Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 24, 2014 | Jun. 30, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'HAWAIIAN HOLDINGS INC | ' | ' |
Entity Central Index Key | '0001172222 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $319 |
Entity Common Stock, Shares Outstanding | ' | 52,423,085 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Revenue: | ' | ' | ' |
Passenger | $1,942,829 | $1,767,041 | $1,480,663 |
Other | 213,036 | 195,312 | 169,796 |
Total | 2,155,865 | 1,962,353 | 1,650,459 |
Operating Expenses: | ' | ' | ' |
Aircraft fuel, including taxes and delivery | 698,802 | 631,741 | 513,284 |
Wages and benefits | 427,438 | 376,574 | 321,241 |
Aircraft rent | 108,534 | 98,786 | 112,883 |
Maintenance materials and repairs | 203,387 | 183,552 | 169,851 |
Aircraft and passenger servicing | 120,635 | 103,825 | 82,250 |
Commissions and other selling | 125,900 | 114,324 | 96,264 |
Depreciation and amortization | 83,050 | 85,599 | 66,262 |
Other rentals and landing fees | 81,317 | 85,623 | 72,445 |
Other | 173,055 | 152,931 | 125,682 |
Lease termination charges | ' | ' | 70,014 |
Total | 2,022,118 | 1,832,955 | 1,630,176 |
Operating Income | 133,747 | 129,398 | 20,283 |
Nonoperating Income (Expense): | ' | ' | ' |
Interest expense and amortization of debt discounts and issuance costs | -50,453 | -43,522 | -24,521 |
Interest income | 639 | 580 | 1,514 |
Capitalized interest | 12,625 | 10,524 | 7,771 |
Losses on fuel derivatives | -5,334 | -11,330 | -6,862 |
Other, net | -4,814 | 136 | 733 |
Total | -47,337 | -43,612 | -21,365 |
Income (Loss) Before Income Taxes | 86,410 | 85,786 | -1,082 |
Income tax expense | 34,556 | 32,549 | 1,567 |
Net Income (Loss) | $51,854 | $53,237 | ($2,649) |
Net Income (Loss) Per Common Stock Share: | ' | ' | ' |
Basic (in dollars per share) | $1 | $1.04 | ($0.05) |
Diluted (in dollars per share) | $0.98 | $1.01 | ($0.05) |
Weighted Average Number of Common Stock Shares Outstanding: | ' | ' | ' |
Basic (in shares) | 52,099 | 51,314 | 50,733 |
Diluted (in shares) | 53,155 | 52,535 | 50,733 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income (Loss) | ' | ' | ' |
Net Income (Loss) | $51,854 | $53,237 | ($2,649) |
Other comprehensive income (loss), net: | ' | ' | ' |
Net change related to employee benefit plans, net of tax expense of $38,886 for 2013 and tax benefit of $9,224 and $38,822 for 2012 and 2011, respectively | 61,995 | -11,714 | -67,061 |
Net change in derivative instruments, net of tax expense of $5,696 for 2013 | 9,373 | ' | ' |
Total other comprehensive income (loss), net | 71,368 | -11,714 | -67,061 |
Total comprehensive income (loss), net | $123,222 | $41,523 | ($69,710) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income (Loss) | ' | ' | ' |
Net change related to employee benefit plans, tax expense (benefit) | $38,886 | ($9,224) | ($38,822) |
Net change in derivative instruments, tax expense | $5,696 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $423,384 | $405,880 |
Restricted cash | 19,434 | 5,000 |
Total cash, cash equivalents and restricted cash | 442,818 | 410,880 |
Accounts receivable, net | 74,245 | 80,750 |
Spare parts and supplies, net | 19,767 | 27,552 |
Deferred tax assets, net | 17,325 | 17,675 |
Prepaid expenses and other | 51,652 | 35,001 |
Total | 605,807 | 571,858 |
Property and equipment, net | ' | ' |
Flight equipment | 1,299,861 | 1,000,017 |
Pre-delivery deposits on flight equipment | 188,738 | 193,042 |
Other property and equipment | 172,835 | 125,154 |
Total property and equipment, gross | 1,661,434 | 1,318,213 |
Less accumulated depreciation and amortization | -327,102 | -249,495 |
Total | 1,334,332 | 1,068,718 |
Other Assets: | ' | ' |
Long-term prepayments and other | 91,953 | 55,629 |
Restricted cash | 1,566 | ' |
Deferred tax assets, net | ' | 36,376 |
Intangible assets, net | 23,940 | 26,580 |
Goodwill | 106,663 | 106,663 |
Total Assets | 2,164,261 | 1,865,824 |
Current Liabilities: | ' | ' |
Accounts payable | 89,787 | 82,084 |
Air traffic liability | 409,086 | 388,646 |
Other accrued liabilities | 97,571 | 74,828 |
Current maturities of long-term debt and capital lease obligations | 62,187 | 108,232 |
Total | 658,631 | 653,790 |
Long-Term Debt, less discount, and Capital Lease Obligations | 744,286 | 553,009 |
Other Liabilities and Deferred Credits: | ' | ' |
Accumulated pension and other postretirement benefit obligations | 264,106 | 352,460 |
Other liabilities and deferred credits | 59,424 | 37,963 |
Deferred tax liability, net | 40,950 | ' |
Total | 364,480 | 390,423 |
Commitments and Contingent Liabilities | ' | ' |
Shareholders' Equity: | ' | ' |
Special preferred stock, $0.01 par value per share, three shares issued and outstanding at December 31, 2013 and 2012 | ' | ' |
Common stock, $0.01 par value per share, 52,423,085 and 51,439,934 shares issued and outstanding as of December 31, 2013 and 2012, respectively. | 524 | 514 |
Capital in excess of par value | 269,884 | 264,854 |
Accumulated income | 169,142 | 117,288 |
Accumulated other comprehensive loss, net | -42,686 | -114,054 |
Total | 396,864 | 268,602 |
Total Liabilities and Shareholders' Equity | $2,164,261 | $1,865,824 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Balance Sheets | ' | ' |
Special preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Special preferred stock, shares issued | 3 | 3 |
Special preferred stock, shares outstanding | 3 | 3 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares issued | 52,423,085 | 51,439,934 |
Common stock, shares outstanding | 52,423,085 | 51,439,934 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Treasury Stock | Capital In Excess of Par Value | Accumulated Income | Accumulated Other Comprehensive Income (Loss) | |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2010 | $277,869 | $522 | [1] | ($10,752) | $245,947 | $77,431 | ($35,279) |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | |
Net income (loss) | -2,649 | ' | ' | ' | -2,649 | ' | |
Other comprehensive income (loss) | -67,061 | ' | ' | ' | ' | -67,061 | |
Issuance of 983,151, 710,361,and 508,696 shares of common stock related to stock awards for the years ending 2013, 2012 and 2011, respectively | -1,116 | 6 | [1] | ' | -1,122 | ' | ' |
Share-based compensation expense | 4,302 | ' | ' | 4,302 | ' | ' | |
Convertible note | 19,504 | ' | ' | 19,504 | ' | ' | |
Purchase of convertible note hedges | -19,504 | ' | ' | -19,504 | ' | ' | |
Convertible note issuance costs net of deferred tax benefit of $302 | -463 | ' | ' | -463 | ' | ' | |
Sale of common stock warrants | 11,948 | ' | ' | 11,948 | ' | ' | |
Treasury stock retirement of 2,070,214 shares | ' | -21 | [1] | 10,752 | ' | -10,731 | ' |
Excess tax benefits from stock issuance | 46 | ' | ' | 46 | ' | ' | |
Balance at Dec. 31, 2011 | 222,876 | 507 | [1] | ' | 260,658 | 64,051 | -102,340 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | |
Net income (loss) | 53,237 | ' | ' | ' | 53,237 | ' | |
Other comprehensive income (loss) | -11,714 | ' | ' | ' | ' | -11,714 | |
Issuance of 983,151, 710,361,and 508,696 shares of common stock related to stock awards for the years ending 2013, 2012 and 2011, respectively | 770 | 7 | [1] | ' | 763 | ' | ' |
Share-based compensation expense | 3,433 | ' | ' | 3,433 | ' | ' | |
Balance at Dec. 31, 2012 | 268,602 | 514 | [1] | ' | 264,854 | 117,288 | -114,054 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | |
Net income (loss) | 51,854 | ' | ' | ' | 51,854 | ' | |
Other comprehensive income (loss) | 71,368 | ' | ' | ' | ' | 71,368 | |
Issuance of 983,151, 710,361,and 508,696 shares of common stock related to stock awards for the years ending 2013, 2012 and 2011, respectively | 989 | 10 | [1] | ' | 979 | ' | ' |
Share-based compensation expense | 4,573 | ' | ' | 4,573 | ' | ' | |
Excess tax benefits from stock issuance | -522 | ' | ' | -522 | ' | ' | |
Balance at Dec. 31, 2013 | $396,864 | $524 | [1] | ' | $269,884 | $169,142 | ($42,686) |
[1] | Common Stock-$0.01 par value; 118,000,000 authorized as of December 31, 2013 and 2012. |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Shareholders' Equity | ' | ' | ' |
Issuance of common stock related to stock awards, shares | 983,151 | 710,361 | 508,696 |
Convertible note issuance costs, deferred tax benefit (in dollars) | ' | ' | $302 |
Treasury stock retirement, shares | ' | ' | 2,070,214 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | ' |
Common stock, shares authorized | 118,000,000 | 118,000,000 | ' |
Special preferred stock, par value (in dollars per share) | $0.01 | $0.01 | ' |
Special preferred stock, shares authorized | 2,000,000 | 2,000,000 | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows From Operating Activities: | ' | ' | ' |
Net income (loss) | $51,854 | $53,237 | ($2,649) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Amortization of intangible assets | 2,640 | 18,788 | 23,352 |
Depreciation and amortization of property and equipment | 81,645 | 69,521 | 48,875 |
Deferred income taxes, net | 34,106 | 31,333 | 43,768 |
Stock compensation | 4,573 | 3,516 | 4,302 |
Lease termination charges | ' | ' | 70,014 |
Amortization of debt discounts and issuance costs | 6,949 | 5,599 | 3,932 |
Pension and postretirement benefit cost, net | 12,543 | 11,627 | 1,676 |
Issuance of forward sold miles | ' | ' | -8,747 |
Other, net | -9,986 | -10,039 | -7,530 |
Changes in operating assets and liabilities: | ' | ' | ' |
Restricted cash | ' | 25,930 | -25,706 |
Accounts receivable | 1,318 | 12,698 | -35,408 |
Spare parts and supplies | 5,020 | -6,660 | -7,181 |
Prepaid expenses and other current assets | -6,391 | -2,373 | -7,033 |
Accounts payable | 7,703 | 1,447 | 11,336 |
Air traffic liability | 20,440 | 85,264 | 61,268 |
Other accrued liabilities | 10,765 | 7,459 | 3,240 |
Other assets and liabilities, net | 20,091 | 3,670 | 1,255 |
Net cash provided by operating activities | 243,270 | 311,017 | 178,764 |
Cash Flows From Investing Activities: | ' | ' | ' |
Additions to property and equipment, including pre-delivery deposits | -342,228 | -290,699 | -281,903 |
Proceeds from disposition of property and equipment | 14,414 | ' | ' |
Net cash used in investing activities | -327,814 | -290,699 | -281,903 |
Cash Flows From Financing Activities: | ' | ' | ' |
Proceeds from exercise of stock options | 2,376 | 1,488 | 226 |
Convertible Notes: | ' | ' | ' |
Issuance of convertible notes | ' | ' | 86,250 |
Purchase of call options and sale of common stock warrants, net | ' | ' | -19,504 |
Proceeds from issuance of warrants | ' | ' | 11,948 |
Long-term borrowings | 243,110 | 133,000 | 132,000 |
Repayments of long-term debt and capital lease obligations | -113,592 | -49,129 | -80,023 |
Debt issuance costs | -13,846 | -3,828 | -8,726 |
Change in cash collateral for EETC financing | -16,000 | ' | ' |
Other | ' | -84 | 46 |
Net cash provided by financing activities | 102,048 | 81,447 | 122,217 |
Net increase in cash and cash equivalents | 17,504 | 101,765 | 19,078 |
Cash and cash equivalents - Beginning of Year | 405,880 | 304,115 | 285,037 |
Cash and cash equivalents - End of Year | $423,384 | $405,880 | $304,115 |
Business_and_Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2013 | |
Business and Organization | ' |
Business and Organization | ' |
1. Business and Organization | |
Hawaiian Holdings, Inc. (the "Company," "Holdings," "we," "us" and "our") and its direct wholly-owned subsidiary, Hawaiian Airlines, Inc. (Hawaiian), are incorporated in the State of Delaware. The Company's primary asset is its sole ownership of all issued and outstanding shares of common stock of Hawaiian. | |
Hawaiian is engaged in the scheduled air transportation of passengers and cargo amongst the Hawaiian Islands (the Neighbor Island routes), between the Hawaiian Islands and certain cities in the United States (the North America routes), and between the Hawaiian Islands and the South Pacific, Australia and Asia (the International routes), collectively referred to as our Scheduled Operations. In addition, Hawaiian also operates various charter flights. Hawaiian is the largest airline headquartered in Hawai'i and the eleventh largest domestic airline in the United States based on revenue passenger miles reported by the Research and Innovative Technology Administration Bureau of Transportation Services as of October 31, 2013, the latest data available. As of December 31, 2013, Hawaiian's fleet consisted of 18 Boeing 717-200 aircraft for its Neighbor Island routes, and 12 Boeing 767-300 and 14 Airbus A330-200 aircraft for its North America, International and charter routes. The Company also purchased three ATR42 turboprop aircraft for its "'Ohana by Hawaiian" service to begin in 2014. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
2. Summary of Significant Accounting Policies | |||||||||||
Basis of Presentation | |||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including its principal subsidiary, Hawaiian, through which the Company conducts substantially all of its operations. All significant intercompany balances and transactions have been eliminated upon consolidation. | |||||||||||
Cash Equivalents | |||||||||||
The Company considers all investments with an original maturity of three months or less at the date of purchase to be cash equivalents. | |||||||||||
Restricted Cash | |||||||||||
At December 31, 2013, restricted cash consisted of cash held as collateral for future interest payments owed in connection with the Enhanced Equipment Trust Certificates (EETC) financing which closed in May 2013 and cash held as collateral by institutions that process our credit card transactions for advanced ticket sales. The December 31, 2012 restricted cash balance reflected cash held as collateral by institutions that process our credit card transactions for advanced ticket sales. | |||||||||||
Accounts receivable | |||||||||||
Accounts receivables are carried at net realizable value and primarily consist of amounts due from credit card companies and travel agencies associated with sales of tickets for future travel and amounts due from business partners in the Company's frequent flyer programs. | |||||||||||
Spare Parts and Supplies | |||||||||||
Spare parts and supplies are valued at average cost, and primarily consist of expendable parts for flight equipment and other supplies. An allowance for obsolescence of expendable parts is provided over the estimated useful lives of the related aircraft and engines for spare parts expected to be on hand at the date the aircraft are retired from service. An allowance is also provided to reduce the carrying amount of excess spare parts to the lower of cost or net realizable value. These allowances are based on management's estimates and are subject to change. | |||||||||||
Property, Equipment and Depreciation | |||||||||||
Property and equipment are stated at cost and depreciated on a straight-line basis to their estimated residual values over the asset's estimated useful life. Depreciation begins when the asset is placed into service. Aircraft and related parts begin depreciating on the aircraft's first revenue flight. | |||||||||||
Estimated useful lives and residual values of property and equipment are as follows: | |||||||||||
Boeing 717-200 aircraft and engines | 7 - 11 years, 7 - 34% residual value | ||||||||||
Boeing 767-300 aircraft and engines | 7 - 20 years, 0 - 10% residual value | ||||||||||
Airbus A330-200 aircraft and engines | 25 years, 10% residual value | ||||||||||
Aircraft under capital leases | 8 - 12 years, no residual value | ||||||||||
Flight simulator under capital lease | 25 years, 10% residual value | ||||||||||
Major rotable parts | Average lease term or useful life for related aircraft, 10% - 15% residual value | ||||||||||
Improvements to leased flight equipment | Shorter of lease term or useful life | ||||||||||
Facility leasehold improvements | Shorter of lease term, including assumed lease renewals when renewal is economically compelled at key airports, or useful life | ||||||||||
Furniture, fixtures and other equipment | 3 - 7 years, no residual value | ||||||||||
Capitalized software | 3 - 7 years, no residual value | ||||||||||
Additions and modifications that significantly enhance the operating performance and/or extend the useful lives of property and equipment are capitalized and depreciated over the lesser of the remaining useful life of the asset or the remaining lease term, as applicable. Expenditures that do not improve or extend asset lives are charged to expense as incurred. Pre-delivery deposits are capitalized when paid. | |||||||||||
Aircraft under capital leases are recorded at an amount equal to the present value of minimum lease payments utilizing the Company's incremental borrowing rate at lease inception and amortized on a straight-line basis over the lesser of the remaining useful life of the aircraft or the lease term. The amortization is recorded in depreciation and amortization expense on the Consolidated Statement of Operations. | |||||||||||
The Company capitalizes certain costs related to the acquisition and development of computer software and amortizes these costs using the straight-line method over the estimated useful life of the software. The net book value of computer software, which is included in Other property and equipment on our consolidated balance sheets, was $10.8 million and $15.4 million at December 31, 2013 and 2012, respectively. Amortization expense related to computer software was $7.0 million, $7.7 million and $5.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||
Aircraft Maintenance and Repair Costs | |||||||||||
Maintenance and repair costs for owned and leased flight equipment, including the overhaul of aircraft components, are charged to operating expenses as incurred. Engine overhaul costs covered by power-by-the-hour arrangements are paid and expensed as incurred and are based on the amount of hours flown per contract. Under the terms of these power-by-the-hour agreements, the Company pays a set dollar amount per engine hour flown on a monthly basis and the third-party vendor assumes the obligation to repair the engines at no additional cost, subject to certain specified exclusions. | |||||||||||
Additionally, although the Company's aircraft lease agreements specifically provide that it is responsible for maintenance of the leased aircraft, the Company pays maintenance reserves to the aircraft lessors that are applied towards the cost of future maintenance events. These reserves are calculated based on a performance measure, such as flight hours, and are available for reimbursement to the Company upon the completion of the maintenance of the leased aircraft. However, reimbursements are limited to the available deposits associated with the specific maintenance activity for which the Company requests reimbursement. | |||||||||||
Under certain aircraft lease agreements, if there are excess amounts on deposit at the expiration of the lease, the lessor is entitled to retain any excess amounts; whereas at the expiration of certain other existing aircraft lease agreements any such excess amounts are returned to the Company, provided that it has fulfilled all of its obligations under the lease agreements. The maintenance reserves paid under the lease agreements do not transfer either the obligation to maintain the aircraft or the cost risk associated with the maintenance activities to the aircraft lessor. In addition, the Company maintains the right to select any third-party maintenance provider. | |||||||||||
The Company accounts for nonrefundable maintenance deposits as an asset until it is less than probable that any portion of the deposit is recoverable. In addition, payments of maintenance deposits that are not substantially and contractually related to the maintenance of the leased assets are expensed as incurred. Any costs that are substantially and contractually unrelated to the maintenance of the leased asset are considered to be unrecoverable. In order to properly account for the costs that are related to the maintenance of the leased asset, the Company bifurcates its maintenance deposits into two groups and expenses the proportionate share that is expected to be unrecoverable. | |||||||||||
Goodwill and Indefinite-lived Intangible Assets | |||||||||||
Goodwill and intangible assets with indefinite lives are not amortized, but are tested for impairment at least annually using a three-step process in accordance with Accounting Standard Codification (ASC) Intangibles—Goodwill and Other (ASC 350). | |||||||||||
In the event that the Company determines that the values of goodwill or indefinite-lived intangible assets have become impaired, the Company will incur an accounting charge during the period in which such determination is made. | |||||||||||
Impairment of Long-Lived Assets and Finite-lived Intangible Assets | |||||||||||
Long-lived assets used in operations, consisting principally of property and equipment and finite-lived intangible assets, are tested for impairment when events or changes in circumstances indicate, in management's judgment, that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than its carrying amount. When testing for impairment, management considers market trends, the expected useful lives of the assets, changes in economic conditions, recent transactions involving sales of similar assets and, if necessary, estimates of future discounted cash flows. If, at any time, management determines the net carrying value of an asset is not recoverable, the amount is reduced to its fair value during the period in which such determination is made. Any changes in the estimated useful lives of these assets will be accounted for prospectively. | |||||||||||
Operating Leases | |||||||||||
The Company leases aircraft, engines, airport and terminal facilities, office space, and other equipment under operating leases. Some of these lease agreements include escalation clauses and renewal options. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses on a straight-line basis over the terms of the leases in the Consolidated Statements of Operations. When lease renewals are considered to be reasonably assured, the rental payments that will be due during the renewal periods are included in the determination of rent expense over the life of the lease. | |||||||||||
Leased Aircraft Return Costs | |||||||||||
Costs associated with the return of leased aircraft are accrued when it is probable that a payment will be made and that amount is reasonably estimable. Any accrual is based on the time remaining on the lease, planned aircraft usage and the provisions included in the lease agreement, although the actual amount due to any lessor upon return will not be known with certainty until lease termination. | |||||||||||
Revenue Recognition | |||||||||||
Passenger revenue is recognized either when the transportation is provided or when tickets expire unused. The value of passenger tickets for future travel is included as air traffic liability. | |||||||||||
Various taxes and fees assessed on the sale of tickets to end customers are collected by the Company as an agent and remitted to taxing authorities. These taxes and fees have been presented on a net basis in the accompanying Consolidated Statements of Operations and recorded as a liability until remitted to the appropriate taxing authority. | |||||||||||
Other operating revenue includes checked baggage revenue, cargo revenue, ticket change and cancellation fees, charter revenue, ground handling fees, commissions and fees earned under certain joint marketing agreements with other companies, inflight revenue and other incidental sales. | |||||||||||
Baggage fees, cargo and charter revenue are recognized when the transportation is provided. Ticket change and cancellation fees are recognized at the time the fees are assessed. All other revenue is recognized as revenue when the related goods and services are provided. | |||||||||||
Frequent Flyer Program | |||||||||||
HawaiianMiles, Hawaiian's frequent flyer travel award program provides a variety of awards to program members based on accumulated mileage. The Company utilizes the incremental cost method of accounting for free travel awards issued from the HawaiianMiles program. The Company records a liability for the estimated incremental cost of providing travel awards that are expected to be redeemed on Hawaiian or the contractual rate of expected redemption on partner airlines. The Company estimates the incremental cost of travel awards based on periodic studies of actual costs and applies these cost estimates to all issued miles, less an appropriate breakage factor for estimated miles that will not be redeemed. Incremental cost includes the costs of fuel, meals and beverages, insurance and certain other passenger traffic-related costs, but does not include any costs for aircraft ownership and maintenance. The breakage factor is estimated based on an analysis of historical expirations. | |||||||||||
The Company also sells mileage credits to companies participating in our frequent flyer program. These sales are accounted for as multiple-element arrangements, with one element representing the travel that will ultimately be provided when the mileage credits are redeemed and the other consisting of marketing related activities that we conduct with the participating company. The estimated fair value of the transportation portion of these mileage credits is deferred and recognized as passenger revenue over the period when transportation is expected to be provided (currently estimated at 22 months). Amounts received in excess of the expected transportation's fair value are recognized immediately as other revenue at the time of sale as compensation for marketing services performed. The estimated fair value of the air transportation component is based on several factors, including the equivalent ticket value of similar Company fares and customer habits in redeeming free travel awards. | |||||||||||
The Company's total frequent flyer liability for future award redemptions is reflected as components of Air traffic liability and Other liabilities and deferred credits within the Consolidated Balance Sheets as follows: | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Air traffic liability | $ | 51,264 | $ | 50,503 | |||||||
Other liabilities and deferred credits | 10,633 | 12,381 | |||||||||
Total frequent flyer liability | $ | 61,897 | $ | 62,884 | |||||||
Under the programs of certain participating companies, credits are accumulated in accounts maintained by the participating company and then transferred into a member's HawaiianMiles account for immediate redemption of free travel awards. For those transactions, revenue is recognized over the period during which the mileage is projected to be used (currently estimated at five months). | |||||||||||
On an annual basis, the Company reviews the deferral period and deferral rate for mileage credits sold to participating companies, as well as the breakage rate assumption for free travel awards earned in connection with the purchase of passenger tickets. The Company's incremental cost assumption is reviewed on a quarterly basis. | |||||||||||
In October 2013, Hawaiian entered into a co-branded credit card agreement, which will provide for the sale of frequent flyer miles to Barclays beginning in 2014. The agreement is a new multiple-element arrangement subject to Accounting Standards Update 2009-13, Multiple Deliverable Revenue Arrangements—A consensus of the FASB Emerging Issues Task Force (ASU 2009-13), which is effective for new and materially modified revenue arrangements entered into by the Company after January 1, 2011. ASU 2009-13 requires the allocation of the overall consideration received to each deliverable using the estimated selling price. The following four deliverables or elements have been identified in the agreement: air transportation; use of the brand and access to frequent flyer member lists; advertising; and other airline benefits. The objective of using estimated selling price based methodology is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. Accordingly, the Company will determine its estimate of selling price based on a consideration of multiple inputs and methods including, but not limited to, discounted cash flows, brand value, published selling prices, number of miles awarded and number of miles redeemed. The Company will estimate the selling prices and volumes over the term of the new agreement in order to determine the allocation of consideration to each of the multiple elements to be delivered. | |||||||||||
The Company is currently evaluating the relative selling price of each deliverable in the agreement. The revenue recognized in connection with the frequent flyer program is and will continue to be allocated between passenger and other operating revenue. However, the allocation of revenue between passenger and other operating revenue may change significantly compared to the way revenue was historically allocated under the prior co-branded credit card agreement. Additionally, the other elements will be generally recognized as other operating revenue when earned. Under the prior co-branded credit card agreement, the fair value of the transportation element was deferred and amounts received in excess of the fair value were recognized immediately as other operating revenue. As of December 31, 2013, the adoption of ASU 2009-13 did not impact the Company's consolidated financial statements since the term of the agreement did not commence until 2014. | |||||||||||
Pension and Postretirement and Postemployment Benefits | |||||||||||
The Company accounts for its defined benefit pension and other postretirement and postemployment plans in accordance with ASC 715, Compensation—Retirement Benefits (ASC 715), which requires companies to measure their plans' assets and obligations to determine the funded status at fiscal year-end, reflect the funded status in the statement of financial position as an asset or liability, and recognize changes in the funded status of the plans in comprehensive income during the year in which the changes occur. ASC 715 does not change the amount of net periodic benefit expense recognized in our results of operations. Pension and other postretirement and postemployment benefit expenses are recognized on an accrual basis over each employee's service periods. Pension expense is generally independent of funding decisions or requirements. | |||||||||||
Commissions and Other Selling Expenses | |||||||||||
Commissions and other selling expenses include credit card commissions, the costs incurred to provide flights and other awards provided by HawaiianMiles, advertising and promotional expenses and computer reservation system charges, as well as commissions paid to outside agents for the sales of passenger and cargo traffic. Sales commissions are deferred when paid and are subsequently recognized as expense when the related revenue is recognized. Prepaid sales commissions are included in prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets. All other components of commissions and other selling expenses, including advertising costs, are expensed when incurred. Advertising expense was $14.1 million, $11.2 million and $9.2 million for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||
Capitalized Interest | |||||||||||
Interest is capitalized upon acquisition of aircraft and engines, which include any interest related to predelivery deposits and interest incurred for significant modifications made to the aircraft, and is depreciated over the estimated useful life of the asset from service inception date. | |||||||||||
Earnings (Loss) Per Share | |||||||||||
Basic earnings (loss) per share, which excludes dilution, is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. | |||||||||||
Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except for | |||||||||||
per share data) | |||||||||||
Numerator: | |||||||||||
Net income (loss) | $ | 51,854 | $ | 53,237 | $ | (2,649 | ) | ||||
Denominator: | |||||||||||
Weighted average common shares outstanding—Basic | 52,099 | 51,314 | 50,733 | ||||||||
Assumed exercise of stock options and awards | 884 | 1,221 | — | ||||||||
Assumed exercise of convertible note premium | 172 | — | — | ||||||||
Weighted average common shares outstanding—Diluted | 53,155 | 52,535 | 50,733 | ||||||||
Net income (loss) per common share | |||||||||||
Basic | $ | 1 | $ | 1.04 | $ | (0.05 | ) | ||||
Diluted | $ | 0.98 | $ | 1.01 | $ | (0.05 | ) | ||||
The table below approximates those shares excluded from the computation of diluted earnings per share because the awards would be antidilutive. | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Stock Options | 392 | 89 | 527 | ||||||||
Deferred Stock | 43 | — | 1 | ||||||||
Restricted Stock | 1,345 | 717 | 339 | ||||||||
Warrants | 10,943 | 10,943 | 8,450 | ||||||||
In March 2011, the Company entered into a Convertible Note transaction which included the sale of convertible notes, purchase of convertible note hedges and sale of warrants. The Company's 5% Convertible Notes due in 2016 with a current principal amount of $86.25 million can be redeemed with either cash or the Company's common stock, or a combination thereof, at the Company's option. The 10.9 million shares into which the principal balance of the Convertible Notes could be converted will not impact the dilutive earnings per share calculation in the current and future periods, as the Company has the intent and ability to redeem the principal amount of these notes with cash. However, as the average share price of the Company's common stock during the quarter ended December 31, 2013 exceeded the conversion price of $7.88 per share, the conversion premium of the Convertible Note is included in the Company's computation of diluted earnings per share for the year ended December 31, 2013. | |||||||||||
The convertible note hedges will always be antidilutive and, therefore, will have no effect on diluted earnings per share and are excluded from the table above. | |||||||||||
The weighted common stock equivalents for warrants were excluded from the computation of diluted earnings per share because the strike price of $10.00 exceeded the average market price of the Company's common stock. However, warrants could be dilutive in future periods. | |||||||||||
See Note 7 for further information on the Convertible Note transaction. | |||||||||||
Stock Compensation Plans | |||||||||||
The Company has a stock compensation plan for it and its subsidiaries' officers, consultants and non-employee directors. The Company accounts for stock compensation awards under ASC 718, Compensation—Stock Compensation, which requires companies to measure the cost of employee services received in exchange for an award of equity instruments based on the fair value of such awards on the dates they are granted. The fair value of the awards are estimated using the following: (1) option-pricing models for grants of stock options, (2) Monte Carlo simulations for restricted stock units with a market condition, or (3) fair value at the measurement date (usually the grant date) for awards of stock subject to time and / or performance-based vesting. The resultant cost is recognized as compensation expense over the period of time during which an employee is required to provide services to the Company (the service period) in exchange for the award, the service period generally being the vesting period of the award. | |||||||||||
Financial Derivative Instruments | |||||||||||
The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global aircraft fuel prices, interest rates and foreign currency exchange rates. | |||||||||||
The following table summarizes the accounting treatment of the Company's derivative contracts: | |||||||||||
Classification of Unrealized | |||||||||||
Gains (Losses) | |||||||||||
Derivative Type | Accounting Designation | Classification of Realized | Effective Portion | Ineffective Portion | |||||||
Gains and Losses | |||||||||||
Interest rate contracts | Designated as cash flow hedges | Interest expense and amortization of debt discounts and issuance costs | AOCI | Nonoperating income (expense) | |||||||
Foreign currency exchange contracts | Designated as cash flow hedges | Passenger revenue | AOCI | Nonoperating income (expense) | |||||||
Fuel hedge contracts | Not designated as hedges | Gains (losses) on fuel derivatives | Change in fair value of hedge is recorded in nonoperating income (expense) | ||||||||
Negative interest arbitrage associated with EETCs | Not designated as hedges | Nonoperating income (expense), Other | Change in fair value of derivative is recorded in nonoperating income (expense) | ||||||||
