures during the period | 15,500,000 | ||||||||||||||||||||
Public Debt 6.75% Series B convertible debentures due 2039 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Face value of convertible debt issued | 86,000,000 | ||||||||||||||||||||
Interest rate | 6.75% | 6.75% | |||||||||||||||||||
Number of common shares into which debentures are convertible | 20,300,000 | ||||||||||||||||||||
Remaining principal balance of convertible debt | 86,000,000 | 86,000,000 | |||||||||||||||||||
Public Debt 5.5% convertible debentures due in 2038 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Frequency of interest payments | semi-annual | ||||||||||||||||||||
Interest rate | 5.50% | 5.50% | |||||||||||||||||||
Redemption price of debentures as percentage of principal amount | 100.00% | ||||||||||||||||||||
Amount deposited in escrow account | 32,000,000 | ||||||||||||||||||||
Number of semi-annual interest payments represented in escrow deposit | 6 | ||||||||||||||||||||
Number of shares outstanding under own share lending arrangement | 44,900,000 | ||||||||||||||||||||
Lending fee received per share from share borrower | $0.01 | ||||||||||||||||||||
Fair value recognized as debt issuance cost | 5,000,000 | ||||||||||||||||||||
Net debt issuance costs | 0 | 0 | |||||||||||||||||||
Convertible debt redemption | 79,000,000 | ||||||||||||||||||||
Shares issued in conversion of debentures during the period | 17,500,000 | ||||||||||||||||||||
Cash payments from escrow accounts related to conversion | 11,000,000 | ||||||||||||||||||||
Own-share lending arrangement shares returned by borrower | 16,600,000 | 10,000,000 | |||||||||||||||||||
Common stock lent to share borrower | 1,400,000 | 1,400,000 | |||||||||||||||||||
Public Debt 5.5% convertible debentures due in 2038 [Member] | Maximum [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Number of common shares into which debentures are convertible | 18,200,000 | ||||||||||||||||||||
Public Debt 5.5% Series A convertible debentures due 2038 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Face value of convertible debt issued | 100,600,000 | ||||||||||||||||||||
Interest rate | 5.50% | 5.50% | |||||||||||||||||||
Convertible number of shares | 220.6288 | ||||||||||||||||||||
Repurchased amount of convertible debentures | 1,000 | ||||||||||||||||||||
Shares issued in conversion of debentures during the period | 12,200,000 | ||||||||||||||||||||
Stock issued during period, value, conversion of convertible securities, net of adjustments | 55,000,000 | ||||||||||||||||||||
Public Debt 5.5% Series B convertible debentures due 2038 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Face value of convertible debt issued | 100,600,000 | ||||||||||||||||||||
Interest rate | 5.50% | 5.50% | |||||||||||||||||||
Convertible number of shares | 225.2252 | ||||||||||||||||||||
Repurchased amount of convertible debentures | 1,000 | ||||||||||||||||||||
Number of common shares into which debentures are convertible | 15,200,000 | ||||||||||||||||||||
Remaining principal balance of convertible debt | 68,000,000 | 68,000,000 | |||||||||||||||||||
PK Financing Agreement [Member] | Secured Debt [Member] | |||||||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
Variable rate based on LIBOR | LIBOR, plus a margin | ||||||||||||||||||||
Extinguishment of Debt, Amount | 299,000,000 | ||||||||||||||||||||
Public Debt Floating Rate Class G Two Due Two Thousand Fourteen And Two Thousand Sixteen Member | Enhanced Equipment Trust Certificate [Member] | |||||||||||||||||||||
Capital Leases, Future Minimum Payments Due [Abstract] | |||||||||||||||||||||
Long-term debt and capital lease obligations | 188,000,000 | ||||||||||||||||||||
Class G Two Certificates For November Two Zero Zero Four Offering [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Frequency of interest payments | quarterly |
JFK_Terminal_5_Details
JFK Terminal 5 (Details) (USD $) | 12 Months Ended | 32 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
airport_gate | acre | airport_gate | ||
sqft | ||||
JFK Terminal Five [Abstract] | ||||
Capital Leases, Future Minimum Payments, Receivable in Two Years | $13 | $13 | ||
Capital Leases, Future Minimum Payments, Receivable in Three Years | 13 | 13 | ||
JFK Terminal 5 (Textual) [Abstract] | ||||
Responsible for construction under facility lease agreement of 26-gate terminal | 635,000 | |||
