Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2017shares | |
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, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 320,646,948 |
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, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 1 | $ 5 |
CURRENT ASSETS | ||
Cash and cash equivalents | 394 | 433 |
Investment securities | 420 | 538 |
Receivables, less allowance (2017-$1; 2016-$5) | 186 | 172 |
Prepaid expenses and other | 323 | 260 |
Total current assets | 1,323 | 1,403 |
PROPERTY AND EQUIPMENT | ||
Flight equipment | 8,569 | 7,868 |
Predelivery deposits for flight equipment | 230 | 223 |
Flight Equipment, gross plus deposits | 8,799 | 8,091 |
Less accumulated depreciation | 2,047 | 1,823 |
Flight Equipment, Net | 6,752 | 6,268 |
Other property and equipment | 1,017 | 972 |
Less accumulated depreciation | 387 | 345 |
Property plant and equipment other net | 630 | 627 |
Assets constructed for others | 561 | 561 |
Less accumulated depreciation | 201 | 185 |
Asset constructed for others net | 360 | 376 |
Total property and equipment | 7,742 | 7,271 |
OTHER ASSETS | ||
Investment securities | 0 | 90 |
Restricted cash | 60 | 62 |
Other | 471 | 497 |
Total other assets | 531 | 649 |
TOTAL ASSETS | 9,596 | 9,323 |
CURRENT LIABILITIES | ||
Accounts payable | 295 | 242 |
Air traffic liability | 1,262 | 1,120 |
Accrued salaries, wages and benefits | 288 | 342 |
Other accrued liabilities | 282 | 321 |
Current maturities of long-term debt and capital leases | 224 | 189 |
Total current liabilities | 2,351 | 2,214 |
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS | 1,031 | 1,195 |
CONSTRUCTION OBLIGATION | 445 | 457 |
DEFERRED TAXES AND OTHER LIABILITIES | ||
Deferred income taxes | 1,555 | 1,354 |
Other | 75 | 90 |
Total deferred taxes and other liabilities | 1,630 | 1,444 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.01 par value; 25 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value; 900 shares authorized, 417 and 414 shares issued and 321 and 337 shares outstanding at September 30, 2017 and December 31, 2016, respectively | 4 | 4 |
Treasury stock, at cost; 96 and 77 shares at September 30, 2017 and December 31, 2016, respectively | (890) | (500) |
Additional paid-in capital | 2,100 | 2,050 |
Retained earnings | 2,921 | 2,446 |
Accumulated other comprehensive income | 4 | 13 |
Total stockholders’ equity | 4,139 | 4,013 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 9,596 | $ 9,323 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 1 | $ 5 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25 | 25 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 900 | 900 |
Common stock, shares issued | 417 | 414 |
Common stock, shares, outstanding | 321 | 337 |
Treasury stock, shares | 96 | 77 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING REVENUES | ||||
Passenger | $ 1,623 | $ 1,571 | $ 4,724 | $ 4,536 |
Other | 190 | 161 | 535 | 455 |
Total operating revenues | 1,813 | 1,732 | 5,259 | 4,991 |
OPERATING EXPENSES | ||||
Aircraft fuel and related taxes | 347 | 293 | 994 | 782 |
Salaries, wages and benefits | 466 | 421 | 1,397 | 1,270 |
Landing fees and other rents | 104 | 98 | 301 | 276 |
Depreciation and amortization | 114 | 102 | 328 | 289 |
Aircraft rent | 26 | 28 | 75 | 84 |
Sales and marketing | 68 | 60 | 195 | 197 |
Maintenance materials and repairs | 149 | 153 | 467 | 427 |
Other operating expenses | 229 | 223 | 691 | 650 |
Total operating expenses | 1,503 | 1,378 | 4,448 | 3,975 |
OPERATING INCOME | 310 | 354 | 811 | 1,016 |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (23) | (28) | (72) | (85) |
Capitalized interest | 3 | 2 | 7 | 6 |
Interest income and other | 3 | 2 | 5 | 5 |
Total other income (expense) | (17) | (24) | (60) | (74) |
INCOME BEFORE TAXES | 293 | 330 | 751 | 942 |
Income tax expense | 114 | 131 | 276 | 355 |
NET INCOME | $ 179 | $ 199 | $ 475 | $ 587 |
EARNINGS PER COMMON SHARE: | ||||
Earnings Per Share, Basic | $ 0.55 | $ 0.61 | $ 1.44 | $ 1.81 |
Earnings Per Share, Diluted | $ 0.55 | $ 0.58 | $ 1.43 | $ 1.72 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Payments to Acquire Productive Assets | $ 705 | $ 480 | ||
NET INCOME | $ 179 | $ 199 | 475 | 587 |
Changes in fair value of derivative instruments, net of reclassifications into earnings (net of $1 and $(4) of taxes in 2017 and 2016, respectively) | 4 | (6) | (9) | 13 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 1 | (4) | (7) | 8 |
Total other comprehensive income | 4 | (6) | (9) | 13 |
COMPREHENSIVE INCOME | $ 183 | $ 193 | $ 466 | $ 600 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Net Income | $ 475 | $ 587 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes | 207 | 204 |
Depreciation | 283 | 248 |
Amortization | 45 | 41 |
Stock-based compensation | 22 | 18 |
Gains on sale of assets and debt extinguishment | 0 | (4) |
Changes in certain operating assets and liabilities | 58 | 235 |
Other, net | (24) | (12) |
Net cash provided by operating activities | 1,066 | 1,317 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (705) | (480) |
Predelivery deposits for flight equipment | (90) | (118) |
Purchase of held-to-maturity investments | (92) | (151) |
Proceeds from the maturities of held-to-maturity investments | 128 | 282 |
Purchase of available-for-sale securities | (223) | (507) |
Proceeds from the sale of available-for-sale securities | 395 | 345 |
Other, net | (6) | (1) |
Net cash used in investing activities | (593) | (630) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock | 28 | 26 |
Repayment of long-term debt and capital lease obligations | (138) | (148) |
Acquisition of treasury stock | (390) | (14) |
Other, net | (12) | 4 |
Net cash used in financing activities | (512) | (132) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (39) | 555 |
Cash and cash equivalents at beginning of period | 433 | 318 |
Cash and cash equivalents at end of period | $ 394 | $ 873 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation JetBlue Airways Corporation, or JetBlue, provides air transportation services across the United States, the Caribbean and Latin America. Our condensed consolidated financial statements include the accounts of 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 being eliminated. These condensed consolidated financial statements and related notes should be read in conjunction with our 2016 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 , or our 2016 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 generally accepted accounting principles in the U.S., or 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, 2017 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, 2017 or 2016 . The estimated fair value of these investments approximated their carrying value as of September 30, 2017 and December 31, 2016 , respectively. The carrying values of investment securities consisted of the following at September 30, 2017 and December 31, 2016 (in millions): September 30, 2017 December 31, 2016 Available-for-sale securities Time deposits $ 150 $ 160 Commercial paper 10 60 Debt securities 3 — Treasury bills — 115 Total available-for-sale securities 163 335 Held-to-maturity securities Treasury notes $ 205 $ 283 Corporate bonds 52 10 Total held-to-maturity securities 257 293 Total investment securities $ 420 $ 628 Recent Accounting Pronouncements During the first quarter of 2017, we adopted Accounting Standards Update, or ASU, 2015-17, Income Taxes, Balance Sheet Classification of Deferred Taxes topic of the FASB Codification, or Codification. This standard requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. In addition, valuation allowance allocations between current and non-current deferred tax assets are no longer required because those allowances also will be classified as non-current. Our condensed consolidated balance sheet as of December 31, 2016 reflects retrospective application. As a result of the adoption, $9 million of deferred tax liabilities previously included within other accrued liabilities and $164 million of deferred tax assets previously included within current assets have been moved to long-term liabilities on our December 31, 2016 balance sheet. