Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 15, 2016 | |
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 | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 53,418,311 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Revenue: | ||||
Passenger | $ 518,572 | $ 499,387 | $ 1,000,599 | $ 968,532 |
Other | 76,018 | 71,908 | 145,171 | 143,043 |
Total | 594,590 | 571,295 | 1,145,770 | 1,111,575 |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 83,798 | 112,519 | 153,698 | 223,846 |
Wages and benefits | 135,883 | 123,977 | 269,526 | 243,991 |
Aircraft rent | 30,066 | 28,817 | 59,454 | 57,188 |
Maintenance, materials and repairs | 54,585 | 57,071 | 115,089 | 112,316 |
Aircraft and passenger servicing | 30,723 | 29,348 | 59,274 | 57,664 |
Commissions and other selling | 31,425 | 30,484 | 64,456 | 60,912 |
Depreciation and amortization | 26,988 | 27,537 | 54,134 | 52,716 |
Other rentals and landing fees | 24,978 | 23,248 | 49,412 | 46,079 |
Purchased services | 24,543 | 19,842 | 47,275 | 41,081 |
Other | 32,731 | 27,036 | 62,714 | 53,202 |
Total | 475,720 | 479,879 | 935,032 | 948,995 |
Operating Income | 118,870 | 91,416 | 210,738 | 162,580 |
Nonoperating Income (Expense): | ||||
Interest expense and amortization of debt discounts and issuance costs | (8,910) | (13,718) | (19,914) | (29,236) |
Interest income | 1,087 | 725 | 1,931 | 1,361 |
Capitalized interest | 463 | 975 | 688 | 2,268 |
Gains on fuel derivatives | 21,087 | 2,026 | 19,022 | (3,661) |
Loss on extinguishment of debt | (6,643) | (287) | (9,993) | (7,242) |
Other, net | 2,686 | (1,876) | 9,272 | (4,810) |
Total | 9,770 | (12,155) | 1,006 | (41,320) |
Income Before Income Taxes | 128,640 | 79,261 | 211,744 | 121,260 |
Income tax expense | 49,070 | 30,427 | 80,708 | 46,543 |
Net Income | $ 79,570 | $ 48,834 | $ 131,036 | $ 74,717 |
Net Income Per Share | ||||
Basic (in dollars per share) | $ 1.48 | $ 0.89 | $ 2.45 | $ 1.37 |
Diluted (in dollars per share) | $ 1.48 | $ 0.79 | $ 2.43 | $ 1.18 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 79,570 | $ 48,834 | $ 131,036 | $ 74,717 |
Other comprehensive income (loss), net: | ||||
Net change related to employee benefit plans, net of tax expense | 1,228 | 1,699 | 2,155 | 3,357 |
Net change in derivative instruments, net of tax benefit | (7,080) | (1,475) | (15,308) | (2,277) |
Net change in available-for-sale investments, net of tax expense | 151 | (124) | 683 | 180 |
Total other comprehensive income (loss) | (5,701) | 100 | (12,470) | 1,260 |
Total Comprehensive Income | $ 73,869 | $ 48,934 | $ 118,566 | $ 75,977 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change related to employee benefit plans, net of tax expense | $ 745 | $ 1,037 | $ 1,315 | $ 2,046 |
Net change in derivative instruments, net of tax benefit | 4,309 | 898 | 9,316 | 1,386 |
Net change in available-for-sale investments, net of tax expense | $ 93 | $ (75) | $ 416 | $ 110 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 355,467 | $ 281,502 |
Restricted cash | 5,000 | 5,000 |
Short-term investments | 266,345 | 278,545 |
Accounts receivable, net | 93,432 | 81,723 |
Spare parts and supplies, net | 18,150 | 19,164 |
Prepaid expenses and other | 53,788 | 75,050 |
Total | 792,182 | 740,984 |
Property and equipment, less accumulated depreciation and amortization of $477,615 and $432,510 as of June 30, 2016 and December 31, 2015, respectively | 1,574,824 | 1,552,742 |
Other Assets: | ||
Long-term prepayments and other | 69,792 | 70,873 |
Intangible assets, less accumulated amortization of $29,684 and $28,400 as of June 30, 2016 and December 31, 2015, respectively | 17,876 | 18,660 |
Goodwill | 106,663 | 106,663 |
Total Assets | 2,561,337 | 2,489,922 |
Current Liabilities: | ||
Accounts payable | 114,396 | 101,310 |
Air traffic liability | 557,851 | 430,766 |
Other accrued liabilities | 121,775 | 160,258 |
Current maturities of long-term debt and capital lease obligations | 58,352 | 74,441 |
Total | 852,374 | 766,775 |
Long-Term Debt and Capital Lease Obligations | 527,625 | 677,915 |
Other Liabilities and Deferred Credits: | ||
Accumulated pension and other postretirement benefit obligations | 373,572 | 372,700 |
Other liabilities and deferred credits | 100,405 | 89,845 |
Deferred tax liability, net | 141,249 | 136,625 |
Total | 615,226 | 599,170 |
Commitments and Contingencies | ||
Shareholders’ Equity: | ||
Special preferred stock, $0.01 par value per share, three shares issued and outstanding as of June 30, 2016 and December 31, 2015 | 0 | 0 |
Common stock, $0.01 par value per share, 53,444,283 and 53,401,439 shares outstanding as of June 30, 2016 and December 31, 2015, respectively | 535 | 534 |
Capital in excess of par value | 125,574 | 124,091 |
Accumulated income | 551,750 | 420,714 |
Accumulated other comprehensive loss, net | (111,747) | (99,277) |
Total | 566,112 | 446,062 |
Total Liabilities and Shareholders’ Equity | $ 2,561,337 | $ 2,489,922 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation and amortization | $ 477,615 | $ 432,510 |
Intangible assets, accumulated amortization | $ 29,684 | $ 28,400 |
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 | 53,516,342 | 53,401,439 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by Operating Activities | $ 285,466 | $ 297,520 |
Cash flows from Investing Activities: | ||
Additions to property and equipment, including pre-delivery payments | (70,291) | (72,902) |
Proceeds from purchase assignment and leaseback transactions | 31,851 | 86,033 |
Proceeds from disposition of equipment | 0 | 3,513 |
Purchases of investments | (138,235) | (115,218) |
Sales of investments | 150,651 | 112,886 |
Net cash provided by (used in) investing activities | (26,024) | 14,312 |
Cash flows from Financing Activities: | ||
Repayments of long-term debt and capital lease obligations | (183,607) | (43,460) |
Repurchases and redemptions of convertible notes | (1,426) | (168,407) |
Repurchases of common stock | (10,075) | (17,621) |
Excess tax benefit from equity awards | 17,259 | 0 |
Other | (7,628) | (1,649) |
Net cash used in financing activities | (185,477) | (231,137) |
Net increase in cash and cash equivalents | 73,965 | 80,695 |
Cash and cash equivalents - Beginning of Period | 281,502 | 264,087 |
Cash and cash equivalents - End of Period | $ 355,467 | $ 344,782 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
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, 2015 . |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (ASU 2016-02), requiring a lessee to recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018. ASU 2016-02 requires entities to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Full retrospective application is prohibited. The Company is currently evaluating the effect that the provisions of ASU 2016-02 will have on its consolidated financial statements and related disclosures. 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. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015. As a result, the Company adopted ASU 2015-03 as of January 1, 2016 and retrospectively applied it to all periods presented in the consolidated balance sheets. The adoption of ASU 2015-03 resulted in a $19.8 million reclassification of the Company's unamortized debt issuance costs from long-term prepayments and other to long-term debt on the consolidated balance sheet as of December 31, 2015. In May 2014, the 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 instead require the use of the deferred revenue method. This change could have a significant impact on the Company's financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six months ended June 30, Affected line items in the statement where net income is presented 2016 2015 2016 2015 (in thousands) Derivatives designated as hedging instruments under ASC 815 Foreign currency derivative gains, net $ (868 ) $ (4,460 ) $ (3,521 ) $ (8,412 ) Passenger revenue Interest rate derivative losses, net 1,235 179 944 366 Interest expense Total before tax 367 (4,281 ) (2,577 ) (8,046 ) Tax expense (benefit) (141 ) 1,618 973 3,040 Total, net of tax $ 226 $ (2,663 ) $ (1,604 ) $ (5,006 ) Amortization of defined benefit plan items Actuarial loss $ 1,915 $ 2,680 $ 3,830 $ 5,360 Wages and benefits Prior service cost 57 57 114 114 Wages and benefits Total before tax 1,972 2,737 3,944 5,474 Tax benefit (747 ) (1,038 ) (1,493 ) (2,076 ) Total, net of tax $ 1,225 $ 1,699 $ 2,451 $ 3,398 Short-term investments Realized gain on sales of investments, net $ (58 ) $ (25 ) $ (61 ) $ (35 ) Other nonoperating income Total before tax (58 ) (25 ) (61 ) (35 ) Tax expense 19 6 20 7 Total, net of tax (39 ) $ (19 ) $ (41 ) $ (28 ) Total reclassifications for the period $ 1,412 $ (983 ) $ 806 $ (1,636 ) A rollforward of the amounts included in accumulated other comprehensive loss, net of taxes, for the three and six months ended June 30, 2016 and 2015 is as follows: Three months ended June 30, 2016 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Short-Term Investments Total (in thousands) Beginning balance $ (768 ) $ (2,500 ) $ (102,938 ) $ 160 $ (106,046 ) Other comprehensive income (loss) before reclassifications, net of tax — (7,306 ) 3 190 (7,113 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 768 (542 ) 1,225 (39 ) 1,412 Net current-period other comprehensive income (loss) 768 (7,848 ) 1,228 151 (5,701 ) Ending balance $ — $ (10,348 ) $ (101,710 ) $ 311 $ (111,747 ) Three months ended June 30, 2015 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Plan Items Short-Term Investments Total (in thousands) Beginning balance $ (108 ) $ 12,268 $ (133,862 ) $ 50 $ (121,652 ) Other comprehensive income (loss) before reclassifications, net of tax 260 928 — (105 ) 1,083 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 110 (2,773 ) 1,699 (19 ) (983 ) Net current-period other comprehensive income (loss) 370 (1,845 ) 1,699 (124 ) 100 Ending balance $ 262 $ 10,423 $ (132,163 ) $ (74 ) $ (121,552 ) Six months ended June 30, 2016 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Pension Items Short-Term Investments Total (in thousands) Beginning balance $ 81 $ 4,879 $ (103,865 ) $ (372 ) $ (99,277 ) Other comprehensive income (loss) before reclassifications, net of tax (668 ) (13,036 ) (296 ) 724 (13,276 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 587 (2,191 ) 2,451 (41 ) 806 Net current-period other comprehensive income (loss) (81 ) (15,227 ) 2,155 683 (12,470 ) Ending balance $ — $ (10,348 ) $ (101,710 ) $ 311 $ (111,747 ) Six months ended June 30, 2015 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Pension Items 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 (216 ) 2,945 (41 ) 208 2,896 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 224 (5,230 ) 3,398 (28 ) (1,636 ) Net current-period other comprehensive income (loss) 8 (2,285 ) 3,357 180 1,260 Ending balance $ 262 $ 10,423 $ (132,163 ) $ (74 ) $ (121,552 ) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