Number of gates in a terminal | 26 | |||
Lease agreement extension, additional area of property | 19 | |||
Number of international arrival gates, new gates and gates converted from T5 | 6 | 6 | ||
Number of international arrival gates, new gates | 3 | 3 | ||
Number of international arrival gates, gates converted from T5 | 3 | 3 | ||
Payments for capital improvements | 102 | 190 | ||
Total costs incurred for the elements of the project subject to underlying ground lease | 637 | 637 | ||
Assets constructed for others | 561 | 561 | 561 | |
Leasehold improvements included in ground property and equipment | 76 | 76 | ||
Non-cancelable lease term | 25 years | |||
Amortization expense | 23 | 23 | 23 | |
Minimum estimated facility payments, 2016 | 40 | 40 | ||
Minimum estimated facility payments, 2018 | 40 | 40 | ||
Minimum estimated facility payments, 2019 | 40 | 40 | ||
Thereafter | 576 | 576 | ||
Construction obligation, 2015 | 15 | 15 | ||
Construction obligation, 2016 | 15 | 15 | ||
Construction obligation, 2017 | 16 | 16 | ||
Construction obligation, 2018 | 17 | 17 | ||
Construction obligation, 2019 | 18 | 18 | ||
Interest Expense, Lessee, Assets under Capital Lease | 26 | 27 | 27 | |
Capital Leases, Future Minimum Payments Receivable, Next Twelve Months | 13 | 13 | ||
Capital leases, future minimum payments receivable, 2018 | 13 | 13 | ||
Capital Leases, Future Minimum Payments Due in Three Years | 40 | 40 | ||
Capital leases, future minimum payments receivable, 2019 | $6 | $6 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 09, 2014 | 29-May-14 | 28-May-14 | Sep. 08, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | 29-May-14 | Sep. 30, 2012 |
Stockholders' Equity Note [Abstract] | ||||||||||
Stock repurchase program, authorized amount | 25,000,000 | |||||||||
Stock repurchase program, period in force | 5 years | |||||||||
Stock repurchased during period, shares | 4,100,000 | 500,000 | ||||||||
Payments for repurchase of common stock | $13 | $23 | $3 | |||||||
Stock repurchase program, remaining number of shares authorized to be repurchased | 13,300,000 | |||||||||
Common Stock reserved for issuance | 60,800,000 | |||||||||
Treasury stock | 50,902,448 | 59,012,651 | ||||||||
Treasury Stock, Shares, Acquired | 5,500,000 | 5,100,000 | 1,600,000 | 400,000 | ||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $60 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Net income | $88 | $79 | $230 | $4 | $47 | $71 | $36 | $14 | $401 | $168 | $128 |
Effect of dilutive securities: | |||||||||||
Interest on convertible debt, net of income taxes and profit sharing | 7 | 9 | 9 | ||||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | 408 | 177 | 137 | ||||||||
Denominator: | |||||||||||
Weighted average shares outstanding for basic earnings per share | 294.7 | 282.8 | 282.3 | ||||||||
Employee stock options and restricted stock units | 2.4 | 2.1 | 1.2 | ||||||||
Convertible debt | 46.2 | 58.6 | 60.6 | ||||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 343.3 | 343.5 | 344.1 | ||||||||
Shares excluded from EPS calculation (in millions): | |||||||||||
Own-share Lending Arrangement, Shares, Outstanding, Value | $22 | $22 | |||||||||
Convertible Debt Securities [Member] | |||||||||||
Shares excluded from EPS calculation (in millions): | |||||||||||
Shares excluded from EPS calculation | 0 | 0 | 0 | ||||||||
Stock Compensation Plan [Member] | |||||||||||
Shares excluded from EPS calculation (in millions): | |||||||||||
Shares excluded from EPS calculation | 6.9 | 13.8 | 19.5 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Unit Activity Under 2011 Plan [Member] | |||
Summary of restricted stock unit activity | |||
Nonvested shares, beginning balance | 4,118,849 | 2,483,664 | 65,914 |
Nonvested, Weighted average grant date fair value, beginning balance | $5.94 | $5.77 | $5.08 |
Restricted stock unit activity granted, shares | 1,930,851 | 2,653,842 | 2,570,891 |
Restricted stock unit activity granted, weighted average grant date fair value | $8.62 | $6.08 | $5.79 |
Restricted stock unit activity vested, shares | -1,903,229 | -828,291 | -20,249 |
Restricted stock unit activity vested, weighted average grant date fair value | $5.97 | $5.77 | $5.09 |
Restricted stock unit activity forfeited, shares | -361,385 | -190,366 | -132,892 |