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under ASU 2016-02, a lessee will recognize liabilities for lease payments and right-of-use assets representing its right to use the underlying asset for the lease term. While we are still evaluating the full impact of adopting the amendments on our consolidated financial statements and disclosures, we have determined that it will impact our accounting for leased aircraft and other leasing agreements. The amendments are effective for fiscal years beginning after December 15, 2018 and include interim periods within those fiscal years. Early adoption is permitted, and companies are required to use a modified retrospective approach at the earliest period presented. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash . The amendments clarified how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The amendments are effective for fiscal years beginning after December 15, 2017 and include interim periods within those years. Early adoption is permitted. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , 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 and is effective for interim and annual reporting periods beginning after December 15, 2017. JetBlue will adopt ASU 2014-09 effective January 1, 2018 and expects to use the full retrospective method. While we are evaluating the full impact of ASU 2014-09 on our consolidated financial statements, we have determined that the most significant impact of the standard will be on the accounting for our TrueBlue ® Loyalty Program. The standard eliminates the incremental cost method for loyalty program accounting which the Company currently uses and will require us to re-value the liability for points earned on qualifying JetBlue purchases using a relative fair value approach. We currently estimate that applying a relative fair value approach would increase air traffic liability by approximately $250 million to $350 million as of the beginning of the retrospective reporting period, depending on various assumptions made at the time of measurement. In addition, we currently have a liability for outstanding points that were earned in conjunction with our previous co-branded credit card agreement. Those points had been recorded using the residual method. The new standard does not permit the usage of the residual method for this contract and instead the transaction price will be allocated to the performance obligations on a relative selling price basis. This change in accounting methodology will decrease the relative value allocated to the transportation performance obligation and will result in a decrease to the liability, for which we are in the process of quantifying the impact. Currently, passenger revenue from unused tickets or passenger credits is recognized at expiration. Under the new standard, revenue will be recorded in proportion to flown revenue based on estimates of expected expiration. We also expect this standard to result in a change in the timing and classification of our revenue recognition for certain ancillary fees directly related to passenger tickets. We expect that these revenues, which were approximately $425 million for 2016, will be reclassified from other revenue in the current presentation to passenger revenue after adoption. |
Long-term Debt and Short-term B
Long-term Debt and Short-term Borrowings (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 , we made scheduled principal payments of $138 million on our outstanding long-term debt and capital lease obligations. We have pledged aircraft, engines, other equipment and facilities with a net book value of $2.4 billion at September 30, 2017 as security under various loan agreements. As of September 30, 2017 , we owned, free of encumbrance, 74 Airbus A320 aircraft, 36 Airbus A321 aircraft and 37 spare engines. At September 30, 2017 , scheduled maturities of all of our long-term debt and capital lease obligations were $55 million for the remainder of 2017, $194 million in 2018 , $215 million in 2019 , $179 million in 2020 , $164 million in 2021 and $448 million thereafter. The carrying amounts and estimated fair values of our long-term debt at September 30, 2017 and December 31, 2016 were as follows (in millions): September 30, 2017 December 31, 2016 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Public Debt Fixed rate special facility bonds, due through 2036 $ 42 $ 45 $ 42 $ 45 Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 169 178 188 197 Floating rate equipment notes, due through 2025 157 163 171 179 Fixed rate equipment notes, due through 2026 761 824 843 915 Total (1) $ 1,129 $ 1,210 $ 1,244 $ 1,336 (1) Total excludes capital lease obligations of $126 million for September 30, 2017 and $140 million for December 31, 2016 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 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 7 for an explanation of the fair value hierarchy structure. We have financed certain aircraft with Enhanced Equipment Trust Certificates, or EETC, as one of the benefits of this structure 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 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. Short-term Borrowings Citibank Line of Credit As of September 30, 2017 , we had an Amended and Restated Credit and Guaranty Agreement, or the Amended and Restated Facility, with Citibank, N.A. as the administrative agent for up to approximately $425 million . The term of the Amended and Restated Facility runs through April 6, 2021. Borrowings under the Amended and Restated Facility bear interest at a variable rate equal to LIBOR, plus a margin and are secured by Slots at John F. Kennedy International Airport, LaGuardia Airport and Reagan National Airport as well as certain other assets. Slots are rights to take-off or land at a specific airport during a specific time period during the day and are a means by which airport capacity and congestion can be managed. The Amended and Restated 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, among other things, dispose of certain collateral, or merge, consolidate, or sell assets. As of and for the periods ended September 30, 2017 and December 31, 2016 , we did not have a balance outstanding or borrowings under this line of credit. Morgan Stanley Line of Credit We have a revolving line of credit with Morgan Stanley for up to approximately $200 million . This line of credit is secured by a portion of our investment securities held by Morgan Stanley 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 and for the periods ended September 30, 2017 and December 31, 2016 , we did not have a balance outstanding under this line of credit. |
Comprehensive Income (Notes)
Comprehensive Income (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 and September 30, 2016 are as follows (in millions): Aircraft Fuel Derivatives (1) Interest Rate Swaps (2) Total Balance of accumulated income at June 30, 2017 $ — $ — $ — Reclassifications into earnings (net of $(2) of taxes) (2 ) — (2 ) Change in fair value (net of $3 of taxes) 6 — 6 Balance of accumulated income at September 30, 2017 $ 4 $ — $ 4 Balance of accumulated income at June 30, 2016 $ 15 $ 1 $ 16 Reclassifications into earnings (net of $0 of taxes) (1 ) (1 ) (2 ) Change in fair value (net of $(4) of taxes) (4 ) — (4 ) Balance of accumulated income at September 30, 2016 $ 10 $ — $ 10 (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, 2017 and September 30, 2016 are as follows (in millions): Aircraft Fuel Derivatives (1) Interest Rate Swaps (2) Total Balance of accumulated income at December 31, 2016 $ 13 $ — $ 13 Reclassifications into earnings (net of $(3) of taxes) (5 ) — (5 ) Change in fair value (net of $(4) of taxes) (4 ) — (4 ) Balance of accumulated income at September 30, 2017 $ 4 $ — $ 4 Balance of accumulated income (losses) at December 31, 2015 $ (4 ) $ 1 $ (3 ) Reclassifications into earnings (net of $0 of taxes) (1 ) (1 ) (2 ) Change in fair value (net of $(8) of taxes) 15 — 15 Balance of accumulated income at September 30, 2016 $ 10 $ — $ 10 (1) Reclassified to aircraft fuel expense (2) Reclassified to interest expense |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | 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, 2017 2016 2017 2016 Numerator: Net Income (1) $ 179 $ 199 $ 475 $ 587 Effect of dilutive securities: Interest on convertible debt, net of income taxes and profit sharing — 1 — 2 Net income applicable to common stockholders after assumed conversions for diluted earnings per share $ 179 $ 200 $ 475 $ 589 Denominator: Weighted average shares outstanding 326.1 323.7 330.8 322.8 Effect of dilutive securities: Employee stock options, restricted stock units and stock purchase plan 