Foreign currency exchange contracts | Not designated as hedges | Nonoperating income (expense), Other | Change in fair value of derivative is recorded in nonoperating income (expense) | ||||||||
If the Company terminates a derivative prior to its contractual settlement date, then the cumulative gain or loss recognized in AOCI at the termination date remains in AOCI until the forecasted transaction occurs. In a situation where it becomes probable that a hedged forecasted transaction will not occur, any gains and/or losses that have been recorded to AOCI would be required to be immediately reclassified into earnings. All cash flows associated with purchasing and settling derivatives are classified as operating cash flows in the Consolidated Statements of Cash Flows. | |||||||||||
Use of Estimates in the Preparation of Financial Statements | |||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ significantly from those estimates. | |||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||
3. Accumulated Other Comprehensive Loss | ||||||||||||||
Reclassifications out of accumulated other comprehensive loss by component is as follows: | ||||||||||||||
Details about accumulated other comprehensive loss components | Year ended | Affected line items in | ||||||||||||
December 31, 2013 | the statement where net | |||||||||||||
income is presented | ||||||||||||||
(in thousands) | ||||||||||||||
Derivatives designated as hedging instruments under ASC 815 | ||||||||||||||
Foreign currency derivative gains, net | $ | (9,016 | ) | Passenger revenue | ||||||||||
Foreign currency derivative gains, net | (760 | ) | Other nonoperating expense | |||||||||||
Interest rate derivative losses, net | 656 | Interest expense | ||||||||||||
Total before tax | (9,120 | ) | ||||||||||||
Tax expense | 3,447 | |||||||||||||
Total, net of tax | $ | (5,673 | ) | |||||||||||
Amortization of defined benefit pension items | ||||||||||||||
Actuarial loss | $ | 8,660 | Wages and benefits | |||||||||||
Prior service credit | (4 | ) | Wages and benefits | |||||||||||
Total before tax | 8,656 | |||||||||||||
Tax benefit | (3,336 | ) | ||||||||||||
Total, net of tax | $ | 5,320 | ||||||||||||
Total reclassifications for the period | $ | (353 | ) | |||||||||||
A rollforward of the amounts included in accumulated other comprehensive loss, net of taxes, is as follows: | ||||||||||||||
Year ended December 31, 2013 | Interest | Foreign | Defined | Total | ||||||||||
Rate | Currency | Benefit | ||||||||||||
Derivatives | Derivatives | Pension Items | ||||||||||||
(in thousands) | ||||||||||||||
Beginning balance | $ | — | $ | — | $ | (114,054 | ) | $ | (114,054 | ) | ||||
Other comprehensive income before reclassifications, net of tax | 688 | 14,358 | 56,675 | 71,721 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 408 | (6,081 | ) | 5,320 | (353 | ) | ||||||||
Net current-period other comprehensive income, net of tax | 1,096 | 8,277 | 61,995 | 71,368 | ||||||||||
Ending balance | $ | 1,096 | $ | 8,277 | $ | (52,059 | ) | $ | (42,686 | ) | ||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||||||
4. Fair Value Measurements | ||||||||||||||||||||||||||||||||
ASC 820 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. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | ||||||||||||||||||||||||||||||||
Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities; | ||||||||||||||||||||||||||||||||
Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term for the assets or liabilities; and | ||||||||||||||||||||||||||||||||
Level 3—Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||||||||||||||||||
The tables below present the Company's financial assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||
Fair Value Measurements as of | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 269,384 | $ | 269,384 | $ | — | $ | — | ||||||||||||||||||||||||
Restricted cash | 21,000 | 21,000 | — | — | ||||||||||||||||||||||||||||
Fuel derivative contracts: | ||||||||||||||||||||||||||||||||
Brent crude oil call options | 7,121 | — | 7,121 | — | ||||||||||||||||||||||||||||
Brent crude oil put options | 186 | — | 186 | — | ||||||||||||||||||||||||||||
Heating oil put options | 417 | — | 417 | — | ||||||||||||||||||||||||||||
Heating oil swaps | 5,863 | — | 5,863 | — | ||||||||||||||||||||||||||||
Foreign currency derivatives | 12,494 | — | 12,494 | — | ||||||||||||||||||||||||||||
Interest rate derivative | 1,121 | — | 1,121 | — | ||||||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Total assets measured at fair value | $ | 317,586 | $ | 290,384 | $ | 27,202 | $ | — | ||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Fuel derivative contracts: | ||||||||||||||||||||||||||||||||
Brent crude oil call options | $ | 7,121 | $ | — | $ | 7,121 | $ | — | ||||||||||||||||||||||||
Brent crude oil put options | 186 | — | 186 | — | ||||||||||||||||||||||||||||
Heating oil swaps | 187 | — | 187 | — | ||||||||||||||||||||||||||||
Foreign currency derivatives | 1,188 | — | 1,188 | — | ||||||||||||||||||||||||||||
Negative interest arbitrage derivative | 12,865 | — | — | 12,865 | ||||||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Total liabilities measured at fair value | $ | 21,547 | $ | — | $ | 8,682 | $ | 12,865 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Fair Value Measurements as of | ||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 304,159 | $ | 304,159 | $ | — | $ | — | ||||||||||||||||||||||||
Fuel derivative contracts: | ||||||||||||||||||||||||||||||||
Brent crude oil call options | 13,094 | — | 13,094 | — | ||||||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Total assets measured at fair value | $ | 317,253 | $ | 304,159 | $ | 13,094 | $ | — | ||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Fuel derivative contracts: | ||||||||||||||||||||||||||||||||
Brent crude oil put options | $ | 397 | $ | — | $ | 397 | $ | — | ||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Total liabilities measured at fair value | $ | 397 | $ | — | $ | 397 | $ | — | ||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Cash equivalents and restricted cash. The Company's cash equivalents and restricted cash consist of money market securities, which are classified as Level 1 investments and are valued using inputs observable in markets for identical securities. | ||||||||||||||||||||||||||||||||
Fuel derivative contracts. The Company's fuel derivative contracts consist of heating oil puts and swaps, and Brent crude oil call options and collars (a combination of purchased call options and sold put options of crude oil) which are not traded on a public exchange. The fair value of these instruments is determined based on inputs available or derived from public markets including contractual terms, market prices, yield curves and measures of volatility among others. | ||||||||||||||||||||||||||||||||
Foreign currency derivatives. The Company's foreign currency derivatives consist of Japanese Yen, Korean Won, Australian Dollar and New Zealand Dollar forward contracts and are valued based primarily on data available or derived from public markets. | ||||||||||||||||||||||||||||||||
Interest rate derivative. The Company's interest rate derivative consists of an interest rate swap and is valued based primarily on data available or derived from public markets. | ||||||||||||||||||||||||||||||||
Negative arbitrage derivative. The Company's negative arbitrage derivative represents the net interest owed to the trusts that issued the Company's enhanced equipment trust certificates during the periods prior to the issuance of the related equipment notes, and is valued based primarily on the discounted amount of future cash flows using the appropriate rate of borrowing. Changes to those discount rates would be unlikely to cause material changes in the fair value of the negative interest arbitrage derivative (refer to Notes 5 and 12 for more information). The table below presents disclosures about the activity for the Company's "Level 3" financial liability: | ||||||||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Beginning balance | $ | — | ||||||||||||||||||||||||||||||
Enhanced equipment trust certificates activity | 12,865 | |||||||||||||||||||||||||||||||
| | | | | ||||||||||||||||||||||||||||
Ending balance | $ | 12,865 | ||||||||||||||||||||||||||||||
| | | | | ||||||||||||||||||||||||||||
| | | | | ||||||||||||||||||||||||||||
The table below presents the Company's debt (excluding obligations under capital leases) measured at fair value. | ||||||||||||||||||||||||||||||||
Fair Value of Debt | ||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
$ | 695,804 | $ | 738,563 | $ | — | $ | 104,656 | $ | 633,907 | $ | 554,568 | $ | 547,943 | $ | — | $ | 81,091 | $ | 466,852 | |||||||||||||
The fair value estimates of the Company's debt were based on either market prices or the discounted amount of future cash flows using the Company's current incremental rate of borrowing for similar liabilities. | ||||||||||||||||||||||||||||||||
The carrying amounts of cash and cash equivalents, other receivables and accounts payable approximate their fair value due to its short-term nature. | ||||||||||||||||||||||||||||||||
Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||||||||||||
See Note 8 for information related to fair value measurements of nonfinancial assets on a nonrecurring basis performed during 2011. | ||||||||||||||||||||||||||||||||
Financial_Derivative_Instrumen
Financial Derivative Instruments | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Financial Derivative Instruments | ' | |||||||||||||||||||
Financial Derivative Instruments | ' | |||||||||||||||||||
5. Financial Derivative Instruments | ||||||||||||||||||||
The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global fuel prices, interest rates and foreign currencies. | ||||||||||||||||||||
In 2013, the Company recognized in its Consolidated Balance Sheets the financial effect of the net interest owed to the trusts that issued the Company's enhanced equipment trust certificates. The characteristics of the net interest obligation resulted in the obligation meeting the definition of a derivative instrument under ASC Topic 815, Derivatives and Hedging (ASC 815). | ||||||||||||||||||||
Fuel Risk Management | ||||||||||||||||||||
The Company's operations are inherently dependent upon the price and availability of aircraft fuel. To manage economic risks associated with fluctuations in aircraft fuel prices, the Company periodically enters into derivative financial instruments. The Company primarily used heating oil puts and swaps and Brent crude oil call options and collars to hedge its aircraft fuel expense. As of December 31, 2013, the Company had outstanding fuel derivative contracts covering 84.7 million gallons of jet fuel that will be settled over the next 12 months. These derivative instruments were not designated as hedges under ASC Topic 815, Derivatives and Hedging (ASC 815), for hedge accounting treatment. As a result, any changes in fair value of these derivative instruments are adjusted through other nonoperating income (expense) in the period of change. | ||||||||||||||||||||
The following table reflects the amount of realized and unrealized gains and losses recorded as nonoperating income (expense) in the Consolidated Statements of Operations. | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Losses realized at settlement | $ | (14,018 | ) | $ | (7,372 | ) | $ | (430 | ) | |||||||||||
Reversal of prior period unrealized amounts | 6,013 | 2,367 | (3,920 | ) | ||||||||||||||||
Unrealized gains (losses) on conracts that will settle in future periods | 2,671 | (6,325 | ) | (2,512 | ) | |||||||||||||||
Losses on fuel derivatives recorded as Nonoperating income (expense) | $ | (5,334 | ) | $ | (11,330 | ) | $ | (6,862 | ) | |||||||||||
Interest Rate Risk Management | ||||||||||||||||||||
The Company is exposed to market risk from adverse changes in interest rates associated with its long-term debt obligations. Market risk associated with fixed-rate and variable-rate long-term debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. | ||||||||||||||||||||
In 2013, the Company entered into interest rate swap agreements to hedge interest rate risk inherent in debt agreements used to finance aircraft delivered during the year. The interest rate swap agreements were designated as cash flow hedges under ASC 815. One of these interest rate swap agreements matured in June 2013, resulting in a gain of $0.7 million recognized in Accumulated Other Comprehensive Income (Loss) (AOCI). | ||||||||||||||||||||
The effective portion of the gain or loss is reported as a component of AOCI and reclassified into earnings in the same period in which interest is accrued. The effective portion of the interest rate swap represents the change in fair value of the hedge that offsets the change in the fair value of the hedged item. To the extent the change in the fair value of the hedge does not perfectly offset the change in the fair value of the hedged item, the ineffective portion of the hedge is immediately recognized in nonoperating income (expense). | ||||||||||||||||||||
The Company believes that its derivative contract will continue to be effective in offsetting changes in cash flow attributable to the hedged risk. The Company reclassified net losses from AOCI to interest expense of $0.7 million during the year ended December 31, 2013. The Company expects to reclassify a net loss of approximately $0.8 million into earnings over the next 12 months from AOCI based on the values at December 31, 2013. | ||||||||||||||||||||
Foreign Currency Exchange Rate Risk Management | ||||||||||||||||||||
The Company is subject to foreign currency exchange rate risk due to revenues and expenses denominated in foreign currencies, with the primary exposures being the Japanese Yen and Australian Dollar. To manage exchange rate risk, the Company executes its international revenue and expense transactions in the same foreign currency to the extent practicable. | ||||||||||||||||||||
The Company enters into foreign currency forward contracts, designated as cash flow hedges under ASC 815, to further manage the effects of fluctuating exchange rates. The effective portion of the gain or loss is reported as a component of AOCI and reclassified into earnings in the same period in which the related sales are recognized as passenger revenue. The effective portion of the foreign currency forward contracts represents the change in fair value of the hedge that offsets the change in the fair value of the hedged item. To the extent the change in the fair value of the hedge does not perfectly offset the change in the fair value of the hedged item, the ineffective portion of the hedge is immediately recognized as nonoperating income (expense). | ||||||||||||||||||||
The Company believes that its foreign currency forward contracts will continue to be effective in offsetting changes in cash flow attributable to the hedged risk. The Company reclassified gains from AOCI to passenger revenue of $9.0 million during the year ended December 31, 2013. The Company expects to reclassify a net gain of approximately $11.4 million into earnings over the next 12 months from AOCI based on the values at December 31, 2013. | ||||||||||||||||||||
Negative Arbitrage Derivative | ||||||||||||||||||||
In May 2013, the Company created two pass-through trusts, which issued $444.5 million aggregate principal amount of EETCs. See Note 12 for further information related to the EETCs. In accordance with the related agreements, the Company is obligated to pay the interest that accrues on the proceeds and is also entitled to the benefits of the income generated from the same proceeds. The difference between the interest owed to the pass-through trusts and the interest generated from the proceeds introduces an element of variability that could cause the associated cash flows to fluctuate. This variability requires the Company's obligation to the trusts to be recognized as a derivative in the Company's consolidated financial statements. | ||||||||||||||||||||
The following tables present the gross fair value of asset and liability derivatives that are designated as hedging instruments under ASC 815 and derivatives that are not designated as hedging instruments under ASC 815, as well as the net derivative positions and location of the asset and liability balances within the Consolidated Balance Sheets. | ||||||||||||||||||||
Derivative positions as of December 31, 2013 | ||||||||||||||||||||
Balance Sheet | Notional Amount | Final | Gross fair | Gross fair | Net | |||||||||||||||
Location | Maturity | value of | value of | derivative | ||||||||||||||||
Date | assets | (liabilities) | position | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||
Interest rate derivative | Prepaid expenses and other | $63,800 U.S. dollars | Apr-23 | $ | 196 | $ | — | $ | 196 | |||||||||||
Long-term prepayments and other(1) | 925 | — | 925 | |||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 10,500,321 Japanese Yen | Dec-14 | 9,946 | (450 | ) | 9,496 | |||||||||||||
10,895,370 Korean Won | ||||||||||||||||||||
62,659 Australian Dollars | ||||||||||||||||||||
4,821 New Zealand Dollars | ||||||||||||||||||||
Long-term prepayments and other(2) | 1,980,949 Japanese Yen | May-15 | 1,673 | — | 1,673 | |||||||||||||||
16,681 Australian Dollars | ||||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 6,180 Japanese Yen | Dec-14 | 577 | (229 | ) | 348 | |||||||||||||
58 Australian Dollars | ||||||||||||||||||||
Other accrued liabilities | 298 | (509 | ) | (211 | ) | |||||||||||||||
Fuel derivative contracts | Prepaid expenses and other | 84,714 gallons | Dec-14 | 13,587 | (7,494 | ) | 6,093 | |||||||||||||
Negative arbitrage derivative | Other accrued liabilities | $444,540 U.S. dollars | Jan-15 | — | (12,250 | ) | (12,250 | ) | ||||||||||||
Other liabilities and deferred credits(3) | — | (615 | ) | (615 | ) | |||||||||||||||
-1 | ||||||||||||||||||||
Represents the noncurrent portion of the $64 million interest rate derivative with final maturity in April 2023. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
Represents the noncurrent portion of the foreign currency derivatives with final maturities in May 2015. | ||||||||||||||||||||
-3 | ||||||||||||||||||||
Represents the noncurrent portion of the $445 million negative arbitrage derivative with final maturity in January 2015. | ||||||||||||||||||||
Derivative positions as of December 31, 2012 | ||||||||||||||||||||
Balance Sheet | Notional Amount | Final | Gross fair | Gross fair | Net | |||||||||||||||
Location | Maturity | value of | value of | derivative | ||||||||||||||||
Date | assets | (liabilities) | position | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Fuel derivative contracts | Prepaid expenses and other | 126,924 gallons | Jun-14 | $ | 13,094 | $ | (397 | ) | $ | 12,697 | ||||||||||
The following table reflects the impact of cash flow hedges designated for hedge accounting treatment and their location within the Consolidated Statements of Comprehensive Income. | ||||||||||||||||||||
Gain recognized in | (Gain) loss | Gain recognized in | ||||||||||||||||||
AOCI on derivatives | reclassified from | nonoperating | ||||||||||||||||||
(effective portion) | AOCI into income | (income) expense | ||||||||||||||||||
(effective portion) | (ineffective portion) | |||||||||||||||||||
Year ended | Year ended | Year ended | ||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Foreign currency derivatives | $ | (22,781 | ) | $ | — | $ | (9,016 | ) | $ | — | $ | (760 | ) | $ | — | |||||
Interest rate derivatives | (1,593 | ) | — | 656 | — | — | — | |||||||||||||
Risk and Collateral | ||||||||||||||||||||
The financial derivative instruments expose the Company to possible credit loss in the event the counterparties to the agreements fail to meet their obligations. To manage such credit risks, the Company (1) selects its counterparties based on past experience and credit ratings, (2) limits its exposure to any single counterparty, and (3) periodically monitors the market position and credit rating of each counterparty. Credit risk is deemed to have a minimal impact on the fair value of the derivative instruments as cash collateral would be provided to or by the counterparties based on the current market exposure of the derivative. The Company is also subject to market risk in the event these financial instruments become less valuable in the market. However, changes in the fair value of the derivative instruments will generally offset the change in the fair value of the hedged item, limiting the Company's overall exposure. | ||||||||||||||||||||
ASC 815 requires a reporting entity to elect a policy of whether to offset rights to reclaim cash collateral or obligations to return cash collateral against derivative assets and liabilities executed with the same counterparty under a master netting agreement, or present such amounts on a gross basis. The Company's accounting policy is to present its derivative assets and liabilities on a net basis, including any collateral posted with the counterparty. The Company had no collateral posted with its counterparties as of December 31, 2013 and 2012. | ||||||||||||||||||||
The following tables reconciles the Company's net derivative positions to the financial statement line item within the Consolidated Balance Sheets (in thousands). | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Interest rate derivative | $ | 196 | $ | — | ||||||||||||||||
Foreign currency derivatives | 9,844 | — | ||||||||||||||||||
Fuel derivative contracts | 6,093 | 12,697 | ||||||||||||||||||
Prepaid expenses | 35,067 | 21,984 | ||||||||||||||||||
Other | 452 | 320 | ||||||||||||||||||
Prepaid expenses and other | $ | 51,652 | $ | 35,001 | ||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Interest rate derivative | $ | 925 | $ | — | ||||||||||||||||
Foreign currency derivatives | 1,673 | — | ||||||||||||||||||
Deposits | 28,144 | 24,891 | ||||||||||||||||||
Maintenance reserves | 9,650 | 5,735 | ||||||||||||||||||
Debt issuance costs | 35,781 | 14,041 | ||||||||||||||||||
Other | 15,780 | 10,962 | ||||||||||||||||||
Long-term prepayments and other | $ | 91,953 | $ | 55,629 | ||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency derivatives | $ | 211 | $ | — | ||||||||||||||||
Negative arbitrage derivative | 12,250 | — | ||||||||||||||||||
Accrued payroll and related | 48,088 | 44,747 | ||||||||||||||||||
Accrued taxes | 11,670 | 11,142 | ||||||||||||||||||
Other | 25,352 | 18,939 | ||||||||||||||||||
Other accrued liabilities | $ | 97,571 | $ | 74,828 | ||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Negative arbitrage derivative | $ | 615 | $ | — | ||||||||||||||||
Lease related obligations | 26,303 | 25,560 | ||||||||||||||||||
Deferred revenue | 32,299 | 12,381 | ||||||||||||||||||
Other | 207 | 22 | ||||||||||||||||||
Other liabilities and deferred credits | $ | 59,424 | $ | 37,963 | ||||||||||||||||
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Intangible Assets | ' | |||||||||||||
Intangible Assets | ' | |||||||||||||
6. Intangible Assets | ||||||||||||||
The following tables summarize the gross carrying values of intangible assets less accumulated amortization, and the useful lives assigned to each asset. | ||||||||||||||
As of December 31, 2013 | ||||||||||||||
Gross carrying | Accumulated | Net book value | Approximate | |||||||||||
value | amortization | useful life (years) | ||||||||||||
(in thousands) | ||||||||||||||
Frequent flyer program—marketing relationships | $ | 119,900 | $ | (119,900 | ) | $ | — | 7.5 | ||||||
Favorable aircraft and engine leases | 32,710 | (32,710 | ) | — | 7 | (*) | ||||||||
Favorable aircraft maintenance contracts | 18,200 | (11,069 | ) | 7,131 | 14 | (*) | ||||||||
Frequent flyer program—customer relations | 12,200 | (9,476 | ) | 2,724 | 11 | |||||||||
Hawaiian Airlines trade name | 13,000 | — | 13,000 | Indefinite | ||||||||||
Operating certificates | 3,660 | (2,575 | ) | 1,085 | 12 | |||||||||
Total intangible assets | $ | 199,670 | $ | (175,730 | ) | $ | 23,940 | |||||||
As of December 31, 2012 | ||||||||||||||
Gross carrying | Accumulated | Net book value | ||||||||||||
value | amortization | |||||||||||||
(in thousands) | ||||||||||||||
Frequent flyer program—marketing relationships | $ | 119,900 | $ | (119,900 | ) | $ | — | |||||||
Favorable aircraft and engine leases | 32,710 | (32,710 | ) | — | ||||||||||
Favorable aircraft maintenance contracts | 18,200 | (9,833 | ) | 8,367 | ||||||||||
Frequent flyer program—customer relations | 12,200 | (8,372 | ) | 3,828 | ||||||||||
Hawaiian Airlines trade name | 13,000 | — | 13,000 | |||||||||||
Operating certificates | 3,660 | (2,275 | ) | 1,385 | ||||||||||
Total intangible assets | $ | 199,670 | $ | (173,090 | ) | $ | 26,580 | |||||||
(*) | ||||||||||||||
Weighted average is based on the gross carrying values and estimated useful lives as of June 2, 2005 (the date Hawaiian emerged from bankruptcy). The useful lives ranged from six years for a favorable aircraft maintenance contract to sixteen years for a favorable aircraft lease. | ||||||||||||||
Amortization expense related to the above intangible assets was $2.6 million, $18.8 million and $23.4 million for the years ended December 31, 2013, 2012, and 2011, respectively. Amortization of the favorable aircraft and engine leases and the favorable aircraft maintenance contracts are included in aircraft rent and maintenance materials and repairs, respectively, in the accompanying Consolidated Statements of Operations. The estimated future amortization expense as of December 31, 2013 of the intangible assets subject to amortization is as follows (in thousands): | ||||||||||||||
2014 | $ | 2,640 | ||||||||||||
2015 | 2,640 | |||||||||||||
2016 | 2,052 | |||||||||||||
2017 | 1,421 | |||||||||||||
2018 | 1,236 | |||||||||||||
Thereafter | 951 | |||||||||||||
$ | 10,940 | |||||||||||||
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt | ' | |||||||
Debt | ' | |||||||
7. Debt | ||||||||
Long-term debt (including capital lease obligations) net of unamortized discounts is outlined as follows: | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Airbus A330-200 Aircraft Facility Agreements, interest rates ranging from 5.31%- 6.46%, quarterly principal and interest payments, payable from 2023 - 2024(1) | $ | 353,723 | $ | 246,443 | ||||
Class A EETC, fixed interest rate of 3.9%, interest-only semiannual payments starting in January 2014, principal and interest payments starting in January 2015 and maturing in January 2026(2) | 56,000 | — | ||||||
Class B EETC, fixed interest rate of 4.95%, interest-only semiannual payments starting in January 2014, principal and interest semiannual payments starting in January 2015 and maturing in January 2022(2) | 20,110 | — | ||||||
Boeing 717-200 Aircraft Facility Agreements, fixed interest rate of 8%, monthly principal and interest payments, the remaining balance of $39.7 million due at maturity on June 2019(1) | 154,422 | 170,701 | ||||||
Five year 5% unsecured convertible notes, with interest only semiannual payments, and $86.25 million due at maturity on March 15, 2016(3) | 86,250 | 86,250 | ||||||
Boeing 767 Aircraft Facility Agreement, variable interest rate of 2.92% at December 31, 2013, quarterly principal and interest payments, maturing in December 2018(1) | 35,000 | — | ||||||
Secured loan, monthly variable interest only payments, with the remaining balance of $52.2 million paid in December 2013 | — | 64,748 | ||||||
Capital lease obligations (see Note 8) | 110,668 | 106,672 | ||||||
Total debt and capital lease obligations | $ | 816,173 | $ | 674,814 | ||||
Less: | ||||||||
Unamortized discount on convertible note | (9,700 | ) | (13,573 | ) | ||||
Current maturities | (62,187 | ) | (108,232 | ) | ||||
Long-Term Debt, less discount, and Capital Lease Obligations | $ | 744,286 | $ | 553,009 | ||||
-1 | ||||||||
The Airbus A330-200 Aircraft Facility Agreements and Boeing 717-200 Aircraft Facility Agreements are secured by aircraft. | ||||||||
-2 | ||||||||
The equipment notes underlying these EETCs are the direct obligations of Hawaiian. | ||||||||
-3 | ||||||||
As of December 31, 2013, the Convertible Note discount is being amortized to interest expense over the remaining term of 2.25 years. | ||||||||
Enhanced Equipment Trust Certificates (EETC) | ||||||||
Hawaiian has $76.1 million of equipment notes outstanding, which was used to purchase an Airbus A330-200 aircraft delivered in the fourth quarter of 2013. See Note 12 for further information related to the EETCs. | ||||||||
Boeing 767 Aircraft Facility Agreement | ||||||||
In 2013, the Company borrowed $35.0 million through a secured loan agreement to refinance a portion of a secured loan that matured in December 2013. The loan agreement has a variable interest rate of 2.92% as of December 31, 2013 and requires a $6 million balloon payment at maturity in December 2018. | ||||||||
Convertible Notes | ||||||||
On March 23, 2011, the Company issued $86.25 million principal amount of convertible senior notes (the Convertible Notes) due March 15, 2016. The Convertible Notes were issued at par and bear interest at a rate of 5.00% per annum. Interest is paid semiannually, in arrears, on March 15 and September 15 each year. | ||||||||
Each $1,000 of principal of the Convertible Notes is convertible under certain circumstances, at an initial conversion rate of 126.8730 shares of the Company's common stock (or a total of approximately 10.9 million shares), which is the equivalent of approximately $7.8819 per share, subject to adjustment upon the occurrence of certain specified events as set forth in the indenture governing the terms of the Convertible Notes. Upon conversion, the Company will have the right, at the Company's election, to pay or deliver cash, shares of the Company's common stock or a combination thereof. As of December 31, 2013, the Company has the intent and ability to settle the principal balance of the Convertible Notes in cash. Holders may convert their Convertible Notes at their option at any time prior to November 15, 2015, only if one of the following conditions has been met (during 2013, none of the conditions permitting conversion were met): | ||||||||
• | ||||||||
During any calendar quarter after the calendar quarter ending June 30, 2011, and only during such calendar quarter, if the closing price of the Company's common stock for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the preceding calendar quarter exceeds 130% of the conversion price per share of common stock in effect on the last day of such preceding calendar quarter; | ||||||||
• | ||||||||
During the five consecutive business days immediately after any 10 consecutive trading day period in which the average trading price per $1,000 principal amount of the Convertible Notes during such period was less than 97% of the product of the closing sale price of the common stock and the conversion rate on such trading day; | ||||||||
• | ||||||||
The Company makes specified distributions to holders of the Company's common stock or specified corporate transactions occur. | ||||||||
On or after November 15, 2015, and up through and including the second business day immediately preceding March 15, 2016, the Holders may convert their Convertible Notes into common stock. | ||||||||
Holders may require the Company to repurchase all or a portion of their Convertible Notes upon a fundamental change, primarily a change in control or termination of trading, at a cash repurchase price equal to 100% of the principal amount of the Convertible Notes plus accrued and unpaid interest, if any. The Company may not redeem the Convertible Notes prior to their maturity date. The Convertible Notes do not limit the amount that the Company would be required to pay or the number of shares that would be required to be issued upon conversion. | ||||||||
When accounting for the Convertible Notes, the Company applied accounting guidance related to the accounting for convertible debt instruments that may be settled in cash upon conversion. This guidance required the Company to separately account for the liability and equity components of the Convertible Notes in a manner that reflects our nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. This guidance required bifurcation of a component of the debt, classification of that component in equity, and then accretion of the resulting discount on the debt as part of interest expense reflected in the Consolidated Statements of Operations. | ||||||||
Accordingly, the Company recorded an adjustment to reduce the carrying value of the Convertible Notes by $19.5 million and recorded this amount in Shareholders' Equity. This adjustment was based on the calculated fair value of a similar debt instrument that did not have an associated equity component. The annual interest rate calculated for a similar debt instrument was 11.00%. During 2013, the carrying amount of the equity component and the effective interest rate applied to the liability component remaining unchanged from 2012. | ||||||||
The total issuance costs for the Convertible Notes was $3.3 million, of which $2.5 million was allocated to the debt component and $0.8 million was allocated to the equity component during 2011. The issuance costs allocated to debt were capitalized and are being amortized to interest expense over the term of the Convertible Notes. The issuance costs allocated to equity were recorded as a reduction of additional paid-in-capital. | ||||||||
Non-cash interest expense relating to the amortization of the discount allocated to the debt component of the Convertible Notes for the years ended December 31, 2013, 2012 and 2011 was $3.9 million, $3.5 million and $2.4 million, respectively, and interest expense for the years ended December 31, 2013, 2012, and 2011 was $4.8 million, $4.8 million and $3.8 million, respectively. | ||||||||
As of December 31, 2013, the if-converted value of the notes, which assumes that the notes will be converted into shares of the Company's common stock, exceeded the principal amount by $5.4 million. | ||||||||
Convertible Note Hedges and Warrants | ||||||||
In connection with the issuance of the Convertible Notes, the Company entered into separate convertible note hedge transactions (the Convertible Note Hedges) and separate warrant transactions (the Warrants) with certain financial investors to reduce the potential dilution of the Company's common stock and to offset potential payments by the Company to holders of the Convertible Notes in excess of the principal of the Convertible Notes upon conversion. The Convertible Note Hedges and Warrants are separate transactions, entered into by the Company with the financial institutions, and are not part of the Convertible Notes described above. | ||||||||
The Company paid $19.5 million for the Convertible Note Hedges. Under the terms of the Convertible Note Hedges, the counterparties to the Convertible Note Hedges will generally deliver to the Company amounts in excess of the principal amount of the Convertible Notes delivered upon conversion by the Company to the holders of the Convertible Notes in the same form of consideration elected to be delivered by the Company to the holders of the Convertible Notes under the indenture for the Convertible Notes. The Company may elect to settle the conversion feature of the Convertible Notes in cash or shares of common stock or in any combination of cash or shares of common stock as determined in accordance with the provisions of the indenture. The Convertible Note Hedges are currently exercisable and expire on March 15, 2016. | ||||||||
Concurrent with the issuance of the Convertible Notes, the Company sold Warrants to certain financial institutions that permit such financial institutions to acquire shares of the Company's common stock. The Warrants are exercisable by the financial institutions for 10.9 million shares of the Company's common stock at an exercise price of $10.00 per share. The Company received $11.9 million in proceeds from the sale of the Warrants. The Warrants expire at various dates beginning in June 2016 and ending in September 2016. The Warrants provide for net share settlement by the Company, subject to the option of the Company to deliver cash in lieu of shares if certain conditions under the Warrants have been met. | ||||||||