Restricted stock unit activity forfeited, weighted average grant date fair value | $7.02 | $5.82 | $5.83 |
Nonvested shares, ending balance | 3,785,086 | 4,118,849 | 2,483,664 |
Nonvested, weighted average grant date fair value, ending balance | $7.18 | $5.94 | $5.77 |
Restricted Stock Unit Activity Under 2002 Plan [Member] | |||
Summary of restricted stock unit activity | |||
Nonvested shares, beginning balance | 711,494 | 2,029,081 | 4,093,484 |
Nonvested, Weighted average grant date fair value, beginning balance | $6 | $5.85 | $5.64 |
Restricted stock unit activity granted, shares | 0 | 0 | 0 |
Restricted stock unit activity granted, weighted average grant date fair value | $0 | $0 | $0 |
Restricted stock unit activity vested, shares | -708,728 | -1,257,045 | -1,921,940 |
Restricted stock unit activity vested, weighted average grant date fair value | $6 | $5.76 | $5.41 |
Restricted stock unit activity forfeited, shares | -2,766 | -60,542 | -142,463 |
Restricted stock unit activity forfeited, weighted average grant date fair value | $6.03 | $5.99 | $5.76 |
Nonvested shares, ending balance | 0 | 711,494 | 2,029,081 |
Nonvested, weighted average grant date fair value, ending balance | $0 | $6 | $5.85 |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of stock option activity | |||
Outstanding at beginning of year | 11,384,688 | 15,845,124 | 21,807,170 |
Outstanding at beginning of year, per share | $13.45 | $14.87 | $13.91 |
Shares granted | 0 | 0 | 0 |
Granted, per share | $0 | $0 | $0 |
Exercised | -1,950,482 | -10,800 | -493,731 |
Exercised, per share | $11.58 | $7.79 | $4 |
Forfeited | 0 | 0 | 0 |
Forfeited, per share | $0 | $0 | $0 |
Expired | -3,456,986 | -4,449,636 | -5,468,315 |
Expired, per share | $16.38 | $18.50 | $12.03 |
Outstanding at end of year | 5,977,220 | 11,384,688 | 15,845,124 |
Outstanding at end of year, per share | $12.38 | $13.45 | $14.87 |
Vested at end of year | 5,977,220 | 11,384,688 | 15,845,124 |
Vested at end of year, per share | $12.38 | $13.45 | $14.87 |
ShareBased_Compensation_Detail2
Share-Based Compensation (Details 2) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Summary of outstanding stock options | |
Options Outstanding, shares | 5,977,220 |
Share-based compensation shares authorized under stock option plans exercise price range outstanding options intrinsic value | $22 |
Range $7.79 to $19.25 [Member] | |
Summary of outstanding stock options | |
Options Outstanding, shares | 5,977,220 |
Options Outstanding, weighted average remaining contractual life | 1 year 3 months |
Options Outstanding, per share | $0 |
Share-based compensation shares authorized under stock option plans exercise price range outstanding options intrinsic value | $22 |
ShareBased_Compensation_Detail3
Share-Based Compensation (Details 3) (Crewmember Stock Purchase Plan 2011 [Member], USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Crewmember Stock Purchase Plan 2011 [Member] | ||||
Summary of CSPP share reserve activity | ||||
Available for future purchases, beginning of year | 2,552,321 | 4,855,144 | 6,436,224 | 8,000,000 |
Common stock purchased | -2,332,823 | -1,581,080 | -1,563,776 | |
Common stock purchased, per share | $8.04 | $6.20 | $4.75 | |
Available for future purchases, end of year | 2,552,321 | 4,855,144 | 6,436,224 | 8,000,000 |
ShareBased_Compensation_Detail4
Share-Based Compensation (Details Textual) (USD $) | 12 Months Ended | 23 Months Ended | 72 Months Ended | 12 Months Ended | 20 Months Ended | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Apr. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-Based Compensation (Textual) [Abstract] | |||||||
Nonvested Awards, Total Compensation Cost Not yet Recognized | $13 | $13 | 13 | ||||
Number of years expected to recognize stock-based compensation | 2 years | ||||||
Shares issued following the Director's departure from the Board | six months and one day | ||||||
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Number of Options Granted Since 2008 | 0 | ||||||
Period for successive overlapping | 6 months | ||||||
Purchase price discount based upon the stock price | 5.00% | ||||||
Outstanding voting securities | 50.00% | ||||||
Exercise price of purchasing rights as percentage of fair market value per share in case of acquisition | 85.00% | ||||||
Incentive Compensation Plan 2011 [Member] | |||||||
Share-Based Compensation (Textual) [Abstract] | |||||||
