Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 13, 2017 | |
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 | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 52,471,736 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Revenue: | ||||
Passenger | $ 634,475 | $ 591,496 | $ 1,765,275 | $ 1,592,095 |
Other | 85,084 | 80,341 | 243,804 | 225,512 |
Total | 719,559 | 671,837 | 2,009,079 | 1,817,607 |
Operating Expenses: | ||||
Wages and benefits | 161,059 | 136,356 | 466,772 | 395,718 |
Aircraft fuel, including taxes and delivery | 110,111 | 94,818 | 316,423 | 248,516 |
Maintenance, materials and repairs | 49,396 | 51,812 | 161,366 | 166,901 |
Aircraft and passenger servicing | 36,360 | 33,971 | 104,569 | 93,245 |
Aircraft rent | 35,195 | 32,891 | 102,883 | 92,345 |
Commissions and other selling | 32,930 | 29,480 | 98,668 | 93,936 |
Other rentals and landing fees | 30,989 | 28,926 | 86,763 | 78,338 |
Depreciation and amortization | 28,447 | 27,495 | 83,787 | 81,629 |
Purchased services | 24,736 | 25,614 | 79,428 | 72,889 |
Special items | 0 | 0 | 23,450 | 0 |
Other | 36,585 | 31,565 | 101,376 | 94,279 |
Total | 545,808 | 492,928 | 1,625,485 | 1,417,796 |
Operating Income | 173,751 | 178,909 | 383,594 | 399,811 |
Nonoperating Income (Expense): | ||||
Other nonoperating special items | (50,202) | 0 | (50,202) | 0 |
Interest expense and amortization of debt discounts and issuance costs | (7,578) | (8,539) | (23,292) | (28,453) |
Gains (losses) on fuel derivatives | 3,282 | (3,601) | (10,228) | 15,421 |
Other components of net periodic benefit cost | (3,792) | (5,054) | (13,293) | (15,218) |
Interest income | 1,861 | 1,113 | 4,480 | 3,044 |
Capitalized interest | 2,416 | 719 | 6,258 | 1,407 |
Loss on extinguishment of debt | 0 | 0 | 0 | (9,993) |
Other, net | (100) | 612 | 3,161 | 9,884 |
Total | (54,113) | (14,750) | (83,116) | (23,908) |
Income Before Income Taxes | 119,638 | 164,159 | 300,478 | 375,903 |
Income tax expense | 45,072 | 61,705 | 108,567 | 142,413 |
Net Income | $ 74,566 | $ 102,454 | $ 191,911 | $ 233,490 |
Net Income Per Share | ||||
Basic (in dollars per share) | $ 1.40 | $ 1.92 | $ 3.59 | $ 4.37 |
Diluted (in dollars per share) | $ 1.39 | $ 1.91 | $ 3.57 | $ 4.35 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 74,566 | $ 102,454 | $ 191,911 | $ 233,490 |
Other comprehensive income (loss), net: | ||||
Net change related to employee benefit plans, net of tax expense | 25,042 | 1,293 | 27,900 | 3,448 |
Net change in derivative instruments, net of tax benefit | (326) | (1,858) | (6,162) | (17,166) |
Net change in available-for-sale investments, net of tax expense | 70 | (246) | 188 | 437 |
Total other comprehensive income (loss) | 24,786 | (811) | 21,926 | (13,281) |
Total Comprehensive Income | $ 99,352 | $ 101,643 | $ 213,837 | $ 220,209 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change related to employee benefit plans, tax expense | $ 15,247 | $ 714 | $ 17,040 | $ 2,028 |
Net change in derivative instruments, tax expense (benefit) | (198) | (1,141) | (3,756) | (10,457) |
Net change in available-for-sale investments, tax expense (benefit) | $ 43 | $ (150) | $ 115 | $ 266 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 348,049 | $ 325,991 |
Restricted cash | 1,000 | 5,000 |
Short-term investments | 270,697 | 284,075 |
Accounts receivable, net | 118,622 | 96,067 |
Spare parts and supplies, net | 26,560 | 20,363 |
Prepaid expenses and other | 56,783 | 66,740 |
Total | 821,711 | 798,236 |
Property and equipment, less accumulated depreciation and amortization of $533,964 and $454,231 as of September 30, 2017 and December 31, 2016, respectively | 1,753,946 | 1,654,567 |
Other Assets: | ||
Long-term prepayments and other | 124,926 | 132,724 |
Intangible assets, less accumulated amortization of $21,301 and $20,337 as of September 30, 2017 and December 31, 2016, respectively | 15,447 | 16,411 |
Goodwill | 106,663 | 106,663 |
Total Assets | 2,822,693 | 2,708,601 |
Current Liabilities: | ||
Accounts payable | 118,810 | 116,507 |
Air traffic liability | 573,373 | 482,496 |
Other accrued liabilities | 157,760 | 172,214 |
Current maturities of long-term debt and capital lease obligations | 58,585 | 58,899 |
Total | 908,528 | 830,116 |
Long-Term Debt and Capital Lease Obligations | 447,533 | 497,908 |
Other Liabilities and Deferred Credits: | ||
Accumulated pension and other post-retirement benefit obligations | 234,206 | 355,968 |