The Company determined that the Convertible Note Hedges and Warrants meet the requirements of the FASB's accounting guidance for accounting for derivative financial instruments indexed to, and potentially settled in, a Company's own stock and other relevant guidance and, therefore, are classified as equity transactions. As a result, the Company recorded the purchase of the Convertible Note Hedges as a reduction in additional paid-in-capital and the proceeds of the Warrants as an increase to additional-paid-in-capital in the Consolidated Balance Sheets, and the Company will not recognize subsequent changes in the fair value of the agreements in the consolidated financial statements. | ||||||||
Revolving Credit Facility | ||||||||
The Company has a secured Revolving Credit Facility in an amount up to $75.0 million, with a variable-interest rate of 6.25% at December 31, 2013, and maturing in December 2014. As of December 31, 2013 and 2012, the Company had no outstanding borrowing under the Revolving Credit Facility and $67.0 million and $68.9 million available, respectively, (net of various outstanding letters of credit), and was in compliance with its financial covenants under the Revolving Credit Facility. | ||||||||
As of December 31, 2013, the scheduled maturities of long-term debt are as follows (in thousands): | ||||||||
2014 | $ | 53,356 | ||||||
2015 | 65,075 | |||||||
2016 | 147,732 | |||||||
2017 | 63,717 | |||||||
2018 | 71,269 | |||||||
Thereafter | 304,356 | |||||||
$ | 705,505 | |||||||
Leases
Leases | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Leases | ' | |||||||||||||
Leases | ' | |||||||||||||
8. Leases | ||||||||||||||
Aircraft | ||||||||||||||
On June 27, 2011, Hawaiian terminated lease agreements and concurrently entered into a purchase agreement with the lessor covering 15 Boeing 717-200 aircraft, each such aircraft including two Rolls-Royce BR700-715 engines. These aircraft were previously operated by Hawaiian under four capital and 11 operating lease agreements. The purchase price for the 15 Boeing 717-200 aircraft was $230 million, comprised of financing of $192.8 million through secured loan agreements with Boeing Capital, cash payment of $25.0 million, and the non-cash application of maintenance and security deposits held by the previous lessor and current debt financier of $12.2 million. This purchase price was reduced by certain previously recorded lease valuation adjustments related to these aircraft. The Company recognized the excess of the purchase price paid over the fair value of the aircraft under operating leases as a cost of terminating the leases under ASC 840—Leases (formerly FASB Interpretation No. 26, Accounting for Purchase of a Leased Asset by the Lessee during the Term of the Lease) and elected to apply the same accounting policy to the aircraft under capital leases. As a result, the Company reduced the value of the 15 Boeing 717-200 aircraft to their fair value of $135 million in its December 31, 2011 Consolidated Balance Sheets and recorded lease termination charges of $70.0 million in the Consolidated Statements of Operations. The Company determined the valuation of the aircraft based on a third-party appraisal that considered multiple inputs, including market transactions for similar aircraft and information specific to the condition of each aircraft. As a result, this fair value measurement was considered a Level 3 measurement. | ||||||||||||||
As of December 31, 2013, the Company had lease contracts for 16 of its 47 aircraft. Of the 16 lease contracts, three aircraft lease contracts were accounted for as capital leases, with the remaining 13 lease contracts accounted for as operating leases. These aircraft leases have remaining lease terms ranging from approximately 2 to 12 years. Under these lease agreements, the Company is required to pay monthly specified amounts of rent plus maintenance reserves based on utilization of the aircraft. Maintenance reserves are amounts paid by the Company to the aircraft lessor as a deposit for certain future scheduled airframe, engine and landing gear overhaul costs. Maintenance reserves are reimbursable once the Company successfully completes such qualified scheduled airframe, engine and/or landing gear overhauls. | ||||||||||||||
As of December 31, 2013, the scheduled future minimum rental payments under capital leases and operating leases with noncancelable basic terms of more than one year are as follows: | ||||||||||||||
Capital Leases | Operating Leases | |||||||||||||
Aircraft | Other | Aircraft | Other | |||||||||||
(in thousands) | ||||||||||||||
2014 | $ | 13,713 | $ | 1,629 | $ | 97,949 | $ | 4,145 | ||||||
2015 | 13,803 | 1,190 | 97,173 | 3,893 | ||||||||||
2016 | 13,803 | 1,223 | 80,464 | 3,725 | ||||||||||
2017 | 13,803 | 1,179 | 79,942 | 3,088 | ||||||||||
2018 | 13,803 | 1,281 | 79,943 | 3,069 | ||||||||||
Thereafter | 59,544 | 10,691 | 242,545 | 21,901 | ||||||||||
128,469 | 17,193 | $ | 678,016 | $ | 39,821 | |||||||||
Less amounts representing interest | (29,931 | ) | (5,063 | ) | ||||||||||
Present value of minimum capital lease payments | $ | 98,538 | $ | 12,130 | ||||||||||
Accumulated amortization for our aircraft and other capital leases was $19.4 million and $8.3 million for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||
Rent expense was $158.6 million, $151.0 million and $156.7 million during the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
9. Income Taxes | |||||||||||
The significant components of income tax expense are as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Current | |||||||||||
Federal | $ | — | $ | — | $ | (36,515 | ) | ||||
State | 450 | 1,216 | (5,686 | ) | |||||||
450 | 1,216 | (42,201 | ) | ||||||||
Deferred | |||||||||||
Federal | $ | 30,542 | $ | 27,936 | $ | 37,150 | |||||
State | 3,564 | 3,397 | 6,618 | ||||||||
34,106 | 31,333 | 43,768 | |||||||||
Income tax expense | $ | 34,556 | $ | 32,549 | $ | 1,567 | |||||
The income tax expense differed from amounts computed at the statutory federal income tax rate as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Income tax expense (benefit) computed at the statutory federal rate | $ | 30,243 | $ | 30,025 | $ | (368 | ) | ||||
Increase (decrease) resulting from: | |||||||||||
State income taxes, net of federal tax effect | 2,631 | 2,999 | 132 | ||||||||
Nondeductible meals | 971 | 910 | 538 | ||||||||
Change in uncertain tax positions | — | — | (1,983 | ) | |||||||
Effect of change in state apportionment rates and tax rates | — | — | 2,624 | ||||||||
Settlement of prior year tax matters | — | — | 618 | ||||||||
Other | 711 | (1,385 | ) | 6 | |||||||
Income tax expense | $ | 34,556 | $ | 32,549 | $ | 1,567 | |||||
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including the reversal of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. The Company's management assesses the realizability of its deferred tax assets, and records a valuation allowance when it is more likely than not that a portion, or all, of the deferred tax assets will not be realized. As result of the Company's expected ability to generate taxable income in the future, management concluded that it was more likely than not that the Company will realize its deferred tax assets. Accordingly, a valuation allowance was not recorded as of December 31, 2013. | |||||||||||
The components of the Company's deferred tax assets and liabilities were as follows: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Accumulated pension and other postretirement benefits | $ | 100,907 | $ | 135,922 | |||||||
Leases | 7,009 | 5,610 | |||||||||
Air traffic liability | 10,390 | 10,745 | |||||||||
Federal and state net operating loss carryforwards | 91,911 | 75,223 | |||||||||
Alternative minimum tax credit carryforwards | 7,447 | 5,909 | |||||||||
Other assets | 24,782 | 25,814 | |||||||||
Total deferred tax assets | $ | 242,446 | $ | 259,223 | |||||||
Deferred tax liabilities: | |||||||||||
Intangible assets | $ | (9,050 | ) | $ | (10,169 | ) | |||||
Plant and equipment, principally accelerated depreciation | (252,902 | ) | (187,222 | ) | |||||||
Other liabilities | (4,119 | ) | (7,781 | ) | |||||||
Total deferred tax liabilities | (266,071 | ) | (205,172 | ) | |||||||
Net deferred tax asset (liability) | $ | (23,625 | ) | $ | 54,051 | ||||||
As of December 31, 2013, the Company had available for federal income tax purposes an alternative minimum tax credit carryforward of approximately $7.4 million, which is available for an indefinite period, and federal and state net operating loss carryforwards of $278.6 million. The tax benefit of the net operating loss carryforwards as of December 31, 2013 was $91.9 million, substantially all of which will not begin to expire until 2031. | |||||||||||
In accordance with ASC 740, the Company reviews its uncertain tax positions on an ongoing basis. As of December 31, 2013 and 2012, the Company had no unrecognized tax benefits related to uncertain tax positions and does not expect this will significantly change within the next twelve months. | |||||||||||
The table below reconciles beginning and ending amounts of unrecognized tax benefits related to uncertain tax positions: | |||||||||||
Years Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Balance at January 1 | $ | — | $ | — | $ | 1,983 | |||||
Decreases related to prior year tax positions | — | — | (367 | ) | |||||||
Settlements with taxing authority | — | — | (490 | ) | |||||||
Effect of the expiration of statutes of limitation | — | — | (1,126 | ) | |||||||
Balance at December 31 | $ | — | $ | — | $ | — | |||||
The Company records interest and penalties relating to unrecognized tax benefits in other nonoperating expense in its Consolidated Statements of Operations. | |||||||||||
The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company's federal income tax returns for tax years 2012 and beyond remain subject to examination by the Internal Revenue Service. | |||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||||||
10. Employee Benefit Plans | ||||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||
Hawaiian sponsors various defined benefit pension plans covering the Air Line Pilots Association, International Association of Machinists and Aerospace Workers (AFL-CIO) (IAM) and other personnel (salaried, Transport Workers Union, Network Engineering Group). The plans for the IAM and other employees were frozen in September 1993. Effective January 1, 2008, benefit accruals for pilots under age 50 as of July 1, 2005 were frozen (with the exception of certain pilots who were both age 50 and older and participants of the plan on July 1, 2005) and Hawaiian began making contributions to an alternate defined contribution retirement program for its pilots. All of the pilots' accrued benefits under their defined benefit plan at the date of the freeze were preserved. In addition, Hawaiian sponsors four unfunded defined benefit postretirement medical and life insurance plans and a separate plan to administer the pilots' disability benefits. | ||||||||||||||||||||
The following tables summarize changes to projected benefit obligations, plan assets, funded status and applicable amounts included in the Consolidated Balance Sheets: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Pension | Other | Pension | Other | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Change in benefit obligations | ||||||||||||||||||||
Benefit obligations, beginning of year | $ | (421,884 | ) | $ | (183,944 | ) | $ | (391,287 | ) | $ | (156,197 | ) | ||||||||
Service cost | (2,555 | ) | (13,596 | ) | (2,723 | ) | (11,152 | ) | ||||||||||||
Interest cost | (17,389 | ) | (7,888 | ) | (18,993 | ) | (8,548 | ) | ||||||||||||
Actuarial gains (losses) | 25,213 | 47,296 | (26,450 | ) | (11,196 | ) | ||||||||||||||
Benefits paid | 19,406 | 3,319 | 17,569 | 3,188 | ||||||||||||||||
less: federal subsidy on benefits paid | N/A | (51 | ) | N/A | (39 | ) | ||||||||||||||
Benefit obligation at end of year(a) | $ | (397,209 | ) | $ | (154,864 | ) | $ | (421,884 | ) | $ | (183,944 | ) | ||||||||
Change in plan assets | ||||||||||||||||||||
Fair value of assets, beginning of year | $ | 238,134 | $ | 12,418 | $ | 214,159 | $ | 9,870 | ||||||||||||
Actual return on plan assets | 35,344 | 766 | 24,525 | 899 | ||||||||||||||||
Employer contribution | 15,933 | 5,264 | 17,019 | 4,837 | ||||||||||||||||
Benefits paid | (19,406 | ) | (3,319 | ) | (17,569 | ) | (3,188 | ) | ||||||||||||
Fair value of assets at end of year | $ | 270,005 | $ | 15,129 | $ | 238,134 | $ | 12,418 | ||||||||||||
Unfunded status at December 31, | $ | (127,204 | ) | $ | (139,735 | ) | $ | (183,750 | ) | $ | (171,526 | ) | ||||||||
Amounts recognized in the statement of financial position consist of: | ||||||||||||||||||||
Current benefit liability | $ | (17 | ) | $ | (2,816 | ) | $ | (17 | ) | $ | (2,799 | ) | ||||||||
Noncurrent benefit liability | (127,187 | ) | (136,919 | ) | (183,733 | ) | (168,727 | ) | ||||||||||||
$ | (127,204 | ) | $ | (139,735 | ) | $ | (183,750 | ) | $ | (171,526 | ) | |||||||||
Amounts recognized in other comprehensive loss | ||||||||||||||||||||
Unamortized actuarial loss | $ | 57,265 | $ | 6,435 | $ | 108,719 | $ | 55,991 | ||||||||||||
Prior service credit | (55 | ) | (22 | ) | (57 | ) | (23 | ) | ||||||||||||
$ | 57,210 | $ | 6,413 | $ | 108,662 | $ | 55,968 | |||||||||||||
(a) | ||||||||||||||||||||
The accumulated pension benefit obligation as of December 31, 2013 and 2012 was $391.5 million and $413.4 million, respectively. | ||||||||||||||||||||
The following table sets forth the net periodic benefit cost: | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Pension | Other | Pension | Other | Pension | Other | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||
Service cost | $ | 2,555 | $ | 13,596 | $ | 2,723 | $ | 11,152 | $ | 2,833 | $ | 6,342 | ||||||||
Interest cost | 17,389 | 7,888 | 18,993 | 8,548 | 19,426 | 6,657 | ||||||||||||||
Expected return on plan assets | (15,348 | ) | (912 | ) | (15,253 | ) | (819 | ) | (18,015 | ) | (774 | ) | ||||||||
Recognized net actuarial loss | 6,246 | 2,414 | 4,653 | 2,717 | 184 | 278 | ||||||||||||||
Prior service credit | (2 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | ||||||||
Net periodic benefit cost | $ | 10,840 | $ | 22,984 | $ | 11,114 | $ | 21,596 | $ | 4,426 | $ | 12,501 | ||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | ||||||||||||||||||||
Current year actuarial (gain) loss | $ | (45,209 | ) | $ | (47,143 | ) | $ | 17,178 | $ | 11,148 | $ | 68,045 | $ | 38,297 | ||||||
Amortization of actuarial loss | (6,246 | ) | (2,414 | ) | (4,653 | ) | (2,717 | ) | (184 | ) | (278 | ) | ||||||||
Amortization of prior service credit | 2 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||
Total recognized in other comprehensive loss | $ | (51,453 | ) | $ | (49,555 | ) | $ | 12,527 | $ | 8,433 | $ | 67,863 | $ | 38,021 | ||||||
Total recognized in net periodic benefit cost and other comprehensive loss | $ | (40,613 | ) | $ | (26,571 | ) | $ | 23,641 | $ | 30,029 | $ | 72,289 | $ | 50,522 | ||||||
The following actuarial assumptions were used to determine the net periodic benefit expense and the projected benefit obligation at December 31: | ||||||||||||||||||||
Pension | Postretirement | Disability | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Weighted average assumption used to determine net periodic benefit expense and projected benefit obligations: | ||||||||||||||||||||
Discount rate to determine net periodic benefit expense | 4.1 | % | 4.94 | % | 4.24 | % | 5.14 | % | 4.06 | % | 4.91 | % | ||||||||
Discount rate to determine projected benefit obligation | 5.01 | % | 4.1 | % | 5.21 | % | 4.24 | % | 4.99 | % | 4.06 | % | ||||||||
Expected return on plan assets | 6.55% | ++ | 7.3 | % | N/A | N/A | 6.15% | ++ | 6.9 | % | ||||||||||
Rate of compensation increase | Various | + | Various | + | N/A | N/A | Various | + | Various | + | ||||||||||
Health care trend rate to determine net periodic benefit expense | N/A | N/A | 8 | % | 9 | % | N/A | N/A | ||||||||||||
Health care trend rate in 2019 | N/A | N/A | 4.75 | % | 4.75 | % | N/A | N/A | ||||||||||||
Health care trend rate to determine projected benefit obligation | N/A | N/A | 8 | % | 8 | % | N/A | N/A | ||||||||||||
Health care trend rate in 2018 | N/A | N/A | 4.75 | % | 4.75 | % | N/A | N/A | ||||||||||||
+ | ||||||||||||||||||||
Differs for each pilot based on current fleet and seat position on the aircraft and seniority service. Negotiated salary increases and expected changes in fleet and seat positions on the aircraft are included in the assumed rate of compensation increase which range from 1.5% to 6.0% in 2013 and 1.5% to 7.5% in 2012. | ||||||||||||||||||||
++ | ||||||||||||||||||||
Expected return on plan assets used to determine the net periodic benefit expense for 2014 is 6.92% for Pension and 5.92% for Disability. | ||||||||||||||||||||
A one-percentage point change in the assumed health care cost trend rates would have the following annual effects: | ||||||||||||||||||||
1-Percentage | 1-Percentage | |||||||||||||||||||
Point | Point | |||||||||||||||||||
Increase | Decrease | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Effect on postretirement benefit obligation at December 31, 2013 | $ | 24,176 | $ | (19,387 | ) | |||||||||||||||
Effect on total service and interest cost for the year ended December 31, 2013 | 4,872 | (3,671 | ) | |||||||||||||||||
Estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2014 are as follows: | ||||||||||||||||||||
Pension | Other | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Actuarial (gain) loss | $ | 1,144 | $ | (239 | ) | |||||||||||||||
Amortization of prior service credit | (2 | ) | (2 | ) | ||||||||||||||||
To be recognized in net periodic benefit cost from accumulated other comprehensive loss | $ | 1,142 | $ | (241 | ) | |||||||||||||||
Plan Assets | ||||||||||||||||||||
The Company develops the expected long-term rate of return assumption based on historical experience and by evaluating input from the trustee managing the plan's assets, including the trustee's review of asset class return expectations by several consultants and economists, as well as long-term inflation assumptions. The Company's expected long-term rate of return on plan assets is based on a target allocation of assets, which is based on the goal of earning the highest rate of return while maintaining risk at acceptable levels. The plan strives to have assets sufficiently diversified so that adverse or unexpected results from any one security class will not have an unduly detrimental impact on the entire portfolio. The actual allocation of our pension and disability plan assets and the target allocation of assets by category at December 31, 2013 are as follows: | ||||||||||||||||||||
Asset Allocation | ||||||||||||||||||||
2013 | Target | |||||||||||||||||||
Equity securities | 60 | % | 60 | % | ||||||||||||||||
Fixed income securities | 35 | % | 35 | % | ||||||||||||||||
Real estate investment trusts | 5 | % | 5 | % | ||||||||||||||||
100 | % | 100 | % | |||||||||||||||||
In 2013, the Company transitioned the assets of the pension plan to a new investment manager. As a result of this transition, the overall composition of the pension plan assets changed significantly from 2012. However, the target allocation of the pension plan assets, as illustrated in the table above, was not impacted by this transition. | ||||||||||||||||||||
As discussed in Note 4, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | ||||||||||||||||||||
Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities; | ||||||||||||||||||||
Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term for the assets or liabilities; and | ||||||||||||||||||||
Level 3—Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||||||
The table below presents the Company's pension plan and other postretirement plan investments (excluding cash): | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
as of December 31, 2013 | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Pension Plan Assets: | ||||||||||||||||||||
Cash equivalents | $ | 164 | $ | 164 | $ | — | $ | — | ||||||||||||
Common stock | 2 | 2 | — | — | ||||||||||||||||
Equity index funds | 160,286 | — | 160,286 | — | ||||||||||||||||
Fixed income funds | 89,086 | — | 89,086 | — | ||||||||||||||||
Real estate investment fund | 12,237 | — | 12,237 | — | ||||||||||||||||
Insurance company pooled separate account | 1,281 | — | 1,281 | — | ||||||||||||||||
Total | $ | 263,056 | $ | 166 | $ | 262,890 | $ | — | ||||||||||||
Postretirement Assets: | ||||||||||||||||||||
Common collective trust fund | $ | 15,063 | $ | — | $ | 15,063 | $ | — | ||||||||||||
Fair Value Measurements | ||||||||||||||||||||
as of December 31, 2012 | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Pension Plan Assets: | ||||||||||||||||||||
Cash equivalents | $ | 1,419 | $ | 1,419 | $ | — | $ | — | ||||||||||||
Equity securities: | ||||||||||||||||||||
Common stock—Domestic | 42,140 | 42,140 | — | — | ||||||||||||||||
Common stock—Foreign | 26,284 | 26,284 | — | — | ||||||||||||||||
Real estate investment trusts—Domestic | 4,222 | — | 4,222 | — | ||||||||||||||||
Real estate investment trusts—Foreign | 3,743 | — | 3,743 | — | ||||||||||||||||
Preferred stock—Domestic | 496 | 496 | — | — | ||||||||||||||||
Preferred stock—Foreign | 322 | 322 | — | — | ||||||||||||||||
Other equities—Domestic | 220 | 220 | — | — | ||||||||||||||||
Equity index funds | 66,388 | — | 66,388 | — | ||||||||||||||||
Fixed income securities: | ||||||||||||||||||||
Government bonds—Domestic | 3,960 | — | 3,960 | — | ||||||||||||||||
Government bonds—Foreign | 18,313 | — | 18,313 | — | ||||||||||||||||
Mortgage-based securities | 2,625 | — | 2,625 | — | ||||||||||||||||
Corporate bonds—Domestic | 7,577 | — | 7,577 | — | ||||||||||||||||
Corporate bonds—Foreign | 3,444 | — | 3,444 | — | ||||||||||||||||
State and local bonds | 150 | — | 150 | — | ||||||||||||||||
Fixed income fund | 43,952 | — | 43,952 | — | ||||||||||||||||
Common collective trust fund | 2,902 | — | 2,902 | — | ||||||||||||||||
Forward contracts | (6 | ) | — | (6 | ) | — | ||||||||||||||
Insurance company pooled separate account | 4,478 | 4,478 | — | |||||||||||||||||
Total | $ | 232,629 | $ | 70,881 | $ | 161,748 | $ | — | ||||||||||||
Postretirement Assets: | ||||||||||||||||||||
Common collective trust fund | $ | 12,356 | $ | — | $ | 12,356 | $ | — | ||||||||||||
Cash equivalents. The fund's objective is to seek a high level of current income while maintaining both capital and liquidity. The carrying amount of the fund is equivalent to its fair value due to the short-term nature of the fund. | ||||||||||||||||||||
Common stock. These investments are valued at the closing price reported on the active market on which the individual securities are traded. | ||||||||||||||||||||
Equity index funds. The investment objective of these funds are to obtain a reasonable rate of return while investing principally or entirely in foreign or domestic equity securities. There are currently no redemption restrictions on these investments. The fair value of the investments in this category has been estimated using the net asset value per share. | ||||||||||||||||||||
Fixed income funds. The investment objective of these funds are to obtain a reasonable rate of return while principally investing in foreign and domestic bonds, mortgage-backed securities, and asset-backed securities . There are currently no redemption restrictions on these investments. The fair value of the investments in this category has been estimated using the net asset value per share. | ||||||||||||||||||||
Real estate investment fund. The investment objective of this fund is to obtain a reasonable rate of return while principally investing in real estate investment trusts. There are currently no redemption restrictions on these investments. The fair value of the investments in this category has been estimated using the net asset value per share. | ||||||||||||||||||||
Insurance Company Pooled Separate Account. The investment objective of the Insurance Company Pooled Separate Account is to invest in short-term cash equivalent securities to provide a high current income consistent with the preservation of principal and liquidity. The fair value of the investments in this category has been estimated using the net asset value per share. | ||||||||||||||||||||
Common collective trust (CCT). The postretirement plan's CCT investment consists of a balanced profile fund and a conservative profile fund. These funds primarily invest in mutual funds and exchange-traded funds. The balanced profile fund is designed for participating trusts that seek substantial capital growth, place modest emphasis on short-term stability, have long-term investment objectives, and accept short-term volatility in the value of the fund's portfolio. The conservative profile fund is designed for participating trusts that place modest emphasis on capital growth, place moderate emphasis on short-term stability, have intermediate-to-long-term investment objectives, and accept moderate short-term volatility in the value of the fund's portfolio. There are currently no redemption restrictions on these investments. The fair value of the investments in this category has been estimated using the net asset value per share. | ||||||||||||||||||||
Based on current legislation and current assumptions, the minimum required contribution that the Company is required to make to Hawaiian's defined benefit pension plans and disability plan during 2014 is $14.2 million. The Company projects that Hawaiian's pension plans and other postretirement benefit plans will make the following benefit payments, which reflect expected future service, during the years ended December 31: | ||||||||||||||||||||
Other Benefits | ||||||||||||||||||||
Pension | Gross | Expected | ||||||||||||||||||
Benefits | Federal Subsidy | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
2014 | $ | 20,353 | $ | 3,798 | $ | (59 | ) | |||||||||||||
2015 | 21,593 | 4,322 | (68 | ) | ||||||||||||||||
2016 | 22,790 | 4,987 | (76 | ) | ||||||||||||||||
2017 | 24,156 | 5,577 | (89 | ) | ||||||||||||||||
2018 | 25,536 | 6,260 | (101 | ) | ||||||||||||||||
2019 - 2022 | 138,268 | 43,071 | (712 | ) | ||||||||||||||||
$ | 252,696 | $ | 68,015 | $ | (1,105 | ) | ||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||
The Company also sponsors separate defined contribution plans for its pilots, flight attendants and ground and salaried personnel. Contributions to the Company's defined contribution plans were $25.1 million, $21.3 million and $18.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||
Capital_Stock_and_Sharebased_C
Capital Stock and Share-based Compensation | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Capital Stock and Share-based Compensation | ' | |||||||
Capital Stock and Share-based Compensation | ' | |||||||
11. Capital Stock and Share-based Compensation | ||||||||
Common Stock | ||||||||
The Company has one class of common stock issued and outstanding. Each share of common stock is entitled to one vote per share. | ||||||||
No dividends were paid by the Company during the years ended December 31, 2013, 2012 or 2011. Provisions in certain of the Company's aircraft lease agreements restrict the Company's ability to pay dividends. | ||||||||
Special Preferred Stock | ||||||||
The IAM, AFA, and ALPA each hold one share of Special Preferred Stock, which entitles each union to nominate one director to the Company's Board of Directors. In addition, each series of the Special Preferred Stock, unless otherwise specified: (i) ranks senior to the Company's common stock and ranks pari passu with each other series of Special Preferred Stock with respect to liquidation, dissolution and winding up of the Company and will be entitled to receive $0.01 per share before any payments are made, or assets distributed to holders of any stock ranking junior to the Special Preferred Stock; (ii) has no dividend rights unless a dividend is declared and paid on the Company's common stock, in which case the Special Preferred Stock would be entitled to receive a dividend in an amount per share equal to two times the dividend per share paid on the common stock; (iii) is entitled to one vote per share of such series and votes with the common stock as a single class on all matters submitted to holders of the Company's common stock; and (iv) automatically converts into the Company's common stock on a 1:1 basis, at such time as such shares are transferred or such holders are no longer entitled to nominate a representative to the Company's Board of Directors pursuant to their respective collective bargaining agreements. | ||||||||
Share-Based Compensation | ||||||||
Total share-based compensation expense recognized by the Company under ASC 718 was $4.6 million, $3.4 million and $4.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, $4.1 million of share-based compensation expense related to unvested stock options and other awards (inclusive of $0.3 million for stock options and other awards granted to non-employee directors) is attributable to future performance and has not yet been recognized. The related expense will be recognized over a weighted average period of approximately 1.1 years. | ||||||||
Stock Options | ||||||||
The aggregate intrinsic value of stock options outstanding and exercisable as of December 31, 2013 and 2012 was $9.7 million and $5.0 million, respectively. | ||||||||
Performance and Market-Based Stock Awards | ||||||||
During 2013, the Company granted performance-based and market-based awards covering 501,542 shares of Company Common Stock (the Target Award) with a maximum payout of 802,212 shares of Common Stock (the Maximum Award) to employees pursuant to the Company's 2005 Stock Incentive Plan. These awards vest over a period of three years. The Company valued the performance-based awards using grant date fair values equal to the Company's share price on the measurement date and the market-based awards using the lattice model with the following assumptions: expected volatility of 68.5%, risk-free interest rate of 1.21%, expected life of 3.5 years and expected dividend yield of zero. | ||||||||
The following table summarizes information about performance and market-based stock awards: | ||||||||
Number of units | Weighted | |||||||
average | ||||||||
grant date | ||||||||
fair value | ||||||||
Non-vested at December 31, 2012 | 1,069,889 | $ | 6.09 | |||||
Granted during the period | 501,542 | 5.74 | ||||||
Vested during the period | (198,112 | ) | 6.96 | |||||
Forfeited during the period | (230,727 | ) | 5.59 | |||||
Non-vested at December 31, 2013 | 1,142,592 | $ | 5.88 | |||||
Time-Based Stock Awards | ||||||||
During 2013, the Company awarded 378,845 time-based stock awards to employees and non-employee directors, pursuant to the Company's 2005 Stock Incentive Plan. These awards vest over a period of one to three years and have a grant date fair value equal to the Company's share price on the measurement date. | ||||||||
The following table summarizes information about outstanding time-based stock awards: | ||||||||
Number of units | Weighted | |||||||
average | ||||||||
grant date | ||||||||
fair value | ||||||||
Non-vested at December 31, 2012 | 548,282 | $ | 6.19 | |||||
Granted during the period | 378,845 | 5.7 | ||||||
Vested during the period | (323,094 | ) | 6.2 | |||||
Forfeited during the period | (43,135 | ) | 6.03 | |||||
Non-vested at December 31, 2013 | 560,898 | $ | 5.86 | |||||
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Commitments and Contingent Liabilities | ' | ||||||||||||||||
Commitments and Contingent Liabilities | ' | ||||||||||||||||
12. Commitments and Contingent Liabilities | |||||||||||||||||
Commitments | |||||||||||||||||
As of December 31, 2013, the Company had the following capital commitments consisting of firm aircraft and engine orders and purchase rights: | |||||||||||||||||
Aircraft Type | Firm | Purchase | Expected Delivery Dates | ||||||||||||||
Orders | Rights | ||||||||||||||||
A330-200 aircraft | 8 | 3 | Between 2014 and 2015 | ||||||||||||||
A350XWB-800 aircraft | 6 | 6 | Between 2017 and 2020 | ||||||||||||||
A321neo aircraft | 16 | 9 | Between 2017 and 2020 | ||||||||||||||
Rolls-Royce spare engines: | |||||||||||||||||
A330-200 spare engines | 2 | — | In 2014 | ||||||||||||||
A350XWB-800 spare engines | 2 | — | Between 2017 and 2020 | ||||||||||||||
Pratt & Whitney spare engines: | |||||||||||||||||
A321neo spare engines | 2 | — | Between 2017 and 2018 | ||||||||||||||
The Company has operating commitments with a third-party to provide aircraft maintenance services which include fixed payments as well as variable payments based on flight hours for our Airbus fleet through 2027. The Company also has operating commitments with third-party service providers for reservations, IT, and accounting services through 2017. | |||||||||||||||||
Committed capital and operating expenditures include escalation and variable amounts based on estimated forecasts. The gross committed expenditures for upcoming aircraft deliveries and committed financings for those deliveries for the next five years and thereafter are detailed below: | |||||||||||||||||
Capital | Operating | Total Commited | Less: Committed | Net Committed | |||||||||||||
Expenditures | Financing for Upcoming | Expenditures | |||||||||||||||
Aircraft Deliveries* | |||||||||||||||||
(in thousands) | |||||||||||||||||
2014 | $ | 421,472 | $ | 57,017 | $ | 478,489 | $ | 368,430 | $ | 110,059 | |||||||
2015 | 245,589 | 55,271 | 300,860 | — | 300,860 | ||||||||||||
2016 | 147,824 | 43,643 | 191,467 | — | 191,467 | ||||||||||||
2017 | 493,824 | 42,383 | 536,207 | — | 536,207 | ||||||||||||
2018 | 212,114 | 37,352 | 249,466 | — | 249,466 | ||||||||||||
Thereafter | 893,582 | 255,650 | 1,149,232 | — | 1,149,232 | ||||||||||||
$ | 2,414,405 | $ | 491,316 | $ | 2,905,721 | $ | 368,430 | $ | 2,537,291 | ||||||||
* | |||||||||||||||||
See below for a detailed discussion of the committed financings Hawaiian has received for its upcoming capital commitments for aircraft deliveries. | |||||||||||||||||
Enhanced Equipment Trust Certificates (EETC) | |||||||||||||||||
In May 2013, Hawaiian consummated an EETC financing, whereby it created two pass-through trusts, one of which issued $328.2 million aggregate principal amount of Class A pass-through certificates with a stated interest rate of 3.9% and the second of which issued $116.3 million aggregate principal amount of Class B pass-through certificates with a stated interest rate of 4.95%. As of December 31, 2013, the Company received $76.1 million in proceeds from the issuance of the equipment notes, which it used to fund a portion of the purchase price of one Airbus aircraft. The remaining proceeds of the issuance of the Class A and Class B pass-through certificates, will be used to purchase equipment notes to be issued by Hawaiian to finance the purchase of five (5) new Airbus aircraft scheduled for delivery through October 2014. Hawaiian took delivery of the first aircraft in November 2013. The equipment notes will be secured by a lien on the aircraft, and the payment obligations of Hawaiian under the equipment notes will be fully and unconditionally guaranteed by the Company. The Company expects to issue the equipment notes to the trusts as aircraft are delivered to Hawaiian. Hawaiian will record the debt obligation upon issuance of the equipment notes rather than upon the initial issuance of the pass-through certificates. In connection with this transaction, Hawaiian was required to deposit $16.0 million into a collateral account. The funds held in this account are under the control of a third party. Accordingly, these funds are classified as restricted cash in the Company's Consolidated Balance Sheets. | |||||||||||||||||
The Company evaluated whether the pass-through trusts formed are variable interest entities ("VIEs") required to be consolidated by the Company under applicable accounting guidance, and determined that the pass-through trusts are VIEs. The Company determined that it does not have a variable interest in the pass-through trusts. Neither the Company nor Hawaiian invested in or obtained a financial interest in the pass-through trusts. Rather, Hawaiian has an obligation to make interest and principal payments on its equipment notes held by the pass-through trusts, which will be fully and unconditionally guaranteed by the Company. Neither the Company nor Hawaiian intends to have any voting or non-voting equity interest in the pass-through trusts or to absorb variability from the pass-through trusts. Based on this analysis, the Company determined that it is not required to consolidate the pass-through trusts. | |||||||||||||||||
Capacity purchase agreement | |||||||||||||||||
