Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 16, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | HAWAIIAN HOLDINGS INC | |
Entity Central Index Key | 1,172,222 | |
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 | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 53,214,218 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Revenue: | ||||
Passenger | $ 556,929 | $ 566,985 | $ 1,525,461 | $ 1,541,795 |
Other | 74,809 | 72,477 | 217,852 | 198,245 |
Total | 631,738 | 639,462 | 1,743,313 | 1,740,040 |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 105,483 | 182,219 | 329,329 | 527,497 |
Wages and benefits | 125,884 | 114,469 | 369,875 | 334,441 |
Aircraft rent | 29,544 | 26,724 | 86,732 | 79,098 |
Maintenance, materials and repairs | 56,196 | 51,293 | 168,512 | 168,002 |
Aircraft and passenger servicing | 30,284 | 31,848 | 87,948 | 92,929 |
Commissions and other selling | 30,305 | 32,015 | 91,217 | 94,123 |
Depreciation and amortization | 26,061 | 24,384 | 78,777 | 70,960 |
Other rentals and landing fees | 24,728 | 23,637 | 70,807 | 65,855 |
Other | 48,576 | 46,704 | 142,859 | 139,335 |
Total | 477,061 | 533,293 | 1,426,056 | 1,572,240 |
Operating Income | 154,677 | 106,169 | 317,257 | 167,800 |
Nonoperating Income (Expense): | ||||
Interest expense and amortization of debt discounts and issuance costs | (13,506) | (17,104) | (42,742) | (48,111) |
Interest income | 691 | 471 | 2,052 | 1,088 |
Capitalized interest | 698 | 1,834 | 2,966 | 6,584 |
Losses on fuel derivatives | (25,009) | (27,892) | (28,670) | (28,506) |
Loss on extinguishment of debt | (54) | 0 | (7,296) | 0 |
Other, net | (4,515) | (5,114) | (9,325) | (3,804) |
Total | (41,695) | (47,805) | (83,015) | (72,749) |
Income Before Income Taxes | 112,982 | 58,364 | 234,242 | 95,051 |
Income tax expense | 42,953 | 22,789 | 89,496 | 37,224 |
Net Income | $ 70,029 | $ 35,575 | $ 144,746 | $ 57,827 |
Net Income Per Share | ||||
Basic (in dollars per share) | $ 1.30 | $ 0.66 | $ 2.67 | $ 1.08 |
Diluted (in dollars per share) | $ 1.15 | $ 0.56 | $ 2.32 | $ 0.94 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 70,029 | $ 35,575 | $ 144,746 | $ 57,827 |
Other comprehensive income (loss), net: | ||||
Net change related to employee benefit plans, net of tax | 1,894 | 44 | 5,251 | 389 |
Net change in derivative instruments, net of tax | (2,681) | 7,081 | (4,958) | (1,726) |
Net change in available-for-sale investments, net of tax | 59 | (90) | 239 | (55) |
Total other comprehensive income (loss) | (728) | 7,035 | 532 | (1,392) |
Total Comprehensive Income | $ 69,301 | $ 42,610 | $ 145,278 | $ 56,435 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change related to employee benefit plans, tax expense | $ 1,117 | $ 3 | $ 3,163 | $ 213 |
Net change in derivative instruments, tax (benefit) expense | (1,628) | 4,308 | (3,014) | (1,045) |
Net change in available-for-sale investments, tax (benefit) expense | $ 35 | $ (54) | $ 145 | $ (33) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 345,174 | $ 264,087 |
Restricted cash | 5,000 | 6,566 |
Short-term investments | 265,437 | 260,121 |
Accounts receivable, net | 80,682 | 80,737 |
Spare parts and supplies, net | 20,359 | 18,011 |
Deferred tax assets, net | 22,102 | 21,943 |
Prepaid expenses and other | 53,013 | 53,382 |
Total | 791,767 | 704,847 |
Property and equipment, less accumulated depreciation and amortization of $415,194 and $367,507 as of September 30, 2015 and December 31, 2014, respectively | 1,617,933 | 1,673,493 |
Other Assets: | ||
Long-term prepayments and other | 90,108 | 96,225 |
Intangible assets, less accumulated amortization of $36,414 and $34,434 as of September 30, 2015 and December 31, 2014, respectively | 19,320 | 21,300 |
Goodwill | 106,663 | 106,663 |
Total Assets | 2,625,791 | 2,602,528 |
Current Liabilities: | ||
Accounts payable | 101,863 | 97,260 |
Air traffic liability | 481,830 | 424,336 |
Other accrued liabilities | 139,827 | 141,919 |
Current maturities of long-term debt, less discount, and capital lease obligations | 95,805 | 156,349 |
Total | 819,325 | 819,864 |
Long-Term Debt and Capital Lease Obligations | 818,608 | 893,288 |
Other Liabilities and Deferred Credits: | ||
Accumulated pension and other postretirement benefit obligations | 409,047 | 407,864 |
Other liabilities and deferred credits | 84,285 | 72,650 |
Deferred tax liability, net | 117,376 | 41,629 |
Total | $ 610,708 | $ 522,143 |
Commitments and Contingencies | ||
Shareholders’ Equity: | ||
Special preferred stock, $0.01 par value per share, three shares issued and outstanding as of September 30, 2015 and December 31, 2014 | $ 0 | $ 0 |
Common stock, $0.01 par value per share, 53,317,662 and 54,455,568 shares outstanding as of September 30, 2015 and December 31, 2014, respectively | 533 | 545 |
Capital in excess of par value | 116,083 | 251,432 |
Accumulated income | 382,814 | 238,068 |
Accumulated other comprehensive loss, net | (122,280) | (122,812) |
Total | 377,150 | 367,233 |
Total Liabilities and Shareholders’ Equity | $ 2,625,791 | $ 2,602,528 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation and amortization | $ 415,194 | $ 367,507 |
Intangible assets, accumulated amortization (in dollars) | $ 36,414 | $ 34,434 |
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 outstanding | 53,317,662 | 54,455,568 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by Operating Activities | $ 389,472 | $ 252,163 |
Cash flows from Investing Activities: | ||
Additions to property and equipment, including pre-delivery payments | (105,329) | (361,290) |
Proceeds from purchase assignment and leaseback transactions | 86,033 | 0 |
Proceeds from disposition of equipment | 3,606 | 978 |
Purchases of investments | (178,177) | (346,010) |
Sales of investments | 170,904 | 92,103 |
Net cash used in investing activities | (22,963) | (614,219) |
Cash flows from Financing Activities: | ||
Long-term borrowings | 0 | 293,430 |
Repayments of long-term debt and capital lease obligations | (74,719) | (46,392) |
Repurchases of convertible notes | (171,598) | 0 |
Repurchases of common stock | (37,622) | 0 |
Other | (1,483) | 19,889 |
Net cash provided by (used in) financing activities | (285,422) | 266,927 |
Net increase (decrease) in cash and cash equivalents | 81,087 | (95,129) |
Cash and cash equivalents - Beginning of Period | 264,087 | 423,384 |
Cash and cash equivalents - End of Period | $ 345,174 | $ 328,255 |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 . |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) 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. In July 2015, the FASB voted to defer the amendments in ASU 2014-09 by one year to December 15, 2017. The terms of ASU 2014-09 are effective for fiscal years, and interim periods within those fiscal years, beginning after the revised effective date, and allow for either full retrospective or modified retrospective adoption. Organizations are permitted to adopt the new revenue standard early, but not before 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. We have determined that the new standard, once effective, will preclude the Company from accounting for miles earned under its HawaiianMiles customer loyalty program using the incremental cost method, and will require use of the deferred revenue method. This change could have a significant impact on the Company's financial statements. In April 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), requiring an entity to present its debt issuance costs on the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. We are currently evaluating the impact the adoption of this standard will have on the Company's financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2015 | |
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 comprehensive loss components Three months ended September 30, Nine months ended September 30, Affected line items in the statement where net income is presented 2015 2014 2015 2014 (in thousands) Derivatives designated as hedging instruments under ASC 815 Foreign currency derivative gains, net $ (5,003 ) $ (1,297 ) $ (13,415 ) $ (6,523 ) Passenger revenue Interest rate derivative losses, net 170 201 536 618 Interest expense Total before tax (4,833 ) (1,096 ) (12,879 ) (5,905 ) Tax expense 1,826 424 4,866 2,239 Total, net of tax $ (3,007 ) $ (672 ) $ (8,013 ) $ (3,666 ) Amortization of defined benefit pension items Actuarial loss (gains) $ 2,955 $ (64 ) $ 8,315 $ 388 Wages and benefits Prior service cost 57 113 171 111 Wages and benefits Total before tax 3,012 49 8,486 499 Tax benefit (1,118 ) (5 ) (3,194 ) (215 ) Total, net of tax $ 1,894 $ 44 $ 5,292 $ 284 Short-term investments Realized gain on sales of investments, net $ (1 ) $ (10 ) $ (36 ) $ (12 ) Other nonoperating income Total before tax (1 ) (10 ) (36 ) (12 ) Tax expense — 1 7 1 Total, net of tax $ (1 ) $ (9 ) $ (29 ) $ (11 ) Total reclassifications for the period $ (1,114 ) $ (637 ) $ (2,750 ) $ (3,393 ) A rollforward of the amounts included in accumulated other comprehensive loss, net of taxes, for the three and nine months ended September 30, 2015 and 2014 is as follows: Three months ended September 30, 2015 Interest Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ 262 $ 10,423 $ (132,163 ) $ (74 ) $ (121,552 ) Other comprehensive income (loss) before reclassifications, net of tax (641 ) 967 — 60 386 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 104 (3,111 ) 1,894 (1 ) (1,114 ) Net current-period other comprehensive income (loss) (537 ) (2,144 ) 1,894 59 (728 ) Ending balance $ (275 ) $ 8,279 $ (130,269 ) $ (15 ) $ (122,280 ) Three months ended September 30, 2014 Interest Foreign Defined Short-Term Investments Total (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 ) Nine months ended September 30, 2015 Interest Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ 254 $ 12,708 $ (135,520 ) $ (254 ) $ (122,812 ) Other comprehensive income (loss) before reclassifications, net of tax (857 ) 3,912 (41 ) 268 3,282 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 328 (8,341 ) 5,292 (29 ) (2,750 ) Net current-period other comprehensive income (loss) (529 ) (4,429 ) 5,251 239 532 Ending balance $ (275 ) $ 8,279 $ (130,269 ) $ (15 ) $ (122,280 ) Nine months ended September 30, 2014 Interest Foreign Defined Short-Term Investments Total (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 ) |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings 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. For the three and nine months ended September 30, 2015 and 2014 , anti-dilutive shares excluded from the calculation of diluted earnings per share were not material. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands, except for per share data) Numerator: Net Income $ 70,029 $ 35,575 $ 144,746 $ 57,827 Denominator: Weighted average common stock shares outstanding - Basic 53,731 53,878 54,266 53,359 Assumed exercise of stock options and awards 396 848 458 1,061 Assumed conversion of convertible note premium 350 4,965 1,618 4,498 Assumed conversion of warrants 6,351 3,359 6,139 2,767 Weighted average common stock shares outstanding - Diluted 60,828 63,050 62,481 61,685 Net Income Per Share Basic $ 1.30 $ 0.66 $ 2.67 $ 1.08 Diluted $ 1.15 $ 0.56 $ 2.32 $ 0.94 Convertible Note Transaction 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. As of September 30, 2015 , the Company’s 5% Convertible Notes due in 2016 ("Convertible Notes") had an outstanding principal balance of $3.3 million and can be redeemed with either cash or the Company’s common stock, or a combination thereof, at the Company’s option. During the three and nine months ended September 30, 2015 , the Company repurchased $1.0 million and $67.8 million in principal of the Convertible Notes, respectively. The 0.4 million shares into which the currently outstanding Convertible Notes can 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, 2015 and 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 earnings per share 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, 2015 and 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 is included in the Company's computation of diluted earnings per share. Stock Repurchase Program In April 2015, the Company's Board of Directors approved a stock repurchase program under which the Company may repurchase up to $100 million of its outstanding common stock over a two-year period through the open market, established plans or privately negotiated transactions in accordance with all applicable securities laws, rules and regulations. The stock repurchase program is subject to modification or termination at any time. The Company spent $20.0 million and $37.7 million to repurchase approximately 0.9 million and 1.6 million shares of the Company's common stock in open market transactions during the three and nine months ended September 30, 2015 , respectively. As of September 30, 2015 , the Company has $62.3 million remaining to spend under the stock repurchase program. See Part II, Item 2., “Unregistered Sales of Equity Securities and Use of Proceeds” of this report for additional information on the stock repurchase program. |
