Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 17, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'HAWAIIAN HOLDINGS INC | ' |
Entity Central Index Key | '0001172222 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 54,023,742 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating Revenue: | ' | ' | ' | ' |
Passenger | $566,985 | $543,315 | $1,541,795 | $1,464,715 |
Other | 72,477 | 55,983 | 198,245 | 159,265 |
Total | 639,462 | 599,298 | 1,740,040 | 1,623,980 |
Operating Expenses: | ' | ' | ' | ' |
Aircraft fuel, including taxes and delivery | 182,219 | 181,334 | 527,497 | 525,046 |
Wages and benefits | 114,469 | 112,150 | 334,441 | 318,269 |
Aircraft rent | 26,724 | 27,575 | 79,098 | 81,879 |
Maintenance materials and repairs | 51,293 | 51,705 | 168,002 | 160,000 |
Aircraft and passenger servicing | 31,848 | 31,080 | 92,929 | 89,367 |
Commissions and other selling | 32,015 | 32,288 | 94,123 | 98,285 |
Depreciation and amortization | 24,384 | 22,092 | 70,960 | 60,993 |
Other rentals and landing fees | 23,637 | 21,996 | 65,855 | 60,773 |
Other | 46,704 | 44,644 | 139,335 | 129,469 |
Total | 533,293 | 524,864 | 1,572,240 | 1,524,081 |
Operating Income | 106,169 | 74,434 | 167,800 | 99,899 |
Nonoperating Income (Expense): | ' | ' | ' | ' |
Interest expense and amortization of debt discounts and issuance costs | -17,104 | -13,479 | -48,111 | -37,019 |
Interest income | 471 | 173 | 1,088 | 426 |
Capitalized interest | 1,834 | 3,005 | 6,584 | 9,336 |
Gains (losses) on fuel derivatives | -27,892 | 2,536 | -28,506 | -10,931 |
Other, net | -5,114 | 749 | -3,804 | -3,457 |
Total | -47,805 | -7,016 | -72,749 | -41,645 |
Income Before Income Taxes | 58,364 | 67,418 | 95,051 | 58,254 |
Income tax expense | 22,789 | 26,814 | 37,224 | 23,479 |
Net Income | $35,575 | $40,604 | $57,827 | $34,775 |
Net Income Per Common Stock | ' | ' | ' | ' |
Basic (in dollars per share) | $0.66 | $0.78 | $1.08 | $0.67 |
Diluted (in dollars per share) | $0.56 | $0.76 | $0.94 | $0.65 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net Income | $35,575 | $40,604 | $57,827 | $34,775 |
Other comprehensive income (loss), net: | ' | ' | ' | ' |
Net change related to employee benefit plans | 44 | 1,381 | 389 | 3,347 |
Net change in derivative instruments | 7,081 | -4,465 | -1,726 | 2,991 |
Net change in available-for-sale investments | -90 | 0 | -55 | 0 |
Total other comprehensive income (loss) | 7,035 | -3,084 | -1,392 | 6,338 |
Total Comprehensive Income | $42,610 | $37,520 | $56,435 | $41,113 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net change related to employee benefit plans, tax | $3 | $899 | $213 | $3,034 |
Net change in derivative instruments, tax (benefit) expense | 4,308 | -2,610 | -1,045 | 1,942 |
Net change in available-for-sale investments, tax (benefit) | ($54) | $0 | ($33) | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $328,255 | $423,384 |
Restricted cash | 6,566 | 19,434 |
Short-term investments | 253,300 | 0 |
Accounts receivable, net | 82,902 | 74,245 |
Spare parts and supplies, net | 20,287 | 19,767 |
Deferred tax assets, net | 17,325 | 17,325 |
Prepaid expenses and other | 47,677 | 51,652 |
Total | 756,312 | 605,807 |
Property and equipment, less accumulated depreciation and amortization of $344,727 and $327,102 as of September 30, 2014 and December 31, 2013, respectively | 1,630,978 | 1,334,332 |
Other Assets: | ' | ' |
Long-term prepayments and other | 99,323 | 91,953 |
Restricted cash | 0 | 1,566 |
Intangible assets, less accumulated amortization of $33,774 and $175,730 as of September 30, 2014 and December 31, 2013, respectively | 21,960 | 23,940 |
Goodwill | 106,663 | 106,663 |
Total Assets | 2,615,236 | 2,164,261 |
Current Liabilities: | ' | ' |
Accounts payable | 78,350 | 89,787 |
Air traffic liability | 487,525 | 409,086 |
Other accrued liabilities | 114,717 | 97,571 |
Current maturities of long-term debt, less discount, and capital lease obligations | 171,054 | 62,187 |
Total | 851,646 | 658,631 |
Long-Term Debt, less discount, and Capital Lease Obligations | 885,486 | 744,286 |
Other Liabilities and Deferred Credits: | ' | ' |
Accumulated pension and other postretirement benefit obligations | 268,703 | 264,106 |
Other liabilities and deferred credits | 70,129 | 59,424 |
Deferred tax liability, net | 78,513 | 40,950 |
Total | 417,345 | 364,480 |
Commitments and Contingencies | ' | ' |
Shareholders’ Equity: | ' | ' |
Special preferred stock, $0.01 par value per share, three shares issued and outstanding as of September 30, 2014 and December 31, 2013 | ' | ' |
Common stock, $0.01 par value per share, 54,007,425 and 52,423,085 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively | 540 | 524 |
Capital in excess of par value | 277,328 | 269,884 |
Accumulated income | 226,969 | 169,142 |
Accumulated other comprehensive loss, net | -44,078 | -42,686 |
Total | 460,759 | 396,864 |
Total Liabilities and Shareholders’ Equity | $2,615,236 | $2,164,261 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Property and equipment, accumulated depreciation and amortization | $344,727 | $327,102 |
Intangible assets, accumulated amortization (in dollars) | $33,774 | $175,730 |
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 | 54,007,425 | 52,423,085 |
Common stock, shares outstanding | 54,007,425 | 52,423,085 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Net cash provided by Operating Activities | $252,163 | $207,475 |
Cash flows from Investing Activities: | ' | ' |
Additions to property and equipment, including pre-delivery payments, net | -361,290 | -232,717 |
Net proceeds from disposition of equipment | 978 | 0 |
Purchases of investments | -346,010 | 0 |
Sales of investments | 92,103 | 0 |
Net cash used in investing activities | -614,219 | -232,717 |
Cash flows from Financing Activities: | ' | ' |
Proceeds from exercise of stock options | 5,487 | 2,376 |
Long-term borrowings | 293,430 | 132,000 |
Repayments of long-term debt and capital lease obligations | -46,392 | -45,200 |
Debt issuance costs | -32 | -12,416 |
Change in restricted cash | 14,434 | -16,000 |
Net cash provided by financing activities | 266,927 | 60,760 |
Net increase (decrease) in cash and cash equivalents | -95,129 | 35,518 |
Cash and cash equivalents - Beginning of Period | 423,384 | 405,880 |
Cash and cash equivalents - End of Period | $328,255 | $441,398 |
Business_and_Basis_of_Presenta
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Business and Basis of Presentation | ' |
Business and Basis of Presentation | |
Hawaiian Holdings, Inc. (the Company or Holdings) is a holding company 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 Airlines, Inc. (Hawaiian). The accompanying unaudited financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (SEC). Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements contain all adjustments, including normal recurring adjustments, necessary for the fair presentation of the Company’s results of operations and financial position for the periods presented. Due to seasonal fluctuations, among other factors common to the airline industry, the results of operations for the periods presented are not necessarily indicative of the results of operations to be expected for the entire year. The accompanying unaudited Consolidated Financial Statements should be read in conjunction with the financial statements and the notes of the Company included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
Sale of Frequent Flyer Miles | |
In October 2013, Hawaiian entered into a co-branded credit card agreement, which provides for the sale of frequent flyer miles to Barclays Bank Delaware (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 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. | |
The following four deliverables or elements were identified in the agreement: (i) travel miles; (ii) use of the Hawaiian brand and access to member lists; (iii) advertising elements; and (iv) other airline benefits including checked baggage services and travel discounts. The Company determined the relative fair value of each element by estimating the selling prices of the deliverables by considering discounted cash flows using multiple inputs and assumptions, including: (1) the expected number of miles to be awarded and redeemed; (2) the estimated weighted average equivalent ticket value, adjusted by a fulfillment discount; (3) the estimated total annual cardholder spend; (4) an estimated royalty rate for the Hawaiian portfolio; and (5) the expected use of each of the airline benefits. The overall consideration received is allocated to the deliverables based on their relative selling prices. The transportation element will be deferred and recognized as passenger revenue over the period when the transportation is expected to be provided (22 months). The other elements will generally be recognized as other revenue when earned. | |
In the previous co-branded credit card agreement, the estimated fair value of the transportation element was deferred and recognized as passenger revenue over a period of 22 months. Amounts received in excess of the transportation’s estimated fair value were recognized immediately as other revenue. | |
The impact of applying the new accounting method for the three and nine months ended September 30, 2014 was immaterial to the Company’s unaudited consolidated financial statements. | |
Recently Issued Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. Early adoption is not permitted. The amendments in ASU 2014-09 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company is currently evaluating the effect that the provisions of ASU 2014-09 will have on its consolidated financial statements and related disclosures. |
ShortTerm_Investments
Short-Term Investments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Short-term investments | ' | ||||||||||||||||
Short-Term Investments | |||||||||||||||||
Debt securities that are not classified as cash equivalents are classified as available-for-sale investments and are stated at fair value. Realized gains and losses on sales of investments are reflected in nonoperating income (expense) in the unaudited consolidated statements of operations. Unrealized gains and losses on available-for-sale securities are reflected as a component of accumulated other comprehensive loss. | |||||||||||||||||
The following is a summary of short-term investments held as of September 30, 2014: | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gains | Losses | ||||||||||||||||
(in thousands) | |||||||||||||||||
Corporate debt | $ | 184,141 | $ | 91 | $ | (193 | ) | $ | 184,039 | ||||||||
U.S. government and agency debt | 23,797 | 11 | (2 | ) | 23,806 | ||||||||||||
Municipal bonds | 22,924 | 7 | (4 | ) | 22,927 | ||||||||||||
Other fixed income securities | 22,533 | — | (5 | ) | 22,528 | ||||||||||||
Total short-term investments | $ | 253,395 | $ | 109 | $ | (204 | ) | $ | 253,300 | ||||||||
Contractual maturities of short-term investments as of September 30, 2014 are shown below. | |||||||||||||||||
Under 1 Year | 1 to 5 Years | Total | |||||||||||||||
(in thousands) | |||||||||||||||||
Corporate debt | $ | 80,081 | $ | 103,958 | $ | 184,039 | |||||||||||
U.S. government and agency debt | 16,325 | 7,481 | 23,806 | ||||||||||||||
Municipal bonds | 8,244 | 14,683 | 22,927 | ||||||||||||||
Other fixed income securities | 22,528 | — | 22,528 | ||||||||||||||
Total short-term investments | $ | 127,178 | $ | 126,122 | $ | 253,300 | |||||||||||
The Company classifies investments as current assets as these securities are available for use in its current operations. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||
Reclassifications out of accumulated other comprehensive loss by component is as follows: | |||||||||||||||||||||
Details about accumulated other | Three months ended September 30, | Nine months ended September 30, | Affected line items | ||||||||||||||||||
comprehensive loss components | in the statement where | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | net income (loss) is presented | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815 | |||||||||||||||||||||
Foreign currency derivative gains, net | $ | (1,297 | ) | $ | (3,005 | ) | $ | (6,523 | ) | $ | (6,395 | ) | Passenger revenue | ||||||||
Interest rate derivative losses, net | 201 | 217 | 618 | 440 | Interest expense | ||||||||||||||||
Total before tax | (1,096 | ) | (2,788 | ) | (5,905 | ) | (5,955 | ) | |||||||||||||
Tax expense | 424 | 1,025 | 2,239 | 2,226 | |||||||||||||||||
Total, net of tax | $ | (672 | ) | $ | (1,763 | ) | $ | (3,666 | ) | $ | (3,729 | ) | |||||||||
Amortization of defined benefit pension items | |||||||||||||||||||||
Actuarial loss (gain) | $ | (64 | ) | $ | 2,281 | $ | 388 | $ | 6,384 | Wages and benefits | |||||||||||
Prior service cost (credit) | 113 | (1 | ) | 111 | (3 | ) | Wages and benefits | ||||||||||||||
Total before tax | 49 | 2,280 | 499 | 6,381 | |||||||||||||||||
Tax benefit | (5 | ) | (899 | ) | (215 | ) | (3,034 | ) | |||||||||||||
Total, net of tax | $ | 44 | $ | 1,381 | $ | 284 | $ | 3,347 | |||||||||||||
Short-term investments | |||||||||||||||||||||
Realized gain on sales of investments, net | $ | (10 | ) | $ | — | $ | (12 | ) | $ | — | Other nonoperating income | ||||||||||
Total before tax | (10 | ) | — | (12 | ) | — | |||||||||||||||
Tax expense | 1 | — | 1 | — | |||||||||||||||||
Total, net of tax | $ | (9 | ) | $ | — | $ | (11 | ) | $ | — | |||||||||||
Total reclassifications for the period | $ | (637 | ) | $ | (382 | ) | $ | (3,393 | ) | $ | (382 | ) | |||||||||
A rollforward of the amounts included in accumulated other comprehensive loss, net of taxes, for the three and nine months ended September 30, 2014 and 2013 is as follows: | |||||||||||||||||||||
Three months ended September 30, 2014 | Interest | Foreign | Defined | Short-Term Investments | Total | ||||||||||||||||
Rate | Currency | Benefit | |||||||||||||||||||
Derivatives | Derivatives | Pension | |||||||||||||||||||
Items | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Beginning balance | $ | 471 | $ | 95 | $ | (51,714 | ) | $ | 35 | $ | (51,113 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax | 39 | 7,714 | — | (81 | ) | 7,672 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 121 | (793 | ) | 44 | (9 | ) | (637 | ) | |||||||||||||
Net current-period other comprehensive income (loss) | 160 | 6,921 | 44 | (90 | ) | 7,035 | |||||||||||||||
Ending balance | $ | 631 | $ | 7,016 | $ | (51,670 | ) | $ | (55 | ) | $ | (44,078 | ) | ||||||||
Three months ended September 30, 2013 | Interest | Foreign | Defined | Total | |||||||||||||||||
Rate | Currency | Benefit | |||||||||||||||||||
Derivatives | Derivatives | Pension | |||||||||||||||||||
Items | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Beginning balance | $ | 766 | $ | 6,690 | $ | (112,088 | ) | $ | (104,632 | ) | |||||||||||
Other comprehensive loss before reclassifications, net of tax | (220 | ) | (2,482 | ) | — | (2,702 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 135 | (1,898 | ) | 1,381 | (382 | ) | |||||||||||||||
Net current-period other comprehensive income (loss) | (85 | ) | (4,380 | ) | 1,381 | (3,084 | ) | ||||||||||||||
Ending balance | $ | 681 | $ | 2,310 | $ | (110,707 | ) | $ | (107,716 | ) | |||||||||||
Nine months ended September 30, 2014 | Interest | Foreign | Defined | Short-Term Investments | Total | ||||||||||||||||
Rate | Currency | Benefit | |||||||||||||||||||
Derivatives | Derivatives | Pension | |||||||||||||||||||
Items | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Beginning balance | $ | 1,096 | $ | 8,277 | $ | (52,059 | ) | $ | — | $ | (42,686 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax | (844 | ) | 2,784 | 105 | (44 | ) | 2,001 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 379 | (4,045 | ) | 284 | (11 | ) | (3,393 | ) | |||||||||||||
Net current-period other comprehensive income (loss) | (465 | ) | (1,261 | ) | 389 | (55 | ) | (1,392 | ) | ||||||||||||
Ending balance | $ | 631 | $ | 7,016 | $ | (51,670 | ) | $ | (55 | ) | $ | (44,078 | ) | ||||||||
Nine months ended September 30, 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 | 409 | 6,311 | — | 6,720 | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 272 | (4,001 | ) | 3,347 | (382 | ) | |||||||||||||||
Net current-period other comprehensive income | 681 | 2,310 | 3,347 | 6,338 | |||||||||||||||||
Ending balance | $ | 681 | $ | 2,310 | $ | (110,707 | ) | $ | (107,716 | ) | |||||||||||
Earning_Per_Share
Earning Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earning Per Share | ' | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
Basic earnings per share, which excludes dilution, is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. | |||||||||||||||||
Diluted earnings 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. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands, except for per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net Income | $ | 35,575 | $ | 40,604 | $ | 57,827 | $ | 34,775 | |||||||||
Denominator: | |||||||||||||||||
Weighted average common stock shares outstanding - Basic | 53,878 | 52,303 | 53,359 | 51,994 | |||||||||||||
Assumed exercise of stock options and awards | 848 | 1,209 | 1,061 | 1,166 | |||||||||||||