Common stock reserved for issuance available to employees | 15 | ||||||
Crewmember Stock Purchase Plan 2011 [Member] | |||||||
Share-Based Compensation (Textual) [Abstract] | |||||||
Deferred Compensation Arrangement with Individual, Compensation Expense | 3 | 2 | |||||
Common stock reserved for issuance available to employees | 8 | ||||||
Employees contribution towards purchase of common stock | 10.00% | 10.00% | 10.00% | ||||
Purchase price discount based upon the stock price | 15.00% | ||||||
Stock Option 2002 Plan [Member] | |||||||
Share-Based Compensation (Textual) [Abstract] | |||||||
Award Expiration Period | 10 years | ||||||
Total intrinsic value of date of exercise, options exercised | 5 | 1 | |||||
Cash from stock option exercises | 22 | 2 | |||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-Based Compensation (Textual) [Abstract] | |||||||
Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | 3.8 | 3.8 | 3.8 | ||||
Equity Instruments Other than Options, Vested in Period, Total Fair Value | $23 | $13 | $11 | ||||
Restricted Stock Units (RSUs) [Member] | Restricted Stock Unit Activity Under 2011 Plan [Member] | |||||||
Share-Based Compensation (Textual) [Abstract] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Restricted Stock Units (RSUs) [Member] | Restricted Stock Unit 2002 Plan [Member] | |||||||
Share-Based Compensation (Textual) [Abstract] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Deferred Stock Units (DSU's) [Member] | |||||||
Share-Based Compensation (Textual) [Abstract] | |||||||
Minimum Vesting Period | 1 year | ||||||
Maximum Vesting Period | 3 years | ||||||
Minimum [Member] | |||||||
Share-Based Compensation (Textual) [Abstract] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $7.79 | ||||||
Maximum [Member] | |||||||
Share-Based Compensation (Textual) [Abstract] | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $15.27 |
LiveTV_Details
LiveTV (Details) (USD $) | 3 Months Ended | 12 Months Ended | 6 Months Ended | 1 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 10, 2014 | Jun. 30, 2014 | Sep. 25, 2014 |
Proceeds from disposition of assets | $393 | $0 | $0 | ||||||
Proceeds from Divestiture of Businesses | 242 | 241 | |||||||
Disposition of Assets, Transaction Costs | 19 | ||||||||
Tax expense related to disposition of assets | 72 | ||||||||
Capital Loss Carryforward due to sale of subsidiary | 19 | ||||||||
gain on disposition of assets, net of tax | 169 | ||||||||
Other Revenue, Net | 474 | 470 | 432 | ||||||
LiveTV (Textual) [Abstract] | |||||||||
Deferred profit and advance deposits | 0 | 42 | |||||||
Net book value of equipment installed for other airlines | 0 | 102 | |||||||
Gain (Loss) on Contract Termination | 7 | 8 | |||||||
In Flight Entertainment Systems Member | |||||||||
Other Revenue, Net | 72 | 81 | 30 | ||||||
In Flight Entertainment Systems Member | |||||||||
Unrecorded Unconditional Purchase Obligations, Term | 7 years | ||||||||
LiveTV [Member] | |||||||||
Contract sale price for subsidiary | 399 | ||||||||
LiveTV Sat [Member] | |||||||||
Contract sale price for subsidiary | $1 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred: | |||
Federal | $192 | $95 | $68 |
State | 20 | 12 | 8 |
Deferred income tax expense | 212 | 107 | 76 |
Current income tax expense | 10 | 4 | 5 |
Total income tax expense | $222 | $111 | $81 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 10, 2014 |
Schedule of income taxes differed from the federal income tax statutory rate | ||||
Income tax expense at statutory rate | $218 | $98 | $73 | |
Increase resulting from: | ||||
State income tax, net of federal benefit | 18 | 9 | 6 | |
Deferred Tax Assets, Capital Loss Carryforwards | -19 | 0 | 0 | |
Capital Loss Carryforward due to sale of subsidiary | 19 | |||
Other, net | 5 | 4 | 2 | |
Total income tax expense | $222 | $111 | $81 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss carryforwards | $152 | $157 |
Employee benefits | 41 | 40 |
Deferred revenue/gains | 102 | 95 |
Rent expense | 30 | 24 |
Terminal 5 lease | 32 | 29 |
Capital loss carryforwards | 0 | 20 |
Other | 27 | 31 |
Valuation allowance | 0 | -20 |
Deferred Tax Assets, Derivative Instruments | 40 | 1 |
Deferred tax assets, net | 424 | 377 |
Deferred tax liabilities: | ||
Accelerated depreciation | -1,082 | -862 |
Deferred tax liabilities, net | -1,082 | -862 |