Short-Term Investments
Short-Term Investments | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 and December 31, 2014 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2015 (in thousands) Corporate debt $ 169,615 $ 84 $ (205 ) $ 169,494 U.S. government and agency debt 47,990 84 (2 ) 48,072 Municipal bonds 23,982 18 (1 ) 23,999 Other fixed income securities 23,875 — (3 ) 23,872 Total short-term investments $ 265,462 $ 186 $ (211 ) $ 265,437 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2014 (in thousands) Corporate debt $ 180,794 $ 43 $ (394 ) $ 180,443 U.S. government and agency debt 38,268 — (40 ) 38,228 Municipal bonds 23,849 4 (16 ) 23,837 Other fixed income securities 17,618 — (5 ) 17,613 Total short-term investments $ 260,529 $ 47 $ (455 ) $ 260,121 Contractual maturities of short-term investments as of September 30, 2015 are shown below. Under 1 Year 1 to 5 Years Total (in thousands) Corporate debt $ 72,807 $ 96,687 $ 169,494 U.S. government and agency debt 12,441 35,631 48,072 Municipal bonds 16,961 7,038 23,999 Other fixed income securities 22,371 1,501 23,872 Total short-term investments $ 124,580 $ 140,857 $ 265,437 The Company classifies investments as current assets as these securities are available for use in its current operations. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 150,388 $ 133,602 $ 16,786 $ — Restricted cash 5,000 5,000 — — Short-term investments 265,437 — 265,437 — Fuel derivative contracts: 0 Heating oil put options 3,480 — 3,480 — Heating oil swaps 12 — 12 — Foreign currency derivatives 10,620 — 10,620 — Total assets measured at fair value $ 434,937 $ 138,602 $ 296,335 $ — Fuel derivative contracts: Heating oil swaps $ 27,165 $ — $ 27,165 $ — Foreign currency derivatives 368 — 368 — Interest rate derivatives 3,175 — 3,175 — Total liabilities measured at fair value $ 30,708 $ — $ 30,708 $ — Fair Value Measurements as of December 31, 2014 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 55,072 $ 35,913 $ 19,159 $ — Restricted cash 6,566 6,566 — — Short-term investments 260,121 — 260,121 — Fuel derivative contracts: 0 Heating oil put options 32,637 — 32,637 — Foreign currency derivatives 19,746 — 19,746 — Total assets measured at fair value $ 374,142 $ 42,479 $ 331,663 $ — Fuel derivative contracts: Heating oil swaps $ 71,447 $ — $ 71,447 $ — Interest rate derivative 129 — 129 — Negative arbitrage derivative 500 — — 500 Total liabilities measured at fair value $ 72,076 $ — $ 71,576 $ 500 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 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 derivatives. The Company’s interest rate derivatives consists of interest rate swaps and is valued based primarily on data available or derived from public markets. The table below presents the Company’s debt (excluding obligations under capital leases) measured at fair value: Fair Value of Debt September 30, 2015 December 31, 2014 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) $ 816,897 $ 815,578 $ — $ 3,224 $ 812,354 $ 947,897 $ 956,811 $ — $ 69,766 $ 887,045 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 Instrument
Financial Derivative Instruments | 9 Months Ended |
Sep. 30, 2015 | |
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 and foreign currencies. 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, 2015 , 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 2015 2014 2015 2014 (in thousands) Losses realized at settlement $ (13,777 ) $ (4,632 ) $ (44,921 ) $ (6,530 ) Reversal of prior period unrealized amounts 9,953 56 38,293 (1,816 ) Unrealized losses on contracts that will settle in future periods (21,185 ) (23,316 ) (22,042 ) (20,160 ) Losses on fuel derivatives recorded as Nonoperating income (expense) $ (25,009 ) $ (27,892 ) $ (28,670 ) $ (28,506 ) 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 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 accumulated other comprehensive income (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 expects to reclassify a net gain of approximately $12.0 million into earnings over the next 12 months from AOCI based on the values at September 30, 2015 . 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, 2015 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives designated as hedges Interest rate derivative Other accrued liabilities $52,600 U.S. dollars April 2023 $ — $ (197 ) $ (197 ) Other liabilities and deferred credits (1) — (711 ) (711 ) Foreign currency derivatives Prepaid expenses and other 6,723,830 Japanese Yen September 2016 10,088 (196 ) 9,892 Long-term prepayments and other 3,728,050 Japanese Yen August 2017 509 (160 ) 349 Derivatives not designated as hedges 0 Interest rate derivative Other accrued liabilities $87,400 U.S. dollars November 2015 — (2,267 ) (2,267 ) Foreign currency derivatives Prepaid expenses and other 3,849,000 Japanese Yen August 2016 23 (12 ) 11 Fuel derivative contracts Other accrued liabilities 81,832 gallons September 2016 3,492 (27,165 ) (23,673 ) (1) Represents the noncurrent portion of the $52.6 million interest rate derivative with final maturity in April 2023. Derivative position as of December 31, 2014 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives designated as hedges Interest rate derivative Other accrued liabilities $57,400 U.S. dollars April 2023 $ — $ (26 ) $ (26 ) Other liabilities and deferred credits(1) — (103 ) (103 ) Foreign currency derivatives Prepaid expenses and other 6,909,050 Japanese Yen December 2015 13,921 — 13,921 Long-term prepayments and other 3,758,500 Japanese Yen November 2016 4,565 — 4,565 Derivatives not designated as hedges Foreign currency derivatives Prepaid expenses and other 7,714,291 Japanese Yen December 2015 1,191 — 1,191 Long-term prepayments and other 2,762,000 Japanese Yen August 2016 69 — 69 Fuel derivative contracts Other accrued liabilities 90,994 gallons December 2015 32,637 (71,447 ) (38,810 ) Negative arbitrage derivative Other accrued liabilities $444,540 U.S. dollars January 2015 — (500 ) (500 ) (1) Represents the noncurrent portion of the $57.4 million interest rate derivative with final maturity in April 2023. 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 Three months ended September 30, Three months ended September 30, Three months ended September 30, 2015 2014 2015 2014 2015 2014 (in thousands) Foreign currency derivatives $ (1,558 ) $ (12,428 ) $ (5,003 ) $ (1,297 ) $ — $ — Interest rate derivatives 840 (283 ) 170 201 — — (Gain) loss recognized in AOCI on derivatives (effective portion) (Gain) loss reclassified from AOCI (Gain) loss recognized in Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 2015 2014 (in thousands) Foreign currency derivatives $ (6,295 ) $ (4,720 ) $ (13,415 ) $ (6,523 ) $ — $ — Interest rate derivatives 778 668 536 618 — — 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, 2015 was $26.8 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 no collateral posted with counterparties as of September 30, 2015 and $0.6 million in collateral posted with counterparties as of December 31, 2014 . 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, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of September 30, 2015 , the expected maturities of long-term debt for the remainder of 2015 and the next four years, and thereafter, were as follows (in thousands): Remaining months in 2015 $ 16,186 2016 82,861 2017 82,092 2018 87,425 2019 99,070 Thereafter 449,317 $ 816,951 Convertible Notes During the three and nine months ended September 30, 2015 a condition for conversion of the Convertible Notes was satisfied, which permits holders of the Convertible Notes to surrender their notes for conversion during the quarter ending December 31, 2015. Therefore, the principal balance is classified accordingly in the table above. During the three and nine months ended September 30, 2015 , the Company repurchased $1.0 million and $67.8 million , respectively, in principal of its Convertible Notes for an aggregate repurchase price of $3.2 million and $171.6 million , respectively. The cash consideration was allocated to the fair value of the liability component immediately before extinguishment and the remaining consideration was allocated to the equity component and recognized as a reduction of shareholders' equity. The repurchase of the Convertible Notes resulted in a loss on extinguishment of $0.1 million and $7.3 million for the three and nine months ended September 30, 2015 , respectively, which is reflected in nonoperating income (expense) in the unaudited Consolidated Statement of Operations. Convertible Note Hedges and Warrants The convertible note hedges and warrants described in Note 8 of the Company's Form 10-K for the year ended December 31, 2014 were outstanding as of September 30, 2015. Under the terms of the convertible note hedges, the counterparties will deliver to the Company an amount equal to the excess of the Company's stock price on the settlement date and the exercise price of $7.88 per share multiplied by 10.9 million shares. The convertible note hedges are currently exercisable and expire in March 2016. Under the terms of the warrants, if the Company elects to deliver cash in lieu of shares, the Company will deliver to the counterparties an amount equal to the excess of the Company's stock price on the settlement date and the exercise price of $10.00 per share multiplied by 10.9 million shares. The convertible note hedge transaction and the warrant transactions may settle on different dates. The warrants expire at various dates beginning in June 2016. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