1.7 1.9 1.6 2.2 Convertible debt — 17.6 — 17.6 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share 327.8 343.2 332.4 342.6 (1) We early adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , during the fourth quarter of 2016. The adoption of this standard resulted in the recognition of $8 million of excess tax benefits to the income tax provision for the year ended December 31, 2016. Net income and shares outstanding data for the three months and nine months ended September 30, 2016 are presented as if the ASU was adopted at the beginning of 2016. We have no convertible debt outstanding as of September 30, 2017. During the three and nine months ended September 30, 2016 , there were no shares excluded from earnings per share upon assumed conversion of our convertible debt. On March 6, 2017 , JetBlue entered into an accelerated share repurchase, or ASR, agreement with Barclays Bank PLC, or Barclays, paying $100 million for an initial delivery of approximately 4.1 million shares. The term of the Barclays ASR concluded on April 24, 2017 with Barclays delivering approximately 0.8 million additional shares to JetBlue on April 27, 2017 . A total of 4.9 million shares, at an average price of $20.23 per share, were repurchased under the agreement. The total number of shares repurchased by JetBlue was based on the volume weighted average price of JetBlue's common stock during the term of the Barclays ASR agreement. On April 27, 2017 , JetBlue entered into an ASR agreement with Goldman, Sachs & Co., or GS&Co., paying $150 million for an initial delivery of approximately 5.4 million shares. The term of the GS&Co. ASR concluded on July 24, 2017 with GS&Co. delivering approximately 1.4 million additional shares to JetBlue on July 27, 2017 . A total of 6.8 million shares, at an average price of $21.99 per share, were repurchased under the agreement. The total number of shares repurchased by JetBlue was based on the volume weighted average price of JetBlue's common stock during the term of the GS&Co. agreement. On September 11, 2017 , JetBlue entered into an ASR agreement with Morgan Stanley & Co. LLC, or Morgan Stanley, paying $130 million for an initial delivery of approximately 5.4 million shares. The term of the Morgan Stanley ASR concluded on September 26, 2017 with Morgan Stanley delivering approximately 1.5 million additional shares to JetBlue on September 28, 2017 . A total of 6.9 million shares, at an average price of $18.86 per share, were repurchased under the agreement. The total number of shares repurchased by JetBlue was based on the volume weighted average price of JetBlue's common stock during the term of the Morgan Stanley agreement. 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, 2017 2016 2017 2016 Numerator: Net Income (1) $ 179 $ 199 $ 475 $ 587 Effect of dilutive securities: Interest on convertible debt, net of income taxes and profit sharing — 1 — 2 Net income applicable to common stockholders after assumed conversions for diluted earnings per share $ 179 $ 200 $ 475 $ 589 Denominator: Weighted average shares outstanding 326.1 323.7 330.8 322.8 Effect of dilutive securities: Employee stock options, restricted stock units and stock purchase plan 1.7 1.9 1.6 2.2 Convertible debt — 17.6 — 17.6 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share 327.8 343.2 332.4 342.6 |
Employee Retirement Plan (Notes
Employee Retirement Plan (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Crewmember Retirement Plan and Profit Sharing We sponsor a retirement savings 401(k) defined contribution plan, or the Plan, covering all of our employees, who we refer to as Crewmembers, where we match 100% of our Crewmembers' contributions up to 5% of their eligible wages. The contributions vest over 5 years and are measured from a Crewmember's hire date. Crewmembers 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 3 years and are measured from a Crewmember's hire date. For years of service prior to 2017, our non-management Crewmembers were also eligible to receive profit sharing, calculated as 15% of adjusted pre-tax income before profit sharing and special items with the result reduced by Retirement Plus contributions. Beginning with 2017, non-management Crewmembers are eligible to receive profit sharing, calculated as 10% of adjusted pre-tax income before profit sharing and special items up to a pre-tax margin of 18% . If JetBlue's resulting pre-tax margin exceeds 18% , non-management Crewmembers will receive 20% profit sharing above an 18% pre-tax margin. The result is reduced by Retirement Plus contributions and Crewmembers may elect to have their profit sharing contributed directly to the Plan. Certain Federal Aviation Administration, or 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 for the three months ended September 30, 2017 and 2016 was $49 million and $74 million , respectively, while the total amount expensed for the nine months ended September 30, 2017 and 2016 was $143 million and $221 million , respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Flight Equipment Commitments As of September 30, 2017 , our firm aircraft orders consisted of 25 Airbus A320 new engine option (neo) aircraft, 17 Airbus A321 aircraft, 60 Airbus A321neo aircraft, 24 Embraer 190 aircraft and 10 spare engines scheduled for delivery through 2024 . Committed expenditures for these aircraft and related flight equipment, including estimated amounts for contractual price escalations and predelivery deposits, will be approximately $343 million for the remainder of 2017 , $814 million in 2018 , $1.0 billion in 2019 , $1.4 billion in 2020 , $1.5 billion in 2021 and $2.6 billion thereafter . Other Commitments As part of the 2014 sale of LiveTV, LLC, or LiveTV, formerly a wholly owned subsidiary of JetBlue, to Thales Holding Corporation a $3 million liability relating to Airfone, a former subsidiary of LiveTV, was assigned to JetBlue under the purchase agreement with Thales. 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 purchase. 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, 2017 , we had approximately $29 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 $27 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. 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 GAAP, where appropriate. In making a determination regarding accruals, using available information, we evaluate the likelihood of an unfavorable outcome in legal or regulatory proceedings to which we are a party and record a loss contingency when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. These subjective determinations are based on the status of such legal or regulatory proceedings, the merits of our defenses and consultation with legal counsel. Actual outcomes of these legal and regulatory proceedings may materially differ from our current estimates. It is possible that resolution of one or more of the legal matters currently pending or threatened could result in losses material to our consolidated results of operations, liquidity or financial condition. To date, none of these types of litigation matters, most of which are typically covered by insurance, has had a material impact on our operations or financial condition. We have insured and continue to insure against most of these types of claims. A judgment on any claim not covered by, or in excess of, our insurance coverage could materially adversely affect our financial condition or results of operations. |
Financial Derivative Instrument
Financial Derivative Instruments and Risk Management (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