Net deferred tax liability | ($658) | ($485) |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Unrecognized tax benefits, beginning balance | $11 | $13 | $12 |
Decreases for settlement with tax authorities during the period | -1 | ||
Increases for tax positions taken during the period | 2 | ||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 4 | 2 | 1 |
Unrecognized tax benefits, ending balance | 16 | 11 | 13 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $4 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 10, 2014 |
Income Tax Disclosure [Abstract] | ||||
Cash payments for income taxes | $8 | $4 | $4 | |
Current net deferred tax asset | 174 | 120 | ||
Long-term net deferred tax liability | 832 | 605 | ||
U.S. Federal regular net operating loss carryforwards | 446 | |||
Alternative minimum tax net operating loss carryforwards | 410 | |||
Deferred tax assets of state net operating loss | 7 | |||
Deferred tax assets of credit carryforwards | 9 | |||
Deferred Tax Asset, Capital Loss Carryforward, Section 382 Limitation | 0 | |||
Capital Loss Carryforward due to sale of subsidiary | 19 | |||
Deferred Tax Assets, Capital Loss Carryforwards | 0 | 20 | ||
Valuation allowance to reduce the deferred tax assets | 0 | |||
Unrecognized tax benefits would impact on effective tax rate | $12 |
Employee_Retirement_Plan_Detai
Employee Retirement Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee retirement plan (Textual) [Abstract] | |||
Percentage of compensation in cash | 100.00% | ||
Percentage of employees' pay | 5.00% | ||
Years of service | 5 years | ||
Percentage of employee's pay for profit sharing match | 5.00% | ||
Period of discretionary contribution | 3 years | ||
Contribution to employee retirement plan | $119 | $94 | $73 |
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% |
Commitments_Details
Commitments (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 10, 2014 | Dec. 31, 2014 | Nov. 30, 2014 | Oct. 31, 2013 | |
aircraft | aircraft | |||
Commitments (Textual) [Abstract] | ||||
Committed expenditure due in twelve months | $610,000,000 | |||
Committed expenditure due in second year | 545,000,000 | |||
Committed expenditure due in third year | 595,000,000 | |||
Committed expenditure due in fourth year | 520,000,000 | |||
Committed expenditure due fifth | 935,000,000 | |||
Committed expenditure due thereafter | 3,500,000,000 | |||
Restricted assets pledged related to workers compensation insurance policies and other business partner agreements | 24,000,000 | |||
Loss Contingency Accrual | 3,000,000 | |||
Minimum committed capital expenditure | 20,000,000 | |||
Minimum additional committed capital expenditure | $25,000,000 | |||
Employment agreement | 5 years | |||
Renewal notice period | 90 days | |||
Airbus A321 [Member] | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Deliver Change | 13 | 15 | ||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Change | 10 | 8 | ||
Number of aircraft and spare engine orders by the firm | 33 | |||
Commitments (Textual) [Abstract] | ||||
Number of Aircrafts Delivery Cash | 12 | |||
Airbus A321 Neo [Member] | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Deliver Change | 20 | |||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Change | 10 | |||
Number of aircraft and spare engine orders by the firm | 45 | |||
Airbus A320 neo [Member] | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Change | 5 | |||
Number of aircraft and spare engine orders by the firm | 25 | |||
EMBRAER 190 [Member] | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Deliver Change | 24 | |||
Number of aircraft and spare engine orders by the firm | 24 | |||
Spare Engines [Member] | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Number of aircraft and spare engine orders by the firm | 10 | |||
Airbus Athree two one - two thousand fifteen [Member] | ||||
Commitments (Textual) [Abstract] | ||||
Number Of Aircraft Scheduled To Receive | 12 | |||
Airbus Athree two zero [Member] | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Deliver Change | 8 | |||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Change | 3 | |||
In Flight Entertainment Systems Member | ||||
Commitments (Textual) [Abstract] | ||||
Unrecorded Unconditional Purchase Obligations, Term | 7 years |
Contingencies_Details
Contingencies (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Contingencies (Textual) [Abstract] | |