In January 2014, Hawaiian entered into a capacity purchase agreement with Empire Airlines, Inc., to operate the aircraft for the turboprop operations in connection with the "'Ohana by Hawaiian" Neighbor Island service. The anticipated future commitments for this agreement, not included in the table above, is approximately $7.9 million in 2014, $5.3 million in 2015, $5.3 million in 2016, $5.5 million in 2017 and $5.5 million in 2018. | |||||||||||||||||
Litigation and Contingencies | |||||||||||||||||
The Company is subject to legal proceedings arising in the normal course of its operations. Management does not anticipate that the disposition of any currently pending proceeding will have a material effect on the Company's operations, business or financial condition. | |||||||||||||||||
General Guarantees and Indemnifications | |||||||||||||||||
In the normal course of business, the Company enters into numerous aircraft financing and real estate leasing arrangements that have various guarantees included in the contract. It is common in such lease transactions for the lessee to agree to indemnify the lessor and other related third-parties for tort liabilities that arise out of or relate to the lessee's use of the leased aircraft or occupancy of the leased premises. In some cases, this indemnity extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by their gross negligence or willful misconduct. Additionally, the lessee typically indemnifies such parties for any environmental liability that arises out of or relates to its use of the real estate leased premises. The Company believes that it is insured (subject to deductibles) for most tort liabilities and related indemnities described above with respect to the aircraft and real estate that it leases. The Company cannot estimate the potential amount of future payments, if any, under the foregoing indemnities and agreements. | |||||||||||||||||
Credit Card Holdback | |||||||||||||||||
Under the Company's bank-issued credit card processing agreements, certain proceeds from advance ticket sales may be held back to serve as collateral to cover any possible chargebacks or other disputed charges that may occur. These holdbacks, which are included in restricted cash in the Company's Consolidated Balance Sheets, totaled $5.0 million at December 31, 2013 and 2012. | |||||||||||||||||
In the event of a material adverse change in the business, the holdback could increase to an amount up to 100% of the applicable credit card air traffic liability, which would also cause an increase in the level of restricted cash. If the Company is unable to obtain a waiver of, or otherwise mitigate the increase in the restriction of cash, it could also cause a covenant violation under other debt or lease obligations and have a material adverse impact on the Company. | |||||||||||||||||
Geographic_Information
Geographic Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Geographic Information | ' | ||||||||||
Geographic Information | ' | ||||||||||
13. Geographic Information | |||||||||||
The Company's primary operations are that of its wholly-owned subsidiary, Hawaiian. Principally all operations of Hawaiian either originate and/or end in the State of Hawai'i. The management of such operations is based on a system-wide approach due to the interdependence of Hawaiian's route structure in its various markets. As Hawaiian offers only one significant line of business (i.e., air transportation), management has concluded that it has only one segment. | |||||||||||
The Company's operating revenues by geographic region (as defined by the Department of Transportation, DOT) are summarized below: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Domestic | $ | 1,493,295 | $ | 1,378,498 | $ | 1,272,196 | |||||
Pacific | 662,570 | 583,855 | 378,263 | ||||||||
Total operating revenue | $ | 2,155,865 | $ | 1,962,353 | $ | 1,650,459 | |||||
Hawaiian attributes operating revenue by geographic region based upon the origin and destination of each flight segment. Hawaiian's tangible assets consist primarily of flight equipment, which are mobile across geographic markets, and, therefore, have not been allocated to specific geographic regions. | |||||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplemental Cash Flow Information | ' | ||||||||||
Supplemental Cash Flow Information | ' | ||||||||||
14. Supplemental Cash Flow Information | |||||||||||
Supplemental disclosures of cash flow information and non-cash investing and financing activities were as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Cash payments for interest (net of amounts capitalized) | $ | 36,574 | $ | 35,153 | $ | 15,600 | |||||
Cash payments (refunds) for income taxes | 2 | (16,913 | ) | (21,281 | ) | ||||||
Investing and Financing Activities Not Affecting Cash: | |||||||||||
Property and equipment acquired through a capital lease | 11,840 | 111,921 | — |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Condensed Consolidating Financial Information | ' | ||||||||||||||||
Condensed Consolidating Financial Information | ' | ||||||||||||||||
15. Condensed Consolidating Financial Information | |||||||||||||||||
The following condensed consolidating financial information is presented in accordance with Regulation S-X paragraph 210.3-10 because, in connection with the issuance by two pass-through trusts formed by Hawaiian (which is also referred to in this Note 15 as Subsidiary Issuer / Guarantor) of pass-through certificates, as discussed in Note 12, the Company (which is also referred to in this Note 15 as Parent Issuer / Guarantor), will fully and unconditionally guarantee the payment obligations of Hawaiian, which is a 100% owned subsidiary of the Company, under equipment notes to be issued by Hawaiian to purchase new aircraft. | |||||||||||||||||
Also, in accordance with Regulation S-X paragraph 210.5-04(c), the Company is required to report condensed financial information as a result of limitations on the ability of Hawaiian to pay dividends or advances to the Company included in Hawaiian's debt agreements. The Company's condensed consolidating financial information satisfies this requirement. | |||||||||||||||||
Condensed consolidating financial statements are presented in the following tables: | |||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
Operating Revenue | $ | — | $ | 2,155,554 | $ | 647 | $ | (336 | ) | $ | 2,155,865 | ||||||
Operating Expenses: | |||||||||||||||||
Aircraft fuel, including taxes and delivery | — | 698,802 | — | — | 698,802 | ||||||||||||
Wages and benefits | — | 427,438 | — | — | 427,438 | ||||||||||||
Aircraft rent | — | 108,534 | — | — | 108,534 | ||||||||||||
Maintenance materials and repairs | — | 203,387 | — | — | 203,387 | ||||||||||||
Aircraft and passenger servicing | — | 120,635 | — | — | 120,635 | ||||||||||||
Commissions and other selling | — | 125,962 | — | (62 | ) | 125,900 | |||||||||||
Depreciation and amortization | — | 83,050 | — | — | 83,050 | ||||||||||||
Other rentals and landing fees | — | 81,317 | — | — | 81,317 | ||||||||||||
Other | 7,772 | 165,101 | 456 | (274 | ) | 173,055 | |||||||||||
Total | 7,772 | 2,014,226 | 456 | (336 | ) | 2,022,118 | |||||||||||
Operating Income (Loss) | (7,772 | ) | 141,328 | 191 | — | 133,747 | |||||||||||
Nonoperating Income (Expense): | |||||||||||||||||
Undistributed net income of subsidiaries | 62,549 | — | — | (62,549 | ) | — | |||||||||||
Interest expense and amortization of debt discounts and issuance costs | (8,710 | ) | (41,743 | ) | — | — | (50,453 | ) | |||||||||
Interest income | 132 | 507 | — | — | 639 | ||||||||||||
Capitalized interest | — | 12,625 | — | — | 12,625 | ||||||||||||
Losses on fuel derivatives | — | (5,334 | ) | — | — | (5,334 | ) | ||||||||||
Other, net | — | (4,814 | ) | — | — | (4,814 | ) | ||||||||||
Total | 53,971 | (38,759 | ) | — | (62,549 | ) | (47,337 | ) | |||||||||
Income Before Income Taxes | 46,199 | 102,569 | 191 | (62,549 | ) | 86,410 | |||||||||||
Income tax expense (benefit) | (5,655 | ) | 40,211 | — | — | 34,556 | |||||||||||
Net Income | $ | 51,854 | $ | 62,358 | $ | 191 | $ | (62,549 | ) | $ | 51,854 | ||||||
Comprehensive Income | $ | 123,222 | $ | 133,726 | $ | 191 | $ | (133,917 | ) | $ | 123,222 | ||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
Operating Revenue | $ | — | $ | 1,962,571 | $ | 41 | $ | (259 | ) | $ | 1,962,353 | ||||||
Operating Expenses: | |||||||||||||||||
Aircraft fuel, including taxes and oil | — | 631,741 | — | — | 631,741 | ||||||||||||
Wages and benefits | — | 376,574 | — | — | 376,574 | ||||||||||||
Aircraft rent | — | 98,786 | — | — | 98,786 | ||||||||||||
Maintenance materials and repairs | — | 183,552 | — | — | 183,552 | ||||||||||||
Aircraft and passenger servicing | — | 103,825 | — | — | 103,825 | ||||||||||||
Commissions and other selling | — | 114,366 | — | (42 | ) | 114,324 | |||||||||||
Depreciation and amortization | — | 85,599 | — | — | 85,599 | ||||||||||||
Other rentals and landing fees | — | 85,623 | — | — | 85,623 | ||||||||||||
Other | 4,712 | 148,300 | 136 | (217 | ) | 152,931 | |||||||||||
Total | 4,712 | 1,828,366 | 136 | (259 | ) | 1,832,955 | |||||||||||
Operating Income (Loss) | (4,712 | ) | 134,205 | (95 | ) | — | 129,398 | ||||||||||
Nonoperating Income (Expense): | |||||||||||||||||
Undistributed net income of subsidiaries | 61,388 | — | — | (61,388 | ) | — | |||||||||||
Interest expense and amortization of debt discounts and issuance costs | (8,330 | ) | (35,192 | ) | — | — | (43,522 | ) | |||||||||
Interest income | 114 | 466 | — | — | 580 | ||||||||||||
Capitalized interest | — | 10,524 | — | — | 10,524 | ||||||||||||
Losses on fuel derivatives | — | (11,330 | ) | — | — | (11,330 | ) | ||||||||||
Other, net | — | 136 | — | — | 136 | ||||||||||||
Total | 53,172 | (35,396 | ) | — | (61,388 | ) | (43,612 | ) | |||||||||
Income (Loss) Before Income Taxes | 48,460 | 98,809 | (95 | ) | (61,388 | ) | 85,786 | ||||||||||
Income tax expense (benefit) | (4,777 | ) | 37,326 | — | — | 32,549 | |||||||||||
Net Income (Loss) | $ | 53,237 | $ | 61,483 | $ | (95 | ) | $ | (61,388 | ) | $ | 53,237 | |||||
Comprehensive Income (Loss) | $ | 53,237 | $ | 49,769 | $ | (95 | ) | $ | (61,388 | ) | $ | 41,523 | |||||
Condensed Consolidating Statements of Operations and Comprehensive Loss | |||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
Operating Revenue | $ | — | $ | 1,650,616 | $ | 17 | $ | (174 | ) | $ | 1,650,459 | ||||||
Operating Expenses: | |||||||||||||||||
Aircraft fuel, including taxes and oil | — | 513,284 | — | — | 513,284 | ||||||||||||
Wages and benefits | — | 321,241 | — | — | 321,241 | ||||||||||||
Aircraft rent | — | 112,883 | — | — | 112,883 | ||||||||||||
Maintenance materials and repairs | — | 169,851 | — | — | 169,851 | ||||||||||||
Aircraft and passenger servicing | — | 82,250 | — | — | 82,250 | ||||||||||||
Commissions and other selling | — | 96,290 | — | (26 | ) | 96,264 | |||||||||||
Depreciation and amortization | — | 66,262 | — | — | 66,262 | ||||||||||||
Other rentals and landing fees | — | 72,445 | — | — | 72,445 | ||||||||||||
Other | 4,467 | 121,278 | 85 | (148 | ) | 125,682 | |||||||||||
Lease termination charges | — | 70,014 | — | — | 70,014 | ||||||||||||
Total | 4,467 | 1,625,798 | 85 | (174 | ) | 1,630,176 | |||||||||||
Operating Income (Loss) | (4,467 | ) | 24,818 | (68 | ) | — | 20,283 | ||||||||||
Nonoperating Income (Expense): | |||||||||||||||||
Undistributed net income of subsidiaries | 2,654 | — | — | (2,654 | ) | — | |||||||||||
Interest expense and amortization of debt discounts and issuance costs | (6,209 | ) | (18,312 | ) | — | — | (24,521 | ) | |||||||||
Interest income | 128 | 1,386 | — | — | 1,514 | ||||||||||||
Capitalized interest | — | 7,771 | — | — | 7,771 | ||||||||||||
Losses on fuel derivatives | — | (6,862 | ) | — | — | (6,862 | ) | ||||||||||
Other, net | — | 733 | — | — | 733 | ||||||||||||
Total | (3,427 | ) | (15,284 | ) | — | (2,654 | ) | (21,365 | ) | ||||||||
Income (Loss) Before Income Taxes | (7,894 | ) | 9,534 | (68 | ) | (2,654 | ) | (1,082 | ) | ||||||||
Income tax expense (benefit) | (5,245 | ) | 6,812 | — | — | 1,567 | |||||||||||
Net Income (Loss) | $ | (2,649 | ) | $ | 2,722 | $ | (68 | ) | $ | (2,654 | ) | $ | (2,649 | ) | |||
Comprehensive Loss | $ | (2,649 | ) | $ | (64,339 | ) | $ | (68 | ) | $ | (2,654 | ) | $ | (69,710 | ) | ||
Condensed Consolidating Balance Sheets | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 84,797 | $ | 333,663 | $ | 4,924 | $ | — | $ | 423,384 | |||||||
Restricted cash | — | 19,434 | — | — | 19,434 | ||||||||||||
Accounts receivable, net | 1,192 | 73,241 | 31 | (219 | ) | 74,245 | |||||||||||
Spare parts and supplies, net | — | 19,767 | — | — | 19,767 | ||||||||||||
Deferred tax assets, net | — | 17,325 | — | — | 17,325 | ||||||||||||
Prepaid expenses and other | — | 51,613 | 39 | — | 51,652 | ||||||||||||
Total | 85,989 | 515,043 | 4,994 | (219 | ) | 605,807 | |||||||||||
Property and equipment at cost | — | 1,629,517 | 31,917 | — | 1,661,434 | ||||||||||||
Less accumulated depreciation and amortization | — | (327,102 | ) | — | — | (327,102 | ) | ||||||||||
Property and equipment, net | — | 1,302,415 | 31,917 | — | 1,334,332 | ||||||||||||
Long-term prepayments and other | 1,171 | 90,782 | — | — | 91,953 | ||||||||||||
Restricted cash | — | 1,566 | — | — | 1,566 | ||||||||||||
Deferred tax assets, net | 14,767 | — | — | (14,767 | ) | — | |||||||||||
Goodwill and other intangible assets, net | — | 130,603 | — | — | 130,603 | ||||||||||||
Intercompany receivable | 25,286 | — | — | (25,286 | ) | — | |||||||||||
Investment in consolidated subsidiaries | 348,040 | — | — | (348,040 | ) | — | |||||||||||
TOTAL ASSETS | $ | 475,253 | $ | 2,040,409 | $ | 36,911 | $ | (388,312 | ) | $ | 2,164,261 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 532 | $ | 88,990 | $ | 484 | $ | (219 | ) | $ | 89,787 | ||||||
Air traffic liability | — | 407,359 | 1,727 | — | 409,086 | ||||||||||||
Other accrued liabilities | 1,307 | 96,264 | — | — | 97,571 | ||||||||||||
Current maturities of long-term debt and capital lease obligations | — | 62,187 | — | — | 62,187 | ||||||||||||
Total | 1,839 | 654,800 | 2,211 | (219 | ) | 658,631 | |||||||||||
Long-term debt, less discount, and capital lease obligations | 76,550 | 667,736 | — | — | 744,286 | ||||||||||||
Intercompany payable | — | 25,286 | — | (25,286 | ) | — | |||||||||||
Other liabilities and deferred credits: | |||||||||||||||||
Accumulated pension and other postretirement benefit obligations. | — | 264,106 | — | — | 264,106 | ||||||||||||
Other liabilities and deferred credits | — | 59,424 | — | — | 59,424 | ||||||||||||
Deferred tax liabilities, net | — | 55,717 | — | (14,767 | ) | 40,950 | |||||||||||
Total | — | 379,247 | — | (14,767 | ) | 364,480 | |||||||||||
Shareholders' equity | 396,864 | 313,340 | 34,700 | (348,040 | ) | 396,864 | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 475,253 | $ | 2,040,409 | $ | 36,911 | $ | (388,312 | ) | $ | 2,164,261 | ||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 83,626 | $ | 303,967 | $ | 18,287 | $ | — | $ | 405,880 | |||||||
Restricted cash | — | 5,000 | — | — | 5,000 | ||||||||||||
Accounts receivable, net | 2,032 | 78,949 | 13 | (244 | ) | 80,750 | |||||||||||
Spare parts and supplies, net | — | 27,552 | — | — | 27,552 | ||||||||||||
Deferred tax assets, net | 704 | 16,971 | — | — | 17,675 | ||||||||||||
Prepaid expenses and other | — | 35,001 | — | — | 35,001 | ||||||||||||
Total | 86,362 | 467,440 | 18,300 | (244 | ) | 571,858 | |||||||||||
Property and equipment at cost | — | 1,299,757 | 18,456 | — | 1,318,213 | ||||||||||||
Less accumulated depreciation and amortization | — | (249,495 | ) | — | — | (249,495 | ) | ||||||||||
Property and equipment, net | — | 1,050,262 | 18,456 | — | 1,068,718 | ||||||||||||
Long-term prepayments and other | 1,695 | 53,934 | — | — | 55,629 | ||||||||||||
Deferred tax assets, net | 8,439 | 27,937 | — | — | 36,376 | ||||||||||||
Goodwill and other intangible assets, net | — | 133,243 | — | — | 133,243 | ||||||||||||
Intercompany receivable | 33,110 | — | — | (33,110 | ) | — | |||||||||||
Investment in consolidated subsidiaries | 213,275 | — | — | (213,275 | ) | — | |||||||||||
TOTAL ASSETS | $ | 342,881 | $ | 1,732,816 | $ | 36,756 | $ | (246,629 | ) | $ | 1,865,824 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 292 | $ | 81,758 | $ | 278 | $ | (244 | ) | $ | 82,084 | ||||||
Air traffic liability | — | 386,677 | 1,969 | — | 388,646 | ||||||||||||
Other accrued liabilities | 1,310 | 73,518 | — | — | 74,828 | ||||||||||||
Current maturities of long-term debt and capital lease obligations | — | 108,232 | — | — | 108,232 | ||||||||||||
Total | 1,602 | 650,185 | 2,247 | (244 | ) | 653,790 | |||||||||||
Long-term debt, less discount, and capital lease obligations | 72,677 | 480,332 | — | — | 553,009 | ||||||||||||
Intercompany payable | — | 33,110 | — | (33,110 | ) | — | |||||||||||
Other liabilities and deferred credits: | |||||||||||||||||
Accumulated pension and other postretirement benefit obligations | — | 352,460 | — | — | 352,460 | ||||||||||||
Other liabilities and deferred credits | — | 37,963 | — | — | 37,963 | ||||||||||||
Total | — | 390,423 | — | — | 390,423 | ||||||||||||
Shareholders' equity | 268,602 | 178,766 | 34,509 | (213,275 | ) | 268,602 | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 342,881 | $ | 1,732,816 | $ | 36,756 | $ | (246,629 | ) | $ | 1,865,824 | ||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
Net Cash Provided By (Used In) Operating Activities: | $ | (8,088 | ) | $ | 251,260 | $ | 98 | $ | — | $ | 243,270 | ||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Net payments from subsidiaries | 6,883 | — | — | (6,883 | ) | — | |||||||||||
Additions to property and equipment, including pre-delivery deposits | — | (328,767 | ) | (13,461 | ) | — | (342,228 | ) | |||||||||
Proceeds from disposition of property and equipment | — | 14,414 | — | — | 14,414 | ||||||||||||
Net cash provided by (used in) investing activities | 6,883 | (314,353 | ) | (13,461 | ) | (6,883 | ) | (327,814 | ) | ||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Proceeds from exercise of stock options | 2,376 | — | — | — | 2,376 | ||||||||||||
Long-term borrowings | — | 243,110 | — | — | 243,110 | ||||||||||||
Repayments of long-term debt and capital lease obligations | — | (113,592 | ) | — | — | (113,592 | ) | ||||||||||
Debt issuance costs | — | (13,846 | ) | — | — | (13,846 | ) | ||||||||||
Net payments to parent company | — | (6,883 | ) | — | 6,883 | — | |||||||||||
Change in cash collateral for EETC financing | — | (16,000 | ) | — | — | (16,000 | ) | ||||||||||
Net cash provided by financing activities | 2,376 | 92,789 | — | 6,883 | 102,048 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 1,171 | 29,696 | (13,363 | ) | — | 17,504 | |||||||||||
Cash and cash equivalents—Beginning of Period | 83,626 | 303,967 | 18,287 | — | 405,880 | ||||||||||||
Cash and cash equivalents—End of Period | $ | 84,797 | $ | 333,663 | $ | 4,924 | $ | — | $ | 423,384 | |||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
Net Cash Provided By Operating Activities: | $ | 10,669 | $ | 299,845 | $ | 503 | $ | — | $ | 311,017 | |||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Net payments to subsidiaries | (25,750 | ) | — | — | 25,750 | — | |||||||||||
Additions to property and equipment, including pre-delivery deposits | — | (272,243 | ) | (18,456 | ) | — | (290,699 | ) | |||||||||
Net cash used in investing activities | (25,750 | ) | (272,243 | ) | (18,456 | ) | 25,750 | (290,699 | ) | ||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Proceeds from exercise of stock options | 1,488 | — | — | — | 1,488 | ||||||||||||
Long-term borrowings | — | 133,000 | — | — | 133,000 | ||||||||||||
Repayments of long-term debt and capital lease obligations | — | (49,129 | ) | — | — | (49,129 | ) | ||||||||||
Debt issuance costs | — | (3,828 | ) | — | — | (3,828 | ) | ||||||||||
Net payments from (to) parent company | — | (9,250 | ) | 35,000 | (25,750 | ) | — | ||||||||||
Other | — | (84 | ) | — | — | (84 | ) | ||||||||||
Net cash provided by financing activities | 1,488 | 70,709 | 35,000 | (25,750 | ) | 81,447 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (13,593 | ) | 98,311 | 17,047 | — | 101,765 | |||||||||||
Cash and cash equivalents—Beginning of Period | 97,219 | 205,656 | 1,240 | — | 304,115 | ||||||||||||
Cash and cash equivalents—End of Period | $ | 83,626 | $ | 303,967 | $ | 18,287 | $ | — | $ | 405,880 | |||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
Net Cash Provided By (Used In) Operating Activities: | $ | (7,954 | ) | $ | 186,465 | $ | 253 | $ | — | $ | 178,764 | ||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Net payments from subsidiaries | 9,676 | — | — | (9,676 | ) | — | |||||||||||
Additions to property and equipment, including pre-delivery deposits | — | (281,903 | ) | — | — | (281,903 | ) | ||||||||||
Net cash provided by (used in) investing activities | 9,676 | (281,903 | ) | — | (9,676 | ) | (281,903 | ) | |||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Proceeds from exercise of stock options | 226 | — | — | — | 226 | ||||||||||||
Convertible Notes: | |||||||||||||||||
Issuance of convertible notes | 86,250 | — | — | — | 86,250 | ||||||||||||
Purchase of call options | (19,504 | ) | — | — | — | (19,504 | ) | ||||||||||
Proceeds from issuance of warrants | 11,948 | — | — | — | 11,948 | ||||||||||||
Long-term borrowings | — | 132,000 | — | — | 132,000 | ||||||||||||
Repayments of long-term debt and capital lease obligations | — | (80,023 | ) | — | — | (80,023 | ) | ||||||||||
Debt issuance costs | (3,390 | ) | (5,336 | ) | — | — | (8,726 | ) | |||||||||
Net payments to parent company | — | (9,676 | ) | — | 9,676 | — | |||||||||||
Other | — | 46 | — | — | 46 | ||||||||||||
Short-term borrowings | |||||||||||||||||
Net cash provided by financing activities | 75,530 | 37,011 | — | 9,676 | 122,217 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 77,252 | (58,427 | ) | 253 | — | 19,078 | |||||||||||
Cash and cash equivalents—Beginning of Year | 19,967 | 264,083 | 987 | — | 285,037 | ||||||||||||
Cash and cash equivalents—End of Year | $ | 97,219 | $ | 205,656 | $ | 1,240 | $ | — | $ | 304,115 | |||||||
Certain Restrictions on Subsidiary Distributions, Dividends and Repurchases | |||||||||||||||||
The Company and Hawaiian are party to an Amended and Restated Credit Agreement (Credit Agreement), dated as of December 10, 2010, that provides for a Revolving Credit Facility. See further discussion of the Revolving Credit Facility at Note 7. The Credit Agreement provides that, subject to certain exceptions, neither Hawaiian nor any other subsidiary of the Company will make any distribution or other payment on account of, or declare or pay any dividend on, or purchase, acquire, redeem or retire any stock issued by Hawaiian or any other subsidiary of the Company. The exceptions include (i) distributions by Hawaiian to the Company for the purpose of allowing the Company to pay federal and state income and franchise taxes, (ii) distributions by Hawaiian to the Company to pay customary costs and expenses of operating a publicly-traded company in an aggregate amount in any year not to exceed $10.0 million, and (iii) so long as no event of default has occurred and is continuing or would result therefrom, distributions by Hawaiian to the Company for the purpose of making regularly scheduled interest payments on specified indebtedness of the Company. In addition, the Credit Agreement restricts the ability of Hawaiian and the other subsidiaries of the Company from making loans or advances to the Company. The net assets of Hawaiian restricted under the Credit Agreement, defined as shareholders' equity, totaled $313.3 million and $178.8 million as of December 31, 2013 and 2012, respectively. | |||||||||||||||||
Long-Term Debt | |||||||||||||||||
The long-term debt included in the Parent Issuer / Guarantor column represents the Convertible Debt described in Note 7. | |||||||||||||||||
Income Taxes | |||||||||||||||||
The income tax expense (benefit) is presented as if each entity that is part of the consolidated group files a separate return. | |||||||||||||||||
Supplemental_Financial_Informa
Supplemental Financial Information (unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Supplemental Financial Information (unaudited) | ' | |||||||||||||
Supplemental Financial Information (unaudited) | ' | |||||||||||||
16. Supplemental Financial Information (unaudited) | ||||||||||||||
Unaudited Quarterly Financial Information: | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(in thousands, except per share data) | ||||||||||||||
2013:00:00 | ||||||||||||||
Operating revenue | $ | 490,754 | $ | 533,928 | $ | 599,298 | $ | 531,885 | ||||||
Operating income (loss) | (11,926 | ) | 37,391 | 74,434 | 33,848 | |||||||||
Nonoperating loss | (15,453 | ) | (19,176 | ) | (7,016 | ) | (5,692 | ) | ||||||
Net income (loss) | (17,145 | ) | 11,316 | 40,604 | 17,079 | |||||||||
Net income (loss) per common stock share: | ||||||||||||||
Basic | (0.33 | ) | 0.22 | 0.78 | 0.33 | |||||||||
Diluted | (0.33 | ) | 0.21 | 0.76 | 0.31 | |||||||||
2012:00:00 | ||||||||||||||
Operating revenue | $ | 435,494 | $ | 484,551 | $ | 549,322 | $ | 492,986 | ||||||
Operating income | 12,900 | 29,328 | 74,933 | 12,237 | ||||||||||
Nonoperating loss | (1,041 | ) | (23,019 | ) | (1,130 | ) | (18,422 | ) | ||||||
Net income (loss) | 7,258 | 3,904 | 45,483 | (3,408 | ) | |||||||||
Net income (loss) per common stock share: | ||||||||||||||
Basic | 0.14 | 0.08 | 0.88 | (0.07 | ) | |||||||||
Diluted | 0.14 | 0.07 | 0.86 | (0.07 | ) | |||||||||
In the fourth quarter of 2012, the Company recorded a net frequent flyer pre-tax adjustment of $7.3 million to correct an error in the Company's accounting for its sale of mileage credits to companies participating in the Company's frequent flyer program that are deferred and recognized as passenger revenue. The correction resulted in a change in the deferral period from 19 to 22 months. The error primarily relates to prior periods and the impact of the error was not material to any prior period or the 2012 fiscal year. | ||||||||||||||
The sum of the quarterly net income (loss) per common stock 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. | ||||||||||||||
Schedule_IIValuation_and_Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | ' | ||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | ' | ||||||||||||||||
Schedule II—Hawaiian Holdings, Inc. | |||||||||||||||||
Valuation and Qualifying Accounts (in thousands) | |||||||||||||||||
Years Ended December 31, 2013, 2012 and 2011 | |||||||||||||||||
COLUMN A | COLUMN B | COLUMN C | COLUMN D | COLUMN E | |||||||||||||
ADDITIONS | |||||||||||||||||
Description | Balance at | -1 | -2 | Deductions | Balance at | ||||||||||||
Beginning of | Charged to | Charged | End of | ||||||||||||||
Year | Costs and | to | Year | ||||||||||||||
Expenses | Other | ||||||||||||||||
Accounts | |||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||
2013 | $ | 371 | 292 | — | -562 | (a) | $ | 101 | |||||||||
2012 | $ | 630 | 185 | — | -444 | (a) | $ | 371 | |||||||||
2011 | $ | 744 | 1,491 | — | -1,605 | (a) | $ | 630 | |||||||||
Allowance for Obsolescence of Flight Equipment Expendable Parts and Supplies | |||||||||||||||||
2013 | $ | 10,963 | 2,471 | (b) | — | -633 | (c) | $ | 12,801 | ||||||||
2012 | $ | 8,824 | 2,388 | (b) | — | -249 | (c) | $ | 10,963 | ||||||||
2011 | $ | 6,979 | 2,056 | (b) | — | -211 | (c) | $ | 8,824 | ||||||||
(a) | |||||||||||||||||
Doubtful accounts written off, net of recoveries. | |||||||||||||||||
(b) | |||||||||||||||||
Obsolescence reserve for Hawaiian flight equipment expendable parts and supplies. | |||||||||||||||||
(c) | |||||||||||||||||
Spare parts and supplies written off against the allowance for obsolescence. | |||||||||||||||||
Note, the Company did not have a tax valuation allowance for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
Basis of Presentation | ' | ||||||||||
Basis of Presentation | |||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including its principal subsidiary, Hawaiian, through which the Company conducts substantially all of its operations. All significant intercompany balances and transactions have been eliminated upon consolidation. | |||||||||||
Cash Equivalents | ' | ||||||||||
Cash Equivalents | |||||||||||
The Company considers all investments with an original maturity of three months or less at the date of purchase to be cash equivalents. | |||||||||||
Restricted Cash | ' | ||||||||||
Restricted Cash | |||||||||||
At December 31, 2013, restricted cash consisted of cash held as collateral for future interest payments owed in connection with the Enhanced Equipment Trust Certificates (EETC) financing which closed in May 2013 and cash held as collateral by institutions that process our credit card transactions for advanced ticket sales. The December 31, 2012 restricted cash balance reflected cash held as collateral by institutions that process our credit card transactions for advanced ticket sales. | |||||||||||
Accounts receivable | ' | ||||||||||
Accounts receivable | |||||||||||
Accounts receivables are carried at net realizable value and primarily consist of amounts due from credit card companies and travel agencies associated with sales of tickets for future travel and amounts due from business partners in the Company's frequent flyer programs. | |||||||||||
Spare Parts and Supplies | ' | ||||||||||
Spare Parts and Supplies | |||||||||||
Spare parts and supplies are valued at average cost, and primarily consist of expendable parts for flight equipment and other supplies. An allowance for obsolescence of expendable parts is provided over the estimated useful lives of the related aircraft and engines for spare parts expected to be on hand at the date the aircraft are retired from service. An allowance is also provided to reduce the carrying amount of excess spare parts to the lower of cost or net realizable value. These allowances are based on management's estimates and are subject to change. | |||||||||||
Property, Equipment and Depreciation | ' | ||||||||||
Property, Equipment and Depreciation | |||||||||||
Property and equipment are stated at cost and depreciated on a straight-line basis to their estimated residual values over the asset's estimated useful life. Depreciation begins when the asset is placed into service. Aircraft and related parts begin depreciating on the aircraft's first revenue flight. | |||||||||||
Estimated useful lives and residual values of property and equipment are as follows: | |||||||||||
Boeing 717-200 aircraft and engines | 7 - 11 years, 7 - 34% residual value | ||||||||||
Boeing 767-300 aircraft and engines | 7 - 20 years, 0 - 10% residual value | ||||||||||
Airbus A330-200 aircraft and engines | 25 years, 10% residual value | ||||||||||
Aircraft under capital leases | 8 - 12 years, no residual value | ||||||||||
Flight simulator under capital lease | 25 years, 10% residual value | ||||||||||
Major rotable parts | Average lease term or useful life for related aircraft, 10% - 15% residual value | ||||||||||
Improvements to leased flight equipment | Shorter of lease term or useful life | ||||||||||
Facility leasehold improvements | Shorter of lease term, including assumed lease renewals when renewal is economically compelled at key airports, or useful life | ||||||||||
Furniture, fixtures and other equipment | 3 - 7 years, no residual value | ||||||||||
Capitalized software | 3 - 7 years, no residual value | ||||||||||
Additions and modifications that significantly enhance the operating performance and/or extend the useful lives of property and equipment are capitalized and depreciated over the lesser of the remaining useful life of the asset or the remaining lease term, as applicable. Expenditures that do not improve or extend asset lives are charged to expense as incurred. Pre-delivery deposits are capitalized when paid. | |||||||||||
Aircraft under capital leases are recorded at an amount equal to the present value of minimum lease payments utilizing the Company's incremental borrowing rate at lease inception and amortized on a straight-line basis over the lesser of the remaining useful life of the aircraft or the lease term. The amortization is recorded in depreciation and amortization expense on the Consolidated Statement of Operations. | |||||||||||
The Company capitalizes certain costs related to the acquisition and development of computer software and amortizes these costs using the straight-line method over the estimated useful life of the software. The net book value of computer software, which is included in Other property and equipment on our consolidated balance sheets, was $10.8 million and $15.4 million at December 31, 2013 and 2012, respectively. Amortization expense related to computer software was $7.0 million, $7.7 million and $5.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||
Aircraft Maintenance and Repair Costs | ' | ||||||||||
Aircraft Maintenance and Repair Costs | |||||||||||
Maintenance and repair costs for owned and leased flight equipment, including the overhaul of aircraft components, are charged to operating expenses as incurred. Engine overhaul costs covered by power-by-the-hour arrangements are paid and expensed as incurred and are based on the amount of hours flown per contract. Under the terms of these power-by-the-hour agreements, the Company pays a set dollar amount per engine hour flown on a monthly basis and the third-party vendor assumes the obligation to repair the engines at no additional cost, subject to certain specified exclusions. | |||||||||||
Additionally, although the Company's aircraft lease agreements specifically provide that it is responsible for maintenance of the leased aircraft, the Company pays maintenance reserves to the aircraft lessors that are applied towards the cost of future maintenance events. These reserves are calculated based on a performance measure, such as flight hours, and are available for reimbursement to the Company upon the completion of the maintenance of the leased aircraft. However, reimbursements are limited to the available deposits associated with the specific maintenance activity for which the Company requests reimbursement. | |||||||||||
Under certain aircraft lease agreements, if there are excess amounts on deposit at the expiration of the lease, the lessor is entitled to retain any excess amounts; whereas at the expiration of certain other existing aircraft lease agreements any such excess amounts are returned to the Company, provided that it has fulfilled all of its obligations under the lease agreements. The maintenance reserves paid under the lease agreements do not transfer either the obligation to maintain the aircraft or the cost risk associated with the maintenance activities to the aircraft lessor. In addition, the Company maintains the right to select any third-party maintenance provider. | |||||||||||
The Company accounts for nonrefundable maintenance deposits as an asset until it is less than probable that any portion of the deposit is recoverable. In addition, payments of maintenance deposits that are not substantially and contractually related to the maintenance of the leased assets are expensed as incurred. Any costs that are substantially and contractually unrelated to the maintenance of the leased asset are considered to be unrecoverable. In order to properly account for the costs that are related to the maintenance of the leased asset, the Company bifurcates its maintenance deposits into two groups and expenses the proportionate share that is expected to be unrecoverable. | |||||||||||
Goodwill and Indefinite-lived Intangible Assets | ' | ||||||||||
Goodwill and Indefinite-lived Intangible Assets | |||||||||||
Goodwill and intangible assets with indefinite lives are not amortized, but are tested for impairment at least annually using a three-step process in accordance with Accounting Standard Codification (ASC) Intangibles—Goodwill and Other (ASC 350). | |||||||||||
In the event that the Company determines that the values of goodwill or indefinite-lived intangible assets have become impaired, the Company will incur an accounting charge during the period in which such determination is made. | |||||||||||
Impairment of Long-Lived Assets and Finite-lived Intangible Assets | ' | ||||||||||
Impairment of Long-Lived Assets and Finite-lived Intangible Assets | |||||||||||