Assumed conversion of convertible note premium | 4,965 | — | 4,498 | — | |||||||||||||
Assumed conversion of warrants | 3,359 | — | 2,767 | — | |||||||||||||
Weighted average common stock shares outstanding - Diluted | 63,050 | 53,512 | 61,685 | 53,160 | |||||||||||||
Net Income per common share | |||||||||||||||||
Basic | $ | 0.66 | $ | 0.78 | $ | 1.08 | $ | 0.67 | |||||||||
Diluted | $ | 0.56 | $ | 0.76 | $ | 0.94 | $ | 0.65 | |||||||||
The table below summarizes those common stock equivalents that could potentially dilute basic earnings per share in the future but were excluded from the computation of diluted earnings per share because the instruments were antidilutive. | |||||||||||||||||
Three Months Ended September 30, | Nine months ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Stock options | — | — | — | 522 | |||||||||||||
Deferred stock | — | — | — | 58 | |||||||||||||
Restricted stock | 7 | 1,031 | 2 | 1,494 | |||||||||||||
Convertible note premium | — | 10,943 | — | 10,943 | |||||||||||||
Warrants | — | 10,943 | — | 10,943 | |||||||||||||
In March 2011, the Company entered into a convertible note transaction which included the sale of convertible notes, purchase of call options and sale of warrants. The Company’s 5% Convertible Notes due in 2016 (the "Convertible Notes") 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 Convertible Notes could be converted will not impact the dilutive earnings per share calculation in the current and future periods under the if-converted method, as the Company has the intent and ability to redeem the principal amount of the Convertible Notes with cash. During the three and nine months ended September 30, 2014 the average share price of the Company’s common stock exceeded the conversion price of $7.88 per share, therefore shares related to the conversion premium of the Convertible Notes (for which share settlement is assumed for EPS purposes) are included in the Company's computation of diluted earnings per share. | |||||||||||||||||
In connection with the issuance of the Convertible Notes, the Company entered into separate call option transactions and separate warrant transactions 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 call options to repurchase the Company’s common stock will always be antidilutive and, therefore, will have no effect on diluted earnings per share and are excluded from the table above. | |||||||||||||||||
During the three and nine months ended September 30, 2014 the average share price of the Company's common stock exceeded the warrant strike price of $10.00 per share, therefore the assumed conversion of the warrants are included in the Company's computation of diluted earnings per share. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||
ASC Topic 820, Fair Value Measurement (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 for 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 September 30, 2014 | |||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 155,967 | $ | 152,967 | $ | 3,000 | $ | — | |||||||||||||||||||||||||||||||
Restricted cash | 6,566 | 6,566 | — | — | |||||||||||||||||||||||||||||||||||
Short-term investments | 253,300 | — | 253,300 | — | |||||||||||||||||||||||||||||||||||
Fuel derivative contracts: | 0 | ||||||||||||||||||||||||||||||||||||||
Crude oil call options | 50 | — | 50 | — | |||||||||||||||||||||||||||||||||||
Crude oil put options | 4 | — | 4 | — | |||||||||||||||||||||||||||||||||||
Heating oil put options | 845 | — | 845 | — | |||||||||||||||||||||||||||||||||||
Foreign currency derivatives | 11,851 | — | 11,851 | — | |||||||||||||||||||||||||||||||||||
Interest rate derivative | 452 | — | 452 | — | |||||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 429,035 | $ | 159,533 | $ | 269,502 | $ | — | |||||||||||||||||||||||||||||||
Fuel derivative contracts: | |||||||||||||||||||||||||||||||||||||||
Crude oil call options | $ | 50 | $ | — | $ | 50 | $ | — | |||||||||||||||||||||||||||||||
Crude oil put options | 4 | — | 4 | — | |||||||||||||||||||||||||||||||||||
Heating oil swaps | 19,515 | — | 19,515 | — | |||||||||||||||||||||||||||||||||||
Foreign currency derivatives | 118 | — | 118 | — | |||||||||||||||||||||||||||||||||||
Negative arbitrage derivative | 500 | — | — | 500 | |||||||||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 20,187 | $ | — | $ | 19,687 | $ | 500 | |||||||||||||||||||||||||||||||
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: | 0 | ||||||||||||||||||||||||||||||||||||||
Crude oil call options | 7,121 | — | 7,121 | — | |||||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||||||||
Crude oil call options | $ | 7,121 | $ | — | $ | 7,121 | $ | — | |||||||||||||||||||||||||||||||
Crude oil put options | 186 | — | 186 | — | |||||||||||||||||||||||||||||||||||
Heating oil swaps | 187 | — | 187 | — | |||||||||||||||||||||||||||||||||||
Foreign currency derivatives | 1,188 | — | 1,188 | — | |||||||||||||||||||||||||||||||||||
Negative arbitrage derivative | 12,865 | — | — | 12,865 | |||||||||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 21,547 | $ | — | $ | 8,682 | $ | 12,865 | |||||||||||||||||||||||||||||||
Cash equivalents. The Company’s cash equivalents consist of money market securities, U.S. agency bonds, foreign and domestic corporate bonds, and commercial paper. The instruments classified as Level 2 are valued using quoted prices for similar assets in active markets. | |||||||||||||||||||||||||||||||||||||||
Restricted cash. The Company’s restricted cash consist of money market securities. | |||||||||||||||||||||||||||||||||||||||
Short-term investments. Short-term investments include U.S. and foreign government notes and bonds, U.S. agency bonds, variable rate corporate bonds, asset backed securities, foreign and domestic corporate bonds, municipal bonds, and commercial paper. These instruments are valued using quoted prices for similar assets in active markets or other observable inputs. | |||||||||||||||||||||||||||||||||||||||
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 are 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 and Australian 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 arbitrage derivative (refer to Notes 7 and 10 for more information). | |||||||||||||||||||||||||||||||||||||||
The table below presents disclosures about the activity for the Company’s “Level 3” financial liability during the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,668 | $ | 12,865 | $ | 12,865 | $ | — | |||||||||||||||||||||||||||||||
Issuance of enhanced equipment trust certificates | — | — | — | 12,865 | |||||||||||||||||||||||||||||||||||
Reduction of balance in connection with interest payment | (3,168 | ) | — | (12,365 | ) | — | |||||||||||||||||||||||||||||||||
Ending balance | $ | 500 | $ | 12,865 | $ | 500 | $ | 12,865 | |||||||||||||||||||||||||||||||
The table below presents the Company’s debt (excluding obligations under capital leases) measured at fair value: | |||||||||||||||||||||||||||||||||||||||
Fair Value of Debt | |||||||||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||||||||||
$ | 952,467 | $ | 1,030,224 | $ | — | $ | 142,071 | $ | 888,153 | $ | 695,804 | $ | 738,563 | $ | — | $ | 104,656 | $ | 633,907 | ||||||||||||||||||||
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, other receivables and accounts payable approximate fair value due to the short-term nature of these financial instruments. |
Financial_Derivative_Instrumen
Financial Derivative Instruments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
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 fuel prices, interest rates and foreign currencies. | |||||||||||||||||||||||||
In addition, 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. During the three and nine months ended September 30, 2014, the Company primarily used heating oil puts and swaps to hedge its aircraft fuel expense. 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 unaudited Consolidated Statements of Operations. | |||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||
Fuel derivative contracts | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Losses realized at settlement | $ | (4,632 | ) | $ | (3,790 | ) | $ | (6,530 | ) | $ | (11,226 | ) | |||||||||||||
Reversal of prior period unrealized amounts | 56 | 4,278 | (1,816 | ) | 5,472 | ||||||||||||||||||||
Unrealized gains (losses) that will settle in future periods | (23,316 | ) | 2,048 | (20,160 | ) | (5,177 | ) | ||||||||||||||||||
Gains (losses) on fuel derivatives recorded as Nonoperating income (expense) | $ | (27,892 | ) | $ | 2,536 | $ | (28,506 | ) | $ | (10,931 | ) | ||||||||||||||
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. | |||||||||||||||||||||||||
To limit the Company’s exposure to interest rate risk inherent in one of its variable-rate debt instruments, which was used to finance an aircraft delivered in 2013, the Company entered into a forward starting interest rate swap agreement. The interest rate swap agreement is designated as a cash flow hedge under ASC 815. | |||||||||||||||||||||||||
The Company believes that its interest rate derivative contract will continue to be effective in offsetting changes in cash flow attributable to the hedged risk. The Company reclassified $0.2 million and $0.6 million in net losses from AOCI to interest expense during the three and nine months ended September 30, 2014, respectively. The Company expects to reclassify a net loss of approximately $0.7 million into earnings over the next 12 months from AOCI based on the values at September 30, 2014. | |||||||||||||||||||||||||
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, certain of which are 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 of designated cash flow hedges 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). Foreign currency forward contracts that are not designated as cash flow hedges are recorded at fair value, and any changes in fair value are recognized as other nonoperating income (expense) in the period of change. | |||||||||||||||||||||||||
The Company believes that its foreign currency forward contracts that are designated as cash flow hedges will continue to be effective in offsetting changes in cash flow attributable to the hedged risk. The Company reclassified $1.3 million and $6.5 million in gains from AOCI to passenger revenue during the three and nine months ended September 30, 2014, respectively. The Company expects to reclassify a net gain of approximately $8.1 million into earnings over the next 12 months from AOCI based on the values at September 30, 2014. | |||||||||||||||||||||||||
Negative Arbitrage Derivative | |||||||||||||||||||||||||
In 2013, the Company created two pass-through trusts, which issued $444.5 million aggregate principal amount of EETCs. See Note 10 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 unaudited consolidated financial statements. During the three and nine months ended September 30, 2014, approximately $3.2 million and $12.4 million of the derivative was reduced in connection with the interest payments made to the trusts, respectively. | |||||||||||||||||||||||||
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 unaudited Consolidated Balance Sheets. | |||||||||||||||||||||||||
Derivative position as of September 30, 2014 | |||||||||||||||||||||||||
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 | $59,000 U.S. dollars | April 2023 | $ | 73 | $ | — | $ | 73 | ||||||||||||||||
Long-term prepayments and other (1) | 379 | — | 379 | ||||||||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 7,218,469 Japanese Yen | Sep-15 | 7,448 | (14 | ) | 7,434 | ||||||||||||||||||
52,209 Australian Dollars | |||||||||||||||||||||||||
Long-term prepayments and other | 3,384,130 Japanese Yen | Aug-16 | 2,514 | — | 2,514 | ||||||||||||||||||||
9,707 Australian Dollars | |||||||||||||||||||||||||
Derivatives not designated as hedges | 0 | ||||||||||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 9,415,313 Japanese Yen | Sep-15 | 1,529 | (104 | ) | 1,425 | ||||||||||||||||||
48,981 Australian Dollars | |||||||||||||||||||||||||
Long-term prepayments and other | 3,910,000 Japanese Yen | August 2016 | 360 | — | 360 | ||||||||||||||||||||
9,700 Australian Dollars | |||||||||||||||||||||||||
Fuel derivative contracts | Other accrued liabilities | 93,211 gallons | Sep-15 | 899 | (19,569 | ) | (18,670 | ) | |||||||||||||||||
Negative arbitrage derivative | Other accrued liabilities | $444,540 U.S. dollars | January 2015 | — | (500 | ) | (500 | ) | |||||||||||||||||
-1 | Represents the noncurrent portion of the $59.0 million interest rate derivative with final maturity in April 2023. | ||||||||||||||||||||||||
Derivative position 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 | April 2023 | $ | 196 | $ | — | $ | 196 | ||||||||||||||||
Long-term prepayments and other (1) | 925 | — | 925 | ||||||||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 10,500,321 Japanese Yen | December | 9,946 | (450 | ) | 9,496 | ||||||||||||||||||
10,895,370 Korean Won | 2014 | ||||||||||||||||||||||||
62,659 Australian Dollars | |||||||||||||||||||||||||
4,821 New Zealand Dollars | |||||||||||||||||||||||||
Long-term prepayments and other | 1,980,949 Japanese Yen | May 2015 | 1,673 | — | 1,673 | ||||||||||||||||||||
16,681 Australian Dollars | |||||||||||||||||||||||||
Derivatives not designated as hedges | |||||||||||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 6,180 Japanese Yen | December | 577 | (229 | ) | 348 | ||||||||||||||||||
58 Australian Dollars | 2014 | ||||||||||||||||||||||||
Other accrued liabilities | 298 | (509 | ) | (211 | ) | ||||||||||||||||||||
Fuel derivative contracts | Prepaid expenses and other | 84,714 gallons | December | 13,587 | (7,494 | ) | 6,093 | ||||||||||||||||||
2014 | |||||||||||||||||||||||||
Negative arbitrage derivative | Other accrued liabilities | $444,540 U.S. dollars | January | — | (12,250 | ) | (12,250 | ) | |||||||||||||||||
2015 | |||||||||||||||||||||||||
Other liabilities and deferred credits (2) | — | (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 $445 million negative arbitrage derivative with final maturity in January 2015. | |||||||||||||||||||||||||
The following table reflects the impact of cash flow hedges designated for hedge accounting treatment and their location within the unaudited Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||||
(Gain) loss recognized in AOCI on derivatives (effective portion) | (Gain) loss reclassified from AOCI | (Gain) loss recognized in | |||||||||||||||||||||||
into income (effective portion) | nonoperating (income) expense | ||||||||||||||||||||||||
(ineffective portion) | |||||||||||||||||||||||||
Three months ended September 30, | Three months ended September 30, | Three months ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Foreign currency derivatives | $ | (12,428 | ) | $ | 3,960 | $ | (1,297 | ) | $ | (3,005 | ) | $ | — | $ | — | ||||||||||
Interest rate derivatives | (283 | ) | 82 | 201 | 217 | — | — | ||||||||||||||||||
(Gain) loss recognized in AOCI on derivatives (effective portion) | (Gain) loss reclassified from AOCI | (Gain) loss recognized in | |||||||||||||||||||||||
into income (effective portion) | nonoperating (income) expense | ||||||||||||||||||||||||
(ineffective portion) | |||||||||||||||||||||||||
Nine months ended September 30, | Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Foreign currency derivatives | $ | (4,720 | ) | $ | (10,204 | ) | $ | (6,523 | ) | $ | (6,395 | ) | $ | — | $ | (61 | ) | ||||||||
Interest rate derivatives | 668 | (929 | ) | 618 | 440 | — | — | ||||||||||||||||||
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 by the counterparties based on the current market exposure of the derivative. | |||||||||||||||||||||||||
The Company's agreements with its counterparties also requires the posting of cash collateral in the event the aggregate value of the Company's positions exceeds certain exposure thresholds that are based upon certain liquidity metrics of the Company. The aggregate fair value of the Company's derivative instruments that contain credit-risk related contingent features that are in a net liability position as of September 30, 2014 was $18.7 million. | |||||||||||||||||||||||||
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 $7.0 million of collateral posted with one of its counterparties as of September 30, 2014, and no collateral posted with counterparties as of December 31, 2013. | |||||||||||||||||||||||||
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. |
Debt
Debt | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Debt Disclosure [Abstract] | ' | |||
Debt | ' | |||
Debt | ||||
As of September 30, 2014, the expected maturities of long-term debt for the remainder of 2014 and the next four years, and thereafter, were as follows (in thousands): | ||||
Remaining months in 2014 | $ | 99,810 | ||
2015 | 82,965 | |||
2016 | 81,267 | |||
2017 | 81,266 | |||
2018 | 87,212 | |||
Thereafter | 526,618 | |||
$ | 959,138 | |||
Revolving Credit Facilities | ||||
In September 2014, the Company terminated its secured revolving credit facility with Wells Fargo Capital Finance LLC, which provided for a secured revolving credit facility of up to $75 million. | ||||