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 2015 2014 2015 2014 (in thousands) Service cost $ 4,006 $ 3,162 $ 12,456 $ 9,066 Interest cost 7,454 6,839 22,232 20,811 Expected return on plan assets (4,702 ) (4,842 ) (14,134 ) (14,532 ) Recognized net actuarial loss 3,012 49 8,486 499 Net periodic benefit cost $ 9,770 $ 5,208 $ 29,040 $ 15,844 The Company contributed $ 3.2 million and $16.7 million to its defined benefit and other postretirement plans during the three and nine months ended September 30, 2015 , respectively, including $7.3 million above the minimum funding requirements. The Company contributed $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. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Commitments As of September 30, 2015 , the Company had the following capital commitments consisting of firm aircraft and engine orders and purchase rights: Aircraft Type Firm Orders Purchase Rights Expected Delivery Dates A330-200 aircraft 1 — In 2015 A330-800neo aircraft 6 6 Between 2019 and 2021 A321neo aircraft 16 9 Between 2017 and 2020 Rolls-Royce spare engines: A330-800neo spare engines 2 — Between 2019 and 2020 Pratt & Whitney spare engines: A321neo spare engines 2 — Between 2017 and 2018 The Company has operating commitments with a third-party to provide aircraft maintenance services which 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 2025. 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, 2015 are detailed below: Capital Operating Total Committed Less: Committed Net Committed (in thousands) Remaining months in 2015 $ 54,051 $ 17,878 $ 71,929 $ 48,138 $ 23,791 2016 78,018 59,901 137,919 — 137,919 2017 220,806 58,637 279,443 — 279,443 2018 399,953 51,942 451,895 — 451,895 2019 488,553 47,362 535,915 — 535,915 Thereafter 442,888 264,181 707,069 — 707,069 $ 1,684,269 $ 499,901 $ 2,184,170 $ 48,138 $ 2,136,032 *See below for a detailed discussion of the committed financings Hawaiian has received for its upcoming capital commitments for aircraft deliveries. Purchase Assignment and Lease Financing Agreement Hawaiian has a commitment to assign its purchase of an Airbus A330-200 aircraft at delivery and simultaneously enter into a lease agreement for the aircraft with scheduled delivery in October 2015 with total committed lease financing of $48 million . Both the gross capital commitment for the cost of the aircraft and the committed financing are reflected in the table above. The agreement has an initial lease term of 12 years and fixed monthly rental payments that will be determined upon delivery of the aircraft. The anticipated future minimum payments for this lease are $2.2 million for the remainder of 2015, $8.4 million in each of the years 2016 through 2019, and $65.4 million thereafter. Aircraft Lease Commitment Hawaiian entered into a six -year lease agreement for an Airbus A330-200 aircraft with an expected delivery date in the second quarter of 2016, which is not included in the table above. The Company will determine whether this lease will be classified as a capital or operating lease in the period it takes delivery of the aircraft. The anticipated future minimum payments for this lease are $5.1 million in 2016, $8.9 million in each of the years 2017 through 2019, and $21.5 million thereafter. 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, 2015 and December 31, 2014 . 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 Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 and 2014 were as follows: Nine months ended September 30, 2015 2014 (in thousands) Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a capital lease $ 2,791 $ — |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2015 | |
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, 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. Condensed consolidating financial statements are presented in the following tables: Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three months ended September 30, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 630,657 $ 1,162 $ (81 ) $ 631,738 Operating Expenses: Aircraft fuel, including taxes and delivery — 105,483 — — 105,483 Wages and benefits — 125,884 — — 125,884 Aircraft rent — 29,544 — — 29,544 Maintenance materials and repairs — 56,021 175 — 56,196 Aircraft and passenger servicing — 30,284 — — 30,284 Commissions and other selling 1 30,314 15 (25 ) 30,305 Depreciation and amortization — 25,307 754 — 26,061 Other rentals and landing fees — 24,728 — — 24,728 Other 1,510 46,874 248 (56 ) 48,576 Total 1,511 474,439 1,192 (81 ) 477,061 Operating Income (Loss) (1,511 ) 156,218 (30 ) — 154,677 Nonoperating Income (Expense): Undistributed net income of subsidiaries 71,067 — — (71,067 ) — Interest expense and amortization of debt discounts and issuance costs (100 ) (13,406 ) — — (13,506 ) Interest income 53 638 — — 691 Capitalized interest — 698 — — 698 Losses on fuel derivatives — (25,009 ) — — (25,009 ) Loss on extinguishment of debt (54 ) — — — (54 ) Other, net — (4,515 ) — — (4,515 ) Total 70,966 (41,594 ) — (71,067 ) (41,695 ) Income (Loss) Before Income Taxes 69,455 114,624 (30 ) (71,067 ) 112,982 Income tax expense (benefit) (574 ) 43,527 — — 42,953 Net Income (Loss) $ 70,029 $ 71,097 $ (30 ) $ (71,067 ) $ 70,029 Comprehensive Income (Loss) $ 69,301 $ 70,369 $ (30 ) $ (70,339 ) $ 69,301 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three months ended September 30, 2014 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (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) Nine months ended September 30, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 1,740,118 $ 3,503 $ (308 ) $ 1,743,313 Operating Expenses: Aircraft fuel, including taxes and delivery — 329,329 — — 329,329 Wages and benefits — 369,875 — — 369,875 Aircraft rent — 86,732 — — 86,732 Maintenance materials and repairs — 167,489 1,023 — 168,512 Aircraft and passenger servicing — 87,948 — — 87,948 Commissions and other selling 5 91,260 46 (94 ) 91,217 Depreciation and amortization — 76,529 2,248 — 78,777 Other rentals and landing fees — 70,807 — — 70,807 Other 4,747 137,617 709 (214 ) 142,859 Total 4,752 1,417,586 4,026 (308 ) 1,426,056 Operating Income (Loss) (4,752 ) 322,532 (523 ) — 317,257 Nonoperating Income (Expense): Undistributed net income of subsidiaries 153,389 — — (153,389 ) — Interest expense and amortization of debt discounts and issuance costs (1,692 ) (41,050 ) — — (42,742 ) Interest income 162 1,890 — — 2,052 Capitalized interest — 2,966 — — 2,966 Losses on fuel derivatives — (28,670 ) — — (28,670 ) Loss on extinguishment of debt (7,296 ) — — — (7,296 ) Other, net — (9,325 ) — — (9,325 ) Total 144,563 (74,189 ) — (153,389 ) (83,015 ) Income (Loss) Before Income Taxes 139,811 248,343 (523 ) (153,389 ) 234,242 Income tax expense (benefit) (4,935 ) 94,431 — — 89,496 Net Income (Loss) $ 144,746 $ 153,912 $ (523 ) $ (153,389 ) $ 144,746 Comprehensive Income (Loss) $ 145,278 $ 154,444 $ (523 ) $ (153,921 ) $ 145,278 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Nine months ended September 30, 2014 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (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 Balance Sheets September 30, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 65,949 $ 271,376 $ 7,849 $ — $ 345,174 Restricted cash — 5,000 — — 5,000 Short-term investments — 265,437 — — 265,437 Accounts receivable, net 63 80,487 289 (157 ) 80,682 Spare parts and supplies, net — 20,359 — — 20,359 Deferred tax assets, net — 22,102 — — 22,102 Prepaid expenses and other 50 52,852 111 — 53,013 Total 66,062 717,613 8,249 (157 ) 791,767 Property and equipment at cost — 1,974,943 58,184 — 2,033,127 Less accumulated depreciation and amortization — (410,746 ) (4,448 ) — (415,194 ) Property and equipment, net — 1,564,197 53,736 — 1,617,933 Long-term prepayments and other 11 90,097 — — 90,108 Deferred tax assets, net 25,490 — — (25,490 ) — Goodwill and other intangible assets, net — 125,983 — — 125,983 Intercompany receivable — 242,726 — (242,726 ) — Investment in consolidated subsidiaries 533,839 — — (533,839 ) — TOTAL ASSETS $ 625,402 $ 2,740,616 $ 61,985 $ (802,212 ) $ 2,625,791 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 557 $ 101,024 $ 439 $ (157 ) $ 101,863 Air traffic liability — 479,398 2,432 — 481,830 Other accrued liabilities 343 139,214 270 — 139,827 Current maturities of long-term debt, less discount, and capital lease obligations 3,234 92,571 — — 95,805 Total 4,134 812,207 3,141 (157 ) 819,325 Long-term debt and capital lease obligations — 818,608 — — 818,608 Intercompany payable 242,726 — — (242,726 ) — Other liabilities and deferred credits: 0 Accumulated pension and other postretirement benefit obligations — 409,047 — — 409,047 Other liabilities and deferred credits 1,392 82,143 750 — 84,285 Deferred tax liabilities, net — 142,866 — (25,490 ) 117,376 Total 1,392 634,056 750 (25,490 ) 610,708 Shareholders’ equity 377,150 475,745 58,094 (533,839 ) 377,150 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 625,402 $ 2,740,616 $ 61,985 $ (802,212 ) $ 2,625,791 Condensed Consolidating Balance Sheets December 31, 2014 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 79,532 $ 179,676 $ 4,879 $ — $ 264,087 Restricted cash — 6,566 — — 6,566 Short-term investments — 260,121 — — 260,121 Accounts receivable, net 63 80,289 531 (146 ) 80,737 Spare parts and supplies, net — 18,011 — — 18,011 Deferred tax assets, net — 21,943 — — 21,943 Prepaid expenses and other 12 53,281 89 — 53,382 Total 79,607 619,887 5,499 (146 ) 704,847 Property and equipment at cost — 2,006,274 34,726 — 2,041,000 Less accumulated depreciation and amortization — (365,279 ) (2,228 ) — (367,507 ) Property and equipment, net — 1,640,995 32,498 — 1,673,493 Long-term prepayments and other 537 95,688 — — 96,225 Deferred tax assets, net 20,556 — — (20,556 ) — Goodwill and other intangible assets, net — 127,963 — — 127,963 Intercompany receivable — 15,081 — (15,081 ) — Investment in consolidated subsidiaries 351,391 — — (351,391 ) — TOTAL ASSETS $ 452,091 $ 2,499,614 $ 37,997 $ (387,174 ) $ 2,602,528 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 514 $ 96,196 $ 696 $ (146 ) $ 97,260 Air traffic liability — 421,547 2,789 — 424,336 Other accrued liabilities 1,686 140,088 145 — 141,919 Current maturities of long-term debt, less discount, and capital lease obligations 66,530 89,819 — — 156,349 Total 68,730 747,650 3,630 (146 ) 819,864 Long-term debt and capital lease obligations — 893,288 — — 893,288 Intercompany payable 15,081 — — (15,081 ) — Other liabilities and deferred credits: 0 Accumulated pension and other postretirement benefit obligations — 407,864 — — 407,864 Other liabilities and deferred credits 1,047 70,853 750 — 72,650 Deferred tax liabilities, net — 62,185 — (20,556 ) 41,629 Total 1,047 540,902 750 (20,556 ) 522,143 Shareholders’ equity 367,233 317,774 33,617 (351,391 ) 367,233 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 452,091 $ 2,499,614 $ 37,997 $ (387,174 ) $ 2,602,528 Condensed Consolidating Statements of Cash Flows Nine months ended September 30, 2015 Parent Issuer / Subsidiary Non- Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities $ (3,461 ) $ 391,577 $ 1,356 $ — $ 389,472 Cash Flows From Investing Activities: Net payments to affiliates (25,000 ) (223,411 ) — 248,411 — Additions to property and equipment, including pre-delivery deposits — (81,888 ) (23,441 ) — (105,329 ) Proceeds from purchase assignment and leaseback transaction — 86,033 — — 86,033 Proceeds from disposition of property and equipment — 3,551 55 — 3,606 Purchases of investments — (178,177 ) — — (178,177 ) Sales of investments — 170,904 — — 170,904 Net cash used in investing activities (25,000 ) (222,988 ) (23,386 ) 248,411 (22,963 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (74,719 ) — — (74,719 ) Repurchases of convertible notes (171,598 ) — — — (171,598 ) Net payments from affiliates 223,411 — 25,000 (248,411 ) — Repurchases of common stock (37,622 ) — — — (37,622 ) Other 687 (2,170 ) — — (1,483 ) Net cash provided by (used in) financing activities 14,878 (76,889 ) 25,000 (248,411 ) (285,422 ) Net increase (decrease) in cash and cash equivalents (13,583 ) 91,700 2,970 — 81,087 Cash and cash equivalents - Beginning of Period 79,532 179,676 4,879 — 264,087 Cash and cash equivalents - End of Period $ 65,949 $ 271,376 $ 7,849 $ — $ 345,174 Condensed Consolidating Statements of Cash Flows Nine months ended September 30, 2014 Parent Issuer / Subsidiary Non- Eliminations Consolidated (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 ) 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: Long-term borrowings — 293,430 — — 293,430 Repayments of long-term debt and capital lease obligations — (46,392 ) — — (46,392 ) Net payments from parent company — 34,443 — (34,443 ) — Other 5,487 14,402 — — 19,889 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 Certain Restrictions on Subsidiary Distributions, Dividends and Repurchases The Company and Hawaiian are party to a Credit and Guaranty Agreement (Credit Agreement), dated as of November 7, 2014, that provides for a Revolving Credit Facility. See further discussion of the Revolving Credit Facility at Note 8 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 . Pursuant to the terms of the Credit Agreement, neither Hawaiian nor any other subsidiary of the Company will directly or indirectly declare or pay any dividend, or purchase, redeem or otherwise acquire or retire for value any equity interests of the Company unless certain conditions are met. Long-Term Debt The long-term debt included in the Parent Issuer / Guarantor column represents the Convertible Notes described in Note 8 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . 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 Polici20