Long-lived assets used in operations, consisting principally of property and equipment and finite-lived intangible assets, are tested for impairment when events or changes in circumstances indicate, in management's judgment, that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than its carrying amount. When testing for impairment, management considers market trends, the expected useful lives of the assets, changes in economic conditions, recent transactions involving sales of similar assets and, if necessary, estimates of future discounted cash flows. If, at any time, management determines the net carrying value of an asset is not recoverable, the amount is reduced to its fair value during the period in which such determination is made. Any changes in the estimated useful lives of these assets will be accounted for prospectively. | |||||||||||
Operating Leases | ' | ||||||||||
Operating Leases | |||||||||||
The Company leases aircraft, engines, airport and terminal facilities, office space, and other equipment under operating leases. Some of these lease agreements include escalation clauses and renewal options. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses on a straight-line basis over the terms of the leases in the Consolidated Statements of Operations. When lease renewals are considered to be reasonably assured, the rental payments that will be due during the renewal periods are included in the determination of rent expense over the life of the lease. | |||||||||||
Leased Aircraft Return Costs | ' | ||||||||||
Leased Aircraft Return Costs | |||||||||||
Costs associated with the return of leased aircraft are accrued when it is probable that a payment will be made and that amount is reasonably estimable. Any accrual is based on the time remaining on the lease, planned aircraft usage and the provisions included in the lease agreement, although the actual amount due to any lessor upon return will not be known with certainty until lease termination. | |||||||||||
Revenue Recognition | ' | ||||||||||
Revenue Recognition | |||||||||||
Passenger revenue is recognized either when the transportation is provided or when tickets expire unused. The value of passenger tickets for future travel is included as air traffic liability. | |||||||||||
Various taxes and fees assessed on the sale of tickets to end customers are collected by the Company as an agent and remitted to taxing authorities. These taxes and fees have been presented on a net basis in the accompanying Consolidated Statements of Operations and recorded as a liability until remitted to the appropriate taxing authority. | |||||||||||
Other operating revenue includes checked baggage revenue, cargo revenue, ticket change and cancellation fees, charter revenue, ground handling fees, commissions and fees earned under certain joint marketing agreements with other companies, inflight revenue and other incidental sales. | |||||||||||
Baggage fees, cargo and charter revenue are recognized when the transportation is provided. Ticket change and cancellation fees are recognized at the time the fees are assessed. All other revenue is recognized as revenue when the related goods and services are provided. | |||||||||||
Frequent Flyer Program | ' | ||||||||||
Frequent Flyer Program | |||||||||||
HawaiianMiles, Hawaiian's frequent flyer travel award program provides a variety of awards to program members based on accumulated mileage. The Company utilizes the incremental cost method of accounting for free travel awards issued from the HawaiianMiles program. The Company records a liability for the estimated incremental cost of providing travel awards that are expected to be redeemed on Hawaiian or the contractual rate of expected redemption on partner airlines. The Company estimates the incremental cost of travel awards based on periodic studies of actual costs and applies these cost estimates to all issued miles, less an appropriate breakage factor for estimated miles that will not be redeemed. Incremental cost includes the costs of fuel, meals and beverages, insurance and certain other passenger traffic-related costs, but does not include any costs for aircraft ownership and maintenance. The breakage factor is estimated based on an analysis of historical expirations. | |||||||||||
The Company also sells mileage credits to companies participating in our frequent flyer program. These sales are accounted for as multiple-element arrangements, with one element representing the travel that will ultimately be provided when the mileage credits are redeemed and the other consisting of marketing related activities that we conduct with the participating company. The estimated fair value of the transportation portion of these mileage credits is deferred and recognized as passenger revenue over the period when transportation is expected to be provided (currently estimated at 22 months). Amounts received in excess of the expected transportation's fair value are recognized immediately as other revenue at the time of sale as compensation for marketing services performed. The estimated fair value of the air transportation component is based on several factors, including the equivalent ticket value of similar Company fares and customer habits in redeeming free travel awards. | |||||||||||
The Company's total frequent flyer liability for future award redemptions is reflected as components of Air traffic liability and Other liabilities and deferred credits within the Consolidated Balance Sheets as follows: | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Air traffic liability | $ | 51,264 | $ | 50,503 | |||||||
Other liabilities and deferred credits | 10,633 | 12,381 | |||||||||
Total frequent flyer liability | $ | 61,897 | $ | 62,884 | |||||||
Under the programs of certain participating companies, credits are accumulated in accounts maintained by the participating company and then transferred into a member's HawaiianMiles account for immediate redemption of free travel awards. For those transactions, revenue is recognized over the period during which the mileage is projected to be used (currently estimated at five months). | |||||||||||
On an annual basis, the Company reviews the deferral period and deferral rate for mileage credits sold to participating companies, as well as the breakage rate assumption for free travel awards earned in connection with the purchase of passenger tickets. The Company's incremental cost assumption is reviewed on a quarterly basis. | |||||||||||
In October 2013, Hawaiian entered into a co-branded credit card agreement, which will provide for the sale of frequent flyer miles to Barclays beginning in 2014. The agreement is a new multiple-element arrangement subject to Accounting Standards Update 2009-13, Multiple Deliverable Revenue Arrangements—A consensus of the FASB Emerging Issues Task Force (ASU 2009-13), which is effective for new and materially modified revenue arrangements entered into by the Company after January 1, 2011. ASU 2009-13 requires the allocation of the overall consideration received to each deliverable using the estimated selling price. The following four deliverables or elements have been identified in the agreement: air transportation; use of the brand and access to frequent flyer member lists; advertising; and other airline benefits. The objective of using estimated selling price based methodology is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. Accordingly, the Company will determine its estimate of selling price based on a consideration of multiple inputs and methods including, but not limited to, discounted cash flows, brand value, published selling prices, number of miles awarded and number of miles redeemed. The Company will estimate the selling prices and volumes over the term of the new agreement in order to determine the allocation of consideration to each of the multiple elements to be delivered. | |||||||||||
The Company is currently evaluating the relative selling price of each deliverable in the agreement. The revenue recognized in connection with the frequent flyer program is and will continue to be allocated between passenger and other operating revenue. However, the allocation of revenue between passenger and other operating revenue may change significantly compared to the way revenue was historically allocated under the prior co-branded credit card agreement. Additionally, the other elements will be generally recognized as other operating revenue when earned. Under the prior co-branded credit card agreement, the fair value of the transportation element was deferred and amounts received in excess of the fair value were recognized immediately as other operating revenue. As of December 31, 2013, the adoption of ASU 2009-13 did not impact the Company's consolidated financial statements since the term of the agreement did not commence until 2014. | |||||||||||
Pension and Postretirement and Postemployment Benefits | ' | ||||||||||
Pension and Postretirement and Postemployment Benefits | |||||||||||
The Company accounts for its defined benefit pension and other postretirement and postemployment plans in accordance with ASC 715, Compensation—Retirement Benefits (ASC 715), which requires companies to measure their plans' assets and obligations to determine the funded status at fiscal year-end, reflect the funded status in the statement of financial position as an asset or liability, and recognize changes in the funded status of the plans in comprehensive income during the year in which the changes occur. ASC 715 does not change the amount of net periodic benefit expense recognized in our results of operations. Pension and other postretirement and postemployment benefit expenses are recognized on an accrual basis over each employee's service periods. Pension expense is generally independent of funding decisions or requirements. | |||||||||||
Commissions and Other Selling Expenses | ' | ||||||||||
Commissions and Other Selling Expenses | |||||||||||
Commissions and other selling expenses include credit card commissions, the costs incurred to provide flights and other awards provided by HawaiianMiles, advertising and promotional expenses and computer reservation system charges, as well as commissions paid to outside agents for the sales of passenger and cargo traffic. Sales commissions are deferred when paid and are subsequently recognized as expense when the related revenue is recognized. Prepaid sales commissions are included in prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets. All other components of commissions and other selling expenses, including advertising costs, are expensed when incurred. Advertising expense was $14.1 million, $11.2 million and $9.2 million for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||
Capitalized Interest | ' | ||||||||||
Capitalized Interest | |||||||||||
Interest is capitalized upon acquisition of aircraft and engines, which include any interest related to predelivery deposits and interest incurred for significant modifications made to the aircraft, and is depreciated over the estimated useful life of the asset from service inception date. | |||||||||||
Earnings (Loss) Per Share | ' | ||||||||||
Earnings (Loss) Per Share | |||||||||||
Basic earnings (loss) per share, which excludes dilution, is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. | |||||||||||
Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except for | |||||||||||
per share data) | |||||||||||
Numerator: | |||||||||||
Net income (loss) | $ | 51,854 | $ | 53,237 | $ | (2,649 | ) | ||||
Denominator: | |||||||||||
Weighted average common shares outstanding—Basic | 52,099 | 51,314 | 50,733 | ||||||||
Assumed exercise of stock options and awards | 884 | 1,221 | — | ||||||||
Assumed exercise of convertible note premium | 172 | — | — | ||||||||
Weighted average common shares outstanding—Diluted | 53,155 | 52,535 | 50,733 | ||||||||
Net income (loss) per common share | |||||||||||
Basic | $ | 1 | $ | 1.04 | $ | (0.05 | ) | ||||
Diluted | $ | 0.98 | $ | 1.01 | $ | (0.05 | ) | ||||
The table below approximates those shares excluded from the computation of diluted earnings per share because the awards would be antidilutive. | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Stock Options | 392 | 89 | 527 | ||||||||
Deferred Stock | 43 | — | 1 | ||||||||
Restricted Stock | 1,345 | 717 | 339 | ||||||||
Warrants | 10,943 | 10,943 | 8,450 | ||||||||
In March 2011, the Company entered into a Convertible Note transaction which included the sale of convertible notes, purchase of convertible note hedges and sale of warrants. The Company's 5% Convertible Notes due in 2016 with a current principal amount of $86.25 million can be redeemed with either cash or the Company's common stock, or a combination thereof, at the Company's option. The 10.9 million shares into which the principal balance of the Convertible Notes could be converted will not impact the dilutive earnings per share calculation in the current and future periods, as the Company has the intent and ability to redeem the principal amount of these notes with cash. However, as the average share price of the Company's common stock during the quarter ended December 31, 2013 exceeded the conversion price of $7.88 per share, the conversion premium of the Convertible Note is included in the Company's computation of diluted earnings per share for the year ended December 31, 2013. | |||||||||||
The convertible note hedges will always be antidilutive and, therefore, will have no effect on diluted earnings per share and are excluded from the table above. | |||||||||||
The weighted common stock equivalents for warrants were excluded from the computation of diluted earnings per share because the strike price of $10.00 exceeded the average market price of the Company's common stock. However, warrants could be dilutive in future periods. | |||||||||||
See Note 7 for further information on the Convertible Note transaction. | |||||||||||
Stock Compensation Plans | ' | ||||||||||
Stock Compensation Plans | |||||||||||
The Company has a stock compensation plan for it and its subsidiaries' officers, consultants and non-employee directors. The Company accounts for stock compensation awards under ASC 718, Compensation—Stock Compensation, which requires companies to measure the cost of employee services received in exchange for an award of equity instruments based on the fair value of such awards on the dates they are granted. The fair value of the awards are estimated using the following: (1) option-pricing models for grants of stock options, (2) Monte Carlo simulations for restricted stock units with a market condition, or (3) fair value at the measurement date (usually the grant date) for awards of stock subject to time and / or performance-based vesting. The resultant cost is recognized as compensation expense over the period of time during which an employee is required to provide services to the Company (the service period) in exchange for the award, the service period generally being the vesting period of the award. | |||||||||||
Financial Derivative Instruments | ' | ||||||||||
Financial Derivative Instruments | |||||||||||
The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global aircraft fuel prices, interest rates and foreign currency exchange rates. | |||||||||||
The following table summarizes the accounting treatment of the Company's derivative contracts: | |||||||||||
Classification of Unrealized | |||||||||||
Gains (Losses) | |||||||||||
Derivative Type | Accounting Designation | Classification of Realized | Effective Portion | Ineffective Portion | |||||||
Gains and Losses | |||||||||||
Interest rate contracts | Designated as cash flow hedges | Interest expense and amortization of debt discounts and issuance costs | AOCI | Nonoperating income (expense) | |||||||
Foreign currency exchange contracts | Designated as cash flow hedges | Passenger revenue | AOCI | Nonoperating income (expense) | |||||||
Fuel hedge contracts | Not designated as hedges | Gains (losses) on fuel derivatives | Change in fair value of hedge is recorded in nonoperating income (expense) | ||||||||
Negative interest arbitrage associated with EETCs | Not designated as hedges | Nonoperating income (expense), Other | Change in fair value of derivative is recorded in nonoperating income (expense) | ||||||||
Foreign currency exchange contracts | Not designated as hedges | Nonoperating income (expense), Other | Change in fair value of derivative is recorded in nonoperating income (expense) | ||||||||
If the Company terminates a derivative prior to its contractual settlement date, then the cumulative gain or loss recognized in AOCI at the termination date remains in AOCI until the forecasted transaction occurs. In a situation where it becomes probable that a hedged forecasted transaction will not occur, any gains and/or losses that have been recorded to AOCI would be required to be immediately reclassified into earnings. All cash flows associated with purchasing and settling derivatives are classified as operating cash flows in the Consolidated Statements of Cash Flows. | |||||||||||
Use of Estimates in the Preparation of Financial Statements | ' | ||||||||||
Use of Estimates in the Preparation of Financial Statements | |||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ significantly from those estimates. | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
Schedule of estimated useful lives and residual values of property and equipment | ' | ||||||||||
Boeing 717-200 aircraft and engines | 7 - 11 years, 7 - 34% residual value | ||||||||||
Boeing 767-300 aircraft and engines | 7 - 20 years, 0 - 10% residual value | ||||||||||
Airbus A330-200 aircraft and engines | 25 years, 10% residual value | ||||||||||
Aircraft under capital leases | 8 - 12 years, no residual value | ||||||||||
Flight simulator under capital lease | 25 years, 10% residual value | ||||||||||
Major rotable parts | Average lease term or useful life for related aircraft, 10% - 15% residual value | ||||||||||
Improvements to leased flight equipment | Shorter of lease term or useful life | ||||||||||
Facility leasehold improvements | Shorter of lease term, including assumed lease renewals when renewal is economically compelled at key airports, or useful life | ||||||||||
Furniture, fixtures and other equipment | 3 - 7 years, no residual value | ||||||||||
Capitalized software | 3 - 7 years, no residual value | ||||||||||
Schedule of Company's total frequent flyer liability for future award redemptions reflected as components of air traffic liability and other liabilities and deferred credits | ' | ||||||||||
As of December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Air traffic liability | $ | 51,264 | $ | 50,503 | |||||||
Other liabilities and deferred credits | 10,633 | 12,381 | |||||||||
Total frequent flyer liability | $ | 61,897 | $ | 62,884 | |||||||
Schedule of earnings (loss) per share basic and diluted | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except for | |||||||||||
per share data) | |||||||||||
Numerator: | |||||||||||
Net income (loss) | $ | 51,854 | $ | 53,237 | $ | (2,649 | ) | ||||
Denominator: | |||||||||||
Weighted average common shares outstanding—Basic | 52,099 | 51,314 | 50,733 | ||||||||
Assumed exercise of stock options and awards | 884 | 1,221 | — | ||||||||
Assumed exercise of convertible note premium | 172 | — | — | ||||||||
Weighted average common shares outstanding—Diluted | 53,155 | 52,535 | 50,733 | ||||||||
Net income (loss) per common share | |||||||||||
Basic | $ | 1 | $ | 1.04 | $ | (0.05 | ) | ||||
Diluted | $ | 0.98 | $ | 1.01 | $ | (0.05 | ) | ||||
Summary of common stock equivalent excluded from the computation of diluted earnings (loss) per share because the awards were antidilutive | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Stock Options | 392 | 89 | 527 | ||||||||
Deferred Stock | 43 | — | 1 | ||||||||
Restricted Stock | 1,345 | 717 | 339 | ||||||||
Warrants | 10,943 | 10,943 | 8,450 | ||||||||
Summary of accounting treatment of derivative contracts | ' | ||||||||||
Classification of Unrealized | |||||||||||
Gains (Losses) | |||||||||||
Derivative Type | Accounting Designation | Classification of Realized | Effective Portion | Ineffective Portion | |||||||
Gains and Losses | |||||||||||
Interest rate contracts | Designated as cash flow hedges | Interest expense and amortization of debt discounts and issuance costs | AOCI | Nonoperating income (expense) | |||||||
Foreign currency exchange contracts | Designated as cash flow hedges | Passenger revenue | AOCI | Nonoperating income (expense) | |||||||
Fuel hedge contracts | Not designated as hedges | Gains (losses) on fuel derivatives | Change in fair value of hedge is recorded in nonoperating income (expense) | ||||||||
Negative interest arbitrage associated with EETCs | Not designated as hedges | Nonoperating income (expense), Other | Change in fair value of derivative is recorded in nonoperating income (expense) | ||||||||
Foreign currency exchange contracts | Not designated as hedges | Nonoperating income (expense), Other | Change in fair value of derivative is recorded in nonoperating income (expense) |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||
Information related to amounts reclassified from AOCI | ' | |||||||||||||
Details about accumulated other comprehensive loss components | Year ended | Affected line items in | ||||||||||||
December 31, 2013 | the statement where net | |||||||||||||
income is presented | ||||||||||||||
(in thousands) | ||||||||||||||
Derivatives designated as hedging instruments under ASC 815 | ||||||||||||||
Foreign currency derivative gains, net | $ | (9,016 | ) | Passenger revenue | ||||||||||
Foreign currency derivative gains, net | (760 | ) | Other nonoperating expense | |||||||||||
Interest rate derivative losses, net | 656 | Interest expense | ||||||||||||
Total before tax | (9,120 | ) | ||||||||||||
Tax expense | 3,447 | |||||||||||||
Total, net of tax | $ | (5,673 | ) | |||||||||||
Amortization of defined benefit pension items | ||||||||||||||
Actuarial loss | $ | 8,660 | Wages and benefits | |||||||||||
Prior service credit | (4 | ) | Wages and benefits | |||||||||||
Total before tax | 8,656 | |||||||||||||
Tax benefit | (3,336 | ) | ||||||||||||
Total, net of tax | $ | 5,320 | ||||||||||||
Total reclassifications for the period | $ | (353 | ) | |||||||||||
Schedule of amounts included in accumulated other comprehensive loss, net of taxes | ' | |||||||||||||
Year ended December 31, 2013 | Interest | Foreign | Defined | Total | ||||||||||
Rate | Currency | Benefit | ||||||||||||
Derivatives | Derivatives | Pension Items | ||||||||||||
(in thousands) | ||||||||||||||
Beginning balance | $ | — | $ | — | $ | (114,054 | ) | $ | (114,054 | ) | ||||
Other comprehensive income before reclassifications, net of tax | 688 | 14,358 | 56,675 | 71,721 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 408 | (6,081 | ) | 5,320 | (353 | ) | ||||||||
Net current-period other comprehensive income, net of tax | 1,096 | 8,277 | 61,995 | 71,368 | ||||||||||
Ending balance | $ | 1,096 | $ | 8,277 | $ | (52,059 | ) | $ | (42,686 | ) | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||||||||
Fair Value Measurements as of | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 269,384 | $ | 269,384 | $ | — | $ | — | ||||||||||||||||||||||||
Restricted cash | 21,000 | 21,000 | — | — | ||||||||||||||||||||||||||||
Fuel derivative contracts: | ||||||||||||||||||||||||||||||||
Brent crude oil call options | 7,121 | — | 7,121 | — | ||||||||||||||||||||||||||||
Brent crude oil put options | 186 | — | 186 | — | ||||||||||||||||||||||||||||
Heating oil put options | 417 | — | 417 | — | ||||||||||||||||||||||||||||
Heating oil swaps | 5,863 | — | 5,863 | — | ||||||||||||||||||||||||||||
Foreign currency derivatives | 12,494 | — | 12,494 | — | ||||||||||||||||||||||||||||
Interest rate derivative | 1,121 | — | 1,121 | — | ||||||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Total assets measured at fair value | $ | 317,586 | $ | 290,384 | $ | 27,202 | $ | — | ||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Fuel derivative contracts: | ||||||||||||||||||||||||||||||||
Brent crude oil call options | $ | 7,121 | $ | — | $ | 7,121 | $ | — | ||||||||||||||||||||||||
Brent crude oil put options | 186 | — | 186 | — | ||||||||||||||||||||||||||||
Heating oil swaps | 187 | — | 187 | — | ||||||||||||||||||||||||||||
Foreign currency derivatives | 1,188 | — | 1,188 | — | ||||||||||||||||||||||||||||
Negative interest arbitrage derivative | 12,865 | — | — | 12,865 | ||||||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Total liabilities measured at fair value | $ | 21,547 | $ | — | $ | 8,682 | $ | 12,865 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Fair Value Measurements as of | ||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 304,159 | $ | 304,159 | $ | — | $ | — | ||||||||||||||||||||||||
Fuel derivative contracts: | ||||||||||||||||||||||||||||||||
Brent crude oil call options | 13,094 | — | 13,094 | — | ||||||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Total assets measured at fair value | $ | 317,253 | $ | 304,159 | $ | 13,094 | $ | — | ||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Fuel derivative contracts: | ||||||||||||||||||||||||||||||||
Brent crude oil put options | $ | 397 | $ | — | $ | 397 | $ | — | ||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Total liabilities measured at fair value | $ | 397 | $ | — | $ | 397 | $ | — | ||||||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||||||||
Schedule of activity for "Level 3" financial liability | ' | |||||||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Beginning balance | $ | — | ||||||||||||||||||||||||||||||
Enhanced equipment trust certificates activity | 12,865 | |||||||||||||||||||||||||||||||
Ending balance | $ | 12,865 | ||||||||||||||||||||||||||||||
Schedule of debt (excluding obligations under capital leases) measured at fair value | ' | |||||||||||||||||||||||||||||||
Fair Value of Debt | ||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
$ | 695,804 | $ | 738,563 | $ | — | $ | 104,656 | $ | 633,907 | $ | 554,568 | $ | 547,943 | $ | — | $ | 81,091 | $ | 466,852 |
Financial_Derivative_Instrumen1
Financial Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Financial Derivative Instruments | ' | |||||||||||||||||||
Schedule of realized and unrealized gains and losses recorded as nonoperating income (expense) | ' | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Losses realized at settlement | $ | (14,018 | ) | $ | (7,372 | ) | $ | (430 | ) | |||||||||||
Reversal of prior period unrealized amounts | 6,013 | 2,367 | (3,920 | ) | ||||||||||||||||
Unrealized gains (losses) on conracts that will settle in future periods | 2,671 | (6,325 | ) | (2,512 | ) | |||||||||||||||
Losses on fuel derivatives recorded as Nonoperating income (expense) | $ | (5,334 | ) | $ | (11,330 | ) | $ | (6,862 | ) | |||||||||||
Schedule of fair value of the asset and liability derivatives and net derivative position recorded | ' | |||||||||||||||||||
Derivative positions as of December 31, 2013 | ||||||||||||||||||||
Balance Sheet | Notional Amount | Final | Gross fair | Gross fair | Net | |||||||||||||||
Location | Maturity | value of | value of | derivative | ||||||||||||||||
Date | assets | (liabilities) | position | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||
Interest rate derivative | Prepaid expenses and other | $63,800 U.S. dollars | Apr-23 | $ | 196 | $ | — | $ | 196 | |||||||||||
Long-term prepayments and other(1) | 925 | — | 925 | |||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 10,500,321 Japanese Yen | Dec-14 | 9,946 | (450 | ) | 9,496 | |||||||||||||
10,895,370 Korean Won | ||||||||||||||||||||
62,659 Australian Dollars | ||||||||||||||||||||
4,821 New Zealand Dollars | ||||||||||||||||||||
Long-term prepayments and other(2) | 1,980,949 Japanese Yen | May-15 | 1,673 | — | 1,673 | |||||||||||||||
16,681 Australian Dollars | ||||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 6,180 Japanese Yen | Dec-14 | 577 | (229 | ) | 348 | |||||||||||||
58 Australian Dollars | ||||||||||||||||||||
Other accrued liabilities | 298 | (509 | ) | (211 | ) | |||||||||||||||
Fuel derivative contracts | Prepaid expenses and other | 84,714 gallons | Dec-14 | 13,587 | (7,494 | ) | 6,093 | |||||||||||||
Negative arbitrage derivative | Other accrued liabilities | $444,540 U.S. dollars | Jan-15 | — | (12,250 | ) | (12,250 | ) | ||||||||||||
Other liabilities and deferred credits(3) | — | (615 | ) | (615 | ) | |||||||||||||||
-1 | ||||||||||||||||||||
Represents the noncurrent portion of the $64 million interest rate derivative with final maturity in April 2023. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
Represents the noncurrent portion of the foreign currency derivatives with final maturities in May 2015. | ||||||||||||||||||||
-3 | ||||||||||||||||||||
Represents the noncurrent portion of the $445 million negative arbitrage derivative with final maturity in January 2015. | ||||||||||||||||||||
Derivative positions as of December 31, 2012 | ||||||||||||||||||||
Balance Sheet | Notional Amount | Final | Gross fair | Gross fair | Net | |||||||||||||||
Location | Maturity | value of | value of | derivative | ||||||||||||||||
Date | assets | (liabilities) | position | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Fuel derivative contracts | Prepaid expenses and other | 126,924 gallons | Jun-14 | $ | 13,094 | $ | (397 | ) | $ | 12,697 | ||||||||||
Schedule of realized and unrealized gains and losses of derivatives designated as cash flow hedges | ' | |||||||||||||||||||
Gain recognized in | (Gain) loss | Gain recognized in | ||||||||||||||||||
AOCI on derivatives | reclassified from | nonoperating | ||||||||||||||||||
(effective portion) | AOCI into income | (income) expense | ||||||||||||||||||
(effective portion) | (ineffective portion) | |||||||||||||||||||
Year ended | Year ended | Year ended | ||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Foreign currency derivatives | $ | (22,781 | ) | $ | — | $ | (9,016 | ) | $ | — | $ | (760 | ) | $ | — | |||||
Interest rate derivatives | (1,593 | ) | — | 656 | — | — | — | |||||||||||||
Schedule of prepaid expenses and other | ' | |||||||||||||||||||
The following tables reconciles the Company's net derivative positions to the financial statement line item within the Consolidated Balance Sheets (in thousands). | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Interest rate derivative | $ | 196 | $ | — | ||||||||||||||||
Foreign currency derivatives | 9,844 | — | ||||||||||||||||||
Fuel derivative contracts | 6,093 | 12,697 | ||||||||||||||||||
Prepaid expenses | 35,067 | 21,984 | ||||||||||||||||||
Other | 452 | 320 | ||||||||||||||||||
Prepaid expenses and other | $ | 51,652 | $ | 35,001 | ||||||||||||||||
Schedule of long-term prepayments and other | ' | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Interest rate derivative | $ | 925 | $ | — | ||||||||||||||||
Foreign currency derivatives | 1,673 | — | ||||||||||||||||||
Deposits | 28,144 | 24,891 | ||||||||||||||||||
Maintenance reserves | 9,650 | 5,735 | ||||||||||||||||||
Debt issuance costs | 35,781 | 14,041 | ||||||||||||||||||
Other | 15,780 | 10,962 | ||||||||||||||||||
Long-term prepayments and other | $ | 91,953 | $ | 55,629 | ||||||||||||||||
Schedule of other accrued liabilities | ' | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency derivatives | $ | 211 | $ | — | ||||||||||||||||
Negative arbitrage derivative | 12,250 | — | ||||||||||||||||||
Accrued payroll and related | 48,088 | 44,747 | ||||||||||||||||||
Accrued taxes | 11,670 | 11,142 | ||||||||||||||||||
Other | 25,352 | 18,939 | ||||||||||||||||||
Other accrued liabilities | $ | 97,571 | $ | 74,828 | ||||||||||||||||
Schedule of liabilities and deferred credits | ' | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Negative arbitrage derivative | $ | 615 | $ | — | ||||||||||||||||
Lease related obligations | 26,303 | 25,560 | ||||||||||||||||||
Deferred revenue | 32,299 | 12,381 | ||||||||||||||||||
Other | 207 | 22 | ||||||||||||||||||
Other liabilities and deferred credits | $ | 59,424 | $ | 37,963 | ||||||||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Intangible Assets | ' | |||||||||||||
Summary of gross carrying values of intangible assets less accumulated amortization | ' | |||||||||||||
As of December 31, 2013 | ||||||||||||||
Gross carrying | Accumulated | Net book value | Approximate | |||||||||||
value | amortization | useful life (years) | ||||||||||||
(in thousands) | ||||||||||||||
Frequent flyer program—marketing relationships | $ | 119,900 | $ | (119,900 | ) | $ | — | 7.5 | ||||||
Favorable aircraft and engine leases | 32,710 | (32,710 | ) | — | 7 | (*) | ||||||||
Favorable aircraft maintenance contracts | 18,200 | (11,069 | ) | 7,131 | 14 | (*) | ||||||||
Frequent flyer program—customer relations | 12,200 | (9,476 | ) | 2,724 | 11 | |||||||||
Hawaiian Airlines trade name | 13,000 | — | 13,000 | Indefinite | ||||||||||
Operating certificates | 3,660 | (2,575 | ) | 1,085 | 12 | |||||||||
Total intangible assets | $ | 199,670 | $ | (175,730 | ) | $ | 23,940 | |||||||
As of December 31, 2012 | ||||||||||||||
Gross carrying | Accumulated | Net book value | ||||||||||||
value | amortization | |||||||||||||
(in thousands) | ||||||||||||||
Frequent flyer program—marketing relationships | $ | 119,900 | $ | (119,900 | ) | $ | — | |||||||
Favorable aircraft and engine leases | 32,710 | (32,710 | ) | — | ||||||||||
Favorable aircraft maintenance contracts | 18,200 | (9,833 | ) | 8,367 | ||||||||||
Frequent flyer program—customer relations | 12,200 | (8,372 | ) | 3,828 | ||||||||||
Hawaiian Airlines trade name | 13,000 | — | 13,000 | |||||||||||
Operating certificates | 3,660 | (2,275 | ) | 1,385 | ||||||||||
Total intangible assets | $ | 199,670 | $ | (173,090 | ) | $ | 26,580 | |||||||
(*) | ||||||||||||||
Weighted average is based on the gross carrying values and estimated useful lives as of June 2, 2005 (the date Hawaiian emerged from bankruptcy). The useful lives ranged from six years for a favorable aircraft maintenance contract to sixteen years for a favorable aircraft lease. | ||||||||||||||
Schedule of estimated future amortization expense of the intangible assets subject to amortization | ' | |||||||||||||
The estimated future amortization expense as of December 31, 2013 of the intangible assets subject to amortization is as follows (in thousands): | ||||||||||||||
2014 | $ | 2,640 | ||||||||||||
2015 | 2,640 | |||||||||||||
2016 | 2,052 | |||||||||||||
2017 | 1,421 | |||||||||||||
2018 | 1,236 | |||||||||||||
Thereafter | 951 | |||||||||||||
$ | 10,940 | |||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt | ' | |||||||
Schedule of Debt and Capital Lease Obligations | ' | |||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Airbus A330-200 Aircraft Facility Agreements, interest rates ranging from 5.31%- 6.46%, quarterly principal and interest payments, payable from 2023 - 2024(1) | $ | 353,723 | $ | 246,443 | ||||
Class A EETC, fixed interest rate of 3.9%, interest-only semiannual payments starting in January 2014, principal and interest payments starting in January 2015 and maturing in January 2026(2) | 56,000 | — | ||||||
Class B EETC, fixed interest rate of 4.95%, interest-only semiannual payments starting in January 2014, principal and interest semiannual payments starting in January 2015 and maturing in January 2022(2) | 20,110 | — | ||||||
Boeing 717-200 Aircraft Facility Agreements, fixed interest rate of 8%, monthly principal and interest payments, the remaining balance of $39.7 million due at maturity on June 2019(1) | 154,422 | 170,701 | ||||||
Five year 5% unsecured convertible notes, with interest only semiannual payments, and $86.25 million due at maturity on March 15, 2016(3) | 86,250 | 86,250 | ||||||
Boeing 767 Aircraft Facility Agreement, variable interest rate of 2.92% at December 31, 2013, quarterly principal and interest payments, maturing in December 2018(1) | 35,000 | — | ||||||
Secured loan, monthly variable interest only payments, with the remaining balance of $52.2 million paid in December 2013 | — | 64,748 | ||||||
Capital lease obligations (see Note 8) | 110,668 | 106,672 | ||||||
Total debt and capital lease obligations | $ | 816,173 | $ | 674,814 | ||||
Less: | ||||||||
Unamortized discount on convertible note | (9,700 | ) | (13,573 | ) | ||||
Current maturities | (62,187 | ) | (108,232 | ) | ||||
Long-Term Debt, less discount, and Capital Lease Obligations | $ | 744,286 | $ | 553,009 | ||||
-1 | ||||||||
The Airbus A330-200 Aircraft Facility Agreements and Boeing 717-200 Aircraft Facility Agreements are secured by aircraft. | ||||||||
-2 | ||||||||
The equipment notes underlying these EETCs are the direct obligations of Hawaiian. | ||||||||
-3 | ||||||||
As of December 31, 2013, the Convertible Note discount is being amortized to interest expense over the remaining term of 2.25 years. | ||||||||
