Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | JETBLUE AIRWAYS CORP |
Entity Central Index Key | 1,158,463 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 315,060,521 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 544 | $ 341 |
Investment securities | 588 | 367 |
Receivables, less allowance (2015-$7; 2014-$6) | 149 | 136 |
Prepaid expenses and other | 345 | 356 |
Total current assets | 1,626 | 1,200 |
PROPERTY AND EQUIPMENT | ||
Flight equipment | 6,719 | 6,233 |
Predelivery deposits for flight equipment | 180 | 207 |
Flight Equipment, gross plus deposits | 6,899 | 6,440 |
Less accumulated depreciation | 1,516 | 1,354 |
Flight Equipment, Net | 5,383 | 5,086 |
Other property and equipment | 857 | 816 |
Less accumulated depreciation | 286 | 252 |
Property plant and equipment other net | 571 | 564 |
Assets constructed for others | 561 | 561 |
Less accumulated depreciation | 155 | 139 |
Asset constructed for others net | 406 | 422 |
Total property and equipment | 6,360 | 6,072 |
OTHER ASSETS | ||
Investment securities | 47 | 60 |
Restricted cash | 66 | 61 |
Other | 495 | 446 |
Total other assets | 608 | 567 |
TOTAL ASSETS | 8,594 | 7,839 |
CURRENT LIABILITIES | ||
Accounts payable | 264 | 208 |
Air traffic liability | 1,101 | 973 |
Accrued salaries, wages and benefits | 307 | 203 |
Other accrued liabilities | 315 | 287 |
Current maturities of long-term debt and capital leases | 238 | 265 |
Total current liabilities | 2,225 | 1,936 |
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS | 1,744 | 1,968 |
CONSTRUCTION OBLIGATION | 476 | 487 |
DEFERRED TAXES AND OTHER LIABILITIES | ||
Deferred income taxes | 1,040 | 832 |
Other | 92 | 87 |
Total deferred taxes and other liabilities | 1,132 | 919 |
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, 381,674,691 and 368,883,960 shares issued and 315,060,521 and 309,871,309 shares outstanding at September 30, 2015 and December 31, 2014, respectively | 4 | 4 |
Treasury stock, at cost; 66,614,170 and 59,012,651 shares at September 30, 2015 and December 31, 2014, respectively | (289) | (125) |
Additional paid-in capital | 1,831 | 1,711 |
Retained earnings | 1,489 | 1,002 |
Accumulated other comprehensive loss | (18) | (63) |
Total stockholders’ equity | 3,017 | 2,529 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 8,594 | $ 7,839 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 7 | $ 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 | 381,674,691 | 368,883,960 |
Common stock, shares, outstanding | 315,060,521 | 309,871,309 |
Treasury stock, shares | 66,614,170 | 59,012,651 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING REVENUES | ||||
Passenger | $ 1,551 | $ 1,414 | $ 4,455 | $ 4,016 |
Other | 136 | 115 | 367 | 355 |
Total operating revenues | 1,687 | 1,529 | 4,822 | 4,371 |
OPERATING EXPENSES | ||||
Aircraft fuel and related taxes | 342 | 515 | 1,048 | 1,476 |
Salaries, wages and benefits | 389 | 318 | 1,139 | 963 |
Landing fees and other rents | 91 | 88 | 264 | 248 |
Depreciation and amortization | 84 | 79 | 252 | 234 |
Aircraft rent | 30 | 31 | 92 | 93 |
Sales and marketing | 69 | 59 | 199 | 182 |
Maintenance materials and repairs | 132 | 109 | 371 | 305 |
Other operating expenses | 199 | 166 | 571 | 524 |
Total operating expenses | 1,336 | 1,365 | 3,936 | 4,025 |
OPERATING INCOME | 351 | 164 | 886 | 346 |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (32) | (37) | (98) | (113) |
Capitalized interest | 2 | 4 | 6 | 11 |
Interest income (expense) and other | 1 | 1 | 0 | (2) |
Gain on sale of subsidiary | 0 | 0 | 0 | 241 |
Total other income (expense) | (29) | (32) | (92) | 137 |
INCOME BEFORE INCOME TAXES | 322 | 132 | 794 | 483 |
Income tax expense | 124 | 53 | 307 | 170 |
NET INCOME | $ 198 | $ 79 | $ 487 | $ 313 |
EARNINGS PER COMMON SHARE: | ||||
Earnings Per Share, Basic | $ 0.63 | $ 0.27 | $ 1.55 | $ 1.07 |
Earnings Per Share, Diluted | $ 0.58 | $ 0.24 | $ 1.42 | $ 0.93 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 198 | $ 79 | $ 487 | $ 313 |
Changes in fair value of derivative instruments, net of reclassifications into earnings (net of $3 and $(11) of taxes in 2015 and 2014, respectively) | 6 | (16) | 45 | (12) |
Total other comprehensive income (loss) | 6 | (16) | 45 | (12) |
COMPREHENSIVE INCOME | $ 204 | $ 63 | $ 532 | $ 301 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Taxes | $ 3 | $ (11) | $ 28 | $ (8) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Net Income | $ 487 | $ 313 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes | 201 | 157 |
Depreciation | 210 | 197 |
Amortization | 42 | 43 |
Stock-based compensation | 15 | 16 |
(Gains) losses on sale of assets, debt extinguishment, and customer contract termination | (7) | 3 |
Gain on sale of subsidiary | 0 | (241) |
Collateral returned for derivative instruments | 44 | 1 |
Changes in certain operating assets and liabilities | 300 | 208 |
Other, net | 2 | 27 |
Net cash provided by operating activities | 1,294 | 724 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (493) | (498) |
Predelivery deposits for flight equipment | (59) | (99) |
Proceeds from sale of subsidiary | 0 | 393 |
Purchase of held-to-maturity investments | (340) | (194) |
Proceeds from the maturities of held-to-maturity investments | 224 | 236 |
Purchase of available-for-sale securities | (237) | (335) |
Proceeds from the sale of available-for-sale securities | 140 | 388 |
Other, net | 2 | (4) |
Net cash used in investing activities | (763) | (113) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of common stock | 68 | 13 |
Issuance of long-term debt | 0 | 342 |
Repayment of long-term debt and capital lease obligations | (232) | (648) |
Acquisition of treasury stock | (164) | (82) |
Other, net | 0 | (12) |
Net cash used in financing activities | (328) | (387) |
INCREASE IN CASH AND CASH EQUIVALENTS | 203 | 224 |
Cash and cash equivalents at beginning of period | 341 | 225 |
Cash and cash equivalents at end of period | $ 544 | $ 449 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation JetBlue provides air transportation services across the United States, the Caribbean and Latin America. Our condensed consolidated financial statements include the accounts of JetBlue Airways Corporation, or JetBlue, and our subsidiaries which are collectively referred to as “we” or the “Company”. All majority-owned subsidiaries are consolidated on a line by line basis, with all intercompany transactions and balances having been eliminated. In June 2014, LiveTV, LLC, or LiveTV (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 condensed consolidated financial statements. These condensed consolidated financial statements and related notes should be read in conjunction with our 2014 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 , or our 2014 Form 10-K. These condensed consolidated financial statements are unaudited and have been prepared by us following the rules and regulations of the Securities and Exchange Commission, or the SEC. In our opinion they reflect all adjustments, including normal recurring items, that are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been condensed or omitted as permitted by such rules and regulations; however, we believe that the disclosures are adequate to make the information presented not misleading. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for other interim periods or the entire fiscal year. Investment securities Investment securities consist of available-for-sale investment securities and held-to-maturity investment securities. We use a specific identification method to determine the cost of the securities when they are sold. Held-to-maturity investment securities. The contractual maturities of the corporate bonds we held as of September 30, 2015 were not greater than 24 months. We did not record any significant gains or losses on these securities during the three and nine months ended September 30, 2015 or 2014 . The estimated fair value of these investments approximated their carrying value as of September 30, 2015 and December 31, 2014 , respectively. The carrying values of investment securities consisted of the following at September 30, 2015 and December 31, 2014 (in millions): September 30, 2015 December 31, 2014 Available-for-sale securities Time deposits $ 125 $ 125 Commercial paper 97 — 222 125 Held-to-maturity securities Time deposits $ — $ 48 Corporate bonds 413 254 413 302 Total $ 635 $ 427 New Accounting Pronouncements In August 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or 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 FASB Accounting Standards 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 permitted. The impact of this standard on our disclosures will be dependent on our financial condition at the time of adoption. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, topic of the FASB 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 allows for either full retrospective or modified retrospective adoption. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year to interim and annual reporting periods beginning after December 15, 2017 and permitted early adoption of the standard, but not prior to December 15, 2016. While we are still evaluating the full impact of adopting this standard on our condensed 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 TrueBlue points earned on JetBlue purchases and will require us to re-value our liability with a relative fair value approach. |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | SHARE-BASED COMPENSATION During the nine months ended September 30, 2015 , 1.9 million restricted stock units vested and 0.9 million restricted stock units were granted under our 2011 Incentive Compensation Plan. In addition, 4.5 million stock options were exercised under our 2002 Stock Incentive Plan during the nine months ended September 30, 2015 . We have not granted any stock options since 2008 and all previously granted stock options were fully expensed in 2012. At our Annual Shareholders Meeting held on May 21, 2015, our shareholders approved amendments to the 2011 Incentive Compensation Plan and the 2011 Crewmember Stock Purchase Plan increasing the number of shares of Company common stock that remain available for issuance under each plan by 7.5 million and 15.0 million , respectively. |
Long-term Debt and Short-term B
Long-term Debt and Short-term Borrowings (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations | LONG TERM DEBT, SHORT TERM BORROWINGS AND CAPITAL LEASE OBLIGATIONS During the nine months ended September 30, 2015 , we made scheduled principal payments of $148 million on our outstanding long-term debt and capital lease obligations. In June 2015, we prepaid $52 million of outstanding principal relating to seven Airbus A320 aircraft; as a result, one aircraft became unencumbered and six have lower principal balances. During June 2015, we also prepaid the full $32 million principal outstanding on a special facility revenue bond for JFK that was issued by the New York City Industrial Development Agency in December 2006. During the second quarter of 2015, holders voluntarily converted approximately $26 million in principal amount of the Series B 5.5% convertible debentures, and as a result, we issued 5.8 million shares of our common stock. In October 2015 , we exercised our right to redeem the remaining $ 42 million in principal amount of our Series B 5.5% convertible debentures. As a result, we anticipate any principal amounts of the Series B 5.5% convertible debentures remaining after any voluntarily conversion into shares of our common stock by holders will be redeemed during the fourth quarter of 2015 . Aircraft, engines, other equipment and facilities with a net book value of $3.09 billion at September 30, 2015 have been pledged as security under various loan agreements. As of September 30, 2015 , we owned, free of encumbrance, 35 Airbus A320 aircraft, 13 Airbus A321 aircraft and 34 spare engines. At September 30, 2015 , the weighted average interest rate of all of our long-term debt and capital lease obligations was 4.6% and scheduled maturities were $90 million for the remainder of 2015 , $455 million in 2016 , $196 million in 2017 , $207 million in 2018 , $224 million in 2019 and $810 million thereafter . The carrying amounts and estimated fair values of our long-term debt at September 30, 2015 and December 31, 2014 were as follows (in millions): September 30, 2015 December 31, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Public Debt Floating rate enhanced equipment notes: Class G-1, due 2016 $ 28 $ 28 $ 35 $ 35 Class G-2, due 2016 185 182 185 180 Fixed rate special facility bonds, due through 2036 43 45 77 78 6.75% convertible debentures due in 2039 86 456 86 283 5.5% convertible debentures due in 2038 42 243 68 241 Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 $ 201 $ 212 $ 217 $ 224 Floating rate equipment notes, due through 2025 246 249 276 277 Fixed rate equipment notes, due through 2026 993 1,089 1,119 1,211 Total* $ 1,824 $ 2,504 $ 2,063 $ 2,529 *Total excludes capital lease obligations of $158 million for September 30, 2015 and $170 million for December 31, 2014. The estimated fair values of our publicly held long-term debt are classified as Level 2 in the fair value hierarchy. The fair values of our enhanced equipment notes and our special facility bonds were based on quoted market prices in markets with low trading volumes. The fair value of our convertible debentures was based on 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 9 for an explanation of the fair value hierarchy structure. We have financed certain aircraft with Enhanced Equipment Trust Certificates (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 FASB Codification, and must be considered for consolidation in our condensed consolidated financial statements. Our assessment of our 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 because our involvement in them is limited to principal and interest payments on the related notes, the trusts were not set up to pass along variability created by credit risk to us and the likelihood of our defaulting on the notes. Therefore, we have not consolidated these trusts in our condensed consolidated financial statements. |
Comprehensive Income (Notes)
Comprehensive Income (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) includes changes in fair value of our aircraft fuel derivatives and interest rate swap agreements, which qualify for hedge accounting. A rollforward of the amounts included in the accumulated other comprehensive income (loss), net of taxes for the three months ended September 30, 2015 and September 30, 2014 are as follows (in millions): Aircraft Fuel Interest Rate Total Beginning accumulated losses at June 30, 2015 $ (24 ) $ — $ (24 ) Reclassifications into earnings (net of $10 of taxes) 17 — 17 Change in fair value (net of $(7) of taxes) (11 ) — (11 ) Ending accumulated losses at September 30, 2015 $ (18 ) $ — $ (18 ) Aircraft Fuel Interest Rate Total Beginning accumulated income at June 30, 2014 $ 4 $ — $ 4 Reclassifications into earnings (net of $0 of taxes) 1 — 1 Change in fair value (net of $(11) of taxes) (17 ) — (17 ) Ending accumulated losses at September 30, 2014 $ (12 ) $ — $ (12 ) __________________________ (1) Reclassified to aircraft fuel expense (2) Reclassified to interest expense A rollforward of the amounts included in the accumulated other comprehensive income (loss), net of taxes for the nine months ended September 30, 2015 and September 30, 2014 are as follows (in millions): Aircraft Fuel Interest Rate Total Beginning accumulated losses at December 31, 2014 $ (63 ) $ — $ (63 ) Reclassifications into earnings (net of $36 of taxes) 57 — 57 Change in fair value (net of $(8) of taxes) (12 ) — (12 ) Ending accumulated losses at September 30, 2015 $ (18 ) $ — $ (18 ) Aircraft Fuel Interest Rate Total Beginning accumulated income (losses) at December 31, 2013 $ 1 $ (1 ) $ — Reclassifications into earnings (net of $2 of taxes) 2 1 3 Change in fair value (net of $(10) of taxes) (15 ) — (15 ) Ending accumulated losses at September 30, 2014 $ (12 ) $ — $ (12 ) __________________________ (1) Reclassified to aircraft fuel expense (2) Reclassified to interest expense |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table shows how we computed basic and diluted earnings per common share (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income $ 198 $ 79 $ 487 $ 313 Effect of dilutive securities: Interest on convertible debt, net of income taxes and profit sharing 1 2 4 5 Net income applicable to common stockholders after assumed conversions for diluted