Convertible Notes | ||||
During the three months ended September 30, 2014 a condition for conversion of the Convertible Note was satisfied, which permits holders of the Convertible Notes to surrender their notes for conversion during the quarter ending December 31, 2014. Therefore, the principal balance could be settled in as early as 2014 and is classified accordingly in the table above. As of September 30, 2014, the carrying value of $79.6 million is reflected as a current liability in the unaudited Consolidated Balance Sheets. | ||||
Debt Extinguishment | ||||
In October 2014, Hawaiian extinguished $54.2 million of existing debt under a secured financing agreement, which was originally scheduled to mature in October 2023. |
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
Employee Benefit Plans | |||||||||||||||||
The components of net periodic benefit cost for the Company’s defined benefit and other postretirement plans included the following: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
Components of Net Period Benefit Cost | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | |||||||||||||||||
Service cost | $ | 3,162 | $ | 4,473 | $ | 9,066 | $ | 11,676 | |||||||||
Interest cost | 6,839 | 6,340 | 20,811 | 18,939 | |||||||||||||
Expected return on plan assets | (4,842 | ) | (4,065 | ) | (14,532 | ) | (12,196 | ) | |||||||||
Recognized net actuarial loss | 49 | 2,280 | 499 | 6,381 | |||||||||||||
Net periodic benefit cost | $ | 5,208 | $ | 9,028 | $ | 15,844 | $ | 24,800 | |||||||||
The Company made contributions of $2.3 million and $8.9 million to its defined benefit and other postretirement plans during the three and nine months ended September 30, 2014, respectively. The Company made contributions of $11.9 million and $18.6 million to its defined benefit and other postretirement plans during the three and nine months ended September 30, 2013, respectively. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||
Commitments and Contingent Liabilities | ' | ||||||||||||||||||||
Commitments and Contingent Liabilities | |||||||||||||||||||||
Commitments | |||||||||||||||||||||
As of September 30, 2014, 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 | 4 | 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 engine | 1 | — | In 2014 | ||||||||||||||||||
A350XWB-800 spare engines | 2 | — | Between 2017 and 2020 | ||||||||||||||||||
Pratt & Whitney spare engines: | |||||||||||||||||||||
A321neo spare engines | 2 | — | Between 2017 and 2018 | ||||||||||||||||||
In July 2014, the Company signed a memorandum of understanding (MOU) with Airbus for the conversion of the existing order for six new A350XWB-800 aircraft for delivery between 2017 and 2020 into the purchase of six new Airbus A330neo aircraft for delivery between 2019 and 2021, with rights to purchase an additional six new Airbus A330neo aircraft. The changes in the dates of delivery and in the model of the aircraft being delivered are not included in the tables below as definitive agreements relating to these commitments have yet to be finalized. | |||||||||||||||||||||
The Company has operating commitments with a third-party to provide aircraft maintenance services which require fixed payments as well as variable payments based on flight hours for its Airbus fleet through 2027. The Company also has operating commitments with third-party service providers for reservations, IT, and accounting services through 2018. | |||||||||||||||||||||
Committed capital and operating expenditures include escalation and variable amounts based on estimates. The gross committed expenditures and committed financings for those deliveries as of September 30, 2014 are detailed below: | |||||||||||||||||||||
Capital | Operating | Total Committed | Less: Committed | Net Committed | |||||||||||||||||
Expenditures | Financing for Upcoming | Expenditures | |||||||||||||||||||
Aircraft Deliveries* | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Remaining months in 2014 | $ | 84,346 | $ | 15,550 | $ | 99,896 | $ | 75,000 | $ | 24,896 | |||||||||||
2015 | 253,246 | 60,535 | 313,781 | — | 313,781 | ||||||||||||||||
2016 | 147,824 | 49,004 | 196,828 | — | 196,828 | ||||||||||||||||
2017 | 493,824 | 47,853 | 541,677 | — | 541,677 | ||||||||||||||||
2018 | 547,118 | 42,922 | 590,040 | — | 590,040 | ||||||||||||||||
Thereafter | 558,578 | 255,650 | 814,228 | — | 814,228 | ||||||||||||||||
$ | 2,084,936 | $ | 471,514 | $ | 2,556,450 | $ | 75,000 | $ | 2,481,450 | ||||||||||||
*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 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%. The proceeds of the issuance of the Class A and Class B pass-through certificates were used to purchase equipment notes that were issued by Hawaiian to finance the purchase of six (6) new Airbus aircraft. During the nine months ended September 30, 2014, the Company received $293.4 million in proceeds from the issuance of the equipment notes, which it used to fund a portion of the purchase price of four Airbus aircraft. The remaining proceeds were used to purchase equipment notes that were issued by Hawaiian to finance the purchase of an Airbus aircraft delivered in October 2014. The equipment notes are secured by a lien on the aircraft, and the payment obligations of Hawaiian under the equipment notes are fully and unconditionally guaranteed by the Company. The Company issued the equipment notes to the trusts as aircraft were delivered to Hawaiian. Hawaiian recorded the debt obligation upon issuance of the equipment notes rather than upon the initial issuance of the pass-through certificates. In connection with the consummation of the EETC financing transaction, Hawaiian was required to deposit $16.0 million into a collateral account, of which $14.4 million was released during the nine months ended September 30, 2014. 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 unaudited 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 are 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. | |||||||||||||||||||||
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 unaudited Consolidated Balance Sheets, totaled $5.0 million at September 30, 2014 and December 31, 2013. | |||||||||||||||||||||
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 have a material adverse impact on the Company. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Cash Flow, Supplemental Disclosures | ' | |||||||
Supplemental Cash flow Information | ||||||||
Non-cash investing and financing activities for the nine months ended September 30, 2014 and 2013 were as follows: | ||||||||
Nine months ended September 30, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Investing and Financing Activities Not Affecting Cash: | ||||||||
Property and equipment acquired through a capital lease | $ | — | $ | 11,840 | ||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Condensed Consolidating Financial Information | ' | ||||||||||||||||||||
Condensed Consolidating Financial Information | ' | ||||||||||||||||||||
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 12 as Subsidiary Issuer / Guarantor) of pass-through certificates, as discussed in Note 10, the Company (which is also referred to in this Note 12 as Parent Issuer / Guarantor), is fully and unconditionally guaranteeing the payment obligations of Hawaiian, which is a 100% owned subsidiary of the Company, under equipment notes issued by Hawaiian to purchase new aircraft, and will fully and unconditionally guarantee those obligations in connection with the future issuance of equipment notes by Hawaiian. | |||||||||||||||||||||
Condensed consolidating financial statements are presented in the following tables: | |||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||||||
Guarantor | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Operating Revenue | $ | — | $ | 638,414 | $ | 1,145 | $ | (97 | ) | $ | 639,462 | ||||||||||
Operating Expenses: | |||||||||||||||||||||
Aircraft fuel, including taxes and delivery | — | 182,219 | — | — | 182,219 | ||||||||||||||||
Wages and benefits | — | 114,469 | — | — | 114,469 | ||||||||||||||||
Aircraft rent | — | 26,724 | — | — | 26,724 | ||||||||||||||||
Maintenance materials and repairs | — | 51,029 | 264 | — | 51,293 | ||||||||||||||||
Aircraft and passenger servicing | — | 31,848 | — | — | 31,848 | ||||||||||||||||
Commissions and other selling | — | 32,024 | 11 | (20 | ) | 32,015 | |||||||||||||||
Depreciation and amortization | — | 23,654 | 730 | — | 24,384 | ||||||||||||||||
Other rentals and landing fees | 5 | 23,632 | — | — | 23,637 | ||||||||||||||||
Other | 1,246 | 45,291 | 244 | (77 | ) | 46,704 | |||||||||||||||
Total | 1,251 | 530,890 | 1,249 | (97 | ) | 533,293 | |||||||||||||||
Operating Income (Loss) | (1,251 | ) | 107,524 | (104 | ) | — | 106,169 | ||||||||||||||
Nonoperating Income (Expense): | |||||||||||||||||||||
Undistributed net income of subsidiaries | 37,900 | — | — | (37,900 | ) | — | |||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (2,260 | ) | (14,844 | ) | — | — | (17,104 | ) | |||||||||||||
Interest income | 47 | 424 | — | — | 471 | ||||||||||||||||
Capitalized interest | — | 1,834 | — | — | 1,834 | ||||||||||||||||
Losses on fuel derivatives | — | (27,892 | ) | — | — | (27,892 | ) | ||||||||||||||
Other, net | — | (5,114 | ) | — | — | (5,114 | ) | ||||||||||||||
Total | 35,687 | (45,592 | ) | — | (37,900 | ) | (47,805 | ) | |||||||||||||
Income (Loss) Before Income Taxes | 34,436 | 61,932 | (104 | ) | (37,900 | ) | 58,364 | ||||||||||||||
Income tax expense (benefit) | (1,139 | ) | 23,928 | — | — | 22,789 | |||||||||||||||
Net Income (Loss) | $ | 35,575 | $ | 38,004 | $ | (104 | ) | $ | (37,900 | ) | $ | 35,575 | |||||||||
Comprehensive Income (Loss) | $ | 42,610 | $ | 45,039 | $ | (104 | ) | $ | (44,935 | ) | $ | 42,610 | |||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||||||
Guarantor | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Operating Revenue | $ | — | $ | 599,361 | $ | (3 | ) | $ | (60 | ) | $ | 599,298 | |||||||||
Operating Expenses: | |||||||||||||||||||||
Aircraft fuel, including taxes and delivery | — | 181,334 | — | — | 181,334 | ||||||||||||||||
Wages and benefits | — | 112,150 | — | — | 112,150 | ||||||||||||||||
Aircraft rent | — | 27,575 | — | — | 27,575 | ||||||||||||||||
Maintenance materials and repairs | — | 51,705 | — | — | 51,705 | ||||||||||||||||
Aircraft and passenger servicing | — | 31,080 | — | — | 31,080 | ||||||||||||||||
Commissions and other selling | — | 32,302 | — | (14 | ) | 32,288 | |||||||||||||||
Depreciation and amortization | — | 22,092 | — | — | 22,092 | ||||||||||||||||
Other rentals and landing fees | — | 21,996 | — | — | 21,996 | ||||||||||||||||
Other | 1,072 | 43,530 | 88 | (46 | ) | 44,644 | |||||||||||||||
Total | 1,072 | 523,764 | 88 | (60 | ) | 524,864 | |||||||||||||||
Operating Income (Loss) | (1,072 | ) | 75,597 | (91 | ) | — | 74,434 | ||||||||||||||
Nonoperating Income (Expense): | |||||||||||||||||||||
Undistributed net income of subsidiaries | 42,686 | — | — | (42,686 | ) | — | |||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (2,207 | ) | (11,272 | ) | — | — | (13,479 | ) | |||||||||||||
Interest income | 27 | 146 | — | — | 173 | ||||||||||||||||
Capitalized interest | — | 3,005 | — | — | 3,005 | ||||||||||||||||
Gains on fuel derivatives | — | 2,536 | — | — | 2,536 | ||||||||||||||||
Other, net | — | 749 | — | — | 749 | ||||||||||||||||
Total | 40,506 | (4,836 | ) | — | (42,686 | ) | (7,016 | ) | |||||||||||||
Income (Loss) Before Income Taxes | 39,434 | 70,761 | (91 | ) | (42,686 | ) | 67,418 | ||||||||||||||
Income tax expense (benefit) | (1,170 | ) | 27,984 | — | — | 26,814 | |||||||||||||||
Net Income (Loss) | $ | 40,604 | $ | 42,777 | $ | (91 | ) | $ | (42,686 | ) | $ | 40,604 | |||||||||
Comprehensive Income (Loss) | $ | 37,520 | $ | 39,693 | $ | (91 | ) | $ | (39,602 | ) | $ | 37,520 | |||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||||||
Guarantor | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Operating Revenue | $ | — | $ | 1,737,520 | $ | 2,801 | $ | (281 | ) | $ | 1,740,040 | ||||||||||
Operating Expenses: | |||||||||||||||||||||
Aircraft fuel, including taxes and delivery | — | 527,497 | — | — | 527,497 | ||||||||||||||||
Wages and benefits | — | 334,441 | — | — | 334,441 | ||||||||||||||||
Aircraft rent | — | 79,098 | — | — | 79,098 | ||||||||||||||||
Maintenance materials and repairs | — | 167,499 | 503 | — | 168,002 | ||||||||||||||||
Aircraft and passenger servicing | — | 92,929 | — | — | 92,929 | ||||||||||||||||
Commissions and other selling | — | 94,149 | 43 | (69 | ) | 94,123 | |||||||||||||||
Depreciation and amortization | — | 69,496 | 1,464 | — | 70,960 | ||||||||||||||||
Other rentals and landing fees | 5 | 65,850 | — | — | 65,855 | ||||||||||||||||
Other | 4,015 | 134,729 | 803 | (212 | ) | 139,335 | |||||||||||||||
Total | 4,020 | 1,565,688 | 2,813 | (281 | ) | 1,572,240 | |||||||||||||||
Operating Income (Loss) | (4,020 | ) | 171,832 | (12 | ) | — | 167,800 | ||||||||||||||
Nonoperating Income (Expense): | |||||||||||||||||||||
Undistributed net income of subsidiaries | 64,787 | — | — | (64,787 | ) | — | |||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (6,650 | ) | (41,461 | ) | — | — | (48,111 | ) | |||||||||||||
Interest income | 126 | 962 | — | — | 1,088 | ||||||||||||||||
Capitalized interest | — | 6,584 | — | — | 6,584 | ||||||||||||||||
Losses on fuel derivatives | — | (28,506 | ) | — | — | (28,506 | ) | ||||||||||||||
Other, net | — | (3,804 | ) | — | — | (3,804 | ) | ||||||||||||||
Total | 58,263 | (66,225 | ) | — | (64,787 | ) | (72,749 | ) | |||||||||||||
Income (Loss) Before Income Taxes | 54,243 | 105,607 | (12 | ) | (64,787 | ) | 95,051 | ||||||||||||||
Income tax expense (benefit) | (3,584 | ) | 40,808 | — | — | 37,224 | |||||||||||||||
Net Income (Loss) | $ | 57,827 | $ | 64,799 | $ | (12 | ) | $ | (64,787 | ) | $ | 57,827 | |||||||||
Comprehensive Income (Loss) | $ | 56,435 | $ | 63,407 | $ | (12 | ) | $ | (63,395 | ) | $ | 56,435 | |||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||||||
Guarantor | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Operating Revenue | $ | — | $ | 1,623,602 | $ | 634 | $ | (256 | ) | $ | 1,623,980 | ||||||||||
Operating Expenses: | |||||||||||||||||||||
Aircraft fuel, including taxes and delivery | — | 525,046 | — | — | 525,046 | ||||||||||||||||
Wages and benefits | — | 318,269 | — | — | 318,269 | ||||||||||||||||
Aircraft rent | — | 81,879 | — | — | 81,879 | ||||||||||||||||
Maintenance materials and repairs | — | 160,000 | — | — | 160,000 | ||||||||||||||||
Aircraft and passenger servicing | — | 89,367 | — | — | 89,367 | ||||||||||||||||
Commissions and other selling | — | 98,333 | — | (48 | ) | 98,285 | |||||||||||||||
Depreciation and amortization | — | 60,993 | — | — | 60,993 | ||||||||||||||||
Other rentals and landing fees | — | 60,773 | — | — | 60,773 | ||||||||||||||||
Other | 6,557 | 122,837 | 283 | (208 | ) | 129,469 | |||||||||||||||
Total | 6,557 | 1,517,497 | 283 | (256 | ) | 1,524,081 | |||||||||||||||
Operating Income (Loss) | (6,557 | ) | 106,105 | 351 | — | 99,899 | |||||||||||||||
Nonoperating Income (Expense): | |||||||||||||||||||||
Undistributed net income of subsidiaries | 43,310 | — | — | (43,310 | ) | — | |||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (6,475 | ) | (30,544 | ) | — | — | (37,019 | ) | |||||||||||||
Interest income | 91 | 335 | — | — | 426 | ||||||||||||||||
Capitalized interest | — | 9,336 | — | — | 9,336 | ||||||||||||||||
Losses on fuel derivatives | — | (10,931 | ) | — | — | (10,931 | ) | ||||||||||||||
Other, net | — | (3,457 | ) | — | — | (3,457 | ) | ||||||||||||||
Total | 36,926 | (35,261 | ) | — | (43,310 | ) | (41,645 | ) | |||||||||||||
Income Before Income Taxes | 30,369 | 70,844 | 351 | (43,310 | ) | 58,254 | |||||||||||||||
Income tax expense (benefit) | (4,406 | ) | 27,885 | — | — | 23,479 | |||||||||||||||
Net Income (Loss) | $ | 34,775 | $ | 42,959 | $ | 351 | $ | (43,310 | ) | $ | 34,775 | ||||||||||
Comprehensive Income | $ | 41,113 | $ | 49,297 | $ | 351 | $ | (49,648 | ) | $ | 41,113 | ||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||||||
Guarantor | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 48,982 | $ | 275,773 | $ | 3,500 | $ | — | $ | 328,255 | |||||||||||
Restricted cash | — | 6,566 | — | — | 6,566 | ||||||||||||||||
Short-term investments | — | 253,300 | — | — | 253,300 | ||||||||||||||||
Accounts receivable, net | 236 | 82,743 | 51 | (128 | ) | 82,902 | |||||||||||||||
Spare parts and supplies, net | — | 19,359 | 928 | — | 20,287 | ||||||||||||||||
Deferred tax assets, net | — | 17,325 | — | — | 17,325 | ||||||||||||||||
Prepaid expenses and other | 3 | 47,557 | 117 | — | 47,677 | ||||||||||||||||
Total | 49,221 | 702,623 | 4,596 | (128 | ) | 756,312 | |||||||||||||||
Property and equipment at cost | — | 1,941,036 | 34,669 | — | 1,975,705 | ||||||||||||||||
Less accumulated depreciation and amortization | — | (343,263 | ) | (1,464 | ) | — | (344,727 | ) | |||||||||||||
Property and equipment, net | — | 1,597,773 | 33,205 | — | 1,630,978 | ||||||||||||||||
Long-term prepayments and other | 777 | 98,546 | — | — | 99,323 | ||||||||||||||||