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 six months ended June 30, 2016 and 2015 , anti-dilutive shares excluded from the calculation of diluted earnings per share were nil. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands, except for per share data) Numerator: Net Income $ 79,570 $ 48,834 $ 131,036 $ 74,717 Denominator: Weighted average common stock shares outstanding - Basic 53,634 54,619 53,574 54,617 Assumed exercise of stock options and awards 219 430 247 488 Assumed conversion of convertible note premium — 546 12 2,252 Assumed conversion of warrants — 6,260 — 6,033 Weighted average common stock shares outstanding - Diluted 53,853 61,855 53,833 63,390 Net Income Per Share Basic $ 1.48 $ 0.89 $ 2.45 $ 1.37 Diluted $ 1.48 $ 0.79 $ 2.43 $ 1.18 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 $7.6 million and $10.1 million to repurchase approximately 209 thousand shares and 281 thousand shares of the Company's common stock in open market transactions during the three and six months ended June 30, 2016 , respectively. As of June 30, 2016 , the Company has $49.8 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 | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2016 (in thousands) Corporate debt $ 178,245 $ 413 $ (41 ) $ 178,617 U.S. government and agency debt 56,422 166 — 56,588 Municipal bonds 14,966 7 (1 ) 14,972 Other fixed income securities 16,168 — — 16,168 Total short-term investments $ 265,801 $ 586 $ (42 ) $ 266,345 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015 (in thousands) Corporate debt $ 167,066 $ 13 $ (481 ) $ 166,598 U.S. government and agency debt 62,376 9 (123 ) 62,262 Municipal bonds 22,865 3 (12 ) 22,856 Other fixed income securities 26,835 — (6 ) 26,829 Total short-term investments $ 279,142 $ 25 $ (622 ) $ 278,545 Contractual maturities of short-term investments as of June 30, 2016 are shown below. Under 1 Year 1 to 5 Years Total (in thousands) Corporate debt $ 64,160 $ 114,457 $ 178,617 U.S. government and agency debt 36,796 19,792 56,588 Municipal bonds 8,217 6,755 14,972 Other fixed income securities 14,667 1,501 16,168 Total short-term investments $ 123,840 $ 142,505 $ 266,345 The Company classifies investments as current assets as these securities are available for use in its current operations. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurement (ASC 820) clarifies that fair value as 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 June 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 20,582 $ 4,893 $ 15,689 $ — Cash equivalents measured at net asset value 116,705 — — — Restricted cash 5,000 5,000 — — Short-term investments 266,345 — 266,345 — Fuel derivative contracts: Crude oil call options 1,295 — 1,295 — Heating oil swaps 11,058 — 11,058 — Foreign currency derivatives 484 — 484 — Total assets measured at fair value $ 421,469 $ 9,893 $ 294,871 $ — Fuel derivative contracts: Heating oil swaps $ 3,589 $ — $ 3,589 $ — Foreign currency derivatives 18,148 — 18,148 — Total liabilities measured at fair value $ 21,737 $ — $ 21,737 $ — Fair Value Measurements as of December 31, 2015 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 5,665 $ 1,648 $ 4,017 $ — Cash equivalents measured at net asset value 61,577 — — — Restricted cash 5,000 5,000 — — Short-term investments 278,545 — 278,545 — Fuel derivative contracts: Heating oil put options 1,060 — 1,060 — Foreign currency derivatives 6,550 — 6,550 — Total assets measured at fair value $ 358,397 $ 6,648 $ 290,172 $ — Fuel derivative contracts: Heating oil swaps $ 40,530 $ — $ 40,530 $ — Foreign currency derivatives 1,049 — 1,049 — Interest rate derivative 312 — 312 — Total liabilities measured at fair value $ 41,891 $ — $ 41,891 $ — 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. Cash equivalents measured at net asset value. Cash equivalents measured at net asset value consist of money market securities that are measured at fair value using the net asset value per share practical expedient. In accordance with ASC 820, these instruments are not included in the fair value hierarchy. Restricted cash . The Company’s restricted cash consists 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 swaps and crude oil call options 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 consist of interest rate swaps and are 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 June 30, 2016 December 31, 2015 Carrying Fair Value Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Amount Total Level 1 Level 2 Level 3 (in thousands) $ 506,010 $ 499,130 $ — $ — $ 499,130 $ 677,203 $ 665,507 $ — $ 283 $ 665,224 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 | 6 Months Ended |
Jun. 30, 2016 | |
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 six months ended June 30, 2016 , the Company primarily used heating oil swaps and crude oil call options 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 June 30, Six months ended June 30, Fuel derivative contracts 2016 2015 2016 2015 (in thousands) Losses realized at settlement $ (8,799 ) $ (16,553 ) $ (27,824 ) $ (31,144 ) Reversal of prior period unrealized amounts 22,882 16,327 40,692 29,313 Unrealized gains (losses) that will settle in future periods 7,004 2,252 6,154 (1,830 ) Gains on fuel derivatives recorded as Nonoperating Income (expense) $ 21,087 $ 2,026 $ 19,022 $ (3,661 ) 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 loss of approximately $10.6 million into earnings over the next 12 months from AOCI based on the values at June 30, 2016 . 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 June 30, 2016 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives designated as hedges Foreign currency derivatives Other accrued liabilities 13,145,400 Japanese Yen June 2017 437 (11,980 ) (11,543 ) Other liabilities and deferred credits 4,609,250 Japanese Yen June 2018 25 (5,301 ) (5,276 ) Derivatives not designated as hedges Foreign currency derivatives Other accrued liabilities 1,909,900 Japanese Yen March 2017 22 (867 ) (845 ) Fuel derivative contracts Prepaid expenses and other 66,168 gallons June 2017 12,353 (3,589 ) 8,764 Derivative position as of December 31, 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 $51,000 U.S. dollars April 2023 $ — $ (70 ) $ (70 ) Other liabilities and deferred credits (1) — (242 ) (242 ) Foreign currency derivatives Prepaid expenses and other 7,594,750 Japanese Yen December 2016 6,461 (525 ) 5,936 Other liabilities and deferred credits 5,437,400 Japanese Yen December 2017 78 (493 ) (415 ) Derivatives not designated as hedges Foreign currency derivatives Prepaid expenses and other 2,762,000 Japanese Yen August 2016 11 — 11 Other liabilities and deferred credits 2,845 Australian Dollars March 2017 — (31 ) (31 ) Fuel derivative contracts Other accrued liabilities 84,067 gallons December 2016 1,060 (40,530 ) (39,470 ) (1) Represents the noncurrent portion of the $51.0 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 June 30, Three months ended June 30, Three months ended June 30, 2016 2015 2016 2015 2016 2015 (in thousands) Foreign currency derivatives $ 10,938 $ (1,492 ) $ (868 ) $ (4,460 ) $ — $ — Interest rate derivatives — (619 ) 1,235 179 — — (Gain) loss recognized in AOCI on derivatives (effective portion) (Gain) loss reclassified from AOCI (Gain) loss recognized in Six months ended June 30, Six months ended June 30, Six months ended June 30, 2016 2015 2016 2015 2016 2015 (in thousands) Foreign currency derivatives $ 20,155 $ (4,737 ) $ (3,521 ) $ (8,412 ) $ — $ — Interest rate derivatives 923 (62 ) 1,383 366 — — 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) regularly 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. 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 $1.1 million in collateral posted with its counterparties as of June 30, 2016 and no collateral posted with counterparties as of December 31, 2015 . 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 | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of June 30, 2016 , the expected maturities of long-term debt for the remainder of 2016 and the next four years, and thereafter, were as follows (in thousands): Remaining months in 2016 $ 24,136 2017 48,801 2018 48,244 2019 72,927 2020 21,413 Thereafter 290,488 $ 506,009 Debt Extinguishment The Company extinguished $88.7 million and $140.5 million of its existing debt under a secured financial agreement for the three and six months ended June 30, 2016, which was originally scheduled to mature in 2023. This debt extinguishment resulted in a loss of $6.6 million and $10.0 million for the three and six months ended June 30, 2016, which was reflected in nonoperating income (expense) in the unaudited Consolidated Statement of Operations. |
Leases Leases
Leases Leases | 6 Months Ended |
Jun. 30, 2016 | |
Leases [Abstract] | |
Leases | Leases The Company leases aircraft, engines and other assets under long-term lease arrangements. Other leased assets include real property, airport and terminal facilities, maintenance facilities, and general offices. Certain leases include escalation clauses and renewal options. When lease renewals are considered to be reasonably assured, the rental payments that will be due during the renewal periods are included in the determination of rent expense over the life of the lease. During the three months ended June 30, 2016 , the Company took delivery of an Airbus A330-200 aircraft under an operating lease with a lease term of 6 years . As of June 30, 2016 , the scheduled future minimum rental payments under operating leases with non-cancellable basic terms of more than one year were as follows: Aircraft Other (in thousands) Remaining in 2016 $ 60,688 $ 2,654 2017 117,226 4,710 2018 114,477 4,641 2019 114,332 4,348 2020 94,177 4,173 Thereafter 280,320 22,358 $ 781,220 $ 42,884 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six months ended June 30, Components of Net Period Benefit Cost 2016 2015 2016 2015 (in thousands) Service cost $ 3,713 $ 4,225 $ 7,426 $ 8,450 Interest cost 7,582 7,389 15,164 14,778 Expected return on plan assets (4,472 ) (4,716 ) (8,944 ) (9,432 ) Recognized net actuarial loss 1,972 2,737 3,944 5,474 Net periodic benefit cost $ 8,795 $ 9,635 $ 17,590 $ 19,270 The Company contributed $11.0 million and $11.3 million to its defined benefit and other postretirement plans during the three and six months ended June 30, 2016 , respectively, including $5.7 million above the minimum funding requirements. The Company contributed $0.8 million and $13.6 million to its defined benefit and other postretirement plans during the three and six months ended June 30, 2015 , respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Commitments As of June 30, 2016 , 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 A321neo aircraft 16 9 Between 2017 and 2020 A330-800neo aircraft 6 6 Between 2019 and 2021 Pratt & Whitney spare engines: A321neo spare engines 2 2 Between 2017 and 2018 Rolls-Royce spare engines: A330-800neo spare engines 2 2 Between 2019 and 2026 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 IT, accounting services and a capacity purchase agreement through 2024. Committed capital and operating expenditures include escalation amounts based on estimates. The gross committed expenditures and committed financings for those deliveries as of June 30, 2016 are detailed below: Capital Operating Total Committed (in thousands) Remaining in 2016 $ 60,610 $ 39,466 $ 100,076 2017 234,984 77,009 311,993 2018 400,377 64,529 464,906 2019 485,458 57,025 542,483 2020 230,973 57,122 288,095 Thereafter 208,937 287,500 496,437 $ 1,621,339 $ 582,651 $ 2,203,990 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 June 30, 2016 and December 31, 2015 . In the event of a material adverse change in the Company's 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 | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Non-cash investing and financing activities for the six months ended June 30, 2016 and 2015 were as follows: Six months ended June 30, 2016 2015 (in thousands) Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a capital lease $ 6,092 $ 2,791 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