Maximum period of limit for loan repayment | 15 years |
Maximum period of limit for repayment regarding leases with foreign lenders | 20 years |
Maximum period of contract range of specified parties related to legal liability | 25 years |
Asset retirement obligations, noncurrent | $6 |
Loss_Contingencies_Details
Loss Contingencies (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Jul. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
pilot | |||
Loss Contingency, Estimate [Abstract] | |||
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% | ||
Number Of Claimants Awarded in Employment Agreement Dispute | 318 | ||
Loss Contingency, Damages Awarded, Value | 4.4 | ||
Environmental Issue [Member] | |||
Loss Contingency, Estimate [Abstract] | |||
Cost of remediation estimate (less than $1 million, minimum) | 1 | ||
Cost of remediation estimate ($3 million, maximum) | 3 | ||
Live T.V. Breach of Contract [Member] | |||
Loss Contingency, Estimate [Abstract] | |||
Loss contingency, damages sought, value | $15 |
Financial_Derivative_Instrumen2
Financial Derivative Instruments and Risk Management (Details) (Scenario, Forecast [Member]) | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Percentage fuel covered under derivative contracts | ||||
Percentage fuel hedged | 15.00% | 14.00% | 20.00% | 20.00% |
Fuel [Member] | Jet Fuel Swap Agreements [Member] | ||||
Percentage fuel covered under derivative contracts | ||||
Percentage fuel hedged | 5.00% | 5.00% | 10.00% | 10.00% |
Fuel [Member] | Jet Fuel Collar Agreement [Member] | ||||
Percentage fuel covered under derivative contracts | ||||
Percentage fuel hedged | 0.00% | 0.00% | 10.00% | 10.00% |
Heating Oil [Member] | Heating Oil Collar Agreement [Member] | ||||
Percentage fuel covered under derivative contracts | ||||
Percentage fuel hedged | 10.00% | 9.00% | 0.00% | 0.00% |
Financial_Derivative_Instrumen3
Financial Derivative Instruments and Risk Management (Details 1) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
bbl | bbl | |
Fuel derivatives [Member] | ||
Derivative instrument in statement of financial position | ||
Asset fair value recorded in prepaid expenses and other | $0 | $6 |
Liability fair value recorded in other accrued liabilities | 102 | 0 |
Longest remaining term (months) | 12 months | 12 months |
Hedged volume (barrels, in thousands) | 2,808,000 | 1,320,000 |
Estimated amount of existing gains (losses) expected to be reclassified into earnings in the next 12 months | -102 | 3 |
Fuel derivatives [Member] | Prepaid expenses and other [Member] | ||
Derivative instrument in statement of financial position | ||
Asset fair value recorded in prepaid expenses and other | 0 | 6 |
Fuel derivatives [Member] | Other accrued liabilities [Member] | ||
Derivative instrument in statement of financial position | ||
Liability fair value recorded in other accrued liabilities | 102 | 0 |
Interest Rate Contract [Member] | ||
Derivative instrument in statement of financial position | ||
Liability fair value recorded in other long term liabilities | 1 | 3 |
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | ($1) | ($2) |
Financial_Derivative_Instrumen4
Financial Derivative Instruments and Risk Management (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fuel derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Percentage of actual consumption economically hedged | 20.00% | 21.00% | 30.00% |
Aircraft fuel expense [Member] | Fuel derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedge effectiveness gains (losses) recognized in aircraft fuel expense | -30 | -10 | 10 |
Other income (expense) [Member] | Fuel derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not qualifying for hedge accounting recognized in other expense | 2 | 0 | -3 |
Other income (expense) [Member] | Interest Rate Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedge losses on derivatives recognized in interest expense | 0 | ||
Comprehensive Income [Member] | Fuel derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedge gains (losses) on derivatives recognized in comprehensive income | -134 | -6 | 14 |
Comprehensive Income [Member] | Interest Rate Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedge gains (losses) on derivatives recognized in comprehensive income | 0 | 1 | -3 |