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. 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 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 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, 2017 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 2017 10 % — % — % 10 % 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): Fuel derivatives September 30, December 31, Asset fair value recorded in prepaid expense and other (1) $ 6 $ 22 Longest remaining term (months) 3 12 Hedged volume (barrels, in thousands) 480 1,920 Estimated amount of existing (gains) expected to be reclassified into earnings in the next 12 months $ (5 ) $ (22 ) Three Months Ended September 30, Nine Months Ended September 30, Fuel derivatives 2017 2016 2017 2016 Hedge effectiveness (gains) recognized in aircraft fuel expense $ (4 ) $ (1 ) $ (8 ) $ (1 ) Hedge (gains) losses on derivatives recognized in comprehensive income (9 ) 8 8 (23 ) Percentage of actual consumption economically hedged 10 % 24 % 10 % 8 % (1) Gross asset of each contract prior to consideration of offsetting positions with each counterparty and prior to the impact of collateral paid. 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 on Balance Sheet Fuel derivatives Assets Liabilities Offset Assets Liabilities As of September 30, 2017 $ 6 $ — $ — $ 6 $ — As of December 31, 2016 $ 22 $ — $ — $ 22 $ — |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 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 of September 30, 2017 and December 31, 2016 (in millions): September 30, 2017 Assets Level 1 Level 2 Level 3 Total Cash equivalents $ 254 $ — $ — $ 254 Available-for-sale investment securities — 163 — 163 Aircraft fuel derivatives — 6 — 6 $ 254 $ 169 $ — $ 423 December 31, 2016 Assets Level 1 Level 2 Level 3 Total Cash equivalents $ 313 $ — $ — $ 313 Available-for-sale investment securities 115 220 — 335 Aircraft fuel derivatives — 22 — 22 $ 428 $ 242 $ — $ 670 Refer to Note 2 for fair value information related to our outstanding debt obligations as of September 30, 2017 and December 31, 2016 . 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 U.S. treasury bills, time deposits, commercial paper and debt securities with maturities of greater than 90 days but less than one year. The U.S. treasury bills are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. The fair values of our time deposits, commercial paper and debt securities 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, 2017 and 2016 . 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 in the hierarchy. The data inputs are combined into quantitative models and processes to generate forward curves and volatilities related to the specific terms of the underlying hedge contracts. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Basis of Presentation JetBlue Airways Corporation, or JetBlue, provides air transportation services across the United States, the Caribbean and Latin America. Our condensed consolidated financial statements include the accounts of 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 being eliminated. These condensed consolidated financial statements and related notes should be read in conjunction with our 2016 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 , or our 2016 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 generally accepted accounting principles in the U.S., or 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, 2017 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, 2017 or 2016 . The estimated fair value of these investments approximated their carrying value as of September 30, 2017 and December 31, 2016 , respectively. The carrying values of investment securities consisted of the following at September 30, 2017 and December 31, 2016 (in millions): September 30, 2017 December 31, 2016 Available-for-sale securities Time deposits $ 150 $ 160 Commercial paper 10 60 Debt securities 3 — Treasury bills — 115 Total available-for-sale securities 163 335 Held-to-maturity securities Treasury notes $ 205 $ 283 Corporate bonds 52 10 Total held-to-maturity securities 257 293 Total investment securities $ 420 $ 628 Recent Accounting Pronouncements During the first quarter of 2017, we adopted Accounting Standards Update, or ASU, 2015-17, Income Taxes, Balance Sheet Classification of Deferred Taxes topic of the FASB Codification, or Codification. This standard requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. In addition, valuation allowance allocations between current and non-current deferred tax assets are no longer required because those allowances also will be classified as non-current. Our condensed consolidated balance sheet as of December 31, 2016 reflects retrospective application. As a result of the adoption, $9 million of deferred tax liabilities previously included within other accrued liabilities and $164 million of deferred tax assets previously included within current assets have been moved to long-term liabilities on our December 31, 2016 balance sheet. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under ASU 2016-02, a lessee will recognize liabilities for lease payments and right-of-use assets representing its right to use the underlying asset for the lease term. While we are still evaluating the full impact of adopting the amendments on our consolidated financial statements and disclosures, we have determined that it will impact our accounting for leased aircraft and other leasing agreements. The amendments are effective for fiscal years beginning after December 15, 2018 and include interim periods within those fiscal years. Early adoption is permitted, and companies are required to use a modified retrospective approach at the earliest period presented. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash . The amendments clarified how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The amendments are effective for fiscal years beginning after December 15, 2017 and include interim periods within those years. Early adoption is permitted. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , 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 and is effective for interim and annual reporting periods beginning after December 15, 2017. JetBlue will adopt ASU 2014-09 effective January 1, 2018 and expects to use the full retrospective method. While we are evaluating the full impact of ASU 2014-09 on our consolidated financial statements, we have determined that the most significant impact of the standard will be on the accounting for our TrueBlue ® Loyalty Program. The standard eliminates the incremental cost method for loyalty program accounting which the Company currently uses and will require us to re-value the liability for points earned on qualifying JetBlue purchases using a relative fair value approach. We currently estimate that applying a relative fair value approach would increase air traffic liability by approximately $250 million to $350 million as of the beginning of the retrospective reporting period, depending on various assumptions made at the time of measurement. In addition, we currently have a liability for outstanding points that were earned in conjunction with our previous co-branded credit card agreement. Those points had been recorded using the residual method. The new standard does not permit the usage of the residual method for this contract and instead the transaction price will be allocated to the performance obligations on a relative selling price basis. This change in accounting methodology will decrease the relative value allocated to the transportation performance obligation and will result in a decrease to the liability, for which we are in the process of quantifying the impact. Currently, passenger revenue from unused tickets or passenger credits is recognized at expiration. Under the new standard, revenue will be recorded in proportion to flown revenue based on estimates of expected expiration. We also expect this standard to result in a change in the timing and classification of our revenue recognition for certain ancillary fees directly related to passenger tickets. We expect that these revenues, which were approximately $425 million for 2016, will be reclassified from other revenue in the current presentation to passenger revenue after adoption. |
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 in the hierarchy. 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. |
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 Airways Corporation, or JetBlue, provides air transportation services across the United States, the Caribbean and Latin America. Our condensed consolidated financial statements include the accounts of 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 being eliminated. These condensed consolidated financial statements and related notes should be read in conjunction with our 2016 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 , or our 2016 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 generally accepted accounting principles in the U.S., or 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. The contractual maturities of the corporate bonds we held as of September 30, 2017 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, 2017 or 2016 . The estimated fair value of these investments approximated their carrying value as of September 30, 2017 and December 31, 2016 , respectively. The carrying values of investment securities consisted of the following at September 30, 2017 and December 31, 2016 (in millions): September 30, 2017 December 31, 2016 Available-for-sale securities Time deposits $ 150 $ 160 Commercial paper 10 60 Debt securities 3 — Treasury bills — 115 Total available-for-sale securities 163 335 Held-to-maturity securities Treasury notes $ 205 $ 283 Corporate bonds 52 10 Total held-to-maturity securities 257 293 Total investment securities $ 420 $ 628 |