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 13 as Subsidiary Issuer / Guarantor) of pass-through certificates, the Company (which is also referred to in this Note 13 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 June 30, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 593,161 $ 1,515 $ (86 ) $ 594,590 Operating Expenses: Aircraft fuel, including taxes and delivery — 83,798 — — 83,798 Wages and benefits — 135,883 — — 135,883 Aircraft rent — 30,066 — — 30,066 Maintenance materials and repairs — 53,941 644 — 54,585 Aircraft and passenger servicing — 30,723 — — 30,723 Commissions and other selling — 31,437 21 (33 ) 31,425 Depreciation and amortization — 26,241 747 — 26,988 Other rentals and landing fees — 24,978 — — 24,978 Purchased services 52 24,319 187 (15 ) 24,543 Other 1,461 30,978 330 (38 ) 32,731 Total 1,513 472,364 1,929 (86 ) 475,720 Operating Income (Loss) (1,513 ) 120,797 (414 ) — 118,870 Nonoperating Income (Expense): Undistributed net income of subsidiaries 80,326 — — (80,326 ) — Interest expense and amortization of debt discounts and issuance costs — (8,910 ) — — (8,910 ) Interest income 65 1,022 — — 1,087 Capitalized interest — 463 — — 463 Gains on fuel derivatives — 21,087 — — 21,087 Loss on extinguishment of debt — (6,643 ) — — (6,643 ) Other, net — 2,686 — — 2,686 Total 80,391 9,705 — (80,326 ) 9,770 Income (Loss) Before Income Taxes 78,878 130,502 (414 ) (80,326 ) 128,640 Income tax expense (benefit) (692 ) 49,762 — — 49,070 Net Income (Loss) $ 79,570 $ 80,740 $ (414 ) $ (80,326 ) $ 79,570 Comprehensive Income (Loss) $ 73,869 $ 75,039 $ (414 ) $ (74,625 ) $ 73,869 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three months ended June 30, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 570,254 $ 1,168 $ (127 ) $ 571,295 Operating Expenses: Aircraft fuel, including taxes and delivery — 112,519 — — 112,519 Wages and benefits — 123,977 — — 123,977 Aircraft rent — 28,817 — — 28,817 Maintenance materials and repairs — 56,555 516 — 57,071 Aircraft and passenger servicing — 29,348 — — 29,348 Commissions and other selling — 30,505 19 (40 ) 30,484 Depreciation and amortization — 26,790 747 — 27,537 Other rentals and landing fees — 23,248 — — 23,248 Purchased services 99 19,736 22 (15 ) 19,842 Other 1,153 25,686 269 (72 ) 27,036 Total 1,252 477,181 1,573 (127 ) 479,879 Operating Income (Loss) (1,252 ) 93,073 (405 ) — 91,416 Nonoperating Income (Expense): Undistributed net income of subsidiaries 49,759 — — (49,759 ) — Interest expense and amortization of debt discounts and issuance costs (156 ) (13,562 ) — — (13,718 ) Interest income 53 672 — — 725 Capitalized interest — 975 — — 975 Gains on fuel derivatives — 2,026 — — 2,026 Loss on extinguishment of debt (287 ) — — — (287 ) Other, net — (1,876 ) — — (1,876 ) Total 49,369 (11,765 ) — (49,759 ) (12,155 ) Income (Loss) Before Income Taxes 48,117 81,308 (405 ) (49,759 ) 79,261 Income tax expense (benefit) (717 ) 31,144 — — 30,427 Net Income (Loss) $ 48,834 $ 50,164 $ (405 ) $ (49,759 ) $ 48,834 Comprehensive Income (Loss) $ 48,934 $ 50,264 $ (405 ) $ (49,859 ) $ 48,934 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Six months ended June 30, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 1,143,295 $ 2,678 $ (203 ) $ 1,145,770 Operating Expenses: Aircraft fuel, including taxes and delivery — 153,698 — — 153,698 Wages and benefits — 269,526 — — 269,526 Aircraft rent — 59,454 — — 59,454 Maintenance materials and repairs — 113,041 2,048 — 115,089 Aircraft and passenger servicing — 59,274 — — 59,274 Commissions and other selling 1 64,489 37 (71 ) 64,456 Depreciation and amortization — 52,640 1,494 — 54,134 Other rentals and landing fees — 49,412 — — 49,412 Purchased services 87 46,959 259 (30 ) 47,275 Other 2,787 59,574 455 (102 ) 62,714 Total 2,875 928,067 4,293 (203 ) 935,032 Operating Income (Loss) (2,875 ) 215,228 (1,615 ) — 210,738 Nonoperating Income (Expense): Undistributed net income of subsidiaries 132,142 — — (132,142 ) — Interest expense and amortization of debt discounts and issuance costs 117 (20,031 ) — — (19,914 ) Interest income 124 1,807 — — 1,931 Capitalized interest — 688 — — 688 Gains on fuel derivatives — 19,022 — — 19,022 Loss on extinguishment of debt — (9,993 ) — — (9,993 ) Other, net — 9,272 — — 9,272 Total 132,383 765 — (132,142 ) 1,006 Income (Loss) Before Income Taxes 129,508 215,993 (1,615 ) (132,142 ) 211,744 Income tax expense (benefit) (1,528 ) 82,236 — — 80,708 Net Income (Loss) $ 131,036 $ 133,757 $ (1,615 ) $ (132,142 ) $ 131,036 Comprehensive Income (Loss) $ 118,566 $ 121,287 $ (1,615 ) $ (119,672 ) $ 118,566 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Six months ended June 30, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 1,109,461 $ 2,341 $ (227 ) $ 1,111,575 Operating Expenses: Aircraft fuel, including taxes and delivery — 223,846 — — 223,846 Wages and benefits — 243,991 — — 243,991 Aircraft rent — 57,188 — — 57,188 Maintenance materials and repairs — 111,468 848 — 112,316 Aircraft and passenger servicing — 57,664 — — 57,664 Commissions and other selling 4 60,946 31 (69 ) 60,912 Depreciation and amortization — 51,222 1,494 — 52,716 Other rentals and landing fees — 46,079 — — 46,079 Purchased services 99 40,975 22 (15 ) 41,081 Other 3,138 49,768 439 (143 ) 53,202 Total 3,241 943,147 2,834 (227 ) 948,995 Operating Income (Loss) (3,241 ) 166,314 (493 ) — 162,580 Nonoperating Income (Expense): Undistributed net income of subsidiaries 82,322 — — (82,322 ) — Interest expense and amortization of debt discounts and issuance costs (1,592 ) (27,644 ) — — (29,236 ) Interest income 109 1,252 — — 1,361 Capitalized interest — 2,268 — — 2,268 Losses on fuel derivatives — (3,661 ) — — (3,661 ) Loss on extinguishment of debt (7,242 ) — — — (7,242 ) Other, net — (4,810 ) — — (4,810 ) Total 73,597 (32,595 ) — (82,322 ) (41,320 ) Income (Loss) Before Income Taxes 70,356 133,719 (493 ) (82,322 ) 121,260 Income tax expense (benefit) (4,361 ) 50,904 — — 46,543 Net Income (Loss) $ 74,717 $ 82,815 $ (493 ) $ (82,322 ) $ 74,717 Comprehensive Income (Loss) $ 75,977 $ 84,075 $ (493 ) $ (83,582 ) $ 75,977 Condensed Consolidating Balance Sheets June 30, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 70,966 $ 277,558 $ 6,943 $ — $ 355,467 Restricted cash — 5,000 — — 5,000 Short-term investments — 266,345 — 266,345 Accounts receivable, net 61 92,840 759 (228 ) 93,432 Spare parts and supplies, net — 18,150 — — 18,150 Prepaid expenses and other 141 53,374 273 — 53,788 Total 71,168 713,267 7,975 (228 ) 792,182 Property and equipment at cost — 1,982,280 70,159 — 2,052,439 Less accumulated depreciation and amortization — (470,927 ) (6,688 ) — (477,615 ) Property and equipment, net — 1,511,353 63,471 — 1,574,824 Long-term prepayments and other — 69,792 — — 69,792 Deferred tax assets, net 27,587 — — (27,587 ) — Goodwill and other intangible assets, net — 124,039 500 — 124,539 Intercompany receivable — 277,268 — (277,268 ) — Investment in consolidated subsidiaries 736,215 — — (736,215 ) — TOTAL ASSETS $ 834,970 $ 2,695,719 $ 71,946 $ (1,041,298 ) $ 2,561,337 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 411 $ 113,733 $ 480 $ (228 ) $ 114,396 Air traffic liability — 554,638 3,213 — 557,851 Other accrued liabilities 2,048 119,425 302 — 121,775 Current maturities of long-term debt, less discount, and capital lease obligations — 58,352 — — 58,352 Total 2,459 846,148 3,995 (228 ) 852,374 Long-term debt and capital lease obligations — 527,625 — — 527,625 Intercompany payable 266,235 — 11,033 (277,268 ) — Other liabilities and deferred credits: 0 Accumulated pension and other postretirement benefit obligations — 373,572 — — 373,572 Other liabilities and deferred credits 164 99,417 824 100,405 Deferred tax liabilities, net — 168,836 — (27,587 ) 141,249 Total 164 641,825 824 (27,587 ) 615,226 Shareholders’ equity 566,112 680,121 56,094 (736,215 ) 566,112 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 834,970 $ 2,695,719 $ 71,946 $ (1,041,298 ) $ 2,561,337 Condensed Consolidating Balance Sheets December 31, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 69,420 $ 203,406 $ 8,676 $ — $ 281,502 Restricted cash — 5,000 — — 5,000 Short-term investments — 278,545 — — 278,545 Accounts receivable, net 61 81,248 625 (211 ) 81,723 Spare parts and supplies, net — 19,164 — — 19,164 Prepaid expenses and other 7 74,948 95 — 75,050 Total 69,488 662,311 9,396 (211 ) 740,984 Property and equipment at cost — 1,927,126 58,126 — 1,985,252 Less accumulated depreciation and amortization — (427,315 ) (5,195 ) — (432,510 ) Property and equipment, net — 1,499,811 52,931 — 1,552,742 Long-term prepayments and other — 70,373 500 — 70,873 Deferred tax assets, net 26,059 — — (26,059 ) — Goodwill and other intangible assets, net — 125,323 — — 125,323 Intercompany receivable — 242,248 — (242,248 ) — Investment in consolidated subsidiaries 596,570 — — (596,570 ) — TOTAL ASSETS $ 692,117 $ 2,600,066 $ 62,827 $ (865,088 ) $ 2,489,922 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 755 $ 100,007 $ 759 $ (211 ) $ 101,310 Air traffic liability — 427,302 3,464 — 430,766 Other accrued liabilities 530 159,583 145 — 160,258 Current maturities of long-term debt, less discount, and capital lease obligations 288 74,153 — — 74,441 Total 1,573 761,045 4,368 (211 ) 766,775 Long-term debt and capital lease obligations — 677,915 — — 677,915 Intercompany payable 242,248 — — (242,248 ) — Other liabilities and deferred credits: 0 Accumulated pension and other postretirement benefit obligations — 372,700 — — 372,700 Other liabilities and deferred credits 2,234 86,861 750 — 89,845 Deferred tax liabilities, net — 162,684 — (26,059 ) 136,625 Total 2,234 622,245 750 (26,059 ) 599,170 Shareholders’ equity 446,062 538,861 57,709 (596,570 ) 446,062 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 692,117 $ 2,600,066 $ 62,827 $ (865,088 ) $ 2,489,922 Condensed Consolidating Statements of Cash Flows Six months ended June 30, 2016 Parent Issuer / Subsidiary Non- Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities $ (2,995 ) $ 289,193 $ (732 ) $ 285,466 Cash Flows From Investing Activities: Net payments to affiliates — (26,686 ) — 26,686 — Additions to property and equipment, including pre-delivery deposits — (58,257 ) (12,034 ) (70,291 ) Proceeds from purchase assignment and leaseback transaction 31,851 31,851 Proceeds from disposition of property and equipment — — — — Purchases of investments — (138,235 ) (138,235 ) Sales of investments — 150,651 150,651 Net cash used in investing activities — (40,676 ) (12,034 ) 26,686 (26,024 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (183,607 ) (183,607 ) Repurchases and redemptions of convertible notes (1,426 ) — — — (1,426 ) Net payments from affiliates 15,653 — 11,033 (26,686 ) — Repurchases of common stock (10,075 ) — — — (10,075 ) Excess tax benefit from equity awards — 17,259 — — 17,259 Other 389 (8,017 ) — — (7,628 ) Net cash provided by (used in) financing activities 4,541 (174,365 ) 11,033 (26,686 ) (185,477 ) Net increase (decrease) in cash and cash equivalents 1,546 74,152 (1,733 ) — 73,965 Cash and cash equivalents - Beginning of Period 69,420 203,406 8,676 — 281,502 Cash and cash equivalents - End of Period $ 70,966 $ 277,558 $ 6,943 $ — $ 355,467 Condensed Consolidating Statements of Cash Flows Six months ended June 30, 2015 Parent Issuer / Subsidiary Non- Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities $ (2,349 ) $ 299,009 $ 860 $ — $ 297,520 Cash Flows From Investing Activities: Net payments to affiliates (25,000 ) (170,209 ) — 195,209 — Additions to property and equipment, including pre-delivery deposits — (65,500 ) (7,402 ) — (72,902 ) Proceeds from purchase assignment and leaseback transaction — 86,033 — — 86,033 Net proceeds from disposition of property and equipment — 3,458 55 — 3,513 Purchases of investments — (115,218 ) — — (115,218 ) Sales of investments — 112,886 — — 112,886 Net cash provided by (used in) investing activities (25,000 ) (148,550 ) (7,347 ) 195,209 14,312 Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (43,460 ) — — (43,460 ) Repurchase of convertible notes (168,407 ) — — — (168,407 ) Net payments from affiliates 170,209 — 25,000 (195,209 ) — Repurchases of Common Stock (17,621 ) — — — (17,621 ) Other 459 (2,108 ) — — (1,649 ) Net cash provided by (used in) financing activities (15,360 ) (45,568 ) 25,000 (195,209 ) (231,137 ) Net increase (decrease) in cash and cash equivalents (42,709 ) 104,891 18,513 — 80,695 Cash and cash equivalents - Beginning of Period 79,532 179,676 4,879 — 264,087 Cash and cash equivalents - End of Period $ 36,823 $ 284,567 $ 23,392 $ — $ 344,782 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, 2015 . 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. 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 Polici21