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) 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. In July 2015, the FASB voted to defer the amendments in ASU 2014-09 by one year to December 15, 2017. The terms of ASU 2014-09 are effective for fiscal years, and interim periods within those fiscal years, beginning after the revised effective date, and allow for either full retrospective or modified retrospective adoption. Organizations are permitted to adopt the new revenue standard early, but not before 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. We have determined that the new standard, once effective, will preclude the Company from accounting for miles earned under its HawaiianMiles customer loyalty program using the incremental cost method, and will require use of the deferred revenue method. This change could have a significant impact on the Company's financial statements. In April 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), requiring an entity to present its debt issuance costs on the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. We are currently evaluating the impact the adoption of this standard will have on the Company's financial statements. |
Accumulated Other Comprehensi21
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 comprehensive loss components Three months ended September 30, Nine months ended September 30, Affected line items in the statement where net income is presented 2015 2014 2015 2014 (in thousands) Derivatives designated as hedging instruments under ASC 815 Foreign currency derivative gains, net $ (5,003 ) $ (1,297 ) $ (13,415 ) $ (6,523 ) Passenger revenue Interest rate derivative losses, net 170 201 536 618 Interest expense Total before tax (4,833 ) (1,096 ) (12,879 ) (5,905 ) Tax expense 1,826 424 4,866 2,239 Total, net of tax $ (3,007 ) $ (672 ) $ (8,013 ) $ (3,666 ) Amortization of defined benefit pension items Actuarial loss (gains) $ 2,955 $ (64 ) $ 8,315 $ 388 Wages and benefits Prior service cost 57 113 171 111 Wages and benefits Total before tax 3,012 49 8,486 499 Tax benefit (1,118 ) (5 ) (3,194 ) (215 ) Total, net of tax $ 1,894 $ 44 $ 5,292 $ 284 Short-term investments Realized gain on sales of investments, net $ (1 ) $ (10 ) $ (36 ) $ (12 ) Other nonoperating income Total before tax (1 ) (10 ) (36 ) (12 ) Tax expense — 1 7 1 Total, net of tax $ (1 ) $ (9 ) $ (29 ) $ (11 ) Total reclassifications for the period $ (1,114 ) $ (637 ) $ (2,750 ) $ (3,393 ) |
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, 2015 and 2014 is as follows: Three months ended September 30, 2015 Interest Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ 262 $ 10,423 $ (132,163 ) $ (74 ) $ (121,552 ) Other comprehensive income (loss) before reclassifications, net of tax (641 ) 967 — 60 386 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 104 (3,111 ) 1,894 (1 ) (1,114 ) Net current-period other comprehensive income (loss) (537 ) (2,144 ) 1,894 59 (728 ) Ending balance $ (275 ) $ 8,279 $ (130,269 ) $ (15 ) $ (122,280 ) Three months ended September 30, 2014 Interest Foreign Defined Short-Term Investments Total (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 ) Nine months ended September 30, 2015 Interest Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ 254 $ 12,708 $ (135,520 ) $ (254 ) $ (122,812 ) Other comprehensive income (loss) before reclassifications, net of tax (857 ) 3,912 (41 ) 268 3,282 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 328 (8,341 ) 5,292 (29 ) (2,750 ) Net current-period other comprehensive income (loss) (529 ) (4,429 ) 5,251 239 532 Ending balance $ (275 ) $ 8,279 $ (130,269 ) $ (15 ) $ (122,280 ) Nine months ended September 30, 2014 Interest Foreign Defined Short-Term Investments Total (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 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share basic and diluted | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands, except for per share data) Numerator: Net Income $ 70,029 $ 35,575 $ 144,746 $ 57,827 Denominator: Weighted average common stock shares outstanding - Basic 53,731 53,878 54,266 53,359 Assumed exercise of stock options and awards 396 848 458 1,061 Assumed conversion of convertible note premium 350 4,965 1,618 4,498 Assumed conversion of warrants 6,351 3,359 6,139 2,767 Weighted average common stock shares outstanding - Diluted 60,828 63,050 62,481 61,685 Net Income Per Share Basic $ 1.30 $ 0.66 $ 2.67 $ 1.08 Diluted $ 1.15 $ 0.56 $ 2.32 $ 0.94 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 and December 31, 2014 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2015 (in thousands) Corporate debt $ 169,615 $ 84 $ (205 ) $ 169,494 U.S. government and agency debt 47,990 84 (2 ) 48,072 Municipal bonds 23,982 18 (1 ) 23,999 Other fixed income securities 23,875 — (3 ) 23,872 Total short-term investments $ 265,462 $ 186 $ (211 ) $ 265,437 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2014 (in thousands) Corporate debt $ 180,794 $ 43 $ (394 ) $ 180,443 U.S. government and agency debt 38,268 — (40 ) 38,228 Municipal bonds 23,849 4 (16 ) 23,837 Other fixed income securities 17,618 — (5 ) 17,613 Total short-term investments $ 260,529 $ 47 $ (455 ) $ 260,121 |
Schedule of contractual maturities of short-term investments | Contractual maturities of short-term investments as of September 30, 2015 are shown below. Under 1 Year 1 to 5 Years Total (in thousands) Corporate debt $ 72,807 $ 96,687 $ 169,494 U.S. government and agency debt 12,441 35,631 48,072 Municipal bonds 16,961 7,038 23,999 Other fixed income securities 22,371 1,501 23,872 Total short-term investments $ 124,580 $ 140,857 $ 265,437 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 150,388 $ 133,602 $ 16,786 $ — Restricted cash 5,000 5,000 — — Short-term investments 265,437 — 265,437 — Fuel derivative contracts: 0 Heating oil put options 3,480 — 3,480 — Heating oil swaps 12 — 12 — Foreign currency derivatives 10,620 — 10,620 — Total assets measured at fair value $ 434,937 $ 138,602 $ 296,335 $ — Fuel derivative contracts: Heating oil swaps $ 27,165 $ — $ 27,165 $ — Foreign currency derivatives 368 — 368 — Interest rate derivatives 3,175 — 3,175 — Total liabilities measured at fair value $ 30,708 $ — $ 30,708 $ — Fair Value Measurements as of December 31, 2014 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 55,072 $ 35,913 $ 19,159 $ — Restricted cash 6,566 6,566 — — Short-term investments 260,121 — 260,121 — Fuel derivative contracts: 0 Heating oil put options 32,637 — 32,637 — Foreign currency derivatives 19,746 — 19,746 — Total assets measured at fair value $ 374,142 $ 42,479 $ 331,663 $ — Fuel derivative contracts: Heating oil swaps $ 71,447 $ — $ 71,447 $ — Interest rate derivative 129 — 129 — Negative arbitrage derivative 500 — — 500 Total liabilities measured at fair value $ 72,076 $ — $ 71,576 $ 500 |
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 September 30, 2015 December 31, 2014 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) $ 816,897 $ 815,578 $ — $ 3,224 $ 812,354 $ 947,897 $ 956,811 $ — $ 69,766 $ 887,045 |
Financial Derivative Instrume25
Financial Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 2015 2014 2015 2014 (in thousands) Losses realized at settlement $ (13,777 ) $ (4,632 ) $ (44,921 ) $ (6,530 ) Reversal of prior period unrealized amounts 9,953 56 38,293 (1,816 ) Unrealized losses on contracts that will settle in future periods (21,185 ) (23,316 ) (22,042 ) (20,160 ) Losses on fuel derivatives recorded as Nonoperating income (expense) $ (25,009 ) $ (27,892 ) $ (28,670 ) $ (28,506 ) |
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, 2015 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives designated as hedges Interest rate derivative Other accrued liabilities $52,600 U.S. dollars April 2023 $ — $ (197 ) $ (197 ) Other liabilities and deferred credits (1) — (711 ) (711 ) Foreign currency derivatives Prepaid expenses and other 6,723,830 Japanese Yen September 2016 10,088 (196 ) 9,892 Long-term prepayments and other 3,728,050 Japanese Yen August 2017 509 (160 ) 349 Derivatives not designated as hedges 0 Interest rate derivative Other accrued liabilities $87,400 U.S. dollars November 2015 — (2,267 ) (2,267 ) Foreign currency derivatives Prepaid expenses and other 3,849,000 Japanese Yen August 2016 23 (12 ) 11 Fuel derivative contracts Other accrued liabilities 81,832 gallons September 2016 3,492 (27,165 ) (23,673 ) (1) Represents the noncurrent portion of the $52.6 million interest rate derivative with final maturity in April 2023. Derivative position as of December 31, 2014 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives designated as hedges Interest rate derivative Other accrued liabilities $57,400 U.S. dollars April 2023 $ — $ (26 ) $ (26 ) Other liabilities and deferred credits(1) — (103 ) (103 ) Foreign currency derivatives Prepaid expenses and other 6,909,050 Japanese Yen December 2015 13,921 — 13,921 Long-term prepayments and other 3,758,500 Japanese Yen November 2016 4,565 — 4,565 Derivatives not designated as hedges Foreign currency derivatives Prepaid expenses and other 7,714,291 Japanese Yen December 2015 1,191 — 1,191 Long-term prepayments and other 2,762,000 Japanese Yen August 2016 69 — 69 Fuel derivative contracts Other accrued liabilities 90,994 gallons December 2015 32,637 (71,447 ) (38,810 ) Negative arbitrage derivative Other accrued liabilities $444,540 U.S. dollars January 2015 — (500 ) (500 ) (1) Represents the noncurrent portion of the $57.4 million interest rate derivative with final maturity in April 2023. |
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 Three months ended September 30, Three months ended September 30, Three months ended September 30, 2015 2014 2015 2014 2015 2014 (in thousands) Foreign currency derivatives $ (1,558 ) $ (12,428 ) $ (5,003 ) $ (1,297 ) $ — $ — Interest rate derivatives 840 (283 ) 170 201 — — (Gain) loss recognized in AOCI on derivatives (effective portion) (Gain) loss reclassified from AOCI (Gain) loss recognized in Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 2015 2014 (in thousands) Foreign currency derivatives $ (6,295 ) $ (4,720 ) $ (13,415 ) $ (6,523 ) $ — $ — Interest rate derivatives 778 668 536 618 — — |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of expected maturities of long-term debt | As of September 30, 2015 , the expected maturities of long-term debt for the remainder of 2015 and the next four years, and thereafter, were as follows (in thousands): Remaining months in 2015 $ 16,186 2016 82,861 2017 82,092 2018 87,425 2019 99,070 Thereafter 449,317 $ 816,951 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 2015 2014 2015 2014 (in thousands) Service cost $ 4,006 $ 3,162 $ 12,456 $ 9,066 Interest cost 7,454 6,839 22,232 20,811 Expected return on plan assets (4,702 ) (4,842 ) (14,134 ) (14,532 ) Recognized net actuarial loss 3,012 49 8,486 499 Net periodic benefit cost $ 9,770 $ 5,208 $ 29,040 $ 15,844 |
Commitments and Contingent Li28
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of firm aircraft and engine orders | As of September 30, 2015 , the Company had the following capital commitments consisting of firm aircraft and engine orders and purchase rights: Aircraft Type Firm Orders Purchase Rights Expected Delivery Dates A330-200 aircraft 1 — In 2015 A330-800neo aircraft 6 6 Between 2019 and 2021 A321neo aircraft 16 9 Between 2017 and 2020 Rolls-Royce spare engines: A330-800neo spare engines 2 — Between 2019 and 2020 Pratt & Whitney spare engines: A321neo spare engines 2 — Between 2017 and 2018 |