earnings per share $ 199 $ 81 $ 491 $ 318 Denominator: Weighted average shares outstanding for basic earnings per share 313.8 290.5 313.6 292.9 Effect of dilutive securities: Employee stock options and restricted stock units 2.6 2.2 2.9 2.2 Convertible debt 27.1 48.4 29.3 48.4 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share 343.5 341.1 345.8 343.5 Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Shares excluded from EPS calculation (in millions): Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive — 4.6 — 8.6 During the three and nine months ended September 30, 2015 or 2014 there were no shares excluded from EPS upon assumed conversion of our convertible debt. As of September 30, 2015 , a total of approximately 1.4 million shares of our common stock, which were lent to our share borrower pursuant to the terms of our share lending agreement as described more fully in Note 2 to our 2014 Form 10-K, were issued and outstanding for corporate law purposes. Holders of the borrowed shares have all the rights of a holder of our common stock. However, because the share borrower must return all borrowed shares to us (or identical shares or, in certain circumstances of default by the counterparty, the cash value thereof), the borrowed shares are not considered outstanding for the purpose of computing and reporting basic or diluted earnings per share. The fair value of similar common shares not subject to our share lending arrangement based upon our closing stock price at September 30, 2015 , was approximately $36 million . As discussed in Note 3, during the second quarter of 2015, holders voluntarily converted approximately $26 million in principal amount of the Series B 5.5% convertible debentures, and as a result, we issued 5.8 million shares of our common stock. On June 16, 2015, JetBlue entered into an accelerated share repurchase, or ASR, agreement with Goldman, Sachs & Co. paying $150 million for an initial delivery of approximately 6.1 million shares. The term of the ASR concluded on September 15, 2015 with Goldman, Sachs & Co. delivering approximately 0.7 million additional shares to JetBlue on September 18, 2015. A total of 6.8 million shares, at an average price of $22.06 per share, were repurchased under the agreement. The total number of shares purchased by JetBlue was based on the volume weighted average prices of JetBlue's common stock during the term of the ASR agreement. In September 2015, JetBlue entered into an agreement for the repurchase of up to 778,460 shares per day with a maximum of 3 million shares in total, structured pursuant to Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934 as amended. The repurchases are planned to commence on October 30, 2015 and will terminate no later than December 31, 2015. We may adjust or change our share repurchase practices based on market conditions and other alternatives. Both the ASR and the Rules 10b5-1 and 10b-18 are part of our share repurchase program authorized by JetBlue's Board of Directors in 2012. Shares repurchased under any of our share repurchase programs are held as treasury stock. |
Employee Retirement Plan (Notes
Employee Retirement Plan (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Retirement Plan | EMPLOYEE RETIREMENT PLAN AND PROFIT SHARING We sponsor a retirement savings 401(k) defined contribution plan, or the Plan, covering all of our employees where we match employee contributions of up to 5% of eligible wages. Our non-management employees receive a discretionary contribution of 5% of eligible wages, which we refer to as Retirement Plus. They are also eligible to receive profit sharing, calculated as 15% of pre-tax income adjusted for profit sharing and special items with the result reduced by Retirement Plus contributions. Eligible non-management employees may elect to have their profit sharing contributed directly to the Plan. Certain Federal Aviation Administration, or FAA-licensed employees, receive an additional contribution of 3% of eligible compensation, which we refer to as Retirement Advantage. Total 401(k) company match, Retirement Plus, profit sharing, and Retirement Advantage expensed for the three months ended September 30, 2015 and 2014 was $72 million and $34 million , respectively, while the total amount expensed for the nine months ended September 30, 2015 and 2014 was $184 million and $81 million , respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES As of September 30, 2015 , our firm aircraft orders consisted of 25 Airbus A321 aircraft, 25 Airbus A320 new engine option (A320neo) aircraft, 45 Airbus A321neo aircraft, 24 EMBRAER 190 aircraft and 10 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 $220 million for the remainder of 2015 , $630 million in 2016 , $645 million in 2017 , $525 million in 2018 , $935 million in 2019 and $3.5 billion thereafter. We are scheduled to receive four new Airbus A321 aircraft during the remainder of 2015. As part of the sale of LiveTV, refer to Note 10, a $3 million liability relating to Airfone was assigned to JetBlue under 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. As of September 30, 2015 , we have approximately $34 million in assets serving as collateral for letters of credit relating to a certain number of our leases. These are included in restricted cash and expire at the end of the related lease terms. Additionally, we had approximately $26 million pledged related to our workers compensation insurance policies and other business partner agreements which will expire according to the terms of the related policies or agreements. Environmental Liability In 2012, during performance of required environmental testing, the presence of light non-aqueous phase petroleum liquid was discovered in certain subsurface monitoring wells on the property at John F. Kennedy International Airport (JFK). Our lease with the Port Authority of New York and New Jersey, or PANYNJ, provides that under certain circumstances we may be responsible for investigating, delineating, and remediating such subsurface contamination, even if we are not necessarily the party that caused its release. We engaged environmental consultants to assess the extent of the contamination and to assist us in determining steps to remediate it. Estimated costs of remediation could range from approximately $1 million up to $3 million . As of September 30, 2015 , we have accrued $1 million for current estimates of remediation costs, which is included in current liabilities on our condensed consolidated balance sheets. However, as with any environmental contamination, there is the possibility this contamination could be more extensive than presently estimated at this stage. We have a pollution insurance policy that protects us against these types of environmental liabilities, which we expect will mitigate some of our exposure in this matter. Based upon information currently known to us, we do not expect this environmental proceeding to have a material adverse effect on our condensed consolidated balance sheets, results of operations, or cash flows. However, it is not possible to predict with certainty the impact of future environmental compliance requirements or the costs of resolving this 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 and regulatory matters is always uncertain. The Company believes it has valid defenses to the legal or regulatory 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 and regulatory proceedings to which we are a party and record a loss contingency when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. These subjective determinations are based on the status of such legal or regulatory proceedings, the merits of our defenses and consultation with legal counsel. Actual outcomes of these legal and regulatory proceedings may materially differ from our current estimates. While it is possible that resolution of one or more of the 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, or the Claimants, filed a Request for Mediation with the American Arbitration Association, or the AAA, concerning a dispute over the interpretation of a provision of their individual JetBlue Airways Corporation Employment Agreement for Pilots, or the 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 confirmed the arbitrator's Final Award and denied the Claimants' motion to vacate the award. The Claimants have appealed. 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. 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 expect the result of the election to have a material impact on our financial condition. |