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (ASU 2016-02), requiring a lessee to recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018. ASU 2016-02 requires entities to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Full retrospective application is prohibited. The Company is currently evaluating the effect that the provisions of ASU 2016-02 will have on its consolidated financial statements and related disclosures. 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. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015. As a result, the Company adopted ASU 2015-03 as of January 1, 2016 and retrospectively applied it to all periods presented in the consolidated balance sheets. The adoption of ASU 2015-03 resulted in a $19.8 million reclassification of the Company's unamortized debt issuance costs from long-term prepayments and other to long-term debt on the consolidated balance sheet as of December 31, 2015. In May 2014, the 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 instead require the use of the deferred revenue method. This change could have a significant impact on the Company's financial statements. |
Accumulated Other Comprehensi22
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six months ended June 30, Affected line items in the statement where net income is presented 2016 2015 2016 2015 (in thousands) Derivatives designated as hedging instruments under ASC 815 Foreign currency derivative gains, net $ (868 ) $ (4,460 ) $ (3,521 ) $ (8,412 ) Passenger revenue Interest rate derivative losses, net 1,235 179 944 366 Interest expense Total before tax 367 (4,281 ) (2,577 ) (8,046 ) Tax expense (benefit) (141 ) 1,618 973 3,040 Total, net of tax $ 226 $ (2,663 ) $ (1,604 ) $ (5,006 ) Amortization of defined benefit plan items Actuarial loss $ 1,915 $ 2,680 $ 3,830 $ 5,360 Wages and benefits Prior service cost 57 57 114 114 Wages and benefits Total before tax 1,972 2,737 3,944 5,474 Tax benefit (747 ) (1,038 ) (1,493 ) (2,076 ) Total, net of tax $ 1,225 $ 1,699 $ 2,451 $ 3,398 Short-term investments Realized gain on sales of investments, net $ (58 ) $ (25 ) $ (61 ) $ (35 ) Other nonoperating income Total before tax (58 ) (25 ) (61 ) (35 ) Tax expense 19 6 20 7 Total, net of tax (39 ) $ (19 ) $ (41 ) $ (28 ) Total reclassifications for the period $ 1,412 $ (983 ) $ 806 $ (1,636 ) |
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 six months ended June 30, 2016 and 2015 is as follows: Three months ended June 30, 2016 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Short-Term Investments Total (in thousands) Beginning balance $ (768 ) $ (2,500 ) $ (102,938 ) $ 160 $ (106,046 ) Other comprehensive income (loss) before reclassifications, net of tax — (7,306 ) 3 190 (7,113 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 768 (542 ) 1,225 (39 ) 1,412 Net current-period other comprehensive income (loss) 768 (7,848 ) 1,228 151 (5,701 ) Ending balance $ — $ (10,348 ) $ (101,710 ) $ 311 $ (111,747 ) Three months ended June 30, 2015 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Plan Items Short-Term Investments Total (in thousands) Beginning balance $ (108 ) $ 12,268 $ (133,862 ) $ 50 $ (121,652 ) Other comprehensive income (loss) before reclassifications, net of tax 260 928 — (105 ) 1,083 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 110 (2,773 ) 1,699 (19 ) (983 ) Net current-period other comprehensive income (loss) 370 (1,845 ) 1,699 (124 ) 100 Ending balance $ 262 $ 10,423 $ (132,163 ) $ (74 ) $ (121,552 ) Six months ended June 30, 2016 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Pension Items Short-Term Investments Total (in thousands) Beginning balance $ 81 $ 4,879 $ (103,865 ) $ (372 ) $ (99,277 ) Other comprehensive income (loss) before reclassifications, net of tax (668 ) (13,036 ) (296 ) 724 (13,276 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 587 (2,191 ) 2,451 (41 ) 806 Net current-period other comprehensive income (loss) (81 ) (15,227 ) 2,155 683 (12,470 ) Ending balance $ — $ (10,348 ) $ (101,710 ) $ 311 $ (111,747 ) Six months ended June 30, 2015 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Pension Items 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 (216 ) 2,945 (41 ) 208 2,896 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 224 (5,230 ) 3,398 (28 ) (1,636 ) Net current-period other comprehensive income (loss) 8 (2,285 ) 3,357 180 1,260 Ending balance $ 262 $ 10,423 $ (132,163 ) $ (74 ) $ (121,552 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share basic and diluted | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands, except for per share data) Numerator: Net Income $ 79,570 $ 48,834 $ 131,036 $ 74,717 Denominator: Weighted average common stock shares outstanding - Basic 53,634 54,619 53,574 54,617 Assumed exercise of stock options and awards 219 430 247 488 Assumed conversion of convertible note premium — 546 12 2,252 Assumed conversion of warrants — 6,260 — 6,033 Weighted average common stock shares outstanding - Diluted 53,853 61,855 53,833 63,390 Net Income Per Share Basic $ 1.48 $ 0.89 $ 2.45 $ 1.37 Diluted $ 1.48 $ 0.79 $ 2.43 $ 1.18 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of short-term investments | The following is a summary of short-term investments held as of June 30, 2016 and December 31, 2015 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2016 (in thousands) Corporate debt $ 178,245 $ 413 $ (41 ) $ 178,617 U.S. government and agency debt 56,422 166 — 56,588 Municipal bonds 14,966 7 (1 ) 14,972 Other fixed income securities 16,168 — — 16,168 Total short-term investments $ 265,801 $ 586 $ (42 ) $ 266,345 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015 (in thousands) Corporate debt $ 167,066 $ 13 $ (481 ) $ 166,598 U.S. government and agency debt 62,376 9 (123 ) 62,262 Municipal bonds 22,865 3 (12 ) 22,856 Other fixed income securities 26,835 — (6 ) 26,829 Total short-term investments $ 279,142 $ 25 $ (622 ) $ 278,545 |
Schedule of contractual maturities of short-term investments | Contractual maturities of short-term investments as of June 30, 2016 are shown below. Under 1 Year 1 to 5 Years Total (in thousands) Corporate debt $ 64,160 $ 114,457 $ 178,617 U.S. government and agency debt 36,796 19,792 56,588 Municipal bonds 8,217 6,755 14,972 Other fixed income securities 14,667 1,501 16,168 Total short-term investments $ 123,840 $ 142,505 $ 266,345 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 20,582 $ 4,893 $ 15,689 $ — Cash equivalents measured at net asset value 116,705 — — — Restricted cash 5,000 5,000 — — Short-term investments 266,345 — 266,345 — Fuel derivative contracts: Crude oil call options 1,295 — 1,295 — Heating oil swaps 11,058 — 11,058 — Foreign currency derivatives 484 — 484 — Total assets measured at fair value $ 421,469 $ 9,893 $ 294,871 $ — Fuel derivative contracts: Heating oil swaps $ 3,589 $ — $ 3,589 $ — Foreign currency derivatives 18,148 — 18,148 — Total liabilities measured at fair value $ 21,737 $ — $ 21,737 $ — Fair Value Measurements as of December 31, 2015 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 5,665 $ 1,648 $ 4,017 $ — Cash equivalents measured at net asset value 61,577 — — — Restricted cash 5,000 5,000 — — Short-term investments 278,545 — 278,545 — Fuel derivative contracts: Heating oil put options 1,060 — 1,060 — Foreign currency derivatives 6,550 — 6,550 — Total assets measured at fair value $ 358,397 $ 6,648 $ 290,172 $ — Fuel derivative contracts: Heating oil swaps $ 40,530 $ — $ 40,530 $ — Foreign currency derivatives 1,049 — 1,049 — Interest rate derivative 312 — 312 — Total liabilities measured at fair value $ 41,891 $ — $ 41,891 $ — |
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 June 30, 2016 December 31, 2015 Carrying Fair Value Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Amount Total Level 1 Level 2 Level 3 (in thousands) $ 506,010 $ 499,130 $ — $ — $ 499,130 $ 677,203 $ 665,507 $ — $ 283 $ 665,224 |
Financial Derivative Instrume26
Financial Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six months ended June 30, Fuel derivative contracts 2016 2015 2016 2015 (in thousands) Losses realized at settlement $ (8,799 ) $ (16,553 ) $ (27,824 ) $ (31,144 ) Reversal of prior period unrealized amounts 22,882 16,327 40,692 29,313 Unrealized gains (losses) that will settle in future periods 7,004 2,252 6,154 (1,830 ) Gains on fuel derivatives recorded as Nonoperating Income (expense) $ 21,087 $ 2,026 $ 19,022 $ (3,661 ) |
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 June 30, 2016 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives designated as hedges Foreign currency derivatives Other accrued liabilities 13,145,400 Japanese Yen June 2017 437 (11,980 ) (11,543 ) Other liabilities and deferred credits 4,609,250 Japanese Yen June 2018 25 (5,301 ) (5,276 ) Derivatives not designated as hedges Foreign currency derivatives Other accrued liabilities 1,909,900 Japanese Yen March 2017 22 (867 ) (845 ) Fuel derivative contracts Prepaid expenses and other 66,168 gallons June 2017 12,353 (3,589 ) 8,764 Derivative position as of December 31, 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 $51,000 U.S. dollars April 2023 $ — $ (70 ) $ (70 ) Other liabilities and deferred credits (1) — (242 ) (242 ) Foreign currency derivatives Prepaid expenses and other 7,594,750 Japanese Yen December 2016 6,461 (525 ) 5,936 Other liabilities and deferred credits 5,437,400 Japanese Yen December 2017 78 (493 ) (415 ) Derivatives not designated as hedges Foreign currency derivatives Prepaid expenses and other 2,762,000 Japanese Yen August 2016 11 — 11 Other liabilities and deferred credits 2,845 Australian Dollars March 2017 — (31 ) (31 ) Fuel derivative contracts Other accrued liabilities 84,067 gallons December 2016 1,060 (40,530 ) (39,470 ) (1) Represents the noncurrent portion of the $51.0 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 June 30, Three months ended June 30, Three months ended June 30, 2016 2015 2016 2015 2016 2015 (in thousands) Foreign currency derivatives $ 10,938 $ (1,492 ) $ (868 ) $ (4,460 ) $ — $ — Interest rate derivatives — (619 ) 1,235 179 — — (Gain) loss recognized in AOCI on derivatives (effective portion) (Gain) loss reclassified from AOCI (Gain) loss recognized in Six months ended June 30, Six months ended June 30, Six months ended June 30, 2016 2015 2016 2015 2016 2015 (in thousands) Foreign currency derivatives $ 20,155 $ (4,737 ) $ (3,521 ) $ (8,412 ) $ — $ — Interest rate derivatives 923 (62 ) 1,383 366 — — |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of expected maturities of long-term debt | As of June 30, 2016 , the expected maturities of long-term debt for the remainder of 2016 and the next four years, and thereafter, were as follows (in thousands): Remaining months in 2016 $ 24,136 2017 48,801 2018 48,244 2019 72,927 2020 21,413 Thereafter 290,488 $ 506,009 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Leases [Abstract] | |
Schedule of Operating Leases | As of June 30, 2016 , the scheduled future minimum rental payments under operating leases with non-cancellable basic terms of more than one year were as follows: Aircraft Other (in thousands) Remaining in 2016 $ 60,688 $ 2,654 2017 117,226 4,710 2018 114,477 4,641 2019 114,332 4,348 2020 94,177 4,173 Thereafter 280,320 22,358 $ 781,220 $ 42,884 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six months ended June 30, Components of Net Period Benefit Cost 2016 2015 2016 2015 (in thousands) Service cost $ 3,713 $ 4,225 $ 7,426 $ 8,450 Interest cost 7,582 7,389 15,164 14,778 Expected return on plan assets (4,472 ) (4,716 ) (8,944 ) (9,432 ) Recognized net actuarial loss 1,972 2,737 3,944 5,474 Net periodic benefit cost $ 8,795 $ 9,635 $ 17,590 $ 19,270 |
Commitments and Contingent Li30
Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of firm aircraft and engine orders | As of June 30, 2016 , 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 A321neo aircraft 16 9 Between 2017 and 2020 A330-800neo aircraft 6 6 Between 2019 and 2021 Pratt & Whitney spare engines: A321neo spare engines 2 2 Between 2017 and 2018 Rolls-Royce spare engines: A330-800neo spare engines 2 2 Between 2019 and 2026 |
Schedule of committed capital and operating expenditures | The gross committed expenditures and committed financings for those deliveries as of June 30, 2016 are detailed below: Capital Operating Total Committed (in thousands) Remaining in 2016 $ 60,610 $ 39,466 $ 100,076 2017 234,984 77,009 311,993 2018 400,377 64,529 464,906 2019 485,458 57,025 542,483 2020 230,973 57,122 288,095 Thereafter 208,937 287,500 496,437 $ 1,621,339 $ 582,651 $ 2,203,990 |
Supplemental Cash Flow Inform31
