Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
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-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 321,859,269 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 7.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 303 | $ 433 |
Investment securities | 390 | 538 |
Receivables, less allowance (2017-$1; 2016-$5) | 245 | 172 |
Inventories, less allowance (2017-$14; 2016-$12) | 55 | 47 |
Prepaid expenses and other | 213 | 213 |
Total current assets | 1,206 | 1,403 |
PROPERTY AND EQUIPMENT | ||
Flight equipment | 8,980 | 7,868 |
Predelivery deposits for flight equipment | 204 | 223 |
Flight equipment, gross plus deposits | 9,184 | 8,091 |
Less accumulated depreciation | 2,125 | 1,823 |
Flight equipment net | 7,059 | 6,268 |
Other property and equipment | 1,041 | 972 |
Less accumulated depreciation | 405 | 345 |
Property plant and equipment other net | 636 | 627 |
Assets constructed for others | 561 | 561 |
Less accumulated depreciation | 207 | 185 |
Asset constructed for others net | 354 | 376 |
Total property and equipment, net | 8,049 | 7,271 |
OTHER ASSETS | ||
Investment securities | 2 | 90 |
Restricted cash | 56 | 62 |
Other | 468 | 497 |
Total other assets | 526 | 649 |
TOTAL ASSETS | 9,781 | 9,323 |
CURRENT LIABILITIES | ||
Accounts payable | 378 | 242 |
Air traffic liability | 1,215 | 1,120 |
Accrued salaries, wages and benefits | 313 | 342 |
Other accrued liabilities | 293 | 321 |
Current maturities of long-term debt and capital leases | 196 | 189 |
Total current liabilities | 2,395 | 2,214 |
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS | 1,003 | 1,195 |
CONSTRUCTION OBLIGATION | 441 | 457 |
DEFERRED TAXES AND OTHER LIABILITIES | ||
Deferred income taxes | 1,033 | 1,354 |
Other | 75 | 90 |
Total deferred taxes and other liabilities | 1,108 | 1,444 |
COMMITMENTS AND CONTINGENCIES (Notes 10 & 11) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.01 par value; 25 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value; 900 shares authorized, 418 and 414 shares issued and 321 and 337 shares outstanding at 2017 and 2016, respectively | 4 | 4 |
Treasury stock, at cost; 97 and 77 shares at 2017 and 2016, respectively | (890) | (500) |
Additional paid-in capital | 2,127 | 2,050 |
Retained earnings | 3,593 | 2,446 |
Accumulated other comprehensive income | 0 | 13 |
Total stockholders’ equity | 4,834 | 4,013 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 9,781 | $ 9,323 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for receivables | $ 1 | $ 5 |
Allowance for inventories | $ 14 | $ 12 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock shares issued | 418,000,000 | 414,000,000 |
Common stock, shares outstanding | 321,000,000 | 337,000,000 |
Treasury stock, shares | 96,624,790 | 77,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING REVENUES | |||
Passenger | $ 6,288 | $ 6,013 | $ 5,893 |
Other | 727 | 619 | 523 |
Total operating revenues | 7,015 | 6,632 | 6,416 |
OPERATING EXPENSES | |||
Aircraft fuel and related taxes | 1,363 | 1,074 | 1,348 |
Salaries, wages and benefits | 1,887 | 1,698 | 1,540 |
Landing fees and other rents | 397 | 357 | 342 |
Depreciation and amortization | 446 | 393 | 345 |
Aircraft rent | 100 | 110 | 122 |
Sales and marketing | 267 | 259 | 264 |
Maintenance, materials and repairs | 622 | 563 | 490 |
Other operating expenses | 933 | 866 | 749 |
Total operating expenses | 6,015 | 5,320 | 5,200 |
OPERATING INCOME | 1,000 | 1,312 | 1,216 |
OTHER INCOME (EXPENSE) | |||
Interest expense | (95) | (111) | (128) |
Capitalized interest | 10 | 8 | 8 |
Interest income and other | 6 | 7 | 1 |
Total other income (expense) | (79) | (96) | (119) |
INCOME BEFORE INCOME TAXES | 921 | 1,216 | 1,097 |
Income tax expense (benefit) | (226) | 457 | 420 |
NET INCOME | $ 1,147 | $ 759 | $ 677 |
EARNINGS PER COMMON SHARE | |||
Basic | $ 3.49 | $ 2.32 | $ 2.15 |
Diluted | $ 3.47 | $ 2.22 | $ 1.98 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Comprehensive Income (Loss) [Abstract] | |||
Net income | $ 1,147 | $ 759 | $ 677 |
Changes in fair value of derivative instruments, net of reclassifications into earnings (net of $(8), $8, and $38 of taxes in 2017, 2016 and 2015, respectively) | (13) | 16 | 60 |
Total other comprehensive income (loss) | (13) | 16 | 60 |
COMPREHENSIVE INCOME | $ 1,134 | $ 775 | $ 737 |
Consolidated Statement of Comp6
Consolidated Statement of Comprehensive Income (Loss) (Parantheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | |||
(net of $(40), $5, and $5 of taxes in 2014, 2013 and 2012, respectively) | $ (8) | $ 8 | $ 38 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 1,147 | $ 759 | $ 677 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income taxes | (313) | 270 | 377 |
Depreciation | 383 | 337 | 288 |
Amortization | 63 | 56 | 57 |
Stock-based compensation | 29 | 23 | 20 |
Collateral returned for derivative instruments | 0 | 0 | 52 |
Changes in certain operating assets and liabilities: | |||
(Increase) decrease in receivables | (50) | (21) | 11 |
Decrease (increase) in inventories, prepaid and other | 15 | 1 | (5) |
Increase in air traffic liability | 95 | 67 | 80 |
Increase in accounts payable and other accrued liabilities | 53 | 157 | 64 |
Other, net | (24) | (17) | (23) |
Net cash provided by operating activities | 1,398 | 1,632 | 1,598 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | (1,074) | (850) | (837) |
Predelivery deposits for flight equipment | (128) | (161) | (104) |
Purchase of held-to-maturity investments | (207) | (276) | (370) |
Proceeds from the maturities of held-to-maturity investments | 244 | 333 | 313 |
Purchase of available-for-sale securities | (245) | (597) | (372) |
Proceeds from the sale of available-for-sale securities | 444 | 517 | 242 |
Other, net | (9) | (11) | (6) |
Net cash used in investing activities | (975) | (1,045) | (1,134) |
Proceeds from: | |||
Issuance of common stock | 47 | 45 | 84 |
Repayment of: | |||
Long-term debt and capital lease obligations | (194) | (368) | (328) |
Acquisition of treasury stock | (390) | (134) | (241) |
Other, net | (16) | (15) | (2) |
Net cash used in financing activities | (553) | (472) | (487) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (130) | 115 | (23) |
Cash and cash equivalents at beginning of period | 433 | 318 | 341 |
Cash and cash equivalents at end of period | $ 303 | $ 433 | $ 318 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Treasury Stock, Shares, Acquired | 6.8 | |||||
Beginning Balance at Dec. 31, 2014 | $ (2,529) | $ (4) | $ 125 | $ (1,711) | $ (1,002) | $ 63 |
Beginning Balance, Shares at Dec. 31, 2014 | 369 | 59 | ||||
Net income | 677 | $ 0 | $ 0 | 0 | 677 | 0 |
Other comprehensive income | 60 | 0 | 0 | 0 | 0 | 60 |
Vesting of restricted stock units | (14) | $ 0 | $ (14) | 0 | 0 | 0 |
Vesting of restricted stock units, Shares | 2 | 1 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 59 | $ 0 | $ 0 | 59 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 5 | 0 | ||||
Exercise of stock options | 20 | 20 | 0 | 0 | ||
Stock compensation expense | $ 25 | $ 0 | $ 0 | 25 | 0 | 0 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 1.3 | 1 | 0 | |||
Stock issued under Crewmember stock purchase plan | $ (227) | $ 0 | $ 227 | 0 | 0 | 0 |
Shares repurchased under 2012 share repurchase plan, shares | 0 | 10 | ||||
Convertible debt redemption | 67 | $ 0 | $ 0 | 67 | 0 | 0 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 15 | 0 | ||||
Other | (14) | $ 0 | $ 0 | (14) | 0 | 0 |
Other, Shares | 0 | 0 | ||||
Ending Balance at Dec. 31, 2015 | 3,210 | $ 4 | $ (366) | 1,896 | 1,679 | (3) |
Ending Balance, Shares at Dec. 31, 2015 | 392 | 70 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 8 | 8 | ||||
Treasury Stock, Shares, Acquired | 5.8 | |||||
Net income | $ 759 | $ 0 | $ 0 | 0 | 759 | 0 |
Other comprehensive income | 16 | 0 | 0 | 0 | 0 | 16 |
Vesting of restricted stock units | (14) | $ 0 | $ (14) | 0 | 0 | 0 |
Vesting of restricted stock units, Shares | 1 | 1 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 10 | $ 0 | $ 0 | 10 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1 | 0 | ||||
Exercise of stock options | 23 | 23 | 0 | 0 | ||
Stock compensation expense | $ 35 | $ 0 | $ 0 | 35 | 0 | 0 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 2.2 | 2 | 0 | |||
Stock issued under Crewmember stock purchase plan | $ (120) | $ 0 | $ 120 | 0 | 0 | 0 |
Shares repurchased under 2012 share repurchase plan, shares | 0 | 6 | ||||
Convertible debt redemption | 86 | $ 0 | $ 0 | 86 | 0 | 0 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 18 | 0 | ||||
Ending Balance at Dec. 31, 2016 | $ 4,013 | $ 4 | $ (500) | 2,050 | 2,446 | 13 |
Ending Balance, Shares at Dec. 31, 2016 | 414 | 77 | ||||
Treasury Stock, Shares, Acquired | 18.7 | |||||
Net income | $ 1,147 | $ 0 | $ 0 | 0 | 1,147 | 0 |
Other comprehensive income | (13) | 0 | 0 | 0 | 0 | (13) |
Vesting of restricted stock units | (10) | $ 0 | $ (10) | 0 | 0 | 0 |
Vesting of restricted stock units, Shares | 1 | 1 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 4 | $ 0 | $ 0 | 4 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0.4 | 0 | 0 | |||
Exercise of stock options | $ 29 | 29 | 0 | 0 | ||
Stock compensation expense | $ 44 | $ 0 | $ 0 | 44 | 0 | 0 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 2.5 | 3 | 0 | |||
Stock issued under Crewmember stock purchase plan | $ (380) | $ 0 | $ 380 | 0 | 0 | 0 |
Shares repurchased under 2012 share repurchase plan, shares | 0 | 19 | ||||
Ending Balance at Dec. 31, 2017 | $ 4,834 | $ 4 | $ (890) | $ 2,127 | $ 3,593 | $ 0 |
Ending Balance, Shares at Dec. 31, 2017 | 418 | 97 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation JetBlue provides air transportation services across the United States, the Caribbean and Latin America. Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S., or U.S. GAAP, and include the accounts of JetBlue and our subsidiaries. All majority-owned subsidiaries are consolidated with all intercompany transactions and balances being eliminated. Use of Estimates The preparation of our consolidated financial statements and accompanying notes in conformity with U.S. GAAP require us to make certain estimates and assumptions. Actual results could differ from those estimates. Fair Value The Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board’s, or FASB, Accounting Standards Codification ™ , or Codification, establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. This topic clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The topic also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs. Refer to Note 13 for more information. Cash and Cash Equivalents Our cash and cash equivalents include short-term, highly liquid investments which are readily convertible into cash. These investments include money market securities and commercial papers with maturities of three months or less when purchased. Restricted Cash Restricted cash primarily consists of security deposits, funds held in escrow for estimated workers’ compensation obligations and performance bonds for aircraft and facility leases. Accounts and Other Receivables Accounts and other receivables are carried at cost. They primarily consist of amounts due from credit card companies associated with sales of tickets for future travel. We estimate an allowance for doubtful accounts based on known troubled accounts, if any, and historical experience of losses incurred. Investment Securities Investment securities consist of available-for-sale investment securities and held-to-maturity investment securities. When sold, we use a specific identification method to determine the cost of the securities. Available-for-sale investment securities Our available-for-sale investment securities include highly liquid investments such as certificates of deposits with maturities between three and twelve months which are stated at fair value. Held-to-maturity investment securities Our held-to-maturity investments consist of investment-grade interest bearing instruments, primarily treasury notes and bills, which are stated at amortized cost. We do not intend to sell these investment securities and the contractual maturities are not greater than 24 months. Those with maturities less than twelve months are included in short-term investments on our consolidated balance sheets. Those with remaining maturities in excess of twelve months are included in long-term investments on our consolidated balance sheets. We did not record any material gains or losses on these securities during the years ended December 31, 2017 , 2016 or 2015 . The estimated fair value of these investments approximated their carrying value as of December 31, 2017 and 2016 . The carrying values of investment securities consisted of the following at December 31, 2017 and 2016 (in millions): 2017 2016 Available-for-sale securities Time deposits $ 130 $ 160 Debt Securities 6 — Treasury bills — 115 Commercial paper — 60 Total available-for-sale securities 136 335 Held-to-maturity securities Treasury notes 220 283 Corporate bonds 36 10 Total held-to-maturity securities 256 293 TOTAL INVESTMENT SECURITIES $ 392 $ 628 Derivative Instruments Derivative instruments, including fuel hedge contracts, fuel basis swap agreements and interest rate swap agreements are stated at fair value, net of any collateral postings. Derivative instruments are included in other current assets and other current liabilities in our consolidated balance sheets. Refer to Note 12 for more information. Inventories Inventories consist of expendable aircraft spare parts and supplies that are stated at average cost as well as aircraft fuel that is accounted for on a first-in, first-out basis. These items are expensed when used or consumed. An allowance for obsolescence on aircraft spare parts is provided over the remaining useful life of the related aircraft fleet. Property and Equipment We record our property and equipment at cost and depreciate these assets on a straight-line basis over their estimated useful lives to their estimated residual values. We capitalize additions, modifications enhancing the operating performance of our assets and the interest related to predelivery deposits used to acquire new aircraft and the construction of our facilities. Estimated useful lives and residual values for our property and equipment are as follows: Property and Equipment Type Estimated Useful Life Residual Value Aircraft 25 years 20 % In-flight entertainment systems 5-10 years 0 % Aircraft parts Fleet life 10 % Flight equipment leasehold improvements Lower of lease term or economic life 0 % Ground property and equipment 2-10 years 0 % Leasehold improvements—other Lower of lease term or economic life 0 % Buildings on leased land Lease term 0 % Property under capital leases is initially recorded at an amount equal to the present value of future minimum lease payments which is computed on the basis of our incremental borrowing rate or, when known, the interest rate implicit in the lease. Amortization of property under capital leases is on a straight-line basis over the expected useful life and is included in depreciation and amortization expense. We record impairment losses on long-lived assets used in operations when events and circumstances indicate the assets may be impaired and the undiscounted future cash flows estimated to be generated by the assets are less than the assets’ net book value. If impairment occurs, the loss is measured by comparing the fair value of the asset to its carrying amount. Impairment losses are recorded in depreciation and amortization expense. Software We capitalize certain costs related to the acquisition and development of computer software. We amortize these costs using the straight-line method over the estimated useful life of the software, which is generally between five and ten years. The net book value of computer software, which is included in other assets on our consolidated balance sheets, was $92 million and $97 million as of December 31, 2017 and 2016 , respectively. Amortization expense related to computer software was $41 million , $32 million and $34 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , amortization expense related to computer software is expected to be approximately $37 million in 2018 , $28 million in 2019 , $11 million in 2020 , $7 million in 2021 , and $4 million in 2022 . Intangible Assets Our intangible assets consist primarily of acquired take-off and landing slots, or Slots, at certain domestic airports. Slots are the rights to take-off or land at a specific airport during a specific time period of the day and are a means by which airport capacity and congestion can be managed. We account for Slots at High Density Airports, including Reagan National Airport in Washington, D.C., LaGuardia Airport, and JFK Airport, both in New York City as indefinite life intangible assets which results in no amortization expense. Slots at other airports are amortized on a straight-line basis over their expected useful lives of up to 15 years . We evaluate our intangible assets for impairment at least annually or when events and circumstances indicate they may be impaired. Indicators include operating or cash flow losses as well as significant decreases in market value. As of December 31, 2017 and 2016 , our intangible assets for Slots at High Density Airports with indefinite lives was $139 million . Passenger Revenue Passenger revenue is recognized when the transportation is provided or after the ticket or passenger credit issued upon payment of a change fee expires. It is recognized net of the taxes that we are required to collect from our Customers, including federal transportation taxes, security taxes and airport facility charges. Tickets sold but not yet recognized as revenue and unexpired credits are included in air traffic liability on the consolidated balance sheets. Loyalty Program We account for our customer loyalty program, TrueBlue ® , by recording a liability for the estimated incremental cost of outstanding points earned from JetBlue purchases that we expect to be redeemed. The estimated cost includes incremental fuel, insurance, passenger food and supplies, in-flight entertainment and reservation costs. We adjust this liability, which is included in air traffic liability, based on points earned and redeemed, points that will ultimately go unused, or breakage, changes in the estimated incremental costs associated with providing travel and changes in the TrueBlue ® program. This liability was $37 million and $30 million as of December 31, 2017 and 2016, respectively. We estimate breakage based on historical point redemptions. In June 2013, we amended the program so points earned by members never expire. Customers earn points based on the value paid for a trip rather than the length of the trip, and Customers can pool points between small groups of people, branded as Family Pooling ™ . We believe Family Pooling ™ has not had a material impact on the breakage calculation. TrueBlue ® points can also be sold to participating companies, including credit card and car rental companies. These sales are accounted for as multiple-element arrangements. Upon the re-launch of the TrueBlue ® program in November 2009, we extended our co-branded credit card and membership rewards participation agreements with American Express ® . Under this agreement, which ended in 2015, we identified two elements, with one element representing the fair value of the travel that will ultimately be provided when the points are redeemed and the other consisting of marketing related activities that we conduct with the participating company. The fair value of the transportation portion of these point sales is deferred and recognized as passenger revenue when transportation is provided. The marketing portion, which is the excess of the total sales proceeds over the estimated fair value of the transportation to be provided, is recognized in other revenue when the points are sold. In 2015, we announced a co-branded credit card partnership with Barclaycard ® , which commenced in March 2016. The agreement is a multiple-element arrangement subject to Accounting Standards Update, or ASU, 2009-13, Multiple Deliverable Revenue Arrangements. ASU 2009-13 requires the allocation of the overall consideration received to each deliverable using the estimated selling price. We identified the following deliverables: air transportation; use of the JetBlue brand name and access to our frequent flyer customer lists; advertising; and other airline benefits. In determining the estimated selling price, JetBlue considered multiple inputs, methods and assumptions, including: discounted cash flows; estimated equivalent ticket value, net of fulfillment discount; points expected to be awarded and redeemed; estimated annual spending by cardholder; estimated annual royalty for use of JetBlue's frequent flyer customer lists; and estimated utilization of other airline benefits. The overall consideration received is allocated to each deliverable based on their relative selling prices. The air transportation element is deferred and recognized as passenger revenue when the points are utilized. The other elements are recognized as other revenue when earned. TrueBlue ® points sold to participating companies which are not redeemed are recognized as revenue when management determines the probability of redemption is remote. Deferred revenue was $263 million and $211 million at December 31, 2017 and 2016, respectively. Airframe and Engine Maintenance and Repair Regular airframe maintenance for owned and leased flight equipment is charged to expense as incurred unless covered by a third-party long-term flight hour service agreement. We have separate service agreements in place covering scheduled and unscheduled repairs of certain airframe line replacement unit components as well as the engines in our fleet. These agreements, whose original terms generally range from 10 to 15 years, require monthly payments at rates based either on the number of cycles each aircraft was operated during each month or the number of flight hours each engine was operated during each month, subject to annual escalations. These power by the hour agreements transfer certain risks, including cost risks, to the third-party service providers. They generally fix the amount we pay per flight hour or number of cycles in exchange for maintenance and repairs under a predefined maintenance program, which are representative of the time and materials that would be consumed. These costs are expensed as the related flight hours or cycles are incurred. Advertising Costs Advertising costs, which are included in sales and marketing, are expensed as incurred. Advertising expense was $66 million in 2017 , $65 million in 2016 and $69 million in 2015 . Share-Based Compensation We record compensation expense for share-based awards based on the grant date fair value of those awards. Share-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis. Income Taxes We account for income taxes utilizing the liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the tax and financial statement reporting bases of assets and liabilities. A valuation allowance for deferred tax assets is provided unless realizability is judged by us to be more likely than not. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. New Accounting Standards New accounting rules and disclosure requirements can impact our financial results and the comparability of our financial statements. The authoritative literature which has recently been issued and that we believe will impact our consolidated financial statements is described below. There are also several new proposals under development. If and when enacted, these proposals may have a significant impact on our financial statements. 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 the most significant impact will be our accounting for leased aircraft and other leasing agreements, requiring the presentation of those leases with durations of greater than twelve months on the balance sheet. See Note 3 with respect to our operating leases not currently presented on the balance sheet. The amendments are effective for fiscal years beginning after December 15, 2018 and includes 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 includes interim periods within those years. 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. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year to interim and annual reporting periods beginning after December 15, 2017 and permitted early adoption of the standard, but not prior to December 15, 2016. We have closely assessed the new standard and monitored FASB activity, including the interpretations by the FASB Transition Resource Group for Revenue Recognition throughout 2017. In the fourth quarter of 2017, we substantially completed our assessment of the new standard, and we expect to adopt the requirements of ASU 2014-09 as of January 1, 2018 utilizing the full retrospective method of transition. We will record a cumulative adjustment to retained earnings as of January 1, 2016 for the impacts of the new accounting standard. For JetBlue, we believe the most significant impact of the new standard relates to the accounting for our TrueBlue® Loyalty Program. The standard eliminates the incremental cost method for loyalty program accounting which we previously used. We will be required to re-value the liability for points earned on qualifying JetBlue purchases using a relative fair value approach. The application of a relative fair value approach is expected to increase our air traffic liability by approximately $270 million to $300 million , net of breakage, as of the beginning of the retrospective reporting period. In addition, we currently have a liability for outstanding points that were earned in conjunction with our previous co-branded credit card agreement 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 is expected to decrease the relative value allocated to the transportation performance obligation and will result in a decrease of approximately $160 million to $170 million , net of breakage, to the liability as of the beginning of the retrospective reporting period. Under the new standard, passenger revenue from unused tickets and passenger credits will be recognized in proportion to flown revenue based on estimates of expected expiration or when the likelihood of the Customer exercising their remaining rights becomes remote. Currently, recognition of passenger revenue was at expiration. This change will increase passenger revenue by approximately $20 million to $25 million . 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. As a result, we expect that these revenues, which were approximately $470 million and $425 million , in 2017 and 2016, respectively, will be reclassified from other revenue under the current presentation to passenger revenue after adoption. The estimated impact of this ASU is expected to be less than one percent reduction to Operating revenues for both full year 2017 and 2016, and do not expect it to impact any of the Company's existing debt covenants. |
Long-term Debt, Short-term Borr
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt, Short-term Borrowings and Capital Lease Obligations | Long-term Debt, Short-term Borrowings and Capital Lease Obligations Long-term debt and capital lease obligations and the related weighted average interest rate at December 31, 2017 and 2016 consisted of the following (in millions): 2017 2016 Secured Debt Floating rate equipment notes, due through 2025 (1) $ 153 4.7 % $ 173 4.2 % Fixed rate enhanced equipment notes, due through 2023 (2) 171 4.5 % 189 4.5 % Fixed rate equipment notes, due through 2026 716 5.4 % 850 5.5 % Fixed rate specialty bonds, due through 2036 (3) 43 4.9 % 43 4.9 % Capital Leases (4) 124 4.5 % 140 4.3 % Total debt and capital lease obligations 1,207 1,395 Less: Current maturities (196 ) (189 ) Less: Debt acquisition cost (8 ) (11 ) Long-term debt and capital lease obligations $ 1,003 $ 1,195 (1) Interest rates adjust quarterly or semi-annually based on LIBOR, plus a margin . (2) In March 2014, we completed a private placement of $226 million in pass-through certificates, Series 2013-1. The certificates were issued by a pass-through trust and are not obligations of JetBlue. The proceeds from the issuance of the pass-through certificates were used to purchase equipment notes issued by JetBlue and secured by 14 of our previously unencumbered aircraft. Principal and interest are payable semi-annually , starting in September 2014. (3) In November 2005, the Greater Orlando Aviation Authority, or GOAA, issued special purpose airport facilities revenue bonds to JetBlue as reimbursement for certain airport facility construction and other costs. In April 2013, GOAA issued $42 million in special purpose airport facility revenue bonds to refund the bonds issued in 2005. The proceeds from the refunded bonds were loaned to us and we recorded the issuance of $43 million , net of $1 million premium, as long term debt on our consolidated balance sheets. In December 2006, the New York City Industrial Development Agency issued special facility revenue bonds for JFK to us as reimbursement to us for certain airport facility construction and other costs. We recorded the principal amount of the bond, net of discounts, as long-term debt on our consolidated balance sheets because we have issued a guarantee of the debt payments on the bond. This fixed rate debt is secured by leasehold mortgages of our airport facilities. During June 2015, we prepaid the full $32 million principal outstanding on the JFK special facility revenue bonds. (4) As of December 31, 2017 and 2016 , four capital leased Airbus A320 aircraft and two capital leased Airbus A321 aircraft were included in property and equipment at a cost of $253 million with accumulated amortization of $64 million and $56 million , respectively. The future minimum lease payments under these non-cancelable leases are $23 million in 2018 , $23 million in 2019 , $35 million in 2020 , $39 million in 2021 , $9 million in 2022 and $14 million in the years thereafter. Included in the future minimum lease payments is $20 million representing interest, resulting in a present value of capital leases of $124 million with a current portion of $17 million and a long-term portion of $107 million . As of December 31, 2017 , we were in compliance with all of our covenants in relation to our debt and lease agreements. Maturities of long-term debt and capital leases for the next five years are as follows (in millions): Year Maturities 2018 $ 194 2019 215 2020 179 2021 164 2022 142 Thereafter 305 Aircraft, engines, and other equipment and facilities having a net book value of $2.3 billion at December 31, 2017 were pledged as security under various financing arrangements. Cash payments for interest related to debt and capital lease obligations, net of capitalized interest, aggregated $60 million , $78 million and $93 million in 2017 , 2016 and 2015 , respectively. The carrying amounts and estimated fair values of our long-term debt at December 31, 2017 and 2016 were as follows (in millions): December 31, 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 46 42 45 Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 169 178 188 197 Floating rate equipment notes, due through 2025 152 159 171 179 Fixed rate equipment notes, due through 2026 712 771 843 915 Total (1) $ 1,075 $ 1,154 $ 1,244 $ 1,336 (1) Total excludes capital lease obligations of $124 million and $140 million for December 31, 2017 and 2016 , respectively. The estimated fair values of our publicly held long-term debt are classified as Level 2 in the fair value hierarchy. The fair values of our EETC transactions and our special facility bonds were based on quoted market prices in markets with low trading volumes. The fair value of our 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 13 for additional information on fair value. We have financed certain aircraft with EETCs as one of the benefits is being able to finance several aircraft at one time, rather than individually. The structure of EETC financing is that we create pass-through trusts in order to issue pass-through certificates. The proceeds from the issuance of these certificates are then used to purchase equipment notes which are issued by us and are secured by our aircraft. These trusts meet the definition of a variable interest entity, or VIE, as defined in the Consolidations topic of the Codification, and must be considered for consolidation in our consolidated financial statements. Our assessment of the EETCs considers both quantitative and qualitative factors including the purpose for which these trusts were established and the nature of the risks in each. The main purpose of the trust structure is to enhance the credit worthiness of our debt obligation through certain bankruptcy protection provisions, liquidity facilities and lower our total borrowing cost. We concluded that we are not the primary beneficiary in these trusts due to our involvement in them being limited to principal and interest payments on the related notes, the trusts were not set up to pass along variability created by credit risk to us and the likelihood of our defaulting on the notes. Therefore, we have not consolidated these trusts in our consolidated financial statements. Short-term Borrowings We have several lines of credit which bear interest at a floating rate based upon LIBOR plus a margin range of between 1.0% and 2.0% . Citibank Line of Credit We have a revolving Credit and Guaranty Agreement with Citibank, N.A. as the administrative agent for up to approximately $425 million . The term of the facility runs through April 2021. Borrowings under the Credit and Guaranty Agreement bear interest at a variable rate equal to LIBOR, plus a margin . The Credit and Guaranty Agreement is 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 a means by which airport capacity and congestion can be managed. The Credit and Guaranty Agreement 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 years ended December 31, 2017 and 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 years ended December 31, 2017 and 2016, we did not have a balance outstanding or borrowings under this line of credit. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Operating Leases | Operating Leases We lease aircraft, all of our facilities at the airports we serve, office space and other equipment. These leases have varying terms and conditions, with some having early termination clauses which we determine to be the lease expiration date. The length of the lease depends upon the type of asset being leased, with the latest lease expiring in 2035 . Total rental expense for all of our operating leases was $315 million in 2017 , $294 million in 2016 and $298 million in 2015 . As of December 31, 2017 , we have approximately $30 million in assets that serve as collateral for letters of credit. These letters of credit relate to a certain number of our leases and are included in restricted cash. As of December 31, 2017 , 44 of the 243 aircraft in our fleet were leased under operating leases, with lease expiration dates ranging from 2018 to 2028 . None of the 44 aircraft operating leases have variable rate rent payments based on LIBOR . Leases for 40 of our aircraft can generally be renewed at rates based on fair market value at the end of the lease term for one or two years. We have purchase options for 42 of our aircraft leases at the end of their lease term. These purchase options are at fair market value and have a one-time option during the term at fixed amounts that were expected to approximate the fair market value at lease inception. We bought out the operating leases on three Airbus A320 aircraft for approximately $51 million , nine Airbus A320 aircraft for approximately $164 million , and six Airbus 320 aircraft for approximately $110 million , during 2017, 2016, and 2015 respectively. Future minimum lease payments under noncancelable operating leases, including those described above, with initial or remaining terms in excess of one year at December 31, 2017 , are as follows (in millions): Aircraft Other Total 2018 $ 71 $ 99 $ 170 2019 59 91 150 2020 57 74 131 2021 51 66 117 2022 45 62 107 Thereafter 139 378 517 Total minimum operating lease payments $ 422 $ 770 $ 1,192 In the past we have entered into sale-leaseback arrangements with a third party lender for 40 of our operating aircraft. The sale-leasebacks occurred simultaneously with the delivery of the related aircraft to us from their manufacturers. Each sale-leaseback transaction was structured with a separate trust set up by the third party lender, the assets of which consist of the one aircraft initially transferred to it following the sale by us and the subsequent lease arrangement with us. Because of their limited capitalization and the potential need for additional financial support, these trusts are VIEs as defined in the Consolidations topic of the Codification and must be considered for consolidation in our financial statements. Our assessment of each trust considers both quantitative and qualitative factors, including whether we have the power to direct the activities and to what extent we participate in the sharing of benefits and losses of the trusts. JetBlue does not retain any equity interests in any of these trusts and our obligations to them are limited to the fixed rental payments we are required to make to them. These were approximately $316 million as of December 31, 2017 and are reflected in the future minimum lease payments in the table above. Our only interest in these entities is the purchase options to acquire the aircraft as specified above. Since there are no other arrangements, either implicit or explicit, between us and the individual trusts that would result in our absorbing additional variability from the trusts, we concluded we are not the primary beneficiary of these trusts. We account for these leases as operating leases, following the appropriate lease guidance as required by the Leases topic in the Codification. |
JFK Terminal 5
JFK Terminal 5 | 12 Months Ended |
Dec. 31, 2017 | |
JFK Terminal Five [Abstract] | |
JFK Terminal 5 | JFK Terminal 5 We operate out of T5 at JFK and our occupancy is governed by various lease agreements with the PANYNJ. Under the terms of the facility lease agreement we were responsible for the construction of the 635,000 square foot 26 -gate terminal, a parking garage, roadways and an AirTrain Connector, all of which are owned by the PANYNJ and collectively referred to as the T5 Project. In 2014, we completed construction of our an international arrivals facility and additional gates, T5i. T5i includes six international arrival gates comprised of three new gates and three converted gates from T5, as well as an international arrivals hall with full U.S. Customs and Border Protection services. We executed an extension to the original T5 lease in 2013. The lease, as amended, now incorporates a total of approximately 19 acres of space for our T5 facilities and ends on the 28th anniversary of the date of beneficial occupancy of T5i. We have the option to terminate the agreement in 2033 , five years prior to the end of the original scheduled lease term of October 2038. We are responsible for various payments under the leases, including ground rents which are reflected in the future minimum lease payments table in Note 3, and facility rents which are included below. The facility rents are based upon the number of passengers enplaned out of the terminal, subject to annual minimums. We were considered the owner of the T5 Project for financial reporting purposes only and have been required to reflect an asset and liability for the T5 Project on our consolidated balance sheets since construction commenced in 2005. The cost of the T5 Project and the related liability are being accounted for as a financing obligation. Our construction of T5i is accounted for at cost with no financing obligation. Total costs incurred for the elements of the T5 Project were $637 million , of which $561 million is classified as Assets Constructed for Others and the remaining $76 million is classified as leasehold improvements in our consolidated balance sheets. Assets Constructed for Others are being amortized over the shorter of the 25 year non-cancelable lease term or their economic life. We recorded amortization expense of $22 million , $23 million , and $23 million during in 2017 , 2016 and 2015 , respectively. Our total expenditures relating to T5i were approximately $207 million , all of which were incurred prior to 2016 and are classified as leasehold improvements in our consolidated balance sheets. The PANYNJ has reimbursed us for the amounts currently included in Assets Constructed for Others. These reimbursements and related interest are reflected as Construction Obligation in our consolidated balance sheets. When the facility rents are paid they are treated as a debt service on the Construction Obligation, with the portion not relating to interest reducing the principal balance. Minimum estimated facility payments including escalations associated with the facility lease are estimated to be $40 million per year in 2018 through 2022 and $456 million thereafter. The portion of these scheduled payments serving to reduce the principal balance of the Construction Obligation is $17 million in 2018 , $18 million in 2019 , $19 million in 2020 , $20 million in 2021 and $21 million in 2022 . Payments could exceed these amounts depending on future enplanement levels at JFK. Scheduled facility payments representative of interest totaled $24 million in 2017 , $25 million in 2016 and $25 million in 2015 . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity In September 2012, our Board of Directors authorized a share repurchase program for up to 25 million shares of common stock over a 5 year period. On June 16, 2015, we entered into an accelerated share repurchase agreement, or ASR, with Goldman, Sachs & Co., or Goldman Sachs, paying $150 million for an initial delivery of approximately 6.1 million shares. The terms of the ASR concluded on September 15, 2015 with Goldman Sachs delivering approximately 0.7 million additional shares to JetBlue. A total of approximately 6.8 million shares was repurchased under this ASR, with an average price paid per share of $22.06 . In September 2015, JetBlue entered into an agreement for the repurchase of up to 778,460 shares per day, structured pursuant to Rule 10b5-1 and 10b-18 under the Securities Exchange Act of 1934 as amended, with a maximum of 3 million shares to be repurchased. The repurchases commenced on October 30, 2015 and terminated on November 18, 2015 with 3 million shares repurchased for approximately $77 million . On September 10, 2015, our Board of Directors authorized a share repurchase program for up to $250 million worth of shares of common stock over a three year period beginning on January 1, 2016. On December 7, 2016, the Board approved certain changes to our share repurchase program, or the 2016 Repurchase Authorization, to increase the aggregate authorization in the value of the program, to up to $500 million worth of shares, and extended the term of the program through December 31, 2019 . The program includes authorization for repurchases in open market transactions pursuant to Rules 10b-18 and/or 10b5-1 of the Securities and Exchange Act of 1934, as amended and/or one or more accelerated stock repurchase programs through privately-negotiated accelerated stock repurchase transactions. On November 7, 2016, we entered into an ASR agreement with Goldman Sachs paying $60 million for an initial delivery of approximately 2.7 million shares. The terms of the ASR concluded on December 29, 2016 with Goldman Sachs delivering approximately 0.2 million additional shares to JetBlue. A total of approximately 2.9 million shares was repurchased under this ASR, with an average price paid per share of $20.74 . Also on November 7, 2016, we entered into a separate ASR agreement with Morgan Stanley & Co. LLC, or Morgan Stanley, paying $60 million for an initial delivery of approximately 2.7 million shares. The terms of the ASR concluded on December 30, 2016 with Morgan Stanley delivering approximately 0.2 million additional shares to JetBlue. A total of approximately 2.9 million shares was repurchased under this ASR, with an average price paid per share of $20.93 . On March 6, 2017, JetBlue entered into an ASR agreement with Barclays Bank PLC, or Barclays, paying $100 million for an initial delivery of approximately 4.1 million shares. The terms of the ASR concluded on April 24, 2017 with Barclays delivering approximately 0.8 million additional shares to JetBlue. A total of 4.9 million shares, at an average price of $20.23 per share, were repurchased under the agreement. On April 27, 2017, JetBlue entered into an ASR agreement with Goldman Sachs, paying $150 million for an initial delivery of approximately 5.4 million shares. The terms of the ASR concluded on July 24, 2017 with Goldman Sachs delivering approximately 1.4 million additional shares to JetBlue. A total of 6.8 million shares, at an average price of $21.99 per share, were repurchased under the agreement. On September 11, 2017, JetBlue entered into an ASR agreement with Morgan Stanley, paying $130 million for an initial delivery of approximately 5.4 million shares. The terms of the ASR concluded on September 26, 2017 with Morgan Stanley delivering approximately 1.5 million additional shares to JetBlue. A total of 6.9 million shares, at an average price of $18.86 per share, were repurchased under the agreement. The Morgan Stanley ASR completed our 2016 Repurchase Authorization. The total shares purchased by JetBlue under each of the ASRs in 2017, 2016 and 2015 were based on the volume weighted average prices of JetBlue's common stock during the terms of the respective agreements. On December 8, 2017 , the Board of Directors approved a two year share repurchase authorization starting on January 1, 2018 , of up to $750 million worth of shares. The authorization can be executed through repurchases in open market transactions pursuant to Rules 10b-18 and/or 10b5-1 of the Securities and Exchange Act of 1934, as amended, and/or one or more privately-negotiated accelerated stock repurchase transactions. As of December 31, 2017 , we had a total of 26.6 million shares of our common stock reserved for issuance. These shares are primarily related to our equity incentive plans. Refer to Note 7 for further details on our share-based compensation. As of December 31, 2017 , we had a total of 96.6 million shares of treasury stock, the majority of which relate to shares repurchased under our share repurchase program and the return of borrowed shares under our share lending agreement with Morgan Stanley which was terminated in January 2016. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table shows how we computed basic and diluted earnings per common share for the years ended December 31 (dollars and share data in millions): 2017 2016 2015 Numerator: Net income $ 1,147 $ 759 $ 677 Effect of dilutive securities: Interest on convertible debt, net of income taxes and profit sharing — 2 4 Net income applicable to common stockholders after assumed conversions for diluted earnings per share $ 1,147 $ 761 $ 681 Denominator: Weighted average shares outstanding for basic earnings per share 328.7 326.5 315.1 Effect of dilutive securities: Employee stock options and restricted stock units 1.7 2.1 2.8 Convertible debt — 13.6 26.9 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share 330.4 342.2 344.8 As of December 31, 2015 , a total of approximately 1.4 million shares of our common stock, which were lent to Morgan Stanley, our share borrower pursuant to the terms of our share lending agreement were issued and outstanding for corporate law purposes, but were returned during January 2016. Holders of the borrowed shares had all the rights of a holder of our common stock. However, because the share borrower had to return all borrowed shares to us, or identical shares or, in certain circumstances of default by the counterparty, the cash value thereof, the borrowed shares were not considered outstanding for the purpose of computing and reporting basic or diluted earnings per share. During 2016 holders voluntarily converted approximately $86 million in principal amount of the 6.75% Series B convertible debentures. As a result, we issued 17.6 million shares of our common stock. During 2015 holders voluntarily converted approximately $68 million in principal amount of the 5.5% Series B convertible debentures. As a result, we issued 15.2 million shares of our common stock. As discussed in Note 5, JetBlue entered into ASRs in 2017, 2016 and 2015 and purchased approximately 18.7 million , 5.8 million , and 6.8 million shares, respectively, for $380 million , $120 million and $150 million , respectively. The number of shares repurchased are based on the volume weighted average prices of JetBlue's common stock during the term of the ASR agreements. JetBlue also repurchased 3 million shares pursuant to Rule 10b5-1 and 10b-18 under the Securities Exchange Act of 1934 as amended, during the fourth quarter of 2015. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We have various equity incentive plans under which we have granted stock awards to our eligible Crewmembers and members of our Board of Directors. These include the JetBlue Airways Corporation Restated and Amended 2002 Stock Incentive Plan, or 2002 Plan, which was replaced by the JetBlue Airways Corporation 2011 Incentive Compensation Plan, or 2011 Plan. We additionally have a Crewmember Stock Purchase Plan, or CSPP, that is available to all eligible Crewmembers. Both the 2011 Plan and CSPP were amended in 2015 by Shareholders at our annual meeting. Unrecognized stock-based compensation expense, which was approximately $21.6 million as of December 31, 2017 , related to a total of 2.1 million unvested restricted stock units, or RSUs, performance stock units, or PSUs, and deferred stock units, or DSUs, under our 2011 Plan. We expect to recognize this stock-based compensation expense over a weighted average period of approximately one year. The total stock-based compensation expense for the years ended December 31, 2017 , 2016 and 2015 was $29 million , $23 million , and $20 million , respectively. 2011 Incentive Compensation Plan At our Annual Shareholders Meeting held on May 26, 2011, our Shareholders approved the JetBlue Airways Corporation 2011 Incentive Compensation Plan. This replaced the Restated and Amended 2002 Stock Incentive Plan, or 2002 Plan, which was set to expire at the end of 2011. Upon inception, the 2011 Plan had 15.0 million shares of our common stock reserved for issuance. The 2011 Plan, by its terms, will terminate no later than May 2021. RSUs vest in annual installments over three years which can be accelerated upon the occurrence of a change in control. Under this plan, we grant RSUs to certain Crewmembers and members of our Board of Directors. Our policy is to grant RSUs based on the market price of the underlying common stock on the date of grant. Under this plan we grant DSUs to members of our Board of Directors and PSUs to certain members of our executive leadership team. The 2011 Plan was amended and restated effective January 1, 2014, to include the definition of retirement eligibility. Once a Crewmember meets the definition they will continue to vest their shares as if they remained employed by JetBlue, regardless of their actual employment status with the Company. In accordance with the Compensation-Stock Compensation topic of the Codification, the grant’s explicit service condition is non-substantive and the grant has effectively vested at the time retirement eligibility is met. At our Annual Shareholders Meeting held on May 21, 2015, our Shareholders approved amendments to the 2011 Plan increasing the number of shares of Company common stock that remain available for issuance under the plan by 7.5 million . Restricted Stock Units The following is a summary of RSU activity under the 2011 Plan for the year ended December 31, 2017 (in millions except per share data): Shares Weighted Average Grant Date Fair Value Nonvested at beginning of year 1.8 $16.77 Granted 0.9 19.76 Vested (1.0 ) 14.04 Forfeited (0.1 ) 19.69 Nonvested at end of year 1.6 $20.14 The total intrinsic value, determined as of the date of vesting, for all RSUs that vested and converted to shares of common stock during the year ended December 31, 2017 , 2016 and 2015 was $20 million , $30 million and $33 million , respectively. The weighted average grant-date fair value of share awards during the years ended December 31, 2017 , 2016 and 2015 was $19.76 , $22.95 , and $17.09 , respectively. The vesting period for DSUs under the 2011 Plan is either one or three years of service. Once vested, shares are issued six months and one day following a Director’s departure from our Board of Directors. During the years ended December 31, 2017 , 2016 and 2015 , we granted a nominal amount of DSUs, almost all of which remain outstanding at December 31, 2017 . In 2017 , 2016 and 2015 , we granted a nominal amount of PSUs to members of our executive leadership team which are based upon certain performance criteria. Amended and Restated 2002 Stock Incentive Plan The 2002 Plan included stock options issued during 1999 through 2001 under a previous plan as well as all options issued from 2002 through adoption of the 2011 Plan. It provided for incentive and non-qualified stock options and RSUs to be granted to certain Crewmembers and members of our Board of Directors. Additionally, it provided for DSUs to be granted to members of our Board of Directors. The 2002 Plan became effective following our initial public offering in April 2002. We began issuing RSUs in 2007 and DSUs in 2008. Prior to 2011, the DSUs vested immediately upon being granted. The RSUs vested in annual installments over three years which could be accelerated upon the occurrence of a change in control as defined in the 2002 Plan. Our policy to grant RSUs was based on the market price of the underlying common stock on the date of grant. No additional grants were made from this plan after the adoption of the 2011 Plan. Since December 31, 2014, there were no RSUs outstanding under the 2002 Plan. Stock Options All options issued under the 2002 Plan expire ten years from the date of grant, with the last options vesting in 2012. Our policy is to grant options with an exercise price equal to the market price of the underlying common stock on the date of grant. The following is a summary of stock option activity for the year ended December 31, 2017 (in millions except per share data): Shares Weighted Average Grant Date Fair Value Outstanding at beginning of year 0.4 $10.90 Exercised (0.4 ) 10.90 Outstanding at end of year — — Vested at end of year — — The total intrinsic value, determined as of the date of exercise, of options exercised during the years ended December 31, 2017 , 2016 and 2015 was $4 million , $6 million and $34 million , respectively. Total cash received from option exercises during the years ended December 31, 2017 , 2016 and 2015 was $4 million , $10 million and $59 million , respectively. We have not granted any stock options since 2008 and those previously granted became fully expensed in 2012. Following Shareholder approval of the 2011 Plan, we stopped granting new equity awards under the 2002 Plan. Crewmember Stock Purchase Plan In May 2011, our Shareholders approved the 2011 Crewmember Stock Purchase Plan, or the CSPP. At inception, the CSPP had 8.0 million shares of our common stock reserved for issuance. The CSPP, by its terms, will terminate no later than the last business day of April 2021. At our Annual Shareholders Meeting held on May 21, 2015, our Shareholders approved amendments to the CSPP increasing the number of shares of Company common stock that remain available for issuance under the plan by 15 million . The CSPP has a series of six month offering periods, with a new offering period beginning on the first business day of May and November each year. Crewmembers can only join an offering period on the start date. Crewmembers may contribute up to 10% of their pay towards the purchase of common stock via payroll deductions. Purchase dates occur on the last business day of April and October each year. The purchase price is the stock price on the purchase date, less a 15% discount. The compensation cost relating to the discount is recognized over the offering period. The total expense recognized relating to the CSPP for the years ended December 31, 2017 , 2016 and 2015 was approximately $8 million , $6 million and $5 million , respectively. Under this plan, Crewmembers purchased 2.5 million , 2.2 million , and 1.3 million new shares for the years ended December 31, 2017 , 2016 and 2015 , respectively, at weighted average prices of $17.46 , $15.88 , and $19.25 per share, respectively. Under the CSPP, should we be acquired by merger or sale of substantially all of our assets or sale of more than 50% of our outstanding voting securities, all outstanding purchase rights will automatically be exercised immediately prior to the effective date of the acquisition at a price equal to 85% of the fair market value per share immediately prior to the acquisition. Taxation The Compensation-Stock Compensation topic of the FASB Codification requires deferred taxes be recognized on temporary differences that arise with respect to stock-based compensation attributable to nonqualified stock options and awards. However, no tax benefit is recognized for stock-based compensation attributable to incentive stock options, or ISO, or CSPP shares until there is a disqualifying disposition, if any, for income tax purposes. A portion of our historical stock-based compensation was attributable to ISO and CSPP shares; therefore, our effective tax rate was subject to fluctuation. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax (benefit) expense consisted of the following for the years ended December 31 (in millions): 2017 2016 2015 Deferred: Federal $ (361 ) $ 245 $ 351 State 25 25 26 Foreign 23 — — Deferred income tax (benefit) expense (313 ) 270 377 Current: Federal 94 129 20 State 18 26 16 Foreign (25 ) 32 7 Current income tax expense 87 187 43 Total income tax (benefit) expense $ (226 ) $ 457 $ 420 The Tax Cuts and Jobs Act, or The Act, was enacted on December 22, 2017. The Act made significant changes to the Federal tax code, including a reduction in the Federal corporate statutory tax rate from 35% to 21% . At December 31, 2017, the Company was able to make a reasonable estimate of the tax effects of enactment of The Act as written, on the existing deferred tax balances. As a result of these estimates, the Company recognized a provisional benefit in the amount of $570 million . During 2018, the Company will continue to refine the calculations as we gain a more thorough understanding of the Act, including those related to the deductibility of purchased assets, state tax treatment, amounts related to Crewmember compensation as well as changes in interpretations of The Act and additional regulatory guidance that may be issued. The effective tax rate on income before income taxes differed from the federal income tax statutory rate for the years ended December 31 for the following reasons (in millions): 2017 2016 2015 Income tax expense at statutory rate $ 322 $ 425 $ 384 State income tax, net of federal benefit 28 34 28 Adjustment of net deferred tax liability from enacted tax rate change (570 ) — — Other, net (6 ) (2 ) 8 Total income tax (benefit) expense $ (226 ) $ 457 $ 420 Cash payments for income taxes were $139 million in 2017 , $173 million in 2016 and $42 million in 2015 . The components of our deferred tax assets and liabilities as of December 31 are as follows (in millions): 2017 2016 Deferred tax assets: Deferred revenue/gains 95 121 Terminal 5 lease 45 38 Employee benefits 32 41 Foreign tax credit 23 — Rent expense 22 34 Other 6 8 Deferred tax assets, net 223 242 Deferred tax liabilities: Accelerated depreciation (1,256 ) (1,596 ) Deferred tax liabilities (1,256 ) (1,596 ) Net deferred tax liability $ (1,033 ) $ (1,354 ) In evaluating the realizability of the deferred tax assets, we assess whether it is more likely than not that some portion, or all, of the deferred tax assets, will be realized. We consider, among other things, the generation of future taxable income (including reversals of deferred tax liabilities) during the periods in which the related temporary differences will become deductible. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follow (in millions): 2017 2016 2015 Unrecognized tax benefits at January 1, $ 26 $ 21 $ 16 Increases for tax positions taken during a prior period 2 10 — Increases for tax positions taken during the period 6 5 6 Decreases for tax positions taken during a prior period (3 ) (4 ) (1 ) Decreases for settlement with tax authorities during the period — (6 ) — Unrecognized tax benefits December 31, $ 31 $ 26 $ 21 Interest and penalties accrued on unrecognized tax benefits were not significant. If recognized, $15 million of the unrecognized tax benefits as of December 31, 2017 would impact our effective tax rate. We do not expect any significant change in the amount of the unrecognized tax benefits within the next twelve months. As a result of net operating losses and statute of limitations in our major tax jurisdictions, years 2004 through 2016 remain subject to examination by the relevant tax authorities. |
Employee Retirement Plan