Schedule of committed capital and operating expenditures | The gross committed expenditures and committed financings for those deliveries as of September 30, 2015 are detailed below: Capital Operating Total Committed Less: Committed Net Committed (in thousands) Remaining months in 2015 $ 54,051 $ 17,878 $ 71,929 $ 48,138 $ 23,791 2016 78,018 59,901 137,919 — 137,919 2017 220,806 58,637 279,443 — 279,443 2018 399,953 51,942 451,895 — 451,895 2019 488,553 47,362 535,915 — 535,915 Thereafter 442,888 264,181 707,069 — 707,069 $ 1,684,269 $ 499,901 $ 2,184,170 $ 48,138 $ 2,136,032 *See below for a detailed discussion of the committed financings Hawaiian has received for its upcoming capital commitments for aircraft deliveries. |
Supplemental Cash Flow Inform29
Supplemental Cash Flow Information Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Non-cash investing and financing activities for the nine months ended September 30, 2015 and 2014 were as follows: Nine months ended September 30, 2015 2014 (in thousands) Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a capital lease $ 2,791 $ — |
Condensed Consolidating Finan30
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Consolidating Financial Information | |
Schedule of Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three months ended September 30, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 630,657 $ 1,162 $ (81 ) $ 631,738 Operating Expenses: Aircraft fuel, including taxes and delivery — 105,483 — — 105,483 Wages and benefits — 125,884 — — 125,884 Aircraft rent — 29,544 — — 29,544 Maintenance materials and repairs — 56,021 175 — 56,196 Aircraft and passenger servicing — 30,284 — — 30,284 Commissions and other selling 1 30,314 15 (25 ) 30,305 Depreciation and amortization — 25,307 754 — 26,061 Other rentals and landing fees — 24,728 — — 24,728 Other 1,510 46,874 248 (56 ) 48,576 Total 1,511 474,439 1,192 (81 ) 477,061 Operating Income (Loss) (1,511 ) 156,218 (30 ) — 154,677 Nonoperating Income (Expense): Undistributed net income of subsidiaries 71,067 — — (71,067 ) — Interest expense and amortization of debt discounts and issuance costs (100 ) (13,406 ) — — (13,506 ) Interest income 53 638 — — 691 Capitalized interest — 698 — — 698 Losses on fuel derivatives — (25,009 ) — — (25,009 ) Loss on extinguishment of debt (54 ) — — — (54 ) Other, net — (4,515 ) — — (4,515 ) Total 70,966 (41,594 ) — (71,067 ) (41,695 ) Income (Loss) Before Income Taxes 69,455 114,624 (30 ) (71,067 ) 112,982 Income tax expense (benefit) (574 ) 43,527 — — 42,953 Net Income (Loss) $ 70,029 $ 71,097 $ (30 ) $ (71,067 ) $ 70,029 Comprehensive Income (Loss) $ 69,301 $ 70,369 $ (30 ) $ (70,339 ) $ 69,301 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three months ended September 30, 2014 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (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) Nine months ended September 30, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 1,740,118 $ 3,503 $ (308 ) $ 1,743,313 Operating Expenses: Aircraft fuel, including taxes and delivery — 329,329 — — 329,329 Wages and benefits — 369,875 — — 369,875 Aircraft rent — 86,732 — — 86,732 Maintenance materials and repairs — 167,489 1,023 — 168,512 Aircraft and passenger servicing — 87,948 — — 87,948 Commissions and other selling 5 91,260 46 (94 ) 91,217 Depreciation and amortization — 76,529 2,248 — 78,777 Other rentals and landing fees — 70,807 — — 70,807 Other 4,747 137,617 709 (214 ) 142,859 Total 4,752 1,417,586 4,026 (308 ) 1,426,056 Operating Income (Loss) (4,752 ) 322,532 (523 ) — 317,257 Nonoperating Income (Expense): Undistributed net income of subsidiaries 153,389 — — (153,389 ) — Interest expense and amortization of debt discounts and issuance costs (1,692 ) (41,050 ) — — (42,742 ) Interest income 162 1,890 — — 2,052 Capitalized interest — 2,966 — — 2,966 Losses on fuel derivatives — (28,670 ) — — (28,670 ) Loss on extinguishment of debt (7,296 ) — — — (7,296 ) Other, net — (9,325 ) — — (9,325 ) Total 144,563 (74,189 ) — (153,389 ) (83,015 ) Income (Loss) Before Income Taxes 139,811 248,343 (523 ) (153,389 ) 234,242 Income tax expense (benefit) (4,935 ) 94,431 — — 89,496 Net Income (Loss) $ 144,746 $ 153,912 $ (523 ) $ (153,389 ) $ 144,746 Comprehensive Income (Loss) $ 145,278 $ 154,444 $ (523 ) $ (153,921 ) $ 145,278 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Nine months ended September 30, 2014 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (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 |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets September 30, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 65,949 $ 271,376 $ 7,849 $ — $ 345,174 Restricted cash — 5,000 — — 5,000 Short-term investments — 265,437 — — 265,437 Accounts receivable, net 63 80,487 289 (157 ) 80,682 Spare parts and supplies, net — 20,359 — — 20,359 Deferred tax assets, net — 22,102 — — 22,102 Prepaid expenses and other 50 52,852 111 — 53,013 Total 66,062 717,613 8,249 (157 ) 791,767 Property and equipment at cost — 1,974,943 58,184 — 2,033,127 Less accumulated depreciation and amortization — (410,746 ) (4,448 ) — (415,194 ) Property and equipment, net — 1,564,197 53,736 — 1,617,933 Long-term prepayments and other 11 90,097 — — 90,108 Deferred tax assets, net 25,490 — — (25,490 ) — Goodwill and other intangible assets, net — 125,983 — — 125,983 Intercompany receivable — 242,726 — (242,726 ) — Investment in consolidated subsidiaries 533,839 — — (533,839 ) — TOTAL ASSETS $ 625,402 $ 2,740,616 $ 61,985 $ (802,212 ) $ 2,625,791 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 557 $ 101,024 $ 439 $ (157 ) $ 101,863 Air traffic liability — 479,398 2,432 — 481,830 Other accrued liabilities 343 139,214 270 — 139,827 Current maturities of long-term debt, less discount, and capital lease obligations 3,234 92,571 — — 95,805 Total 4,134 812,207 3,141 (157 ) 819,325 Long-term debt and capital lease obligations — 818,608 — — 818,608 Intercompany payable 242,726 — — (242,726 ) — Other liabilities and deferred credits: 0 Accumulated pension and other postretirement benefit obligations — 409,047 — — 409,047 Other liabilities and deferred credits 1,392 82,143 750 — 84,285 Deferred tax liabilities, net — 142,866 — (25,490 ) 117,376 Total 1,392 634,056 750 (25,490 ) 610,708 Shareholders’ equity 377,150 475,745 58,094 (533,839 ) 377,150 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 625,402 $ 2,740,616 $ 61,985 $ (802,212 ) $ 2,625,791 Condensed Consolidating Balance Sheets December 31, 2014 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 79,532 $ 179,676 $ 4,879 $ — $ 264,087 Restricted cash — 6,566 — — 6,566 Short-term investments — 260,121 — — 260,121 Accounts receivable, net 63 80,289 531 (146 ) 80,737 Spare parts and supplies, net — 18,011 — — 18,011 Deferred tax assets, net — 21,943 — — 21,943 Prepaid expenses and other 12 53,281 89 — 53,382 Total 79,607 619,887 5,499 (146 ) 704,847 Property and equipment at cost — 2,006,274 34,726 — 2,041,000 Less accumulated depreciation and amortization — (365,279 ) (2,228 ) — (367,507 ) Property and equipment, net — 1,640,995 32,498 — 1,673,493 Long-term prepayments and other 537 95,688 — — 96,225 Deferred tax assets, net 20,556 — — (20,556 ) — Goodwill and other intangible assets, net — 127,963 — — 127,963 Intercompany receivable — 15,081 — (15,081 ) — Investment in consolidated subsidiaries 351,391 — — (351,391 ) — TOTAL ASSETS $ 452,091 $ 2,499,614 $ 37,997 $ (387,174 ) $ 2,602,528 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 514 $ 96,196 $ 696 $ (146 ) $ 97,260 Air traffic liability — 421,547 2,789 — 424,336 Other accrued liabilities 1,686 140,088 145 — 141,919 Current maturities of long-term debt, less discount, and capital lease obligations 66,530 89,819 — — 156,349 Total 68,730 747,650 3,630 (146 ) 819,864 Long-term debt and capital lease obligations — 893,288 — — 893,288 Intercompany payable 15,081 — — (15,081 ) — Other liabilities and deferred credits: 0 Accumulated pension and other postretirement benefit obligations — 407,864 — — 407,864 Other liabilities and deferred credits 1,047 70,853 750 — 72,650 Deferred tax liabilities, net — 62,185 — (20,556 ) 41,629 Total 1,047 540,902 750 (20,556 ) 522,143 Shareholders’ equity 367,233 317,774 33,617 (351,391 ) 367,233 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 452,091 $ 2,499,614 $ 37,997 $ (387,174 ) $ 2,602,528 |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Nine months ended September 30, 2015 Parent Issuer / Subsidiary Non- Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities $ (3,461 ) $ 391,577 $ 1,356 $ — $ 389,472 Cash Flows From Investing Activities: Net payments to affiliates (25,000 ) (223,411 ) — 248,411 — Additions to property and equipment, including pre-delivery deposits — (81,888 ) (23,441 ) — (105,329 ) Proceeds from purchase assignment and leaseback transaction — 86,033 — — 86,033 Proceeds from disposition of property and equipment — 3,551 55 — 3,606 Purchases of investments — (178,177 ) — — (178,177 ) Sales of investments — 170,904 — — 170,904 Net cash used in investing activities (25,000 ) (222,988 ) (23,386 ) 248,411 (22,963 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (74,719 ) — — (74,719 ) Repurchases of convertible notes (171,598 ) — — — (171,598 ) Net payments from affiliates 223,411 — 25,000 (248,411 ) — Repurchases of common stock (37,622 ) — — — (37,622 ) Other 687 (2,170 ) — — (1,483 ) Net cash provided by (used in) financing activities 14,878 (76,889 ) 25,000 (248,411 ) (285,422 ) Net increase (decrease) in cash and cash equivalents (13,583 ) 91,700 2,970 — 81,087 Cash and cash equivalents - Beginning of Period 79,532 179,676 4,879 — 264,087 Cash and cash equivalents - End of Period $ 65,949 $ 271,376 $ 7,849 $ — $ 345,174 Condensed Consolidating Statements of Cash Flows Nine months ended September 30, 2014 Parent Issuer / Subsidiary Non- Eliminations Consolidated (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 ) 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: Long-term borrowings — 293,430 — — 293,430 Repayments of long-term debt and capital lease obligations — (46,392 ) — — (46,392 ) Net payments from parent company — 34,443 — (34,443 ) — Other 5,487 14,402 — — 19,889 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 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Amounts reclassified from AOCI | ||||
Foreign currency derivative gains, net | $ (556,929) | $ (566,985) | $ (1,525,461) | $ (1,541,795) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1,114) | (637) | (2,750) | (3,393) |
Income Before Income Taxes | (112,982) | (58,364) | (234,242) | (95,051) |
Tax expense (benefit) | 42,953 | 22,789 | 89,496 | 37,224 |
Net Income | (70,029) | (35,575) | (144,746) | (57,827) |
Gains on derivatives designated as hedging instruments | Foreign currency derivatives gains | ||||
Amounts reclassified from AOCI | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (3,111) | (793) | (8,341) | (4,045) |
Gains on derivatives designated as hedging instruments | Interest rate derivatives loss | ||||
Amounts reclassified from AOCI | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 104 | 121 | 328 | 379 |
Gains on derivatives designated as hedging instruments | Amount reclassified from accumulated other comprehensive loss | ||||
Amounts reclassified from AOCI | ||||
Income Before Income Taxes | (4,833) | (1,096) | (12,879) | (5,905) |
Tax expense (benefit) | 1,826 | 424 | 4,866 | 2,239 |
Net Income | (3,007) | (672) | (8,013) | (3,666) |
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 | (5,003) | (1,297) | (13,415) | (6,523) |
Gains on derivatives designated as hedging instruments | Amount reclassified from accumulated other comprehensive loss | Interest rate derivatives loss | ||||
Amounts reclassified from AOCI | ||||
Interest Income (Expense), Nonoperating, Net | 170 | 201 | 536 | 618 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||
Amounts reclassified from AOCI | ||||
Actuarial loss (gains) | 2,955 | (64) | 8,315 | 388 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||
Amounts reclassified from AOCI | ||||
Actuarial loss (gains) | 57 | 113 | 171 | 111 |
Defined benefit pension | ||||
Amounts reclassified from AOCI | ||||
Actuarial loss (gains) | 3,012 | 49 | 8,486 | 499 |