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Non-cash investing and financing activities for the six months ended June 30, 2016 and 2015 were as follows: Six months ended June 30, 2016 2015 (in thousands) Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a capital lease $ 6,092 $ 2,791 |
Condensed Consolidating Finan32
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three months ended June 30, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 593,161 $ 1,515 $ (86 ) $ 594,590 Operating Expenses: Aircraft fuel, including taxes and delivery — 83,798 — — 83,798 Wages and benefits — 135,883 — — 135,883 Aircraft rent — 30,066 — — 30,066 Maintenance materials and repairs — 53,941 644 — 54,585 Aircraft and passenger servicing — 30,723 — — 30,723 Commissions and other selling — 31,437 21 (33 ) 31,425 Depreciation and amortization — 26,241 747 — 26,988 Other rentals and landing fees — 24,978 — — 24,978 Purchased services 52 24,319 187 (15 ) 24,543 Other 1,461 30,978 330 (38 ) 32,731 Total 1,513 472,364 1,929 (86 ) 475,720 Operating Income (Loss) (1,513 ) 120,797 (414 ) — 118,870 Nonoperating Income (Expense): Undistributed net income of subsidiaries 80,326 — — (80,326 ) — Interest expense and amortization of debt discounts and issuance costs — (8,910 ) — — (8,910 ) Interest income 65 1,022 — — 1,087 Capitalized interest — 463 — — 463 Gains on fuel derivatives — 21,087 — — 21,087 Loss on extinguishment of debt — (6,643 ) — — (6,643 ) Other, net — 2,686 — — 2,686 Total 80,391 9,705 — (80,326 ) 9,770 Income (Loss) Before Income Taxes 78,878 130,502 (414 ) (80,326 ) 128,640 Income tax expense (benefit) (692 ) 49,762 — — 49,070 Net Income (Loss) $ 79,570 $ 80,740 $ (414 ) $ (80,326 ) $ 79,570 Comprehensive Income (Loss) $ 73,869 $ 75,039 $ (414 ) $ (74,625 ) $ 73,869 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three months ended June 30, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 570,254 $ 1,168 $ (127 ) $ 571,295 Operating Expenses: Aircraft fuel, including taxes and delivery — 112,519 — — 112,519 Wages and benefits — 123,977 — — 123,977 Aircraft rent — 28,817 — — 28,817 Maintenance materials and repairs — 56,555 516 — 57,071 Aircraft and passenger servicing — 29,348 — — 29,348 Commissions and other selling — 30,505 19 (40 ) 30,484 Depreciation and amortization — 26,790 747 — 27,537 Other rentals and landing fees — 23,248 — — 23,248 Purchased services 99 19,736 22 (15 ) 19,842 Other 1,153 25,686 269 (72 ) 27,036 Total 1,252 477,181 1,573 (127 ) 479,879 Operating Income (Loss) (1,252 ) 93,073 (405 ) — 91,416 Nonoperating Income (Expense): Undistributed net income of subsidiaries 49,759 — — (49,759 ) — Interest expense and amortization of debt discounts and issuance costs (156 ) (13,562 ) — — (13,718 ) Interest income 53 672 — — 725 Capitalized interest — 975 — — 975 Gains on fuel derivatives — 2,026 — — 2,026 Loss on extinguishment of debt (287 ) — — — (287 ) Other, net — (1,876 ) — — (1,876 ) Total 49,369 (11,765 ) — (49,759 ) (12,155 ) Income (Loss) Before Income Taxes 48,117 81,308 (405 ) (49,759 ) 79,261 Income tax expense (benefit) (717 ) 31,144 — — 30,427 Net Income (Loss) $ 48,834 $ 50,164 $ (405 ) $ (49,759 ) $ 48,834 Comprehensive Income (Loss) $ 48,934 $ 50,264 $ (405 ) $ (49,859 ) $ 48,934 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Six months ended June 30, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 1,143,295 $ 2,678 $ (203 ) $ 1,145,770 Operating Expenses: Aircraft fuel, including taxes and delivery — 153,698 — — 153,698 Wages and benefits — 269,526 — — 269,526 Aircraft rent — 59,454 — — 59,454 Maintenance materials and repairs — 113,041 2,048 — 115,089 Aircraft and passenger servicing — 59,274 — — 59,274 Commissions and other selling 1 64,489 37 (71 ) 64,456 Depreciation and amortization — 52,640 1,494 — 54,134 Other rentals and landing fees — 49,412 — — 49,412 Purchased services 87 46,959 259 (30 ) 47,275 Other 2,787 59,574 455 (102 ) 62,714 Total 2,875 928,067 4,293 (203 ) 935,032 Operating Income (Loss) (2,875 ) 215,228 (1,615 ) — 210,738 Nonoperating Income (Expense): Undistributed net income of subsidiaries 132,142 — — (132,142 ) — Interest expense and amortization of debt discounts and issuance costs 117 (20,031 ) — — (19,914 ) Interest income 124 1,807 — — 1,931 Capitalized interest — 688 — — 688 Gains on fuel derivatives — 19,022 — — 19,022 Loss on extinguishment of debt — (9,993 ) — — (9,993 ) Other, net — 9,272 — — 9,272 Total 132,383 765 — (132,142 ) 1,006 Income (Loss) Before Income Taxes 129,508 215,993 (1,615 ) (132,142 ) 211,744 Income tax expense (benefit) (1,528 ) 82,236 — — 80,708 Net Income (Loss) $ 131,036 $ 133,757 $ (1,615 ) $ (132,142 ) $ 131,036 Comprehensive Income (Loss) $ 118,566 $ 121,287 $ (1,615 ) $ (119,672 ) $ 118,566 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Six months ended June 30, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 1,109,461 $ 2,341 $ (227 ) $ 1,111,575 Operating Expenses: Aircraft fuel, including taxes and delivery — 223,846 — — 223,846 Wages and benefits — 243,991 — — 243,991 Aircraft rent — 57,188 — — 57,188 Maintenance materials and repairs — 111,468 848 — 112,316 Aircraft and passenger servicing — 57,664 — — 57,664 Commissions and other selling 4 60,946 31 (69 ) 60,912 Depreciation and amortization — 51,222 1,494 — 52,716 Other rentals and landing fees — 46,079 — — 46,079 Purchased services 99 40,975 22 (15 ) 41,081 Other 3,138 49,768 439 (143 ) 53,202 Total 3,241 943,147 2,834 (227 ) 948,995 Operating Income (Loss) (3,241 ) 166,314 (493 ) — 162,580 Nonoperating Income (Expense): Undistributed net income of subsidiaries 82,322 — — (82,322 ) — Interest expense and amortization of debt discounts and issuance costs (1,592 ) (27,644 ) — — (29,236 ) Interest income 109 1,252 — — 1,361 Capitalized interest — 2,268 — — 2,268 Losses on fuel derivatives — (3,661 ) — — (3,661 ) Loss on extinguishment of debt (7,242 ) — — — (7,242 ) Other, net — (4,810 ) — — (4,810 ) Total 73,597 (32,595 ) — (82,322 ) (41,320 ) Income (Loss) Before Income Taxes 70,356 133,719 (493 ) (82,322 ) 121,260 Income tax expense (benefit) (4,361 ) 50,904 — — 46,543 Net Income (Loss) $ 74,717 $ 82,815 $ (493 ) $ (82,322 ) $ 74,717 Comprehensive Income (Loss) $ 75,977 $ 84,075 $ (493 ) $ (83,582 ) $ 75,977 |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets June 30, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 70,966 $ 277,558 $ 6,943 $ — $ 355,467 Restricted cash — 5,000 — — 5,000 Short-term investments — 266,345 — 266,345 Accounts receivable, net 61 92,840 759 (228 ) 93,432 Spare parts and supplies, net — 18,150 — — 18,150 Prepaid expenses and other 141 53,374 273 — 53,788 Total 71,168 713,267 7,975 (228 ) 792,182 Property and equipment at cost — 1,982,280 70,159 — 2,052,439 Less accumulated depreciation and amortization — (470,927 ) (6,688 ) — (477,615 ) Property and equipment, net — 1,511,353 63,471 — 1,574,824 Long-term prepayments and other — 69,792 — — 69,792 Deferred tax assets, net 27,587 — — (27,587 ) — Goodwill and other intangible assets, net — 124,039 500 — 124,539 Intercompany receivable — 277,268 — (277,268 ) — Investment in consolidated subsidiaries 736,215 — — (736,215 ) — TOTAL ASSETS $ 834,970 $ 2,695,719 $ 71,946 $ (1,041,298 ) $ 2,561,337 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 411 $ 113,733 $ 480 $ (228 ) $ 114,396 Air traffic liability — 554,638 3,213 — 557,851 Other accrued liabilities 2,048 119,425 302 — 121,775 Current maturities of long-term debt, less discount, and capital lease obligations — 58,352 — — 58,352 Total 2,459 846,148 3,995 (228 ) 852,374 Long-term debt and capital lease obligations — 527,625 — — 527,625 Intercompany payable 266,235 — 11,033 (277,268 ) — Other liabilities and deferred credits: 0 Accumulated pension and other postretirement benefit obligations — 373,572 — — 373,572 Other liabilities and deferred credits 164 99,417 824 100,405 Deferred tax liabilities, net — 168,836 — (27,587 ) 141,249 Total 164 641,825 824 (27,587 ) 615,226 Shareholders’ equity 566,112 680,121 56,094 (736,215 ) 566,112 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 834,970 $ 2,695,719 $ 71,946 $ (1,041,298 ) $ 2,561,337 Condensed Consolidating Balance Sheets December 31, 2015 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 69,420 $ 203,406 $ 8,676 $ — $ 281,502 Restricted cash — 5,000 — — 5,000 Short-term investments — 278,545 — — 278,545 Accounts receivable, net 61 81,248 625 (211 ) 81,723 Spare parts and supplies, net — 19,164 — — 19,164 Prepaid expenses and other 7 74,948 95 — 75,050 Total 69,488 662,311 9,396 (211 ) 740,984 Property and equipment at cost — 1,927,126 58,126 — 1,985,252 Less accumulated depreciation and amortization — (427,315 ) (5,195 ) — (432,510 ) Property and equipment, net — 1,499,811 52,931 — 1,552,742 Long-term prepayments and other — 70,373 500 — 70,873 Deferred tax assets, net 26,059 — — (26,059 ) — Goodwill and other intangible assets, net — 125,323 — — 125,323 Intercompany receivable — 242,248 — (242,248 ) — Investment in consolidated subsidiaries 596,570 — — (596,570 ) — TOTAL ASSETS $ 692,117 $ 2,600,066 $ 62,827 $ (865,088 ) $ 2,489,922 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 755 $ 100,007 $ 759 $ (211 ) $ 101,310 Air traffic liability — 427,302 3,464 — 430,766 Other accrued liabilities 530 159,583 145 — 160,258 Current maturities of long-term debt, less discount, and capital lease obligations 288 74,153 — — 74,441 Total 1,573 761,045 4,368 (211 ) 766,775 Long-term debt and capital lease obligations — 677,915 — — 677,915 Intercompany payable 242,248 — — (242,248 ) — Other liabilities and deferred credits: 0 Accumulated pension and other postretirement benefit obligations — 372,700 — — 372,700 Other liabilities and deferred credits 2,234 86,861 750 — 89,845 Deferred tax liabilities, net — 162,684 — (26,059 ) 136,625 Total 2,234 622,245 750 (26,059 ) 599,170 Shareholders’ equity 446,062 538,861 57,709 (596,570 ) 446,062 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 692,117 $ 2,600,066 $ 62,827 $ (865,088 ) $ 2,489,922 |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Six months ended June 30, 2016 Parent Issuer / Subsidiary Non- Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities $ (2,995 ) $ 289,193 $ (732 ) $ 285,466 Cash Flows From Investing Activities: Net payments to affiliates — (26,686 ) — 26,686 — Additions to property and equipment, including pre-delivery deposits — (58,257 ) (12,034 ) (70,291 ) Proceeds from purchase assignment and leaseback transaction 31,851 31,851 Proceeds from disposition of property and equipment — — — — Purchases of investments — (138,235 ) (138,235 ) Sales of investments — 150,651 150,651 Net cash used in investing activities — (40,676 ) (12,034 ) 26,686 (26,024 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (183,607 ) (183,607 ) Repurchases and redemptions of convertible notes (1,426 ) — — — (1,426 ) Net payments from affiliates 15,653 — 11,033 (26,686 ) — Repurchases of common stock (10,075 ) — — — (10,075 ) Excess tax benefit from equity awards — 17,259 — — 17,259 Other 389 (8,017 ) — — (7,628 ) Net cash provided by (used in) financing activities 4,541 (174,365 ) 11,033 (26,686 ) (185,477 ) Net increase (decrease) in cash and cash equivalents 1,546 74,152 (1,733 ) — 73,965 Cash and cash equivalents - Beginning of Period 69,420 203,406 8,676 — 281,502 Cash and cash equivalents - End of Period $ 70,966 $ 277,558 $ 6,943 $ — $ 355,467 Condensed Consolidating Statements of Cash Flows Six months ended June 30, 2015 Parent Issuer / Subsidiary Non- Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities $ (2,349 ) $ 299,009 $ 860 $ — $ 297,520 Cash Flows From Investing Activities: Net payments to affiliates (25,000 ) (170,209 ) — 195,209 — Additions to property and equipment, including pre-delivery deposits — (65,500 ) (7,402 ) — (72,902 ) Proceeds from purchase assignment and leaseback transaction — 86,033 — — 86,033 Net proceeds from disposition of property and equipment — 3,458 55 — 3,513 Purchases of investments — (115,218 ) — — (115,218 ) Sales of investments — 112,886 — — 112,886 Net cash provided by (used in) investing activities (25,000 ) (148,550 ) (7,347 ) 195,209 14,312 Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (43,460 ) — — (43,460 ) Repurchase of convertible notes (168,407 ) — — — (168,407 ) Net payments from affiliates 170,209 — 25,000 (195,209 ) — Repurchases of Common Stock (17,621 ) — — — (17,621 ) Other 459 (2,108 ) — — (1,649 ) Net cash provided by (used in) financing activities (15,360 ) (45,568 ) 25,000 (195,209 ) (231,137 ) Net increase (decrease) in cash and cash equivalents (42,709 ) 104,891 18,513 — 80,695 Cash and cash equivalents - Beginning of Period 79,532 179,676 4,879 — 264,087 Cash and cash equivalents - End of Period $ 36,823 $ 284,567 $ 23,392 $ — $ 344,782 |