Held-to-maturity investment securities | Held-to-maturity investment securities. The contractual maturities of the corporate bonds we held as of September 30, 2017 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, 2017 or 2016 . The estimated fair value of these investments approximated their carrying value as of September 30, 2017 and December 31, 2016 , respectively. |
New Accounting Pronouncements [Policy Text Block] | Recent Accounting Pronouncements During the first quarter of 2017, we adopted Accounting Standards Update, or ASU, 2015-17, Income Taxes, Balance Sheet Classification of Deferred Taxes topic of the FASB Codification, or Codification. This standard requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. In addition, valuation allowance allocations between current and non-current deferred tax assets are no longer required because those allowances also will be classified as non-current. Our condensed consolidated balance sheet as of December 31, 2016 reflects retrospective application. As a result of the adoption, $9 million of deferred tax liabilities previously included within other accrued liabilities and $164 million of deferred tax assets previously included within current assets have been moved to long-term liabilities on our December 31, 2016 balance sheet. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under ASU 2016-02, a lessee will recognize liabilities for lease payments and right-of-use assets representing its right to use the underlying asset for the lease term. While we are still evaluating the full impact of adopting the amendments on our consolidated financial statements and disclosures, we have determined that it will impact our accounting for leased aircraft and other leasing agreements. The amendments are effective for fiscal years beginning after December 15, 2018 and include interim periods within those fiscal years. Early adoption is permitted, and companies are required to use a modified retrospective approach at the earliest period presented. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash . The amendments clarified how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The amendments are effective for fiscal years beginning after December 15, 2017 and include interim periods within those years. Early adoption is permitted. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , 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 and is effective for interim and annual reporting periods beginning after December 15, 2017. JetBlue will adopt ASU 2014-09 effective January 1, 2018 and expects to use the full retrospective method. While we are evaluating the full impact of ASU 2014-09 on our consolidated financial statements, we have determined that the most significant impact of the standard will be on the accounting for our TrueBlue ® Loyalty Program. The standard eliminates the incremental cost method for loyalty program accounting which the Company currently uses and will require us to re-value the liability for points earned on qualifying JetBlue purchases using a relative fair value approach. We currently estimate that applying a relative fair value approach would increase air traffic liability by approximately $250 million to $350 million as of the beginning of the retrospective reporting period, depending on various assumptions made at the time of measurement. In addition, we currently have a liability for outstanding points that were earned in conjunction with our previous co-branded credit card agreement. Those points had been recorded using the residual method. The new standard does not permit the usage of the residual method for this contract and instead the transaction price will be allocated to the performance obligations on a relative selling price basis. This change in accounting methodology will decrease the relative value allocated to the transportation performance obligation and will result in a decrease to the liability, for which we are in the process of quantifying the impact. Currently, passenger revenue from unused tickets or passenger credits is recognized at expiration. Under the new standard, revenue will be recorded in proportion to flown revenue based on estimates of expected expiration. We also expect this standard to result in a change in the timing and classification of our revenue recognition for certain ancillary fees directly related to passenger tickets. We expect that these revenues, which were approximately $425 million for 2016, will be reclassified from other revenue in the current presentation to passenger revenue after adoption. |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Available-for-sale investment securities Included in our available-for-sale investment securities are U.S. treasury bills, time deposits, commercial paper and debt securities with maturities of greater than 90 days but less than one year. The U.S. treasury bills are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. The fair values of our time deposits, commercial paper and debt securities 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, 2017 and 2016 . |
Long-term Debt and Short-term16
Long-term Debt and Short-term Borrowings Short-Term Borrowings (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Short-Term Borrowing Disclosure [Abstract] | |
Short-term Debt [Text Block] | Short-term Borrowings Citibank Line of Credit As of September 30, 2017 , we had an Amended and Restated Credit and Guaranty Agreement, or the Amended and Restated Facility, with Citibank, N.A. as the administrative agent for up to approximately $425 million . The term of the Amended and Restated Facility runs through April 6, 2021. Borrowings under the Amended and Restated Facility bear interest at a variable rate equal to LIBOR, plus a margin and are secured by Slots at John F. Kennedy International Airport, LaGuardia Airport and Reagan National Airport as well as certain other assets. Slots are rights to take-off or land at a specific airport during a specific time period during the day and are a means by which airport capacity and congestion can be managed. The Amended and Restated 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, among other things, dispose of certain collateral, or merge, consolidate, or sell assets. As of and for the periods ended September 30, 2017 and December 31, 2016 , we did not have a balance outstanding or borrowings under this line of credit. Morgan Stanley Line of Credit We have a revolving line of credit with Morgan Stanley for up to approximately $200 million . This line of credit is secured by a portion of our investment securities held by Morgan Stanley 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 and for the periods ended September 30, 2017 and December 31, 2016 , we did not have a balance outstanding under this line of credit. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of marketable securities | The carrying values of investment securities consisted of the following at September 30, 2017 and December 31, 2016 (in millions): September 30, 2017 December 31, 2016 Available-for-sale securities Time deposits $ 150 $ 160 Commercial paper 10 60 Debt securities 3 — Treasury bills — 115 Total available-for-sale securities 163 335 Held-to-maturity securities Treasury notes $ 205 $ 283 Corporate bonds 52 10 Total held-to-maturity securities 257 293 Total investment securities $ 420 $ 628 |
Long-term Debt and Short-term18