Reclassification from AOCI, Current Period, Tax | (1,118) | (5) | (3,194) | (215) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,894 | 44 | 5,292 | 284 |
Short-Term Investments | ||||
Amounts reclassified from AOCI | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1) | (9) | (29) | (11) |
Short-Term Investments | Amount reclassified from accumulated other comprehensive loss | ||||
Amounts reclassified from AOCI | ||||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | (1) | (10) | (36) | (12) |
Income Before Income Taxes | (1) | (10) | (36) | (12) |
Tax expense (benefit) | 0 | 1 | 7 | 1 |
Net Income | $ (1) | $ (9) | $ (29) | $ (11) |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss - Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | $ (121,552) | $ (51,113) | $ (122,812) | $ (42,686) |
Other comprehensive income (loss) before reclassifications, net of tax | 386 | 7,672 | 3,282 | 2,001 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (1,114) | (637) | (2,750) | (3,393) |
Total other comprehensive income (loss) | (728) | 7,035 | 532 | (1,392) |
Ending balance | (122,280) | (44,078) | (122,280) | (44,078) |
Gains (losses) on derivatives designated as hedging instruments | Interest Rate Derivatives | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | 262 | 471 | 254 | 1,096 |
Other comprehensive income (loss) before reclassifications, net of tax | (641) | 39 | (857) | (844) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 104 | 121 | 328 | 379 |
Total other comprehensive income (loss) | (537) | 160 | (529) | (465) |
Ending balance | (275) | 631 | (275) | 631 |
Gains (losses) on derivatives designated as hedging instruments | Foreign Currency Derivatives | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | 10,423 | 95 | 12,708 | 8,277 |
Other comprehensive income (loss) before reclassifications, net of tax | 967 | 7,714 | 3,912 | 2,784 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (3,111) | (793) | (8,341) | (4,045) |
Total other comprehensive income (loss) | (2,144) | 6,921 | (4,429) | (1,261) |
Ending balance | 8,279 | 7,016 | 8,279 | 7,016 |
Defined Benefit Pension Items | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | (132,163) | (51,714) | (135,520) | (52,059) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | (41) | 105 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1,894 | 44 | 5,292 | 284 |
Total other comprehensive income (loss) | 1,894 | 44 | 5,251 | 389 |
Ending balance | (130,269) | (51,670) | (130,269) | (51,670) |
Short-Term Investments | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | (74) | 35 | (254) | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | 60 | (81) | 268 | (44) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (1) | (9) | (29) | (11) |
Total other comprehensive income (loss) | 59 | (90) | 239 | (55) |
Ending balance | $ (15) | $ (55) | $ (15) | $ (55) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Potential Dilution (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net Income | $ 70,029 | $ 35,575 | $ 144,746 | $ 57,827 |
Denominator: | ||||
Weighted average common stock shares outstanding - Basic | 53,731 | 53,878 | 54,266 | 53,359 |
Assumed exercise of stock options and awards | 396 | 848 | 458 | 1,061 |
Assumed conversion of convertible note premium | 350 | 4,965 | 1,618 | 4,498 |
Assumed conversion of warrants | 6,351 | 3,359 | 6,139 | 2,767 |
Weighted average common stock shares outstanding - Diluted | 60,828 | 63,050 | 62,481 | 61,685 |
Net Income Per Share | ||||
Basic (in dollars per share) | $ 1.30 | $ 0.66 | $ 2.67 | $ 1.08 |
Diluted (in dollars per share) | $ 1.15 | $ 0.56 | $ 2.32 | $ 0.94 |
Earnings Per Share -Convertible
Earnings Per Share -Convertible Note Transaction (Details) $ / shares in Units, equity_instrument in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015USD ($)$ / shares | Sep. 30, 2015USD ($)equity_instrument$ / shares | Mar. 31, 2011 | |
5% convertible notes, due in 2016 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.00% | ||
Principal amount | $ | $ 3.3 | $ 3.3 | |
Repurchase of convertible notes, principal amount | $ | $ 1 | $ 67.8 | |
Number of shares in which the convertible note can be converted | equity_instrument | 0.4 | ||
Conversion price (in dollars per share) | $ 7.88 | $ 7.88 | |
Warrant [Member] | |||
Debt Instrument [Line Items] | |||
Convertible Note Hedge strike price (per share) | $ 10 | $ 10 |
Earnings Per Share -Share Repur
Earnings Per Share -Share Repurchase Program (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Apr. 30, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Authorized Repurchase Amount | $ 100 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 62.3 | $ 62.3 | |
Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchased During Period, Value | $ 20 | $ 37.7 | |
Stock Repurchased During Period, Shares | 900,000 | 1,600,000 |
Short-Term Investments (Details
Short-Term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Short-Term Investments | ||
Amortized Cost | $ 265,462 | $ 260,529 |
Gross Unrealized Gains | 186 | 47 |
Gross Unrealized Losses | (211) | (455) |
Fair Value | 265,437 | 260,121 |
Contractual maturities of short-term investments | ||
Under 1 Year | 124,580 | |
1 to 5 Years | 140,857 | |
Total | 265,437 | |
Corporate debt | ||
Short-Term Investments | ||
Amortized Cost | 169,615 | 180,794 |
Gross Unrealized Gains | 84 | 43 |
Gross Unrealized Losses | (205) | (394) |
Fair Value | 169,494 | 180,443 |
Contractual maturities of short-term investments | ||
Under 1 Year | 72,807 | |
1 to 5 Years | 96,687 | |
Total | 169,494 | |
U.S. government and agency debt | ||
Short-Term Investments | ||
Amortized Cost | 47,990 | 38,268 |
Gross Unrealized Gains | 84 | 0 |
Gross Unrealized Losses | (2) | (40) |
Fair Value | 48,072 | 38,228 |
Contractual maturities of short-term investments | ||
Under 1 Year | 12,441 | |
1 to 5 Years | 35,631 | |
Total | 48,072 | |
Municipal bonds | ||
Short-Term Investments | ||
Amortized Cost | 23,982 | 23,849 |
Gross Unrealized Gains | 18 | 4 |
Gross Unrealized Losses | (1) | (16) |
Fair Value | 23,999 | 23,837 |
Contractual maturities of short-term investments | ||
Under 1 Year | 16,961 | |
1 to 5 Years | 7,038 | |
Total | 23,999 | |
Other fixed income securities | ||
Short-Term Investments | ||
Amortized Cost | 23,875 | 17,618 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | (5) |
Fair Value | 23,872 | $ 17,613 |
Contractual maturities of short-term investments | ||
Under 1 Year | 22,371 | |
1 to 5 Years | 1,501 | |
Total | $ 23,872 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities, Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets measured at fair value | ||
Short-term investments | $ 265,437 | $ 260,121 |
Recurring basis | ||
Assets measured at fair value | ||
Cash equivalents | 150,388 | 55,072 |
Restricted cash | 5,000 | 6,566 |
Short-term investments | 265,437 | 260,121 |
Total assets measured at fair value | 434,937 | 374,142 |
Liabilities measured at fair value | ||
Total liabilities measured at fair value | 30,708 | 72,076 |
Recurring basis | Fuel derivative contracts | Heating oil put options | ||
Assets measured at fair value | ||
Derivative contracts | 3,480 | 32,637 |
Recurring basis | Fuel derivative contracts | Heating oil swaps | ||
Assets measured at fair value | ||
Derivative contracts | 12 | |
Liabilities measured at fair value | ||
Derivative contracts | 27,165 | 71,447 |
Recurring basis | Foreign Currency Derivatives | ||
Assets measured at fair value | ||
Derivative contracts | 10,620 | 19,746 |
Liabilities measured at fair value | ||
Derivative contracts | 368 | |
Recurring basis | Interest Rate Derivatives | ||
Liabilities measured at fair value | ||
Derivative contracts | 3,175 | 129 |
Recurring basis | Negative interest arbitrage derivative | ||
Liabilities measured at fair value | ||
Derivative contracts | 500 | |
Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Cash equivalents | 133,602 | 35,913 |
Restricted cash | 5,000 | 6,566 |
Total assets measured at fair value | 138,602 | 42,479 |
Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Cash equivalents | 16,786 | 19,159 |
Short-term investments | 265,437 | 260,121 |
Total assets measured at fair value | 296,335 | 331,663 |
Liabilities measured at fair value | ||
Total liabilities measured at fair value | 30,708 | 71,576 |
Recurring basis | Level 2 | Fuel derivative contracts | Heating oil put options | ||
Assets measured at fair value | ||
Derivative contracts | 3,480 | 32,637 |
Recurring basis | Level 2 | Fuel derivative contracts | Heating oil swaps | ||
Assets measured at fair value | ||
Derivative contracts | 12 | |
Liabilities measured at fair value | ||
Derivative contracts | 27,165 | 71,447 |
Recurring basis | Level 2 | Foreign Currency Derivatives | ||
Assets measured at fair value | ||
Derivative contracts | 10,620 | 19,746 |
Liabilities measured at fair value | ||
Derivative contracts | 368 | |
Recurring basis | Level 2 | Interest Rate Derivatives | ||
Liabilities measured at fair value | ||
Derivative contracts | $ 3,175 | 129 |
Recurring basis | Level 3 | ||
Liabilities measured at fair value | ||
Total liabilities measured at fair value | 500 | |
Recurring basis | Level 3 | Negative interest arbitrage derivative | ||
Liabilities measured at fair value | ||
Derivative contracts | $ 500 |
Fair Value Measurements - Sch38
Fair Value Measurements - Schedule of Certain Debt (Details) - Recurring basis - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Measurements | ||
Carrying value of debt | $ 816,897 | $ 947,897 |
Fair value of debt | 815,578 | 956,811 |
Level 2 | ||
Fair Value Measurements | ||
Fair value of debt | 3,224 | 69,766 |
Level 3 | ||
Fair Value Measurements | ||
Fair value of debt | $ 812,354 | $ 887,045 |
Financial Derivative Instrume39
Financial Derivative Instruments - Risk Management (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative instrument | ||||
Losses on fuel derivatives recorded as Nonoperating income (expense) | $ (25,009) | $ (27,892) | $ (28,670) | $ (28,506) |
Derivatives Not Designated as Hedging Instruments | Fuel derivative contracts | ||||
Derivative instrument | ||||
Losses realized at settlement | (13,777) | (4,632) | (44,921) | (6,530) |
Reversal of prior period unrealized amounts | 9,953 | 56 | 38,293 | (1,816) |
Unrealized losses on contracts that will settle in future periods | (21,185) | (23,316) | (22,042) | (20,160) |
Losses on fuel derivatives recorded as Nonoperating income (expense) | $ (25,009) | $ (27,892) | (28,670) | $ (28,506) |
Derivatives Designated as Hedging Instruments | Foreign Currency Derivatives | ||||
Derivative instrument | ||||
Accumulated other comprehensive income (loss) expected to be reclassified to earnings in the next 12 months | $ 12,000 | |||
Reclassification estimated time period | 12 months |
Financial Derivative Instrume40
Financial Derivative Instruments - Derivative Position (Details) ¥ in Thousands, gal in Thousands, AUD in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015JPY (¥)gal | Dec. 31, 2014JPY (¥)gal | Sep. 30, 2015AUD | Sep. 30, 2015USD ($) | Dec. 31, 2014AUD | Dec. 31, 2014USD ($) | |
Derivatives designated as hedging instruments | Interest Rate Derivatives | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | $ 52,600 | $ 57,400 | ||||
Derivatives designated as hedging instruments | Interest Rate Derivatives | Other Current Liabilities | ||||||
Fair Value of Derivatives | ||||||
Gross fair value of assets, current | 0 | 0 | ||||
Gross fair value of liabilities, current | (197) | (26) | ||||
Net derivative position | (197) | (26) | ||||
Derivatives designated as hedging instruments | Interest Rate Derivatives | Deferred Credits and Other Liabilities | ||||||
Fair Value of Derivatives | ||||||
Gross fair value of assets, noncurrent | 0 | 0 | ||||
Gross fair value of liabilities, noncurrent | (711) | (103) | ||||
Net derivative position | (711) | (103) | ||||
Derivatives designated as hedging instruments | Foreign Currency Derivatives | Prepaid expenses and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | ¥ 6,723,830 | ¥ 6,909,050 | AUD 38,257 | AUD 51,380 | ||