Deferred tax assets, net | 18,462 | — | — | (18,462 | ) | — | |||||||||||||||
Goodwill and other intangible assets, net | — | 128,623 | — | — | 128,623 | ||||||||||||||||
Intercompany receivable | 58,518 | — | — | (58,518 | ) | — | |||||||||||||||
Investment in consolidated subsidiaries | 414,702 | — | — | (414,702 | ) | — | |||||||||||||||
TOTAL ASSETS | $ | 541,680 | $ | 2,527,565 | $ | 37,801 | $ | (491,810 | ) | $ | 2,615,236 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 596 | $ | 77,565 | $ | 317 | $ | (128 | ) | $ | 78,350 | ||||||||||
Air traffic liability | — | 485,624 | 1,901 | — | 487,525 | ||||||||||||||||
Other accrued liabilities | 420 | 114,152 | 145 | — | 114,717 | ||||||||||||||||
Current maturities of long-term debt, less discount, and capital lease obligations | 79,579 | 91,475 | — | — | 171,054 | ||||||||||||||||
Total | 80,595 | 768,816 | 2,363 | (128 | ) | 851,646 | |||||||||||||||
Long-term debt and capital lease obligations | — | 885,486 | — | — | 885,486 | ||||||||||||||||
Intercompany payable | — | 58,518 | — | (58,518 | ) | — | |||||||||||||||
Other liabilities and deferred credits: | 0 | ||||||||||||||||||||
Accumulated pension and other postretirement benefit obligations | — | 268,703 | — | — | 268,703 | ||||||||||||||||
Other liabilities and deferred credits | 326 | 69,053 | 750 | — | 70,129 | ||||||||||||||||
Deferred tax liabilities, net | — | 96,975 | — | (18,462 | ) | 78,513 | |||||||||||||||
Total | 326 | 434,731 | 750 | (18,462 | ) | 417,345 | |||||||||||||||
Shareholders’ equity | 460,759 | 380,014 | 34,688 | (414,702 | ) | 460,759 | |||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 541,680 | $ | 2,527,565 | $ | 37,801 | $ | (491,810 | ) | $ | 2,615,236 | ||||||||||
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: | 0 | ||||||||||||||||||||
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 Statements of Cash Flows | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Guarantor | |||||||||||||||||||
Guarantor | Subsidiaries | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net Cash Provided By (Used In) Operating Activities | $ | (6,859 | ) | $ | 257,694 | $ | 1,328 | $ | — | $ | 252,163 | ||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||||||
Net payments to subsidiaries | (34,443 | ) | — | — | 34,443 | — | |||||||||||||||
Additions to property and equipment, including pre-delivery deposits | — | (358,538 | ) | (2,752 | ) | — | (361,290 | ) | |||||||||||||
Net proceeds from disposition of property and equipment | — | 978 | — | — | 978 | ||||||||||||||||
Purchases of investments | — | (346,010 | ) | — | — | (346,010 | ) | ||||||||||||||
Sales of investments | — | 92,103 | — | — | 92,103 | ||||||||||||||||
Net cash used in investing activities | (34,443 | ) | (611,467 | ) | (2,752 | ) | 34,443 | (614,219 | ) | ||||||||||||
Cash Flows From Financing Activities: | |||||||||||||||||||||
Proceeds from exercise of stock options | 5,487 | — | — | — | 5,487 | ||||||||||||||||
Long-term borrowings | — | 293,430 | — | — | 293,430 | ||||||||||||||||
Repayments of long-term debt and capital lease obligations | — | (46,392 | ) | — | — | (46,392 | ) | ||||||||||||||
Debt issuance costs | — | (32 | ) | — | — | (32 | ) | ||||||||||||||
Net payments from parent company | — | 34,443 | — | (34,443 | ) | — | |||||||||||||||
Change in restricted cash | — | 14,434 | — | — | 14,434 | ||||||||||||||||
Net cash provided by financing activities | 5,487 | 295,883 | — | (34,443 | ) | 266,927 | |||||||||||||||
Net decrease in cash and cash equivalents | (35,815 | ) | (57,890 | ) | (1,424 | ) | — | (95,129 | ) | ||||||||||||
Cash and cash equivalents - Beginning of Period | 84,797 | 333,663 | 4,924 | — | 423,384 | ||||||||||||||||
Cash and cash equivalents - End of Period | $ | 48,982 | $ | 275,773 | $ | 3,500 | $ | — | $ | 328,255 | |||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Guarantor | |||||||||||||||||||
Guarantor | Subsidiaries | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net Cash Provided By (Used In) Operating Activities | $ | (7,244 | ) | $ | 215,589 | $ | (870 | ) | $ | — | $ | 207,475 | |||||||||
Cash Flows From Investing Activities: | |||||||||||||||||||||
Net payments from subsidiaries | 5,553 | — | — | (5,553 | ) | — | |||||||||||||||
Additions to property and equipment, including pre-delivery deposits | — | (220,272 | ) | (12,445 | ) | — | (232,717 | ) | |||||||||||||
Net cash provided by (used in) investing activities | 5,553 | (220,272 | ) | (12,445 | ) | (5,553 | ) | (232,717 | ) | ||||||||||||
Cash Flows From Financing Activities: | |||||||||||||||||||||
Proceeds from exercise of stock options | 2,376 | — | — | — | 2,376 | ||||||||||||||||
Long-term borrowings | — | 132,000 | — | — | 132,000 | ||||||||||||||||
Repayments of long-term debt and capital lease obligations | — | (45,200 | ) | — | — | (45,200 | ) | ||||||||||||||
Debt issuance costs | — | (12,416 | ) | — | — | (12,416 | ) | ||||||||||||||
Net payments to parent company | — | (5,553 | ) | — | 5,553 | — | |||||||||||||||
Change in restricted cash | — | (16,000 | ) | — | — | (16,000 | ) | ||||||||||||||
Net cash provided by financing activities | 2,376 | 52,831 | — | 5,553 | 60,760 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 685 | 48,148 | (13,315 | ) | — | 35,518 | |||||||||||||||
Cash and cash equivalents - Beginning of Period | 83,626 | 303,967 | 18,287 | — | 405,880 | ||||||||||||||||
Cash and cash equivalents - End of Period | $ | 84,311 | $ | 352,115 | $ | 4,972 | $ | — | $ | 441,398 | |||||||||||
Long-Term Debt | |||||||||||||||||||||
The long-term debt included in the Parent Issuer / Guarantor column represents the Convertible Notes described in Note 7 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||||||||||
Income Taxes | |||||||||||||||||||||
The income tax expense (benefit) is presented as if each entity that is part of the consolidated group files a separate return. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Sale of Frequent Flyer Miles | ' |
Sale of Frequent Flyer Miles | |
In October 2013, Hawaiian entered into a co-branded credit card agreement, which provides for the sale of frequent flyer miles to Barclays Bank Delaware (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 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. | |
The following four deliverables or elements were identified in the agreement: (i) travel miles; (ii) use of the Hawaiian brand and access to member lists; (iii) advertising elements; and (iv) other airline benefits including checked baggage services and travel discounts. The Company determined the relative fair value of each element by estimating the selling prices of the deliverables by considering discounted cash flows using multiple inputs and assumptions, including: (1) the expected number of miles to be awarded and redeemed; (2) the estimated weighted average equivalent ticket value, adjusted by a fulfillment discount; (3) the estimated total annual cardholder spend; (4) an estimated royalty rate for the Hawaiian portfolio; and (5) the expected use of each of the airline benefits. The overall consideration received is allocated to the deliverables based on their relative selling prices. The transportation element will be deferred and recognized as passenger revenue over the period when the transportation is expected to be provided (22 months). The other elements will generally be recognized as other revenue when earned. | |
In the previous co-branded credit card agreement, the estimated fair value of the transportation element was deferred and recognized as passenger revenue over a period of 22 months. Amounts received in excess of the transportation’s estimated fair value were recognized immediately as other revenue. | |
The impact of applying the new accounting method for the three and nine months ended September 30, 2014 was immaterial to the Company’s unaudited consolidated financial statements. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASU 2014-09), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. Early adoption is not permitted. The amendments in ASU 2014-09 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company is currently evaluating the effect that the provisions of ASU 2014-09 will have on its consolidated financial statements and related disclosures. |
ShortTerm_Investments_Tables
Short-Term Investments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Summary of short-term investments | ' | ||||||||||||||||
The following is a summary of short-term investments held as of September 30, 2014: | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gains | Losses | ||||||||||||||||
(in thousands) | |||||||||||||||||
Corporate debt | $ | 184,141 | $ | 91 | $ | (193 | ) | $ | 184,039 | ||||||||
U.S. government and agency debt | 23,797 | 11 | (2 | ) | 23,806 | ||||||||||||
Municipal bonds | 22,924 | 7 | (4 | ) | 22,927 | ||||||||||||
Other fixed income securities | 22,533 | — | (5 | ) | 22,528 | ||||||||||||
Total short-term investments | $ | 253,395 | $ | 109 | $ | (204 | ) | $ | 253,300 | ||||||||
Schedule of contractual maturities of short-term investments | ' | ||||||||||||||||
Contractual maturities of short-term investments as of September 30, 2014 are shown below. | |||||||||||||||||
Under 1 Year | 1 to 5 Years | Total | |||||||||||||||
(in thousands) | |||||||||||||||||
Corporate debt | $ | 80,081 | $ | 103,958 | $ | 184,039 | |||||||||||
U.S. government and agency debt | 16,325 | 7,481 | 23,806 | ||||||||||||||
Municipal bonds | 8,244 | 14,683 | 22,927 | ||||||||||||||
Other fixed income securities | 22,528 | — | 22,528 | ||||||||||||||
Total short-term investments | $ | 127,178 | $ | 126,122 | $ | 253,300 | |||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | ||||||||||||||||||||
Information related to amounts reclassified from AOCI | ' | ||||||||||||||||||||
Reclassifications out of accumulated other comprehensive loss by component is as follows: | |||||||||||||||||||||
Details about accumulated other | Three months ended September 30, | Nine months ended September 30, | Affected line items | ||||||||||||||||||
comprehensive loss components | in the statement where | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | net income (loss) is presented | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815 | |||||||||||||||||||||
Foreign currency derivative gains, net | $ | (1,297 | ) | $ | (3,005 | ) | $ | (6,523 | ) | $ | (6,395 | ) | Passenger revenue | ||||||||
Interest rate derivative losses, net | 201 | 217 | 618 | 440 | Interest expense | ||||||||||||||||
Total before tax | (1,096 | ) | (2,788 | ) | (5,905 | ) | (5,955 | ) | |||||||||||||
Tax expense | 424 | 1,025 | 2,239 | 2,226 | |||||||||||||||||
Total, net of tax | $ | (672 | ) | $ | (1,763 | ) | $ | (3,666 | ) | $ | (3,729 | ) | |||||||||
Amortization of defined benefit pension items | |||||||||||||||||||||
Actuarial loss (gain) | $ | (64 | ) | $ | 2,281 | $ | 388 | $ | 6,384 | Wages and benefits | |||||||||||
Prior service cost (credit) | 113 | (1 | ) | 111 | (3 | ) | Wages and benefits | ||||||||||||||
Total before tax | 49 | 2,280 | 499 | 6,381 | |||||||||||||||||
Tax benefit | (5 | ) | (899 | ) | (215 | ) | (3,034 | ) | |||||||||||||
Total, net of tax | $ | 44 | $ | 1,381 | $ | 284 | $ | 3,347 | |||||||||||||
Short-term investments | |||||||||||||||||||||
Realized gain on sales of investments, net | $ | (10 | ) | $ | — | $ | (12 | ) | $ | — | Other nonoperating income | ||||||||||
Total before tax | (10 | ) | — | (12 | ) | — | |||||||||||||||
Tax expense | 1 | — | 1 | — | |||||||||||||||||
Total, net of tax | $ | (9 | ) | $ | — | $ | (11 | ) | $ | — | |||||||||||
Total reclassifications for the period | $ | (637 | ) | $ | (382 | ) | $ | (3,393 | ) | $ | (382 | ) | |||||||||
Schedule of amounts included in accumulated other comprehensive loss, net of taxes | ' | ||||||||||||||||||||
A rollforward of the amounts included in accumulated other comprehensive loss, net of taxes, for the three and nine months ended September 30, 2014 and 2013 is as follows: | |||||||||||||||||||||
Three months ended September 30, 2014 | Interest | Foreign | Defined | Short-Term Investments | Total | ||||||||||||||||
Rate | Currency | Benefit | |||||||||||||||||||
Derivatives | Derivatives | Pension | |||||||||||||||||||
Items | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Beginning balance | $ | 471 | $ | 95 | $ | (51,714 | ) | $ | 35 | $ | (51,113 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax | 39 | 7,714 | — | (81 | ) | 7,672 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 121 | (793 | ) | 44 | (9 | ) | (637 | ) | |||||||||||||
Net current-period other comprehensive income (loss) | 160 | 6,921 | 44 | (90 | ) | 7,035 | |||||||||||||||
Ending balance | $ | 631 | $ | 7,016 | $ | (51,670 | ) | $ | (55 | ) | $ | (44,078 | ) | ||||||||
Three months ended September 30, 2013 | Interest | Foreign | Defined | Total | |||||||||||||||||
Rate | Currency | Benefit | |||||||||||||||||||
Derivatives | Derivatives | Pension | |||||||||||||||||||
Items | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Beginning balance | $ | 766 | $ | 6,690 | $ | (112,088 | ) | $ | (104,632 | ) | |||||||||||
Other comprehensive loss before reclassifications, net of tax | (220 | ) | (2,482 | ) | — | (2,702 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 135 | (1,898 | ) | 1,381 | (382 | ) | |||||||||||||||
Net current-period other comprehensive income (loss) | (85 | ) | (4,380 | ) | 1,381 | (3,084 | ) | ||||||||||||||
Ending balance | $ | 681 | $ | 2,310 | $ | (110,707 | ) | $ | (107,716 | ) | |||||||||||
Nine months ended September 30, 2014 | Interest | Foreign | Defined | Short-Term Investments | Total | ||||||||||||||||
Rate | Currency | Benefit | |||||||||||||||||||
Derivatives | Derivatives | Pension | |||||||||||||||||||
Items | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Beginning balance | $ | 1,096 | $ | 8,277 | $ | (52,059 | ) | $ | — | $ | (42,686 | ) | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax | (844 | ) | 2,784 | 105 | (44 | ) | 2,001 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 379 | (4,045 | ) | 284 | (11 | ) | (3,393 | ) | |||||||||||||
Net current-period other comprehensive income (loss) | (465 | ) | (1,261 | ) | 389 | (55 | ) | (1,392 | ) | ||||||||||||
Ending balance | $ | 631 | $ | 7,016 | $ | (51,670 | ) | $ | (55 | ) | $ | (44,078 | ) | ||||||||
Nine months ended September 30, 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 | 409 | 6,311 | — | 6,720 | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 272 | (4,001 | ) | 3,347 | (382 | ) | |||||||||||||||
Net current-period other comprehensive income | 681 | 2,310 | 3,347 | 6,338 | |||||||||||||||||
Ending balance | $ | 681 | $ | 2,310 | $ | (110,707 | ) | $ | (107,716 | ) | |||||||||||
Earning_Per_Share_Tables
Earning Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of loss per share basic and diluted | ' | ||||||||||||||||
Diluted earnings 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. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands, except for per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net Income | $ | 35,575 | $ | 40,604 | $ | 57,827 | $ | 34,775 | |||||||||
Denominator: | |||||||||||||||||
Weighted average common stock shares outstanding - Basic | 53,878 | 52,303 | 53,359 | 51,994 | |||||||||||||
Assumed exercise of stock options and awards | 848 | 1,209 | 1,061 | 1,166 | |||||||||||||
Assumed conversion of convertible note premium | 4,965 | — | 4,498 | — | |||||||||||||
Assumed conversion of warrants | 3,359 | — | 2,767 | — | |||||||||||||
Weighted average common stock shares outstanding - Diluted | 63,050 | 53,512 | 61,685 | 53,160 | |||||||||||||
Net Income per common share | |||||||||||||||||
Basic | $ | 0.66 | $ | 0.78 | $ | 1.08 | $ | 0.67 | |||||||||
Diluted | $ | 0.56 | $ | 0.76 | $ | 0.94 | $ | 0.65 | |||||||||
Summary of common stock equivalents that could potentially dilute basic earnings per share in the future but were excluded from the computation of diluted loss per share because the instruments were antidilutive | ' | ||||||||||||||||
The table below summarizes those common stock equivalents that could potentially dilute basic earnings per share in the future but were excluded from the computation of diluted earnings per share because the instruments were antidilutive. | |||||||||||||||||
Three Months Ended September 30, | Nine months ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Stock options | — | — | — | 522 | |||||||||||||
Deferred stock | — | — | — | 58 | |||||||||||||
Restricted stock | 7 | 1,031 | 2 | 1,494 | |||||||||||||
Convertible note premium | — | 10,943 | — | 10,943 | |||||||||||||
Warrants | — | 10,943 | — | 10,943 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||||||||||||||||||||||||
The tables below present the Company’s financial assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||
Fair Value Measurements as of September 30, 2014 | |||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 155,967 | $ | 152,967 | $ | 3,000 | $ | — | |||||||||||||||||||||||||||||||
Restricted cash | 6,566 | 6,566 | — | — | |||||||||||||||||||||||||||||||||||
Short-term investments | 253,300 | — | 253,300 | — | |||||||||||||||||||||||||||||||||||