Long-term Debt and Short-term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | The carrying amounts and estimated fair values of our long-term debt at September 30, 2017 and December 31, 2016 were as follows (in millions): September 30, 2017 December 31, 2016 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Public Debt Fixed rate special facility bonds, due through 2036 $ 42 $ 45 $ 42 $ 45 Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 169 178 188 197 Floating rate equipment notes, due through 2025 157 163 171 179 Fixed rate equipment notes, due through 2026 761 824 843 915 Total (1) $ 1,129 $ 1,210 $ 1,244 $ 1,336 (1) Total excludes capital lease obligations of $126 million for September 30, 2017 and $140 million for December 31, 2016 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 nine months ended September 30, 2017 and September 30, 2016 are as follows (in millions): Aircraft Fuel Derivatives (1) Interest Rate Swaps (2) Total Balance of accumulated income at December 31, 2016 $ 13 $ — $ 13 Reclassifications into earnings (net of $(3) of taxes) (5 ) — (5 ) Change in fair value (net of $(4) of taxes) (4 ) — (4 ) Balance of accumulated income at September 30, 2017 $ 4 $ — $ 4 Balance of accumulated income (losses) at December 31, 2015 $ (4 ) $ 1 $ (3 ) Reclassifications into earnings (net of $0 of taxes) (1 ) (1 ) (2 ) Change in fair value (net of $(8) of taxes) 15 — 15 Balance of accumulated income at September 30, 2016 $ 10 $ — $ 10 (1) Reclassified to aircraft fuel expense (2) Reclassified to interest expense 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, 2017 and September 30, 2016 are as follows (in millions): Aircraft Fuel Derivatives (1) Interest Rate Swaps (2) Total Balance of accumulated income at June 30, 2017 $ — $ — $ — Reclassifications into earnings (net of $(2) of taxes) (2 ) — (2 ) Change in fair value (net of $3 of taxes) 6 — 6 Balance of accumulated income at September 30, 2017 $ 4 $ — $ 4 Balance of accumulated income at June 30, 2016 $ 15 $ 1 $ 16 Reclassifications into earnings (net of $0 of taxes) (1 ) (1 ) (2 ) Change in fair value (net of $(4) of taxes) (4 ) — (4 ) Balance of accumulated income at September 30, 2016 $ 10 $ — $ 10 (1) Reclassified to aircraft fuel expense (2) Reclassified to interest expense |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | 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, 2017 2016 2017 2016 Numerator: Net Income (1) $ 179 $ 199 $ 475 $ 587 Effect of dilutive securities: Interest on convertible debt, net of income taxes and profit sharing — 1 — 2 Net income applicable to common stockholders after assumed conversions for diluted earnings per share $ 179 $ 200 $ 475 $ 589 Denominator: Weighted average shares outstanding 326.1 323.7 330.8 322.8 Effect of dilutive securities: Employee stock options, restricted stock units and stock purchase plan 1.7 1.9 1.6 2.2 Convertible debt — 17.6 — 17.6 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share 327.8 343.2 332.4 342.6 (1) We early adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , during the fourth quarter of 2016. The adoption of this standard resulted in the recognition of $8 million of excess tax benefits to the income tax provision for the year ended December 31, 2016. Net income and shares outstanding data for the three months and nine months ended September 30, 2016 are presented as if the ASU was adopted at the beginning of 2016. We have no convertible debt outstanding as of September 30, 2017. During the three and nine months ended September 30, 2016 , there were no shares excluded from earnings per share upon assumed conversion of our convertible debt. On March 6, 2017 , JetBlue entered into an accelerated share repurchase, or ASR, agreement with Barclays Bank PLC, or Barclays, paying $100 million for an initial delivery of approximately 4.1 million shares. The term of the Barclays ASR concluded on April 24, 2017 with Barclays delivering approximately 0.8 million additional shares to JetBlue on April 27, 2017 . A total of 4.9 million shares, at an average price of $20.23 per share, were repurchased under the agreement. The total number of shares repurchased by JetBlue was based on the volume weighted average price of JetBlue's common stock during the term of the Barclays ASR agreement. On April 27, 2017 , JetBlue entered into an ASR agreement with Goldman, Sachs & Co., or GS&Co., paying $150 million for an initial delivery of approximately 5.4 million shares. The term of the GS&Co. ASR concluded on July 24, 2017 with GS&Co. delivering approximately 1.4 million additional shares to JetBlue on July 27, 2017 . A total of 6.8 million shares, at an average price of $21.99 per share, were repurchased under the agreement. The total number of shares repurchased by JetBlue was based on the volume weighted average price of JetBlue's common stock during the term of the GS&Co. agreement. On September 11, 2017 , JetBlue entered into an ASR agreement with Morgan Stanley & Co. LLC, or Morgan Stanley, paying $130 million for an initial delivery of approximately 5.4 million shares. The term of the Morgan Stanley ASR concluded on September 26, 2017 with Morgan Stanley delivering approximately 1.5 million additional shares to JetBlue on September 28, 2017 . A total of 6.9 million shares, at an average price of $18.86 per share, were repurchased under the agreement. The total number of shares repurchased by JetBlue was based on the volume weighted average price of JetBlue's common stock during the term of the Morgan Stanley agreement. 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, 2017 2016 2017 2016 Numerator: Net Income (1) $ 179 $ 199 $ 475 $ 587 Effect of dilutive securities: Interest on convertible debt, net of income taxes and profit sharing — 1 — 2 Net income applicable to common stockholders after assumed conversions for diluted earnings per share $ 179 $ 200 $ 475 $ 589 Denominator: Weighted average shares outstanding 326.1 323.7 330.8 322.8 Effect of dilutive securities: Employee stock options, restricted stock units and stock purchase plan 1.7 1.9 1.6 2.2 Convertible debt — 17.6 — 17.6 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share 327.8 343.2 332.4 342.6 |
Financial Derivative Instrume21
Financial Derivative Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 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 2017 10 % — % — % 10 % |
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): Fuel derivatives September 30, December 31, Asset fair value recorded in prepaid expense and other (1) $ 6 $ 22 Longest remaining term (months) 3 12 Hedged volume (barrels, in thousands) 480 1,920 Estimated amount of existing (gains) expected to be reclassified into earnings in the next 12 months $ (5 ) $ (22 ) Three Months Ended September 30, Nine Months Ended September 30, Fuel derivatives 2017 2016 2017 2016 Hedge effectiveness (gains) recognized in aircraft fuel expense $ (4 ) $ (1 ) $ (8 ) $ (1 ) Hedge (gains) losses on derivatives recognized in comprehensive income (9 ) 8 8 (23 ) Percentage of actual consumption economically hedged 10 % 24 % 10 % 8 % (1) Gross asset of each contract prior to consideration of offsetting positions with each counterparty and prior to the impact of collateral paid. |
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 on Balance Sheet Fuel derivatives Assets Liabilities Offset Assets Liabilities As of September 30, 2017 $ 6 $ — $ — $ 6 $ — As of December 31, 2016 $ 22 $ — $ — $ 22 $ — |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 and December 31, 2016 (in millions): September 30, 2017 Assets Level 1 Level 2 Level 3 Total Cash equivalents $ 254 $ — $ — $ 254 Available-for-sale investment securities — 163 — 163 Aircraft fuel derivatives — 6 — 6 $ 254 $ 169 $ — $ 423 December 31, 2016 Assets Level 1 Level 2 Level 3 Total Cash equivalents $ 313 $ — $ — $ 313 Available-for-sale investment securities 115 220 — 335 Aircraft fuel derivatives — 22 — 22 $ 428 $ 242 $ — $ 670 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||||||
Held-to-maturity Securities, Gross Gains (Losses), Derivatives | $ 0 | $ 0 | $ 0 | $ 0 | ||
Available-for-sale securities | ||||||
Available-for-sale investment securities | 163 | 163 | $ 335 | |||
Held-to-maturity securities | ||||||
Held-to-maturity securities | 257 | 257 | 293 | |||
Marketable securities | 420 | 420 | 628 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 8 | |||||
Bank Time Deposits [Member] | ||||||
Available-for-sale securities | ||||||
Available-for-sale investment securities | 150 | 150 | 160 | |||
Commercial paper [Member] | ||||||
Available-for-sale securities | ||||||
Available-for-sale investment securities | 10 | 10 | 60 | |||
US Treasury Bill Securities [Member] | ||||||
Available-for-sale securities | ||||||
Available-for-sale investment securities | 0 | 0 | 115 | |||
Convertible Debt Securities [Member] | ||||||
Available-for-sale securities | ||||||