Financial Derivative Instrument
Financial Derivative Instruments and Risk Management (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivative Instruments and Risk Management | FINANCIAL DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT As part of our risk management techniques, we periodically purchase over the counter energy derivative instruments and enter into fixed forward price agreements, or FFPs, to manage our exposure to the effect of changes in the price of aircraft fuel. Prices for the underlying commodities have historically been highly correlated to aircraft fuel, making derivatives of them effective at providing short-term protection against sharp increases in average fuel prices. We also periodically enter into jet fuel basis swaps for the differential between heating oil and jet fuel, to further limit the variability in fuel prices at various locations. To manage the variability of the cash flows associated with our variable rate debt, we have also entered into interest rate swaps. We do not hold or issue any derivative financial instruments for trading purposes. Aircraft fuel derivatives We attempt to obtain cash flow hedge accounting treatment for each aircraft fuel derivative that we enter into. This treatment is provided for under the Derivatives and Hedging topic of the Codification which allows for gains and losses on the effective portion of qualifying hedges to be deferred until the underlying planned jet fuel consumption occurs, rather than recognizing the gains and losses on these instruments into earnings during each period they are outstanding. The effective portion of realized aircraft fuel hedging derivative gains and losses is recognized in aircraft fuel expense in the period during which the underlying fuel is consumed. Ineffectiveness occurs, 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. Ineffectiveness is recognized immediately in interest income and other. If a hedge does not qualify for hedge accounting, the periodic changes in its fair value are also recognized 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 September 30, 2015 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 Fourth Quarter 2015 5 % — % 10 % 15 % Interest rate swaps The interest rate hedges we had outstanding as of September 30, 2015 effectively swap floating rate debt for fixed rate debt. They take 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 September 30, 2015 , we had $28 million in notional debt outstanding related to these swaps, which cover certain interest payments through August 2016. The notional amount decreases over time to match scheduled repayments of the related debt. All of our outstanding interest rate swap contracts qualify as cash flow hedges in accordance with the Derivatives and Hedging topic of the Codification. Since all of the critical terms of our swap agreements match the debt to which they pertain, there was no ineffectiveness relating to these interest rate swaps in 2015 or 2014 . All related unrealized losses were deferred in accumulated other comprehensive loss. We recognized less than a million and approximately $1 million in additional interest expense in the nine months ended September 30, 2015 and 2014 , 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): September 30, December 31, Fuel derivatives Longest remaining term (months) 3 12 Hedged volume (barrels, in thousands) 603 2,808 Liability fair value recorded in other accrued liabilities (1) $ 29 $ 102 Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months 29 102 Interest rate derivatives Liability fair value recorded in other long term liabilities (2) $ 1 $ 1 Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months 1 1 Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Fuel derivatives Hedge effectiveness losses recognized in aircraft fuel expense $ 27 $ 1 $ 93 $ 4 Gains (losses) on derivatives not qualifying for hedge accounting recognized in other expense — — 1 (1 ) Hedge ineffectiveness losses recognized in other expense — 1 — — Hedge losses on derivatives recognized in comprehensive income 18 28 20 25 Percentage of actual consumption economically hedged 14 % 23 % 18 % 18 % Interest rate derivatives Hedge losses on derivatives recognized in interest expense $ — $ — $ — $ 1 Hedge gains on derivatives recognized in comprehensive income — — — — ____________________________ (1) Gross liability of each contract prior to consideration of offsetting positions with each counterparty and prior to the 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 our agreements, but we do not expect that any of our counterparties will fail to meet their obligations. The amount of such credit exposure is generally the fair value of our outstanding contracts for which we are in a receivable position. To manage credit risks we select counterparties based on credit assessments, limit our overall exposure to any single counterparty and monitor the market position with each counterparty. Some of our agreements require cash deposits from either JetBlue or our counterparty if market risk exposure exceeds a specified threshold amount. We have master netting arrangements with our counterparties allowing us the right of offset to mitigate credit risk in derivative transactions. The financial derivative instrument agreements we have with our counterparties may require us to fund all, or a portion of, outstanding loss positions related to these contracts prior to their scheduled maturities. The amount of collateral posted, if any, is periodically adjusted based on the fair value of the hedge contracts. Our policy is to offset the liabilities represented by these contracts with any cash collateral paid to the counterparties. The impact of offsetting derivative instruments is depicted below (in millions): Gross Amount of Recognized Gross Amount of Cash Collateral Net Amount Presented Assets Liabilities Offset Assets Liabilities As of September 30, 2015 Fuel derivatives $ — $ 29 $ 8 $ — $ 21 Interest rate derivatives — 1 1 — — As of December 31, 2014 Fuel derivatives $ — $ 102 $ 51 $ — $ 51 Interest rate derivatives — 1 1 — — |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Under the Fair Value Measurements and Disclosures topic of the Codification, disclosures are required about how fair value is determined for assets and liabilities and a hierarchy for which these assets and liabilities must be grouped is established, based on significant levels of inputs as follows: Level 1 quoted prices in active markets for identical assets or liabilities; Level 2 quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or Level 3 unobservable inputs for the asset or liability, such as discounted cash flow models or valuations. The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy as of September 30, 2015 and December 31, 2014 (in millions): September 30, 2015 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 371 $ — $ — $ 371 Available-for-sale investment securities — 222 — 222 $ 371 $ 222 $ — $ 593 Liabilities Aircraft fuel derivatives $ — $ 29 $ — $ 29 Interest rate swaps — 1 — 1 $ — $ 30 $ — $ 30 December 31, 2014 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 153 $ — $ — $ 153 Available-for-sale investment securities — 125 — 125 $ 153 $ 125 $ — $ 278 Liabilities Aircraft fuel derivatives $ — $ 102 $ — $ 102 Interest rate swaps — 1 — 1 $ — $ 103 $ — $ 103 Refer to Note 3 for fair value information related to our outstanding debt obligations as of September 30, 2015 and December 31, 2014 . Cash equivalents Our cash equivalents include money market securities and commercial paper which are readily convertible into cash, have maturities of 90 days or less when purchased and 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 and commercial paper with maturities greater than 90 days but less than one year. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. We did not record any significant gains or losses on these securities during the three and nine months ended September 30, 2015 and 2014 . Aircraft fuel derivatives Our aircraft fuel derivatives include swaps, collars, and basis swaps which are not traded on public exchanges. Heating oil and jet fuel are the products underlying these hedge contracts as they are highly correlated with the price of jet fuel. 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. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. |