Fuel derivative contracts: | 0 | ||||||||||||||||||||||||||||||||||||||
Crude oil call options | 50 | — | 50 | — | |||||||||||||||||||||||||||||||||||
Crude oil put options | 4 | — | 4 | — | |||||||||||||||||||||||||||||||||||
Heating oil put options | 845 | — | 845 | — | |||||||||||||||||||||||||||||||||||
Foreign currency derivatives | 11,851 | — | 11,851 | — | |||||||||||||||||||||||||||||||||||
Interest rate derivative | 452 | — | 452 | — | |||||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 429,035 | $ | 159,533 | $ | 269,502 | $ | — | |||||||||||||||||||||||||||||||
Fuel derivative contracts: | |||||||||||||||||||||||||||||||||||||||
Crude oil call options | $ | 50 | $ | — | $ | 50 | $ | — | |||||||||||||||||||||||||||||||
Crude oil put options | 4 | — | 4 | — | |||||||||||||||||||||||||||||||||||
Heating oil swaps | 19,515 | — | 19,515 | — | |||||||||||||||||||||||||||||||||||
Foreign currency derivatives | 118 | — | 118 | — | |||||||||||||||||||||||||||||||||||
Negative arbitrage derivative | 500 | — | — | 500 | |||||||||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 20,187 | $ | — | $ | 19,687 | $ | 500 | |||||||||||||||||||||||||||||||
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: | 0 | ||||||||||||||||||||||||||||||||||||||
Crude oil call options | 7,121 | — | 7,121 | — | |||||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||||||||
Crude oil call options | $ | 7,121 | $ | — | $ | 7,121 | $ | — | |||||||||||||||||||||||||||||||
Crude oil put options | 186 | — | 186 | — | |||||||||||||||||||||||||||||||||||
Heating oil swaps | 187 | — | 187 | — | |||||||||||||||||||||||||||||||||||
Foreign currency derivatives | 1,188 | — | 1,188 | — | |||||||||||||||||||||||||||||||||||
Negative arbitrage derivative | 12,865 | — | — | 12,865 | |||||||||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 21,547 | $ | — | $ | 8,682 | $ | 12,865 | |||||||||||||||||||||||||||||||
Schedule of activity for "Level 3" financial liability | ' | ||||||||||||||||||||||||||||||||||||||
The table below presents disclosures about the activity for the Company’s “Level 3” financial liability during the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,668 | $ | 12,865 | $ | 12,865 | $ | — | |||||||||||||||||||||||||||||||
Issuance of enhanced equipment trust certificates | — | — | — | 12,865 | |||||||||||||||||||||||||||||||||||
Reduction of balance in connection with interest payment | (3,168 | ) | — | (12,365 | ) | — | |||||||||||||||||||||||||||||||||
Ending balance | $ | 500 | $ | 12,865 | $ | 500 | $ | 12,865 | |||||||||||||||||||||||||||||||
Schedule of debt (excluding obligations under capital leases) measured at fair value | ' | ||||||||||||||||||||||||||||||||||||||
The table below presents the Company’s debt (excluding obligations under capital leases) measured at fair value: | |||||||||||||||||||||||||||||||||||||||
Fair Value of Debt | |||||||||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||||||||||
$ | 952,467 | $ | 1,030,224 | $ | — | $ | 142,071 | $ | 888,153 | $ | 695,804 | $ | 738,563 | $ | — | $ | 104,656 | $ | 633,907 | ||||||||||||||||||||
Financial_Derivative_Instrumen1
Financial Derivative Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of realized and unrealized gains and losses recorded as nonoperating income (expense) | ' | ||||||||||||||||||||||||
The following table reflects the amount of realized and unrealized gains and losses recorded as nonoperating income (expense) in the unaudited Consolidated Statements of Operations. | |||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||
Fuel derivative contracts | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Losses realized at settlement | $ | (4,632 | ) | $ | (3,790 | ) | $ | (6,530 | ) | $ | (11,226 | ) | |||||||||||||
Reversal of prior period unrealized amounts | 56 | 4,278 | (1,816 | ) | 5,472 | ||||||||||||||||||||
Unrealized gains (losses) that will settle in future periods | (23,316 | ) | 2,048 | (20,160 | ) | (5,177 | ) | ||||||||||||||||||
Gains (losses) on fuel derivatives recorded as Nonoperating income (expense) | $ | (27,892 | ) | $ | 2,536 | $ | (28,506 | ) | $ | (10,931 | ) | ||||||||||||||
Schedule of fair value of the asset and liability derivatives and net derivative position recorded | ' | ||||||||||||||||||||||||
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 unaudited Consolidated Balance Sheets. | |||||||||||||||||||||||||
Derivative position as of September 30, 2014 | |||||||||||||||||||||||||
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 | $59,000 U.S. dollars | April 2023 | $ | 73 | $ | — | $ | 73 | ||||||||||||||||
Long-term prepayments and other (1) | 379 | — | 379 | ||||||||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 7,218,469 Japanese Yen | Sep-15 | 7,448 | (14 | ) | 7,434 | ||||||||||||||||||
52,209 Australian Dollars | |||||||||||||||||||||||||
Long-term prepayments and other | 3,384,130 Japanese Yen | Aug-16 | 2,514 | — | 2,514 | ||||||||||||||||||||
9,707 Australian Dollars | |||||||||||||||||||||||||
Derivatives not designated as hedges | 0 | ||||||||||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 9,415,313 Japanese Yen | Sep-15 | 1,529 | (104 | ) | 1,425 | ||||||||||||||||||
48,981 Australian Dollars | |||||||||||||||||||||||||
Long-term prepayments and other | 3,910,000 Japanese Yen | August 2016 | 360 | — | 360 | ||||||||||||||||||||
9,700 Australian Dollars | |||||||||||||||||||||||||
Fuel derivative contracts | Other accrued liabilities | 93,211 gallons | Sep-15 | 899 | (19,569 | ) | (18,670 | ) | |||||||||||||||||
Negative arbitrage derivative | Other accrued liabilities | $444,540 U.S. dollars | January 2015 | — | (500 | ) | (500 | ) | |||||||||||||||||
-1 | Represents the noncurrent portion of the $59.0 million interest rate derivative with final maturity in April 2023. | ||||||||||||||||||||||||
Derivative position 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 | April 2023 | $ | 196 | $ | — | $ | 196 | ||||||||||||||||
Long-term prepayments and other (1) | 925 | — | 925 | ||||||||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 10,500,321 Japanese Yen | December | 9,946 | (450 | ) | 9,496 | ||||||||||||||||||
10,895,370 Korean Won | 2014 | ||||||||||||||||||||||||
62,659 Australian Dollars | |||||||||||||||||||||||||
4,821 New Zealand Dollars | |||||||||||||||||||||||||
Long-term prepayments and other | 1,980,949 Japanese Yen | May 2015 | 1,673 | — | 1,673 | ||||||||||||||||||||
16,681 Australian Dollars | |||||||||||||||||||||||||
Derivatives not designated as hedges | |||||||||||||||||||||||||
Foreign currency derivatives | Prepaid expenses and other | 6,180 Japanese Yen | December | 577 | (229 | ) | 348 | ||||||||||||||||||
58 Australian Dollars | 2014 | ||||||||||||||||||||||||
Other accrued liabilities | 298 | (509 | ) | (211 | ) | ||||||||||||||||||||
Fuel derivative contracts | Prepaid expenses and other | 84,714 gallons | December | 13,587 | (7,494 | ) | 6,093 | ||||||||||||||||||
2014 | |||||||||||||||||||||||||
Negative arbitrage derivative | Other accrued liabilities | $444,540 U.S. dollars | January | — | (12,250 | ) | (12,250 | ) | |||||||||||||||||
2015 | |||||||||||||||||||||||||
Other liabilities and deferred credits (2) | — | (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 $445 million negative arbitrage derivative with final maturity in January 2015. | |||||||||||||||||||||||||
Schedule of realized and unrealized gains and losses of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||||||
The following table reflects the impact of cash flow hedges designated for hedge accounting treatment and their location within the unaudited Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||||
(Gain) loss recognized in AOCI on derivatives (effective portion) | (Gain) loss reclassified from AOCI | (Gain) loss recognized in | |||||||||||||||||||||||
into income (effective portion) | nonoperating (income) expense | ||||||||||||||||||||||||
(ineffective portion) | |||||||||||||||||||||||||
Three months ended September 30, | Three months ended September 30, | Three months ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Foreign currency derivatives | $ | (12,428 | ) | $ | 3,960 | $ | (1,297 | ) | $ | (3,005 | ) | $ | — | $ | — | ||||||||||
Interest rate derivatives | (283 | ) | 82 | 201 | 217 | — | — | ||||||||||||||||||
(Gain) loss recognized in AOCI on derivatives (effective portion) | (Gain) loss reclassified from AOCI | (Gain) loss recognized in | |||||||||||||||||||||||
into income (effective portion) | nonoperating (income) expense | ||||||||||||||||||||||||
(ineffective portion) | |||||||||||||||||||||||||
Nine months ended September 30, | Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Foreign currency derivatives | $ | (4,720 | ) | $ | (10,204 | ) | $ | (6,523 | ) | $ | (6,395 | ) | $ | — | $ | (61 | ) | ||||||||
Interest rate derivatives | 668 | (929 | ) | 618 | 440 | — | — | ||||||||||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Debt Disclosure [Abstract] | ' | |||
Schedule of expected maturities of long-term debt | ' | |||
As of September 30, 2014, the expected maturities of long-term debt for the remainder of 2014 and the next four years, and thereafter, were as follows (in thousands): | ||||
Remaining months in 2014 | $ | 99,810 | ||
2015 | 82,965 | |||
2016 | 81,267 | |||
2017 | 81,266 | |||
2018 | 87,212 | |||
Thereafter | 526,618 | |||
$ | 959,138 | |||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of net periodic benefit cost | ' | ||||||||||||||||
The components of net periodic benefit cost for the Company’s defined benefit and other postretirement plans included the following: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
Components of Net Period Benefit Cost | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | |||||||||||||||||
Service cost | $ | 3,162 | $ | 4,473 | $ | 9,066 | $ | 11,676 | |||||||||
Interest cost | 6,839 | 6,340 | 20,811 | 18,939 | |||||||||||||
Expected return on plan assets | (4,842 | ) | (4,065 | ) | (14,532 | ) | (12,196 | ) | |||||||||
Recognized net actuarial loss | 49 | 2,280 | 499 | 6,381 | |||||||||||||
Net periodic benefit cost | $ | 5,208 | $ | 9,028 | $ | 15,844 | $ | 24,800 | |||||||||
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of firm aircraft and engine orders | ' | ||||||||||||||||||||
As of September 30, 2014, 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 | 4 | 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 engine | 1 | — | 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 | ' | ||||||||||||||||||||
Committed capital and operating expenditures include escalation and variable amounts based on estimates. The gross committed expenditures and committed financings for those deliveries as of September 30, 2014 are detailed below: | |||||||||||||||||||||
Capital | Operating | Total Committed | Less: Committed | Net Committed | |||||||||||||||||
Expenditures | Financing for Upcoming | Expenditures | |||||||||||||||||||
Aircraft Deliveries* | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Remaining months in 2014 | $ | 84,346 | $ | 15,550 | $ | 99,896 | $ | 75,000 | $ | 24,896 | |||||||||||
2015 | 253,246 | 60,535 | 313,781 | — | 313,781 | ||||||||||||||||
2016 | 147,824 | 49,004 | 196,828 | — | 196,828 | ||||||||||||||||
2017 | 493,824 | 47,853 | 541,677 | — | 541,677 | ||||||||||||||||
2018 | 547,118 | 42,922 | 590,040 | — | 590,040 | ||||||||||||||||
Thereafter | 558,578 | 255,650 | 814,228 | — | 814,228 | ||||||||||||||||
$ | 2,084,936 | $ | 471,514 | $ | 2,556,450 | $ | 75,000 | $ | 2,481,450 | ||||||||||||
*See below for a detailed discussion of the committed financings Hawaiian has received for its upcoming capital commitments for aircraft deliveries. |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Schedule of Cash Flow, Supplemental Disclosures | ' | |||||||
Non-cash investing and financing activities for the nine months ended September 30, 2014 and 2013 were as follows: | ||||||||
Nine months ended September 30, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Investing and Financing Activities Not Affecting Cash: | ||||||||
Property and equipment acquired through a capital lease | $ | — | $ | 11,840 | ||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Condensed Consolidating Financial Information | ' | ||||||||||||||||||||
Schedule of Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ' | ||||||||||||||||||||
Condensed consolidating financial statements are presented in the following tables: | |||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||||||
Guarantor | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Operating Revenue | $ | — | $ | 638,414 | $ | 1,145 | $ | (97 | ) | $ | 639,462 | ||||||||||
Operating Expenses: | |||||||||||||||||||||
Aircraft fuel, including taxes and delivery | — | 182,219 | — | — | 182,219 | ||||||||||||||||
Wages and benefits | — | 114,469 | — | — | 114,469 | ||||||||||||||||
Aircraft rent | — | 26,724 | — | — | 26,724 | ||||||||||||||||
Maintenance materials and repairs | — | 51,029 | 264 | — | 51,293 | ||||||||||||||||
Aircraft and passenger servicing | — | 31,848 | — | — | 31,848 | ||||||||||||||||
Commissions and other selling | — | 32,024 | 11 | (20 | ) | 32,015 | |||||||||||||||
Depreciation and amortization | — | 23,654 | 730 | — | 24,384 | ||||||||||||||||
Other rentals and landing fees | 5 | 23,632 | — | — | 23,637 | ||||||||||||||||
Other | 1,246 | 45,291 | 244 | (77 | ) | 46,704 | |||||||||||||||
Total | 1,251 | 530,890 | 1,249 | (97 | ) | 533,293 | |||||||||||||||
Operating Income (Loss) | (1,251 | ) | 107,524 | (104 | ) | — | 106,169 | ||||||||||||||
Nonoperating Income (Expense): | |||||||||||||||||||||
Undistributed net income of subsidiaries | 37,900 | — | — | (37,900 | ) | — | |||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (2,260 | ) | (14,844 | ) | — | — | (17,104 | ) | |||||||||||||
Interest income | 47 | 424 | — | — | 471 | ||||||||||||||||
Capitalized interest | — | 1,834 | — | — | 1,834 | ||||||||||||||||
Losses on fuel derivatives | — | (27,892 | ) | — | — | (27,892 | ) | ||||||||||||||
Other, net | — | (5,114 | ) | — | — | (5,114 | ) | ||||||||||||||
Total | 35,687 | (45,592 | ) | — | (37,900 | ) | (47,805 | ) | |||||||||||||
Income (Loss) Before Income Taxes | 34,436 | 61,932 | (104 | ) | (37,900 | ) | 58,364 | ||||||||||||||
Income tax expense (benefit) | (1,139 | ) | 23,928 | — | — | 22,789 | |||||||||||||||
Net Income (Loss) | $ | 35,575 | $ | 38,004 | $ | (104 | ) | $ | (37,900 | ) | $ | 35,575 | |||||||||
Comprehensive Income (Loss) | $ | 42,610 | $ | 45,039 | $ | (104 | ) | $ | (44,935 | ) | $ | 42,610 | |||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||||||
Guarantor | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Operating Revenue | $ | — | $ | 599,361 | $ | (3 | ) | $ | (60 | ) | $ | 599,298 | |||||||||
Operating Expenses: | |||||||||||||||||||||
Aircraft fuel, including taxes and delivery | — | 181,334 | — | — | 181,334 | ||||||||||||||||
Wages and benefits | — | 112,150 | — | — | 112,150 | ||||||||||||||||
Aircraft rent | — | 27,575 | — | — | 27,575 | ||||||||||||||||
Maintenance materials and repairs | — | 51,705 | — | — | 51,705 | ||||||||||||||||
Aircraft and passenger servicing | — | 31,080 | — | — | 31,080 | ||||||||||||||||
Commissions and other selling | — | 32,302 | — | (14 | ) | 32,288 | |||||||||||||||
Depreciation and amortization | — | 22,092 | — | — | 22,092 | ||||||||||||||||
Other rentals and landing fees | — | 21,996 | — | — | 21,996 | ||||||||||||||||
Other | 1,072 | 43,530 | 88 | (46 | ) | 44,644 | |||||||||||||||
Total | 1,072 | 523,764 | 88 | (60 | ) | 524,864 | |||||||||||||||
Operating Income (Loss) | (1,072 | ) | 75,597 | (91 | ) | — | 74,434 | ||||||||||||||
Nonoperating Income (Expense): | |||||||||||||||||||||
Undistributed net income of subsidiaries | 42,686 | — | — | (42,686 | ) | — | |||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (2,207 | ) | (11,272 | ) | — | — | (13,479 | ) | |||||||||||||
Interest income | 27 | 146 | — | — | 173 | ||||||||||||||||
Capitalized interest | — | 3,005 | — | — | 3,005 | ||||||||||||||||
Gains on fuel derivatives | — | 2,536 | — | — | 2,536 | ||||||||||||||||
Other, net | — | 749 | — | — | 749 | ||||||||||||||||
Total | 40,506 | (4,836 | ) | — | (42,686 | ) | (7,016 | ) | |||||||||||||
Income (Loss) Before Income Taxes | 39,434 | 70,761 | (91 | ) | (42,686 | ) | 67,418 | ||||||||||||||
Income tax expense (benefit) | (1,170 | ) | 27,984 | — | — | 26,814 | |||||||||||||||
Net Income (Loss) | $ | 40,604 | $ | 42,777 | $ | (91 | ) | $ | (42,686 | ) | $ | 40,604 | |||||||||
Comprehensive Income (Loss) | $ | 37,520 | $ | 39,693 | $ | (91 | ) | $ | (39,602 | ) | $ | 37,520 | |||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||||||
Guarantor | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Operating Revenue | $ | — | $ | 1,737,520 | $ | 2,801 | $ | (281 | ) | $ | 1,740,040 | ||||||||||
Operating Expenses: | |||||||||||||||||||||
Aircraft fuel, including taxes and delivery | — | 527,497 | — | — | 527,497 | ||||||||||||||||
Wages and benefits | — | 334,441 | — | — | 334,441 | ||||||||||||||||
Aircraft rent | — | 79,098 | — | — | 79,098 | ||||||||||||||||
Maintenance materials and repairs | — | 167,499 | 503 | — | 168,002 | ||||||||||||||||