Available-for-sale investment securities | 3 | 3 | 0 | |||
Corporate bonds [Member] | ||||||
Held-to-maturity securities | ||||||
Held-to-maturity securities | 205 | 205 | 283 | |||
US Treasury Securities [Member] | ||||||
Held-to-maturity securities | ||||||
Held-to-maturity securities | $ 52 | $ 52 | 10 | |||
Other Liabilities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 9 | |||||
Other Current Assets [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 164 | |||||
Scenario, Forecast [Member] | Minimum [Member] | Deferred Revenue [Domain] | ||||||
Held-to-maturity securities | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 250 | |||||
Scenario, Forecast [Member] | Maximum [Member] | Deferred Revenue [Domain] | ||||||
Held-to-maturity securities | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 350 | |||||
Sales Revenue, Net [Member] | Scenario, Forecast [Member] | ||||||
Held-to-maturity securities | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 425 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies Held-to-Maturity Gains (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Held-to-maturity Securities, Gross Gains (Losses), Derivatives | $ 0 | $ 0 | $ 0 | $ 0 |
Long-term Debt and Short-term25
Long-term Debt and Short-term Borrowings (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016shares | Sep. 30, 2017USD ($)engineaircraftshares | Sep. 30, 2016shares | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 0 | 0 | 0 | |
Reduction in outstanding debt and capital lease obligations | $ 138 | |||
Value of aircraft, engines and other equipment and facilities which were pledged as security under various loan agreements | $ 2,400 | |||
unencumbered spare engine | engine | 37 | |||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 55 | |||
Long-term debt, maturities, repayments of principal in Year Two | 194 | |||
Long-term debt, maturities, repayments of principal in Year Three | 215 | |||
Long-term debt, maturities, repayments of principal in Year Four | 179 | |||
Long-term debt, maturities, repayments of principal in Year Five | 164 | |||
Long-term debt, maturities, repayments of principal after Year Five | 448 | |||
Capital Lease Obligations | 126 | $ 140 | ||
Carrying amounts and estimated fair values of long-term debt | ||||
Carrying Value, Total | 1,129 | 1,244 | ||
Estimated Fair Value, Total | 1,210 | 1,336 | ||
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 | 42 | 42 | ||
Estimated Fair Value, Total | 45 | 45 | ||
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 | 169 | 188 | ||
Estimated Fair Value, Total | 178 | 197 | ||
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 | 157 | 171 | ||
Estimated Fair Value, Total | 163 | 179 | ||
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 | 761 | 843 | ||
Estimated Fair Value, Total | $ 824 | 915 | ||
A-320-200 [Member] | ||||
Debt Instrument [Line Items] | ||||
unencumbered aircraft | aircraft | 74 | |||
A-321 [Member] | ||||
Debt Instrument [Line Items] | ||||
unencumbered aircraft | aircraft | 36 | |||
Citibank [Member] | ||||
Carrying amounts and estimated fair values of long-term debt | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 425 | |||
Long-term Line of Credit | $ 0 | 0 | ||
Citibank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | ||||
Carrying amounts and estimated fair values of long-term debt | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR, plus a margin | |||
Morgan Stanley [Member] | ||||
Carrying amounts and estimated fair values of long-term debt | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200 | |||
Long-term Line of Credit | $ 0 | $ 0 | ||
Morgan Stanley [Member] | London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | ||||
Carrying amounts and estimated fair values of long-term debt | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR, plus a margin |
Long-term Debt and Short-term26
Long-term Debt and Short-term Borrowings Short-term Borrowings (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Citibank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 425 | |
Long-term Line of Credit | 0 | $ 0 |
Morgan Stanley [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 200 | |
Long-term Line of Credit | $ 0 | $ 0 |
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | Citibank [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR, plus a margin | |
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | Morgan Stanley [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR, plus a margin |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | $ (2) | $ 0 | $ (3) | $ 0 |
Beginning accumulated gains (losses) | 0 | 16 | 13 | (3) |
Reclassifications into earnings | (2) | (2) | (5) | (2) |
Change in fair value | 6 | (4) | (4) | 15 |
Ending accumulated losses | 4 | 10 | 4 | 10 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 3 | (4) | (4) | 8 |
Fuel Derivatives Member | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning accumulated gains (losses) | 0 | 15 | 13 | (4) |
Reclassifications into earnings | (2) | (1) | (5) | (1) |
Change in fair value | 6 | (4) | (4) | 15 |
Ending accumulated losses | 4 | 10 | 4 | 10 |
Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning accumulated gains (losses) | 0 | 1 | 0 | 1 |
Reclassifications into earnings | 0 | (1) | 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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ (2) | $ (2) | $ (5) | $ (2) | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 6 | (4) | (4) | 15 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 4 | 10 | 4 | 10 | $ 0 | $ 13 | $ 16 | $ (3) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (2) | 0 | (3) | 0 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 3 | (4) | (4) | 8 | ||||
Fuel Derivatives Member | ||||||||
Derivative [Line Items] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (2) | (1) | (5) | (1) | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 6 | (4) | (4) | 15 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 4 | 10 | 4 | 10 | 0 | 13 | 15 | (4) |
Interest Rate Swap [Member] | ||||||||
Derivative [Line Items] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | (1) | 0 | (1) | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 0 | 0 | 0 | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1 | $ 1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 26, 2017 | Sep. 12, 2017 | Apr. 28, 2017 | Mar. 07, 2017 | Sep. 26, 2017 | Apr. 24, 2017 | Apr. 24, 2017 | Sep. 30, 2017 | Jul. 24, 2017 | Jul. 24, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Sep. 11, 2017 | Apr. 27, 2017 |
Numerator: | ||||||||||||||||
Net Income | $ 179 | $ 199 | $ 475 | $ 587 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Interest on convertible debt, net of income taxes and profit sharing | 0 | 1 | 0 | 2 | ||||||||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ 179 | $ 200 | $ 475 | $ 589 | ||||||||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding | 326,100,000 | 323,700,000 | 330,800,000 | 322,800,000 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Employee stock options, restricted stock units and stock purchase plan | 1,700,000 | 1,900,000 | 1,600,000 | 2,200,000 | ||||||||||||
Convertible debt | 0 | 17,600,000 | 0 | 17,600,000 | ||||||||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 327,800,000 | 343,200,000 | 332,400,000 | 342,600,000 | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||
Defined Contribution Plan Requisite Service Period | 5 years | |||||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 8 | |||||||||||||||
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 | 0 | 0 | |||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 100 | $ 130 | $ 150 | |||||||||||||
Treasury Stock, Shares, Acquired | 1,500,000 | 5,400,000 | 5,400,000 | 4,100,000 | 6,900,000 | 800,000 | 4,900,000 | 1,400,000 | 6,800,000 | |||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 18.86 | $ 20.23 | $ 21.99 | |||||||||||||
Percentage of employees' gross pay for which the employer can contribute a discretionary profit sharing contribution to the Plan. | 0.00% |
Employee Retirement Plan (Detai
Employee Retirement Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |||
Employee Retirement Plan (Textuals) [Abstract] | ||||
Percentage of employees' gross pay for which the employer contributes a matching contribution to the Plan. | 5.00% | |||
Defined Contribution Plan Requisite Service Period | 5 years | |||