Employee Retirement Plan | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plan | Employee Retirement Plan We sponsor a retirement savings 401(k) defined contribution plan, or the Plan, covering all of our Crewmembers where we match 100% of our Crewmember contributions up to 5% of their eligible wages. The contributions vest over five 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 three 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 on amounts 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 in for the years ended December 31, 2017 , 2016 and 2015 were $182 million , $290 million and $256 million , respectively. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Flight Equipment Commitments As of December 31, 2017 , our firm aircraft orders consisted of 10 Airbus A321 current engine option (ceo) aircraft, 25 Airbus A320 new engine option (neo) aircraft, 60 Airbus A321neo aircraft, 24 Embraer E190 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 $0.8 billion in 2018 , $1.0 billion in 2019 , $1.4 billion in 2020 , $1.5 billion in 2021 , $1.5 billion in 2022 and $1.1 billion thereafter. We are scheduled to receive 10 new Airbus A321ceo aircraft in 2018 , and depending on market conditions, we anticipate paying cash for some portion of our 2018 deliveries. We amended our purchase agreement with Airbus in April 2017 which changed the timing of certain of our Airbus A321ceo and Airbus A321neo deliveries. In conjunction with our intention to expand our Mint™ experience, we amended our purchase agreement with Airbus during July 2016 to add 30 incremental Airbus A321 aircraft with scheduled deliveries between 2017 and 2023. We expect 15 of the incremental 30 Airbus A321 aircraft to be delivered with the current engine option. Our amendment includes flexibility to take deliveries in our Mint™ or all-core configuration. We anticipate the remaining 15 aircraft to be Airbus A321neo, scheduled to be delivered beginning in 2020. We have the option to take certain A321neo deliveries with the Long Range configuration, the A321-LR. Other Commitments We utilize several credit card processors to process our ticket sales. Our agreements with these processors do not contain covenants, but do generally allow the processor to withhold cash reserves to protect the processor from potential liability for tickets purchased, but not yet used for travel. While we currently do not have any collateral requirements related to our credit card processors, we may be required to issue collateral to our credit card processors, or other key business partners, in the future. As of December 31, 2017 , we had approximately $24 million pledged related to our workers compensation insurance policies and other business partner agreements, which will expire according to the terms of the related policies or agreements. Except for our pilots, our Crewmembers do not have third-party representation. In April 2014, JetBlue pilots elected to be solely represented by ALPA. The NMB certified ALPA as the representative body for JetBlue pilots and we are working with ALPA to reach our first collective bargaining agreement. We enter into individual employment agreements with each of our non-unionized FAA-licensed Crewmembers which include dispatchers, technicians and inspectors as well as air traffic controllers. Each employment agreement is for a term of five years and automatically renews for an additional five years unless either the Crewmember or we elect not to renew it by giving at least 90 days ' notice before the end of the relevant term. Pursuant to these agreements, these Crewmembers can only be terminated for cause. In the event of a downturn in our business that would require a reduction in work hours, we are obligated to pay these Crewmembers a guaranteed level of income and to continue their benefits if they do not obtain other aviation employment. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies We self-insure a portion of our losses from claims related to workers’ compensation, environmental issues, property damage, medical insurance for Crewmembers and general liability. Losses are accrued based on an estimate of the ultimate aggregate liability for claims incurred, using standard industry practices and our actual experience. We are a party to many routine contracts under which we indemnify third parties for various risks. These indemnities consist of the following: All of our bank loans, including our aircraft and engine mortgages obligate us to reimburse the bank for any increased costs arising from regulatory changes, including changes in reserve requirements and bank capital requirements; these obligations are standard terms present in loans of this type. These indemnities would increase the interest rate on our debt if they were to be triggered. In all cases, we have the option to repay the loan and avoid the increased costs. These terms match the length of the related loan up to 15 years . Under both aircraft leases with foreign lessors and aircraft and engine mortgages with foreign lenders, we have agreed to customary indemnities concerning withholding tax law changes. Under these contracts we are responsible, should withholding taxes be imposed, for paying such amount of additional rent or interest as is necessary to ensure that the lessor or lender still receives, after taxes, the rent stipulated in the lease or the interest stipulated under the loan. The term of these indemnities matches the length of the related lease up to 20 years . We have various leases with respect to real property as well as various agreements among airlines relating to fuel consortia or fuel farms at airports. Under these contracts we have agreed to standard language indemnifying the lessor against environmental liabilities associated with the real property or operations described under the agreement, even if we are not the party responsible for the initial event that caused the environmental damage. In the case of fuel consortia at airports, these indemnities are generally joint and several among the participating airlines. We have purchased a standalone environmental liability insurance policy to help mitigate this exposure. Our existing aviation hull and liability policy includes some limited environmental coverage when a cleanup is part of an associated single identifiable covered loss. Under certain contracts, we indemnify specified parties against legal liability arising out of actions by other parties. The terms of these contracts range up to 25 years . Generally, we have liability insurance protecting ourselves for the obligations we have undertaken relative to these indemnities. Under a certain number of our operating lease agreements we are required to restore certain property or equipment to its original form upon expiration of the related agreement. We have recorded the estimated fair value of these retirement obligations of approximately $4 million as of December 31, 2017 . This liability may increase over time. We are unable to estimate the potential amount of future payments under the foregoing indemnities and 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 U.S. GAAP, where appropriate. In making a determination regarding accruals, using available information, we evaluate the likelihood of an unfavorable outcome in legal or regulatory proceedings to which we are a party to and record a loss contingency when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. These subjective determinations are based on the status of such legal or regulatory proceedings, the merits of our defenses and consultation with legal counsel. Actual outcomes of these legal and regulatory proceedings may materially differ from our current estimates. It is possible that resolution of one or more of the legal matters currently pending or threatened could result in losses material to our consolidated results of operations, liquidity or financial condition. To date, none of these types of litigation matters 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 | 12 Months Ended |
Dec. 31, 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 volatility in average fuel prices. We also periodically enter into jet fuel basis swaps for the differential between heating oil and jet fuel to further limit the variability in fuel prices at various locations. To manage the variability of the cash flows associated with our variable rate debt, we have also entered into interest rate swaps. We do not hold or issue any derivative financial instruments for trading purposes. Aircraft fuel derivatives We attempt to obtain cash flow hedge accounting treatment for each aircraft fuel derivative that we enter into. This treatment is provided for under the Derivatives and Hedging topic of the Codification. It allows for gains and losses on the effective portion of qualifying hedges to be deferred until the underlying planned jet fuel consumption occurs, rather than recognizing the gains and losses on these instruments into earnings during each period they are outstanding. The effective portion of realized aircraft fuel hedging derivative gains and losses is recognized in aircraft fuel expense in the period the underlying fuel is consumed. Ineffectiveness can occur in certain circumstances, when the change in the total fair value of the derivative instrument differs from the change in the value of our expected future cash outlays for the purchase of aircraft fuel and is recognized immediately in interest income and other. Likewise, if a hedge does not qualify for hedge accounting, the periodic changes in its fair value are recognized in the period of the change in interest income and other. When aircraft fuel is consumed and the related derivative contract settles, any gain or loss previously recorded in other comprehensive income is recognized in aircraft fuel expense. All cash flows related to our fuel hedging derivatives are classified as operating cash flows. Our current approach to fuel hedging is to enter into hedges on a discretionary basis without a specific target of hedge percentage needs. We view our hedge portfolio as a form of insurance to help mitigate the impact of price volatility and protect us against severe spikes in oil prices, when possible. We did not have any fuel hedging contracts outstanding as of December 31, 2017 . Interest rate swaps The final interest payment relating to our interest rate swaps took place in August 2016. As such, as of December 31, 2017 , we did not have any notional debt outstanding related to these swaps. These interest rate hedges effectively swapped floating rate debt for fixed rate debt. They took advantage of lower borrowing rates in existence at the time of the hedge transaction as compared to the date our original debt instruments were executed. The notional amount decreased over time to match scheduled repayments of the related debt. All of our interest rate swap contracts qualified as cash flow hedges in accordance with the Derivatives and Hedging topic of the Codification. Since all of the critical terms of our swap agreements matched the debt to which they pertain, there was no ineffectiveness relating to these interest rate swaps for the years ended December 31, 2016 or 2015 , and all related unrealized losses were deferred in accumulated other comprehensive income. We recognized approximately a $1 million gain in interest expense for the year ended December 31, 2016 and we recognized approximately $1 million in additional interest expense as the related interest payments were made during the year ended December 31, 2015. The table below reflects quantitative information related to our derivative instruments and where these amounts are recorded in our financial statements (dollar amounts in millions). As of December 31, 2017 2016 Fuel derivatives Asset fair value recorded in prepaid expense and other (1) $ — $ 22 Longest remaining term (months) — 12 Hedged volume (barrels, in thousands) — 1,920 Estimated amount of existing (gains) expected to be reclassified into earnings in the next 12 months — (22 ) 2017 2016 2015 Fuel derivatives Hedge effectiveness (gains) losses recognized in aircraft fuel expense $ (15 ) $ (9 ) $ 126 (Gains) losses on derivatives not qualifying for hedge accounting recognized in other expense — — 1 Hedge (gains) losses on derivatives recognized in comprehensive income 6 (34 ) 29 Percentage of actual consumption economically hedged 10 % 12 % 17 % (1) Gross asset of each contract prior to consideration of offsetting positions with each counterparty and prior to 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 the agreements, but we do not expect 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 liability position. To manage credit risks we select counterparties based on credit assessments, limit our overall exposure to any single counterparty and monitor the market position with each counterparty. Some of our agreements require cash deposits from either counterparty if market risk exposure exceeds a specified threshold amount. We have master netting arrangements with our counterparties allowing us the right of offset to mitigate credit risk in derivative transactions. The financial derivative instrument agreements we have with our counterparties may require us to fund all, or a portion of, outstanding loss positions related to these contracts prior to their scheduled maturities. The amount of collateral posted, if any, is periodically adjusted based on the fair value of the hedge contracts. Our policy is to offset the liabilities represented by these contracts with any cash collateral paid to the counterparties. 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 Assets Liabilities Offset Assets Liabilities Fuel derivatives As of December 31, 2017 $ — $ — $ — $ — $ — As of December 31, 2016 $ 22 $ — $ — $ 22 $ — |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Under the Fair Value Measurements and Disclosures topic of the Codification, disclosures are required about how fair value is determined for assets and liabilities and a hierarchy for which these assets and liabilities must be grouped is established, based on significant levels of inputs as follows: Level 1 quoted prices in active markets for identical assets or liabilities; Level 2 quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or Level 3 unobservable inputs for the asset or liability, such as discounted cash flow models or valuations. The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy (in millions): As of December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 173 $ — $ — $ 173 Available-for-sale investment securities — 136 — 136 As of December 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents $ 313 $ — $ — $ 313 Available-for-sale investment securities 115 220 — 335 Aircraft fuel derivatives — 22 — 22 The carrying values of all other financial instruments approximated their fair values at December 31, 2017 and 2016 . Refer to Note 2 for fair value information related to our outstanding debt obligations as of December 31, 2017 and 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. The fair values of these instruments are based on observable inputs in non-active markets, which are therefore classified as Level 2 in the hierarchy. We did not record any material gains or losses on these securities during the year ended December 31, 2017 or 2016 . Aircraft fuel derivatives Our aircraft fuel derivatives include swaps, caps, collars, and basis swaps which are not traded on public exchanges. Their fair values are determined using a market approach based on inputs that are readily available from public markets for commodities and energy trading activities; therefore, they are classified as Level 2 inputs. The data inputs are combined into quantitative models and processes to generate forward curves and volatilities related to the specific terms of the underlying hedge contracts. There were no aircraft fuel derivatives outstanding as of December 31, 2017. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) includes changes in fair value of our aircraft fuel derivatives and interest rate swap agreements, which qualify for hedge accounting. A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes for the years ended December 31, 2017 , 2016 and 2015 is as follows (in millions): Aircraft Fuel Derivatives (1) Interest Rate Swaps (2) Total Balance of accumulated (losses), at December 31, 2014 (63 ) — (63 ) Reclassifications into earnings (net of $49 of taxes) 77 1 78 Change in fair value (net of $(11) of taxes) (18 ) — (18 ) Balance of accumulated income (losses), at December 31, 2015 (4 ) 1 (3 ) Reclassifications into earnings (net of $(4) of taxes) (5 ) (1 ) (6 ) Change in fair value (net of $12 of taxes) 22 — 22 Balance of accumulated income, at December 31, 2016 $ 13 $ — $ 13 Reclassifications into earnings (net of $(6) of taxes) (9 ) — (9 ) Change in fair value (net of $(2) of taxes) (4 ) — (4 ) Balance of accumulated income, at December 31, 2017 — — — (1) Reclassified to aircraft fuel expense (2) Reclassified to interest expense |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Under the Segment Reporting topic of the Codification, disclosures are required for operating segments that are regularly reviewed by chief operating decision makers. Air transportation services accounted for substantially all the Company’s operations in 2017 , 2016 and 2015 . Operating revenues are allocated to geographic regions, as defined by the Department of Transportation, or DOT, based upon the origination and destination of each flight segment. We currently serve 33 locations in the Caribbean and Latin American region, or Latin America as defined by the DOT. However, our management includes our three destinations in Puerto Rico and two destinations in the U.S. Virgin Islands in our Caribbean and Latin America allocation of revenues. Therefore, we have reflected these locations within the Caribbean and Latin America region in the table below. Operating revenues by geographic regions for the years ended December 31 are summarized below (in millions): 2017 2016 2015 Domestic $ 5,001 $ 4,751 $ 4,521 Caribbean & Latin America 2,014 1,881 1,895 Total $ 7,015 $ 6,632 $ 6,416 Our tangible assets primarily consist of our fleet of aircraft, which is deployed system wide, with no individual aircraft dedicated to any specific route or region; therefore our assets do not require any allocation to a geographic area. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Quarterly results of operations for the years ended December 31, 2017 and 2016 are summarized below (in millions, except per share amounts): First Second Third Fourth 2017 Operating revenues $ 1,604 $ 1,842 $ 1,813 $ 1,756 Operating income 147 354 310 189 Net income (1) 85 211 179 672 Basic earnings per share $ 0.25 $ 0.64 $ 0.55 $ 2.09 Diluted earnings per share (1) $ 0.25 $ 0.64 $ 0.55 $ 2.08 2016 Operating revenues $ 1,616 $ 1,643 $ 1,732 $ 1,641 Operating income 349 313 354 296 Net income 207 181 199 172 Basic earnings per share $ 0.64 $ 0.56 $ 0.61 $ 0.51 Diluted earnings per share $ 0.61 $ 0.53 $ 0.58 $ 0.50 (1) During the fourth quarter of 2017, we recorded a one-time tax benefit of $570 million or $1.76 per diluted share related to the enactment of The Tax Cuts and Jobs Act. The sum of the quarterly earnings per share amounts does not equal the annual amount reported since per share amounts are computed independently for each quarter and for the full year based on respective weighted-average common shares outstanding and other dilutive potential common shares. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | JETBLUE AIRWAYS CORPORATION SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (in millions) Balance at Additions Charged to Deductions Balance at Year Ended December 31, 2017 Allowance for doubtful accounts $ 5 $ — $ 4 (1) $ 1 Allowance for obsolete inventory parts 12 2 — (2) 14 Total 17 2 4 15 Year Ended December 31, 2016 Allowance for doubtful accounts $ 6 $ — $ 1 (1) $ 5 Allowance for obsolete inventory parts 10 2 — (2) 12 Total 16 2 1 17 Year Ended December 31, 2015 Allowance for doubtful accounts $ 6 $ 4 $ 4 (1) $ 6 Allowance for obsolete inventory parts 8 2 — (2) 10 Total 14 6 4 16 (1) Uncollectible accounts written off, net of recoveries. (2) Inventory scrapped. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation JetBlue provides air transportation services across the United States, the Caribbean and Latin America. Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S., or U.S. GAAP, and include the accounts of JetBlue and our subsidiaries. All majority-owned subsidiaries are consolidated with all intercompany transactions and balances being eliminated. | |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements and accompanying notes in conformity with U.S. GAAP require us to make certain estimates and assumptions. Actual results could differ from those estimates. | |
Fair Value | Fair Value The Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board’s, or FASB, Accounting Standards Codification ™ , or Codification, establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. This topic clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The topic also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs. Refer to Note 13 for more information. | |
Cash and Cash Equivalents | Cash and Cash Equivalents Our cash and cash equivalents include short-term, highly liquid investments which are readily convertible into cash. These investments include money market securities and commercial papers with maturities of three months or less when purchased. Cash equivalents Our cash equivalents include money market securities and commercial 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. | |
Restricted Cash | Restricted Cash Restricted cash primarily consists of security deposits, funds held in escrow for estimated workers’ compensation obligations and performance bonds for aircraft and facility leases. | |
Accounts and Other Receivables | Accounts and Other Receivables Accounts and other receivables are carried at cost. They primarily consist of amounts due from credit card companies associated with sales of tickets for future travel. We estimate an allowance for doubtful accounts based on known troubled accounts, if any, and historical experience of losses incurred. | |
Investment Securities | Investment Securities Investment securities consist of available-for-sale investment securities and held-to-maturity investment securities. When sold, we use a specific identification method to determine the cost of the securities. Available-for-sale investment securities Our available-for-sale investment securities include highly liquid investments such as certificates of deposits with maturities between three and twelve months which are stated at fair value. Held-to-maturity investment securities Our held-to-maturity investments consist of investment-grade interest bearing instruments, primarily treasury notes and bills, which are stated at amortized cost. We do not intend to sell these investment securities and the contractual maturities are not greater than 24 months. Those with maturities less than twelve months are included in short-term investments on our consolidated balance sheets. Those with remaining maturities in excess of twelve months are included in long-term investments on our consolidated balance sheets. We did not record any material gains or losses on these securities during the years ended December 31, 2017 , 2016 or 2015 . The estimated fair value of these investments approximated their carrying value as of December 31, 2017 and 2016 . The carrying values of investment securities consisted of the following at December 31, 2017 and 2016 (in millions): 2017 2016 Available-for-sale securities Time deposits $ 130 $ 160 Debt Securities 6 — Treasury bills — 115 Commercial paper — 60 Total available-for-sale securities 136 335 Held-to-maturity securities Treasury notes 220 283 Corporate bonds 36 10 Total held-to-maturity securities 256 293 TOTAL INVESTMENT SECURITIES $ 392 $ 628 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. The fair values of these instruments are based on observable inputs in non-active markets, which are therefore classified as Level 2 in the hierarchy. We did not record any material gains or losses on these securities during the year ended December 31, 2017 or 2016 . | |