Significant Accounting Polici33
Significant Accounting Policies Narrative (Details) $ in Millions | Jan. 01, 2016USD ($) |
Accounting Standards Update 2015-03 [Member] | Long-term Debt [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred Finance Costs, Net | $ 19.8 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Amounts reclassified from AOCI | ||||
Foreign currency derivative gains, net | $ (518,572) | $ (499,387) | $ (1,000,599) | $ (968,532) |
Total before tax | (128,640) | (79,261) | (211,744) | (121,260) |
Tax expense | 49,070 | 30,427 | 80,708 | 46,543 |
Total, net of tax | (79,570) | (48,834) | (131,036) | (74,717) |
Total reclassifications for the period | 1,412 | (983) | 806 | (1,636) |
Gains on derivatives designated as hedging instruments | Foreign currency derivative gains, net | ||||
Amounts reclassified from AOCI | ||||
Total reclassifications for the period | (542) | (2,773) | (2,191) | (5,230) |
Gains on derivatives designated as hedging instruments | Interest rate derivative losses, net | ||||
Amounts reclassified from AOCI | ||||
Total reclassifications for the period | 768 | 110 | 587 | 224 |
Gains on derivatives designated as hedging instruments | Amount reclassified from accumulated other comprehensive loss | ||||
Amounts reclassified from AOCI | ||||
Total before tax | 367 | (4,281) | (2,577) | (8,046) |
Tax expense | (141) | 1,618 | 973 | 3,040 |
Total, net of tax | 226 | (2,663) | (1,604) | (5,006) |
Gains on derivatives designated as hedging instruments | Amount reclassified from accumulated other comprehensive loss | Foreign currency derivative gains, net | ||||
Amounts reclassified from AOCI | ||||
Foreign currency derivative gains, net | (868) | (4,460) | (3,521) | (8,412) |
Gains on derivatives designated as hedging instruments | Amount reclassified from accumulated other comprehensive loss | Interest rate derivative losses, net | ||||
Amounts reclassified from AOCI | ||||
Interest rate derivative losses, net | 1,235 | 179 | 944 | 366 |
Actuarial loss | ||||
Amounts reclassified from AOCI | ||||
Amortization of defined benefit plan items | 1,915 | 2,680 | 3,830 | 5,360 |
Prior service cost | ||||
Amounts reclassified from AOCI | ||||
Amortization of defined benefit plan items | 57 | 57 | 114 | 114 |
Defined benefit pension | ||||
Amounts reclassified from AOCI | ||||
Amortization of defined benefit plan items | 1,972 | 2,737 | 3,944 | 5,474 |
Tax benefit | (747) | (1,038) | (1,493) | (2,076) |
Total reclassifications for the period | 1,225 | 1,699 | 2,451 | 3,398 |
Short-Term Investments | ||||
Amounts reclassified from AOCI | ||||
Total reclassifications for the period | (39) | (19) | (41) | (28) |
Short-Term Investments | Amount reclassified from accumulated other comprehensive loss | ||||
Amounts reclassified from AOCI | ||||
Total before tax | (58) | (25) | (61) | (35) |
Tax expense | 19 | 6 | 20 | 7 |
Total, net of tax | (39) | (19) | (41) | (28) |
Realized gain on sales of investments, net | $ (58) | $ (25) | $ (61) | $ (35) |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Loss - Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | $ (106,046) | $ (121,652) | $ (99,277) | $ (122,812) |
Other comprehensive income (loss) before reclassifications, net of tax | (7,113) | 1,083 | (13,276) | 2,896 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1,412 | (983) | 806 | (1,636) |
Total other comprehensive income (loss) | (5,701) | 100 | (12,470) | 1,260 |
Ending balance | (111,747) | (121,552) | (111,747) | (121,552) |
Gains (losses) on derivatives designated as hedging instruments | Interest Rate Derivatives | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | (768) | (108) | 81 | 254 |
Other comprehensive income (loss) before reclassifications, net of tax | 260 | (668) | (216) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 768 | 110 | 587 | 224 |
Total other comprehensive income (loss) | 768 | 370 | (81) | 8 |
Ending balance | 262 | 262 | ||
Gains (losses) on derivatives designated as hedging instruments | Foreign Currency Derivatives | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | (2,500) | 12,268 | 4,879 | 12,708 |
Other comprehensive income (loss) before reclassifications, net of tax | (7,306) | 928 | (13,036) | 2,945 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (542) | (2,773) | (2,191) | (5,230) |
Total other comprehensive income (loss) | (7,848) | (1,845) | (15,227) | (2,285) |
Ending balance | (10,348) | 10,423 | (10,348) | 10,423 |
Defined Benefit Pension Items | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | (102,938) | (133,862) | (103,865) | (135,520) |
Other comprehensive income (loss) before reclassifications, net of tax | 3 | 0 | (296) | (41) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1,225 | 1,699 | 2,451 | 3,398 |
Total other comprehensive income (loss) | 1,228 | 1,699 | 2,155 | 3,357 |
Ending balance | (101,710) | (132,163) | (101,710) | (132,163) |
Short-Term Investments | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | 160 | 50 | (372) | (254) |
Other comprehensive income (loss) before reclassifications, net of tax | 190 | (105) | 724 | 208 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (39) | (19) | (41) | (28) |
Total other comprehensive income (loss) | 151 | (124) | 683 | 180 |
Ending balance | $ 311 | $ (74) | $ 311 | $ (74) |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Net Income | $ 79,570 | $ 48,834 | $ 131,036 | $ 74,717 |
Denominator: | ||||
Weighted average common stock shares outstanding - Basic (in shares) | 53,634 | 54,619 | 53,574 | 54,617 |
Assumed exercise of stock options and awards (in shares) | 219 | 430 | 247 | 488 |
Assumed conversion of convertible note premium (in shares) | 0 | 546 | 12 | 2,252 |
Assumed conversion of warrants (in shares) | 0 | 6,260 | 0 | 6,033 |
Weighted average common stock shares outstanding - Diluted (in shares) | 53,853 | 61,855 | 53,833 | 63,390 |
Net Income Per Share | ||||
Basic (in dollars per share) | $ 1.48 | $ 0.89 | $ 2.45 | $ 1.37 |
Diluted (in dollars per share) | $ 1.48 | $ 0.79 | $ 2.43 | $ 1.18 |
Earnings Per Share - Share Repu
Earnings Per Share - Share Repurchase Program (Details) - USD ($) shares in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Apr. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||
Approved stock repurchase amount | $ 100,000,000 | ||
Period of approved stock repurchase program | 2 years | ||
Remaining authorized repurchase amount | $ 49,800,000 | $ 49,800,000 | |
Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased | $ 7,600,000 | $ 10,100,000 | |
Shares repurchased | 209 | 281 |
Short-Term Investments (Details
Short-Term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | $ 265,801 | $ 279,142 |
Gross Unrealized Gains | 586 | 25 |
Gross Unrealized Losses | (42) | (622) |
Fair Value | 266,345 | 278,545 |
Contractual Maturities | ||
Under 1 Year | 123,840 | |
1 to 5 Years | 142,505 | |
Total | 266,345 | |
Corporate debt | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 178,245 | 167,066 |
Gross Unrealized Gains | 413 | 13 |
Gross Unrealized Losses | (41) | (481) |
Fair Value | 178,617 | 166,598 |
Contractual Maturities | ||
Under 1 Year | 64,160 | |
1 to 5 Years | 114,457 | |
Total | 178,617 | |
U.S. government and agency debt | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 56,422 | 62,376 |
Gross Unrealized Gains | 166 | 9 |
Gross Unrealized Losses | 0 | (123) |
Fair Value | 56,588 | 62,262 |
Contractual Maturities | ||
Under 1 Year | 36,796 | |
1 to 5 Years | 19,792 | |
Total | 56,588 | |
Municipal bonds | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 14,966 | 22,865 |
Gross Unrealized Gains | 7 | 3 |
Gross Unrealized Losses | (1) | (12) |
Fair Value | 14,972 | 22,856 |
Contractual Maturities | ||
Under 1 Year | 8,217 | |
1 to 5 Years | 6,755 | |
Total | 14,972 | |
Other fixed income securities | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 16,168 | 26,835 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (6) |
Fair Value | 16,168 | $ 26,829 |
Contractual Maturities | ||
Under 1 Year | 14,667 | |
1 to 5 Years | 1,501 | |
Total | $ 16,168 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities, Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Measurements | ||
Short-term investments | $ 266,345 | $ 278,545 |
Recurring basis | ||
Fair Value Measurements | ||
Cash equivalents | 20,582 | 5,665 |
Cash equivalents measured at net asset value | 116,705 | 61,577 |
Restricted cash | 5,000 | 5,000 |
Short-term investments | 266,345 | 278,545 |
Total assets measured at fair value | 421,469 | 358,397 |
Total liabilities measured at fair value | 21,737 | 41,891 |
Recurring basis | Fuel derivative contracts | Crude oil call options | ||
Fair Value Measurements | ||
Derivative contracts | 1,295 | |
Recurring basis | Fuel derivative contracts | Heating oil put options | ||
Fair Value Measurements | ||
Derivative contracts | 1,060 | |
Recurring basis | Fuel derivative contracts | Heating oil swaps | ||
Fair Value Measurements | ||
Derivative contracts | 11,058 | |
Derivative contracts | 3,589 | 40,530 |
Recurring basis | Foreign Currency Derivatives | ||
Fair Value Measurements | ||
Derivative contracts | 484 | 6,550 |
Derivative contracts | 18,148 | 1,049 |
Recurring basis | Interest Rate Derivatives | ||
Fair Value Measurements | ||
Derivative contracts | 312 | |
Recurring basis | Level 1 | ||
Fair Value Measurements | ||
Cash equivalents | 4,893 | 1,648 |
Restricted cash | 5,000 | 5,000 |
Total assets measured at fair value | 9,893 | 6,648 |
Recurring basis | Level 2 | ||
Fair Value Measurements | ||
Cash equivalents | 15,689 | 4,017 |
Short-term investments | 266,345 | 278,545 |
Total assets measured at fair value | 294,871 | 290,172 |
Total liabilities measured at fair value | 21,737 | 41,891 |
Recurring basis | Level 2 | Fuel derivative contracts | Crude oil call options | ||
Fair Value Measurements | ||
Derivative contracts | 1,295 | |
Recurring basis | Level 2 | Fuel derivative contracts | Heating oil put options | ||
Fair Value Measurements | ||
Derivative contracts | 1,060 | |
Recurring basis | Level 2 | Fuel derivative contracts | Heating oil swaps | ||
Fair Value Measurements | ||
Derivative contracts | 11,058 | |
Derivative contracts | 3,589 | 40,530 |
Recurring basis | Level 2 | Foreign Currency Derivatives | ||
Fair Value Measurements | ||
Derivative contracts | 484 | 6,550 |
Derivative contracts | $ 18,148 | 1,049 |
Recurring basis | Level 2 | Interest Rate Derivatives | ||
Fair Value Measurements | ||
Derivative contracts | $ 312 |
Fair Value Measurements - Sch40
Fair Value Measurements - Schedule of Certain Debt (Details) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Measurements | ||
Carrying value of debt | $ 506,010 | $ 677,203 |
Fair value of debt | 499,130 | 665,507 |
Level 2 | ||
Fair Value Measurements | ||
Fair value of debt | 283 | |
Level 3 | ||
Fair Value Measurements | ||
Fair value of debt | $ 499,130 | $ 665,224 |
Financial Derivative Instrume41
Financial Derivative Instruments - Risk Management (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative instrument | ||||
Gains on fuel derivatives recorded as Nonoperating Income (expense) | $ 21,087 | $ 2,026 | $ 19,022 | $ (3,661) |
Derivatives Not Designated as Hedging Instruments | Fuel derivative contracts | ||||
Derivative instrument | ||||
Losses realized at settlement | (8,799) | (16,553) | (27,824) | (31,144) |
Reversal of prior period unrealized amounts | 22,882 | 16,327 | 40,692 | 29,313 |