Schedule of maturities of long-term debt | ' | |||||||
As of December 31, 2013, the scheduled maturities of long-term debt are as follows (in thousands): | ||||||||
2014 | $ | 53,356 | ||||||
2015 | 65,075 | |||||||
2016 | 147,732 | |||||||
2017 | 63,717 | |||||||
2018 | 71,269 | |||||||
Thereafter | 304,356 | |||||||
$ | 705,505 | |||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Leases | ' | |||||||||||||
Schedule of future minimum rental payments under capital and operating leases | ' | |||||||||||||
Capital Leases | Operating Leases | |||||||||||||
Aircraft | Other | Aircraft | Other | |||||||||||
(in thousands) | ||||||||||||||
2014 | $ | 13,713 | $ | 1,629 | $ | 97,949 | $ | 4,145 | ||||||
2015 | 13,803 | 1,190 | 97,173 | 3,893 | ||||||||||
2016 | 13,803 | 1,223 | 80,464 | 3,725 | ||||||||||
2017 | 13,803 | 1,179 | 79,942 | 3,088 | ||||||||||
2018 | 13,803 | 1,281 | 79,943 | 3,069 | ||||||||||
Thereafter | 59,544 | 10,691 | 242,545 | 21,901 | ||||||||||
128,469 | 17,193 | $ | 678,016 | $ | 39,821 | |||||||||
Less amounts representing interest | (29,931 | ) | (5,063 | ) | ||||||||||
Present value of minimum capital lease payments | $ | 98,538 | $ | 12,130 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of significant components of income tax expense | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Current | |||||||||||
Federal | $ | — | $ | — | $ | (36,515 | ) | ||||
State | 450 | 1,216 | (5,686 | ) | |||||||
450 | 1,216 | (42,201 | ) | ||||||||
Deferred | |||||||||||
Federal | $ | 30,542 | $ | 27,936 | $ | 37,150 | |||||
State | 3,564 | 3,397 | 6,618 | ||||||||
34,106 | 31,333 | 43,768 | |||||||||
Income tax expense | $ | 34,556 | $ | 32,549 | $ | 1,567 | |||||
Schedule of reconciliation between income tax expense and amounts computed at the statutory federal income tax rate | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Income tax expense (benefit) computed at the statutory federal rate | $ | 30,243 | $ | 30,025 | $ | (368 | ) | ||||
Increase (decrease) resulting from: | |||||||||||
State income taxes, net of federal tax effect | 2,631 | 2,999 | 132 | ||||||||
Nondeductible meals | 971 | 910 | 538 | ||||||||
Change in uncertain tax positions | — | — | (1,983 | ) | |||||||
Effect of change in state apportionment rates and tax rates | — | — | 2,624 | ||||||||
Settlement of prior year tax matters | — | — | 618 | ||||||||
Other | 711 | (1,385 | ) | 6 | |||||||
Income tax expense | $ | 34,556 | $ | 32,549 | $ | 1,567 | |||||
Schedule of the components of deferred tax asset and liabilities | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Accumulated pension and other postretirement benefits | $ | 100,907 | $ | 135,922 | |||||||
Leases | 7,009 | 5,610 | |||||||||
Air traffic liability | 10,390 | 10,745 | |||||||||
Federal and state net operating loss carryforwards | 91,911 | 75,223 | |||||||||
Alternative minimum tax credit carryforwards | 7,447 | 5,909 | |||||||||
Other assets | 24,782 | 25,814 | |||||||||
Total deferred tax assets | $ | 242,446 | $ | 259,223 | |||||||
Deferred tax liabilities: | |||||||||||
Intangible assets | $ | (9,050 | ) | $ | (10,169 | ) | |||||
Plant and equipment, principally accelerated depreciation | (252,902 | ) | (187,222 | ) | |||||||
Other liabilities | (4,119 | ) | (7,781 | ) | |||||||
Total deferred tax liabilities | (266,071 | ) | (205,172 | ) | |||||||
Net deferred tax asset (liability) | $ | (23,625 | ) | $ | 54,051 | ||||||
Schedule of reconciliation of beginning and ending amounts of unrecognized tax benefits related to uncertain tax positions | ' | ||||||||||
Years Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Balance at January 1 | $ | — | $ | — | $ | 1,983 | |||||
Decreases related to prior year tax positions | — | — | (367 | ) | |||||||
Settlements with taxing authority | — | — | (490 | ) | |||||||
Effect of the expiration of statutes of limitation | — | — | (1,126 | ) | |||||||
Balance at December 31 | $ | — | $ | — | $ | — | |||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||||||
Summary of changes to projected benefit obligations, plan assets, funded status and applicable amounts included in the Consolidated Balance Sheets | ' | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Pension | Other | Pension | Other | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Change in benefit obligations | ||||||||||||||||||||
Benefit obligations, beginning of year | $ | (421,884 | ) | $ | (183,944 | ) | $ | (391,287 | ) | $ | (156,197 | ) | ||||||||
Service cost | (2,555 | ) | (13,596 | ) | (2,723 | ) | (11,152 | ) | ||||||||||||
Interest cost | (17,389 | ) | (7,888 | ) | (18,993 | ) | (8,548 | ) | ||||||||||||
Actuarial gains (losses) | 25,213 | 47,296 | (26,450 | ) | (11,196 | ) | ||||||||||||||
Benefits paid | 19,406 | 3,319 | 17,569 | 3,188 | ||||||||||||||||
less: federal subsidy on benefits paid | N/A | (51 | ) | N/A | (39 | ) | ||||||||||||||
Benefit obligation at end of year(a) | $ | (397,209 | ) | $ | (154,864 | ) | $ | (421,884 | ) | $ | (183,944 | ) | ||||||||
Change in plan assets | ||||||||||||||||||||
Fair value of assets, beginning of year | $ | 238,134 | $ | 12,418 | $ | 214,159 | $ | 9,870 | ||||||||||||
Actual return on plan assets | 35,344 | 766 | 24,525 | 899 | ||||||||||||||||
Employer contribution | 15,933 | 5,264 | 17,019 | 4,837 | ||||||||||||||||
Benefits paid | (19,406 | ) | (3,319 | ) | (17,569 | ) | (3,188 | ) | ||||||||||||
Fair value of assets at end of year | $ | 270,005 | $ | 15,129 | $ | 238,134 | $ | 12,418 | ||||||||||||
Unfunded status at December 31, | $ | (127,204 | ) | $ | (139,735 | ) | $ | (183,750 | ) | $ | (171,526 | ) | ||||||||
Amounts recognized in the statement of financial position consist of: | ||||||||||||||||||||
Current benefit liability | $ | (17 | ) | $ | (2,816 | ) | $ | (17 | ) | $ | (2,799 | ) | ||||||||
Noncurrent benefit liability | (127,187 | ) | (136,919 | ) | (183,733 | ) | (168,727 | ) | ||||||||||||
$ | (127,204 | ) | $ | (139,735 | ) | $ | (183,750 | ) | $ | (171,526 | ) | |||||||||
Amounts recognized in other comprehensive loss | ||||||||||||||||||||
Unamortized actuarial loss | $ | 57,265 | $ | 6,435 | $ | 108,719 | $ | 55,991 | ||||||||||||
Prior service credit | (55 | ) | (22 | ) | (57 | ) | (23 | ) | ||||||||||||
$ | 57,210 | $ | 6,413 | $ | 108,662 | $ | 55,968 | |||||||||||||
(a) | ||||||||||||||||||||
The accumulated pension benefit obligation as of December 31, 2013 and 2012 was $391.5 million and $413.4 million, respectively. | ||||||||||||||||||||
Schedule of net periodic benefit cost | ' | |||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Pension | Other | Pension | Other | Pension | Other | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||
Service cost | $ | 2,555 | $ | 13,596 | $ | 2,723 | $ | 11,152 | $ | 2,833 | $ | 6,342 | ||||||||
Interest cost | 17,389 | 7,888 | 18,993 | 8,548 | 19,426 | 6,657 | ||||||||||||||
Expected return on plan assets | (15,348 | ) | (912 | ) | (15,253 | ) | (819 | ) | (18,015 | ) | (774 | ) | ||||||||
Recognized net actuarial loss | 6,246 | 2,414 | 4,653 | 2,717 | 184 | 278 | ||||||||||||||
Prior service credit | (2 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | ||||||||
Net periodic benefit cost | $ | 10,840 | $ | 22,984 | $ | 11,114 | $ | 21,596 | $ | 4,426 | $ | 12,501 | ||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | ||||||||||||||||||||
Current year actuarial (gain) loss | $ | (45,209 | ) | $ | (47,143 | ) | $ | 17,178 | $ | 11,148 | $ | 68,045 | $ | 38,297 | ||||||
Amortization of actuarial loss | (6,246 | ) | (2,414 | ) | (4,653 | ) | (2,717 | ) | (184 | ) | (278 | ) | ||||||||
Amortization of prior service credit | 2 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||
Total recognized in other comprehensive loss | $ | (51,453 | ) | $ | (49,555 | ) | $ | 12,527 | $ | 8,433 | $ | 67,863 | $ | 38,021 | ||||||
Total recognized in net periodic benefit cost and other comprehensive loss | $ | (40,613 | ) | $ | (26,571 | ) | $ | 23,641 | $ | 30,029 | $ | 72,289 | $ | 50,522 | ||||||
Schedule of actuarial assumptions used to determine the net periodic benefit expense and the projected benefit obligation | ' | |||||||||||||||||||
Pension | Postretirement | Disability | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Weighted average assumption used to determine net periodic benefit expense and projected benefit obligations: | ||||||||||||||||||||
Discount rate to determine net periodic benefit expense | 4.1 | % | 4.94 | % | 4.24 | % | 5.14 | % | 4.06 | % | 4.91 | % | ||||||||
Discount rate to determine projected benefit obligation | 5.01 | % | 4.1 | % | 5.21 | % | 4.24 | % | 4.99 | % | 4.06 | % | ||||||||
Expected return on plan assets | 6.55% | ++ | 7.3 | % | N/A | N/A | 6.15% | ++ | 6.9 | % | ||||||||||
Rate of compensation increase | Various | + | Various | + | N/A | N/A | Various | + | Various | + | ||||||||||
Health care trend rate to determine net periodic benefit expense | N/A | N/A | 8 | % | 9 | % | N/A | N/A | ||||||||||||
Health care trend rate in 2019 | N/A | N/A | 4.75 | % | 4.75 | % | N/A | N/A | ||||||||||||
Health care trend rate to determine projected benefit obligation | N/A | N/A | 8 | % | 8 | % | N/A | N/A | ||||||||||||
Health care trend rate in 2018 | N/A | N/A | 4.75 | % | 4.75 | % | N/A | N/A | ||||||||||||
+ | ||||||||||||||||||||
Differs for each pilot based on current fleet and seat position on the aircraft and seniority service. Negotiated salary increases and expected changes in fleet and seat positions on the aircraft are included in the assumed rate of compensation increase which range from 1.5% to 6.0% in 2013 and 1.5% to 7.5% in 2012. | ||||||||||||||||||||
++ | ||||||||||||||||||||
Expected return on plan assets used to determine the net periodic benefit expense for 2014 is 6.92% for Pension and 5.92% for Disability. | ||||||||||||||||||||
Schedule of annual effects of one-percentage point change in the assumed health care cost trend rates | ' | |||||||||||||||||||
1-Percentage | 1-Percentage | |||||||||||||||||||
Point | Point | |||||||||||||||||||
Increase | Decrease | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Effect on postretirement benefit obligation at December 31, 2013 | $ | 24,176 | $ | (19,387 | ) | |||||||||||||||
Effect on total service and interest cost for the year ended December 31, 2013 | 4,872 | (3,671 | ) | |||||||||||||||||
Schedule of estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in next fiscal year | ' | |||||||||||||||||||
Pension | Other | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Actuarial (gain) loss | $ | 1,144 | $ | (239 | ) | |||||||||||||||
Amortization of prior service credit | (2 | ) | (2 | ) | ||||||||||||||||
To be recognized in net periodic benefit cost from accumulated other comprehensive loss | $ | 1,142 | $ | (241 | ) | |||||||||||||||
Schedule of actual allocation of the pension and disability plan assets and the target allocation of assets by category and the expected long-term rate of return by category | ' | |||||||||||||||||||
Asset Allocation | ||||||||||||||||||||
2013 | Target | |||||||||||||||||||
Equity securities | 60 | % | 60 | % | ||||||||||||||||
Fixed income securities | 35 | % | 35 | % | ||||||||||||||||
Real estate investment trusts | 5 | % | 5 | % | ||||||||||||||||
100 | % | 100 | % | |||||||||||||||||
Schedule of fair values of pension plan and other postretirement plan assets by asset category (excluding cash) | ' | |||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
as of December 31, 2013 | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Pension Plan Assets: | ||||||||||||||||||||
Cash equivalents | $ | 164 | $ | 164 | $ | — | $ | — | ||||||||||||
Common stock | 2 | 2 | — | — | ||||||||||||||||
Equity index funds | 160,286 | — | 160,286 | — | ||||||||||||||||
Fixed income funds | 89,086 | — | 89,086 | — | ||||||||||||||||
Real estate investment fund | 12,237 | — | 12,237 | — | ||||||||||||||||
Insurance company pooled separate account | 1,281 | — | 1,281 | — | ||||||||||||||||
Total | $ | 263,056 | $ | 166 | $ | 262,890 | $ | — | ||||||||||||
Postretirement Assets: | ||||||||||||||||||||
Common collective trust fund | $ | 15,063 | $ | — | $ | 15,063 | $ | — | ||||||||||||
Fair Value Measurements | ||||||||||||||||||||
as of December 31, 2012 | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Pension Plan Assets: | ||||||||||||||||||||
Cash equivalents | $ | 1,419 | $ | 1,419 | $ | — | $ | — | ||||||||||||
Equity securities: | ||||||||||||||||||||
Common stock—Domestic | 42,140 | 42,140 | — | — | ||||||||||||||||
Common stock—Foreign | 26,284 | 26,284 | — | — | ||||||||||||||||
Real estate investment trusts—Domestic | 4,222 | — | 4,222 | — | ||||||||||||||||
Real estate investment trusts—Foreign | 3,743 | — | 3,743 | — | ||||||||||||||||
Preferred stock—Domestic | 496 | 496 | — | — | ||||||||||||||||
Preferred stock—Foreign | 322 | 322 | — | — | ||||||||||||||||
Other equities—Domestic | 220 | 220 | — | — | ||||||||||||||||
Equity index funds | 66,388 | — | 66,388 | — | ||||||||||||||||
Fixed income securities: | ||||||||||||||||||||
Government bonds—Domestic | 3,960 | — | 3,960 | — | ||||||||||||||||
Government bonds—Foreign | 18,313 | — | 18,313 | — | ||||||||||||||||
Mortgage-based securities | 2,625 | — | 2,625 | — | ||||||||||||||||
Corporate bonds—Domestic | 7,577 | — | 7,577 | — | ||||||||||||||||
Corporate bonds—Foreign | 3,444 | — | 3,444 | — | ||||||||||||||||
State and local bonds | 150 | — | 150 | — | ||||||||||||||||
Fixed income fund | 43,952 | — | 43,952 | — | ||||||||||||||||
Common collective trust fund | 2,902 | — | 2,902 | — | ||||||||||||||||
Forward contracts | (6 | ) | — | (6 | ) | — | ||||||||||||||
Insurance company pooled separate account | 4,478 | 4,478 | — | |||||||||||||||||
Total | $ | 232,629 | $ | 70,881 | $ | 161,748 | $ | — | ||||||||||||
Postretirement Assets: | ||||||||||||||||||||
Common collective trust fund | $ | 12,356 | $ | — | $ | 12,356 | $ | — | ||||||||||||
Schedule of projected benefits payments reflecting expected future service | ' | |||||||||||||||||||
Other Benefits | ||||||||||||||||||||
Pension | Gross | Expected | ||||||||||||||||||
Benefits | Federal Subsidy | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
2014 | $ | 20,353 | $ | 3,798 | $ | (59 | ) | |||||||||||||
2015 | 21,593 | 4,322 | (68 | ) | ||||||||||||||||
2016 | 22,790 | 4,987 | (76 | ) | ||||||||||||||||
2017 | 24,156 | 5,577 | (89 | ) | ||||||||||||||||
2018 | 25,536 | 6,260 | (101 | ) | ||||||||||||||||
2019 - 2022 | 138,268 | 43,071 | (712 | ) | ||||||||||||||||
$ | 252,696 | $ | 68,015 | $ | (1,105 | ) | ||||||||||||||
Capital_Stock_and_Sharebased_C1
Capital Stock and Share-based Compensation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Performance and Market-Based Stock Awards | ' | |||||||
Share Based Compensation | ' | |||||||
Schedule of Stock-Based Activities | ' | |||||||
Number of units | Weighted | |||||||
average | ||||||||
grant date | ||||||||
fair value | ||||||||
Non-vested at December 31, 2012 | 1,069,889 | $ | 6.09 | |||||
Granted during the period | 501,542 | 5.74 | ||||||
Vested during the period | (198,112 | ) | 6.96 | |||||
Forfeited during the period | (230,727 | ) | 5.59 | |||||
Non-vested at December 31, 2013 | 1,142,592 | $ | 5.88 | |||||
Time-Based Stock Awards | ' | |||||||
Share Based Compensation | ' | |||||||
Schedule of Stock-Based Activities | ' | |||||||
Number of units | Weighted | |||||||
average | ||||||||
grant date | ||||||||
fair value | ||||||||
Non-vested at December 31, 2012 | 548,282 | $ | 6.19 | |||||
Granted during the period | 378,845 | 5.7 | ||||||
Vested during the period | (323,094 | ) | 6.2 | |||||
Forfeited during the period | (43,135 | ) | 6.03 | |||||
Non-vested at December 31, 2013 | 560,898 | $ | 5.86 | |||||
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Commitments and Contingent Liabilities | ' | ||||||||||||||||
Schedule of firm aircraft and engine orders | ' | ||||||||||||||||
Aircraft Type | Firm | Purchase | Expected Delivery Dates | ||||||||||||||
Orders | Rights | ||||||||||||||||
A330-200 aircraft | 8 | 3 | Between 2014 and 2015 | ||||||||||||||
A350XWB-800 aircraft | 6 | 6 | Between 2017 and 2020 | ||||||||||||||
A321neo aircraft | 16 | 9 | Between 2017 and 2020 | ||||||||||||||
Rolls-Royce spare engines: | |||||||||||||||||
A330-200 spare engines | 2 | — | In 2014 | ||||||||||||||
A350XWB-800 spare engines | 2 | — | Between 2017 and 2020 | ||||||||||||||
Pratt & Whitney spare engines: | |||||||||||||||||
A321neo spare engines | 2 | — | Between 2017 and 2018 | ||||||||||||||
Schedule of committed capital and operating expenditures | ' | ||||||||||||||||
Capital | Operating | Total Commited | Less: Committed | Net Committed | |||||||||||||
Expenditures | Financing for Upcoming | Expenditures | |||||||||||||||
Aircraft Deliveries* | |||||||||||||||||
(in thousands) | |||||||||||||||||
2014 | $ | 421,472 | $ | 57,017 | $ | 478,489 | $ | 368,430 | $ | 110,059 | |||||||
2015 | 245,589 | 55,271 | 300,860 | — | 300,860 | ||||||||||||
2016 | 147,824 | 43,643 | 191,467 | — | 191,467 | ||||||||||||
2017 | 493,824 | 42,383 | 536,207 | — | 536,207 | ||||||||||||
2018 | 212,114 | 37,352 | 249,466 | — | 249,466 | ||||||||||||
Thereafter | 893,582 | 255,650 | 1,149,232 | — | 1,149,232 | ||||||||||||
$ | 2,414,405 | $ | 491,316 | $ | 2,905,721 | $ | 368,430 | $ | 2,537,291 | ||||||||
* | |||||||||||||||||
See below for a detailed discussion of the committed financings Hawaiian has received for its upcoming capital commitments for aircraft deliveries. | |||||||||||||||||
Geographic_Information_Tables
Geographic Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Geographic Information | ' | ||||||||||
Operating Revenue by Geographic Region | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Domestic | $ | 1,493,295 | $ | 1,378,498 | $ | 1,272,196 | |||||
Pacific | 662,570 | 583,855 | 378,263 | ||||||||
Total operating revenue | $ | 2,155,865 | $ | 1,962,353 | $ | 1,650,459 | |||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplemental Cash Flow Information | ' | ||||||||||
Schedule of non-cash investing and financing activities | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Cash payments for interest (net of amounts capitalized) | $ | 36,574 | $ | 35,153 | $ | 15,600 | |||||
Cash payments (refunds) for income taxes | 2 | (16,913 | ) | (21,281 | ) | ||||||
Investing and Financing Activities Not Affecting Cash: | |||||||||||
Property and equipment acquired through a capital lease | 11,840 | 111,921 | — |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Condensed Consolidating Financial Information | ' | ||||||||||||||||
Schedule of Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ' | ||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
Operating Revenue | $ | — | $ | 2,155,554 | $ | 647 | $ | (336 | ) | $ | 2,155,865 | ||||||
Operating Expenses: | |||||||||||||||||
Aircraft fuel, including taxes and delivery | — | 698,802 | — | — | 698,802 | ||||||||||||
Wages and benefits | — | 427,438 | — | — | 427,438 | ||||||||||||
Aircraft rent | — | 108,534 | — | — | 108,534 | ||||||||||||
Maintenance materials and repairs | — | 203,387 | — | — | 203,387 | ||||||||||||
Aircraft and passenger servicing | — | 120,635 | — | — | 120,635 | ||||||||||||
Commissions and other selling | — | 125,962 | — | (62 | ) | 125,900 | |||||||||||
Depreciation and amortization | — | 83,050 | — | — | 83,050 | ||||||||||||
Other rentals and landing fees | — | 81,317 | — | — | 81,317 | ||||||||||||
Other | 7,772 | 165,101 | 456 | (274 | ) | 173,055 | |||||||||||
Total | 7,772 | 2,014,226 | 456 | (336 | ) | 2,022,118 | |||||||||||
Operating Income (Loss) | (7,772 | ) | 141,328 | 191 | — | 133,747 | |||||||||||
Nonoperating Income (Expense): | |||||||||||||||||
Undistributed net income of subsidiaries | 62,549 | — | — | (62,549 | ) | — | |||||||||||
Interest expense and amortization of debt discounts and issuance costs | (8,710 | ) | (41,743 | ) | — | — | (50,453 | ) | |||||||||
Interest income | 132 | 507 | — | — | 639 | ||||||||||||
Capitalized interest | — | 12,625 | — | — | 12,625 | ||||||||||||
Losses on fuel derivatives | — | (5,334 | ) | — | — | (5,334 | ) | ||||||||||
Other, net | — | (4,814 | ) | — | — | (4,814 | ) | ||||||||||
Total | 53,971 | (38,759 | ) | — | (62,549 | ) | (47,337 | ) | |||||||||
Income Before Income Taxes | 46,199 | 102,569 | 191 | (62,549 | ) | 86,410 | |||||||||||
Income tax expense (benefit) | (5,655 | ) | 40,211 | — | — | 34,556 | |||||||||||
Net Income | $ | 51,854 | $ | 62,358 | $ | 191 | $ | (62,549 | ) | $ | 51,854 | ||||||
Comprehensive Income | $ | 123,222 | $ | 133,726 | $ | 191 | $ | (133,917 | ) | $ | 123,222 | ||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
Operating Revenue | $ | — | $ | 1,962,571 | $ | 41 | $ | (259 | ) | $ | 1,962,353 | ||||||
Operating Expenses: | |||||||||||||||||
Aircraft fuel, including taxes and oil | — | 631,741 | — | — | 631,741 | ||||||||||||
Wages and benefits | — | 376,574 | — | — | 376,574 | ||||||||||||
Aircraft rent | — | 98,786 | — | — | 98,786 | ||||||||||||
Maintenance materials and repairs | — | 183,552 | — | — | 183,552 | ||||||||||||
Aircraft and passenger servicing | — | 103,825 | — | — | 103,825 | ||||||||||||
Commissions and other selling | — | 114,366 | — | (42 | ) | 114,324 | |||||||||||
Depreciation and amortization | — | 85,599 | — | — | 85,599 | ||||||||||||
Other rentals and landing fees | — | 85,623 | — | — | 85,623 | ||||||||||||
Other | 4,712 | 148,300 | 136 | (217 | ) | 152,931 | |||||||||||
Total | 4,712 | 1,828,366 | 136 | (259 | ) | 1,832,955 | |||||||||||
Operating Income (Loss) | (4,712 | ) | 134,205 | (95 | ) | — | 129,398 | ||||||||||
Nonoperating Income (Expense): | |||||||||||||||||
Undistributed net income of subsidiaries | 61,388 | — | — | (61,388 | ) | — | |||||||||||
Interest expense and amortization of debt discounts and issuance costs | (8,330 | ) | (35,192 | ) | — | — | (43,522 | ) | |||||||||
Interest income | 114 | 466 | — | — | 580 | ||||||||||||
Capitalized interest | — | 10,524 | — | — | 10,524 | ||||||||||||
Losses on fuel derivatives | — | (11,330 | ) | — | — | (11,330 | ) | ||||||||||
Other, net | — | 136 | — | — | 136 | ||||||||||||
Total | 53,172 | (35,396 | ) | — | (61,388 | ) | (43,612 | ) | |||||||||
Income (Loss) Before Income Taxes | 48,460 | 98,809 | (95 | ) | (61,388 | ) | 85,786 | ||||||||||
Income tax expense (benefit) | (4,777 | ) | 37,326 | — | — | 32,549 | |||||||||||
Net Income (Loss) | $ | 53,237 | $ | 61,483 | $ | (95 | ) | $ | (61,388 | ) | $ | 53,237 | |||||
Comprehensive Income (Loss) | $ | 53,237 | $ | 49,769 | $ | (95 | ) | $ | (61,388 | ) | $ | 41,523 | |||||
Condensed Consolidating Statements of Operations and Comprehensive Loss | |||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
Operating Revenue | $ | — | $ | 1,650,616 | $ | 17 | $ | (174 | ) | $ | 1,650,459 | ||||||
Operating Expenses: | |||||||||||||||||
Aircraft fuel, including taxes and oil | — | 513,284 | — | — | 513,284 | ||||||||||||
Wages and benefits | — | 321,241 | — | — | 321,241 | ||||||||||||
Aircraft rent | — | 112,883 | — | — | 112,883 | ||||||||||||
Maintenance materials and repairs | — | 169,851 | — | — | 169,851 | ||||||||||||
Aircraft and passenger servicing | — | 82,250 | — | — | 82,250 | ||||||||||||
Commissions and other selling | — | 96,290 | — | (26 | ) | 96,264 | |||||||||||
Depreciation and amortization | — | 66,262 | — | — | 66,262 | ||||||||||||
Other rentals and landing fees | — | 72,445 | — | — | 72,445 | ||||||||||||
Other | 4,467 | 121,278 | 85 | (148 | ) | 125,682 | |||||||||||
Lease termination charges | — | 70,014 | — | — | 70,014 | ||||||||||||
Total | 4,467 | 1,625,798 | 85 | (174 | ) | 1,630,176 | |||||||||||
Operating Income (Loss) | (4,467 | ) | 24,818 | (68 | ) | — | 20,283 | ||||||||||
Nonoperating Income (Expense): | |||||||||||||||||
Undistributed net income of subsidiaries | 2,654 | — | — | (2,654 | ) | — | |||||||||||
Interest expense and amortization of debt discounts and issuance costs | (6,209 | ) | (18,312 | ) | — | — | (24,521 | ) | |||||||||
Interest income | 128 | 1,386 | — | — | 1,514 | ||||||||||||
Capitalized interest | — | 7,771 | — | — | 7,771 | ||||||||||||
Losses on fuel derivatives | — | (6,862 | ) | — | — | (6,862 | ) | ||||||||||
Other, net | — | 733 | — | — | 733 | ||||||||||||
Total | (3,427 | ) | (15,284 | ) | — | (2,654 | ) | (21,365 | ) | ||||||||
Income (Loss) Before Income Taxes | (7,894 | ) | 9,534 | (68 | ) | (2,654 | ) | (1,082 | ) | ||||||||
Income tax expense (benefit) | (5,245 | ) | 6,812 | — | — | 1,567 | |||||||||||
Net Income (Loss) | $ | (2,649 | ) | $ | 2,722 | $ | (68 | ) | $ | (2,654 | ) | $ | (2,649 | ) | |||
Comprehensive Loss | $ | (2,649 | ) | $ | (64,339 | ) | $ | (68 | ) | $ | (2,654 | ) | $ | (69,710 | ) | ||
Schedule of Condensed Consolidating Balance Sheets | ' | ||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 84,797 | $ | 333,663 | $ | 4,924 | $ | — | $ | 423,384 | |||||||
Restricted cash | — | 19,434 | — | — | 19,434 | ||||||||||||
Accounts receivable, net | 1,192 | 73,241 | 31 | (219 | ) | 74,245 | |||||||||||
Spare parts and supplies, net | — | 19,767 | — | — | 19,767 | ||||||||||||
Deferred tax assets, net | — | 17,325 | — | — | 17,325 | ||||||||||||
Prepaid expenses and other | — | 51,613 | 39 | — | 51,652 | ||||||||||||
Total | 85,989 | 515,043 | 4,994 | (219 | ) | 605,807 | |||||||||||
Property and equipment at cost | — | 1,629,517 | 31,917 | — | 1,661,434 | ||||||||||||
Less accumulated depreciation and amortization | — | (327,102 | ) | — | — | (327,102 | ) | ||||||||||
Property and equipment, net | — | 1,302,415 | 31,917 | — | 1,334,332 | ||||||||||||
Long-term prepayments and other | 1,171 | 90,782 | — | — | 91,953 | ||||||||||||
Restricted cash | — | 1,566 | — | — | 1,566 | ||||||||||||
Deferred tax assets, net | 14,767 | — | — | (14,767 | ) | — | |||||||||||
Goodwill and other intangible assets, net | — | 130,603 | — | — | 130,603 | ||||||||||||
Intercompany receivable | 25,286 | — | — | (25,286 | ) | — | |||||||||||
Investment in consolidated subsidiaries | 348,040 | — | — | (348,040 | ) | — | |||||||||||
TOTAL ASSETS | $ | 475,253 | $ | 2,040,409 | $ | 36,911 | $ | (388,312 | ) | $ | 2,164,261 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 532 | $ | 88,990 | $ | 484 | $ | (219 | ) | $ | 89,787 | ||||||
Air traffic liability | — | 407,359 | 1,727 | — | 409,086 | ||||||||||||
Other accrued liabilities | 1,307 | 96,264 | — | — | 97,571 | ||||||||||||
Current maturities of long-term debt and capital lease obligations | — | 62,187 | — | — | 62,187 | ||||||||||||
Total | 1,839 | 654,800 | 2,211 | (219 | ) | 658,631 | |||||||||||
Long-term debt, less discount, and capital lease obligations | 76,550 | 667,736 | — | — | 744,286 | ||||||||||||
Intercompany payable | — | 25,286 | — | (25,286 | ) | — | |||||||||||
Other liabilities and deferred credits: | |||||||||||||||||
Accumulated pension and other postretirement benefit obligations. | — | 264,106 | — | — | 264,106 | ||||||||||||
Other liabilities and deferred credits | — | 59,424 | — | — | 59,424 | ||||||||||||
Deferred tax liabilities, net | — | 55,717 | — | (14,767 | ) | 40,950 | |||||||||||
Total | — | 379,247 | — | (14,767 | ) | 364,480 | |||||||||||
Shareholders' equity | 396,864 | 313,340 | 34,700 | (348,040 | ) | 396,864 | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 475,253 | $ | 2,040,409 | $ | 36,911 | $ | (388,312 | ) | $ | 2,164,261 | ||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 83,626 | $ | 303,967 | $ | 18,287 | $ | — | $ | 405,880 | |||||||
Restricted cash | — | 5,000 | — | — | 5,000 | ||||||||||||
Accounts receivable, net | 2,032 | 78,949 | 13 | (244 | ) | 80,750 | |||||||||||
Spare parts and supplies, net | — | 27,552 | — | — | 27,552 | ||||||||||||
Deferred tax assets, net | 704 | 16,971 | — | — | 17,675 | ||||||||||||
Prepaid expenses and other | — | 35,001 | — | — | 35,001 | ||||||||||||
Total | 86,362 | 467,440 | 18,300 | (244 | ) | 571,858 | |||||||||||
Property and equipment at cost | — | 1,299,757 | 18,456 | — | 1,318,213 | ||||||||||||
Less accumulated depreciation and amortization | — | (249,495 | ) | — | — | (249,495 | ) | ||||||||||
Property and equipment, net | — | 1,050,262 | 18,456 | — | 1,068,718 | ||||||||||||
Long-term prepayments and other | 1,695 | 53,934 | — | — | 55,629 | ||||||||||||
Deferred tax assets, net | 8,439 | 27,937 | — | — | 36,376 | ||||||||||||
Goodwill and other intangible assets, net | — | 133,243 | — | — | 133,243 | ||||||||||||
Intercompany receivable | 33,110 | — | — | (33,110 | ) | — | |||||||||||
Investment in consolidated subsidiaries | 213,275 | — | — | (213,275 | ) | — | |||||||||||
TOTAL ASSETS | $ | 342,881 | $ | 1,732,816 | $ | 36,756 | $ | (246,629 | ) | $ | 1,865,824 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 292 | $ | 81,758 | $ | 278 | $ | (244 | ) | $ | 82,084 | ||||||
Air traffic liability | — | 386,677 | 1,969 | — | 388,646 | ||||||||||||
Other accrued liabilities | 1,310 | 73,518 | — | — | 74,828 | ||||||||||||
Current maturities of long-term debt and capital lease obligations | — | 108,232 | — | — | 108,232 | ||||||||||||
Total | 1,602 | 650,185 | 2,247 | (244 | ) | 653,790 | |||||||||||
Long-term debt, less discount, and capital lease obligations | 72,677 | 480,332 | — | — | 553,009 | ||||||||||||
Intercompany payable | — | 33,110 | — | (33,110 | ) | — | |||||||||||
Other liabilities and deferred credits: | |||||||||||||||||
Accumulated pension and other postretirement benefit obligations | — | 352,460 | — | — | 352,460 | ||||||||||||
Other liabilities and deferred credits | — | 37,963 | — | — | 37,963 | ||||||||||||
Total | — | 390,423 | — | — | 390,423 | ||||||||||||
Shareholders' equity | 268,602 | 178,766 | 34,509 | (213,275 | ) | 268,602 | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 342,881 | $ | 1,732,816 | $ | 36,756 | $ | (246,629 | ) | $ | 1,865,824 | ||||||
Schedule of Condensed Consolidating Statements of Cash Flows | ' | ||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
Net Cash Provided By (Used In) Operating Activities: | $ | (8,088 | ) | $ | 251,260 | $ | 98 | $ | — | $ | 243,270 | ||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Net payments from subsidiaries | 6,883 | — | — | (6,883 | ) | — | |||||||||||
Additions to property and equipment, including pre-delivery deposits | — | (328,767 | ) | (13,461 | ) | — | (342,228 | ) | |||||||||
Proceeds from disposition of property and equipment | — | 14,414 | — | — | 14,414 | ||||||||||||
Net cash provided by (used in) investing activities | 6,883 | (314,353 | ) | (13,461 | ) | (6,883 | ) | (327,814 | ) | ||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Proceeds from exercise of stock options | 2,376 | — | — | — | 2,376 | ||||||||||||
Long-term borrowings | — | 243,110 | — | — | 243,110 | ||||||||||||
Repayments of long-term debt and capital lease obligations | — | (113,592 | ) | — | — | (113,592 | ) | ||||||||||
Debt issuance costs | — | (13,846 | ) | — | — | (13,846 | ) | ||||||||||
Net payments to parent company | — | (6,883 | ) | — | 6,883 | — | |||||||||||
Change in cash collateral for EETC financing | — | (16,000 | ) | — | — | (16,000 | ) | ||||||||||
Net cash provided by financing activities | 2,376 | 92,789 | — | 6,883 | 102,048 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 1,171 | 29,696 | (13,363 | ) | — | 17,504 | |||||||||||
Cash and cash equivalents—Beginning of Period | 83,626 | 303,967 | 18,287 | — | 405,880 | ||||||||||||
Cash and cash equivalents—End of Period | $ | 84,797 | $ | 333,663 | $ | 4,924 | $ | — | $ | 423,384 | |||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
(in thousands) | |||||||||||||||||
Net Cash Provided By Operating Activities: | $ | 10,669 | $ | 299,845 | $ | 503 | $ | — | $ | 311,017 | |||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Net payments to subsidiaries | (25,750 | ) | — | — | 25,750 | — | |||||||||||
Additions to property and equipment, including pre-delivery deposits | — | (272,243 | ) | (18,456 | ) | — | (290,699 | ) | |||||||||
Net cash used in investing activities | (25,750 | ) | (272,243 | ) | (18,456 | ) | 25,750 | (290,699 | ) | ||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Proceeds from exercise of stock options | 1,488 | — | — | — | 1,488 | ||||||||||||
Long-term borrowings | — | 133,000 | — | — | 133,000 | ||||||||||||
Repayments of long-term debt and capital lease obligations | — | (49,129 | ) | — | — | (49,129 | ) | ||||||||||
Debt issuance costs | — | (3,828 | ) | — | — | (3,828 | ) | ||||||||||
Net payments from (to) parent company | — | (9,250 | ) | 35,000 | (25,750 | ) | — | ||||||||||
Other | — | (84 | ) | — | — | (84 | ) | ||||||||||
Net cash provided by financing activities | 1,488 | 70,709 | 35,000 | (25,750 | ) | 81,447 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (13,593 | ) | 98,311 | 17,047 | — | 101,765 | |||||||||||
Cash and cash equivalents—Beginning of Period | 97,219 | 205,656 | 1,240 | — | 304,115 | ||||||||||||
Cash and cash equivalents—End of Period | $ | 83,626 | $ | 303,967 | $ | 18,287 | $ | — | $ | 405,880 | |||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||
Guarantor | |||||||||||||||||
Net Cash Provided By (Used In) Operating Activities: | $ | (7,954 | ) | $ | 186,465 | $ | 253 | $ | — | $ | 178,764 | ||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Net payments from subsidiaries | 9,676 | — | — | (9,676 | ) | — | |||||||||||
Additions to property and equipment, including pre-delivery deposits | — | (281,903 | ) | — | — | (281,903 | ) | ||||||||||
Net cash provided by (used in) investing activities | 9,676 | (281,903 | ) | — | (9,676 | ) | (281,903 | ) | |||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Proceeds from exercise of stock options | 226 | — | — | — | 226 | ||||||||||||
Convertible Notes: | |||||||||||||||||
Issuance of convertible notes | 86,250 | — | — | — | 86,250 | ||||||||||||
Purchase of call options | (19,504 | ) | — | — | — | (19,504 | ) | ||||||||||
Proceeds from issuance of warrants | 11,948 | — | — | — | 11,948 | ||||||||||||
Long-term borrowings | — | 132,000 | — | — | 132,000 | ||||||||||||
Repayments of long-term debt and capital lease obligations | — | (80,023 | ) | — | — | (80,023 | ) | ||||||||||
Debt issuance costs | (3,390 | ) | (5,336 | ) | — | — | (8,726 | ) | |||||||||
Net payments to parent company | — | (9,676 | ) | — | 9,676 | — | |||||||||||
Other | — | 46 | — | — | 46 | ||||||||||||
Short-term borrowings | |||||||||||||||||
Net cash provided by financing activities | 75,530 | 37,011 | — | 9,676 | 122,217 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 77,252 | (58,427 | ) | 253 | — | 19,078 | |||||||||||
Cash and cash equivalents—Beginning of Year | 19,967 | 264,083 | 987 | — | 285,037 | ||||||||||||
Cash and cash equivalents—End of Year | $ | 97,219 | $ | 205,656 | $ | 1,240 | $ | — | $ | 304,115 | |||||||
Supplemental_Financial_Informa1
Supplemental Financial Information (unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Supplemental Financial Information (unaudited) | ' | |||||||||||||
Schedule of Selected Quarterly Financial Data | ' | |||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
(in thousands, except per share data) | ||||||||||||||
2013:00:00 | ||||||||||||||
Operating revenue | $ | 490,754 | $ | 533,928 | $ | 599,298 | $ | 531,885 | ||||||
Operating income (loss) | (11,926 | ) | 37,391 | 74,434 | 33,848 | |||||||||
Nonoperating loss | (15,453 | ) | (19,176 | ) | (7,016 | ) | (5,692 | ) | ||||||
Net income (loss) | (17,145 | ) | 11,316 | 40,604 | 17,079 | |||||||||
Net income (loss) per common stock share: | ||||||||||||||
Basic | (0.33 | ) | 0.22 | 0.78 | 0.33 | |||||||||
Diluted | (0.33 | ) | 0.21 | 0.76 | 0.31 | |||||||||
2012:00:00 | ||||||||||||||
Operating revenue | $ | 435,494 | $ | 484,551 | $ | 549,322 | $ | 492,986 | ||||||
Operating income | 12,900 | 29,328 | 74,933 | 12,237 | ||||||||||
Nonoperating loss | (1,041 | ) | (23,019 | ) | (1,130 | ) | (18,422 | ) | ||||||
Net income (loss) | 7,258 | 3,904 | 45,483 | (3,408 | ) | |||||||||
Net income (loss) per common stock share: | ||||||||||||||
Basic | 0.14 | 0.08 | 0.88 | (0.07 | ) | |||||||||
Diluted | 0.14 | 0.07 | 0.86 | (0.07 | ) |
Business_and_Organization_Deta
Business and Organization (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
item | Hawaiian | Hawaiian | Hawaiian | Hawaiian | Hawaiian | |
item | Boeing 717-200 | Boeing 767-300 | Airbus A330-200 | ATR42 aircraft | ||
item | item | item | item | |||
Business and Organization | ' | ' | ' | ' | ' | ' |
Ranking among domestic airlines in the United States based on revenue passenger miles | ' | 11 | ' | ' | ' | ' |
Number of aircrafts | 47 | ' | 18 | 12 | 14 | 3 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
Property, Equipment and Depreciation | ' | ' | ' |