Interest expense [Member] | Interest Rate Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedge losses on derivatives recognized in interest expense | -1 | -8 | -11 |
Financial_Derivative_Instrumen5
Financial Derivative Instruments and Risk Management (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fuel derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Assets, gross amount of recognized, fuel derivatives | $0 | $6 |
Liabilities, gross amount of recognized, fuel derivatives | 102 | 0 |
Collateral Already Posted, Aggregate Fair Value | 51 | 0 |
Assets, net amount presented in balance sheet | 0 | 6 |
Liabilities, net amount presented in balance sheet | 51 | 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 | 1 | 3 |
Collateral Already Posted, Aggregate Fair Value | 1 | 3 |
Assets, net amount presented in balance sheet | 0 | 0 |
Liabilities, net amount presented in balance sheet | $0 | $0 |
Financial_Derivative_Instrumen6
Financial Derivative Instruments and Risk Management (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives, Fair Value [Line Items] | |||
Other Derivatives Not Designated as Hedging Instruments Liabilities at Fair Value | $0 | ||
Number of counterparties to derivative agreements | 7 | ||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of interest rate cash flow hedge derivatives | 35 | ||
Interest Rate Contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Collateral Already Posted, Aggregate Fair Value | 1 | 3 | |
Interest Rate Contract [Member] | Other income (expense) [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Hedge losses on derivatives recognized in interest expense | 0 | ||
Interest Rate Contract [Member] | Interest Expense [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Hedge losses on derivatives recognized in interest expense | -1 | -8 | -11 |
Fuel derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Collateral Already Posted, Aggregate Fair Value | $51 | $0 |
Fair_Value_Details
Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Available-for-sale investment securities | $125 | $188 |
Recurring [Member] | ||
Assets | ||
Cash and cash equivalents | 153 | 51 |
Available-for-sale investment securities | 125 | 188 |
Assets, Total | 278 | 245 |
Liabilities | ||
Liabilities, Total | 103 | 3 |
Recurring [Member] | Aircraft Fuel Derivatives [Member] | ||
Assets | ||
Aircraft fuel derivatives | 0 | 6 |
Liabilities | ||
Aircraft fuel derivatives | 102 | 0 |
Recurring [Member] | Interest Rate Swap [Member] | ||
Liabilities | ||
Aircraft fuel derivatives | 1 | 3 |
Recurring [Member] | Level 1 [Member] | ||
Assets | ||
Cash and cash equivalents | 153 | 51 |
Available-for-sale investment securities | 0 | 0 |
Assets, Total | 153 | 51 |
Liabilities | ||
Liabilities, Total | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Aircraft Fuel Derivatives [Member] | ||
Assets | ||
Aircraft fuel derivatives | 0 | 0 |
Liabilities | ||
Aircraft fuel derivatives | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Interest Rate Swap [Member] | ||
Liabilities | ||
Aircraft fuel derivatives | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale investment securities | 125 | 188 |
Assets, Total | 125 | 194 |
Liabilities | ||
Liabilities, Total | 103 | 3 |
Recurring [Member] | Level 2 [Member] | Aircraft Fuel Derivatives [Member] | ||
Assets | ||
Aircraft fuel derivatives | 0 | 6 |
Liabilities | ||
Aircraft fuel derivatives | 102 | 0 |
Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | ||
Liabilities | ||
Aircraft fuel derivatives | 1 | 3 |
Recurring [Member] | Level 3 [Member] | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale investment securities | 0 | 0 |
Assets, Total | 0 | 0 |
Liabilities | ||
Liabilities, Total | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Aircraft Fuel Derivatives [Member] | ||
Assets | ||
Aircraft fuel derivatives | 0 | 0 |
Liabilities | ||
Aircraft fuel derivatives | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Interest Rate Swap [Member] | ||
Liabilities | ||
Aircraft fuel derivatives | $0 | $0 |
Fair_Value_Details_Textual
Fair Value (Details Textual) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | |
Cash Equivalent Maturity Period Description | three months or less |
Commercial paper maturity period description | three months but less than one year |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $0 |
Comprehensive_Income_Loss_Deta
Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated gains (losses), beginning balance | $0 | ($8) | ($15) |
Reclassifications into earnings | 19 | 11 | 1 |
Reclassification into earnings, Tax | 0 | 7 | 12 |
Change in fair value | 82 | 3 | -6 |
Change in fair value, Tax | 5 | -2 | -52 |
Accumulated gains (losses), ending balance | -63 | 0 | -8 |
Aircraft Fuel Derivatives [Member] | |||
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated gains (losses), beginning balance | 1 | -1 | -3 |
Reclassifications into earnings | 18 | 6 | -6 |
Change in fair value | 82 | 4 | -8 |
Accumulated gains (losses), ending balance | -63 | 1 | -1 |
Interest Rate Contract [Member] | |||
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated gains (losses), beginning balance | -1 | -7 | -12 |
Reclassifications into earnings | 1 | 5 | 7 |
Change in fair value | 0 | -1 | 2 |
Accumulated gains (losses), ending balance | $0 | ($1) | ($7) |
Geographic_Information_Details
Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summarization of operating revenues by geographic regions | |||||||||||
Operating revenues | $1,446 | $1,529 | $1,493 | $1,349 | $1,365 | $1,442 | $1,335 | $1,299 | $5,817 | $5,441 | $4,982 |
Domestic [Member] | |||||||||||
Summarization of operating revenues by geographic regions | |||||||||||
Operating revenues | 4,093 | 3,886 | 3,666 | ||||||||
Caribbean and Latin [Member] | |||||||||||
Summarization of operating revenues by geographic regions | |||||||||||
Operating revenues | $1,724 | $1,555 | $1,316 |
Geographic_Information_Details1
Geographic Information (Details Textual) | 12 Months Ended |
Dec. 31, 2014 | |
Caribbean and Latin [Member] | |
Geographic Information (Textual) [Abstract] | |
Number of destinations | 26 |
Puerto Rico [Member] | |
Geographic Information (Textual) [Abstract] | |
Number of destinations | 3 |
U.S Virgin Islands [Member] | |
Geographic Information (Textual) [Abstract] | |
Number of destinations | 2 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $1,446 | $1,529 | $1,493 | $1,349 | $1,365 | $1,442 | $1,335 | $1,299 | $5,817 | $5,441 | $4,982 |
Operating income | 169 | 164 | 141 | 41 | 115 | 152 | 102 | 59 | 515 | 428 | 376 |
Net income | $88 | $79 | $230 | $4 | $47 | $71 | $36 | $14 | $401 | $168 | $128 |
Basic earnings per share | $0.29 | $0.27 | $0.79 | $0.01 | $0.16 | $0.25 | $0.13 | $0.05 | $1.36 | $0.59 | $0.45 |
Diluted earnings per share | $0.26 | $0.24 | $0.68 | $0.01 | $0.14 | $0.21 | $0.11 | $0.05 | $1.19 | $0.52 | $0.40 |
Quarterly_Financial_Data_Unaud3
Quarterly Financial Data (Unaudited) (Details Textual 2) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2014 |
flight | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Flights Canceled | 4,100 | |||||
Proceeds from Divestiture of Businesses | $242 | $241 | ||||
Gains (Losses) on the early extinguishment of debt | 3 | |||||
Gain (Loss) on Contract Termination | 7 | 8 | ||||
Revenue Reduction due to Flight Cancellations | 50 | |||||
Operating Income Reduction due to Flight Cancellations | 35 | |||||
Spare Engines [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Gain (Loss) on Disposition of Assets | $2 | |||||
Property, Plant and Equipment, Number of Aircraft Sold | 3 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Valuation and Qualifying Accounts | ||||
Balance at end of period | $0 | |||
Allowance for doubtful accounts [Member] | ||||
Valuation and Qualifying Accounts | ||||
Balance at beginning of period | 5,795 | 6,593 | 7,586 | |
Charged to Costs and Expenses | 2,949 | 3,618 | 5,472 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | 3,014 | 4,416 | 6,465 | |
Balance at end of period | 5,730 | 5,795 | 6,593 | 7,586 |
Allowance for obsolete inventory parts [Member] | ||||
Valuation and Qualifying Accounts | ||||
Balance at beginning of period | 6,355 | 5,046 | 3,886 | |
Charged to Costs and Expenses | 1,719 | 1,309 | 1,250 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | 0 | 0 | 90 | |
Balance at end of period | 8,074 | 6,355 | 5,046 | 3,886 |
Valuation allowance for deferred tax assets [Member] | ||||
Valuation and Qualifying Accounts | ||||
Balance at beginning of period | 20,149 | 20,268 | 20,872 | |
Charged to Costs and Expenses | 0 | 0 | 0 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | 19,752 | 119 | 604 | |
Balance at end of period | $397 | $20,149 | $20,268 | $20,872 |