Derivative Instruments | Derivative Instruments Derivative instruments, including fuel hedge contracts, fuel basis swap agreements and interest rate swap agreements are stated at fair value, net of any collateral postings. Derivative instruments are included in other current assets and other current liabilities in our consolidated balance sheets. Refer to Note 12 for more information. Aircraft fuel derivatives Our aircraft fuel derivatives include swaps, caps, collars, and basis swaps which are not traded on public exchanges. Their fair values are determined using a market approach based on inputs that are readily available from public markets for commodities and energy trading activities; therefore, they are classified as Level 2 inputs. The data inputs are combined into quantitative models and processes to generate forward curves and volatilities related to the specific terms of the underlying hedge contracts. There were no aircraft fuel derivatives outstanding as of December 31, 201 | |
Inventories | Inventories Inventories consist of expendable aircraft spare parts and supplies that are stated at average cost as well as aircraft fuel that is accounted for on a first-in, first-out basis. These items are expensed when used or consumed. An allowance for obsolescence on aircraft spare parts is provided over the remaining useful life of the related aircraft fleet. | |
Property and Equipment | Property and Equipment We record our property and equipment at cost and depreciate these assets on a straight-line basis over their estimated useful lives to their estimated residual values. We capitalize additions, modifications enhancing the operating performance of our assets and the interest related to predelivery deposits used to acquire new aircraft and the construction of our facilities. Estimated useful lives and residual values for our property and equipment are as follows: Property and Equipment Type Estimated Useful Life Residual Value Aircraft 25 years 20 % In-flight entertainment systems 5-10 years 0 % Aircraft parts Fleet life 10 % Flight equipment leasehold improvements Lower of lease term or economic life 0 % Ground property and equipment 2-10 years 0 % Leasehold improvements—other Lower of lease term or economic life 0 % Buildings on leased land Lease term 0 % Property under capital leases is initially recorded at an amount equal to the present value of future minimum lease payments which is computed on the basis of our incremental borrowing rate or, when known, the interest rate implicit in the lease. Amortization of property under capital leases is on a straight-line basis over the expected useful life and is included in depreciation and amortization expense. We record impairment losses on long-lived assets used in operations when events and circumstances indicate the assets may be impaired and the undiscounted future cash flows estimated to be generated by the assets are less than the assets’ net book value. If impairment occurs, the loss is measured by comparing the fair value of the asset to its carrying amount. Impairment losses are recorded in depreciation and amortization expense. | |
Software | Software We capitalize certain costs related to the acquisition and development of computer software. We amortize these costs using the straight-line method over the estimated useful life of the software, which is generally between five and ten years. The net book value of computer software, which is included in other assets on our consolidated balance sheets, was $92 million and $97 million as of December 31, 2017 and 2016 , respectively. Amortization expense related to computer software was $41 million , $32 million and $34 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , amortization expense related to computer software is expected to be approximately $37 million in 2018 , $28 million in 2019 , $11 million in 2020 , $7 million in 2021 , and $4 million in 2022 . | |
Intangible Assets | Intangible Assets Our intangible assets consist primarily of acquired take-off and landing slots, or Slots, at certain domestic airports. Slots are the rights to take-off or land at a specific airport during a specific time period of the day and are a means by which airport capacity and congestion can be managed. We account for Slots at High Density Airports, including Reagan National Airport in Washington, D.C., LaGuardia Airport, and JFK Airport, both in New York City as indefinite life intangible assets which results in no amortization expense. Slots at other airports are amortized on a straight-line basis over their expected useful lives of up to 15 years . We evaluate our intangible assets for impairment at least annually or when events and circumstances indicate they may be impaired. Indicators include operating or cash flow losses as well as significant decreases in market value. As of December 31, 2017 and 2016 , our intangible assets for Slots at High Density Airports with indefinite lives was $139 million . | |
Passenger Revenues | Passenger Revenue Passenger revenue is recognized when the transportation is provided or after the ticket or passenger credit issued upon payment of a change fee expires. It is recognized net of the taxes that we are required to collect from our Customers, including federal transportation taxes, security taxes and airport facility charges. Tickets sold but not yet recognized as revenue and unexpired credits are included in air traffic liability on the consolidated balance sheets. | |
Loyalty Program | Loyalty Program We account for our customer loyalty program, TrueBlue ® , by recording a liability for the estimated incremental cost of outstanding points earned from JetBlue purchases that we expect to be redeemed. The estimated cost includes incremental fuel, insurance, passenger food and supplies, in-flight entertainment and reservation costs. We adjust this liability, which is included in air traffic liability, based on points earned and redeemed, points that will ultimately go unused, or breakage, changes in the estimated incremental costs associated with providing travel and changes in the TrueBlue ® program. This liability was $37 million and $30 million as of December 31, 2017 and 2016, respectively. We estimate breakage based on historical point redemptions. In June 2013, we amended the program so points earned by members never expire. Customers earn points based on the value paid for a trip rather than the length of the trip, and Customers can pool points between small groups of people, branded as Family Pooling ™ . We believe Family Pooling ™ has not had a material impact on the breakage calculation. TrueBlue ® points can also be sold to participating companies, including credit card and car rental companies. These sales are accounted for as multiple-element arrangements. Upon the re-launch of the TrueBlue ® program in November 2009, we extended our co-branded credit card and membership rewards participation agreements with American Express ® . Under this agreement, which ended in 2015, we identified two elements, with one element representing the fair value of the travel that will ultimately be provided when the points are redeemed and the other consisting of marketing related activities that we conduct with the participating company. The fair value of the transportation portion of these point sales is deferred and recognized as passenger revenue when transportation is provided. The marketing portion, which is the excess of the total sales proceeds over the estimated fair value of the transportation to be provided, is recognized in other revenue when the points are sold. In 2015, we announced a co-branded credit card partnership with Barclaycard ® , which commenced in March 2016. The agreement is a multiple-element arrangement subject to Accounting Standards Update, or ASU, 2009-13, Multiple Deliverable Revenue Arrangements. ASU 2009-13 requires the allocation of the overall consideration received to each deliverable using the estimated selling price. We identified the following deliverables: air transportation; use of the JetBlue brand name and access to our frequent flyer customer lists; advertising; and other airline benefits. In determining the estimated selling price, JetBlue considered multiple inputs, methods and assumptions, including: discounted cash flows; estimated equivalent ticket value, net of fulfillment discount; points expected to be awarded and redeemed; estimated annual spending by cardholder; estimated annual royalty for use of JetBlue's frequent flyer customer lists; and estimated utilization of other airline benefits. The overall consideration received is allocated to each deliverable based on their relative selling prices. The air transportation element is deferred and recognized as passenger revenue when the points are utilized. The other elements are recognized as other revenue when earned. TrueBlue ® points sold to participating companies which are not redeemed are recognized as revenue when management determines the probability of redemption is remote. Deferred revenue was $263 million and $211 million at December 31, 2017 and 2016, respectively. | |
Airframe and Engine Maintenance and Repair | Airframe and Engine Maintenance and Repair Regular airframe maintenance for owned and leased flight equipment is charged to expense as incurred unless covered by a third-party long-term flight hour service agreement. We have separate service agreements in place covering scheduled and unscheduled repairs of certain airframe line replacement unit components as well as the engines in our fleet. These agreements, whose original terms generally range from 10 to 15 years, require monthly payments at rates based either on the number of cycles each aircraft was operated during each month or the number of flight hours each engine was operated during each month, subject to annual escalations. These power by the hour agreements transfer certain risks, including cost risks, to the third-party service providers. They generally fix the amount we pay per flight hour or number of cycles in exchange for maintenance and repairs under a predefined maintenance program, which are representative of the time and materials that would be consumed. These costs are expensed as the related flight hours or cycles are incurred. | |
Advertising Costs | Advertising Costs Advertising costs, which are included in sales and marketing, are expensed as incurred. Advertising expense was $66 million in 2017 , $65 million in 2016 and $69 million in 2015 . | |
Share-Based Compensation | Share-Based Compensation We record compensation expense for share-based awards based on the grant date fair value of those awards. Share-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis. | |
Income Taxes | Income Taxes We account for income taxes utilizing the liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the tax and financial statement reporting bases of assets and liabilities. A valuation allowance for deferred tax assets is provided unless realizability is judged by us to be more likely than not. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. | |
New Accounting Standards | New Accounting Standards New accounting rules and disclosure requirements can impact our financial results and the comparability of our financial statements. The authoritative literature which has recently been issued and that we believe will impact our consolidated financial statements is described below. There are also several new proposals under development. If and when enacted, these proposals may have a significant impact on our financial statements. 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 the most significant impact will be our accounting for leased aircraft and other leasing agreements, requiring the presentation of those leases with durations of greater than twelve months on the balance sheet. See Note 3 with respect to our operating leases not currently presented on the balance sheet. The amendments are effective for fiscal years beginning after December 15, 2018 and includes 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 includes interim periods within those years. 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. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year to interim and annual reporting periods beginning after December 15, 2017 and permitted early adoption of the standard, but not prior to December 15, 2016. We have closely assessed the new standard and monitored FASB activity, including the interpretations by the FASB Transition Resource Group for Revenue Recognition throughout 2017. In the fourth quarter of 2017, we substantially completed our assessment of the new standard, and we expect to adopt the requirements of ASU 2014-09 as of January 1, 2018 utilizing the full retrospective method of transition. We will record a cumulative adjustment to retained earnings as of January 1, 2016 for the impacts of the new accounting standard. For JetBlue, we believe the most significant impact of the new standard relates to the accounting for our TrueBlue® Loyalty Program. The standard eliminates the incremental cost method for loyalty program accounting which we previously used. We will be required to re-value the liability for points earned on qualifying JetBlue purchases using a relative fair value approach. The application of a relative fair value approach is expected to increase our air traffic liability by approximately $270 million to $300 million , net of breakage, as of the beginning of the retrospective reporting period. In addition, we currently have a liability for outstanding points that were earned in conjunction with our previous co-branded credit card agreement 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 is expected to decrease the relative value allocated to the transportation performance obligation and will result in a decrease of approximately $160 million to $170 million , net of breakage, to the liability as of the beginning of the retrospective reporting period. Under the new standard, passenger revenue from unused tickets and passenger credits will be recognized in proportion to flown revenue based on estimates of expected expiration or when the likelihood of the Customer exercising their remaining rights becomes remote. Currently, recognition of passenger revenue was at expiration. This change will increase passenger revenue by approximately $20 million to $25 million . 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. As a result, we expect that these revenues, which were approximately $470 million and $425 million , in 2017 and 2016, respectively, will be reclassified from other revenue under the current presentation to passenger revenue after adoption. The estimated impact of this ASU is expected to be less than one percent reduction to Operating revenues for both full year 2017 and 2016, and do not expect it to impact any of the Company's existing debt covenants. | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 8 |
Long-term Debt, Short-term Bo27
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations Short Term Borrowings (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | Short-term Borrowings We have several lines of credit which bear interest at a floating rate based upon LIBOR plus a margin range of between 1.0% and 2.0% . Citibank Line of Credit We have a revolving Credit and Guaranty Agreement with Citibank, N.A. as the administrative agent for up to approximately $425 million . The term of the facility runs through April 2021. Borrowings under the Credit and Guaranty Agreement bear interest at a variable rate equal to LIBOR, plus a margin . The Credit and Guaranty Agreement is 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 a means by which airport capacity and congestion can be managed. The Credit and Guaranty Agreement 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 years ended December 31, 2017 and 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 years ended December 31, 2017 and 2016, we did not have a balance outstanding or borrowings under this line of credit. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Marketable Securities | The carrying values of investment securities consisted of the following at December 31, 2017 and 2016 (in millions): 2017 2016 Available-for-sale securities Time deposits $ 130 $ 160 Debt Securities 6 — Treasury bills — 115 Commercial paper — 60 Total available-for-sale securities 136 335 Held-to-maturity securities Treasury notes 220 283 Corporate bonds 36 10 Total held-to-maturity securities 256 293 TOTAL INVESTMENT SECURITIES $ 392 $ 628 |
Property, Plant and Equipment | Estimated useful lives and residual values for our property and equipment are as follows: Property and Equipment Type Estimated Useful Life Residual Value Aircraft 25 years 20 % In-flight entertainment systems 5-10 years 0 % Aircraft parts Fleet life 10 % Flight equipment leasehold improvements Lower of lease term or economic life 0 % Ground property and equipment 2-10 years 0 % Leasehold improvements—other Lower of lease term or economic life 0 % Buildings on leased land Lease term 0 % |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future minimum lease payments under non cancelable operating leases | Future minimum lease payments under noncancelable operating leases, including those described above, with initial or remaining terms in excess of one year at December 31, 2017 , are as follows (in millions): Aircraft Other Total 2018 $ 71 $ 99 $ 170 2019 59 91 150 2020 57 74 131 2021 51 66 117 2022 45 62 107 Thereafter 139 378 517 Total minimum operating lease payments $ 422 $ 770 $ 1,192 |
Long-term Debt, Short-term Bo30
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Long-term debt and capital lease obligations and the related weighted average interest rate at December 31, 2017 and 2016 consisted of the following (in millions): 2017 2016 Secured Debt Floating rate equipment notes, due through 2025 (1) $ 153 4.7 % $ 173 4.2 % Fixed rate enhanced equipment notes, due through 2023 (2) 171 4.5 % 189 4.5 % Fixed rate equipment notes, due through 2026 716 5.4 % 850 5.5 % Fixed rate specialty bonds, due through 2036 (3) 43 4.9 % 43 4.9 % Capital Leases (4) 124 4.5 % 140 4.3 % Total debt and capital lease obligations 1,207 1,395 Less: Current maturities (196 ) (189 ) Less: Debt acquisition cost (8 ) (11 ) Long-term debt and capital lease obligations $ 1,003 $ 1,195 (1) Interest rates adjust quarterly or semi-annually based on LIBOR, plus a margin . (2) In March 2014, we completed a private placement of $226 million in pass-through certificates, Series 2013-1. The certificates were issued by a pass-through trust and are not obligations of JetBlue. The proceeds from the issuance of the pass-through certificates were used to purchase equipment notes issued by JetBlue and secured by 14 of our previously unencumbered aircraft. Principal and interest are payable semi-annually , starting in September 2014. (3) In November 2005, the Greater Orlando Aviation Authority, or GOAA, issued special purpose airport facilities revenue bonds to JetBlue as reimbursement for certain airport facility construction and other costs. In April 2013, GOAA issued $42 million in special purpose airport facility revenue bonds to refund the bonds issued in 2005. The proceeds from the refunded bonds were loaned to us and we recorded the issuance of $43 million , net of $1 million premium, as long term debt on our consolidated balance sheets. In December 2006, the New York City Industrial Development Agency issued special facility revenue bonds for JFK to us as reimbursement to us for certain airport facility construction and other costs. We recorded the principal amount of the bond, net of discounts, as long-term debt on our consolidated balance sheets because we have issued a guarantee of the debt payments on the bond. This fixed rate debt is secured by leasehold mortgages of our airport facilities. During June 2015, we prepaid the full $32 million principal outstanding on the JFK special facility revenue bonds. (4) As of December 31, 2017 and 2016 , four capital leased Airbus A320 aircraft and two capital leased Airbus A321 aircraft were included in property and equipment at a cost of $253 million with accumulated amortization of $64 million and $56 million , respectively. The future minimum lease payments under these non-cancelable leases are $23 million in 2018 , $23 million in 2019 , $35 million in 2020 , $39 million in 2021 , $9 million in 2022 and $14 million in the years thereafter. Included in the future minimum lease payments is $20 million representing interest, resulting in a present value of capital leases of $124 million with a current portion of $17 million and a long-term portion of $107 million . |
Schedule of maturities of long-term debt | Maturities of long-term debt and capital leases for the next five years are as follows (in millions): Year Maturities 2018 $ 194 2019 215 2020 179 2021 164 2022 142 Thereafter 305 |