LiveTV (Notes)
LiveTV (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Live TV Disclosures [Abstract] | |
LiveTV | LIVETV LiveTV, LLC, formerly a wholly owned subsidiary of JetBlue, provides inflight entertainment and connectivity solutions for various commercial airlines, including JetBlue. On June 10, 2014, JetBlue sold LiveTV to Thales Holding Corporation for $393 million , 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 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 . LiveTV operations are no longer being consolidated as a subsidiary in JetBlue's condensed consolidated financial statements. The effect of this change in reporting structure is not material to the financial statements presented. |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS During October 2015 , we entered an agreement to buy out six of our aircraft leases for approximately $110 million . We anticipate completing the transaction during the fourth quarter of 2015 . In October 2015, we announced a co-branded credit card partnership with a new financial institution, which will replace our existing contract with another financial institution that we anticipate expiring at the end of the first quarter of 2016. The agreement will be a multiple-element arrangement subject to ASU 2009-13, Multiple Deliverable Revenue Arrangements ; ASU 2009-13 is effective for new and materially modified revenue arrangements entered into in fiscal years beginning on or after June 15, 2010. We do not apply the provisions of ASU 2009-13 to our existing co-branded credit card agreement, as the agreement was signed before and not materially modified after the effective date. We are still evaluating the full impact of applying this standard to our new agreement on our condensed consolidated financial statements and disclosures. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Derivatives, Policy [Policy Text Block] | Aircraft fuel derivatives Our aircraft fuel derivatives include swaps, collars, and basis swaps which are not traded on public exchanges. Heating oil and jet fuel are the products underlying these hedge contracts as they are highly correlated with the price of jet fuel. 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. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash equivalents Our cash equivalents include money market securities and commercial paper which are readily convertible into cash, have maturities of 90 days or less when purchased and 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. |
Basis of presentation | Basis of Presentation JetBlue provides air transportation services across the United States, the Caribbean and Latin America. Our condensed consolidated financial statements include the accounts of JetBlue Airways Corporation, or JetBlue, and our subsidiaries which are collectively referred to as “we” or the “Company”. All majority-owned subsidiaries are consolidated on a line by line basis, with all intercompany transactions and balances having been eliminated. In June 2014, LiveTV, LLC, or LiveTV (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 condensed consolidated financial statements. These condensed consolidated financial statements and related notes should be read in conjunction with our 2014 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 , or our 2014 Form 10-K. These condensed consolidated financial statements are unaudited and have been prepared by us following the rules and regulations of the Securities and Exchange Commission, or the SEC. In our opinion they reflect all adjustments, including normal recurring items, that are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been condensed or omitted as permitted by such rules and regulations; however, we believe that the disclosures are adequate to make the information presented not misleading. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for other interim periods or the entire fiscal year. |
Investment securities | Investment securities Investment securities consist of available-for-sale investment securities and held-to-maturity investment securities. We use a specific identification method to determine the cost of the securities when they are sold. |
Held-to-maturity investment securities | Held-to-maturity investment securities. The contractual maturities of the corporate bonds we held as of September 30, 2015 were not greater than 24 months. We did not record any significant gains or losses on these securities during the three and nine months ended September 30, 2015 or 2014 . The estimated fair value of these investments approximated their carrying value as of September 30, 2015 and December 31, 2014 , respectively. |
New Accounting Pronouncements [Policy Text Block] | New Accounting Pronouncements In August 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or 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 FASB Accounting Standards 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 permitted. The impact of this standard on our disclosures will be dependent on our financial condition at the time of adoption. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, topic of the FASB 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 allows for either full retrospective or modified retrospective adoption. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year to interim and annual reporting periods beginning after December 15, 2017 and permitted early adoption of the standard, but not prior to December 15, 2016. While we are still evaluating the full impact of adopting this standard on our condensed 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 TrueBlue points earned on JetBlue purchases and will require us to re-value our liability with a relative fair value approach. |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Available-for-sale investment securities Included in our available-for-sale investment securities are time deposits and commercial paper with maturities greater than 90 days but less than one year. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. We did not record any significant gains or losses on these securities during the three and nine months ended September 30, 2015 and 2014 . |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of marketable securities | The carrying values of investment securities consisted of the following at September 30, 2015 and December 31, 2014 (in millions): September 30, 2015 December 31, 2014 Available-for-sale securities Time deposits $ 125 $ 125 Commercial paper 97 — 222 125 Held-to-maturity securities Time deposits $ — $ 48 Corporate bonds 413 254 413 302 Total $ 635 $ 427 |
Long-term Debt and Short-term21
Long-term Debt and Short-term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | The carrying amounts and estimated fair values of our long-term debt at September 30, 2015 and December 31, 2014 were as follows (in millions): September 30, 2015 December 31, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Public Debt Floating rate enhanced equipment notes: Class G-1, due 2016 $ 28 $ 28 $ 35 $ 35 Class G-2, due 2016 185 182 185 180 Fixed rate special facility bonds, due through 2036 43 45 77 78 6.75% convertible debentures due in 2039 86 456 86 283 5.5% convertible debentures due in 2038 42 243 68 241 Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 $ 201 $ 212 $ 217 $ 224 Floating rate equipment notes, due through 2025 246 249 276 277 Fixed rate equipment notes, due through 2026 993 1,089 1,119 1,211 Total* $ 1,824 $ 2,504 $ 2,063 $ 2,529 *Total excludes capital lease obligations of $158 million for September 30, 2015 and $170 million for December 31, 2014. |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | A rollforward of the amounts included in the accumulated other comprehensive income (loss), net of taxes for the three months ended September 30, 2015 and September 30, 2014 are as follows (in millions): Aircraft Fuel Interest Rate Total Beginning accumulated losses at June 30, 2015 $ (24 ) $ — $ (24 ) Reclassifications into earnings (net of $10 of taxes) 17 — 17 Change in fair value (net of $(7) of taxes) (11 ) — (11 ) Ending accumulated losses at September 30, 2015 $ (18 ) $ — $ (18 ) Aircraft Fuel Interest Rate Total Beginning accumulated income at June 30, 2014 $ 4 $ — $ 4 Reclassifications into earnings (net of $0 of taxes) 1 — 1 Change in fair value (net of $(11) of taxes) (17 ) — (17 ) Ending accumulated losses at September 30, 2014 $ (12 ) $ — $ (12 ) __________________________ (1) Reclassified to aircraft fuel expense (2) Reclassified to interest expense A rollforward of the amounts included in the accumulated other comprehensive income (loss), net of taxes for the nine months ended September 30, 2015 and September 30, 2014 are as follows (in millions): Aircraft Fuel Interest Rate Total Beginning accumulated losses at December 31, 2014 $ (63 ) $ — $ (63 ) Reclassifications into earnings (net of $36 of taxes) 57 — 57 Change in fair value (net of $(8) of taxes) (12 ) — (12 ) Ending accumulated losses at September 30, 2015 $ (18 ) $ — $ (18 ) Aircraft Fuel Interest Rate Total Beginning accumulated income (losses) at December 31, 2013 $ 1 $ (1 ) $ — Reclassifications into earnings (net of $2 of taxes) 2 1 3 Change in fair value (net of $(10) of taxes) (15 ) — (15 ) Ending accumulated losses at September 30, 2014 $ (12 ) $ — $ (12 ) __________________________ (1) Reclassified to aircraft fuel expense (2) Reclassified to interest expense |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows how we computed basic and diluted earnings per common share (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income $ 198 $ 79 $ 487 $ 313 Effect of dilutive securities: Interest on convertible debt, net of income taxes and profit sharing 1 2 4 5 Net income applicable to common stockholders after assumed conversions for diluted earnings per share $ 199 $ 81 $ 491 $ 318 Denominator: Weighted average shares outstanding for basic earnings per share 313.8 290.5 313.6 292.9 Effect of dilutive securities: Employee stock options and restricted stock units 2.6 2.2 2.9 2.2 Convertible debt 27.1 48.4 29.3 48.4 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share 343.5 341.1 345.8 343.5 Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Shares excluded from EPS calculation (in millions): Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive — 4.6 — 8.6 |
Financial Derivative Instrume24
Financial Derivative Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 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 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): September 30, December 31, Fuel derivatives Longest remaining term (months) 3 12 Hedged volume (barrels, in thousands) 603 2,808 Liability fair value recorded in other accrued liabilities (1) $ 29 $ 102 Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months 29 102 Interest rate derivatives Liability fair value recorded in other long term liabilities (2) $ 1 $ 1 Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months 1 1 Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Fuel derivatives Hedge effectiveness losses recognized in aircraft fuel expense $ 27 $ 1 $ 93 $ 4 Gains (losses) on derivatives not qualifying for hedge accounting recognized in other expense — — 1 (1 ) Hedge ineffectiveness losses recognized in other expense — 1 — — Hedge losses on derivatives recognized in comprehensive income 18 28 20 25 Percentage of actual consumption economically hedged 14 % 23 % 18 % 18 % Interest rate derivatives Hedge losses on derivatives recognized in interest expense $ — $ — $ — $ 1 Hedge gains on derivatives recognized in comprehensive income — — — — ____________________________ (1) Gross liability of each contract prior to consideration of offsetting positions with each counterparty and prior to the 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 (in millions): Gross Amount of Recognized Gross Amount of Cash Collateral Net Amount Presented Assets Liabilities Offset Assets Liabilities As of September 30, 2015 Fuel derivatives $ — $ 29 $ 8 $ — $ 21 Interest rate derivatives — 1 1 — — As of December 31, 2014 Fuel derivatives $ — $ 102 $ 51 $ — $ 51 Interest rate derivatives — 1 1 — — |
Fair Value of Financial Instr25
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value, by balance sheet grouping | The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy as of September 30, 2015 and December 31, 2014 (in millions): September 30, 2015 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 371 $ — $ — $ 371 Available-for-sale investment securities — 222 — 222 $ 371 $ 222 $ — $ 593 Liabilities Aircraft fuel derivatives $ — $ 29 $ — $ 29 Interest rate swaps — 1 — 1 $ — $ 30 $ — $ 30 December 31, 2014 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 153 $ — $ — $ 153 Available-for-sale investment securities — 125 — 125 $ 153 $ 125 $ — $ 278 Liabilities Aircraft fuel derivatives $ — $ 102 $ — $ 102 Interest rate swaps — 1 — 1 $ — $ 103 $ — $ 103 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale securities | ||
Available-for-sale investment securities | $ 222 | $ 125 |
Held-to-maturity securities | ||
Held-to-maturity securities | 413 | 302 |
Marketable securities | 635 | 427 |
Bank Time Deposits [Member] | ||
Available-for-sale securities | ||
Available-for-sale investment securities | 125 | 125 |
Held-to-maturity securities | ||
Held-to-maturity securities | 0 | 48 |
Commercial paper [Member] | ||
Available-for-sale securities | ||
Available-for-sale investment securities | 97 | 0 |
Corporate bonds [Member] | ||
Held-to-maturity securities | ||
Held-to-maturity securities | $ 413 | $ 254 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies Held-to-Maturity Gains (Loss) (Details) | 3 Months Ended |
Sep. 30, 2015USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Held-to-maturity Securities, Gross Gains (Losses), Derivatives | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - shares shares in Millions | 1 Months Ended | 9 Months Ended |
Jun. 30, 2015 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period | 1.9 | |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 0.9 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4.5 | |
Incentive Compensation Plan 2011 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 7.5 | |
Crewmember Stock Purchase Plan 2011 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 15 |
Long-term Debt and Short-term29
Long-term Debt and Short-term Borrowings (Details) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2015USD ($)aircraft | Jun. 30, 2015USD ($)aircraftshares | Sep. 30, 2015USD ($)aircraft | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Capital Lease Obligations | $ 158 | $ 170 | ||
Reduction in outstanding debt and capital lease obligations | 148 | |||
Value of aircraft, engines and other equipment and facilities which were pledged as security under various loan agreements | $ 3,090 | |||
Unencumbered spare engine | aircraft | 34 | |||
Weighted average interest rate of long-term debt | 4.60% | |||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 90 | |||
Long-term debt, maturities, repayments of principal in Year Two | 455 | |||
Long-term debt, maturities, repayments of principal in Year Three | 196 | |||
Long-term debt, maturities, repayments of principal in Year Four | 207 | |||
Long-term debt, maturities, repayments of principal in Year Five | 224 | |||
Long-term debt, maturities, repayments of principal after Year Five | 810 | |||
Carrying amounts and estimated fair values of long-term debt | ||||
Carrying Value, Total | 1,824 | 2,063 | ||
Estimated Fair Value, Total | 2,504 | 2,529 | ||
Public Debt Floating Rate Class G One Due Two Thousand Sixteen [Member] | ||||
Carrying amounts and estimated fair values of long-term debt | ||||
Carrying Value, Total | 28 | 35 | ||
Estimated Fair Value, Total | 28 | 35 | ||
Public Debt Floating Rate Class G Two Due Two Thousand Sixteen [Member] | ||||
Carrying amounts and estimated fair values of long-term debt | ||||
Carrying Value, Total | 185 | 185 | ||
Estimated Fair Value, Total | 182 | 180 | ||
Public Debt Fixed Rate Special Facility Bonds Due Through Two Thousand Thirty Six [Member] | ||||
Carrying amounts and estimated fair values of long-term debt | ||||
Carrying Value, Total | 43 | 77 | ||