Property and equipment, Net | $1,334,332,000 | $1,068,718,000 | ' |
Aircraft Maintenance and Repair Costs | ' | ' | ' |
Additional cost of repairing engines | 0 | ' | ' |
Number of groups in which maintenance deposits bifurcated | 2 | ' | ' |
Frequent Flyer Program | ' | ' | ' |
Estimated transportation period relating to Mileage Credits | '22 months | ' | ' |
Air traffic liability | 51,264,000 | 50,503,000 | ' |
Other liabilities and deferred credits | 10,633,000 | 12,381,000 | ' |
Total frequent flyer liability | 61,897,000 | 62,884,000 | ' |
Estimated transportation period relating to Mileage Credits accumulated | '5 months | ' | ' |
Commissions and Other Selling Expenses | ' | ' | ' |
Advertising expense | 14,100,000 | 11,200,000 | 9,200,000 |
Boeing 717-200 aircraft and engines | Minimum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '7 years | ' | ' |
Residual value (as a percent) | 7.00% | ' | ' |
Boeing 717-200 aircraft and engines | Maximum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '11 years | ' | ' |
Residual value (as a percent) | 34.00% | ' | ' |
Boeing 767-300 aircraft and engines | Minimum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '7 years | ' | ' |
Residual value (as a percent) | 0.00% | ' | ' |
Boeing 767-300 aircraft and engines | Maximum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '20 years | ' | ' |
Residual value (as a percent) | 10.00% | ' | ' |
Airbus A330-200 aircraft and engines | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '25 years | ' | ' |
Residual value (as a percent) | 10.00% | ' | ' |
Aircraft under capital leases | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Residual value (as a percent) | 0.00% | ' | ' |
Aircraft under capital leases | Minimum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '8 years | ' | ' |
Aircraft under capital leases | Maximum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '12 years | ' | ' |
Flight simulator under capital lease | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '25 years | ' | ' |
Residual value (as a percent) | 10.00% | ' | ' |
Major rotable parts | Minimum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Residual value (as a percent) | 10.00% | ' | ' |
Major rotable parts | Maximum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Residual value (as a percent) | 15.00% | ' | ' |
Furniture, fixtures and other equipment | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Residual value (as a percent) | 0.00% | ' | ' |
Furniture, fixtures and other equipment | Minimum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '3 years | ' | ' |
Furniture, fixtures and other equipment | Maximum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '7 years | ' | ' |
Capitalized software | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Residual value (as a percent) | 0.00% | ' | ' |
Property and equipment, Net | 10,800,000 | 15,400,000 | ' |
Amortization expense | $7,000,000 | $7,700,000 | $5,900,000 |
Capitalized software | Minimum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '3 years | ' | ' |
Capitalized software | Maximum | ' | ' | ' |
Property, Equipment and Depreciation | ' | ' | ' |
Estimated useful lives | '7 years | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $17,079 | $40,604 | $11,316 | ($17,145) | ($3,408) | $45,483 | $3,904 | $7,258 | $51,854 | $53,237 | ($2,649) |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common stock shares outstanding - Basic | ' | ' | ' | ' | ' | ' | ' | ' | 52,099 | 51,314 | 50,733 |
Assumed exercise of stock options and awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 884 | 1,221 | ' |
Assumed exercise of convertible note premium (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 172 | ' | ' |
Weighted average common stock shares outstanding - Diluted | ' | ' | ' | ' | ' | ' | ' | ' | 53,155 | 52,535 | 50,733 |
Net income (loss) per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.33 | $0.78 | $0.22 | ($0.33) | ($0.07) | $0.88 | $0.08 | $0.14 | $1 | $1.04 | ($0.05) |
Diluted (in dollars per share) | $0.31 | $0.76 | $0.21 | ($0.33) | ($0.07) | $0.86 | $0.07 | $0.14 | $0.98 | $1.01 | ($0.05) |
Stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 392 | 89 | 527 |
Deferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 43 | ' | 1 |
Restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 1,345 | 717 | 339 |
Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 10,943 | 10,943 | 8,450 |
Exercise price (in dollars per share) | $10 | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (Convertible notes, USD $) | 0 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 23, 2011 | Dec. 31, 2013 |
Convertible notes | ' | ' |
Convertible Note transaction | ' | ' |
Stated interest rate (as a percent) | 5.00% | 5.00% |
Principal amount | $86.25 | ' |
Number of shares that the holder of the debt instrument would receive upon conversion | 10.9 | ' |
Conversion price (in dollars per share) | $7.88 | $7.88 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency derivatives gains, net | ' | ' | ' | ' | ' | ' | ' | ' | ($1,942,829) | ($1,767,041) | ($1,480,663) |
Foreign currency derivative gains, net | ' | ' | ' | ' | ' | ' | ' | ' | 4,814 | -136 | -733 |
Interest rate derivative losses, net | ' | ' | ' | ' | ' | ' | ' | ' | 50,453 | 43,522 | 24,521 |
Total before tax | ' | ' | ' | ' | ' | ' | ' | ' | -86,410 | -85,786 | 1,082 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 34,556 | 32,549 | 1,567 |
Total net of tax | -17,079 | -40,604 | -11,316 | 17,145 | 3,408 | -45,483 | -3,904 | -7,258 | -51,854 | -53,237 | 2,649 |
Amount reclassified from accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -353 | ' | ' |
Gains on derivatives designated as hedging instruments | Amount reclassified from accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total before tax | ' | ' | ' | ' | ' | ' | ' | ' | -9,120 | ' | ' |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 3,447 | ' | ' |
Total net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -5,673 | ' | ' |
Gains on derivatives designated as hedging instruments | Amount reclassified from accumulated other comprehensive loss | Foreign currency derivatives gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency derivatives gains, net | ' | ' | ' | ' | ' | ' | ' | ' | -9,016 | ' | ' |
Foreign currency derivative gains, net | ' | ' | ' | ' | ' | ' | ' | ' | -760 | ' | ' |
Gains on derivatives designated as hedging instruments | Amount reclassified from accumulated other comprehensive loss | Interest rate derivatives loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate derivative losses, net | ' | ' | ' | ' | ' | ' | ' | ' | 656 | ' | ' |
Defined benefit pension | Amount reclassified from accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actuarial loss | ' | ' | ' | ' | ' | ' | ' | ' | 8,660 | ' | ' |
Prior service credit | ' | ' | ' | ' | ' | ' | ' | ' | -4 | ' | ' |
Total before tax | ' | ' | ' | ' | ' | ' | ' | ' | 8,656 | ' | ' |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -3,336 | ' | ' |
Total net of tax | ' | ' | ' | ' | ' | ' | ' | ' | $5,320 | ' | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Rollforward of Accumulated other comprehensive income (loss) | ' | ' | ' |
Beginning balance | ($114,054) | ' | ' |
Other comprehensive income before reclassifications, net of tax | 71,721 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | -353 | ' | ' |
Total other comprehensive income (loss), net | 71,368 | -11,714 | -67,061 |
Ending balance | -42,686 | -114,054 | ' |
Gains (losses) on derivatives designated as hedging instruments | Interest rate derivatives | ' | ' | ' |
Rollforward of Accumulated other comprehensive income (loss) | ' | ' | ' |
Other comprehensive income before reclassifications, net of tax | 688 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 408 | ' | ' |
Total other comprehensive income (loss), net | 1,096 | ' | ' |
Ending balance | 1,096 | ' | ' |
Gains (losses) on derivatives designated as hedging instruments | Foreign currency derivatives | ' | ' | ' |
Rollforward of Accumulated other comprehensive income (loss) | ' | ' | ' |
Other comprehensive income before reclassifications, net of tax | 14,358 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | -6,081 | ' | ' |
Total other comprehensive income (loss), net | 8,277 | ' | ' |
Ending balance | 8,277 | ' | ' |
Defined Benefit Pension Items | ' | ' | ' |
Rollforward of Accumulated other comprehensive income (loss) | ' | ' | ' |
Beginning balance | -114,054 | ' | ' |
Other comprehensive income before reclassifications, net of tax | 56,675 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 5,320 | ' | ' |
Total other comprehensive income (loss), net | 61,995 | ' | ' |
Ending balance | ($52,059) | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Recurring basis, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total | ' | ' |
Assets measured at fair value | ' | ' |
Cash equivalents | $269,384 | $304,159 |
Restricted cash | 21,000 | ' |
Total assets measured at fair value | 317,586 | 317,253 |
Liabilities measured at fair value | ' | ' |
Total liabilities measured at fair value | 21,547 | 397 |
Total | Fuel derivative contracts | Brent crude oil call options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 7,121 | 13,094 |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 7,121 | ' |
Total | Fuel derivative contracts | Brent crude oil put options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 186 | ' |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 186 | 397 |
Total | Fuel derivative contracts | Heating oil put options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 417 | ' |
Total | Fuel derivative contracts | Heating oil swaps | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 5,863 | ' |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 187 | ' |
Total | Foreign currency derivatives | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 12,494 | ' |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 1,188 | ' |
Total | Interest rate derivatives | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 1,121 | ' |
Total | Negative interest arbitrage derivative | ' | ' |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 12,865 | ' |
Level 1 | ' | ' |
Assets measured at fair value | ' | ' |
Cash equivalents | 269,384 | 304,159 |
Restricted cash | 21,000 | ' |
Total assets measured at fair value | 290,384 | 304,159 |
Level 2 | ' | ' |
Assets measured at fair value | ' | ' |
Total assets measured at fair value | 27,202 | 13,094 |
Liabilities measured at fair value | ' | ' |
Total liabilities measured at fair value | 8,682 | 397 |
Level 2 | Fuel derivative contracts | Brent crude oil call options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 7,121 | 13,094 |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 7,121 | ' |
Level 2 | Fuel derivative contracts | Brent crude oil put options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 186 | ' |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 186 | 397 |
Level 2 | Fuel derivative contracts | Heating oil put options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 417 | ' |
Level 2 | Fuel derivative contracts | Heating oil swaps | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 5,863 | ' |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 187 | ' |
Level 2 | Foreign currency derivatives | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 12,494 | ' |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 1,188 | ' |
Level 2 | Interest rate derivatives | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 1,121 | ' |
Level 3 | ' | ' |
Liabilities measured at fair value | ' | ' |
Total liabilities measured at fair value | 12,865 | ' |
Level 3 | Negative interest arbitrage derivative | ' | ' |
Liabilities measured at fair value | ' | ' |
Derivative contracts | $12,865 | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (Negative arbitrage derivative, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Negative arbitrage derivative | ' |
Activity for Level 3 financial liability | ' |
Enhanced equipment trust certificates activity | $12,865 |
Ending balance | $12,865 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (Recurring basis, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements | ' | ' |
Carrying value of debt | $695,804 | $554,568 |
Total | ' | ' |
Fair Value Measurements | ' | ' |
Fair value of debt | 738,563 | 547,943 |
Level 2 | ' | ' |
Fair Value Measurements | ' | ' |
Fair value of debt | 104,656 | 81,091 |
Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Fair value of debt | $633,907 | $466,852 |
Financial_Derivative_Instrumen2
Financial Derivative Instruments (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | ||||
Fuel derivative contracts | Fuel derivative contracts | Fuel derivative contracts | Interest rate derivatives | Interest rate derivatives | Foreign currency derivatives | ||||
gal | item | ||||||||
Derivative instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quantity of jet fuel covered by outstanding derivative contracts (in gallons) | ' | ' | ' | 84,700,000 | ' | ' | ' | ' | ' |
Settlement period of derivative contracts | ' | ' | ' | '12 months | ' | ' | ' | ' | ' |
Losses realized at settlement | ' | ' | ' | ($14,018,000) | ($7,372,000) | ($430,000) | ' | ' | ' |
Reversal of prior period unrealized amounts | ' | ' | ' | 6,013,000 | 2,367,000 | -3,920,000 | ' | ' | ' |
Unrealized gains (losses) on contracts that will settle in future periods | ' | ' | ' | 2,671,000 | -6,325,000 | -2,512,000 | ' | ' | ' |
Losses on fuel derivatives recorded as nonoperating income (expense) | -5,334,000 | -11,330,000 | -6,862,000 | -5,334,000 | -11,330,000 | -6,862,000 | ' | ' | ' |
Number of interest rate swap agreements matured | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Gain recognized in accumulated other comprehensive income (loss) (AOCI) | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' |
Reclassified net gains (losses) from AOCI | ' | ' | ' | ' | ' | ' | ' | -700,000 | 9,000,000 |
Accumulated other comprehensive income (loss) expected to be reclassified to earnings in the next 12 months | ' | ' | ' | ' | ' | ' | ' | ($800,000) | $11,400,000 |
Reclassification estimated time period | ' | ' | ' | ' | ' | ' | ' | '12 months | '12 months |
Financial_Derivative_Instrumen3
Financial Derivative Instruments (Details 2) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 31-May-13 |
Interest rate derivatives | Foreign currency derivatives | Fuel derivative contracts | Fuel derivative contracts | Negative arbitrage derivative | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Enhanced Equipment Trust Certificates (EETC) | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Interest rate derivatives | Interest rate derivatives | Interest rate derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Fuel derivative contracts | Fuel derivative contracts | Negative arbitrage derivative | Negative arbitrage derivative | Negative arbitrage derivative | USD ($) | |
USD ($) | Prepaid expenses and other | Long-term prepayments and other | Prepaid expenses and other | Long-term prepayments and other | Japanese yen | Japanese yen | Korean Won | Australian dollar | Australian dollar | New Zealand Dollars | Prepaid expenses and other | Other accrued liabilities | Japanese yen | Australian dollar | Prepaid expenses and other | Prepaid expenses and other | USD ($) | Other accrued liabilities | Other liabilities and deferred credits | item | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | Prepaid expenses and other | Long-term prepayments and other | Prepaid expenses and other | Prepaid expenses and other | Long-term prepayments and other | Prepaid expenses and other | USD ($) | USD ($) | Prepaid expenses and other | Prepaid expenses and other | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||
JPY (¥) | JPY (¥) | KRW | AUD | AUD | NZD | JPY (¥) | AUD | gal | gal | |||||||||||||||||
Fair Value of Derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of pass-through trusts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Aggregate principal amount issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $444,500,000 |
Notional Amount | ' | ' | ' | ' | ' | 63,800,000 | ' | ' | ' | ' | 10,500,321,000 | 1,980,949,000 | 10,895,370,000 | 62,659,000 | 16,681,000 | 4,821,000 | ' | ' | 6,180,000 | 58,000 | ' | ' | 444,540,000 | ' | ' | ' |
Notional Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84,714,000 | 126,924,000 | ' | ' | ' | ' |
Gross fair value of assets, current | 196,000 | 9,844,000 | 6,093,000 | 12,697,000 | ' | ' | 196,000 | ' | 9,946,000 | ' | ' | ' | ' | ' | ' | ' | 577,000 | 298,000 | ' | ' | 13,587,000 | 13,094,000 | ' | ' | ' | ' |
Gross fair value of assets, noncurrent | 925,000 | 1,673,000 | ' | ' | ' | ' | ' | 925,000 | ' | 1,673,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross fair value of liabilities, current | ' | -211,000 | ' | ' | -12,250,000 | ' | ' | ' | -450,000 | ' | ' | ' | ' | ' | ' | ' | -229,000 | -509,000 | ' | ' | -7,494,000 | -397,000 | ' | -12,250,000 | ' | ' |
Gross fair value of liabilities, noncurrent | ' | ' | ' | ' | -615,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -615,000 | ' |
Net derivative position | ' | ' | ' | ' | ' | ' | $196,000 | $925,000 | $9,496,000 | $1,673,000 | ' | ' | ' | ' | ' | ' | $348,000 | ($211,000) | ' | ' | $6,093,000 | $12,697,000 | ' | ($12,250,000) | ($615,000) | ' |
Financial_Derivative_Instrumen4
Financial Derivative Instruments (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Cash Flow Hedging | Cash Flow Hedging | ||
Foreign currency derivatives | Interest rate derivatives | |||
Gains (losses) for designated hedge contracts | ' | ' | ' | ' |
Gain recognized in AOCI on derivatives (effective portion) | ' | ' | ($22,781) | ($1,593) |
(Gain) loss reclassified from AOCI into income (effective portion) | ' | ' | -9,016 | 656 |
Gain recognized in nonoperating (income) expense (ineffective portion) | ' | ' | -760 | ' |
Amount of collateral posted with counterparties | $0 | $0 | ' | ' |
Financial_Derivative_Instrumen5
Financial Derivative Instruments (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Prepaid expenses and other | ' | ' |
Prepaid expenses | $35,067 | $21,984 |
Other | 452 | 320 |
Prepaid expenses and other | 51,652 | 35,001 |
Long-term prepayments and other | ' | ' |
Deposits | 28,144 | 24,891 |
Maintenance reserves | 9,650 | 5,735 |
Debt issuance costs | 35,781 | 14,041 |
Other | 15,780 | 10,962 |
Long-term prepayments and other | 91,953 | 55,629 |
Other accrued liabilities | ' | ' |
Accrued payroll and related | 48,088 | 44,747 |
Accrued taxes | 11,670 | 11,142 |
Other | 25,352 | 18,939 |
Other accrued liabilities | 97,571 | 74,828 |
Other liabilities and deferred credits | ' | ' |
Lease related obligations | 26,303 | 25,560 |
Deferred revenue | 32,299 | 12,381 |
Other | 207 | 22 |
Other liabilities and deferred credits | 59,424 | 37,963 |
Interest rate derivatives | ' | ' |
Prepaid expenses and other | ' | ' |
Derivative assets | 196 | ' |
Long-term prepayments and other | ' | ' |
Derivative assets | 925 | ' |
Foreign currency derivatives | ' | ' |
Prepaid expenses and other | ' | ' |
Derivative assets | 9,844 | ' |
Long-term prepayments and other | ' | ' |
Derivative assets | 1,673 | ' |
Other accrued liabilities | ' | ' |
Derivative liabilities | 211 | ' |
Fuel derivative contracts | ' | ' |
Prepaid expenses and other | ' | ' |
Derivative assets | 6,093 | 12,697 |
Negative arbitrage derivative | ' | ' |
Other accrued liabilities | ' | ' |
Derivative liabilities | 12,250 | ' |
Other liabilities and deferred credits | ' | ' |
Derivative liabilities | $615 | ' |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 02, 2005 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 02, 2005 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Frequent flyer program - marketing relationships | Frequent flyer program - marketing relationships | Favorable aircraft and engine leases | Favorable aircraft and engine leases | Favorable aircraft and engine leases | Favorable aircraft and engine leases | Favorable aircraft maintenance contracts | Favorable aircraft maintenance contracts | Favorable aircraft maintenance contracts | Favorable aircraft maintenance contracts | Frequent flyer program - customer relations | Frequent flyer program - customer relations | Operating certificates | Operating certificates | ||
Weighted average | Weighted average | |||||||||||||||
Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying value | ' | ' | $119,900 | $119,900 | ' | $32,710 | $32,710 | ' | ' | $18,200 | $18,200 | ' | $12,200 | $12,200 | $3,660 | $3,660 |
Accumulated amortization | -175,730 | -173,090 | -119,900 | -119,900 | ' | -32,710 | -32,710 | ' | ' | -11,069 | -9,833 | ' | -9,476 | -8,372 | -2,575 | -2,275 |
Net book value | 10,940 | ' | ' | ' | ' | ' | ' | ' | ' | 7,131 | 8,367 | ' | 2,724 | 3,828 | 1,085 | 1,385 |
Approximate useful life | ' | ' | '7 years 6 months | ' | '16 years | ' | ' | '7 years | '6 years | ' | ' | '14 years | '11 years | ' | '12 years | ' |
Hawaiian Airlines trade name | 13,000 | 13,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying value of intangible assets | 199,670 | 199,670 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net book value of intangible assets | $23,940 | $26,580 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible_Assets_Details_2
Intangible Assets (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible Assets | ' | ' | ' |
Amortization of intangible assets | $2,640 | $18,788 | $23,352 |
Estimated future amortization expense | ' | ' | ' |
2014 | 2,640 | ' | ' |
2015 | 2,640 | ' | ' |
2016 | 2,052 | ' | ' |
2017 | 1,421 | ' | ' |
2018 | 1,236 | ' | ' |
Thereafter | 951 | ' | ' |
Net book value | $10,940 | ' | ' |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-13 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 23, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Aircraft Facility Agreement | Aircraft Facility Agreement | Aircraft Facility Agreement | Aircraft Facility Agreement | Aircraft Facility Agreement | EETC | EETC | EETC | EETC | EETC | Convertible notes | Convertible notes | Convertible notes | Convertible notes | Secured loan, due 2013 | Secured loan, due 2013 | Capital lease obligations | Capital lease obligations | Revolving Credit Facility | Revolving Credit Facility | ||||
Airbus A330-200 | Airbus A330-200 | Boeing 717-200 | Boeing 717-200 | Boeing 767-300 | Class A Pass Through Trust | Class B Pass Through Trust | Airbus A330-200 | Airbus A330-200 | Airbus A330-200 | D | |||||||||||||
Class A Pass Through Trust | Class B Pass Through Trust | ||||||||||||||||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt and capital lease obligations | $816,173,000 | $674,814,000 | ' | $353,723,000 | $246,443,000 | $154,422,000 | $170,701,000 | $35,000,000 | ' | ' | ' | $56,000,000 | $20,110,000 | ' | $86,250,000 | $86,250,000 | ' | ' | $64,748,000 | $110,668,000 | $106,672,000 | ' | ' |
Less: Unamortized discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9,700,000 | -13,573,000 | ' | ' | ' | ' | ' | ' | ' |
Less: Current maturities | -62,187,000 | -108,232,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt excluding current maturities | 744,286,000 | 553,009,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate (as a percent) | ' | ' | ' | ' | ' | 8.00% | ' | ' | 3.90% | 4.95% | ' | 3.90% | 4.95% | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate, minimum (as a percent) | ' | ' | ' | 5.31% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate, maximum (as a percent) | ' | ' | ' | 6.46% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining balance due at maturity | ' | ' | ' | ' | ' | 39,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | 86,250,000 | ' | ' | 52,200,000 | ' | ' | ' | ' | ' |
Variable interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 2.92% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining amortization period for interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 3 months | ' | ' | ' | ' | ' | ' | ' | ' |
Debt outstanding amount | 705,505,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balloon payment due at maturity date | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Committed debt financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of loan agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount used for debt instrument conversion ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion rate of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 127 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares that the holder of the debt instrument would receive upon conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.88 | $7.88 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of days within 30 consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for the notes to be redeemable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days in order for the notes to be redeemable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of the conversion price per share of common stock that the closing price of common stock must exceed in order for the notes to be convertible | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of consecutive business days immediately after any ten consecutive trading day period during the note measurement period, a condition for conversion of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of consecutive trading days before five consecutive business days during the note measurement period, a condition for conversion of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of the average trading price to the average conversion value of the notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal amount at which notes may be required to be repurchased in event of fundamental change by the entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of reduction in the carrying value | ' | ' | 19,504,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,500,000 | ' | ' | ' | ' | ' | ' |
Interest rate used to value equity component (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' |
Total issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | ' | ' | ' | ' | ' | ' |
Debt issuance costs allocated to debt component | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' |
Debt issuance costs allocated to equity component | ' | ' | 463,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' |
Non-cash interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | 3,500,000 | 2,400,000 | ' | ' | ' | ' | ' | ' |
Interest expense | 50,453,000 | 43,522,000 | 24,521,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,800,000 | 4,800,000 | 3,800,000 | ' | ' | ' | ' | ' | ' |
Excess amount of convertible value of notes over principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount paid for Convertible Note Hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,500,000 | ' | ' | ' | ' | ' | ' |
Number of shares that the holder of the warrant would receive | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.9 | ' | ' | ' | ' | ' | ' |
Exercise price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' |
Proceeds from sale of warrants | ' | ' | 11,948,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,900,000 | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | ' |
Outstanding borrowing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Available borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,000,000 | 68,900,000 |
Scheduled maturities of long-term debt over the next five years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 53,356,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 65,075,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 147,732,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 63,717,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 71,269,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | $304,356,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 27, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
item | Minimum | Maximum | Boeing 717-200 | Boeing 717-200 | Aircraft | Other | |||
item | |||||||||
Future minimum rental payments under capital leases | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | ' | ' | ' | ' | ' | $13,713,000 | $1,629,000 |
2015 | ' | ' | ' | ' | ' | ' | ' | 13,803,000 | 1,190,000 |
2016 | ' | ' | ' | ' | ' | ' | ' | 13,803,000 | 1,223,000 |
2017 | ' | ' | ' | ' | ' | ' | ' | 13,803,000 | 1,179,000 |
2018 | ' | ' | ' | ' | ' | ' | ' | 13,803,000 | 1,281,000 |
Thereafter | ' | ' | ' | ' | ' | ' | ' | 59,544,000 | 10,691,000 |
Total minimum capital lease payments | ' | ' | ' | ' | ' | ' | ' | 128,469,000 | 17,193,000 |
Less amounts representing interest | ' | ' | ' | ' | ' | ' | ' | -29,931,000 | -5,063,000 |
Present value of minimum capital lease payments | ' | ' | ' | ' | ' | ' | ' | 98,538,000 | 12,130,000 |
Future minimum rental payments under operating leases | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | ' | ' | ' | ' | ' | 97,949,000 | 4,145,000 |
2015 | ' | ' | ' | ' | ' | ' | ' | 97,173,000 | 3,893,000 |
2016 | ' | ' | ' | ' | ' | ' | ' | 80,464,000 | 3,725,000 |
2017 | ' | ' | ' | ' | ' | ' | ' | 79,942,000 | 3,088,000 |
2018 | ' | ' | ' | ' | ' | ' | ' | 79,943,000 | 3,069,000 |
Thereafter | ' | ' | ' | ' | ' | ' | ' | 242,545,000 | 21,901,000 |
Total minimum operating lease payments | ' | ' | ' | ' | ' | ' | ' | 678,016,000 | 39,821,000 |
Other lease disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft covered under agreement | ' | ' | ' | ' | ' | 15 | ' | ' | ' |
Number of aircraft under operating lease contracts | 13 | ' | ' | ' | ' | 11 | ' | ' | ' |
Number of aircraft under capital lease contracts | 3 | ' | ' | ' | ' | 4 | ' | ' | ' |
Number of Rolls-Royce BR 700-715 engines included in each aircraft | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
Purchase price of aircraft acquired from lessor after termination of lease agreement | ' | ' | ' | ' | ' | 230,000,000 | ' | ' | ' |
Borrowings for financing aircraft | ' | ' | ' | ' | ' | 192,800,000 | ' | ' | ' |
Cash payment to purchase aircraft | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' |
Amount of maintenance and security deposits used in payment of purchase price | ' | ' | ' | ' | ' | 12,200,000 | ' | ' | ' |
Fair value of aircraft | ' | ' | ' | ' | ' | ' | 135,000,000 | ' | ' |
Lease termination charges | ' | ' | 70,014,000 | ' | ' | ' | 70,000,000 | ' | ' |
Number of aircraft under lease contracts | 16 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircrafts | 47 | ' | ' | ' | ' | ' | ' | ' | ' |
Term of lease | ' | ' | ' | '2 years | '12 years | ' | ' | ' | ' |
Accumulated amortization for Aircraft and other capital leases | 19,400,000 | 8,300,000 | ' | ' | ' | ' | ' | ' | ' |
Rent expense | $158,600,000 | $151,000,000 | $156,700,000 | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current | ' | ' | ' |
Federal | ' | ' | ($36,515) |
State | 450 | 1,216 | -5,686 |
Current Income tax expense total | 450 | 1,216 | -42,201 |
Deferred | ' | ' | ' |
Federal | 30,542 | 27,936 | 37,150 |
State | 3,564 | 3,397 | 6,618 |
Deferred tax expense total | 34,106 | 31,333 | 43,768 |
Income tax expense total | 34,556 | 32,549 | 1,567 |
Reconciliation of income tax expense and amounts computed at the statutory federal income tax rate | ' | ' | ' |
Income tax expense (benefit) computed at the statutory federal rate | 30,243 | 30,025 | -368 |
Increase (decrease) resulting from state income taxes, net of federal tax effect | 2,631 | 2,999 | 132 |
Increase (decrease) resulting from nondeductible meals | 971 | 910 | 538 |
Increase (decrease) resulting from change in uncertain tax positions | ' | ' | -1,983 |
Increase (decrease) resulting from effect of change in state apportionment rates and tax rates | ' | ' | 2,624 |
Increase (decrease) resulting from settlement of prior year tax matters | ' | ' | 618 |
Increase (decrease) resulting from other | 711 | -1,385 | 6 |
Income tax expense total | 34,556 | 32,549 | 1,567 |
Deferred tax assets: | ' | ' | ' |
Accumulated pension and other postretirement benefits | 100,907 | 135,922 | ' |
Leases | 7,009 | 5,610 | ' |
Air traffic liability | 10,390 | 10,745 | ' |
Federal and state net operating loss carryforwards | 91,911 | 75,223 | ' |
Alternative minimum tax credit carryforwards | 7,447 | 5,909 | ' |
Other assets | 24,782 | 25,814 | ' |
Total deferred tax assets | 242,446 | 259,223 | ' |
Deferred tax liabilities: | ' | ' | ' |
Intangible assets | -9,050 | -10,169 | ' |
Plant and equipment, principally accelerated depreciation | -252,902 | -187,222 | ' |
Other liabilities | -4,119 | -7,781 | ' |
Total deferred tax liabilities | -266,071 | -205,172 | ' |
Net deferred tax assets: | ' | ' | ' |
Net deferred tax asset (liability) | ($23,625) | $54,051 | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes | ' | ' | ' |
Alternative minimum tax credit carryforwards | ' | $7,447,000 | $5,909,000 |
Federal and state net operating loss carryforwards | ' | 278,600,000 | ' |
Net operating loss expiration amount | ' | 91,911,000 | 75,223,000 |
Reconciliation of beginning and ending amounts of unrecognized tax benefits related to uncertain tax positions | ' | ' | ' |
Balance at the beginning of the period | 1,983,000 | 0 | 0 |
Decreases related to prior year tax positions | -367,000 | ' | ' |
Settlements with taxing authority | -490,000 | ' | ' |
Effect of the expiration of statutes of limitation | -1,126,000 | ' | ' |
Balance at the end of the period | ' | $0 | $0 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
Jan. 01, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | Pension | Pension | Pension | Other | Other | Other | |||
Employee Benefit Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum age of pilots who were participants of plan as of July 1, 2005 for whom further benefit will accrue | '50 years | ' | ' | ' | ' | ' | ' | ' | ' |
Number of unfunded defined benefit postretirement medical and life insurance plans sponsored by company | ' | 4 | ' | ' | ' | ' | ' | ' | ' |
Accumulated pension benefit obligation | ' | $391,500,000 | $413,400,000 | ' | ' | ' | ' | ' | ' |
Change in benefit obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit obligations, beginning of year | ' | ' | ' | -421,884,000 | -391,287,000 | ' | -183,944,000 | -156,197,000 | ' |
Service cost | ' | ' | ' | -2,555,000 | -2,723,000 | -2,833,000 | -13,596,000 | -11,152,000 | -6,342,000 |
Interest cost | ' | ' | ' | -17,389,000 | -18,993,000 | -19,426,000 | -7,888,000 | -8,548,000 | -6,657,000 |
Actuarial gains (losses) | ' | ' | ' | 25,213,000 | -26,450,000 | ' | 47,296,000 | -11,196,000 | ' |
Benefits paid | ' | ' | ' | 19,406,000 | 17,569,000 | ' | 3,319,000 | 3,188,000 | ' |
Less: federal subsidy on benefits paid | ' | ' | ' | ' | ' | ' | -51,000 | -39,000 | ' |
Benefit obligation at end of year | ' | ' | ' | -397,209,000 | -421,884,000 | -391,287,000 | -154,864,000 | -183,944,000 | -156,197,000 |
Change in plan assets | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of assets, beginning of year | ' | ' | ' | 238,134,000 | 214,159,000 | ' | 12,418,000 | 9,870,000 | ' |
Actual return on plan assets | ' | ' | ' | 35,344,000 | 24,525,000 | ' | 766,000 | 899,000 | ' |
Employer contribution | ' | ' | ' | 15,933,000 | 17,019,000 | ' | 5,264,000 | 4,837,000 | ' |
Benefits paid | ' | ' | ' | -19,406,000 | -17,569,000 | ' | -3,319,000 | -3,188,000 | ' |
Fair value of assets at end of year | ' | ' | ' | 270,005,000 | 238,134,000 | 214,159,000 | 15,129,000 | 12,418,000 | 9,870,000 |
Funded status at end of period | ' | ' | ' | -127,204,000 | -183,750,000 | ' | -139,735,000 | -171,526,000 | ' |
Amounts recognized in the statement of financial position consist of: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current benefit liability | ' | ' | ' | -17,000 | -17,000 | ' | -2,816,000 | -2,799,000 | ' |
Noncurrent benefit liability | ' | -264,106,000 | -352,460,000 | -127,187,000 | -183,733,000 | ' | -136,919,000 | -168,727,000 | ' |
Total reflected in the statement of financial position | ' | ' | ' | -127,204,000 | -183,750,000 | ' | -139,735,000 | -171,526,000 | ' |
Amounts recognized in other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized actuarial loss | ' | ' | ' | 57,265,000 | 108,719,000 | ' | 6,435,000 | 55,991,000 | ' |
Prior service credit | ' | ' | ' | -55,000 | -57,000 | ' | -22,000 | -23,000 | ' |
Total reflected in other comprehensive loss | ' | ' | ' | 57,210,000 | 108,662,000 | ' | 6,413,000 | 55,968,000 | ' |
Components of Net Periodic Benefit Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service cost | ' | ' | ' | 2,555,000 | 2,723,000 | 2,833,000 | 13,596,000 | 11,152,000 | 6,342,000 |