Unrealized gains on contracts that will settle in future periods | 7,004 | 2,252 | 6,154 | (1,830) |
Gains on fuel derivatives recorded as Nonoperating Income (expense) | $ 21,087 | $ 2,026 | 19,022 | $ (3,661) |
Derivatives designated as hedges | Foreign Currency Derivatives | ||||
Derivative instrument | ||||
Accumulated other comprehensive income (loss) expected to be reclassified to earnings in the next 12 months | $ (10,600) | |||
Reclassification estimated time period | 12 months |
Financial Derivative Instrume42
Financial Derivative Instruments - Derivative Position (Details) ¥ in Thousands, gal in Thousands, AUD in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016JPY (¥)gal | Dec. 31, 2015JPY (¥)gal | Jun. 30, 2016AUD | Jun. 30, 2016USD ($) | Dec. 31, 2015AUD | Dec. 31, 2015USD ($) | |
Derivatives designated as hedges | Interest Rate Derivatives | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | $ 51,000 | |||||
Derivatives designated as hedges | Interest Rate Derivatives | Other accrued liabilities | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | 51,000 | |||||
Gross fair value of assets, current | 0 | |||||
Gross fair value of liabilities, current | (70) | |||||
Net derivative position | (70) | |||||
Derivatives designated as hedges | Interest Rate Derivatives | Other liabilities and deferred credits | ||||||
Fair Value of Derivatives | ||||||
Gross fair value of assets, noncurrent | 0 | |||||
Gross fair value of liabilities, noncurrent | (242) | |||||
Net derivative position | (242) | |||||
Derivatives designated as hedges | Foreign Currency Derivatives | Other accrued liabilities | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | ¥ 13,145,400 | AUD 43,577 | ||||
Gross fair value of assets, current | $ 437 | |||||
Gross fair value of liabilities, current | (11,980) | |||||
Net derivative position | (11,543) | |||||
Derivatives designated as hedges | Foreign Currency Derivatives | Other liabilities and deferred credits | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | 4,609,250 | ¥ 5,437,400 | 7,513 | AUD 8,730 | ||
Gross fair value of assets, noncurrent | 25 | 78 | ||||
Gross fair value of liabilities, noncurrent | (5,301) | (493) | ||||
Net derivative position | (5,276) | (415) | ||||
Derivatives designated as hedges | Foreign Currency Derivatives | Prepaid expenses and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | 7,594,750 | 44,917 | ||||
Gross fair value of assets, current | 6,461 | |||||
Gross fair value of liabilities, current | (525) | |||||
Net derivative position | 5,936 | |||||
Derivatives not designated as hedges | Foreign Currency Derivatives | Other accrued liabilities | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | ¥ 1,909,900 | AUD 6,400 | ||||
Gross fair value of assets, current | 22 | |||||
Gross fair value of liabilities, current | (867) | |||||
Net derivative position | (845) | |||||
Derivatives not designated as hedges | Foreign Currency Derivatives | Other liabilities and deferred credits | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | AUD | 2,845 | |||||
Gross fair value of assets, noncurrent | 0 | |||||
Gross fair value of liabilities, noncurrent | (31) | |||||
Net derivative position | (31) | |||||
Derivatives not designated as hedges | Foreign Currency Derivatives | Prepaid expenses and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | ¥ 2,762,000 | AUD 3,303 | ||||
Gross fair value of assets, current | 11 | |||||
Gross fair value of liabilities, current | 0 | |||||
Net derivative position | 11 | |||||
Derivatives not designated as hedges | Fuel derivative contracts | Other accrued liabilities | ||||||
Fair Value of Derivatives | ||||||
Notional Amount (Volume) (in gallons) | gal | 84,067 | |||||
Gross fair value of assets, current | 1,060 | |||||
Gross fair value of liabilities, current | (40,530) | |||||
Net derivative position | $ (39,470) | |||||
Derivatives not designated as hedges | Fuel derivative contracts | Prepaid expenses and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount (Volume) (in gallons) | gal | 66,168 | |||||
Gross fair value of assets, current | 12,353 | |||||
Gross fair value of liabilities, current | (3,589) | |||||
Net derivative position | $ 8,764 |
Financial Derivative Instrume43
Financial Derivative Instruments - Impact of Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Foreign Currency Derivatives | ||||
Gains (losses) for designated hedge contracts | ||||
(Gain) loss recognized in AOCI on derivatives (effective portion) | $ 10,938 | $ (1,492) | $ 20,155 | $ (4,737) |
(Gain) loss reclassified from AOCI into income (effective portion) | (868) | (4,460) | (3,521) | (8,412) |
(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) | 0 | (619) | 923 | (62) |
(Gain) loss reclassified from AOCI into income (effective portion) | 1,235 | 179 | 1,383 | 366 |
(Gain) loss recognized in nonoperating (income) expense (ineffective portion) | $ 0 | $ 0 | $ 0 | $ 0 |
Financial Derivative Instrume44
Financial Derivative Instruments - Risk and Collateral (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Collateral posted with counterparties | $ 1,100,000 | $ 0 |
Debt - Schedule of Maturities (
Debt - Schedule of Maturities (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
Remaining months in 2016 | $ 24,136 |
2,017 | 48,801 |
2,018 | 48,244 |
2,019 | 72,927 |
2,020 | 21,413 |
Thereafter | 290,488 |
Long-term Debt, Gross | $ 506,009 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ (6,643) | $ (287) | $ (9,993) | $ (7,242) |
5% convertible notes, due in 2016 | ||||
Debt Instrument [Line Items] | ||||
Repurchase of convertible notes, principal amount | $ 88,700 | $ 140,500 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Aircraft | |
Operating Leased Assets [Line Items] | |
Remaining in 2016 | $ 60,688 |
2,017 | 117,226 |
2,018 | 114,477 |
2,019 | 114,332 |
2,020 | 94,177 |
Thereafter | 280,320 |
Total future minimum rental payments | 781,220 |
Other | |
Operating Leased Assets [Line Items] | |
Remaining in 2016 | 2,654 |
2,017 | 4,710 |
2,018 | 4,641 |
2,019 | 4,348 |
2,020 | 4,173 |
Thereafter | 22,358 |
Total future minimum rental payments | $ 42,884 |
Airbus A330-200 | |
Operating Leased Assets [Line Items] | |
Term of Lease | 6 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Components of Net Periodic Benefit Cost | ||||
Service cost | $ 3,713 | $ 4,225 | $ 7,426 | $ 8,450 |
Interest cost | 7,582 | 7,389 | 15,164 | 14,778 |
Expected return on plan assets | (4,472) | (4,716) | (8,944) | (9,432) |
Recognized net actuarial loss | 1,972 | 2,737 | 3,944 | 5,474 |
Net periodic benefit cost | 8,795 | 9,635 | 17,590 | 19,270 |
Employer contribution | 11,000 | $ 800 | 11,300 | $ 13,600 |
Contributions above minimum funding requirements | $ 5,700 | $ 5,700 |
Commitments and Contingent Li49
Commitments and Contingent Liabilities - Capital Commitments and Operating Expenditures (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)spare_engine_orderedaircraft_purchase_rightaircraft_firm_order | |
Total Committed Expenditures | |
Remaining months in 2016 | $ 100,076 |
2,017 | 311,993 |
2,018 | 464,906 |
2,019 | 542,483 |
2,020 | 288,095 |
Thereafter | 496,437 |
Total | 2,203,990 |
Capital | |
Total Committed Expenditures | |
Remaining months in 2016 | 60,610 |
2,017 | 234,984 |
2,018 | 400,377 |
2,019 | 485,458 |
2,020 | 230,973 |
Thereafter | 208,937 |
Total | $ 1,621,339 |
Capital | A321neo aircraft | |
Long-term Purchase Commitment [Line Items] | |
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 | |
Long-term Purchase Commitment [Line Items] | |
Firm orders, number of spare engines | spare_engine_ordered | 2 |
Number of spare engine purchase rights | spare_engine_ordered | 2 |
Capital | A330-800neo aircraft | |
Long-term Purchase Commitment [Line Items] | |
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 | |
Long-term Purchase Commitment [Line Items] | |
Firm orders, number of spare engines | spare_engine_ordered | 2 |
Number of spare engine purchase rights | spare_engine_ordered | 2 |
Operating | |
Total Committed Expenditures | |
Remaining months in 2016 | $ 39,466 |
2,017 | 77,009 |
2,018 | 64,529 |
2,019 | 57,025 |
2,020 | 57,122 |
Thereafter | 287,500 |
Total | $ 582,651 |
Commitments and Contingent Li50
Commitments and Contingent Liabilities - Narrative (Details) - Credit Card Processing Agreements - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Long-term Purchase Commitment [Line Items] | ||
Restricted cash | $ 5 | $ 5 |
Maximum limit of holdback (as a percent) | 100.00% |
Supplemental Cash Flow Inform51
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||
Property and equipment acquired through a capital lease | $ 6,092 | $ 2,791 |
Condensed Consolidating Finan52
Condensed Consolidating Financial Information - Narrative and Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)pass_through_trust | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)pass_through_trust | Jun. 30, 2015USD ($) | |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Operating Revenue | $ 594,590 | $ 571,295 | $ 1,145,770 | $ 1,111,575 |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 83,798 | 112,519 | 153,698 | 223,846 |
Wages and benefits | 135,883 | 123,977 | 269,526 | 243,991 |
Aircraft rent | 30,066 | 28,817 | 59,454 | 57,188 |
Maintenance, materials and repairs | 54,585 | 57,071 | 115,089 | 112,316 |
Aircraft and passenger servicing | 30,723 | 29,348 | 59,274 | 57,664 |
Commissions and other selling | 31,425 | 30,484 | 64,456 | 60,912 |
Depreciation and amortization | 26,988 | 27,537 | 54,134 | 52,716 |
Other rentals and landing fees | 24,978 | 23,248 | 49,412 | 46,079 |
Purchased services | 24,543 | 19,842 | 47,275 | 41,081 |
Other | 32,731 | 27,036 | 62,714 | 53,202 |
Total | 475,720 | 479,879 | 935,032 | 948,995 |
Operating Income | 118,870 | 91,416 | 210,738 | 162,580 |
Nonoperating Income (Expense): | ||||
Interest expense and amortization of debt discounts and issuance costs | (8,910) | (13,718) | (19,914) | (29,236) |
Interest income | 1,087 | 725 | 1,931 | 1,361 |
Capitalized interest | 463 | 975 | 688 | 2,268 |
Gains on fuel derivatives | 21,087 | 2,026 | 19,022 | (3,661) |
Loss on extinguishment of debt | (6,643) | (287) | (9,993) | (7,242) |
Other, net | 2,686 | (1,876) | 9,272 | (4,810) |
Total | 9,770 | (12,155) | 1,006 | (41,320) |
Income Before Income Taxes | 128,640 | 79,261 | 211,744 | 121,260 |
Income tax expense | 49,070 | 30,427 | 80,708 | 46,543 |
Net Income | 79,570 | 48,834 | 131,036 | 74,717 |
Comprehensive Income (Loss) | 73,869 | 48,934 | 118,566 | 75,977 |
Eliminations | ||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Operating Revenue | (86) | (127) | (203) | (227) |
Operating Expenses: | ||||
Commissions and other selling | (33) | (40) | (71) | (69) |
Purchased services | (15) | (15) | (30) | (15) |
Other | (38) | (72) | (102) | (143) |
Total | (86) | (127) | (203) | (227) |
Operating Income | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense): | ||||
Undistributed net income of subsidiaries | (80,326) | (49,759) | (132,142) | (82,322) |
Total | (80,326) | (49,759) | (132,142) | (82,322) |
Income Before Income Taxes | (80,326) | (49,759) | (132,142) | (82,322) |
Net Income | (80,326) | (49,759) | (132,142) | (82,322) |
Comprehensive Income (Loss) | (74,625) | (49,859) | (119,672) | (83,582) |
Parent Issuer / Guarantor | ||||
Operating Expenses: | ||||
Commissions and other selling | 1 | 4 | ||
Purchased services | 52 | 99 | 87 | 99 |
Other | 1,461 | 1,153 | 2,787 | 3,138 |
Total | 1,513 | 1,252 | 2,875 | 3,241 |
Operating Income | (1,513) | (1,252) | (2,875) | (3,241) |
Nonoperating Income (Expense): | ||||
Undistributed net income of subsidiaries | 80,326 | 49,759 | 132,142 | 82,322 |
Interest expense and amortization of debt discounts and issuance costs | (156) | 117 | (1,592) | |
Interest income | 65 | 53 | 124 | 109 |
Loss on extinguishment of debt | (287) | (7,242) | ||
Total | 80,391 | 49,369 | 132,383 | 73,597 |
Income Before Income Taxes | 78,878 | 48,117 | 129,508 | 70,356 |
Income tax expense | (692) | (717) | (1,528) | (4,361) |
Net Income | 79,570 | 48,834 | 131,036 | 74,717 |
Comprehensive Income (Loss) | $ 73,869 | 48,934 | $ 118,566 | 75,977 |