Aircraft and passenger servicing | — | 92,929 | — | — | 92,929 | ||||||||||||||||
Commissions and other selling | — | 94,149 | 43 | (69 | ) | 94,123 | |||||||||||||||
Depreciation and amortization | — | 69,496 | 1,464 | — | 70,960 | ||||||||||||||||
Other rentals and landing fees | 5 | 65,850 | — | — | 65,855 | ||||||||||||||||
Other | 4,015 | 134,729 | 803 | (212 | ) | 139,335 | |||||||||||||||
Total | 4,020 | 1,565,688 | 2,813 | (281 | ) | 1,572,240 | |||||||||||||||
Operating Income (Loss) | (4,020 | ) | 171,832 | (12 | ) | — | 167,800 | ||||||||||||||
Nonoperating Income (Expense): | |||||||||||||||||||||
Undistributed net income of subsidiaries | 64,787 | — | — | (64,787 | ) | — | |||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (6,650 | ) | (41,461 | ) | — | — | (48,111 | ) | |||||||||||||
Interest income | 126 | 962 | — | — | 1,088 | ||||||||||||||||
Capitalized interest | — | 6,584 | — | — | 6,584 | ||||||||||||||||
Losses on fuel derivatives | — | (28,506 | ) | — | — | (28,506 | ) | ||||||||||||||
Other, net | — | (3,804 | ) | — | — | (3,804 | ) | ||||||||||||||
Total | 58,263 | (66,225 | ) | — | (64,787 | ) | (72,749 | ) | |||||||||||||
Income (Loss) Before Income Taxes | 54,243 | 105,607 | (12 | ) | (64,787 | ) | 95,051 | ||||||||||||||
Income tax expense (benefit) | (3,584 | ) | 40,808 | — | — | 37,224 | |||||||||||||||
Net Income (Loss) | $ | 57,827 | $ | 64,799 | $ | (12 | ) | $ | (64,787 | ) | $ | 57,827 | |||||||||
Comprehensive Income (Loss) | $ | 56,435 | $ | 63,407 | $ | (12 | ) | $ | (63,395 | ) | $ | 56,435 | |||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||||||
Guarantor | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Operating Revenue | $ | — | $ | 1,623,602 | $ | 634 | $ | (256 | ) | $ | 1,623,980 | ||||||||||
Operating Expenses: | |||||||||||||||||||||
Aircraft fuel, including taxes and delivery | — | 525,046 | — | — | 525,046 | ||||||||||||||||
Wages and benefits | — | 318,269 | — | — | 318,269 | ||||||||||||||||
Aircraft rent | — | 81,879 | — | — | 81,879 | ||||||||||||||||
Maintenance materials and repairs | — | 160,000 | — | — | 160,000 | ||||||||||||||||
Aircraft and passenger servicing | — | 89,367 | — | — | 89,367 | ||||||||||||||||
Commissions and other selling | — | 98,333 | — | (48 | ) | 98,285 | |||||||||||||||
Depreciation and amortization | — | 60,993 | — | — | 60,993 | ||||||||||||||||
Other rentals and landing fees | — | 60,773 | — | — | 60,773 | ||||||||||||||||
Other | 6,557 | 122,837 | 283 | (208 | ) | 129,469 | |||||||||||||||
Total | 6,557 | 1,517,497 | 283 | (256 | ) | 1,524,081 | |||||||||||||||
Operating Income (Loss) | (6,557 | ) | 106,105 | 351 | — | 99,899 | |||||||||||||||
Nonoperating Income (Expense): | |||||||||||||||||||||
Undistributed net income of subsidiaries | 43,310 | — | — | (43,310 | ) | — | |||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (6,475 | ) | (30,544 | ) | — | — | (37,019 | ) | |||||||||||||
Interest income | 91 | 335 | — | — | 426 | ||||||||||||||||
Capitalized interest | — | 9,336 | — | — | 9,336 | ||||||||||||||||
Losses on fuel derivatives | — | (10,931 | ) | — | — | (10,931 | ) | ||||||||||||||
Other, net | — | (3,457 | ) | — | — | (3,457 | ) | ||||||||||||||
Total | 36,926 | (35,261 | ) | — | (43,310 | ) | (41,645 | ) | |||||||||||||
Income Before Income Taxes | 30,369 | 70,844 | 351 | (43,310 | ) | 58,254 | |||||||||||||||
Income tax expense (benefit) | (4,406 | ) | 27,885 | — | — | 23,479 | |||||||||||||||
Net Income (Loss) | $ | 34,775 | $ | 42,959 | $ | 351 | $ | (43,310 | ) | $ | 34,775 | ||||||||||
Comprehensive Income | $ | 41,113 | $ | 49,297 | $ | 351 | $ | (49,648 | ) | $ | 41,113 | ||||||||||
Schedule of Condensed Consolidating Balance Sheets | ' | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Subsidiaries | |||||||||||||||||||
Guarantor | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 48,982 | $ | 275,773 | $ | 3,500 | $ | — | $ | 328,255 | |||||||||||
Restricted cash | — | 6,566 | — | — | 6,566 | ||||||||||||||||
Short-term investments | — | 253,300 | — | — | 253,300 | ||||||||||||||||
Accounts receivable, net | 236 | 82,743 | 51 | (128 | ) | 82,902 | |||||||||||||||
Spare parts and supplies, net | — | 19,359 | 928 | — | 20,287 | ||||||||||||||||
Deferred tax assets, net | — | 17,325 | — | — | 17,325 | ||||||||||||||||
Prepaid expenses and other | 3 | 47,557 | 117 | — | 47,677 | ||||||||||||||||
Total | 49,221 | 702,623 | 4,596 | (128 | ) | 756,312 | |||||||||||||||
Property and equipment at cost | — | 1,941,036 | 34,669 | — | 1,975,705 | ||||||||||||||||
Less accumulated depreciation and amortization | — | (343,263 | ) | (1,464 | ) | — | (344,727 | ) | |||||||||||||
Property and equipment, net | — | 1,597,773 | 33,205 | — | 1,630,978 | ||||||||||||||||
Long-term prepayments and other | 777 | 98,546 | — | — | 99,323 | ||||||||||||||||
Deferred tax assets, net | 18,462 | — | — | (18,462 | ) | — | |||||||||||||||
Goodwill and other intangible assets, net | — | 128,623 | — | — | 128,623 | ||||||||||||||||
Intercompany receivable | 58,518 | — | — | (58,518 | ) | — | |||||||||||||||
Investment in consolidated subsidiaries | 414,702 | — | — | (414,702 | ) | — | |||||||||||||||
TOTAL ASSETS | $ | 541,680 | $ | 2,527,565 | $ | 37,801 | $ | (491,810 | ) | $ | 2,615,236 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 596 | $ | 77,565 | $ | 317 | $ | (128 | ) | $ | 78,350 | ||||||||||
Air traffic liability | — | 485,624 | 1,901 | — | 487,525 | ||||||||||||||||
Other accrued liabilities | 420 | 114,152 | 145 | — | 114,717 | ||||||||||||||||
Current maturities of long-term debt, less discount, and capital lease obligations | 79,579 | 91,475 | — | — | 171,054 | ||||||||||||||||
Total | 80,595 | 768,816 | 2,363 | (128 | ) | 851,646 | |||||||||||||||
Long-term debt and capital lease obligations | — | 885,486 | — | — | 885,486 | ||||||||||||||||
Intercompany payable | — | 58,518 | — | (58,518 | ) | — | |||||||||||||||
Other liabilities and deferred credits: | 0 | ||||||||||||||||||||
Accumulated pension and other postretirement benefit obligations | — | 268,703 | — | — | 268,703 | ||||||||||||||||
Other liabilities and deferred credits | 326 | 69,053 | 750 | — | 70,129 | ||||||||||||||||
Deferred tax liabilities, net | — | 96,975 | — | (18,462 | ) | 78,513 | |||||||||||||||
Total | 326 | 434,731 | 750 | (18,462 | ) | 417,345 | |||||||||||||||
Shareholders’ equity | 460,759 | 380,014 | 34,688 | (414,702 | ) | 460,759 | |||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 541,680 | $ | 2,527,565 | $ | 37,801 | $ | (491,810 | ) | $ | 2,615,236 | ||||||||||
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: | 0 | ||||||||||||||||||||
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 | ||||||||||
Schedule of Condensed Consolidating Statements of Cash Flows | ' | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Guarantor | |||||||||||||||||||
Guarantor | Subsidiaries | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net Cash Provided By (Used In) Operating Activities | $ | (6,859 | ) | $ | 257,694 | $ | 1,328 | $ | — | $ | 252,163 | ||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||||||
Net payments to subsidiaries | (34,443 | ) | — | — | 34,443 | — | |||||||||||||||
Additions to property and equipment, including pre-delivery deposits | — | (358,538 | ) | (2,752 | ) | — | (361,290 | ) | |||||||||||||
Net proceeds from disposition of property and equipment | — | 978 | — | — | 978 | ||||||||||||||||
Purchases of investments | — | (346,010 | ) | — | — | (346,010 | ) | ||||||||||||||
Sales of investments | — | 92,103 | — | — | 92,103 | ||||||||||||||||
Net cash used in investing activities | (34,443 | ) | (611,467 | ) | (2,752 | ) | 34,443 | (614,219 | ) | ||||||||||||
Cash Flows From Financing Activities: | |||||||||||||||||||||
Proceeds from exercise of stock options | 5,487 | — | — | — | 5,487 | ||||||||||||||||
Long-term borrowings | — | 293,430 | — | — | 293,430 | ||||||||||||||||
Repayments of long-term debt and capital lease obligations | — | (46,392 | ) | — | — | (46,392 | ) | ||||||||||||||
Debt issuance costs | — | (32 | ) | — | — | (32 | ) | ||||||||||||||
Net payments from parent company | — | 34,443 | — | (34,443 | ) | — | |||||||||||||||
Change in restricted cash | — | 14,434 | — | — | 14,434 | ||||||||||||||||
Net cash provided by financing activities | 5,487 | 295,883 | — | (34,443 | ) | 266,927 | |||||||||||||||
Net decrease in cash and cash equivalents | (35,815 | ) | (57,890 | ) | (1,424 | ) | — | (95,129 | ) | ||||||||||||
Cash and cash equivalents - Beginning of Period | 84,797 | 333,663 | 4,924 | — | 423,384 | ||||||||||||||||
Cash and cash equivalents - End of Period | $ | 48,982 | $ | 275,773 | $ | 3,500 | $ | — | $ | 328,255 | |||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
Parent Issuer / | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantor | Issuer / | Guarantor | |||||||||||||||||||
Guarantor | Subsidiaries | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net Cash Provided By (Used In) Operating Activities | $ | (7,244 | ) | $ | 215,589 | $ | (870 | ) | $ | — | $ | 207,475 | |||||||||
Cash Flows From Investing Activities: | |||||||||||||||||||||
Net payments from subsidiaries | 5,553 | — | — | (5,553 | ) | — | |||||||||||||||
Additions to property and equipment, including pre-delivery deposits | — | (220,272 | ) | (12,445 | ) | — | (232,717 | ) | |||||||||||||
Net cash provided by (used in) investing activities | 5,553 | (220,272 | ) | (12,445 | ) | (5,553 | ) | (232,717 | ) | ||||||||||||
Cash Flows From Financing Activities: | |||||||||||||||||||||
Proceeds from exercise of stock options | 2,376 | — | — | — | 2,376 | ||||||||||||||||
Long-term borrowings | — | 132,000 | — | — | 132,000 | ||||||||||||||||
Repayments of long-term debt and capital lease obligations | — | (45,200 | ) | — | — | (45,200 | ) | ||||||||||||||
Debt issuance costs | — | (12,416 | ) | — | — | (12,416 | ) | ||||||||||||||
Net payments to parent company | — | (5,553 | ) | — | 5,553 | — | |||||||||||||||
Change in restricted cash | — | (16,000 | ) | — | — | (16,000 | ) | ||||||||||||||
Net cash provided by financing activities | 2,376 | 52,831 | — | 5,553 | 60,760 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 685 | 48,148 | (13,315 | ) | — | 35,518 | |||||||||||||||
Cash and cash equivalents - Beginning of Period | 83,626 | 303,967 | 18,287 | — | 405,880 | ||||||||||||||||
Cash and cash equivalents - End of Period | $ | 84,311 | $ | 352,115 | $ | 4,972 | $ | — | $ | 441,398 | |||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2014 | |
deliverable_or_element | |
Accounting Policies [Abstract] | ' |
Number of deliverables or elements | 4 |
Estimated transportation period relating to Mileage Credits | '22 months |
ShortTerm_Investments_Details
Short-Term Investments (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Short-Term Investments | ' |
Amortized Cost | $253,395 |
Gross Unrealized Gains | 109 |
Gross Unrealized Losses | -204 |
Fair Value | 253,300 |
Contractual maturities of short-term investments | ' |
Under 1 Year | 127,178 |
1 to 5 Years | 126,122 |
Total | 253,300 |
Corporate debt | ' |
Short-Term Investments | ' |
Amortized Cost | 184,141 |
Gross Unrealized Gains | 91 |
Gross Unrealized Losses | -193 |
Fair Value | 184,039 |
Contractual maturities of short-term investments | ' |
Under 1 Year | 80,081 |
1 to 5 Years | 103,958 |
Total | 184,039 |
U.S. government and agency debt | ' |
Short-Term Investments | ' |
Amortized Cost | 23,797 |
Gross Unrealized Gains | 11 |
Gross Unrealized Losses | -2 |
Fair Value | 23,806 |
Contractual maturities of short-term investments | ' |
Under 1 Year | 16,325 |
1 to 5 Years | 7,481 |
Total | 23,806 |
Municipal bonds | ' |
Short-Term Investments | ' |
Amortized Cost | 22,924 |
Gross Unrealized Gains | 7 |
Gross Unrealized Losses | -4 |
Fair Value | 22,927 |
Contractual maturities of short-term investments | ' |
Under 1 Year | 8,244 |
1 to 5 Years | 14,683 |
Total | 22,927 |
Other fixed income securities | ' |
Short-Term Investments | ' |
Amortized Cost | 22,533 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | -5 |
Fair Value | 22,528 |
Contractual maturities of short-term investments | ' |
Under 1 Year | 22,528 |
1 to 5 Years | 0 |
Total | $22,528 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Amounts reclassified from AOCI | ' | ' | ' | ' |
Foreign currency derivative gains, net | ($566,985) | ($543,315) | ($1,541,795) | ($1,464,715) |
Interest rate derivative losses, net | 17,104 | 13,479 | 48,111 | 37,019 |
Total before tax | -58,364 | -67,418 | -95,051 | -58,254 |
Tax expense (benefit) | 22,789 | 26,814 | 37,224 | 23,479 |
Total, net of tax | -35,575 | -40,604 | -57,827 | -34,775 |
Amount reclassified from accumulated other comprehensive loss | ' | ' | ' | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' |
Total, net of tax | -637 | -382 | -3,393 | -382 |
Gains on derivatives designated as hedging instruments | Amount reclassified from accumulated other comprehensive loss | ' | ' | ' | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' |
Total before tax | -1,096 | -2,788 | -5,905 | -5,955 |
Tax expense (benefit) | 424 | 1,025 | 2,239 | 2,226 |
Total, net of tax | -672 | -1,763 | -3,666 | -3,729 |
Gains on derivatives designated as hedging instruments | Amount reclassified from accumulated other comprehensive loss | Foreign currency derivatives gains | ' | ' | ' | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' |
Foreign currency derivative gains, net | -1,297 | -3,005 | -6,523 | -6,395 |
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 | 201 | 217 | 618 | 440 |
Defined benefit pension | Amount reclassified from accumulated other comprehensive loss | ' | ' | ' | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' |
Actuarial loss (gain) | -64 | 2,281 | 388 | 6,384 |
Prior service cost (credit) | 113 | -1 | 111 | -3 |
Total before tax | 49 | 2,280 | 499 | 6,381 |
Tax expense (benefit) | -5 | -899 | -215 | -3,034 |
Total, net of tax | 44 | 1,381 | 284 | 3,347 |
Short-term investments | Amount reclassified from accumulated other comprehensive loss | ' | ' | ' | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' |
Realized gain on sales of investments, net | -10 | 0 | -12 | 0 |
Total before tax | -10 | 0 | -12 | 0 |
Tax expense (benefit) | 1 | 0 | 1 | 0 |
Total, net of tax | ($9) | $0 | ($11) | $0 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Rollforward of Accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Beginning balance | ($51,113) | ($104,632) | ($42,686) | ($114,054) |
Other comprehensive income (loss) before reclassifications, net of tax | 7,672 | -2,702 | 2,001 | 6,720 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | -637 | -382 | -3,393 | -382 |
Total other comprehensive income (loss) | 7,035 | -3,084 | -1,392 | 6,338 |
Ending balance | -44,078 | -107,716 | -44,078 | -107,716 |
Gains (losses) on derivatives designated as hedging instruments | Interest rate derivative | ' | ' | ' | ' |
Rollforward of Accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Beginning balance | 471 | 766 | 1,096 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | 39 | -220 | -844 | 409 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 121 | 135 | 379 | 272 |
Total other comprehensive income (loss) | 160 | -85 | -465 | 681 |
Ending balance | 631 | 681 | 631 | 681 |
Gains (losses) on derivatives designated as hedging instruments | Foreign currency derivatives | ' | ' | ' | ' |
Rollforward of Accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Beginning balance | 95 | 6,690 | 8,277 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | 7,714 | -2,482 | 2,784 | 6,311 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | -793 | -1,898 | -4,045 | -4,001 |
Total other comprehensive income (loss) | 6,921 | -4,380 | -1,261 | 2,310 |
Ending balance | 7,016 | 2,310 | 7,016 | 2,310 |
Defined Benefit Pension Items | ' | ' | ' | ' |
Rollforward of Accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Beginning balance | -51,714 | -112,088 | -52,059 | -114,054 |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | 105 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 44 | 1,381 | 284 | 3,347 |
Total other comprehensive income (loss) | 44 | 1,381 | 389 | 3,347 |
Ending balance | -51,670 | -110,707 | -51,670 | -110,707 |
Short-term investments | ' | ' | ' | ' |
Rollforward of Accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Beginning balance | 35 | ' | 0 | ' |
Other comprehensive income (loss) before reclassifications, net of tax | -81 | ' | -44 | ' |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | -9 | ' | -11 | ' |
Total other comprehensive income (loss) | -90 | ' | -55 | ' |
Ending balance | ($55) | ' | ($55) | ' |
Earning_Per_Share_Details
Earning Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net Income | $35,575 | $40,604 | $57,827 | $34,775 |
Denominator: | ' | ' | ' | ' |
Weighted average common stock shares outstanding - Basic | 53,878 | 52,303 | 53,359 | 51,994 |
Assumed exercise of stock options and awards | 848 | 1,209 | 1,061 | 1,166 |
Assumed conversion of convertible note premium | 4,965 | 0 | 4,498 | 0 |
Assumed conversion of warrants | 3,359 | 0 | 2,767 | 0 |
Weighted average common stock shares outstanding - Diluted | 63,050 | 53,512 | 61,685 | 53,160 |