Estimated Fair Value, Total | 45 | 78 | ||
Public Debt Six Point Seven Five Percentage Convertible Debentures Due In Two Thousand Thirty Nine [Member] | ||||
Carrying amounts and estimated fair values of long-term debt | ||||
Carrying Value, Total | 86 | 86 | ||
Estimated Fair Value, Total | 456 | 283 | ||
Public Debt Five Point Five Percentage Convertible Debentures Due In Two Thousand Thirty Eight [Member] | ||||
Debt Instrument [Line Items] | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 26 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 5.8 | |||
Carrying amounts and estimated fair values of long-term debt | ||||
Carrying Value, Total | 42 | 68 | ||
Estimated Fair Value, Total | 243 | 241 | ||
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, Total | 201 | 217 | ||
Estimated Fair Value, Total | 212 | 224 | ||
Non Public Debt Floating Rate Equipment Notes Due Through Two Thousand And Twenty Five [Member] | ||||
Carrying amounts and estimated fair values of long-term debt | ||||
Carrying Value, Total | 246 | 276 | ||
Estimated Fair Value, Total | 249 | 277 | ||
Non Public Debt Fixed Rate Equipment Notes Due Through Two Thousand Twenty Six [Member] | ||||
Carrying amounts and estimated fair values of long-term debt | ||||
Carrying Value, Total | 993 | 1,119 | ||
Estimated Fair Value, Total | $ 1,089 | $ 1,211 | ||
A-320-200 [Member] | ||||
Debt Instrument [Line Items] | ||||
unencumbered aircraft | aircraft | 35 | |||
A-321 [Member] | ||||
Debt Instrument [Line Items] | ||||
unencumbered aircraft | aircraft | 13 | |||
Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Extinguishment of Debt, Amount | $ 52 | |||
Secured Debt [Member] | A-320-200 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aircraft Pledged as Collateral | aircraft | 7 | 7 | ||
unencumbered aircraft | aircraft | 1 | 1 | ||
Aircraft with Reduced Outstanding Principal | aircraft | 6 | 6 | ||
Municipal Bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Extinguishment of Debt, Amount | $ 32 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning accumulated gains (losses) | $ (24) | $ 4 | $ (63) | $ 0 |
Reclassifications into earnings | 17 | 1 | 57 | 3 |
Change in fair value | (11) | (17) | (12) | (15) |
Ending accumulated losses | (18) | (12) | (18) | (12) |
Fuel Derivatives [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning accumulated gains (losses) | (24) | 4 | (63) | 1 |
Reclassifications into earnings | 17 | 1 | 57 | 2 |
Change in fair value | (11) | (17) | (12) | (15) |
Ending accumulated losses | (18) | (12) | (18) | (12) |
Interest Rate Contract [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning accumulated gains (losses) | 0 | 0 | 0 | (1) |
Reclassifications into earnings | 0 | 0 | 0 | 1 |
Change in fair value | 0 | 0 | 0 | 0 |
Ending accumulated losses | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (18) | $ (12) | $ (18) | $ (12) | $ (24) | $ (63) | $ 4 | $ 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 17 | 1 | 57 | 3 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (11) | $ (17) | $ (12) | $ (15) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 18, 2015 | Sep. 15, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 16, 2015 | |
Numerator: | |||||||||||
Net Income | $ 198 | $ 79 | $ 487 | $ 313 | |||||||
Effect of dilutive securities: | |||||||||||
Interest on convertible debt, net of income taxes and profit sharing | 1 | 2 | 4 | 5 | |||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ 199 | $ 81 | $ 491 | $ 318 | |||||||
Denominator: | |||||||||||
Weighted average shares outstanding for basic earnings per share | 313,800,000 | 290,500,000 | 313,600,000 | 292,900,000 | |||||||
Effect of dilutive securities: | |||||||||||
Employee stock options and restricted stock units | 2,600,000 | 2,200,000 | 2,900,000 | 2,200,000 | |||||||
Convertible debt | 27,100,000 | 48,400,000 | 29,300,000 | 48,400,000 | |||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 343,500,000 | 341,100,000 | 345,800,000 | 343,500,000 | |||||||
Shares excluded from EPS calculation (in millions): | |||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 150 | ||||||||||
Treasury Stock, Shares, Acquired | 6,100,000 | 700,000 | 6,800,000 | ||||||||
Payments for Repurchase of Common Stock | $ 22.06 | ||||||||||
Earnings Per Share (Textuals) [Abstract] | |||||||||||
Common stock lent to share borrower | 1,400,000 | 1,400,000 | |||||||||
Share lending arrangement, shares, outstanding, value | $ 36 | $ 36 | |||||||||
Public Debt Five Point Five Percentage Convertible Debentures Due In Two Thousand Thirty Eight [Member] | |||||||||||
Shares excluded from EPS calculation (in millions): | |||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 26 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | |||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 5,800,000 | ||||||||||
Stock Compensation Plan [Member] | |||||||||||
Shares excluded from EPS calculation (in millions): | |||||||||||
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | 0 | 4,600,000 | 0 | 8,600,000 | |||||||
Scenario, Forecast [Member] | |||||||||||
Shares excluded from EPS calculation (in millions): | |||||||||||
Treasury Stock, Shares, Acquired | 3,000,000 | 778,460 |
Employee Retirement Plan (Detai
Employee Retirement Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Retirement Plan (Textuals) [Abstract] | ||||
Percentage of employees' gross pay for which the employer contributes a matching contribution to the Plan. | 5.00% | |||
Percentage of employees' gross pay for which the employer can contribute a discretionary profit sharing contribution to the Plan. | 5.00% | |||
Percentage of Its Eligible Pre Tax Profits for which the employer contributes to the Plan. | 15.00% | |||
Percentage of FAA licensed employees gross pay for which ER can contribute discretionary profit sharing contribution to plan | 3.00% | |||
Contribution to employee retirement plan | $ 72 | $ 34 | $ 184 | $ 81 |
Commitments and Contingencies34
Commitments and Contingencies (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2015USD ($)engineaircraft | Jun. 10, 2014USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Committed expenditure due within current year | $ 220 | |
Committed expenditure due within second year | 630 | |
Committed expenditure due within third year | 645 | |
Committed expenditure due within four years | 525 | |
Committed expenditure due within five years | 935 | |
Committed expenditure due after five years | 3,500 | |
Loss Contingency Accrual | $ 3 | |
Restricted assets pledged under letter of credit | 34 | |
Restricted assets pledged related to workers compensation insurance policies and other business partner agreements | $ 26 | |
A-321 [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded unconditional purchase obligations disclosure | aircraft | 25 | |
Number of aircraft scheduled to receive | aircraft | 4 | |
Airbus A320 Neo [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded unconditional purchase obligations disclosure | aircraft | 25 | |
Airbus A321 Neo [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded unconditional purchase obligations disclosure | aircraft | 45 | |
EMBRAER 190 Aircraft [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded unconditional purchase obligations disclosure | aircraft | 24 | |
Spare Engines [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded unconditional purchase obligations disclosure | engine | 10 | |
In Flight Entertainment Systems Member | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded Unconditional Purchase Obligations, Term | 7 years |
Commitments and Contingencies
Commitments and Contingencies - Loss Contingencies (Details) $ in Millions | 1 Months Ended | 5 Months Ended | 37 Months Ended | ||
Jul. 31, 2014USD ($)pilot | May. 31, 2013 | Jun. 10, 2014USD ($) | Jun. 30, 2015pilot | Sep. 30, 2015USD ($) | |
Loss Contingencies [Line Items] | |||||
Loss Contingency Accrual | $ 3 | ||||
Environmental exit costs, costs accrued to date | $ 1 | ||||
Number of claimants in employment agreement dispute | pilot | 972 | ||||
Base pay rate trigger in employment agreement dispute | 26.70% | ||||
Loss Contingency, Claims Settled, Number | pilot | 318 | ||||
Environmental Issue [Member] | |||||
Loss Contingencies [Line Items] | |||||
Cost of remediation estimate (less than $1 million, minimum) | 1 | ||||