Carrying amounts and estimated fair values of long-term debt | The carrying amounts and estimated fair values of our long-term debt at December 31, 2017 and 2016 were as follows (in millions): December 31, 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 46 42 45 Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 169 178 188 197 Floating rate equipment notes, due through 2025 152 159 171 179 Fixed rate equipment notes, due through 2026 712 771 843 915 Total (1) $ 1,075 $ 1,154 $ 1,244 $ 1,336 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The following table shows how we computed basic and diluted earnings per common share for the years ended December 31 (dollars and share data in millions): 2017 2016 2015 Numerator: Net income $ 1,147 $ 759 $ 677 Effect of dilutive securities: Interest on convertible debt, net of income taxes and profit sharing — 2 4 Net income applicable to common stockholders after assumed conversions for diluted earnings per share $ 1,147 $ 761 $ 681 Denominator: Weighted average shares outstanding for basic earnings per share 328.7 326.5 315.1 Effect of dilutive securities: Employee stock options and restricted stock units 1.7 2.1 2.8 Convertible debt — 13.6 26.9 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share 330.4 342.2 344.8 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of restricted stock unit activity | The following is a summary of RSU activity under the 2011 Plan for the year ended December 31, 2017 (in millions except per share data): Shares Weighted Average Grant Date Fair Value Nonvested at beginning of year 1.8 $16.77 Granted 0.9 19.76 Vested (1.0 ) 14.04 Forfeited (0.1 ) 19.69 Nonvested at end of year 1.6 $20.14 |
Summary of stock option activity | The following is a summary of stock option activity for the year ended December 31, 2017 (in millions except per share data): Shares Weighted Average Grant Date Fair Value Outstanding at beginning of year 0.4 $10.90 Exercised (0.4 ) 10.90 Outstanding at end of year — — Vested at end of year — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | Our income tax (benefit) expense consisted of the following for the years ended December 31 (in millions): 2017 2016 2015 Deferred: Federal $ (361 ) $ 245 $ 351 State 25 25 26 Foreign 23 — — Deferred income tax (benefit) expense (313 ) 270 377 Current: Federal 94 129 20 State 18 26 16 Foreign (25 ) 32 7 Current income tax expense 87 187 43 Total income tax (benefit) expense $ (226 ) $ 457 $ 420 |
Schedule of income taxes differed from the federal income tax statutory rate | The effective tax rate on income before income taxes differed from the federal income tax statutory rate for the years ended December 31 for the following reasons (in millions): 2017 2016 2015 Income tax expense at statutory rate $ 322 $ 425 $ 384 State income tax, net of federal benefit 28 34 28 Adjustment of net deferred tax liability from enacted tax rate change (570 ) — — Other, net (6 ) (2 ) 8 Total income tax (benefit) expense $ (226 ) $ 457 $ 420 |
Schedule of deferred tax assets and deferred liabilities | The components of our deferred tax assets and liabilities as of December 31 are as follows (in millions): 2017 2016 Deferred tax assets: Deferred revenue/gains 95 121 Terminal 5 lease 45 38 Employee benefits 32 41 Foreign tax credit 23 — Rent expense 22 34 Other 6 8 Deferred tax assets, net 223 242 Deferred tax liabilities: Accelerated depreciation (1,256 ) (1,596 ) Deferred tax liabilities (1,256 ) (1,596 ) Net deferred tax liability $ (1,033 ) $ (1,354 ) |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follow (in millions): 2017 2016 2015 Unrecognized tax benefits at January 1, $ 26 $ 21 $ 16 Increases for tax positions taken during a prior period 2 10 — Increases for tax positions taken during the period 6 5 6 Decreases for tax positions taken during a prior period (3 ) (4 ) (1 ) Decreases for settlement with tax authorities during the period — (6 ) — Unrecognized tax benefits December 31, $ 31 $ 26 $ 21 |
Financial Derivative Instrume34
Financial Derivative Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instrument in statement of financial position and financial performance | The table below reflects quantitative information related to our derivative instruments and where these amounts are recorded in our financial statements (dollar amounts in millions). As of December 31, 2017 2016 Fuel derivatives Asset fair value recorded in prepaid expense and other (1) $ — $ 22 Longest remaining term (months) — 12 Hedged volume (barrels, in thousands) — 1,920 Estimated amount of existing (gains) expected to be reclassified into earnings in the next 12 months — (22 ) 2017 2016 2015 Fuel derivatives Hedge effectiveness (gains) losses recognized in aircraft fuel expense $ (15 ) $ (9 ) $ 126 (Gains) losses on derivatives not qualifying for hedge accounting recognized in other expense — — 1 Hedge (gains) losses on derivatives recognized in comprehensive income 6 (34 ) 29 Percentage of actual consumption economically hedged 10 % 12 % 17 % (1) Gross asset of each contract prior to consideration of offsetting positions with each counterparty and prior to 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 Assets Liabilities Offset Assets Liabilities Fuel derivatives As of December 31, 2017 $ — $ — $ — $ — $ — As of December 31, 2016 $ 22 $ — $ — $ 22 $ — |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements, recurring | The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy (in millions): As of December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 173 $ — $ — $ 173 Available-for-sale investment securities — 136 — 136 As of December 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents $ 313 $ — $ — $ 313 Available-for-sale investment securities 115 220 — 335 Aircraft fuel derivatives — 22 — 22 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated other comprehensive income (loss), net of taxes | Comprehensive income (loss) includes changes in fair value of our aircraft fuel derivatives and interest rate swap agreements, which qualify for hedge accounting. A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes for the years ended December 31, 2017 , 2016 and 2015 is as follows (in millions): Aircraft Fuel Derivatives (1) Interest Rate Swaps (2) Total Balance of accumulated (losses), at December 31, 2014 (63 ) — (63 ) Reclassifications into earnings (net of $49 of taxes) 77 1 78 Change in fair value (net of $(11) of taxes) (18 ) — (18 ) Balance of accumulated income (losses), at December 31, 2015 (4 ) 1 (3 ) Reclassifications into earnings (net of $(4) of taxes) (5 ) (1 ) (6 ) Change in fair value (net of $12 of taxes) 22 — 22 Balance of accumulated income, at December 31, 2016 $ 13 $ — $ 13 Reclassifications into earnings (net of $(6) of taxes) (9 ) — (9 ) Change in fair value (net of $(2) of taxes) (4 ) — (4 ) Balance of accumulated income, at December 31, 2017 — — — (1) Reclassified to aircraft fuel expense (2) Reclassified to interest expense |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of operating revenues by geographic regions | Operating revenues are allocated to geographic regions, as defined by the Department of Transportation, or DOT, based upon the origination and destination of each flight segment. We currently serve 33 locations in the Caribbean and Latin American region, or Latin America as defined by the DOT. However, our management includes our three destinations in Puerto Rico and two destinations in the U.S. Virgin Islands in our Caribbean and Latin America allocation of revenues. Therefore, we have reflected these locations within the Caribbean and Latin America region in the table below. Operating revenues by geographic regions for the years ended December 31 are summarized below (in millions): 2017 2016 2015 Domestic $ 5,001 $ 4,751 $ 4,521 Caribbean & Latin America 2,014 1,881 1,895 Total $ 7,015 $ 6,632 $ 6,416 |
Quarterly Financial Data (Una38
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | Quarterly results of operations for the years ended December 31, 2017 and 2016 are summarized below (in millions, except per share amounts): First Second Third Fourth 2017 Operating revenues $ 1,604 $ 1,842 $ 1,813 $ 1,756 Operating income 147 354 310 189 Net income (1) 85 211 179 672 Basic earnings per share $ 0.25 $ 0.64 $ 0.55 $ 2.09 Diluted earnings per share (1) $ 0.25 $ 0.64 $ 0.55 $ 2.08 2016 Operating revenues $ 1,616 $ 1,643 $ 1,732 $ 1,641 Operating income 349 313 354 296 Net income 207 181 199 172 Basic earnings per share $ 0.64 $ 0.56 $ 0.61 $ 0.51 Diluted earnings per share $ 0.61 $ 0.53 $ 0.58 $ 0.50 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 8,000,000 | |||
Schedule of AFS and HTM Securities [Line Items] | ||||
Held-to-maturity Securities, Gross Gains (Losses), Derivatives | $ 0 | $ 0 | $ 0 | |
Available-for-sale securities | 136,000,000 | 335,000,000 | ||
Held-to-maturity securities | 256,000,000 | 293,000,000 | ||
TOTAL INVESTMENT SECURITIES | 392,000,000 | 628,000,000 | ||
Other Liabilities [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 9,000,000 | |||
Other Current Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 164,000,000 | |||
Deferred Revenue [Domain] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 300,000,000 | |||
Deferred Revenue [Domain] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 270,000,000 | |||
Liability [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 170,000,000 | |||
Liability [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 160,000,000 | |||
Scenario, Forecast [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
New Accounting Pronouncement Or Change In Accounting Principle, Expected Increase (Decrease) In Other Revenue for 2016 | $ (425,000,000) | |||
New Accounting Pronouncement Or Change In Accounting Principle, Expected Increase (Decrease) In Other Revenue for 2017 | $ (470,000,000) | |||
Scenario, Forecast [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
New Accounting Pronouncement Or Change In Accounting Principle, Expected Increase (Decrease) In Operating Revenue for 2016 | (1.00%) | |||
New Accounting Pronouncement Or Change in Accounting Principle, Expected Increase (Decrease) In Passenger Revenue | $ 25,000,000 | |||
Scenario, Forecast [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
New Accounting Pronouncement Or Change in Accounting Principle, Expected Increase (Decrease) In Passenger Revenue | $ 20,000,000 | |||
Bank Time Deposits [Member] | ||||
Schedule of AFS and HTM Securities [Line Items] | ||||
Available-for-sale securities | 130,000,000 | 160,000,000 | ||
Convertible Debt Securities [Member] | ||||
Schedule of AFS and HTM Securities [Line Items] | ||||
Available-for-sale securities | 6,000,000 | 0 | ||
Commercial Paper [Member] | ||||
Schedule of AFS and HTM Securities [Line Items] | ||||
Available-for-sale securities | 0 | 60,000,000 | ||
US Treasury Bill Securities [Member] | ||||
Schedule of AFS and HTM Securities [Line Items] | ||||
Available-for-sale securities | 0 | 115,000,000 | ||
Corporate Bond Securities [Member] | ||||
Schedule of AFS and HTM Securities [Line Items] | ||||
Held-to-maturity securities | 36,000,000 | 10,000,000 | ||
US Treasury Notes Securities [Member] | ||||
Schedule of AFS and HTM Securities [Line Items] | ||||
Held-to-maturity securities | 220,000,000 | $ 283,000,000 | ||
Sales Revenue, Services, Net [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0.01 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
JFK Terminal 5 [Member] | |
Property, Plant and Equipment [Line Items] | |
Leasehold Improvements, Gross | $ 76 |
Net Costs For Terminal Construction Project Subject To Underlying Ground Lease | $ 637 |
Aircraft [Member] | |
Property and Equipment | |
Estimated Useful Life | 25 years |
Residual Value | 20.00% |
In-flight entertainment systems [Member] | |
Property and Equipment | |
Residual Value | 0.00% |
Aircraft Parts [Member] | |
Property and Equipment | |
Residual Value | 10.00% |
Flight equipment leasehold improvements [Member] | |
Property and Equipment | |
Residual Value | 0.00% |
Ground property and equipment [Member] | |
Property and Equipment | |
Residual Value | 0.00% |
Leasehold improvements-other [Member] | |
Property and Equipment | |
Residual Value | 0.00% |
Buildings on Leased Land Member | |
Property and Equipment | |
Residual Value | 0.00% |
JFK Terminal 5 International [Member] | |
Property, Plant and Equipment [Line Items] | |
Net Costs For Terminal Construction Project Subject To Underlying Ground Lease | $ 207 |
Minimum [Member] | In-flight entertainment systems [Member] | |
Property and Equipment | |
Estimated Useful Life | 5 years |
Minimum [Member] | Ground property and equipment [Member] | |
Property and Equipment | |
Estimated Useful Life | 2 years |
Maximum [Member] | In-flight entertainment systems [Member] | |
Property and Equipment | |
Estimated Useful Life | 10 years |
Maximum [Member] | Ground property and equipment [Member] | |
Property and Equipment | |
Estimated Useful Life | 10 years |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Held-to-maturity Securities, Gross Gains (Losses), Derivatives | $ 0 | $ 0 | $ 0 |
Aircraft Maintenance, Materials, and Repairs | 622,000,000 | 563,000,000 | 490,000,000 |
Customer Loyalty Program Liability, Current | 37,000,000 | 30,000,000 | |
Deferred Revenue from Loyalty Program Points | $ 263,000,000 | 211,000,000 | |
Maintenance service agreements, Minimum | 10 years | ||
Maintenance service agreements, Maximum | 15 years | ||
Advertising expense | $ 66,000,000 | 65,000,000 | 69,000,000 |
Deferred income taxes | 1,033,000,000 | 1,354,000,000 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | 8,000,000 | ||
Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Capitalized Computer Software, Net | 92,000,000 | 97,000,000 | |
Amortization expense | 41,000,000 | 32,000,000 | $ 34,000,000 |
Estimated Amortization expense related to computer software, Year one | 37,000,000 | ||
Estimated Amortization expense related to computer software, Year two | 28,000,000 | ||
Estimated Amortization expense related to computer software, Year three | 11,000,000 | ||
Estimated Amortization expense related to computer software, Year four | 7,000,000 | ||
Estimated Amortization expense related to computer software, Year five | $ 4,000,000 | ||
Minimum [Member] | Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Maximum [Member] | Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Maximum [Member] | Non-High Density Airports, Take Off and Landing Slots [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Maximum [Member] | High Density Airports, Take-Off and Landing Slots [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 139,000,000 | $ 139,000,000 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies Held-to-Maturities Securities, Gains (Losses) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Held-to-maturity Securities, Gross Gains (Losses), Derivatives | $ 0 | $ 0 | $ 0 |
Operating Leases (Details)
Operating Leases (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)aircraft | Dec. 31, 2016USD ($)aircraft | Dec. 31, 2015USD ($)aircraft | |
Operating Leased Assets [Line Items] | |||
Number of Operating Aircrafts, Sold and Leased Back | aircraft | 40 | ||
Operating Leases, Rent Expense, Net | $ 315 | $ 294 | $ 298 |
Future minimum lease payments under non cancelable operating leases | |||
Future minimum lease payments, 2016 | 170 | ||
Future minimum lease payments, 2017 | 150 | ||
Future minimum lease payments, 2018 | 131 | ||
Future minimum lease payments, 2019 | 117 | ||
Future minimum lease payments, 2020 | 107 | ||
Thereafter | 517 | ||
Total minimum operating lease payments | 1,192 | ||
Collateral Assets For Letters Of Credit Related To Leases | $ 30 | ||
Number Of Aircraft Variable Rate Rent | aircraft | 0 | ||
Number Of Aircraft Lease Rate Renewed Based On Fair Market Value | aircraft | 40 | ||
Number Of Aircraft Having Purchase Options | aircraft | 42 | ||
Operating Lease Buyout, Value of Buyout | $ 51 | $ 164 | $ 110 |
Future Minimum Lease Payments Due To Vies | $ 316 | ||
A-320-200 [Member] | |||
Future minimum lease payments under non cancelable operating leases | |||
Operating Lease Buyout, Number of Aircraft | aircraft | 3 | 9 | 6 |
Aircraft [Domain] | |||
Future minimum lease payments under non cancelable operating leases | |||
Future minimum lease payments, 2016 | $ 71 | ||
Future minimum lease payments, 2017 | 59 | ||
Future minimum lease payments, 2018 | 57 | ||
Future minimum lease payments, 2019 | 51 | ||
Future minimum lease payments, 2020 | 45 | ||
Thereafter | 139 | ||
Total minimum operating lease payments | $ 422 | ||
Property Subject to or Available for Operating Lease, Number of Units | aircraft | 44 | ||
Number of Aircraft Operated at Period End | aircraft | 243 | ||
Other [Member] | |||
Future minimum lease payments under non cancelable operating leases | |||
Future minimum lease payments, 2016 | $ 99 | ||
Future minimum lease payments, 2017 | 91 | ||
Future minimum lease payments, 2018 | 74 | ||
Future minimum lease payments, 2019 | 66 | ||
Future minimum lease payments, 2020 | 62 | ||
Thereafter | 378 | ||
Total minimum operating lease payments | $ 770 | ||
Minimum [Member] | |||
Future minimum lease payments under non cancelable operating leases | |||
Operating Lease Term Expiration Range | 2,018 | ||
Maximum [Member] | |||
Future minimum lease payments under non cancelable operating leases | |||
Operating Lease Term Expiration Range | 2,028 | ||
London Interbank Offered Rate (LIBOR) [Member] | |||
Future minimum lease payments under non cancelable operating leases | |||
Operating Leases of Lessee, Contingent Rentals, Description of Variable Rate Basis | LIBOR |
Long-term Debt, Short-term Bo44
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Details) shares in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015USD ($) | Dec. 31, 2017USD ($)aircraft | Dec. 31, 2016USD ($)aircraftshares | Dec. 31, 2015USD ($)shares | Mar. 30, 2014USD ($)aircraft | Apr. 30, 2013USD ($) | |
Debt Instrument [Line Items] | ||||||
Pledged Assets Not Separately Reported Flight Equipment | $ 2,300,000,000 | |||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 194,000,000 | |||||
Long-term Debt | 1,075,000,000 | $ 1,244,000,000 | ||||
Long-term Debt, Fair Value | 1,154,000,000 | 1,336,000,000 | ||||
Long-term debt and capital lease obligations and the weighted average interest rate | ||||||
Capital Leases (7) | 124,000,000 | 140,000,000 | ||||
Total debt and capital lease obligations | 1,207,000,000 | 1,395,000,000 | ||||
Less: current maturities | (196,000,000) | (189,000,000) | ||||
Debt Acquisition Cost | (8,000,000) | (11,000,000) | ||||
Long-term debt and capital lease obligations | 1,003,000,000 | 1,195,000,000 | ||||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 64,000,000 | 56,000,000 | ||||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 40,000,000 | |||||
Capital Leases, Future Minimum Payments Due in Two Years | 40,000,000 | |||||
Capital Leases, Future Minimum Payments Due in Three Years | 40,000,000 | |||||
Capital Leases, Future Minimum Payments Due in Four Years | 40,000,000 | |||||
Capital Leases, Future Minimum Payments Due in Five Years | 40,000,000 | |||||
Capital Leases, Future Minimum Payments Due Thereafter | 456,000,000 | |||||
Capital Leases, Future Minimum Payments, Interest Included in Payments | 20,000,000 | |||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 124,000,000 | |||||
Capital Lease Obligations, Current | 17,000,000 | |||||
Capital Lease Obligations, Noncurrent | 107,000,000 | |||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 215,000,000 | |||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 179,000,000 | |||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 164,000,000 | |||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 142,000,000 | |||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 305,000,000 | |||||
Interest Paid | $ 60,000,000 | $ 78,000,000 | $ 93,000,000 | |||
Floating rate equipment notes due through 2025 [Member] | ||||||
Long-term debt and capital lease obligations and the weighted average interest rate | ||||||
Weighted average interest rate | 4.70% | 4.20% | ||||
Secured Debt | $ 153,000,000 | $ 173,000,000 | ||||
Fixed Rate Equipment Notes Due Through Two Thousand Twenty Three [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 226,000,000 | |||||
Long-term debt and capital lease obligations and the weighted average interest rate | ||||||
Weighted average interest rate | 4.50% | 4.50% | ||||
Secured Debt | $ 171,000,000 | $ 189,000,000 | ||||
Fixed rate equipment notes, due through 2026 [Member] | ||||||
Long-term debt and capital lease obligations and the weighted average interest rate | ||||||
Weighted average interest rate | 5.40% | 5.50% | ||||
Secured Debt | $ 716,000,000 | $ 850,000,000 | ||||
Public Debt Fixed rate special facility bonds, due through 2036 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 42,000,000 | |||||
Long-term Debt | 42,000,000 | 42,000,000 | ||||
Long-term Debt, Fair Value | $ 46,000,000 | $ 45,000,000 | ||||
Long-term debt and capital lease obligations and the weighted average interest rate | ||||||
Weighted average interest rate | 4.90% | 4.90% | ||||
Secured Debt | $ 43,000,000 | $ 43,000,000 | ||||
Debt Instrument, Net Amount | 43,000,000 | |||||
Debt Instrument, Unamortized Premium | $ 1,000,000 | |||||
Extinguishment of Debt, Amount | $ 32,000,000 | |||||
Public Debt 6.75% convertible debentures due in 2039 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 17.6 | |||||
Public Debt 5.5% convertible debentures due in 2038 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 15.2 | |||||
Capital Lease Obligations [Member] | ||||||
Long-term debt and capital lease obligations and the weighted average interest rate | ||||||
Weighted average interest rate | 4.50% | 4.30% | ||||
Non Public Debt Fixed Rate Enhanced Equipment Notes Due Through Two Thousand And Twenty Three [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 169,000,000 | $ 188,000,000 | ||||