Net Income per common share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.66 | $0.78 | $1.08 | $0.67 |
Diluted (in dollars per share) | $0.56 | $0.76 | $0.94 | $0.65 |
Earning_Per_Share_Details_2
Earning Per Share (Details 2) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Convertible note premium | Convertible note premium | Stock options | Stock options | Stock options | Stock options | Deferred stock | Deferred stock | Deferred stock | Deferred stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Convertible note premium | Convertible note premium | Convertible note premium | Convertible note premium | Warrants | Warrants | Warrants | Warrants | |
Convertible Note transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | 0 | 0 | 0 | 522,000 | 0 | 0 | 0 | 58,000 | 7,000 | 1,031,000 | 2,000 | 1,494,000 | 0 | 10,943,000 | 0 | 10,943,000 | 0 | 10,943,000 | 0 | 10,943,000 |
Stated interest rate (as a percent) | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount | $86.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares in which the entity entered into separate convertible note hedge transactions and separate warrant transactions | 10,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price (in dollars per share) | ' | $7.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | $10 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets measured at fair value | ' | ' |
Short-term investments | $253,300 | $0 |
Recurring basis | ' | ' |
Assets measured at fair value | ' | ' |
Cash equivalents | 155,967 | 269,384 |
Restricted cash | 6,566 | 21,000 |
Short-term investments | 253,300 | ' |
Total assets measured at fair value | 429,035 | 317,586 |
Liabilities measured at fair value | ' | ' |
Total liabilities measured at fair value | 20,187 | 21,547 |
Recurring basis | Fuel derivative contracts | Crude oil call options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 50 | 7,121 |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 50 | 7,121 |
Recurring basis | Fuel derivative contracts | Crude oil put options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 4 | 186 |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 4 | 186 |
Recurring basis | Fuel derivative contracts | Heating oil put options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 845 | 417 |
Recurring basis | Fuel derivative contracts | Heating oil swaps | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | ' | 5,863 |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 19,515 | 187 |
Recurring basis | Foreign currency derivatives | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 11,851 | 12,494 |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 118 | 1,188 |
Recurring basis | Interest rate derivative | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 452 | 1,121 |
Recurring basis | Negative interest arbitrage derivative | ' | ' |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 500 | 12,865 |
Recurring basis | Level 1 | ' | ' |
Assets measured at fair value | ' | ' |
Cash equivalents | 152,967 | 269,384 |
Restricted cash | 6,566 | 21,000 |
Total assets measured at fair value | 159,533 | 290,384 |
Recurring basis | Level 2 | ' | ' |
Assets measured at fair value | ' | ' |
Cash equivalents | 3,000 | ' |
Short-term investments | 253,300 | ' |
Total assets measured at fair value | 269,502 | 27,202 |
Liabilities measured at fair value | ' | ' |
Total liabilities measured at fair value | 19,687 | 8,682 |
Recurring basis | Level 2 | Fuel derivative contracts | Crude oil call options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 50 | 7,121 |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 50 | 7,121 |
Recurring basis | Level 2 | Fuel derivative contracts | Crude oil put options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 4 | 186 |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 4 | 186 |
Recurring basis | Level 2 | Fuel derivative contracts | Heating oil put options | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 845 | 417 |
Recurring basis | Level 2 | Fuel derivative contracts | Heating oil swaps | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | ' | 5,863 |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 19,515 | 187 |
Recurring basis | Level 2 | Foreign currency derivatives | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 11,851 | 12,494 |
Liabilities measured at fair value | ' | ' |
Derivative contracts | 118 | 1,188 |
Recurring basis | Level 2 | Interest rate derivative | ' | ' |
Assets measured at fair value | ' | ' |
Derivative contracts | 452 | 1,121 |
Recurring basis | Level 3 | ' | ' |
Liabilities measured at fair value | ' | ' |
Total liabilities measured at fair value | 500 | 12,865 |
Recurring basis | Level 3 | Negative interest arbitrage derivative | ' | ' |
Liabilities measured at fair value | ' | ' |
Derivative contracts | $500 | $12,865 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (Negative arbitrage derivative, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Negative arbitrage derivative | ' | ' | ' | ' |
Activity for Level 3 financial liability | ' | ' | ' | ' |
Beginning balance | $3,668 | $12,865 | $12,865 | $0 |
Issuance of enhanced equipment trust certificates | ' | 0 | ' | 12,865 |
Reduction of balance in connection with interest payment | -3,168 | ' | -12,365 | ' |
Ending balance | $500 | $12,865 | $500 | $12,865 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (Recurring basis, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements | ' | ' |
Carrying value of debt | $952,467 | $695,804 |
Fair value of debt | 1,030,224 | 738,563 |
Level 2 | ' | ' |
Fair Value Measurements | ' | ' |
Fair value of debt | 142,071 | 104,656 |
Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Fair value of debt | $888,153 | $633,907 |
Financial_Derivative_Instrumen2
Financial Derivative Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Derivative instrument | ' | ' | ' | ' |
Gains (losses) on fuel derivatives recorded as Nonoperating income (expense) | ($27,892,000) | $2,536,000 | ($28,506,000) | ($10,931,000) |
Derivatives Not Designated as Hedging Instruments | Fuel derivative contracts | ' | ' | ' | ' |
Derivative instrument | ' | ' | ' | ' |
Losses realized at settlement | -4,632,000 | -3,790,000 | -6,530,000 | -11,226,000 |
Reversal of prior period unrealized amounts | 56,000 | 4,278,000 | -1,816,000 | 5,472,000 |
Unrealized gains (losses) that will settle in future periods | -23,316,000 | 2,048,000 | -20,160,000 | -5,177,000 |
Gains (losses) on fuel derivatives recorded as Nonoperating income (expense) | -27,892,000 | 2,536,000 | -28,506,000 | -10,931,000 |
Derivatives Designated as Hedging Instruments | Interest rate derivative | ' | ' | ' | ' |
Derivative instrument | ' | ' | ' | ' |
Reclassified net gains (losses) from AOCI | -200,000 | ' | -600,000 | ' |
Accumulated other comprehensive income (loss) expected to be reclassified to earnings in the next 12 months | ' | ' | -700,000 | ' |
Reclassification estimated time period | ' | ' | '12 months | ' |
Derivatives Designated as Hedging Instruments | Foreign currency derivatives | ' | ' | ' | ' |
Derivative instrument | ' | ' | ' | ' |
Reclassified net gains (losses) from AOCI | 1,300,000 | ' | 6,500,000 | ' |
Accumulated other comprehensive income (loss) expected to be reclassified to earnings in the next 12 months | ' | ' | $8,100,000 | ' |
Reclassification estimated time period | ' | ' | '12 months | ' |
Financial_Derivative_Instrumen3
Financial Derivative Instruments (Details 2) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | ||||
Negative arbitrage derivative | 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 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 | 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 ($) | Interest rate derivative | Interest rate derivative | Interest rate derivative | Interest rate derivative | Interest rate derivative | Interest rate derivative | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Negative arbitrage derivative | Negative arbitrage derivative | Negative arbitrage derivative | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Foreign currency derivatives | Fuel derivative contracts | Fuel derivative contracts | USD ($) | ||||
USD ($) | USD ($) | Prepaid expenses and other | Prepaid expenses and other | Long-term prepayments and other | Long-term prepayments and other | Prepaid expenses and other | Prepaid expenses and other | Long-term prepayments and other | Long-term prepayments and other | Japanese yen | Japanese yen | Japanese yen | Japanese yen | Korean Won | Australian dollar | Australian dollar | Australian dollar | Australian dollar | New Zealand Dollars | Other accrued liabilities | Other accrued liabilities | Other Noncurrent Liabilities | Prepaid expenses and other | Prepaid expenses and other | Long-term prepayments and other | Other accrued liabilities | Japanese yen | Japanese yen | Japanese yen | Australian dollar | Australian dollar | Australian dollar | Prepaid expenses and other | Other accrued liabilities | pass_through_trust | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Prepaid expenses and other | Prepaid expenses and other | Long-term prepayments and other | Long-term prepayments and other | Prepaid expenses and other | Prepaid expenses and other | Prepaid expenses and other | Long-term prepayments and other | Long-term prepayments and other | Prepaid expenses and other | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Prepaid expenses and other | Prepaid expenses and other | Long-term prepayments and other | Prepaid expenses and other | Prepaid expenses and other | Long-term prepayments and other | USD ($) | USD ($) | |||||||||
JPY (¥) | JPY (¥) | JPY (¥) | JPY (¥) | KRW | AUD | AUD | AUD | AUD | NZD | JPY (¥) | JPY (¥) | JPY (¥) | AUD | AUD | AUD | gal | gal | ||||||||||||||||||||||||
Fair Value of Derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of pass-through trusts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | |||
Aggregate principal amount issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $444,500,000 | |||
Amount reduced in connection with the first interest payment made to the trust | 3,200,000 | 12,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Notional Amount | ' | ' | 59,000,000 | 63,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | 7,218,469,000 | 10,500,321,000 | 3,384,130,000 | 1,980,949,000 | 10,895,370,000 | 52,209,000 | 62,659,000 | 9,707,000 | 16,681,000 | 4,821,000 | 444,540,000 | 444,540,000 | ' | ' | ' | ' | ' | 9,415,313,000 | 6,180,000 | 3,910,000,000 | 48,981,000 | 58,000 | 9,700,000 | ' | ' | ' | |||
Notional Amount (Volume) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84,714,000 | 93,211,000 | ' | |||
Gross fair value of assets, current | ' | ' | ' | ' | 73,000 | 196,000 | ' | ' | 7,448,000 | 9,946,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,529,000 | 577,000 | ' | 298,000 | ' | ' | ' | ' | ' | ' | 13,587,000 | 899,000 | ' | |||
Gross fair value of assets, noncurrent | ' | ' | ' | ' | ' | ' | 379,000 | [1] | 925,000 | [2] | ' | ' | 2,514,000 | 1,673,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 360,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gross fair value of liabilities, current | ' | ' | ' | ' | ' | ' | ' | ' | -14,000 | -450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -500,000 | -12,250,000 | ' | -104,000 | -229,000 | ' | -509,000 | ' | ' | ' | ' | ' | ' | -7,494,000 | -19,569,000 | ' | |||
Gross fair value of liabilities, noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -615,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net derivative position | ' | ' | ' | ' | $73,000 | $196,000 | $379,000 | [1] | $925,000 | [2] | $7,434,000 | $9,496,000 | $2,514,000 | $1,673,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($500,000) | ($12,250,000) | ($615,000) | [3] | $1,425,000 | $348,000 | $360,000 | ($211,000) | ' | ' | ' | ' | ' | ' | $6,093,000 | ($18,670,000) | ' |
[1] | Represents the noncurrent portion of the $59.0 million interest rate derivative with final maturity in April 2023. | ||||||||||||||||||||||||||||||||||||||||
[2] | Represents the noncurrent portion of the $64 million interest rate derivative with final maturity in April 2023. | ||||||||||||||||||||||||||||||||||||||||
[3] | Represents the noncurrent portion of the $445 million negative arbitrage derivative with final maturity in January 2015. |
Financial_Derivative_Instrumen4
Financial Derivative Instruments (Details 3) (Cash Flow Hedging, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Foreign currency derivatives | ' | ' | ' | ' |
Gains (losses) for designated hedge contracts | ' | ' | ' | ' |
(Gain) loss recognized in AOCI on derivatives (effective portion) | ($12,428) | $3,960 | ($4,720) | ($10,204) |
(Gain) loss reclassified from AOCI into income (effective portion) | -1,297 | -3,005 | -6,523 | -6,395 |
(Gain) loss recognized in nonoperating (income) expense (ineffective portion) | 0 | 0 | 0 | -61 |
Interest rate derivative | ' | ' | ' | ' |
Gains (losses) for designated hedge contracts | ' | ' | ' | ' |
(Gain) loss recognized in AOCI on derivatives (effective portion) | -283 | 82 | 668 | -929 |
(Gain) loss reclassified from AOCI into income (effective portion) | 201 | 217 | 618 | 440 |
(Gain) loss recognized in nonoperating (income) expense (ineffective portion) | $0 | $0 | $0 | $0 |
Financial_Derivative_Instrumen5
Financial Derivative Instruments Financial Derivative Instruments - Risk and Collateral (Details 4) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Credit Derivatives [Line Items] | ' | ' |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | $7,000,000 | $0 |
Other accrued liabilities | Derivatives not designated as hedging instruments | Fuel derivative contracts | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Derivative Assets (Liabilities), at Fair Value, Net | ($18,670,000) | ' |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2014 | Oct. 06, 2014 |
Secured Debt [Member] | ||
Subsequent Event | ||
Debt Disclosure [Abstract] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $75,000,000 | ' |
Carrying value of convertible notes which principal amount redeem with cash | 79,600,000 | ' |
Subsequent Event [Line Items] | ' | ' |
Extinguishment of Debt, Amount | ' | 54,200,000 |
Scheduled maturities of long-term debt over the next five years | ' | ' |
Remaining months in 2014 | 99,810,000 | ' |
2015 | 82,965,000 | ' |
2016 | 81,267,000 | ' |
2017 | 81,266,000 | ' |
2018 | 87,212,000 | ' |
Thereafter | 526,618,000 | ' |
Total | $959,138,000 | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Components of Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | $3,162,000 | $4,473,000 | $9,066,000 | $11,676,000 |
Interest cost | 6,839,000 | 6,340,000 | 20,811,000 | 18,939,000 |
Expected return on plan assets | -4,842,000 | -4,065,000 | -14,532,000 | -12,196,000 |
Recognized net actuarial loss | 49,000 | 2,280,000 | 499,000 | 6,381,000 |
Net periodic benefit cost | 5,208,000 | 9,028,000 | 15,844,000 | 24,800,000 |
Employer contribution | $2,300,000 | $11,900,000 | $8,900,000 | $18,600,000 |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Sep. 30, 2014 | |
In Thousands, unless otherwise specified | Capital | Capital | Capital | Capital | Capital | Capital | Capital | Capital | Operating | ||
A330-200 aircraft | A330-200 aircraft | A350XWB-800 aircraft | A350XWB-800 aircraft | A321neo aircraft | A321neo aircraft | Airbus A330neo aircraft | |||||
aircraft_purchase_right | Rolls-Royce spare engines: | aircraft_firm_order | Rolls-Royce spare engines: | aircraft_firm_order | Pratt & Whitney spare engines: | aircraft_firm_order | |||||
aircraft_firm_order | spare_engine_ordered | aircraft_firm_order_canceled | spare_engine_ordered | aircraft_purchase_right | spare_engine_ordered | aircraft_purchase_right | |||||
aircraft_purchase_right | |||||||||||
Commitments and Contingent Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of firm aircraft orders | ' | ' | 4 | ' | 6 | ' | 16 | ' | ' | ' | |
Number of aircraft purchase rights | ' | ' | 3 | ' | 6 | ' | 9 | ' | ' | ' | |
Firm orders, number of spare engines | ' | ' | ' | 1 | ' | 2 | ' | 2 | ' | ' | |
Number of firm aircraft orders canceled in the conversion | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | |
Number of firm aircraft orders added in the conversion | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | |
Number of aircraft purchase rights added in the conversion | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | |
Total Committed Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Remaining months in 2014 | $99,896 | $84,346 | ' | ' | ' | ' | ' | ' | ' | $15,550 | |
2015 | 313,781 | 253,246 | ' | ' | ' | ' | ' | ' | ' | 60,535 | |
2016 | 196,828 | 147,824 | ' | ' | ' | ' | ' | ' | ' | 49,004 | |
2017 | 541,677 | 493,824 | ' | ' | ' | ' | ' | ' | ' | 47,853 | |
2018 | 590,040 | 547,118 | ' | ' | ' | ' | ' | ' | ' | 42,922 | |
Thereafter | 814,228 | 558,578 | ' | ' | ' | ' | ' | ' | ' | 255,650 | |
Total | 2,556,450 | 2,084,936 | ' | ' | ' | ' | ' | ' | ' | 471,514 | |