Cost of remediation estimate ($3 million, maximum) | $ 3 | ||||
Pilot Employment Dispout [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages sought, value | $ 4.4 | ||||
Connectivity Service [Member] | |||||
Loss Contingencies [Line Items] | |||||
Long-term Purchase Commitment, Amount | 20 | ||||
Hardware and Software Purchases [Member] | |||||
Loss Contingencies [Line Items] | |||||
Long-term Purchase Commitment, Amount | $ 25 |
Financial Derivative Instrume36
Financial Derivative Instruments and Risk Management (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | |
Derivative [Line Items] | |||||
Interest expense | $ (32) | $ (37) | $ (98) | $ (113) | |
Other income (expense) [Member] | |||||
Derivative [Line Items] | |||||
Hedge losses recognized | 0 | 1 | 0 | 0 | |
Interest Rate Contract [Member] | Interest Expense [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) on Price Risk Derivatives, Net | 0 | $ 0 | 0 | $ (1) | |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of interest rate cash flow hedge derivatives | $ 28 | $ 28 | |||
Scenario, Forecast [Member] | |||||
Derivative [Line Items] | |||||
Percentage fuel hedged | 15.00% | ||||
Fuel [Member] | Scenario, Forecast [Member] | Jet Fuel Swap Agreements [Member] | |||||
Derivative [Line Items] | |||||
Percentage fuel hedged | 5.00% | ||||
Fuel [Member] | Scenario, Forecast [Member] | Jet Fuel Collar Agreement [Member] | |||||
Derivative [Line Items] | |||||
Percentage fuel hedged | 0.00% | ||||
Heating Oil [Member] | Scenario, Forecast [Member] | Heating Oil Collar Agreement [Member] | |||||
Derivative [Line Items] | |||||
Percentage fuel hedged | 10.00% |
Financial Derivative Instrume37
Financial Derivative Instruments and Risk Management (Details 2) bbl in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($)bbl | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)bbl | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)bbl | ||
Derivatives, Fair Value [Line Items] | ||||||
Interest Expense | $ 32 | $ 37 | $ 98 | $ 113 | ||
Fuel derivatives [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Longest remaining term (months) | 3 months | 12 months | ||||
Hedged volume (barrels, in thousands) | bbl | 603 | 603 | 2,808 | |||
Liability fair value recorded in other accriued liabilities | $ 29 | $ 29 | $ 102 | |||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | 29 | 29 | 102 | |||
Interest rate derivatives [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Liability fair value recorded in other long term liabilities | [1] | 1 | 1 | 1 | ||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | 1 | 1 | 1 | |||
Other accrued liabilities [Member] | Fuel derivatives [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Liability fair value recorded in other accriued liabilities | [2] | $ 29 | $ 29 | $ 102 | ||
[1] | Gross liability, prior to impact of collateral posted | |||||
[2] | Gross liability of each contract prior to consideration of offsetting positions with each counterparty |
Financial Derivative Instrume38
Financial Derivative Instruments and Risk Management - Hedging Effectiveness (Details 3) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other income (expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedge losses recognized | $ 0 | $ 1,000,000 | $ 0 | $ 0 |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 0 | $ 0 | 1,000,000 | $ (1,000,000) |
Other income (expense) [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Price Risk Derivatives, Net | $ 0 | |||
Fuel derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Percentage of actual consumption economically hedged | 14.00% | 23.00% | 18.00% | 18.00% |
Fuel derivatives [Member] | Aircraft Fuel Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedge losses recognized | $ 27,000,000 | $ 1,000,000 | $ 93,000,000 | $ 4,000,000 |
Fuel derivatives [Member] | Comprehensive Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedge losses on derivatives recognized in comprehensive income | 18,000,000 | 28,000,000 | 20,000,000 | 25,000,000 |
Interest Rate Contract [Member] | Comprehensive Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedge losses on derivatives recognized in comprehensive income | 0 | 0 | 0 | 0 |
Interest Rate Contract [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Price Risk Derivatives, Net | $ 0 | $ 0 | $ 0 | $ 1,000,000 |
Financial Derivative Instrume39
Financial Derivative Instruments and Risk Management (Details 4) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Fuel Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Assets, gross amount of recognized, fuel derivatives | $ 0 | $ 0 | |
Liabilities, gross amount of recognized, fuel derivatives | 29 | 102 | |
Offset, Gross Amount of Cash Collateral | 8 | 51 | |
Assets, net amount presented in balance sheet | 0 | 0 | |
Liabilities, net amount presented in balance sheet | 21 | 51 | |
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] | 1 | 1 |
Offset, Gross Amount of Cash Collateral | 1 | 1 | |
Assets, net amount presented in balance sheet | 0 | 0 | |
Liabilities, net amount presented in balance sheet | $ 0 | $ 0 | |
[1] | Gross liability, prior to impact of collateral posted |
Fair Value of Financial Instr40
Fair Value of Financial Instruments (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $ 0 | $ 0 | |
Assets | |||
Available-for-sale investment securities | 222,000,000 | $ 125,000,000 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Cash equivalents | 371,000,000 | 153,000,000 | |
Available-for-sale investment securities | 222,000,000 | 125,000,000 | |
Assets, Total | 593,000,000 | 278,000,000 | |
Liabilities | |||
Liabilities, Total | 30,000,000 | 103,000,000 | |
Fair Value, Measurements, Recurring [Member] | Aircraft Fuel Derivatives [Member] | |||
Liabilities | |||
Derivative Liabilities | 29,000,000 | 102,000,000 | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | |||
Liabilities | |||
Derivative Liabilities | 1,000,000 | 1,000,000 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets | |||
Cash equivalents | 371,000,000 | 153,000,000 | |
Available-for-sale investment securities | 0 | 0 | |
Assets, Total | 371,000,000 | 153,000,000 | |
Liabilities | |||
Liabilities, Total | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Aircraft Fuel Derivatives [Member] | |||
Liabilities | |||
Derivative Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Interest Rate Swap [Member] | |||
Liabilities | |||
Derivative Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets | |||
Cash equivalents | 0 | 0 | |
Available-for-sale investment securities | 222,000,000 | 125,000,000 | |
Assets, Total | 222,000,000 | 125,000,000 | |
Liabilities | |||
Liabilities, Total | 30,000,000 | 103,000,000 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Aircraft Fuel Derivatives [Member] | |||
Liabilities | |||
Derivative Liabilities | 29,000,000 | 102,000,000 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | |||
Liabilities | |||
Derivative Liabilities | 1,000,000 | 1,000,000 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets | |||
Cash equivalents | 0 | 0 | |
Available-for-sale investment securities | 0 | 0 | |
Assets, Total | 0 | 0 | |
Liabilities | |||
Liabilities, Total | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Aircraft Fuel Derivatives [Member] | |||
Liabilities | |||
Derivative Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Interest Rate Swap [Member] | |||
Liabilities | |||
Derivative Liabilities | $ 0 | $ 0 |
LiveTV (Details)
LiveTV (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Proceeds from sale of subsidiary | $ 0 | $ 393 | $ 393 | ||
Gain on sale of assets | $ 0 | $ 0 | $ 0 | $ 241 | 241 |
Business Acquisition, Transaction Costs | 19 | ||||
Liabilities: | |||||
Tax expense related to disposition of assets | 72 | ||||
Deferred Tax Assets, Capital Loss Carryforwards | 19 | ||||
gain on disposition of assets, net of tax | $ 169 | ||||
In Flight Entertainment Systems Member | |||||
Liabilities: | |||||
Unrecorded Unconditional Purchase Obligations, Term | 7 years |
Subsequent Event Subsequent E42
Subsequent Event Subsequent Event (Details) - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Oct. 31, 2015USD ($) | |
Subsequent Event [Line Items] | |
Aircraft Lease Buyback | 6 |
Aircraft Lease Buyback Value | $ 110 |