Long-term Debt, Fair Value | 178,000,000 | 197,000,000 | ||||
Non Public Debt Floating Rate Equipment Notes Due Through Two Thousand And Twenty Five [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 152,000,000 | 171,000,000 | ||||
Long-term Debt, Fair Value | $ 159,000,000 | 179,000,000 | ||||
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Floating rate equipment notes due through 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR, plus a margin | |||||
Fixed Rate Equipment Notes Due Through Two Thousand Twenty Three [Member] | ||||||
Long-term debt and capital lease obligations and the weighted average interest rate | ||||||
Debt Instrument, Frequency of Periodic Payment | semi-annually | |||||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Description | LIBOR plus a margin | |||||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Interest Rate Description | 0.01 | |||||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Interest Rate Description | 0.02 | |||||
Morgan Stanley [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | $ 0 | 0 | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 200,000,000 | |||||
Morgan Stanley [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR, plus a margin | |||||
Revolving Credit Facility and Letter of Credit Facility [Member] | Citibank [Member] | Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | $ 0 | $ 0 | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 425,000,000 | |||||
Revolving Credit Facility and Letter of Credit Facility [Member] | Citibank [Member] | Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR, plus a margin | |||||
A-320-200 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Capital Lease Obligations, Number of Aircraft | aircraft | 4 | 4 | ||||
A-320-200 [Member] | Fixed Rate Equipment Notes Due Through Two Thousand Twenty Three [Member] | ||||||
Long-term debt and capital lease obligations and the weighted average interest rate | ||||||
Number of New Aircraft Held As Security | aircraft | 14 | |||||
A-321-200 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Capital Lease Obligations, Number of Aircraft | aircraft | 2 | 2 | ||||
Aircraft [Domain] | ||||||
Long-term debt and capital lease obligations and the weighted average interest rate | ||||||
Capital Leases (7) | $ 253,000,000 | $ 253,000,000 | ||||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 23,000,000 | |||||
Capital Leases, Future Minimum Payments Due in Two Years | 23,000,000 | |||||
Capital Leases, Future Minimum Payments Due in Three Years | 35,000,000 | |||||
Capital Leases, Future Minimum Payments Due in Four Years | 39,000,000 | |||||
Capital Leases, Future Minimum Payments Due in Five Years | 9,000,000 | |||||
Capital Leases, Future Minimum Payments Due Thereafter | $ 14,000,000 |
Operating Leases (Details Textu
Operating Leases (Details Textual) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)aircraft | Dec. 31, 2016USD ($)aircraft | Dec. 31, 2015USD ($)aircraft | |
Operating Leases (Textual) [Abstract] | |||
Total rental expense for operating leases | $ | $ 315 | $ 294 | $ 298 |
Collateral assets for letters of credit related to leases | $ | $ 30 | ||
Number of aircraft variable rate rent | 0 | ||
Number of aircraft lease rate renewed based on fair market value | 40 | ||
Number of aircraft having purchase options | 42 | ||
Number of Operating Aircrafts, Sold and Leased Back | 40 | ||
Future Minimum Lease Payments Due To Vies | $ | $ 316 | ||
Operating Lease Buyout, Value of Buyout | $ | $ 51 | $ 164 | $ 110 |
Minimum [Member] | |||
Operating Leases (Textual) [Abstract] | |||
Operating Lease Term Expiration Range | 2,018 | ||
Maximum [Member] | |||
Operating Leases (Textual) [Abstract] | |||
Operating Lease Term Expiration Range | 2,028 | ||
Aircraft [Domain] | |||
Operating Leases (Textual) [Abstract] | |||
Number of aircraft leased | 44 | ||
Number of Aircraft Operated at Period End | 243 | ||
A-320-200 [Member] | |||
Operating Leases (Textual) [Abstract] | |||
Operating Lease Buyout, Number of Aircraft | 3 | 9 | 6 |
London Interbank Offered Rate (LIBOR) [Member] | |||
Operating Leases (Textual) [Abstract] | |||
Operating Leases of Lessee, Contingent Rentals, Description of Variable Rate Basis | LIBOR |
Long-term Debt, Short-term Bo46
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Details 1) $ in Millions | Dec. 31, 2017USD ($) |
Maturities of long-term debt and capital leases | |
2,016 | $ 194 |
2,017 | 215 |
2,018 | 179 |
2,019 | 164 |
2,020 | 142 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | $ 305 |
Long-term Debt, Short-term Bo47
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 30, 2013 |
Carrying amounts and estimated fair values of long-term debt | |||
Carrying Value | $ 1,075 | $ 1,244 | |
Estimated Fair Value | 1,154 | 1,336 | |
Public Debt Fixed rate special facility bonds, due through 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 42 | ||
Carrying amounts and estimated fair values of long-term debt | |||
Carrying Value | 42 | 42 | |
Estimated Fair Value | 46 | 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 | 169 | 188 | |
Estimated Fair Value | 178 | 197 | |
Non-Public Debt Floating rate equipment notes, due through 2025 [Member] | |||
Carrying amounts and estimated fair values of long-term debt | |||
Carrying Value | 152 | 171 | |
Estimated Fair Value | 159 | 179 | |
Non-Public Debt Fixed rate equipment notes due through 2026 [Member] | |||
Carrying amounts and estimated fair values of long-term debt | |||
Carrying Value | 712 | 843 | |
Estimated Fair Value | $ 771 | $ 915 |
Long-term Debt, Short-term Bo48
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations (Details Textual) shares in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)aircraft | Dec. 31, 2016USD ($)aircraftshares | Dec. 31, 2015USD ($)shares | |
Debt Instrument [Line Items] | |||
Convertible debt redemption | $ 86,000,000 | $ 67,000,000 | |
Common stock lent to share borrower | shares | 1.4 | ||
Capital leases | $ 124,000,000 | 140,000,000 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 64,000,000 | 56,000,000 | |
Long-term Debt | 1,075,000,000 | 1,244,000,000 | |
Capital Leases, Future Minimum Payments Due [Abstract] | |||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 40,000,000 | ||
Capital Leases, Future Minimum Payments Due in Two Years | 40,000,000 | ||
Capital Leases, Future Minimum Payments Due in Three Years | 40,000,000 | ||
Capital Leases, Future Minimum Payments Due in Four Years | 40,000,000 | ||
Capital Leases, Future Minimum Payments Due in Five Years | 40,000,000 | ||
Thereafter | 456,000,000 | ||
Future minimum lease interest payments | 20,000,000 | ||
Present value of capital leases | 124,000,000 | ||
Capital Lease Obligations, Current | 17,000,000 | ||
Capital Lease Obligations, Noncurrent | 107,000,000 | ||
Long-term debt and capital lease obligations | 1,003,000,000 | 1,195,000,000 | |
Value of aircraft, engines and other equipment and facilities which were pledged as security under various loan agreements | 2,300,000,000 | ||
Cash payments for interest related to debt and capital lease obligations, net of capitalized interest | 60,000,000 | 78,000,000 | $ 93,000,000 |
Morgan Stanley [Member] | |||
Capital Leases, Future Minimum Payments Due [Abstract] | |||
Long-term Line of Credit | 0 | 0 | |
Line of Credit Facility, Current Borrowing Capacity | $ 200,000,000 | ||
Morgan Stanley [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Capital Leases, Future Minimum Payments Due [Abstract] | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR, plus a margin | ||
Line of Credit [Member] | Citibank [Member] | Revolving Credit Facility and Letter of Credit Facility [Member] | |||
Capital Leases, Future Minimum Payments Due [Abstract] | |||
Long-term Line of Credit | $ 0 | $ 0 | |
Line of Credit Facility, Current Borrowing Capacity | $ 425,000,000 | ||
Line of Credit [Member] | Citibank [Member] | Revolving Credit Facility and Letter of Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Capital Leases, Future Minimum Payments Due [Abstract] | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR, plus a margin | ||
A-320-200 [Member] | |||
Debt Instrument [Line Items] | |||
Capital Lease Obligations, Number of Aircraft | aircraft | 4 | 4 | |
A-321-200 [Member] | |||
Debt Instrument [Line Items] | |||
Capital Lease Obligations, Number of Aircraft | aircraft | 2 | 2 | |
Aircraft [Domain] | |||
Debt Instrument [Line Items] | |||
Capital leases | $ 253,000,000 | $ 253,000,000 | |
Capital Leases, Future Minimum Payments Due [Abstract] | |||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 23,000,000 | ||
Capital Leases, Future Minimum Payments Due in Two Years | 23,000,000 | ||
Capital Leases, Future Minimum Payments Due in Three Years | 35,000,000 | ||
Capital Leases, Future Minimum Payments Due in Four Years | 39,000,000 | ||
Capital Leases, Future Minimum Payments Due in Five Years | 9,000,000 | ||
Thereafter | 14,000,000 | ||
Non Public Debt Fixed Rate Equipment Notes Due Through Two Thousand Twenty Six [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 712,000,000 | $ 843,000,000 | |
Public Debt 6.75% convertible debentures due in 2039 [Member] | |||
Debt Instrument [Line Items] | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 17.6 | ||
Debt Conversion, Original Debt, Amount | $ 86,000,000 | ||
Public Debt 5.5% convertible debentures due in 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 15.2 | ||
Debt Conversion, Original Debt, Amount | $ 68,000,000 |
JFK Terminal 5 (Details)
JFK Terminal 5 (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)aft²airport_gate | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Capital Leases, Future Minimum Payments Due in Two Years | $ 40 | ||
Principal Reduction of Construction Obligation Due in Next 12 Months | 17 | ||
Capital Leases, Future Minimum Payments Due in Three Years | 40 | ||
Capital Leases, Future Minimum Payments Due in Four Years | $ 40 | ||
JFK Terminal 5 (Textual) [Abstract] | |||
Responsible for construction under facility lease agreement of 26-gate terminal | ft² | 635,000 | ||
Number of Gates in a Terminal | airport_gate | 26 | ||
Number of International Arrival Gates, New Gates and Gates Converted from T5 | airport_gate | 6 | ||
Number of International Arrival Gates, New Gates | airport_gate | 3 | ||
Number of International Arrival Gates, Gates Converted from T5 | airport_gate | 3 | ||
Lease agreement extension, additional area of property | a | 19 | ||
Assets constructed for others | $ 561 | $ 561 | |
Non-cancelable lease term | 25 years | ||
Amortization expense | $ 22 | 23 | $ 23 |
Capital Leases, Future Minimum Payments Due in Five Years | 40 | ||
Construction obligation, 2016 | 18 | ||
Principal Reduction of Construction Obligation Due in Next 3 Years | 19 | ||
Principal Reduction of Construction Obligation Due in Next 4 Years | 20 | ||
Principal Reduction of Construction Obligation Due in Next 5 Years | 21 | ||
Interest Expense, Lessee, Assets under Capital Lease | 24 | $ 25 | $ 25 |
Capital Leases, Future Minimum Payments Due Thereafter | 456 | ||
JFK Terminal 5 [Member] | |||
JFK Terminal 5 (Textual) [Abstract] | |||
Total costs incurred for the elements of the project subject to underlying ground lease | 637 | ||
Leasehold improvements included in ground property and equipment | 76 | ||
JFK Terminal 5 International [Member] | |||
JFK Terminal 5 (Textual) [Abstract] | |||
Total costs incurred for the elements of the project subject to underlying ground lease | $ 207 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 26, 2017 | Sep. 12, 2017 | Apr. 28, 2017 | Mar. 07, 2017 | Nov. 08, 2016 | Jun. 17, 2015 | Sep. 26, 2017 | Nov. 18, 2015 | Apr. 24, 2017 | Apr. 24, 2017 | Dec. 30, 2016 | Dec. 30, 2016 | Dec. 29, 2016 | Dec. 29, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Sep. 30, 2017 | Jul. 24, 2017 | Jul. 24, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 15, 2015 | Sep. 15, 2015 | Sep. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 08, 2017 | Sep. 11, 2017 | Apr. 27, 2017 | Dec. 07, 2016 | Nov. 07, 2016 | Sep. 10, 2015 | Jun. 16, 2015 | Sep. 30, 2012 |
Stock repurchase program, period in force | 5 years | ||||||||||||||||||||||||||||||||||||||||
Net income | $ 672 | $ 179 | $ 211 | $ 85 | $ 172 | $ 199 | $ 181 | $ 207 | $ 1,147 | $ 759 | $ 677 | ||||||||||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 750 | $ 500 | $ 250 | ||||||||||||||||||||||||||||||||||||||
Payment for Accelerated Share Repurchase Program - GS | $ 60 | ||||||||||||||||||||||||||||||||||||||||
Treasury Shares Acquired - GS | 2,700,000 | 2,900,000 | 200,000 | ||||||||||||||||||||||||||||||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share - GS | $ 20.74 | ||||||||||||||||||||||||||||||||||||||||
Payment for Accelerated Share Repurchase Program - MS | $ 60 | ||||||||||||||||||||||||||||||||||||||||
Treasury Shares Acquired - MS | 2,700,000 | 2,900,000 | 200,000 | ||||||||||||||||||||||||||||||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share - MS | $ 20.93 | ||||||||||||||||||||||||||||||||||||||||
Payments for repurchase of common stock | $ 77 | ||||||||||||||||||||||||||||||||||||||||
Stock repurchase program, authorized amount | 25,000,000 | ||||||||||||||||||||||||||||||||||||||||
Common Stock reserved for issuance | 26,600,000 | 26,600,000 | |||||||||||||||||||||||||||||||||||||||
Treasury Stock, Shares, Acquired | 1,500,000 | 5,400,000 | 5,400,000 | 4,100,000 | 6,100,000 | 6,900,000 | 3,000,000 | 800,000 | 4,900,000 | 1,400,000 | 6,800,000 | 700,000 | 18,700,000 | 5,800,000 | 6,800,000 | ||||||||||||||||||||||||||
Treasury Stock, Shares | 96,624,790 | 77,000,000 | 96,624,790 | 77,000,000 | |||||||||||||||||||||||||||||||||||||
10B5 Share Repurchase, Maximum Daily Repurchase | 778,460 | ||||||||||||||||||||||||||||||||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 18.86 | $ 20.23 | $ 21.99 | $ 22.06 | |||||||||||||||||||||||||||||||||||||
Treasury Stock Acquired, Repurchase Authorization | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 100 | $ 380 | $ 120 | $ 380 | $ 120 | $ 130 | $ 150 | $ 150 | |||||||||||||||||||||||||||||||||
Scenario, Forecast [Member] | |||||||||||||||||||||||||||||||||||||||||
Stock repurchase program, period in force | 3 years | ||||||||||||||||||||||||||||||||||||||||
End Date of Amended 2016 Repurchase Authorization | Dec. 31, 2019 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | Sep. 26, 2017 | Sep. 12, 2017 | Apr. 28, 2017 | Mar. 07, 2017 | Jun. 17, 2015 | Sep. 26, 2017 | Nov. 18, 2015 | Apr. 24, 2017 | Apr. 24, 2017 | Dec. 31, 2015 | Dec. 31, 2017 | Sep. 30, 2017 | Jul. 24, 2017 | Jul. 24, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 15, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 11, 2017 | Apr. 27, 2017 | Jun. 16, 2015 |
Numerator: | |||||||||||||||||||||||||||
Net income | $ 672 | $ 179 | $ 211 | $ 85 | $ 172 | $ 199 | $ 181 | $ 207 | $ 1,147 | $ 759 | $ 677 | ||||||||||||||||
Interest on Convertible Debt, Net of Tax and Profit Sharing | 0 | 2 | 4 | ||||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ 1,147 | $ 761 | $ 681 | ||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||
Weighted average shares outstanding for basic earnings per share | 328.7 | 326.5 | 315.1 | ||||||||||||||||||||||||
Employee stock options and restricted stock units | 1.7 | 2.1 | 2.8 | ||||||||||||||||||||||||
Convertible debt | 0 | 13.6 | 26.9 | ||||||||||||||||||||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 330.4 | 342.2 | 344.8 | ||||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||||||||
Treasury Stock, Shares, Acquired | 1.5 | 5.4 | 5.4 | 4.1 | 6.1 | 6.9 | 3 | 0.8 | 4.9 | 1.4 | 6.8 | 0.7 | 18.7 | 5.8 | 6.8 | ||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 100 | $ 380 | $ 120 | $ 380 | $ 120 | $ 130 | $ 150 | $ 150 | |||||||||||||||||||
Shares excluded from EPS calculation (in millions): | |||||||||||||||||||||||||||
Treasury Stock Acquired, Repurchase Authorization | 3,000,000 | ||||||||||||||||||||||||||
Earnings Per Share (Textual) [Abstract] | |||||||||||||||||||||||||||
Common stock lent to share borrower | 1.4 | 1.4 |
EarningsPer Share Convertible D
EarningsPer Share Convertible Debt (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Sep. 11, 2017 | Apr. 27, 2017 | Mar. 07, 2017 | Jun. 16, 2015 | |
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 120 | $ 380 | $ 130 | $ 150 | $ 100 | $ 150 | |
Public Debt Six Point Seven Five Percentage Convertible Debentures Due In Two Thousand Thirty Nine [Member] | |||||||
Debt Conversion, Original Debt, Amount | $ 86 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 17.6 | ||||||
Public Debt Five Point Five Percentage Convertible Debentures Due In Two Thousand Thirty Eight [Member] | |||||||
Debt Conversion, Original Debt, Amount | $ 68 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 15.2 |
EarningsPer Share Share Repurch
EarningsPer Share Share Repurchases (Details) - USD ($) $ in Millions | Sep. 26, 2017 | Sep. 12, 2017 | Apr. 28, 2017 | Mar. 07, 2017 | Jun. 17, 2015 | Sep. 26, 2017 | Nov. 18, 2015 | Apr. 24, 2017 | Apr. 24, 2017 | Jul. 24, 2017 | Jul. 24, 2017 | Sep. 15, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 11, 2017 | Apr. 27, 2017 | Jun. 16, 2015 |
Earnings Per Share [Abstract] | ||||||||||||||||||
Treasury Stock, Shares, Acquired | 1,500,000 | 5,400,000 | 5,400,000 | 4,100,000 | 6,100,000 | 6,900,000 | 3,000,000 | 4,900,000 | 800,000 | 6,800,000 | 1,400,000 | 700,000 | 18,700,000 | 5,800,000 | 6,800,000 | |||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 100 | $ 380 | $ 120 | $ 130 | $ 150 | $ 150 | ||||||||||||
Treasury Stock, Shares | 96,624,790 | 77,000,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | 19 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Jan. 01, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (0.4) | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 10.90 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0.4 | 0.4 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 0 | $ 10.90 | $ 10.90 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 21.6 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | |||||
Summary of restricted stock unit activity | ||||||
Allocated Share-based Compensation Expense | $ 29 | $ 23 | $ 20 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 7.5 | |||||
Period For Shares Issuance Following Departure Of Director | six months and one day | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |||||
Period For Successive Overlapping | 6 months | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 2.5 | 2.2 | 1.3 | |||
Percentage Of Voting Interests To Be Acquired For Business Combination Minimum | 50.00% | |||||
Exercise Price Of Purchasing Rights As Percentage Of Fair Market Value Per Share In Case Of Acquisition | 85.00% | |||||
Incentive Compensation Plan Two Thousand Eleven [Member] | ||||||
Summary of restricted stock unit activity | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 15 | |||||
Restricted Stock Unit Activity Under 2011 Plan [Member] | ||||||
Summary of restricted stock unit activity | ||||||
Nonvested shares, beginning balance | 1.8 | |||||
Nonvested, Weighted average grant date fair value, beginning balance | $ 16.77 | |||||
Restricted stock unit activity granted, shares | 0.9 | |||||
Restricted stock unit activity granted, weighted average grant date fair value | $ 19.76 | $ 22.95 | $ 17.09 | |||
Restricted stock unit activity vested, shares | (1) | |||||
Restricted stock unit activity vested, weighted average grant date fair value | $ 14.04 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (0.1) | |||||
Restricted stock unit activity forfeited, weighted average grant date fair value | $ 19.69 | |||||
Nonvested shares, ending balance | 1.6 | 1.8 | 1.8 | |||
Nonvested, weighted average grant date fair value, ending balance | $ 20.14 | $ 16.77 | $ 16.77 | |||
Stock Option 2002 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 4 | $ 6 | $ 34 | |||
Summary of restricted stock unit activity | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||
Proceeds from Stock Options Exercised | $ 4 | 10 | 59 | |||
Crewmember Stock Purchase Plan 2011 [Member] | ||||||
Summary of restricted stock unit activity | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 8 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15.00% | |||||
Employee Stock Purchase Plan (ESPP), Expense | $ 8 | $ 6 | $ 5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 17.46 | $ 15.88 | $ 19.25 | $ 15.88 | ||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 20 | $ 30 | $ 33 | |||
Summary of restricted stock unit activity | ||||||
Nonvested shares, ending balance | 2.1 | |||||
Restricted Stock Units (RSUs) [Member] | Restricted Stock Unit Activity Under 2011 Plan [Member] | ||||||
Summary of restricted stock unit activity | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Restricted Stock Units (RSUs) [Member] | Restricted Stock Unit Activity Under Amended Two Zero Zero Two Plan [Member] | ||||||
Summary of restricted stock unit activity | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Deferred Stock Units (DSU's) [Member] | ||||||
Summary of restricted stock unit activity | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Award Restricted Stock Units Vesting Period Minimum | 1 year | |||||
Share Based Compensation Arrangement By Share Based Payment Award Award Restricted Stock Units Vesting Period Maximum | 3 years | |||||