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 | $ 593,161 | 570,254 | $ 1,143,295 | 1,109,461 |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 83,798 | 112,519 | 153,698 | 223,846 |
Wages and benefits | 135,883 | 123,977 | 269,526 | 243,991 |
Aircraft rent | 30,066 | 28,817 | 59,454 | 57,188 |
Maintenance, materials and repairs | 53,941 | 56,555 | 113,041 | 111,468 |
Aircraft and passenger servicing | 30,723 | 29,348 | 59,274 | 57,664 |
Commissions and other selling | 31,437 | 30,505 | 64,489 | 60,946 |
Depreciation and amortization | 26,241 | 26,790 | 52,640 | 51,222 |
Other rentals and landing fees | 24,978 | 23,248 | 49,412 | 46,079 |
Purchased services | 24,319 | 19,736 | 46,959 | 40,975 |
Other | 30,978 | 25,686 | 59,574 | 49,768 |
Total | 472,364 | 477,181 | 928,067 | 943,147 |
Operating Income | 120,797 | 93,073 | 215,228 | 166,314 |
Nonoperating Income (Expense): | ||||
Interest expense and amortization of debt discounts and issuance costs | (8,910) | (13,562) | (20,031) | (27,644) |
Interest income | 1,022 | 672 | 1,807 | 1,252 |
Capitalized interest | 463 | 975 | 688 | 2,268 |
Gains on fuel derivatives | 21,087 | 2,026 | 19,022 | (3,661) |
Loss on extinguishment of debt | (6,643) | (9,993) | ||
Other, net | 2,686 | (1,876) | 9,272 | (4,810) |
Total | 9,705 | (11,765) | 765 | (32,595) |
Income Before Income Taxes | 130,502 | 81,308 | 215,993 | 133,719 |
Income tax expense | 49,762 | 31,144 | 82,236 | 50,904 |
Net Income | 80,740 | 50,164 | 133,757 | 82,815 |
Comprehensive Income (Loss) | 75,039 | 50,264 | 121,287 | 84,075 |
Non-Guarantor Subsidiaries | ||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Operating Revenue | 1,515 | 1,168 | 2,678 | 2,341 |
Operating Expenses: | ||||
Maintenance, materials and repairs | 644 | 516 | 2,048 | 848 |
Commissions and other selling | 21 | 19 | 37 | 31 |
Depreciation and amortization | 747 | 747 | 1,494 | 1,494 |
Purchased services | 187 | 22 | 259 | 22 |
Other | 330 | 269 | 455 | 439 |
Total | 1,929 | 1,573 | 4,293 | 2,834 |
Operating Income | (414) | (405) | (1,615) | (493) |
Nonoperating Income (Expense): | ||||
Total | 0 | 0 | 0 | 0 |
Income Before Income Taxes | (414) | (405) | (1,615) | (493) |
Net Income | (414) | (405) | (1,615) | (493) |
Comprehensive Income (Loss) | $ (414) | $ (405) | $ (1,615) | $ (493) |
Condensed Consolidating Finan53
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 355,467 | $ 281,502 | $ 344,782 | $ 264,087 |
Restricted cash | 5,000 | 5,000 | ||
Short-term investments | 266,345 | 278,545 | ||
Accounts receivable, net | 93,432 | 81,723 | ||
Spare parts and supplies, net | 18,150 | 19,164 | ||
Prepaid expenses and other | 53,788 | 75,050 | ||
Total | 792,182 | 740,984 | ||
Property and equipment at cost | 2,052,439 | 1,985,252 | ||
Less accumulated depreciation and amortization | (477,615) | (432,510) | ||
Property and equipment, net | 1,574,824 | 1,552,742 | ||
Long-term prepayments and other | 69,792 | 70,873 | ||
Goodwill and other intangible assets, net | 124,539 | 125,323 | ||
Total Assets | 2,561,337 | 2,489,922 | ||
Current liabilities: | ||||
Accounts payable | 114,396 | 101,310 | ||
Air traffic liability | 557,851 | 430,766 | ||
Other accrued liabilities | 121,775 | 160,258 | ||
Current maturities of long-term debt, less discount, and capital lease obligations | 58,352 | 74,441 | ||
Total | 852,374 | 766,775 | ||
Long-term debt and capital lease obligations | 527,625 | 677,915 | ||
Other liabilities and deferred credits: | ||||
Accumulated pension and other postretirement benefit obligations | 373,572 | 372,700 | ||
Other liabilities and deferred credits | 100,405 | 89,845 | ||
Deferred tax liabilities, net | 141,249 | 136,625 | ||
Total | 615,226 | 599,170 | ||
Shareholders’ equity | 566,112 | 446,062 | ||
Total Liabilities and Shareholders’ Equity | 2,561,337 | 2,489,922 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | (228) | (211) | ||
Total | (228) | (211) | ||
Deferred tax assets, net | (27,587) | (26,059) | ||
Intercompany receivable | (277,268) | (242,248) | ||
Investment in consolidated subsidiaries | (736,215) | (596,570) | ||
Total Assets | (1,041,298) | (865,088) | ||
Current liabilities: | ||||
Accounts payable | (228) | (211) | ||
Total | (228) | (211) | ||
Intercompany payable | (277,268) | (242,248) | ||
Other liabilities and deferred credits: | ||||
Deferred tax liabilities, net | (27,587) | (26,059) | ||
Total | (27,587) | (26,059) | ||
Shareholders’ equity | (736,215) | (596,570) | ||
Total Liabilities and Shareholders’ Equity | (1,041,298) | (865,088) | ||
Parent Issuer / Guarantor | ||||
Current assets: | ||||
Cash and cash equivalents | 70,966 | 69,420 | 36,823 | 79,532 |
Accounts receivable, net | 61 | 61 | ||
Prepaid expenses and other | 141 | 7 | ||
Total | 71,168 | 69,488 | ||
Deferred tax assets, net | 27,587 | 26,059 | ||
Investment in consolidated subsidiaries | 736,215 | 596,570 | ||
Total Assets | 834,970 | 692,117 | ||
Current liabilities: | ||||
Accounts payable | 411 | 755 | ||
Other accrued liabilities | 2,048 | 530 | ||
Current maturities of long-term debt, less discount, and capital lease obligations | 288 | |||
Total | 2,459 | 1,573 | ||
Intercompany payable | 266,235 | 242,248 | ||
Other liabilities and deferred credits: | ||||
Other liabilities and deferred credits | 164 | 2,234 | ||
Total | 164 | 2,234 | ||
Shareholders’ equity | 566,112 | 446,062 | ||
Total Liabilities and Shareholders’ Equity | 834,970 | 692,117 | ||
Subsidiary Issuer / Guarantor | ||||
Current assets: | ||||
Cash and cash equivalents | 277,558 | 203,406 | 284,567 | 179,676 |
Restricted cash | 5,000 | 5,000 | ||
Short-term investments | 266,345 | 278,545 | ||
Accounts receivable, net | 92,840 | 81,248 | ||
Spare parts and supplies, net | 18,150 | 19,164 | ||
Prepaid expenses and other | 53,374 | 74,948 | ||
Total | 713,267 | 662,311 | ||
Property and equipment at cost | 1,982,280 | 1,927,126 | ||
Less accumulated depreciation and amortization | (470,927) | (427,315) | ||
Property and equipment, net | 1,511,353 | 1,499,811 | ||
Long-term prepayments and other | 69,792 | 70,373 | ||
Goodwill and other intangible assets, net | 124,039 | 125,323 | ||
Intercompany receivable | 277,268 | 242,248 | ||
Total Assets | 2,695,719 | 2,600,066 | ||
Current liabilities: | ||||
Accounts payable | 113,733 | 100,007 | ||
Air traffic liability | 554,638 | 427,302 | ||
Other accrued liabilities | 119,425 | 159,583 | ||
Current maturities of long-term debt, less discount, and capital lease obligations | 58,352 | 74,153 | ||
Total | 846,148 | 761,045 | ||
Long-term debt and capital lease obligations | 527,625 | 677,915 | ||
Other liabilities and deferred credits: | ||||
Accumulated pension and other postretirement benefit obligations | 373,572 | 372,700 | ||
Other liabilities and deferred credits | 99,417 | 86,861 | ||
Deferred tax liabilities, net | 168,836 | 162,684 | ||
Total | 641,825 | 622,245 | ||
Shareholders’ equity | 680,121 | 538,861 | ||
Total Liabilities and Shareholders’ Equity | 2,695,719 | 2,600,066 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 6,943 | 8,676 | $ 23,392 | $ 4,879 |
Accounts receivable, net | 759 | 625 | ||
Prepaid expenses and other | 273 | 95 | ||
Total | 7,975 | 9,396 | ||
Property and equipment at cost | 70,159 | 58,126 | ||
Less accumulated depreciation and amortization | (6,688) | (5,195) | ||
Property and equipment, net | 63,471 | 52,931 | ||
Long-term prepayments and other | 500 | |||
Goodwill and other intangible assets, net | 500 | |||
Total Assets | 71,946 | 62,827 | ||
Current liabilities: | ||||
Accounts payable | 480 | 759 | ||
Air traffic liability | 3,213 | 3,464 | ||
Other accrued liabilities | 302 | 145 | ||
Total | 3,995 | 4,368 | ||
Intercompany payable | 11,033 | |||
Other liabilities and deferred credits: | ||||
Other liabilities and deferred credits | 824 | 750 | ||
Total | 824 | 750 | ||
Shareholders’ equity | 56,094 | 57,709 | ||
Total Liabilities and Shareholders’ Equity | $ 71,946 | $ 62,827 |
Condensed Consolidating Finan54
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by Operating Activities | $ 285,466 | $ 297,520 |
Cash Flows From Investing Activities: | ||
Additions to property and equipment, including pre-delivery deposits | (70,291) | (72,902) |
Proceeds from purchase assignment and leaseback transactions | 31,851 | 86,033 |
Proceeds from disposition of property and equipment | 0 | 3,513 |
Purchases of investments | (138,235) | (115,218) |
Sales of investments | 150,651 | 112,886 |
Net cash provided by (used in) investing activities | (26,024) | 14,312 |
Cash Flows From Financing Activities: | ||
Repayments of long-term debt and capital lease obligations | (183,607) | (43,460) |
Repurchases and redemptions of convertible notes | (1,426) | (168,407) |
Repurchases of common stock | (10,075) | (17,621) |
Excess tax benefit from equity awards | 17,259 | 0 |
Other | (7,628) | (1,649) |
Net cash used in financing activities | (185,477) | (231,137) |
Net increase in cash and cash equivalents | 73,965 | 80,695 |
Cash and cash equivalents - Beginning of Period | 281,502 | 264,087 |
Cash and cash equivalents - End of Period | 355,467 | 344,782 |
Eliminations | ||
Cash Flows From Investing Activities: | ||
Net payments to affiliates | 26,686 | 195,209 |
Net cash provided by (used in) investing activities | 26,686 | 195,209 |
Cash Flows From Financing Activities: | ||
Net payments from affiliates | (26,686) | (195,209) |
Net cash used in financing activities | (26,686) | (195,209) |
Cash and cash equivalents - End of Period | 0 | 0 |
Parent Issuer / Guarantor | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by Operating Activities | (2,995) | (2,349) |
Cash Flows From Investing Activities: | ||
Net payments to affiliates | (25,000) | |
Net cash provided by (used in) investing activities | 0 | (25,000) |
Cash Flows From Financing Activities: | ||
Repurchases and redemptions of convertible notes | (1,426) | (168,407) |
Net payments from affiliates | 15,653 | 170,209 |
Repurchases of common stock | (10,075) | (17,621) |
Other | 389 | 459 |
Net cash used in financing activities | 4,541 | (15,360) |
Net increase in cash and cash equivalents | 1,546 | (42,709) |
Cash and cash equivalents - Beginning of Period | 69,420 | 79,532 |
Cash and cash equivalents - End of Period | 70,966 | 36,823 |
Subsidiary Issuer / Guarantor | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by Operating Activities | 289,193 | 299,009 |
Cash Flows From Investing Activities: | ||
Net payments to affiliates | (26,686) | (170,209) |
Additions to property and equipment, including pre-delivery deposits | (58,257) | (65,500) |
Proceeds from purchase assignment and leaseback transactions | 31,851 | 86,033 |
Proceeds from disposition of property and equipment | 0 | 3,458 |
Purchases of investments | (138,235) | (115,218) |
Sales of investments | 150,651 | 112,886 |
Net cash provided by (used in) investing activities | (40,676) | (148,550) |
Cash Flows From Financing Activities: | ||
Repayments of long-term debt and capital lease obligations | (183,607) | (43,460) |
Excess tax benefit from equity awards | 17,259 | |
Other | (8,017) | (2,108) |
Net cash used in financing activities | (174,365) | (45,568) |
Net increase in cash and cash equivalents | 74,152 | 104,891 |
Cash and cash equivalents - Beginning of Period | 203,406 | 179,676 |
Cash and cash equivalents - End of Period | 277,558 | 284,567 |
Non-Guarantor Subsidiaries | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by Operating Activities | (732) | 860 |
Cash Flows From Investing Activities: | ||
Additions to property and equipment, including pre-delivery deposits | (12,034) | (7,402) |
Proceeds from disposition of property and equipment | 0 | 55 |
Net cash provided by (used in) investing activities | (12,034) | (7,347) |
Cash Flows From Financing Activities: | ||
Net payments from affiliates | 11,033 | 25,000 |
Net cash used in financing activities | 11,033 | 25,000 |
Net increase in cash and cash equivalents | (1,733) | 18,513 |
Cash and cash equivalents - Beginning of Period | 8,676 | 4,879 |
Cash and cash equivalents - End of Period | $ 6,943 | $ 23,392 |