Percentage of employees' gross pay for which the employer can contribute a discretionary profit sharing contribution to the Plan. | 0.00% | |||
Retirement Plus Contribution Plan Requisite Service Period for Vesting | 3 years | |||
Percentage of Its Eligible Pre Tax Profits for which the employer contributes to the Plan. | 15.00% | |||
Percentage of Eligible Pre-tax Profits the Company Contributes to Profit Sharing If Pretax Margin is at or below 18% | 10.00% | |||
Profit Sharing Calculation Trigger, Pretax Margin | 18.00% | |||
Percentage of Eligible Pre-tax Profits the Company Contributes to Profit Sharing If Pretax Margin is above 18% | 20.00% | |||
Percentage of FAA licensed employees gross pay for which ER can contribute discretionary profit sharing contribution to plan | 3.00% | |||
Defined Contribution Plan, Cost | $ 49 | $ 74 | $ 143 | $ 221 |
Commitments and Contingencies31
Commitments and Contingencies (Details) $ in Millions | 9 Months Ended | 84 Months Ended | |
Sep. 30, 2017USD ($)engineaircraft | Dec. 31, 2020USD ($) | Jun. 10, 2014USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | $ 343 | ||
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 800 | ||
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 1,019 | ||
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 1,400 | ||
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 1,500 | ||
Unrecorded Unconditional Purchase Obligation, Due after Five Years | 2,600 | ||
Loss Contingency Accrual | $ 3 | ||
Restricted assets pledged under letter of credit | 29 | ||
Restricted Assets Pledged Related To Workers Compensation Insurance Policies And Other Business Partner Agreements | $ 27 | ||
A-320-Neo [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Unrecorded Unconditional Purchase Obligations Disclosure | aircraft | 25 | ||
A-321 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Unrecorded Unconditional Purchase Obligations Disclosure | aircraft | 17 | ||
A-321 Neo [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Unrecorded Unconditional Purchase Obligations Disclosure | aircraft | 60 | ||
E-190 [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 | ||
Scenario, Forecast [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Long Term Purchase Commitment, Amount, Minimum | $ 20 | ||
Long-term Purchase Commitment, Amount | $ 25 |
Commitments and Contingencies
Commitments and Contingencies - Loss Contingencies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Jun. 10, 2014 | |
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual | $ 3 | |
In Flight Entertainment Systems Member | ||
Loss Contingencies [Line Items] | ||
Unrecorded Unconditional Purchase Obligations, Term | 7 years |
Financial Derivative Instrume33
Financial Derivative Instruments and Risk Management (Details) bbl in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)bbl | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)bbl | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)bbl | |
Derivative [Line Items] | |||||
Percentage Fuel Hedged - Fourth Quarter Current Year | 10.00% | 10.00% | |||
Interest expense | $ (23) | $ (28) | $ (72) | $ (85) | |
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | (5) | (5) | $ (22) | ||
Fuel Derivatives Member | |||||
Derivative [Line Items] | |||||
Derivative Asset | $ 6 | $ 6 | $ 22 | ||
Maximum Length of Time Hedged in Price Risk Cash Flow Hedge | 3 months | 12 months | |||
Barrels Of Fuel Covered Under Derivative Contracts | bbl | 480 | 480 | 1,920 | ||
Percentage of actual consumption hedged | 10.00% | 24.00% | 10.00% | 8.00% | |
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 | $ 0 | ||
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 | 0 | ||
Fuel Derivatives Member | Aircraft Fuel Expense [Member] | |||||
Derivative [Line Items] | |||||
Hedge losses recognized | (4) | $ (1) | (8) | $ (1) | |
Fuel Derivatives Member | Comprehensive Income [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (9) | $ 8 | $ 8 | $ (23) | |
Fuel [Member] | Jet Fuel Swap Agreements [Member] | |||||
Derivative [Line Items] | |||||
Percentage Fuel Hedged - Fourth Quarter Current Year | 10.00% | 10.00% | |||
Fuel [Member] | Jet Fuel Collar Agreement [Member] | |||||
Derivative [Line Items] | |||||
Percentage Fuel Hedged - Fourth Quarter Current Year | 0.00% | 0.00% | |||
Heating Oil [Member] | Heating Oil Collar Agreement [Member] | |||||
Derivative [Line Items] | |||||
Percentage Fuel Hedged - Fourth Quarter Current Year | 0.00% | 0.00% | |||
Prepaid Expenses and Other Current Assets [Member] | Fuel Derivatives Member | |||||
Derivative [Line Items] | |||||
Derivative Asset, Current | $ 6 | $ 6 | 22 | ||
Fair Value, Measurements, Recurring [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset | 6 | 6 | 22 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset | 6 | 6 | 22 | ||
Derivative Liability | 0 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Energy Related Derivative [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset | $ 0 | $ 0 | $ 0 |
Financial Derivative Instrume34
Financial Derivative Instruments and Risk Management (Details 2) bbl in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)bbl | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)bbl | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)bbl | |
Derivatives, Fair Value [Line Items] | |||||
Hedged volume (barrels, in thousands) | $ (5) | $ (5) | $ (22) | ||
Interest Expense | $ 23 | $ 28 | $ 72 | $ 85 | |
Fuel derivatives [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Maximum Length of Time Hedged in Price Risk Cash Flow Hedge | 3 months | 12 months | |||
Liability fair value recorded in other accrued liabilities(1) | bbl | 480 | 480 | 1,920 | ||
Prepaid Expenses and Other Current Assets [Member] | Fuel derivatives [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Current | $ 6 | $ 6 | $ 22 |
Financial Derivative Instrume35
Financial Derivative Instruments and Risk Management - Hedging Effectiveness (Details 3) - Fuel derivatives [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Percentage of actual consumption hedged | 10.00% | 24.00% | 10.00% | 8.00% |
Aircraft Fuel Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedge losses recognized | $ (4) | $ (1) | $ (8) | $ (1) |
Comprehensive Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Percentage of actual consumption economically hedged | $ (9) | $ 8 | $ 8 | $ (23) |
Financial Derivative Instrume36
Financial Derivative Instruments and Risk Management (Details 4) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Available-for-sale Securities | $ 163 | $ 335 |
Fuel Derivatives Member | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 6 | 22 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Collateral, Right to Reclaim Cash | $ 0 | $ 0 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | $ (2) | $ 0 | $ (3) | $ 0 | |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | 0 | 0 | 0 | 0 | |
Assets | |||||
Available-for-sale investment securities | 163 | 163 | $ 335 | ||
Liabilities | |||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 3 | $ (4) | (4) | $ 8 | |
Fair Value, Measurements, Recurring [Member] | |||||
Assets | |||||
Cash equivalents | 254 | 254 | 313 | ||
Available-for-sale investment securities | 163 | 163 | 335 | ||
Derivative Asset | 6 | 6 | 22 | ||
Assets, Total | 423 | 423 | 670 | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||||
Assets | |||||
Cash equivalents | 254 | 254 | 313 | ||
Available-for-sale investment securities | 0 | 0 | 115 | ||
Derivative Asset | 0 | 0 | 0 | ||
Assets, Total | 254 | 254 | 428 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||||
Assets | |||||
Cash equivalents | 0 | 0 | 0 | ||
Available-for-sale investment securities | 163 | 163 | 220 | ||
Derivative Asset | 6 | 6 | 22 | ||
Assets, Total | 169 | 169 | 242 | ||
Liabilities | |||||
Derivative Liability | 0 | ||||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||||
Assets | |||||
Cash equivalents | 0 | 0 | 0 | ||
Available-for-sale investment securities | 0 | 0 | 0 | ||
Derivative Asset | 0 | 0 | 0 | ||
Assets, Total | $ 0 | $ 0 | $ 0 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Event [Line Items] | |
Percentage of Eligible Pre-tax Profits the Company Contributes to Profit Sharing If Pretax Margin is at or below 18% | 10.00% |
Profit Sharing Calculation Trigger, Pretax Margin | 18.00% |
Percentage of Eligible Pre-tax Profits the Company Contributes to Profit Sharing If Pretax Margin is above 18% | 20.00% |