Crewmember Stock Purchase Plan 2011 [Member] | ||||||
Summary of restricted stock unit activity | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 15 |
Share-Based Compensation (Det55
Share-Based Compensation (Details 1) shares in Millions | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Summary of stock option activity | |
Outstanding at beginning of year | shares | 0.4 |
Outstanding at beginning of year, per share | $ / shares | $ 10.90 |
Exercised | shares | (0.4) |
Exercised, per share | $ / shares | $ 10.90 |
Outstanding at end of year | shares | 0 |
Outstanding at end of year, per share | $ / shares | $ 0 |
Vested at end of year | shares | 0 |
Vested at end of year, per share | $ / shares | $ 0 |
Share-Based Compensation (Det56
Share-Based Compensation (Details 3) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | 19 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 7.5 | |||
Summary of CSPP share reserve activity | ||||
Common stock purchased | (2.5) | (2.2) | (1.3) | |
Stock Option 2002 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 4 | $ 6 | $ 34 |
Share-Based Compensation (Det57
Share-Based Compensation (Details Textual) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | 19 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Jan. 01, 2012 | Dec. 31, 2011 | |
Share-Based Compensation (Textual) [Abstract] | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 21.6 | |||||
Number of years expected to recognize stock-based compensation | 1 year | |||||
Allocated Share-based Compensation Expense | $ 29 | $ 23 | $ 20 | |||
Shares issued following the Director's departure from the Board | six months and one day | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |||||
Outstanding voting securities | 50.00% | |||||
Exercise price of purchasing rights as percentage of fair market value per share in case of acquisition | 85.00% | |||||
Common stock purchased | (2.5) | (2.2) | (1.3) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 7.5 | |||||
Incentive Compensation Plan 2011 [Member] | ||||||
Share-Based Compensation (Textual) [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 15 | |||||
Restricted Stock Unit Activity Under 2011 Plan [Member] | ||||||
Share-Based Compensation (Textual) [Abstract] | ||||||
Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | 1.6 | 1.8 | 1.8 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 19.76 | $ 22.95 | $ 17.09 | |||
Crewmember Stock Purchase Plan 2011 [Member] | ||||||
Share-Based Compensation (Textual) [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 8 | |||||
Employees contribution towards purchase of common stock | 10.00% | |||||
Purchase price discount based upon the stock price | 15.00% | |||||
Employee Stock Purchase Plan (ESPP), Expense | $ 8 | $ 6 | $ 5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 17.46 | $ 15.88 | $ 19.25 | $ 15.88 | ||
Stock Option 2002 Plan [Member] | ||||||
Share-Based Compensation (Textual) [Abstract] | ||||||
Award Expiration Period | 10 years | |||||
Total intrinsic value of date of exercise, options exercised | $ 4 | $ 6 | $ 34 | |||
Cash from stock option exercises | 4 | 10 | 59 | |||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 20 | $ 30 | $ 33 | |||
Share-Based Compensation (Textual) [Abstract] | ||||||
Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | 2.1 | |||||
Restricted Stock Units (RSUs) [Member] | Restricted Stock Unit Activity Under 2011 Plan [Member] | ||||||
Share-Based Compensation (Textual) [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Restricted Stock Units (RSUs) [Member] | Restricted Stock Unit 2002 Plan [Member] | ||||||
Share-Based Compensation (Textual) [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Deferred Stock Units (DSU's) [Member] | ||||||
Share-Based Compensation (Textual) [Abstract] | ||||||
Minimum Vesting Period | 1 year | |||||
Maximum Vesting Period | 3 years | |||||
Crewmember Stock Purchase Plan 2011 [Member] | ||||||
Share-Based Compensation (Textual) [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 15 |
LiveTV (Details)
LiveTV (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Revenue, Net | $ 727 | $ 619 | $ 523 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ||
Statutory Tax Rate After 2017 Reform | 21.00% | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | $ 23 | $ 0 | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | (570) | 0 | $ 0 |
Other Tax Expense (Benefit) | 570 | ||
Deferred: | |||
Federal | (361) | 245 | 351 |
State | 25 | 25 | 26 |
Deferred Foreign Income Tax Expense (Benefit) | 23 | 0 | 0 |
Deferred income tax (benefit) expense | (313) | 270 | 377 |
Current Federal Tax Expense (Benefit) | 94 | 129 | 20 |
Current State and Local Tax Expense (Benefit) | 18 | 26 | 16 |
Current Foreign Tax Expense (Benefit) | (25) | 32 | 7 |
Current income tax expense | 87 | 187 | 43 |
Total income tax (benefit) expense | $ (226) | $ 457 | $ 420 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of income taxes differed from the federal income tax statutory rate | |||
Income tax expense at statutory rate | $ 322 | $ 425 | $ 384 |
Increase resulting from: | |||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 28 | 34 | 28 |
Other, net | $ (6) | $ (2) | $ 8 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Employee benefits | $ 32 | $ 41 |
Terminal 5 lease | 95 | 121 |
Rent expense | 22 | 34 |
Other | 6 | 8 |
Deferred Tax Assets, Net of Valuation Allowance | 223 | 242 |
Deferred tax liabilities: | ||
Accelerated depreciation | (1,256) | (1,596) |
Deferred Tax Liabilities, Gross | (1,256) | (1,596) |
Deferred Tax Liabilities, Net | $ (1,033) | $ (1,354) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits | $ 31 | $ 26 | $ 21 | $ 16 |
Deferred Tax Liabilities, Gross | (1,256) | (1,596) | ||
Deferred Tax Liabilities, Property, Plant and Equipment | (1,256) | (1,596) | ||
Deferred Tax Assets, Net of Valuation Allowance | 223 | 242 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 32 | 41 | ||
Deferred Tax Assets, Other | 6 | 8 | ||
Deferred Tax Liabilities, Net | (1,033) | (1,354) | ||
Deferred Tax Asset Tax Deferred T5 | 45 | 38 | ||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 28 | 34 | 28 | |
Income Taxes Paid | 139 | 173 | 42 | |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | (6) | (2) | 8 | |
Rent expense | 22 | 34 | ||
Deferred Tax Assets, Deferred Income | 95 | 121 | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 2 | 10 | 0 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | 8 | |||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 6 | 5 | 6 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (3) | (4) | (1) | |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 322 | 425 | 384 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | (6) | $ 0 | |
Deferred Tax Liabilities, Net, Noncurrent | 1,033 | $ 1,354 | ||
Unrecognized tax benefits would impact on effective tax rate | $ 15 |
Employee Retirement Plan (Detai
Employee Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit Sharing Calculation Trigger, Pretax Margin | 18.00% | ||
Percentage of Eligible Pre-tax Profits the Company Contributes to Profit Sharing when Pre-tax Margin is above 18% | 20.00% | ||
Percentage of Eligible Pre-tax Profits the Company Contributes to Profit Sharing until the Pre-tax Margin is 18% | 10.00% | ||
Employee retirement plan (Textual) [Abstract] | |||
Percentage of compensation in cash | 100.00% | ||
Percentage of employees' pay | 5.00% | ||
Years of service | 5 years | ||
Percentage of employee's pay for profit sharing match | 5.00% | ||
Period of discretionary contribution | 3 years | ||
Percentage of Its Eligible Pre Tax Profits for which the employer contributes to the Plan. | 15.00% | ||
Percentage of FAA licensed employees gross pay for which ER can contribute discretionary profit sharing contribution to plan | 3.00% | ||
Defined Contribution Plan, Cost | $ 182 | $ 290 | $ 256 |
Commitments (Details)
Commitments (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($)aircraftengine | Jul. 01, 2016aircraft | Oct. 31, 2015aircraft | Nov. 30, 2014aircraft | Oct. 31, 2013aircraft | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Other Commitment, Due in Next Twelve Months | $ | $ 800 | ||||
Purchase Obligation, Due in Second Year | $ | 1,000 | ||||
Purchase Obligation, Due in Third Year | $ | 1,400 | ||||
Purchase Obligation, Due in Fourth Year | $ | 1,500 | ||||
Purchase Obligation, Due in Fifth Year | $ | 1,500 | ||||
Other Commitment, Due in Fifth Year | $ | 1,100 | ||||
Commitments (Textual) [Abstract] | |||||
Incremental A321 Purchase Deliveries | 30 | ||||
Incremental A321neo Deliveries | 15 | ||||
Incremental A321ceo Deliveries | 15 | ||||
Restricted assets pledged related to workers compensation insurance policies and other business partner agreements | $ | $ 24 | ||||
Employment agreement | 5 years | ||||
Employment Agreement Automatic Renewal Term | 5 years | ||||
Renewal notice period | 90 days | ||||
A-320 [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Deliver Change | 8 | ||||
Original E-190 Orders - 2014-2018 [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Deliver Change | 24 | ||||
Converted A-321-Neo Orders [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Change | 10 | ||||
Original A320 Orders - 2016-2020 [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Deliver Change | 8 | ||||
A-321 deferrals converted to A-321-Neo Orders [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Change | 10 | ||||
Original A-321 Orders - 2016-2020 [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Deliver Change | 13 | ||||
A-320 [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Change | 3 | ||||
A-321 Neo [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Unrecorded Unconditional Purchase Obligation, Aircraft Purchase Change | 5 | ||||
Original A-321LD Orders in 2016 [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Converted Configuration Aircraft | 10 | ||||
E-190 [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Number of aircraft and spare engine orders by the firm | 24 | ||||
Spare Engines [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Number of aircraft and spare engine orders by the firm | engine | 10 | ||||
A-321 [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Number of aircraft and spare engine orders by the firm | 10 | ||||
Number Of Aircraft Scheduled To Receive Next Year | 10 | ||||
A-320-Neo [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Number of aircraft and spare engine orders by the firm | 25 | ||||
A-321 Neo [Member] | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||
Number of aircraft and spare engine orders by the firm | 60 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Contingencies (Textual) [Abstract] | |
Maximum period of limit for loan repayment | 15 years |
Maximum period of limit for repayment regarding leases with foreign lenders | 20 years |
Maximum period of contract range of specified parties related to legal liability | 25 years |
Asset retirement obligations, noncurrent | $ 4 |
Financial Derivative Instrume66
Financial Derivative Instruments and Risk Management (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)bbl | Dec. 31, 2016USD ($)bbl | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | |||
Gain (Loss) on Price Risk Derivatives, Net | $ 0 | ||
Percentage fuel covered under derivative contracts | |||
Percentage fuel hedged | 0.00% | ||
Fuel derivatives [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 22,000,000 | |
Percentage fuel covered under derivative contracts | |||
Longest remaining term (months) | 0 months | 12 months | |
Barrels Of Fuel Covered Under Derivative Contracts | bbl | 0 | 1,920,000 | |
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | $ 0 | $ (22,000,000) | |
Price Risk Cash Flow Hedge Effectiveness Percentage | 10.00% | 12.00% | 17.00% |
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 | |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 22,000,000 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | |
Interest Expense [Member] | Interest Rate Contract [Member] | |||
Percentage fuel covered under derivative contracts | |||
Gain from Components Excluded from Assessment of Cash Flow Hedge Effectiveness | (1,000,000) | ||
Loss from Components Excluded from Assessment of Cash Flow Hedge Effectiveness | $ 1,000,000 | ||
Aircraft Fuel Expense [Member] | Fuel derivatives [Member] | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (15,000,000) | (9,000,000) | 126,000,000 |
Comprehensive Income [Member] | Fuel derivatives [Member] | |||
Percentage fuel covered under derivative contracts | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 6,000,000 | (34,000,000) | $ 29,000,000 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 0 | ||
Prepaid Expenses and Other [Member] | Fuel derivatives [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Current | $ 0 | 22,000,000 | |
Fair Value, Measurements, Recurring [Member] | Aircraft Fuel Derivatives [Member] | |||
Derivative [Line Items] | |||
Derivative Asset | 22,000,000 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Aircraft Fuel Derivatives [Member] | |||
Derivative [Line Items] | |||
Derivative Asset | $ 0 |
Financial Derivative Instrume67
Financial Derivative Instruments and Risk Management (Details 1) - Fuel derivatives [Member] | 12 Months Ended | |
Dec. 31, 2017USD ($)bbl | Dec. 31, 2016USD ($)bbl | |
Derivative instrument in statement of financial position | ||
Longest remaining term (months) | 0 months | 12 months |
Hedged volume (barrels, in thousands) | bbl | 0 | 1,920,000 |
Estimated amount of existing (gains) expected to be reclassified into earnings in the next 12 months | $ 0 | $ 22,000,000 |
Prepaid expenses and other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | $ 0 | $ 22,000,000 |
Financial Derivative Instrume68
Financial Derivative Instruments and Risk Management (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fuel derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Longest remaining term (months) | 0 months | 12 months | |
Percentage of actual consumption economically hedged | 10.00% | 12.00% | 17.00% |
Aircraft fuel expense [Member] | Fuel derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedge effectiveness (gains) losses recognized in aircraft fuel expense | $ 15 | $ 9 | $ (126) |
Other income (expense) [Member] | Fuel derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Gains) losses on derivatives not qualifying for hedge accounting recognized in other expense | 0 | 0 | (1) |
Comprehensive Income [Member] | Fuel derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedge (gains) losses on derivatives recognized in comprehensive income | $ (6) | $ 34 | (29) |
Interest expense [Member] | Interest Rate Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss from Components Excluded from Assessment of Cash Flow Hedge Effectiveness | $ 1 |
Financial Derivative Instrume69
Financial Derivative Instruments and Risk Management (Details 3) - Fuel derivatives [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 22 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 22 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 0 | $ 0 |
Financial Derivative Instrume70
Financial Derivative Instruments and Risk Management (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Percentage Fuel Hedged | 0.00% | ||
Gain (Loss) on Price Risk Derivatives, Net | $ 0 | ||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of interest rate cash flow hedge derivatives | $ 0 | ||
Interest Rate Contract [Member] | Other income (expense) [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gain (Loss) on Price Risk Derivatives, Net | $ 0 |
Fair Value (Details)
Fair Value (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | $ 0 | $ 0 |
Assets | ||
Available-for-sale investment securities | 136,000,000 | 335,000,000 |
Recurring [Member] | ||
Assets | ||
Cash and cash equivalents | 173,000,000 | 313,000,000 |
Available-for-sale investment securities | 136,000,000 | 335,000,000 |
Recurring [Member] | Aircraft Fuel Derivatives [Member] | ||
Assets | ||
Aircraft fuel derivatives | 22,000,000 | |
Recurring [Member] | Level 1 [Member] | ||
Assets | ||
Cash and cash equivalents | 173,000,000 | 313,000,000 |
Available-for-sale investment securities | 0 | 115,000,000 |
Recurring [Member] | Level 1 [Member] | Aircraft Fuel Derivatives [Member] | ||
Assets | ||
Aircraft fuel derivatives | 0 | |
Recurring [Member] | Level 2 [Member] | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale investment securities | 136,000,000 | 220,000,000 |
Recurring [Member] | Level 2 [Member] | Aircraft Fuel Derivatives [Member] | ||
Assets | ||
Aircraft fuel derivatives | 22,000,000 | |
Recurring [Member] | Level 3 [Member] | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale investment securities | $ 0 | 0 |
Recurring [Member] | Level 3 [Member] | Aircraft Fuel Derivatives [Member] | ||
Assets | ||
Aircraft fuel derivatives | $ 0 |
Fair Value (Details Textual)
Fair Value (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Cash Equivalent Maturity Period Description | 90 days or less | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | $ 0 | $ 0 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated gains (losses), beginning balance | $ 13,000,000 | $ (3,000,000) | $ (63,000,000) |
Reclassifications into earnings | (9,000,000) | (6,000,000) | 78,000,000 |
Reclassification into earnings, Tax | (6,000,000) | (4,000,000) | 49,000,000 |
Change in fair value | 4,000,000 | (22,000,000) | 18,000,000 |
Change in fair value, Tax | (2,000,000) | 12,000,000 | (11,000,000) |
Accumulated gains (losses), ending balance | 0 | 13,000,000 | (3,000,000) |
Aircraft Fuel Derivatives [Member] | |||
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated gains (losses), beginning balance | 13,000,000 | (4,000,000) | (63,000,000) |
Reclassifications into earnings | (9,000,000) | (5,000,000) | 77,000,000 |
Change in fair value | 4,000,000 | (22,000,000) | 18,000,000 |
Accumulated gains (losses), ending balance | 0 | 13,000,000 | (4,000,000) |
Interest Rate Contract [Member] | |||
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated gains (losses), beginning balance | 0 | 1,000,000 | 0 |
Reclassifications into earnings | 0 | (1,000,000) | 1,000,000 |
Change in fair value | 0 | 0 | 0 |
Accumulated gains (losses), ending balance | $ 0 | $ 0 | $ 1,000,000 |
Geographic Information (Details
Geographic Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($)destination$ / shares | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)destination | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Earnings Per Share, Diluted, Pro Forma Adjustment | $ / shares | $ 1.76 | ||||||||||
Summarization of operating revenues by geographic regions | |||||||||||
Operating revenues | $ | $ 1,756 | $ 1,813 | $ 1,842 | $ 1,604 | $ 1,641 | $ 1,732 | $ 1,643 | $ 1,616 | $ 7,015 | $ 6,632 | $ 6,416 |
Domestic [Member] | |||||||||||
Summarization of operating revenues by geographic regions | |||||||||||
Operating revenues | $ | 5,001 | 4,751 | 4,521 | ||||||||
Latin America [Member] | |||||||||||
Summarization of operating revenues by geographic regions | |||||||||||
Operating revenues | $ | $ 2,014 | $ 1,881 | $ 1,895 | ||||||||
Latin America Destination [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number Of Destinations | destination | 33 | 33 | |||||||||
PUERTO RICO | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number Of Destinations | destination | 3 | 3 | |||||||||
U.S Virgin Islands [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number Of Destinations | destination | 2 | 2 |
Geographic Information (Detai75
Geographic Information (Details Textual) | Dec. 31, 2017destination |
Latin America Destination [Member] | |
Geographic Information (Textual) [Abstract] | |
Number of destinations | 33 |
Puerto Rico [Member] | |
Geographic Information (Textual) [Abstract] | |
Number of destinations | 3 |
U.S Virgin Islands [Member] | |
Geographic Information (Textual) [Abstract] | |
Number of destinations | 2 |
Quarterly Financial Data (Una76
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Earnings Per Share, Diluted, Pro Forma Adjustment | $ 1.76 | ||||||||||
Operating revenues | $ 1,756 | $ 1,813 | $ 1,842 | $ 1,604 | $ 1,641 | $ 1,732 | $ 1,643 | $ 1,616 | $ 7,015 | $ 6,632 | $ 6,416 |
Operating income | 189 | 310 | 354 | 147 | 296 | 354 | 313 | 349 | 1,000 | 1,312 | 1,216 |
Net income | $ 672 | $ 179 | $ 211 | $ 85 | $ 172 | $ 199 | $ 181 | $ 207 | $ 1,147 | $ 759 | $ 677 |
Basic earnings per share | $ 2.09 | $ 0.55 | $ 0.64 | $ 0.25 | $ 0.51 | $ 0.61 | $ 0.56 | $ 0.64 | $ 3.49 | $ 2.32 | $ 2.15 |
Diluted earnings per share(1) | $ 2.08 | $ 0.55 | $ 0.64 | $ 0.25 | $ 0.50 | $ 0.58 | $ 0.53 | $ 0.61 | $ 3.47 | $ 2.22 | $ 1.98 |
Valuation and Qualifying Acco77
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation and Qualifying Accounts | ||
Balance at beginning of period | $ 16 | $ 14 |
Additions Charged to Costs and Expenses | 2 | 6 |
Deductions | 1 | 4 |
Balance at end of period | 17 | 16 |
Allowance for doubtful accounts [Member] | ||
Valuation and Qualifying Accounts | ||
Balance at beginning of period | 6 | 6 |
Additions Charged to Costs and Expenses | 0 | 4 |
Deductions | 1 | 4 |
Balance at end of period | 5 | 6 |
Allowance for obsolete inventory parts [Member] | ||
Valuation and Qualifying Accounts | ||
Balance at beginning of period | 10 | 8 |
Additions Charged to Costs and Expenses | 2 | 2 |
Deductions | 0 | 0 |
Balance at end of period | $ 12 | $ 10 |