Gross fair value of assets, current | 10,088 | 13,921 | ||||
Gross fair value of liabilities, current | (196) | 0 | ||||
Net derivative position | 9,892 | 13,921 | ||||
Derivatives designated as hedging instruments | Foreign Currency Derivatives | Long-term prepayments and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | 3,728,050 | 3,758,500 | 7,349 | 13,080 | ||
Gross fair value of assets, noncurrent | 509 | 4,565 | ||||
Gross fair value of liabilities, noncurrent | (160) | |||||
Net derivative position | 349 | 4,565 | ||||
Derivatives not designated as hedging instruments | Interest Rate Derivatives | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | 87,400 | |||||
Derivatives not designated as hedging instruments | Interest Rate Derivatives | Other Current Liabilities | ||||||
Fair Value of Derivatives | ||||||
Gross fair value of assets, current | 0 | |||||
Gross fair value of liabilities, current | (2,267) | |||||
Net derivative position | (2,267) | |||||
Derivatives not designated as hedging instruments | Foreign Currency Derivatives | Prepaid expenses and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | 3,849,000 | 7,714,291 | 9,443 | 43,546 | ||
Gross fair value of assets, current | 23 | 1,191 | ||||
Gross fair value of liabilities, current | (12) | 0 | ||||
Net derivative position | 11 | 1,191 | ||||
Derivatives not designated as hedging instruments | Foreign Currency Derivatives | Long-term prepayments and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | ¥ 0 | ¥ 2,762,000 | AUD 0 | AUD 3,500 | ||
Gross fair value of assets, noncurrent | 69 | |||||
Gross fair value of liabilities, noncurrent | 0 | |||||
Net derivative position | 69 | |||||
Derivatives not designated as hedging instruments | Fuel derivative contracts | Other Current Liabilities | ||||||
Fair Value of Derivatives | ||||||
Notional Amount (Volume) | gal | 81,832 | 90,994 | ||||
Gross fair value of assets, current | 3,492 | 32,637 | ||||
Gross fair value of liabilities, current | (27,165) | (71,447) | ||||
Net derivative position | $ (23,673) | (38,810) | ||||
Derivatives not designated as hedging instruments | Negative arbitrage derivative | Other Current Liabilities | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | 444,540 | |||||
Gross fair value of liabilities, current | (500) | |||||
Net derivative position | $ (500) |
Financial Derivative Instrume41
Financial Derivative Instruments - Impact of Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Foreign Currency Derivatives | ||||
Gains (losses) for designated hedge contracts | ||||
(Gain) loss recognized in AOCI on derivatives (effective portion) | $ (1,558) | $ (12,428) | $ (6,295) | $ (4,720) |
(Gain) loss reclassified from AOCI into income (effective portion) | (5,003) | (1,297) | (13,415) | (6,523) |
(Gain) loss recognized in nonoperating (income) expense (ineffective portion) | 0 | 0 | 0 | 0 |
Interest Rate Derivatives | ||||
Gains (losses) for designated hedge contracts | ||||
(Gain) loss recognized in AOCI on derivatives (effective portion) | 840 | (283) | 778 | 668 |
(Gain) loss reclassified from AOCI into income (effective portion) | 170 | 201 | 536 | 618 |
(Gain) loss recognized in nonoperating (income) expense (ineffective portion) | $ 0 | $ 0 | $ 0 | $ 0 |
Financial Derivative Instrume42
Financial Derivative Instruments - Risk and Collateral (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net derivative position | $ 26,800,000 | |
Collateral posted with counterparties | $ 0 | $ 600,000 |
Debt - Schedule of Maturities (
Debt - Schedule of Maturities (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
Remaining months in 2015 | $ 16,186 |
2,016 | 82,861 |
2,017 | 82,092 |
2,018 | 87,425 |
2,019 | 99,070 |
Thereafter | 449,317 |
Long-term Debt, Gross | $ 816,951 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Repayments of Convertible Debt | $ 171,598 | $ 0 | ||
Loss on extinguishment of debt | $ (54) | $ 0 | $ (7,296) | $ 0 |
Call Option [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible Note Hedge strike price (per share) | $ 7.88 | $ 7.88 | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 10.9 | 10.9 | ||
Warrant [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible Note Hedge strike price (per share) | $ 10 | $ 10 | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 10.9 | 10.9 | ||
5% convertible notes, due in 2016 | ||||
Debt Instrument [Line Items] | ||||
Repurchase of convertible notes, principal amount | $ 1,000 | $ 67,800 | ||
Repayments of Convertible Debt | $ 3,200 | $ 171,600 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Components of Net Periodic Benefit Cost | ||||
Service cost | $ 4,006 | $ 3,162 | $ 12,456 | $ 9,066 |
Interest cost | 7,454 | 6,839 | 22,232 | 20,811 |
Expected return on plan assets | (4,702) | (4,842) | (14,134) | (14,532) |
Recognized net actuarial loss | 3,012 | 49 | 8,486 | 499 |
Net periodic benefit cost | 9,770 | 5,208 | 29,040 | 15,844 |
Employer contribution | $ 3,200 | $ 2,300 | 16,700 | $ 8,900 |
Defined Benefit Plan, Discretionary Contributions by Employer | $ 7,300 |
Commitments and Contingent Li46
Commitments and Contingent Liabilities - Capital Commitments and Operating Expenditures (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)aircraft_purchase_rightaircraft_firm_orderspare_engine_ordered | |
Total Committed Expenditures | |
Remaining months in 2015 | $ 71,929 |
2,016 | 137,919 |
2,017 | 279,443 |
2,018 | 451,895 |
2,019 | 535,915 |
Thereafter | 707,069 |
Total | 2,184,170 |
Less: Committed Financing for Upcoming Aircraft Deliveries | |
Remaining months in 2015 | 48,138 |
Total | 48,138 |
Net Committed Expenditures | |
Remaining months in 2015 | 23,791 |
2,016 | 137,919 |
2,017 | 279,443 |
2,018 | 451,895 |
2,019 | 535,915 |
Thereafter | 707,069 |
Total | 2,136,032 |
Capital | |
Total Committed Expenditures | |
Remaining months in 2015 | 54,051 |
2,016 | 78,018 |
2,017 | 220,806 |
2,018 | 399,953 |
2,019 | 488,553 |
Thereafter | 442,888 |
Total | $ 1,684,269 |
Capital | A330-200 aircraft | |
Commitments and Contingent Liabilities | |
Number of firm aircraft orders | aircraft_firm_order | 1 |
Number of aircraft purchase rights | aircraft_purchase_right | 0 |
Capital | A330-800neo aircraft | |
Commitments and Contingent Liabilities | |
Number of firm aircraft orders | aircraft_firm_order | 6 |
Number of aircraft purchase rights | aircraft_purchase_right | 6 |
Capital | A330-800neo aircraft | Rolls-Royce spare engines | |
Commitments and Contingent Liabilities | |
Firm orders, number of spare engines | spare_engine_ordered | 2 |
Capital | A321neo aircraft | |
Commitments and Contingent Liabilities | |
Number of firm aircraft orders | aircraft_firm_order | 16 |
Number of aircraft purchase rights | aircraft_purchase_right | 9 |
Capital | A321neo aircraft | Pratt & Whitney spare engines | |
Commitments and Contingent Liabilities | |
Firm orders, number of spare engines | spare_engine_ordered | 2 |
Operating | |
Total Committed Expenditures | |
Remaining months in 2015 | $ 17,878 |
2,016 | 59,901 |
2,017 | 58,637 |
2,018 | 51,942 |
2,019 | 47,362 |
Thereafter | 264,181 |
Total | $ 499,901 |
Commitments and Contingent Li47
Commitments and Contingent Liabilities - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | |
Credit Card Processing Agreements | |||
Commitments | |||
Restricted cash | $ 5 | $ 5 | |
Maximum limit of holdback (as a percent) | 100.00% | ||
A330-200 aircraft | |||
Commitments | |||
Total committed lease financing | $ 48 | ||
Sale Leaseback, Length of Time | 12 years | ||
Term of Lease | 6 years | ||
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||
Minimum Lease Payments, Sale Leaseback Transactions, Next Twelve Months | $ 2.2 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Two Years | 8.4 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Three Years | 8.4 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Four Years | 8.4 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Five Years | 8.4 | ||
Minimum Lease Payments, Sale Leaseback Transactions, Thereafter | 65.4 | ||
Other Commitment, Fiscal Year Maturity [Abstract] | |||
Other Commitment, Due in Second Year | 5.1 | ||
Other Commitment, Due in Third Year | 8.9 | ||
Other Commitment, Due in Fourth Year | 8.9 | ||
Other Commitment, Due in Fifth Year | 8.9 | ||
Other Commitment, Due after Fifth Year | $ 21.5 |
Supplemental Cash Flow Inform48
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Supplemental Cash Flow Information [Abstract] | ||
Property and equipment acquired through a capital lease | $ 2,791 | $ 0 |
Condensed Consolidating Finan49
Condensed Consolidating Financial Information - Narrative and Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)pass_through_trust | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)pass_through_trust | Sep. 30, 2014USD ($) | |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Operating Revenue | $ 631,738 | $ 639,462 | $ 1,743,313 | $ 1,740,040 |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 105,483 | 182,219 | 329,329 | 527,497 |
Wages and benefits | 125,884 | 114,469 | 369,875 | 334,441 |
Aircraft rent | 29,544 | 26,724 | 86,732 | 79,098 |
Maintenance, materials and repairs | 56,196 | 51,293 | 168,512 | 168,002 |
Aircraft and passenger servicing | 30,284 | 31,848 | 87,948 | 92,929 |
Commissions and other selling | 30,305 | 32,015 | 91,217 | 94,123 |
Depreciation and amortization | 26,061 | 24,384 | 78,777 | 70,960 |
Other rentals and landing fees | 24,728 | 23,637 | 70,807 | 65,855 |
Other | 48,576 | 46,704 | 142,859 | 139,335 |
Total | 477,061 | 533,293 | 1,426,056 | 1,572,240 |
Operating Income | 154,677 | 106,169 | 317,257 | 167,800 |
Nonoperating Income (Expense): | ||||
Interest expense and amortization of debt discounts and issuance costs | (13,506) | (17,104) | (42,742) | (48,111) |
Interest income | 691 | 471 | 2,052 | 1,088 |
Capitalized interest | 698 | 1,834 | 2,966 | 6,584 |
Losses on fuel derivatives | (25,009) | (27,892) | (28,670) | (28,506) |
Loss on extinguishment of debt | (54) | 0 | (7,296) | 0 |
Other, net | (4,515) | (5,114) | (9,325) | (3,804) |
Total | (41,695) | (47,805) | (83,015) | (72,749) |
Income Before Income Taxes | 112,982 | 58,364 | 234,242 | 95,051 |
Income tax expense | 42,953 | 22,789 | 89,496 | 37,224 |
Net Income | 70,029 | 35,575 | 144,746 | 57,827 |
Comprehensive Income (Loss) | 69,301 | 42,610 | 145,278 | 56,435 |
Parent Issuer / Guarantor | ||||
Operating Expenses: | ||||
Commissions and other selling | 1 | 0 | 5 | 0 |
Other rentals and landing fees | 5 | 5 | ||
Other | 1,510 | 1,246 | 4,747 | 4,015 |
Total | 1,511 | 1,251 | 4,752 | 4,020 |
Operating Income | (1,511) | (1,251) | (4,752) | (4,020) |
Nonoperating Income (Expense): | ||||
Undistributed net income of subsidiaries | 71,067 | 37,900 | 153,389 | 64,787 |
Interest expense and amortization of debt discounts and issuance costs | (100) | (2,260) | (1,692) | (6,650) |
Interest income | 53 | 47 | 162 | 126 |
Loss on extinguishment of debt | (54) | (7,296) | ||
Total | 70,966 | 35,687 | 144,563 | 58,263 |
Income Before Income Taxes | 69,455 | 34,436 | 139,811 | 54,243 |
Income tax expense | (574) | (1,139) | (4,935) | (3,584) |
Net Income | 70,029 | 35,575 | 144,746 | 57,827 |
Comprehensive Income (Loss) | $ 69,301 | 42,610 | $ 145,278 | 56,435 |
Subsidiary Issuer / Guarantor | ||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Number of pass-through trusts | pass_through_trust | 2 | 2 | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% | ||
Operating Revenue | $ 630,657 | 638,414 | $ 1,740,118 | 1,737,520 |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 105,483 | 182,219 | 329,329 | 527,497 |
Wages and benefits | 125,884 | 114,469 | 369,875 | 334,441 |
Aircraft rent | 29,544 | 26,724 | 86,732 | 79,098 |
Maintenance, materials and repairs | 56,021 | 51,029 | 167,489 | 167,499 |
Aircraft and passenger servicing | 30,284 | 31,848 | 87,948 | 92,929 |
Commissions and other selling | 30,314 | 32,024 | 91,260 | 94,149 |
Depreciation and amortization | 25,307 | 23,654 | 76,529 | 69,496 |