Less: Committed Financing for Upcoming Aircraft Deliveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Remaining months in 2014 | 75,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 75,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Committed Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Remaining months in 2014 | 24,896 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
2015 | 313,781 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
2016 | 196,828 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
2017 | 541,677 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
2018 | 590,040 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Thereafter | 814,228 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total | $2,481,450 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | See below for a detailed discussion of the committed financings Hawaiian has received for its upcoming capital commitments for aircraft deliveries. |
Commitments_and_Contingent_Lia3
Commitments and Contingent Liabilities (Details 2) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
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) | Enhanced Equipment Trust Certificates (EETC) | |||
airbus_aircraft | airbus_aircraft | Class A pass-through trust | Class B pass-through trust | ||||||
pass_through_trust | 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 | ' | ' | ' | ' | ' | 4 | 6 | ' | ' |
Proceeds from the issuance of the equipment notes | ' | ' | ' | ' | 293,400,000 | ' | ' | ' | ' |
Restricted cash | ' | ' | 5,000,000 | 5,000,000 | ' | ' | 16,000,000 | ' | ' |
Change in restricted cash | ($14,434,000) | $16,000,000 | ' | ' | ' | ' | ' | ' | ' |
Maximum limit of holdback (as a percent) | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Property and equipment acquired through a capital lease | $0 | $11,840 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ' | ' | ' | ' |
Operating Revenue | $639,462 | $599,298 | $1,740,040 | $1,623,980 |
Operating Expenses: | ' | ' | ' | ' |
Aircraft fuel, including taxes and delivery | 182,219 | 181,334 | 527,497 | 525,046 |
Wages and benefits | 114,469 | 112,150 | 334,441 | 318,269 |
Aircraft rent | 26,724 | 27,575 | 79,098 | 81,879 |
Maintenance materials and repairs | 51,293 | 51,705 | 168,002 | 160,000 |
Aircraft and passenger servicing | 31,848 | 31,080 | 92,929 | 89,367 |
Commissions and other selling | 32,015 | 32,288 | 94,123 | 98,285 |
Depreciation and amortization | 24,384 | 22,092 | 70,960 | 60,993 |
Other rentals and landing fees | 23,637 | 21,996 | 65,855 | 60,773 |
Other | 46,704 | 44,644 | 139,335 | 129,469 |
Total | 533,293 | 524,864 | 1,572,240 | 1,524,081 |
Operating Income | 106,169 | 74,434 | 167,800 | 99,899 |
Nonoperating Income (Expense): | ' | ' | ' | ' |
Interest expense and amortization of debt discounts and issuance costs | -17,104 | -13,479 | -48,111 | -37,019 |
Interest income | 471 | 173 | 1,088 | 426 |
Capitalized interest | 1,834 | 3,005 | 6,584 | 9,336 |
Gains (losses) on fuel derivatives | -27,892 | 2,536 | -28,506 | -10,931 |
Other, net | -5,114 | 749 | -3,804 | -3,457 |
Total | -47,805 | -7,016 | -72,749 | -41,645 |
Income Before Income Taxes | 58,364 | 67,418 | 95,051 | 58,254 |
Income tax expense | 22,789 | 26,814 | 37,224 | 23,479 |
Net Income | 35,575 | 40,604 | 57,827 | 34,775 |
Comprehensive Income (Loss) | 42,610 | 37,520 | 56,435 | 41,113 |
Parent Issuer / Guarantor | ' | ' | ' | ' |
Operating Expenses: | ' | ' | ' | ' |
Other rentals and landing fees | 5 | 0 | 5 | 0 |
Other | 1,246 | 1,072 | 4,015 | 6,557 |
Total | 1,251 | 1,072 | 4,020 | 6,557 |
Operating Income | -1,251 | -1,072 | -4,020 | -6,557 |
Nonoperating Income (Expense): | ' | ' | ' | ' |
Undistributed net income of subsidiaries | 37,900 | 42,686 | 64,787 | 43,310 |
Interest expense and amortization of debt discounts and issuance costs | -2,260 | -2,207 | -6,650 | -6,475 |
Interest income | 47 | 27 | 126 | 91 |
Total | 35,687 | 40,506 | 58,263 | 36,926 |
Income Before Income Taxes | 34,436 | 39,434 | 54,243 | 30,369 |
Income tax expense | -1,139 | -1,170 | -3,584 | -4,406 |
Net Income | 35,575 | 40,604 | 57,827 | 34,775 |
Comprehensive Income (Loss) | 42,610 | 37,520 | 56,435 | 41,113 |
Subsidiary Issuer / Guarantor | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ' | ' | ' | ' |
Number of pass-through trusts | 2 | ' | 2 | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ' | 100.00% | ' |
Operating Revenue | 638,414 | 599,361 | 1,737,520 | 1,623,602 |
Operating Expenses: | ' | ' | ' | ' |
Aircraft fuel, including taxes and delivery | 182,219 | 181,334 | 527,497 | 525,046 |
Wages and benefits | 114,469 | 112,150 | 334,441 | 318,269 |
Aircraft rent | 26,724 | 27,575 | 79,098 | 81,879 |
Maintenance materials and repairs | 51,029 | 51,705 | 167,499 | 160,000 |
Aircraft and passenger servicing | 31,848 | 31,080 | 92,929 | 89,367 |
Commissions and other selling | 32,024 | 32,302 | 94,149 | 98,333 |
Depreciation and amortization | 23,654 | 22,092 | 69,496 | 60,993 |
Other rentals and landing fees | 23,632 | 21,996 | 65,850 | 60,773 |
Other | 45,291 | 43,530 | 134,729 | 122,837 |
Total | 530,890 | 523,764 | 1,565,688 | 1,517,497 |
Operating Income | 107,524 | 75,597 | 171,832 | 106,105 |
Nonoperating Income (Expense): | ' | ' | ' | ' |
Interest expense and amortization of debt discounts and issuance costs | -14,844 | -11,272 | -41,461 | -30,544 |
Interest income | 424 | 146 | 962 | 335 |
Capitalized interest | 1,834 | 3,005 | 6,584 | 9,336 |
Gains (losses) on fuel derivatives | -27,892 | 2,536 | -28,506 | -10,931 |
Other, net | -5,114 | 749 | -3,804 | -3,457 |
Total | -45,592 | -4,836 | -66,225 | -35,261 |
Income Before Income Taxes | 61,932 | 70,761 | 105,607 | 70,844 |
Income tax expense | 23,928 | 27,984 | 40,808 | 27,885 |
Net Income | 38,004 | 42,777 | 64,799 | 42,959 |
Comprehensive Income (Loss) | 45,039 | 39,693 | 63,407 | 49,297 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ' | ' | ' | ' |
Operating Revenue | 1,145 | -3 | 2,801 | 634 |
Operating Expenses: | ' | ' | ' | ' |
Maintenance materials and repairs | 264 | ' | 503 | ' |
Commissions and other selling | 11 | ' | 43 | ' |
Depreciation and amortization | 730 | ' | 1,464 | ' |
Other | 244 | 88 | 803 | 283 |
Total | 1,249 | 88 | 2,813 | 283 |
Operating Income | -104 | -91 | -12 | 351 |
Nonoperating Income (Expense): | ' | ' | ' | ' |
Income Before Income Taxes | -104 | -91 | -12 | 351 |
Net Income | -104 | -91 | -12 | 351 |
Comprehensive Income (Loss) | -104 | -91 | -12 | 351 |
Eliminations | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ' | ' | ' | ' |
Operating Revenue | -97 | -60 | -281 | -256 |
Operating Expenses: | ' | ' | ' | ' |
Commissions and other selling | -20 | -14 | -69 | -48 |
Other | -77 | -46 | -212 | -208 |
Total | -97 | -60 | -281 | -256 |
Nonoperating Income (Expense): | ' | ' | ' | ' |
Undistributed net income of subsidiaries | -37,900 | -42,686 | -64,787 | -43,310 |
Total | -37,900 | -42,686 | -64,787 | -43,310 |
Income Before Income Taxes | -37,900 | -42,686 | -64,787 | -43,310 |
Net Income | -37,900 | -42,686 | -64,787 | -43,310 |
Comprehensive Income (Loss) | ($44,935) | ($39,602) | ($63,395) | ($49,648) |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $328,255 | $423,384 | $441,398 | $405,880 |
Restricted cash | 6,566 | 19,434 | ' | ' |
Short-term investments | 253,300 | 0 | ' | ' |
Accounts receivable, net | 82,902 | 74,245 | ' | ' |
Spare parts and supplies, net | 20,287 | 19,767 | ' | ' |
Deferred tax assets, net | 17,325 | 17,325 | ' | ' |
Prepaid expenses and other | 47,677 | 51,652 | ' | ' |
Total | 756,312 | 605,807 | ' | ' |
Property and equipment at cost | 1,975,705 | 1,661,434 | ' | ' |
Less accumulated depreciation and amortization | -344,727 | -327,102 | ' | ' |
Property and equipment, net | 1,630,978 | 1,334,332 | ' | ' |
Long-term prepayments and other | 99,323 | 91,953 | ' | ' |
Restricted cash | 0 | 1,566 | ' | ' |
Goodwill and other intangible assets, net | 128,623 | 130,603 | ' | ' |
Total Assets | 2,615,236 | 2,164,261 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 78,350 | 89,787 | ' | ' |
Air traffic liability | 487,525 | 409,086 | ' | ' |
Other accrued liabilities | 114,717 | 97,571 | ' | ' |
Current maturities of long-term debt, less discount, and capital lease obligations | 171,054 | 62,187 | ' | ' |
Total | 851,646 | 658,631 | ' | ' |
Long-term debt and capital lease obligations | 885,486 | 744,286 | ' | ' |
Other liabilities and deferred credits: | ' | ' | ' | ' |
Accumulated pension and other postretirement benefit obligations | 268,703 | 264,106 | ' | ' |
Other liabilities and deferred credits | 70,129 | 59,424 | ' | ' |
Deferred tax liabilities, net | 78,513 | 40,950 | ' | ' |
Total | 417,345 | 364,480 | ' | ' |
Shareholders’ equity | 460,759 | 396,864 | ' | ' |
Total Liabilities and Shareholders’ Equity | 2,615,236 | 2,164,261 | ' | ' |
Parent Issuer / Guarantor | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 48,982 | 84,797 | 84,311 | 83,626 |
Accounts receivable, net | 236 | 1,192 | ' | ' |
Prepaid expenses and other | 3 | ' | ' | ' |
Total | 49,221 | 85,989 | ' | ' |
Long-term prepayments and other | 777 | 1,171 | ' | ' |
Deferred tax assets, net | 18,462 | 14,767 | ' | ' |
Intercompany receivable | 58,518 | 25,286 | ' | ' |
Investment in consolidated subsidiaries | 414,702 | 348,040 | ' | ' |
Total Assets | 541,680 | 475,253 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 596 | 532 | ' | ' |
Other accrued liabilities | 420 | 1,307 | ' | ' |
Current maturities of long-term debt, less discount, and capital lease obligations | 79,579 | ' | ' | ' |
Total | 80,595 | 1,839 | ' | ' |
Long-term debt and capital lease obligations | ' | 76,550 | ' | ' |
Other liabilities and deferred credits: | ' | ' | ' | ' |
Other liabilities and deferred credits | 326 | ' | ' | ' |
Total | 326 | ' | ' | ' |
Shareholders’ equity | 460,759 | 396,864 | ' | ' |
Total Liabilities and Shareholders’ Equity | 541,680 | 475,253 | ' | ' |
Subsidiary Issuer / Guarantor | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 275,773 | 333,663 | 352,115 | 303,967 |
Restricted cash | 6,566 | 19,434 | ' | ' |
Short-term investments | 253,300 | ' | ' | ' |
Accounts receivable, net | 82,743 | 73,241 | ' | ' |
Spare parts and supplies, net | 19,359 | 19,767 | ' | ' |
Deferred tax assets, net | 17,325 | 17,325 | ' | ' |
Prepaid expenses and other | 47,557 | 51,613 | ' | ' |
Total | 702,623 | 515,043 | ' | ' |
Property and equipment at cost | 1,941,036 | 1,629,517 | ' | ' |
Less accumulated depreciation and amortization | -343,263 | -327,102 | ' | ' |
Property and equipment, net | 1,597,773 | 1,302,415 | ' | ' |
Long-term prepayments and other | 98,546 | 90,782 | ' | ' |
Restricted cash | ' | 1,566 | ' | ' |
Goodwill and other intangible assets, net | 128,623 | 130,603 | ' | ' |
Total Assets | 2,527,565 | 2,040,409 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 77,565 | 88,990 | ' | ' |
Air traffic liability | 485,624 | 407,359 | ' | ' |
Other accrued liabilities | 114,152 | 96,264 | ' | ' |
Current maturities of long-term debt, less discount, and capital lease obligations | 91,475 | 62,187 | ' | ' |
Total | 768,816 | 654,800 | ' | ' |
Long-term debt and capital lease obligations | 885,486 | 667,736 | ' | ' |
Intercompany payable | 58,518 | 25,286 | ' | ' |
Other liabilities and deferred credits: | ' | ' | ' | ' |
Accumulated pension and other postretirement benefit obligations | 268,703 | 264,106 | ' | ' |
Other liabilities and deferred credits | 69,053 | 59,424 | ' | ' |
Deferred tax liabilities, net | 96,975 | 55,717 | ' | ' |
Total | 434,731 | 379,247 | ' | ' |
Shareholders’ equity | 380,014 | 313,340 | ' | ' |
Total Liabilities and Shareholders’ Equity | 2,527,565 | 2,040,409 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 3,500 | 4,924 | 4,972 | 18,287 |
Accounts receivable, net | 51 | 31 | ' | ' |
Spare parts and supplies, net | 928 | ' | ' | ' |
Prepaid expenses and other | 117 | 39 | ' | ' |
Total | 4,596 | 4,994 | ' | ' |
Property and equipment at cost | 34,669 | 31,917 | ' | ' |
Less accumulated depreciation and amortization | -1,464 | ' | ' | ' |
Property and equipment, net | 33,205 | 31,917 | ' | ' |
Total Assets | 37,801 | 36,911 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 317 | 484 | ' | ' |
Air traffic liability | 1,901 | 1,727 | ' | ' |
Other accrued liabilities | 145 | ' | ' | ' |
Total | 2,363 | 2,211 | ' | ' |
Other liabilities and deferred credits: | ' | ' | ' | ' |
Other liabilities and deferred credits | 750 | ' | ' | ' |
Total | 750 | ' | ' | ' |
Shareholders’ equity | 34,688 | 34,700 | ' | ' |
Total Liabilities and Shareholders’ Equity | 37,801 | 36,911 | ' | ' |
Eliminations | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Accounts receivable, net | -128 | -219 | ' | ' |
Total | -128 | -219 | ' | ' |
Deferred tax assets, net | -18,462 | -14,767 | ' | ' |
Intercompany receivable | -58,518 | -25,286 | ' | ' |
Investment in consolidated subsidiaries | -414,702 | -348,040 | ' | ' |
Total Assets | -491,810 | -388,312 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | -128 | -219 | ' | ' |
Total | -128 | -219 | ' | ' |
Intercompany payable | -58,518 | -25,286 | ' | ' |
Other liabilities and deferred credits: | ' | ' | ' | ' |
Deferred tax liabilities, net | -18,462 | -14,767 | ' | ' |
Total | -18,462 | -14,767 | ' | ' |
Shareholders’ equity | -414,702 | -348,040 | ' | ' |
Total Liabilities and Shareholders’ Equity | ($491,810) | ($388,312) | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information (Details 3) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidating Statements of Cash Flows | ' | ' |
Net Cash Provided By (Used In) Operating Activities | $252,163 | $207,475 |
Cash Flows From Investing Activities: | ' | ' |
Additions to property and equipment, including pre-delivery deposits | -361,290 | -232,717 |
Net proceeds from disposition of property and equipment | 978 | 0 |
Purchases of investments | -346,010 | 0 |
Sales of investments | 92,103 | 0 |
Net cash used in investing activities | -614,219 | -232,717 |
Cash Flows From Financing Activities: | ' | ' |
Proceeds from exercise of stock options | 5,487 | 2,376 |
Long-term borrowings | 293,430 | 132,000 |
Repayments of long-term debt and capital lease obligations | -46,392 | -45,200 |
Debt issuance costs | -32 | -12,416 |
Change in restricted cash | 14,434 | -16,000 |
Net cash provided by financing activities | 266,927 | 60,760 |
Net increase (decrease) in cash and cash equivalents | -95,129 | 35,518 |
Cash and cash equivalents - Beginning of Period | 423,384 | 405,880 |
Cash and cash equivalents - End of Period | 328,255 | 441,398 |
Parent Issuer / Guarantor | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' |
Net Cash Provided By (Used In) Operating Activities | -6,859 | -7,244 |
Cash Flows From Investing Activities: | ' | ' |
Net payments to subsidiaries | -34,443 | ' |
Net payments from subsidiaries | ' | 5,553 |
Net cash used in investing activities | -34,443 | 5,553 |
Cash Flows From Financing Activities: | ' | ' |
Proceeds from exercise of stock options | 5,487 | 2,376 |
Net cash provided by financing activities | 5,487 | 2,376 |
Net increase (decrease) in cash and cash equivalents | -35,815 | 685 |
Cash and cash equivalents - Beginning of Period | 84,797 | 83,626 |
Cash and cash equivalents - End of Period | 48,982 | 84,311 |
Subsidiary Issuer / Guarantor | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' |
Net Cash Provided By (Used In) Operating Activities | 257,694 | 215,589 |
Cash Flows From Investing Activities: | ' | ' |
Additions to property and equipment, including pre-delivery deposits | -358,538 | -220,272 |
Net proceeds from disposition of property and equipment | 978 | ' |
Purchases of investments | -346,010 | ' |
Sales of investments | 92,103 | ' |
Net cash used in investing activities | -611,467 | -220,272 |
Cash Flows From Financing Activities: | ' | ' |
Long-term borrowings | 293,430 | 132,000 |
Repayments of long-term debt and capital lease obligations | -46,392 | -45,200 |
Debt issuance costs | -32 | -12,416 |
Net payments from parent company | 34,443 | -5,553 |
Change in restricted cash | 14,434 | -16,000 |
Net cash provided by financing activities | 295,883 | 52,831 |
Net increase (decrease) in cash and cash equivalents | -57,890 | 48,148 |
Cash and cash equivalents - Beginning of Period | 333,663 | 303,967 |
Cash and cash equivalents - End of Period | 275,773 | 352,115 |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' |
Net Cash Provided By (Used In) Operating Activities | 1,328 | -870 |
Cash Flows From Investing Activities: | ' | ' |
Additions to property and equipment, including pre-delivery deposits | -2,752 | -12,445 |
Net cash used in investing activities | -2,752 | -12,445 |
Cash Flows From Financing Activities: | ' | ' |
Net increase (decrease) in cash and cash equivalents | -1,424 | -13,315 |
Cash and cash equivalents - Beginning of Period | 4,924 | 18,287 |
Cash and cash equivalents - End of Period | 3,500 | 4,972 |
Eliminations | ' | ' |
Cash Flows From Investing Activities: | ' | ' |
Net payments to subsidiaries | 34,443 | ' |
Net payments from subsidiaries | ' | -5,553 |
Net cash used in investing activities | 34,443 | -5,553 |
Cash Flows From Financing Activities: | ' | ' |
Net payments from parent company | -34,443 | 5,553 |
Net cash provided by financing activities | ($34,443) | $5,553 |