Interest cost | ' | ' | ' | 17,389,000 | 18,993,000 | 19,426,000 | 7,888,000 | 8,548,000 | 6,657,000 |
Expected return on plan assets | ' | ' | ' | -15,348,000 | -15,253,000 | -18,015,000 | -912,000 | -819,000 | -774,000 |
Recognized net actuarial loss | ' | ' | ' | 6,246,000 | 4,653,000 | 184,000 | 2,414,000 | 2,717,000 | 278,000 |
Prior service credit | ' | ' | ' | -2,000 | -2,000 | -2,000 | -2,000 | -2,000 | -2,000 |
Net periodic benefit cost | ' | ' | ' | 10,840,000 | 11,114,000 | 4,426,000 | 22,984,000 | 21,596,000 | 12,501,000 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current year actuarial (gain) loss | ' | ' | ' | -45,209,000 | 17,178,000 | 68,045,000 | -47,143,000 | 11,148,000 | 38,297,000 |
Amortization of actuarial loss | ' | ' | ' | -6,246,000 | -4,653,000 | -184,000 | -2,414,000 | -2,717,000 | -278,000 |
Amortization of prior service credit | ' | ' | ' | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 |
Total recognized in other comprehensive loss | ' | ' | ' | -51,453,000 | 12,527,000 | 67,863,000 | -49,555,000 | 8,433,000 | 38,021,000 |
Total recognized in net periodic benefit cost and other comprehensive loss | ' | ' | ' | ($40,613,000) | $23,641,000 | $72,289,000 | ($26,571,000) | $30,029,000 | $50,522,000 |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Annual effects of one-percentage point change in the assumed health care cost trend rates | ' | ' |
Effect on postretirement benefit obligation with 1-percentage point increase | $24,176 | ' |
Effect on postretirement benefit obligation with 1-percentage point decrease | -19,387 | ' |
Effect on total service and interest cost with 1-percentage point increase | 4,872 | ' |
Effect on total service and interest cost with 1-percentage point decrease | -3,671 | ' |
Pension | ' | ' |
Weighted average assumption used to determine net periodic benefit expense and projected benefit obligations: | ' | ' |
Discount rate to determine net periodic benefit expense (as a percent) | 4.10% | 4.94% |
Discount rate to determine projected benefit obligation (as a percent) | 5.01% | 4.10% |
Expected return on plan assets (as a percent) | 6.55% | 7.30% |
Expected return on plan assets for next fiscal year (as a percent) | 6.92% | ' |
Estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in next fiscal year | ' | ' |
Actuarial (gain) loss | 1,144 | ' |
Amortization of prior service cost | -2 | ' |
To be recognized in net periodic benefit cost from accumulated other comprehensive loss | 1,142 | ' |
Pension | Minimum | ' | ' |
Weighted average assumption used to determine net periodic benefit expense and projected benefit obligations: | ' | ' |
Rate of compensation increase (as a percent) | 1.50% | 1.50% |
Pension | Maximum | ' | ' |
Weighted average assumption used to determine net periodic benefit expense and projected benefit obligations: | ' | ' |
Rate of compensation increase (as a percent) | 6.00% | 7.50% |
Postretirement | ' | ' |
Weighted average assumption used to determine net periodic benefit expense and projected benefit obligations: | ' | ' |
Discount rate to determine net periodic benefit expense (as a percent) | 4.24% | 5.14% |
Discount rate to determine projected benefit obligation (as a percent) | 5.21% | 4.24% |
Health care trend rate to determine net periodic benefit expense (as a percent) | 8.00% | 9.00% |
Health care trend rate in 2019 (as a percent) | 4.75% | 4.75% |
Health care trend rate to determine projected benefit obligation (as a percent) | 8.00% | 8.00% |
Health care trend rate in 2018 (as a percent) | 4.75% | 4.75% |
Estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in next fiscal year | ' | ' |
Actuarial (gain) loss | -239 | ' |
Amortization of prior service cost | -2 | ' |
To be recognized in net periodic benefit cost from accumulated other comprehensive loss | ($241) | ' |
Disability | ' | ' |
Weighted average assumption used to determine net periodic benefit expense and projected benefit obligations: | ' | ' |
Discount rate to determine net periodic benefit expense (as a percent) | 4.06% | 4.91% |
Discount rate to determine projected benefit obligation (as a percent) | 4.99% | 4.06% |
Expected return on plan assets (as a percent) | 6.15% | 6.90% |
Expected return on plan assets for next fiscal year (as a percent) | 5.92% | ' |
Disability | Minimum | ' | ' |
Weighted average assumption used to determine net periodic benefit expense and projected benefit obligations: | ' | ' |
Rate of compensation increase (as a percent) | 1.50% | 1.50% |
Disability | Maximum | ' | ' |
Weighted average assumption used to determine net periodic benefit expense and projected benefit obligations: | ' | ' |
Rate of compensation increase (as a percent) | 6.00% | 7.50% |
Employee_Benefit_Plans_Details2
Employee Benefit Plans (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Pension Plan Assets: | Postretirement Assets: | Postretirement Assets: | Postretirement Assets: | Postretirement Assets: |
Level 1 | Level 1 | Level 2 | Level 2 | Cash equivalents | Cash equivalents | Cash equivalents | Cash equivalents | Equity securities | Common stock - Domestic | Common stock - Domestic | Common stock - Domestic | Common stock - Domestic | Common stock - Foreign | Common stock - Foreign | Real estate investment trusts | Real estate investment trusts | Real estate investment trusts - Domestic | Real estate investment trusts - Domestic | Real estate investment trusts - Foreign | Real estate investment trusts - Foreign | Preferred stock - Domestic | Preferred stock - Domestic | Preferred stock - Foreign | Preferred stock - Foreign | Other equities - Domestic | Other equities - Domestic | Equity index funds | Equity index funds | Equity index funds | Equity index funds | Fixed income securities | Government bonds - Domestic | Government bonds - Domestic | Government bonds - Foreign | Government bonds - Foreign | Mortgage-based securities | Mortgage-based securities | Corporate bonds - Domestic | Corporate bonds - Domestic | Corporate bonds - Foreign | Corporate bonds - Foreign | State and Local bonds | State and Local bonds | Fixed income funds | Fixed income funds | Fixed income funds | Fixed income funds | Common collective trust fund | Common collective trust fund | Forward contracts | Forward contracts | Insurance company pooled separate account | Insurance company pooled separate account | Insurance company pooled separate account | Insurance company pooled separate account | Common collective trust fund | Common collective trust fund | Common collective trust fund | Common collective trust fund | |||
Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Asset Allocation (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Target Asset Allocation (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value of Plan Assets | $263,056 | $232,629 | $166 | $70,881 | $262,890 | $161,748 | $164 | $1,419 | $164 | $1,419 | ' | $2 | $42,140 | $2 | $42,140 | $26,284 | $26,284 | $12,237 | $12,237 | $4,222 | $4,222 | $3,743 | $3,743 | $496 | $496 | $322 | $322 | $220 | $220 | $160,286 | $66,388 | $160,286 | $66,388 | ' | $3,960 | $3,960 | $18,313 | $18,313 | $2,625 | $2,625 | $7,577 | $7,577 | $3,444 | $3,444 | $150 | $150 | $89,086 | $43,952 | $89,086 | $43,952 | $2,902 | $2,902 | ($6) | ($6) | $1,281 | $4,478 | $1,281 | $4,478 | $15,063 | $12,356 | $15,063 | $12,356 |
Employee_Benefit_Plans_Details3
Employee Benefit Plans (Details 4) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Pension | ' |
Projected benefit payments | ' |
2014 | $20,353,000 |
2015 | 21,593,000 |
2016 | 22,790,000 |
2017 | 24,156,000 |
2018 | 25,536,000 |
2019-2022 | 138,268,000 |
Total | 252,696,000 |
Other | ' |
Projected benefit payments | ' |
2014 | 3,798,000 |
2015 | 4,322,000 |
2016 | 4,987,000 |
2017 | 5,577,000 |
2018 | 6,260,000 |
2019-2022 | 43,071,000 |
Total | 68,015,000 |
Expected Federal Subsidy | ' |
2014 | -59,000 |
2015 | -68,000 |
2016 | -76,000 |
2017 | -89,000 |
2018 | -101,000 |
2019-2022 | -712,000 |
Total | -1,105,000 |
Defined pension and disability plan | ' |
Benefit Plans | ' |
Minimum required contribution in next fiscal year | $14,200,000 |
Employee_Benefit_Plans_Details4
Employee Benefit Plans (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Contribution Plans | ' | ' | ' |
Contributions | $25.10 | $21.30 | $18.50 |
Capital_Stock_and_Sharebased_C2
Capital Stock and Share-based Compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Capital stock information | ' | ' | ' |
Dividend paid | $0 | $0 | $0 |
Preferred stock par value used in liquidation (in dollars per share) | $0.01 | $0.01 | ' |
Stock Options | ' | ' | ' |
Aggregate intrinsic value of stock options outstanding | $9.70 | $5 | ' |
Aggregate intrinsic value of stock options exercisable | 9.7 | 5 | ' |
Weighted average grant date fair value | ' | ' | ' |
Total share-based compensation expense | 4.6 | 3.4 | 4.3 |
Period of reorganization for unrecognized share-based compensation expense | '1 year 1 month 6 days | ' | ' |
Share-based compensation expense related to unvested stock options and other awards | 4.1 | ' | ' |
Non-employee directors | ' | ' | ' |
Weighted average grant date fair value | ' | ' | ' |
Share-based compensation expense related to unvested stock options and other awards | $0.30 | ' | ' |
Performance and Market-Based Stock Awards | ' | ' | ' |
Share Based Compensation | ' | ' | ' |
Maximum payout of shares of Common Stock | 802,212 | ' | ' |
Vesting period | '3 years | ' | ' |
Assumptions used in valuation of market based awards | ' | ' | ' |
Expected volatility (as a percent) | 68.50% | ' | ' |
Risk-free interest rate (as a percent) | 1.21% | ' | ' |
Expected life | '3 years 6 months | ' | ' |
Expected dividend yield (as a percent) | 0.00% | ' | ' |
Number of units | ' | ' | ' |
Non-vested at the beginning of the period (in shares) | 1,069,889 | ' | ' |
Granted during the period (in shares) | 501,542 | ' | ' |
Vested during the period (in shares) | -198,112 | ' | ' |
Forfeited during the period (in shares) | -230,727 | ' | ' |
Non-vested at the end of the period (in shares) | 1,142,592 | ' | ' |
Weighted average grant date fair value | ' | ' | ' |
Non-vested at the beginning of the period (in dollars per shares) | $6.09 | ' | ' |
Granted during the period (in dollars per share) | $5.74 | ' | ' |
Vested during the period (in dollars per share) | $6.96 | ' | ' |
Forfeited during the period (in dollars per share) | $5.59 | ' | ' |
Non-vested at the end of the period (in dollars per shares) | $5.88 | ' | ' |
Time-Based Stock Awards | ' | ' | ' |
Number of units | ' | ' | ' |
Non-vested at the beginning of the period (in shares) | 548,282 | ' | ' |
Granted during the period (in shares) | 378,845 | ' | ' |
Vested during the period (in shares) | -323,094 | ' | ' |
Forfeited during the period (in shares) | -43,135 | ' | ' |
Non-vested at the end of the period (in shares) | 560,898 | ' | ' |
Weighted average grant date fair value | ' | ' | ' |
Non-vested at the beginning of the period (in dollars per shares) | $6.19 | ' | ' |
Granted during the period (in dollars per share) | $5.70 | ' | ' |
Vested during the period (in dollars per share) | $6.20 | ' | ' |
Forfeited during the period (in dollars per share) | $6.03 | ' | ' |
Non-vested at the end of the period (in dollars per shares) | $5.86 | ' | ' |
Time-Based Stock Awards | Minimum | ' | ' | ' |
Share Based Compensation | ' | ' | ' |
Vesting period | '1 year | ' | ' |
Time-Based Stock Awards | Maximum | ' | ' | ' |
Share Based Compensation | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Common Stock | ' | ' | ' |
Capital stock information | ' | ' | ' |
Number of classes of common stock | 1 | ' | ' |
Number of votes per share | 1 | ' | ' |
Preferred stock | ' | ' | ' |
Capital stock information | ' | ' | ' |
Number of votes per share | 1 | ' | ' |
Number of shares of Special Preferred Stock held by each union | 1 | ' | ' |
Number of directors, each union is entitled to nominate | 1 | ' | ' |
Preferred stock par value used in liquidation (in dollars per share) | $0.01 | ' | ' |
Multiplier of dividend per share paid on common stock to determine dividend on Special Preferred Stock | 2 | ' | ' |
Conversion ratio for conversion of special preferred stock into common stock | 1 | ' | ' |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities (Details) (USD $) | Dec. 31, 2013 | Jan. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Capacity purchase agreement | Capital | Capital | Capital | Capital | Capital | Capital | Capital | Operating | |
Subsequent event | Airbus A330-200 | Airbus A330-200 | Airbus A350XWB-800 | Airbus A350XWB-800 | Airbus A321neo aircraft | Airbus A321neo aircraft | ||||
item | Rolls Royce spare engines | item | Rolls Royce spare engines | item | Pratt and Whitney spare engines | |||||
item | item | item | ||||||||
Commitments and Contingent Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Firm Orders, number of aircraft | ' | ' | ' | 8 | ' | 6 | ' | 16 | ' | ' |
Purchase Rights for number of additional aircraft | ' | ' | ' | 3 | ' | 6 | ' | 9 | ' | ' |
Firm orders, number of spare engines | ' | ' | ' | ' | 2 | ' | 2 | ' | 2 | ' |
Total Committed Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | $478,489 | $7,900 | $421,472 | ' | ' | ' | ' | ' | ' | $57,017 |
2015 | 300,860 | 5,300 | 245,589 | ' | ' | ' | ' | ' | ' | 55,271 |
2016 | 191,467 | 5,300 | 147,824 | ' | ' | ' | ' | ' | ' | 43,643 |
2017 | 536,207 | 5,500 | 493,824 | ' | ' | ' | ' | ' | ' | 42,383 |
2018 | 249,466 | 5,500 | 212,114 | ' | ' | ' | ' | ' | ' | 37,352 |
Thereafter | 1,149,232 | ' | 893,582 | ' | ' | ' | ' | ' | ' | 255,650 |
Total | 2,905,721 | ' | 2,414,405 | ' | ' | ' | ' | ' | ' | 491,316 |
Less: Committed Financing for Upcoming Aircraft Deliveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 368,430 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 368,430 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Committed Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 110,059 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 300,860 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 191,467 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 536,207 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 249,466 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 1,149,232 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $2,537,291 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingent_Lia3
Commitments and Contingent Liabilities (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | Dec. 31, 2013 | 31-May-13 | 31-May-13 |
Credit card processing agreements | Credit card processing agreements | Enhanced Equipment Trust Certificates (EETC) | Enhanced Equipment Trust Certificates (EETC) | Enhanced Equipment Trust Certificates (EETC) | Enhanced Equipment Trust Certificates (EETC) | |
item | item | Class A pass-through trust | Class B pass-through trust | |||
Commitments | ' | ' | ' | ' | ' | ' |
Number of pass-through trusts | ' | ' | 2 | ' | ' | ' |
Aggregate principal amount issued | ' | ' | $444,500,000 | ' | $328,200,000 | $116,300,000 |
Stated interest rate (as a percent) | ' | ' | ' | ' | 3.90% | 4.95% |
Number of aircraft financed through loan | ' | ' | 5 | 1 | ' | ' |
Proceeds from the issuance of the equipment notes | ' | ' | ' | 76,100,000 | ' | ' |
Restricted cash | $5,000,000 | $5,000,000 | ' | $16,000,000 | ' | ' |
Maximum limit of holdback (as a percent) | 100.00% | ' | ' | ' | ' | ' |
Geographic_Information_Details
Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||||||||||
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of significant lines of business offered by company | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenue | $531,885 | $599,298 | $533,928 | $490,754 | $492,986 | $549,322 | $484,551 | $435,494 | $2,155,865 | $1,962,353 | $1,650,459 |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,493,295 | 1,378,498 | 1,272,196 |
Pacific | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' | ' | ' | ' | ' | $662,570 | $583,855 | $378,263 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Cash Flow Information | ' | ' | ' |
Cash payments for interest (net of amounts capitalized) | $36,574 | $35,153 | $15,600 |
Cash payments (refunds) for income taxes | 2 | -16,913 | -21,281 |
Investing and Financing Activities Not Affecting Cash: | ' | ' | ' |
Property and equipment acquired through a capital lease | $11,840 | $111,921 | ' |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | $531,885 | $599,298 | $533,928 | $490,754 | $492,986 | $549,322 | $484,551 | $435,494 | $2,155,865 | $1,962,353 | $1,650,459 |
Operating Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aircraft fuel, including taxes, oil and delivery | ' | ' | ' | ' | ' | ' | ' | ' | 698,802 | 631,741 | 513,284 |
Wages and benefits | ' | ' | ' | ' | ' | ' | ' | ' | 427,438 | 376,574 | 321,241 |
Aircraft rent | ' | ' | ' | ' | ' | ' | ' | ' | 108,534 | 98,786 | 112,883 |
Maintenance materials and repairs | ' | ' | ' | ' | ' | ' | ' | ' | 203,387 | 183,552 | 169,851 |
Aircraft and passenger servicing | ' | ' | ' | ' | ' | ' | ' | ' | 120,635 | 103,825 | 82,250 |
Commissions and other selling | ' | ' | ' | ' | ' | ' | ' | ' | 125,900 | 114,324 | 96,264 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 83,050 | 85,599 | 66,262 |
Other rentals and landing fees | ' | ' | ' | ' | ' | ' | ' | ' | 81,317 | 85,623 | 72,445 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 173,055 | 152,931 | 125,682 |
Lease termination charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,014 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 2,022,118 | 1,832,955 | 1,630,176 |
Operating Income | 33,848 | 74,434 | 37,391 | -11,926 | 12,237 | 74,933 | 29,328 | 12,900 | 133,747 | 129,398 | 20,283 |
Nonoperating Income (Expense): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense and amortization of debt discounts and issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | -50,453 | -43,522 | -24,521 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 639 | 580 | 1,514 |
Capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | 12,625 | 10,524 | 7,771 |
Losses on fuel derivatives | ' | ' | ' | ' | ' | ' | ' | ' | -5,334 | -11,330 | -6,862 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | -4,814 | 136 | 733 |
Total | -5,692 | -7,016 | -19,176 | -15,453 | -18,422 | -1,130 | -23,019 | -1,041 | -47,337 | -43,612 | -21,365 |
Income (Loss) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 86,410 | 85,786 | -1,082 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 34,556 | 32,549 | 1,567 |
Net Income (Loss) | 17,079 | 40,604 | 11,316 | -17,145 | -3,408 | 45,483 | 3,904 | 7,258 | 51,854 | 53,237 | -2,649 |
Total comprehensive income (loss), net | ' | ' | ' | ' | ' | ' | ' | ' | 123,222 | 41,523 | -69,710 |
Parent Issuer / Guarantor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 7,772 | 4,712 | 4,467 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 7,772 | 4,712 | 4,467 |
Operating Income | ' | ' | ' | ' | ' | ' | ' | ' | -7,772 | -4,712 | -4,467 |
Nonoperating Income (Expense): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 62,549 | 61,388 | 2,654 |
Interest expense and amortization of debt discounts and issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | -8,710 | -8,330 | -6,209 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 132 | 114 | 128 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 53,971 | 53,172 | -3,427 |
Income (Loss) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 46,199 | 48,460 | -7,894 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -5,655 | -4,777 | -5,245 |
Net Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 51,854 | 53,237 | -2,649 |
Total comprehensive income (loss), net | ' | ' | ' | ' | ' | ' | ' | ' | 123,222 | 53,237 | -2,649 |
Subsidiary Issuer / Guarantor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of pass-through trusts | 2 | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Ownership interest (as a percent) | 100.00% | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 2,155,554 | 1,962,571 | 1,650,616 |
Operating Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aircraft fuel, including taxes, oil and delivery | ' | ' | ' | ' | ' | ' | ' | ' | 698,802 | 631,741 | 513,284 |
Wages and benefits | ' | ' | ' | ' | ' | ' | ' | ' | 427,438 | 376,574 | 321,241 |
Aircraft rent | ' | ' | ' | ' | ' | ' | ' | ' | 108,534 | 98,786 | 112,883 |
Maintenance materials and repairs | ' | ' | ' | ' | ' | ' | ' | ' | 203,387 | 183,552 | 169,851 |
Aircraft and passenger servicing | ' | ' | ' | ' | ' | ' | ' | ' | 120,635 | 103,825 | 82,250 |
Commissions and other selling | ' | ' | ' | ' | ' | ' | ' | ' | 125,962 | 114,366 | 96,290 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 83,050 | 85,599 | 66,262 |
Other rentals and landing fees | ' | ' | ' | ' | ' | ' | ' | ' | 81,317 | 85,623 | 72,445 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 165,101 | 148,300 | 121,278 |
Lease termination charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,014 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 2,014,226 | 1,828,366 | 1,625,798 |
Operating Income | ' | ' | ' | ' | ' | ' | ' | ' | 141,328 | 134,205 | 24,818 |
Nonoperating Income (Expense): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense and amortization of debt discounts and issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | -41,743 | -35,192 | -18,312 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 507 | 466 | 1,386 |
Capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | 12,625 | 10,524 | 7,771 |
Losses on fuel derivatives | ' | ' | ' | ' | ' | ' | ' | ' | -5,334 | -11,330 | -6,862 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | -4,814 | 136 | 733 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | -38,759 | -35,396 | -15,284 |
Income (Loss) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 102,569 | 98,809 | 9,534 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 40,211 | 37,326 | 6,812 |
Net Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 62,358 | 61,483 | 2,722 |
Total comprehensive income (loss), net | ' | ' | ' | ' | ' | ' | ' | ' | 133,726 | 49,769 | -64,339 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 647 | 41 | 17 |
Operating Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 456 | 136 | 85 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 456 | 136 | 85 |
Operating Income | ' | ' | ' | ' | ' | ' | ' | ' | 191 | -95 | -68 |
Nonoperating Income (Expense): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (Loss) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 191 | -95 | -68 |
Net Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 191 | -95 | -68 |
Total comprehensive income (loss), net | ' | ' | ' | ' | ' | ' | ' | ' | 191 | -95 | -68 |
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | -336 | -259 | -174 |
Operating Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commissions and other selling | ' | ' | ' | ' | ' | ' | ' | ' | -62 | -42 | -26 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | -274 | -217 | -148 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | -336 | -259 | -174 |
Nonoperating Income (Expense): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -62,549 | -61,388 | -2,654 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | -62,549 | -61,388 | -2,654 |
Income (Loss) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -62,549 | -61,388 | -2,654 |
Net Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | -62,549 | -61,388 | -2,654 |
Total comprehensive income (loss), net | ' | ' | ' | ' | ' | ' | ' | ' | ($133,917) | ($61,388) | ($2,654) |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $423,384 | $405,880 | $304,115 | $285,037 |
Restricted cash | 19,434 | 5,000 | ' | ' |
Accounts receivable, net | 74,245 | 80,750 | ' | ' |
Spare parts and supplies, net | 19,767 | 27,552 | ' | ' |
Deferred tax assets, net | 17,325 | 17,675 | ' | ' |
Prepaid expenses and other | 51,652 | 35,001 | ' | ' |
Total | 605,807 | 571,858 | ' | ' |
Property and equipment at cost | 1,661,434 | 1,318,213 | ' | ' |
Less accumulated depreciation and amortization | -327,102 | -249,495 | ' | ' |
Total | 1,334,332 | 1,068,718 | ' | ' |
Long-term prepayments and other | 91,953 | 55,629 | ' | ' |
Restricted cash | 1,566 | ' | ' | ' |
Deferred tax assets, net | ' | 36,376 | ' | ' |
Goodwill and other intangible assets, net | 130,603 | 133,243 | ' | ' |
Total Assets | 2,164,261 | 1,865,824 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 89,787 | 82,084 | ' | ' |
Air traffic liability | 409,086 | 388,646 | ' | ' |
Other accrued liabilities | 97,571 | 74,828 | ' | ' |
Current maturities of long-term debt and capital lease obligations | 62,187 | 108,232 | ' | ' |
Total | 658,631 | 653,790 | ' | ' |
Long-term debt, less discount, and capital lease obligations | 744,286 | 553,009 | ' | ' |
Other liabilities and deferred credits: | ' | ' | ' | ' |
Accumulated pension and other postretirement benefit obligations | 264,106 | 352,460 | ' | ' |
Other liabilities and deferred credits | 59,424 | 37,963 | ' | ' |
Deferred tax liabilities, net | 40,950 | ' | ' | ' |
Total | 364,480 | 390,423 | ' | ' |
Shareholders' equity | 396,864 | 268,602 | 222,876 | 277,869 |
Total Liabilities and Shareholders' Equity | 2,164,261 | 1,865,824 | ' | ' |
Parent Issuer / Guarantor | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 84,797 | 83,626 | 97,219 | 19,967 |
Accounts receivable, net | 1,192 | 2,032 | ' | ' |
Deferred tax assets, net | ' | 704 | ' | ' |
Total | 85,989 | 86,362 | ' | ' |
Long-term prepayments and other | 1,171 | 1,695 | ' | ' |
Deferred tax assets, net | 14,767 | 8,439 | ' | ' |
Intercompany receivable | 25,286 | 33,110 | ' | ' |
Investment in consolidated subsidiaries | 348,040 | 213,275 | ' | ' |
Total Assets | 475,253 | 342,881 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 532 | 292 | ' | ' |
Other accrued liabilities | 1,307 | 1,310 | ' | ' |
Total | 1,839 | 1,602 | ' | ' |
Long-term debt, less discount, and capital lease obligations | 76,550 | 72,677 | ' | ' |
Other liabilities and deferred credits: | ' | ' | ' | ' |
Shareholders' equity | 396,864 | 268,602 | ' | ' |
Total Liabilities and Shareholders' Equity | 475,253 | 342,881 | ' | ' |
Reduction of investment in consolidated subsidiaries | ' | 29,015 | ' | ' |
Subsidiary Issuer / Guarantor | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 333,663 | 303,967 | 205,656 | 264,083 |
Restricted cash | 19,434 | 5,000 | ' | ' |
Accounts receivable, net | 73,241 | 78,949 | ' | ' |
Spare parts and supplies, net | 19,767 | 27,552 | ' | ' |
Deferred tax assets, net | 17,325 | 16,971 | ' | ' |
Prepaid expenses and other | 51,613 | 35,001 | ' | ' |
Total | 515,043 | 467,440 | ' | ' |
Property and equipment at cost | 1,629,517 | 1,299,757 | ' | ' |
Less accumulated depreciation and amortization | -327,102 | -249,495 | ' | ' |
Total | 1,302,415 | 1,050,262 | ' | ' |
Long-term prepayments and other | 90,782 | 53,934 | ' | ' |
Restricted cash | 1,566 | ' | ' | ' |
Deferred tax assets, net | ' | 27,937 | ' | ' |
Goodwill and other intangible assets, net | 130,603 | 133,243 | ' | ' |
Total Assets | 2,040,409 | 1,732,816 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 88,990 | 81,758 | ' | ' |
Air traffic liability | 407,359 | 386,677 | ' | ' |
Other accrued liabilities | 96,264 | 73,518 | ' | ' |
Current maturities of long-term debt and capital lease obligations | 62,187 | 108,232 | ' | ' |
Total | 654,800 | 650,185 | ' | ' |
Long-term debt, less discount, and capital lease obligations | 667,736 | 480,332 | ' | ' |
Intercompany payable | 25,286 | 33,110 | ' | ' |
Other liabilities and deferred credits: | ' | ' | ' | ' |
Accumulated pension and other postretirement benefit obligations | 264,106 | 352,460 | ' | ' |
Other liabilities and deferred credits | 59,424 | 37,963 | ' | ' |
Deferred tax liabilities, net | 55,717 | ' | ' | ' |
Total | 379,247 | 390,423 | ' | ' |
Shareholders' equity | 313,340 | 178,766 | ' | ' |
Total Liabilities and Shareholders' Equity | 2,040,409 | 1,732,816 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 4,924 | 18,287 | 1,240 | 987 |
Accounts receivable, net | 31 | 13 | ' | ' |
Prepaid expenses and other | 39 | ' | ' | ' |
Total | 4,994 | 18,300 | ' | ' |
Property and equipment at cost | 31,917 | 18,456 | ' | ' |
Total | 31,917 | 18,456 | ' | ' |
Total Assets | 36,911 | 36,756 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 484 | 278 | ' | ' |
Air traffic liability | 1,727 | 1,969 | ' | ' |
Total | 2,211 | 2,247 | ' | ' |
Other liabilities and deferred credits: | ' | ' | ' | ' |
Shareholders' equity | 34,700 | 34,509 | ' | ' |
Total Liabilities and Shareholders' Equity | 36,911 | 36,756 | ' | ' |
Eliminations | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Accounts receivable, net | -219 | -244 | ' | ' |
Total | -219 | -244 | ' | ' |
Deferred tax assets, net | -14,767 | ' | ' | ' |
Intercompany receivable | -25,286 | -33,110 | ' | ' |
Investment in consolidated subsidiaries | -348,040 | -213,275 | ' | ' |
Total Assets | -388,312 | -246,629 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | -219 | -244 | ' | ' |
Total | -219 | -244 | ' | ' |
Intercompany payable | -25,286 | -33,110 | ' | ' |
Other liabilities and deferred credits: | ' | ' | ' | ' |
Deferred tax liabilities, net | -14,767 | ' | ' | ' |
Total | -14,767 | ' | ' | ' |
Shareholders' equity | -348,040 | -213,275 | ' | ' |
Total Liabilities and Shareholders' Equity | ($388,312) | ($246,629) | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' |
Net Cash Provided By (Used In) Operating Activities: | $243,270 | $311,017 | $178,764 |
Cash Flows From Investing Activities: | ' | ' | ' |
Additions to property and equipment, including pre-delivery deposits | -342,228 | -290,699 | -281,903 |
Proceeds from disposition of property and equipment | 14,414 | ' | ' |
Net cash used in investing activities | -327,814 | -290,699 | -281,903 |
Cash Flows From Financing Activities: | ' | ' | ' |
Proceeds from exercise of stock options | 2,376 | 1,488 | 226 |
Convertible Notes: | ' | ' | ' |
Issuance of convertible notes | ' | ' | 86,250 |
Purchase of call options and sale of common stock warrants, net | ' | ' | -19,504 |
Proceeds from issuance of warrants | ' | ' | 11,948 |
Long-term borrowings | 243,110 | 133,000 | 132,000 |
Repayments of long-term debt and capital lease obligations | -113,592 | -49,129 | -80,023 |
Debt issuance costs | -13,846 | -3,828 | -8,726 |
Change in cash collateral for EETC financing | -16,000 | ' | ' |
Other | ' | -84 | 46 |
Net cash provided by financing activities | 102,048 | 81,447 | 122,217 |
Net increase in cash and cash equivalents | 17,504 | 101,765 | 19,078 |
Cash and cash equivalents - Beginning of Year | 405,880 | 304,115 | 285,037 |
Cash and cash equivalents - End of Year | 423,384 | 405,880 | 304,115 |
Parent Issuer / Guarantor | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' |
Net Cash Provided By (Used In) Operating Activities: | -8,088 | 10,669 | -7,954 |
Cash Flows From Investing Activities: | ' | ' | ' |
Net payments from (to) subsidiaries | 6,883 | -25,750 | 9,676 |
Net cash used in investing activities | 6,883 | -25,750 | 9,676 |
Cash Flows From Financing Activities: | ' | ' | ' |
Proceeds from exercise of stock options | 2,376 | 1,488 | 226 |
Convertible Notes: | ' | ' | ' |
Issuance of convertible notes | ' | ' | 86,250 |
Purchase of call options and sale of common stock warrants, net | ' | ' | -19,504 |
Proceeds from issuance of warrants | ' | ' | 11,948 |
Debt issuance costs | ' | ' | -3,390 |
Net cash provided by financing activities | 2,376 | 1,488 | 75,530 |
Net increase in cash and cash equivalents | 1,171 | -13,593 | 77,252 |
Cash and cash equivalents - Beginning of Year | 83,626 | 97,219 | 19,967 |
Cash and cash equivalents - End of Year | 84,797 | 83,626 | 97,219 |
Subsidiary Issuer / Guarantor | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' |
Net Cash Provided By (Used In) Operating Activities: | 251,260 | 299,845 | 186,465 |
Cash Flows From Investing Activities: | ' | ' | ' |
Additions to property and equipment, including pre-delivery deposits | -328,767 | -272,243 | -281,903 |
Proceeds from disposition of property and equipment | 14,414 | ' | ' |
Net cash used in investing activities | -314,353 | -272,243 | -281,903 |
Convertible Notes: | ' | ' | ' |
Long-term borrowings | 243,110 | 133,000 | 132,000 |
Repayments of long-term debt and capital lease obligations | -113,592 | -49,129 | -80,023 |
Debt issuance costs | -13,846 | -3,828 | -5,336 |
Net payments from (to) parent company | -6,883 | -9,250 | -9,676 |
Change in cash collateral for EETC financing | -16,000 | ' | ' |
Other | ' | -84 | 46 |
Net cash provided by financing activities | 92,789 | 70,709 | 37,011 |
Net increase in cash and cash equivalents | 29,696 | 98,311 | -58,427 |
Cash and cash equivalents - Beginning of Year | 303,967 | 205,656 | 264,083 |
Cash and cash equivalents - End of Year | 333,663 | 303,967 | 205,656 |
Non-Guarantor Subsidiaries | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' |
Net Cash Provided By (Used In) Operating Activities: | 98 | 503 | 253 |
Cash Flows From Investing Activities: | ' | ' | ' |
Additions to property and equipment, including pre-delivery deposits | -13,461 | -18,456 | ' |
Net cash used in investing activities | -13,461 | -18,456 | ' |
Convertible Notes: | ' | ' | ' |
Net payments from (to) parent company | ' | 35,000 | ' |
Net cash provided by financing activities | ' | 35,000 | ' |
Net increase in cash and cash equivalents | -13,363 | 17,047 | 253 |
Cash and cash equivalents - Beginning of Year | 18,287 | 1,240 | 987 |
Cash and cash equivalents - End of Year | 4,924 | 18,287 | 1,240 |
Eliminations | ' | ' | ' |
Cash Flows From Investing Activities: | ' | ' | ' |
Net payments from (to) subsidiaries | -6,883 | 25,750 | -9,676 |
Net cash used in investing activities | -6,883 | 25,750 | -9,676 |
Convertible Notes: | ' | ' | ' |
Net payments from (to) parent company | 6,883 | -25,750 | 9,676 |
Net cash provided by financing activities | $6,883 | ($25,750) | $9,676 |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information (Details 4) (Hawaiian, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Hawaiian | ' | ' |
Certain Restrictions on Subsidiary Distributions, Dividends and Repurchases | ' | ' |
Maximum customary costs and expenses of operating a publicly traded company | $10 | ' |
Restricted net assets | $313.30 | $178.80 |
Supplemental_Financial_Informa2
Supplemental Financial Information (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Supplementary Financial Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenue | $531,885,000 | $599,298,000 | $533,928,000 | $490,754,000 | $492,986,000 | $549,322,000 | $484,551,000 | $435,494,000 | $2,155,865,000 | $1,962,353,000 | $1,650,459,000 |
Operating income (loss) | 33,848,000 | 74,434,000 | 37,391,000 | -11,926,000 | 12,237,000 | 74,933,000 | 29,328,000 | 12,900,000 | 133,747,000 | 129,398,000 | 20,283,000 |
Nonoperating loss | -5,692,000 | -7,016,000 | -19,176,000 | -15,453,000 | -18,422,000 | -1,130,000 | -23,019,000 | -1,041,000 | -47,337,000 | -43,612,000 | -21,365,000 |
Net income (loss) | 17,079,000 | 40,604,000 | 11,316,000 | -17,145,000 | -3,408,000 | 45,483,000 | 3,904,000 | 7,258,000 | 51,854,000 | 53,237,000 | -2,649,000 |
Net income (loss) per common stock share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.33 | $0.78 | $0.22 | ($0.33) | ($0.07) | $0.88 | $0.08 | $0.14 | $1 | $1.04 | ($0.05) |
Diluted (in dollars per share) | $0.31 | $0.76 | $0.21 | ($0.33) | ($0.07) | $0.86 | $0.07 | $0.14 | $0.98 | $1.01 | ($0.05) |
Adjustment for accounting of sale of mileage credits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net frequent flyer pre-tax adjustment | ' | ' | ' | ' | $7,300,000 | ' | ' | ' | ' | ' | ' |
Deferral period, before error correction adjustment | ' | ' | ' | ' | '19 months | ' | ' | ' | ' | ' | ' |
Deferral period, after error correction adjustment | ' | ' | ' | ' | '22 months | ' | ' | ' | ' | ' | ' |
Schedule_IIValuation_and_Quali1
Schedule II-Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts | ' | ' | ' |
Movement in valuation and qualifying accounts | ' | ' | ' |
Balance at Beginning of Year | $371 | $630 | $744 |
Charged to Costs and Expenses | 292 | 185 | 1,491 |
Deductions | -562 | -444 | -1,605 |
Balance at End of Year | 101 | 371 | 630 |
Allowance for Obsolescence of Flight Equipment Expendable Parts and Supplies | ' | ' | ' |
Movement in valuation and qualifying accounts | ' | ' | ' |
Balance at Beginning of Year | 10,963 | 8,824 | 6,979 |
Charged to Costs and Expenses | 2,471 | 2,388 | 2,056 |
Deductions | -633 | -249 | -211 |
Balance at End of Year | $12,801 | $10,963 | $8,824 |