Other rentals and landing fees | 24,728 | 23,632 | 70,807 | 65,850 |
Other | 46,874 | 45,291 | 137,617 | 134,729 |
Total | 474,439 | 530,890 | 1,417,586 | 1,565,688 |
Operating Income | 156,218 | 107,524 | 322,532 | 171,832 |
Nonoperating Income (Expense): | ||||
Interest expense and amortization of debt discounts and issuance costs | (13,406) | (14,844) | (41,050) | (41,461) |
Interest income | 638 | 424 | 1,890 | 962 |
Capitalized interest | 698 | 1,834 | 2,966 | 6,584 |
Losses on fuel derivatives | (25,009) | (27,892) | (28,670) | (28,506) |
Other, net | (4,515) | (5,114) | (9,325) | (3,804) |
Total | (41,594) | (45,592) | (74,189) | (66,225) |
Income Before Income Taxes | 114,624 | 61,932 | 248,343 | 105,607 |
Income tax expense | 43,527 | 23,928 | 94,431 | 40,808 |
Net Income | 71,097 | 38,004 | 153,912 | 64,799 |
Comprehensive Income (Loss) | 70,369 | 45,039 | 154,444 | 63,407 |
Non-Guarantor Subsidiaries | ||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Operating Revenue | 1,162 | 1,145 | 3,503 | 2,801 |
Operating Expenses: | ||||
Maintenance, materials and repairs | 175 | 264 | 1,023 | 503 |
Commissions and other selling | 15 | 11 | 46 | 43 |
Depreciation and amortization | 754 | 730 | 2,248 | 1,464 |
Other | 248 | 244 | 709 | 803 |
Total | 1,192 | 1,249 | 4,026 | 2,813 |
Operating Income | (30) | (104) | (523) | (12) |
Nonoperating Income (Expense): | ||||
Income Before Income Taxes | (30) | (104) | (523) | (12) |
Net Income | (30) | (104) | (523) | (12) |
Comprehensive Income (Loss) | (30) | (104) | (523) | (12) |
Eliminations | ||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Operating Revenue | (81) | (97) | (308) | (281) |
Operating Expenses: | ||||
Commissions and other selling | (25) | (20) | (94) | (69) |
Other | (56) | (77) | (214) | (212) |
Total | (81) | (97) | (308) | (281) |
Nonoperating Income (Expense): | ||||
Undistributed net income of subsidiaries | (71,067) | (37,900) | (153,389) | (64,787) |
Total | (71,067) | (37,900) | (153,389) | (64,787) |
Income Before Income Taxes | (71,067) | (37,900) | (153,389) | (64,787) |
Net Income | (71,067) | (37,900) | (153,389) | (64,787) |
Comprehensive Income (Loss) | $ (70,339) | $ (44,935) | $ (153,921) | $ (63,395) |
Condensed Consolidating Finan50
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 345,174 | $ 264,087 | $ 328,255 | $ 423,384 |
Restricted cash | 5,000 | 6,566 | ||
Short-term investments | 265,437 | 260,121 | ||
Accounts receivable, net | 80,682 | 80,737 | ||
Spare parts and supplies, net | 20,359 | 18,011 | ||
Deferred tax assets, net | 22,102 | 21,943 | ||
Prepaid expenses and other | 53,013 | 53,382 | ||
Total | 791,767 | 704,847 | ||
Property and equipment at cost | 2,033,127 | 2,041,000 | ||
Less accumulated depreciation and amortization | (415,194) | (367,507) | ||
Property and equipment, net | 1,617,933 | 1,673,493 | ||
Long-term prepayments and other | 90,108 | 96,225 | ||
Goodwill and other intangible assets, net | 125,983 | 127,963 | ||
Total Assets | 2,625,791 | 2,602,528 | ||
Current liabilities: | ||||
Accounts payable | 101,863 | 97,260 | ||
Air traffic liability | 481,830 | 424,336 | ||
Other accrued liabilities | 139,827 | 141,919 | ||
Current maturities of long-term debt, less discount, and capital lease obligations | 95,805 | 156,349 | ||
Total | 819,325 | 819,864 | ||
Long-term debt and capital lease obligations | 818,608 | 893,288 | ||
Other liabilities and deferred credits: | ||||
Accumulated pension and other postretirement benefit obligations | 409,047 | 407,864 | ||
Other liabilities and deferred credits | 84,285 | 72,650 | ||
Deferred tax liabilities, net | 117,376 | 41,629 | ||
Total | 610,708 | 522,143 | ||
Shareholders’ equity | 377,150 | 367,233 | ||
Total Liabilities and Shareholders’ Equity | 2,625,791 | 2,602,528 | ||
Parent Issuer / Guarantor | ||||
Current assets: | ||||
Cash and cash equivalents | 65,949 | 79,532 | 48,982 | 84,797 |
Accounts receivable, net | 63 | 63 | ||
Prepaid expenses and other | 50 | 12 | ||
Total | 66,062 | 79,607 | ||
Long-term prepayments and other | 11 | 537 | ||
Deferred tax assets, net | 25,490 | 20,556 | ||
Investment in consolidated subsidiaries | 533,839 | 351,391 | ||
Total Assets | 625,402 | 452,091 | ||
Current liabilities: | ||||
Accounts payable | 557 | 514 | ||
Other accrued liabilities | 343 | 1,686 | ||
Current maturities of long-term debt, less discount, and capital lease obligations | 3,234 | 66,530 | ||
Total | 4,134 | 68,730 | ||
Intercompany payable | 242,726 | 15,081 | ||
Other liabilities and deferred credits: | ||||
Other liabilities and deferred credits | 1,392 | 1,047 | ||
Total | 1,392 | 1,047 | ||
Shareholders’ equity | 377,150 | 367,233 | ||
Total Liabilities and Shareholders’ Equity | 625,402 | 452,091 | ||
Subsidiary Issuer / Guarantor | ||||
Current assets: | ||||
Cash and cash equivalents | 271,376 | 179,676 | 275,773 | 333,663 |
Restricted cash | 5,000 | 6,566 | ||
Short-term investments | 265,437 | 260,121 | ||
Accounts receivable, net | 80,487 | 80,289 | ||
Spare parts and supplies, net | 20,359 | 18,011 | ||
Deferred tax assets, net | 22,102 | 21,943 | ||
Prepaid expenses and other | 52,852 | 53,281 | ||
Total | 717,613 | 619,887 | ||
Property and equipment at cost | 1,974,943 | 2,006,274 | ||
Less accumulated depreciation and amortization | (410,746) | (365,279) | ||
Property and equipment, net | 1,564,197 | 1,640,995 | ||
Long-term prepayments and other | 90,097 | 95,688 | ||
Goodwill and other intangible assets, net | 125,983 | 127,963 | ||
Intercompany receivable | 242,726 | 15,081 | ||
Total Assets | 2,740,616 | 2,499,614 | ||
Current liabilities: | ||||
Accounts payable | 101,024 | 96,196 | ||
Air traffic liability | 479,398 | 421,547 | ||
Other accrued liabilities | 139,214 | 140,088 | ||
Current maturities of long-term debt, less discount, and capital lease obligations | 92,571 | 89,819 | ||
Total | 812,207 | 747,650 | ||
Long-term debt and capital lease obligations | 818,608 | 893,288 | ||
Other liabilities and deferred credits: | ||||
Accumulated pension and other postretirement benefit obligations | 409,047 | 407,864 | ||
Other liabilities and deferred credits | 82,143 | 70,853 | ||
Deferred tax liabilities, net | 142,866 | 62,185 | ||
Total | 634,056 | 540,902 | ||
Shareholders’ equity | 475,745 | 317,774 | ||
Total Liabilities and Shareholders’ Equity | 2,740,616 | 2,499,614 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 7,849 | 4,879 | $ 3,500 | $ 4,924 |
Accounts receivable, net | 289 | 531 | ||
Prepaid expenses and other | 111 | 89 | ||
Total | 8,249 | 5,499 | ||
Property and equipment at cost | 58,184 | 34,726 | ||
Less accumulated depreciation and amortization | (4,448) | (2,228) | ||
Property and equipment, net | 53,736 | 32,498 | ||
Total Assets | 61,985 | 37,997 | ||
Current liabilities: | ||||
Accounts payable | 439 | 696 | ||
Air traffic liability | 2,432 | 2,789 | ||
Other accrued liabilities | 270 | 145 | ||
Total | 3,141 | 3,630 | ||
Other liabilities and deferred credits: | ||||
Other liabilities and deferred credits | 750 | 750 | ||
Total | 750 | 750 | ||
Shareholders’ equity | 58,094 | 33,617 | ||
Total Liabilities and Shareholders’ Equity | 61,985 | 37,997 | ||
Eliminations | ||||
Current assets: | ||||
Accounts receivable, net | (157) | (146) | ||
Total | (157) | (146) | ||
Deferred tax assets, net | (25,490) | (20,556) | ||
Intercompany receivable | (242,726) | (15,081) | ||
Investment in consolidated subsidiaries | (533,839) | (351,391) | ||
Total Assets | (802,212) | (387,174) | ||
Current liabilities: | ||||
Accounts payable | (157) | (146) | ||
Total | (157) | (146) | ||
Intercompany payable | (242,726) | (15,081) | ||
Other liabilities and deferred credits: | ||||
Deferred tax liabilities, net | (25,490) | (20,556) | ||
Total | (25,490) | (20,556) | ||
Shareholders’ equity | (533,839) | (351,391) | ||
Total Liabilities and Shareholders’ Equity | $ (802,212) | $ (387,174) |
Condensed Consolidating Finan51
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by Operating Activities | $ 389,472 | $ 252,163 |
Cash Flows From Investing Activities: | ||
Additions to property and equipment, including pre-delivery deposits | (105,329) | (361,290) |
Proceeds from purchase assignment and leaseback transactions | 86,033 | 0 |
Proceeds from disposition of property and equipment | 3,606 | 978 |
Purchases of investments | (178,177) | (346,010) |
Sales of investments | 170,904 | 92,103 |
Net cash used in investing activities | (22,963) | (614,219) |
Cash Flows From Financing Activities: | ||
Long-term borrowings | 0 | 293,430 |
Repayments of long-term debt and capital lease obligations | (74,719) | (46,392) |
Repurchases of convertible notes | (171,598) | 0 |
Repurchases of common stock | (37,622) | 0 |
Other | (1,483) | 19,889 |
Net cash provided by (used in) financing activities | (285,422) | 266,927 |
Net increase (decrease) in cash and cash equivalents | 81,087 | (95,129) |
Cash and cash equivalents - Beginning of Period | 264,087 | 423,384 |
Cash and cash equivalents - End of Period | 345,174 | 328,255 |
Parent Issuer / Guarantor | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by Operating Activities | (3,461) | (6,859) |
Cash Flows From Investing Activities: | ||
Net payments to affiliates | (25,000) | |
Net payments to subsidiaries | (34,443) | |
Net cash used in investing activities | (25,000) | (34,443) |
Cash Flows From Financing Activities: | ||
Repurchases of convertible notes | (171,598) | |
Net payments from affiliates | 223,411 | |
Repurchases of common stock | (37,622) | |
Other | 687 | 5,487 |
Net cash provided by (used in) financing activities | 14,878 | 5,487 |
Net increase (decrease) in cash and cash equivalents | (13,583) | (35,815) |
Cash and cash equivalents - Beginning of Period | 79,532 | 84,797 |
Cash and cash equivalents - End of Period | 65,949 | 48,982 |
Subsidiary Issuer / Guarantor | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by Operating Activities | 391,577 | 257,694 |
Cash Flows From Investing Activities: | ||
Net payments to affiliates | (223,411) | |
Additions to property and equipment, including pre-delivery deposits | (81,888) | (358,538) |
Proceeds from purchase assignment and leaseback transactions | 86,033 | |
Proceeds from disposition of property and equipment | 3,551 | 978 |
Purchases of investments | (178,177) | (346,010) |
Sales of investments | 170,904 | 92,103 |
Net cash used in investing activities | (222,988) | (611,467) |
Cash Flows From Financing Activities: | ||
Long-term borrowings | 293,430 | |
Repayments of long-term debt and capital lease obligations | (74,719) | (46,392) |
Net payments from parent company | 34,443 | |
Other | (2,170) | 14,402 |
Net cash provided by (used in) financing activities | (76,889) | 295,883 |
Net increase (decrease) in cash and cash equivalents | 91,700 | (57,890) |
Cash and cash equivalents - Beginning of Period | 179,676 | 333,663 |
Cash and cash equivalents - End of Period | 271,376 | 275,773 |
Non-Guarantor Subsidiaries | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by Operating Activities | 1,356 | 1,328 |
Cash Flows From Investing Activities: | ||
Additions to property and equipment, including pre-delivery deposits | (23,441) | (2,752) |
Proceeds from disposition of property and equipment | 55 | 0 |
Net cash used in investing activities | (23,386) | (2,752) |
Cash Flows From Financing Activities: | ||
Net payments from affiliates | 25,000 | |
Net cash provided by (used in) financing activities | 25,000 | |
Net increase (decrease) in cash and cash equivalents | 2,970 | (1,424) |
Cash and cash equivalents - Beginning of Period | 4,879 | 4,924 |
Cash and cash equivalents - End of Period | 7,849 | 3,500 |
Eliminations | ||
Cash Flows From Investing Activities: | ||
Net payments to affiliates | 248,411 | |
Net payments to subsidiaries | 34,443 | |
Net cash used in investing activities | 248,411 | 34,443 |
Cash Flows From Financing Activities: | ||
Net payments from affiliates | (248,411) | |
Net payments from parent company | (34,443) | |
Net cash provided by (used in) financing activities | $ (248,411) | $ (34,443) |