Other liabilities and deferred credits | 172,792 | 173,613 |
Deferred tax liability, net | 218,843 | 170,543 |
Total | 625,841 | 700,124 |
Commitments and Contingencies | ||
Shareholders’ Equity: | ||
Special preferred stock, $0.01 par value per share, three shares issued and outstanding as of September 30, 2017 and December 31, 2016 | 0 | 0 |
Common stock, $0.01 par value per share, 52,471,736 and 53,435,234 shares outstanding as of September 30, 2017 and December 31, 2016, respectively | 525 | 534 |
Capital in excess of par value | 73,776 | 127,266 |
Accumulated income | 848,057 | 656,146 |
Accumulated other comprehensive loss, net | (81,567) | (103,493) |
Total | 840,791 | 680,453 |
Total Liabilities and Shareholders’ Equity | $ 2,822,693 | $ 2,708,601 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation and amortization | $ 533,964 | $ 454,231 |
Intangible assets, accumulated amortization | $ 21,301 | $ 20,337 |
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 | 52,471,736 | 53,435,234 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by Operating Activities | $ 295,477 | $ 434,922 |
Cash flows from Investing Activities: | ||
Additions to property and equipment, including pre-delivery payments | (212,535) | (104,250) |
Proceeds from purchase assignment and leaseback transactions | 0 | 31,851 |
Proceeds from disposition of property and equipment | 33,511 | 0 |
Purchases of investments | (171,485) | (217,964) |
Sales of investments | 183,930 | 208,075 |
Net cash used in investing activities | (166,579) | (82,288) |
Cash flows from Financing Activities: | ||
Repayments of long-term debt and capital lease obligations | (52,463) | (205,532) |
Repurchases and redemptions of convertible notes | 0 | (1,426) |
Repurchases of common stock | (50,486) | (13,763) |
Other | (7,891) | (7,702) |
Net cash used in financing activities | (110,840) | (228,423) |
Net increase in cash and cash equivalents | 18,058 | 124,211 |
Cash, cash equivalents, and restricted cash - Beginning of Period | 330,991 | 286,502 |
Cash, cash equivalents, and restricted cash - End of Period | $ 349,049 | $ 410,713 |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016 . |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Recently Adopted Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, requiring an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. ASU 2017-07 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption only permitted in the first quarter of 2017. The Company early adopted this standard during the first quarter of 2017. The adoption of ASU 2017-07 resulted in a reclassification of $5.1 million and $15.2 million from wages and benefits to other components of net periodic benefit cost on the Company's consolidated statement of operations for the three and nine months ended September 30, 2016 , respectively. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, Restricted Cash, requiring restricted cash and restricted cash equivalents to be included with cash and cash equivalents on the statement of cash flows when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company early adopted this standard during the first quarter of 2017. Restricted cash is now included as a component of cash, cash equivalents, and restricted cash on the Company's condensed consolidated statement of cash flows. The inclusion of restricted cash increased the beginning and ending balances of the condensed consolidated statement of cash flows by $5.0 million for the nine months ended September 30, 2016 . In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, requiring all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. ASU 2016-09 will also allow an employer to withhold more shares for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016. The Company adopted this standard during the first quarter of 2017. The primary impact of the adoption of the standard on the Company's consolidated financial statements was the recognition of excess tax benefits in the provision for income taxes rather than additional paid-in capital, which reduced income tax expense by $0.3 million and $5.8 million for the three and nine months ended September 30, 2017 , respectively. The Company also reclassified $17.6 million of excess tax benefits for share-based payments in the cash flow statement from financing activities to operating activities for the nine months ended September 30, 2016 . Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging, which better aligns a company's risk management activities and financial reporting for hedging relationships and is intended to simplify hedge accounting requirements. ASU 2017-12 is effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the components and options within ASU 2017-12. In February 2016, the FASB issued ASU 2016-02, Leases, 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 evaluating the impact the adoption of this standard will have on its consolidated financial statements and believes this ASU will have a significant impact on its consolidated balance sheet but does not expect that the ASU will have a material impact on the Company's results of operations or cash flows. The effect of adopting the new standard will be to record right-of-use assets and operating lease obligations for current operating leases on the Company's balance sheet. See Note 9 which discusses our lease obligations as of September 30, 2017 . In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, and created a new topic (ASC 606), 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. ASC 606 will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASC 606 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company will elect to adopt the full retrospective transition method as of January 1, 2018, resulting in the restatement of certain prior periods on the date of adoption. The Company is completing its overall analysis for the provisions of ASC 606 specific to its consolidated financial statements and related disclosures. The Company is also designing and implementing controls and systems in anticipation of the adoption of the standard, effective January 1, 2018 which will have a material impact on its consolidated financial statements. The overall expected decrease in equity as of January 1, 2016 is expected to be up to $125 million net of tax, with an offsetting change primarily in Other liabilities and deferred credits. The corresponding annual income statement effect is expected to be a decrease of approximately 1% of total revenue. While the Company continues to assess all potential impacts of this new standard, it currently believes the most significant impact relates to the accounting for the Company's frequent flyer travel award program. This change as well as other less significant changes, is briefly described below: • Frequent flyer - The standard will require the Company to account for miles earned by passengers in the HawaiianMiles program through flight activity as a component of the passenger revenue ticket transaction at the estimated selling price of the miles (effectively eliminating the incremental cost accounting currently applied). Under ASC 606, ticket consideration received is allocated between the performance obligations, primarily travel and miles earned by passengers. The allocated value of the miles will be deferred until the free travel or other award is used by the passenger, at which time it will be included in passenger revenues. ASC 606 will result in a significant increase to the deferred revenue liability on the Company's balance sheet, as the estimated selling price of the miles significantly exceeds the value previously recorded for incremental cost. • Passenger revenue - Currently, passenger revenue is recognized either when the transportation is provided or when tickets expire unused. However, after the application of ASC 606, passenger revenue associated with unused tickets, which represent unexercised passenger rights, is expected to be recognized in proportion to the pattern of rights exercised by related passengers (e.g. scheduled departure dates). This will have the effect of accelerating the recognition of revenue and reducing the recorded balance in air traffic liability as compared to the current policy. • Other operating revenue - Other operating revenue includes checked baggage revenue, cargo revenue, ticket change and cancellation fees, charter revenue, ground handling fees, commissions and fees earned under certain joint marketing agreements with other companies, inflight revenue, and other incidental sales. Ticket change and cancellation fees are currently recognized at the time the fees are assessed. The Company expects to defer the recognition of ticket change fees as a component of air traffic liability until the related transportation is provided. Certain amounts currently classified in other revenue (e.g. bag and other ancillary fees) will be reclassified to passenger revenue. • Selling Costs - Certain selling costs to issue passenger tickets (e.g. credit card and booking fees) are currently recognized when incurred. Consistent with the Company’s current accounting for commissions, under ASC 606 the Company will capitalize selling costs associated with credit card and booking fees and recognize the associated expense at the ticketed flight date. The adoption of the standard will require the implementation of new accounting processes and systems, which will change the Company's internal control over revenue recognition. Other items could be identified that will impact amounts ultimately recorded. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Reclassifications out of accumulated other comprehensive income (loss) by component are as follows: Details about accumulated other comprehensive (income) loss components Three months ended September 30, Nine months ended September 30, Affected line items in the statement where net income is presented 2017 2016 2017 2016 (in thousands) Derivatives designated as hedging instruments under ASC 815 Foreign currency derivative losses (gains) $ (449 ) $ 1,842 $ (2,141 ) $ (1,679 ) Passenger revenue Interest rate derivative losses, net — — — 944 Interest expense Total before tax (449 ) 1,842 (2,141 ) (735 ) Tax expense (benefit) 170 (701 ) 811 272 Total, net of tax $ (279 ) $ 1,141 $ (1,330 ) $ (463 ) Amortization of defined benefit plan items Actuarial loss $ 2,277 $ 1,950 $ 6,733 $ 5,780 Other components of net periodic benefit cost Prior service cost 65 57 185 171 Other components of net periodic benefit cost Partial settlement and curtailment loss 15,001 — 15,001 — Other nonoperating special items Loss on plan termination 35,201 — 35,201 — Other nonoperating special items Total before tax 52,544 2,007 57,120 5,951 Tax benefit (19,883 ) (714 ) (21,648 ) (2,207 ) Total, net of tax $ 32,661 $ 1,293 $ 35,472 $ 3,744 Short-term investments Realized gain on sales of investments, net $ (6 ) $ (129 ) $ (26 ) $ (189 ) Other nonoperating income Total before tax (6 ) (129 ) (26 ) (189 ) Tax expense 2 49 10 69 Total, net of tax $ (4 ) $ (80 ) $ (16 ) $ (120 ) Total reclassifications for the period $ 32,378 $ 2,354 $ 34,126 $ 3,161 A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes, for the three and nine months ended September 30, 2017 and 2016 is as follows: Three months ended September 30, 2017 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Short-Term Investments Total (in thousands) Beginning balance $ — $ 1,235 $ (107,344 ) $ (244 ) $ (106,353 ) Other comprehensive income (loss) before reclassifications, net of tax — (47 ) (7,619 ) 74 (7,592 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — (279 ) 32,661 (4 ) 32,378 Net current-period other comprehensive income (loss) — (326 ) 25,042 70 24,786 Ending balance $ — $ 909 $ (82,302 ) $ (174 ) $ (81,567 ) Three months ended September 30, 2016 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Plan Items Short-Term Investments Total (in thousands) Beginning balance $ — $ (10,348 ) $ (101,710 ) $ 311 $ (111,747 ) Other comprehensive loss before reclassifications, net of tax — (2,999 ) — (166 ) (3,165 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — 1,141 1,293 (80 ) 2,354 Net current-period other comprehensive income (loss) — (1,858 ) 1,293 (246 ) (811 ) Ending balance $ — $ (12,206 ) $ (100,417 ) $ 65 $ (112,558 ) Nine months ended September 30, 2017 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Pension Items Short-Term Investments Total (in thousands) Beginning balance $ — $ 7,071 $ (110,202 ) $ (362 ) $ (103,493 ) Other comprehensive income (loss) before reclassifications, net of tax — (4,832 ) (7,572 ) 204 (12,200 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — (1,330 ) 35,472 (16 ) 34,126 Net current-period other comprehensive income (loss) — (6,162 ) 27,900 188 21,926 Ending balance $ — $ 909 $ (82,302 ) $ (174 ) $ (81,567 ) Nine months ended September 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 ) (16,035 ) (296 ) 557 (16,442 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 587 (1,050 ) 3,744 (120 ) 3,161 Net current-period other comprehensive income (loss) (81 ) (17,085 ) 3,448 437 (13,281 ) Ending balance $ — $ (12,206 ) $ (100,417 ) $ 65 $ (112,558 ) |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share, which excludes dilution, is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the three and nine months ended September 30, 2017 and 2016 , anti-dilutive shares excluded from the calculation of diluted earnings per share were nil. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands, except for per share data) Numerator: Net Income $ 74,566 $ 102,454 $ 191,911 $ 233,490 Denominator: Weighted average common stock shares outstanding - Basic 53,185 53,427 53,456 53,488 Assumed exercise of stock options and awards 324 161 343 219 Assumed conversion of convertible note premium — — — 8 Weighted average common stock shares outstanding - Diluted 53,509 53,588 53,799 53,715 Net Income Per Share Basic $ 1.40 $ 1.92 $ 3.59 $ 4.37 Diluted $ 1.39 $ 1.91 $ 3.57 $ 4.35 Stock Repurchase Program and Dividends In April 2017, the Company's Board of Directors approved the repurchase of up to $100 million of its outstanding common stock over a two -year period through May 2019 via 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 further modification or termination at any time. The Company spent $46.2 million and $50.5 million to repurchase and retire approximately 1.1 million shares and 1.2 million shares of the Company's common stock in open market transactions during the three and nine months ended September 30, 2017 , respectively. As of September 30, 2017 , the Company had $49.5 million remaining to spend under its stock repurchase program. In October 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share payable on November 30, 2017, to stockholders of record as of November 17, 2017. |
Short-Term Investments
Short-Term Investments | 9 Months Ended |
Sep. 30, 2017 | |
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 Company's unaudited consolidated statements of operations. Unrealized gains and losses on available-for-sale securities are reflected as a component of accumulated other comprehensive income. The following is a summary of short-term investments held as of September 30, 2017 and December 31, 2016 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2017 (in thousands) Corporate debt $ 167,407 $ 67 $ (170 ) $ 167,304 U.S. government and agency debt 50,515 1 (131 ) 50,385 Municipal bonds 19,839 27 (30 ) 19,836 Other fixed income securities 33,172 1 (1 ) 33,172 Total short-term investments $ 270,933 $ 96 $ (332 ) $ 270,697 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2016 (in thousands) Corporate debt $ 171,139 $ 84 $ (357 ) $ 170,866 U.S. government and agency debt 53,916 8 (134 ) 53,790 Municipal bonds 22,893 1 (144 ) 22,750 Other fixed income securities 36,670 — (1 ) 36,669 Total short-term investments $ 284,618 $ 93 $ (636 ) $ 284,075 Contractual maturities of short-term investments as of September 30, 2017 are shown below. Under 1 Year 1 to 5 Years Total (in thousands) Corporate debt $ 72,879 $ 94,425 $ 167,304 U.S. government and agency debt 34,320 16,065 50,385 Municipal bonds 6,942 12,894 19,836 Other fixed income securities 24,535 8,637 33,172 Total short-term investments $ 138,676 $ 132,021 $ 270,697 The Company classifies investments as current assets as these securities are available for use in its current operations. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurement (ASC 820) defines 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 September 30, 2017 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 198,018 $ 171,936 $ 26,082 $ — Restricted cash 1,000 1,000 — — Short-term investments 270,697 — 270,697 — Fuel derivative contracts: Crude oil call options 8,184 — 8,184 — Jet fuel swaps 566 — 566 — Foreign currency derivatives 4,721 — 4,721 — Total assets measured at fair value $ 483,186 $ 172,936 $ 310,250 $ — Fuel derivative contracts: Jet fuel swaps $ 21 $ — $ 21 $ — Foreign currency derivatives 2,612 — 2,612 — Total liabilities measured at fair value $ 2,633 $ — $ 2,633 $ — Fair Value Measurements as of December 31, 2016 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 123,120 $ 104,113 $ 19,007 $ — Restricted cash 5,000 5,000 — — Short-term investments 284,075 — 284,075 — Fuel derivative contracts: Crude oil call options 8,489 — 8,489 — Heating oil swaps 6,601 — 6,601 — Foreign currency derivatives 12,906 — 12,906 — Total assets measured at fair value $ 440,191 $ 109,113 $ 331,078 $ — Foreign currency derivatives 1,469 — 1,469 — Total liabilities measured at fair value $ 1,469 $ — $ 1,469 $ — Cash equivalents. The Company's level 1 cash equivalents consist of money market securities and the level 2 cash equivalents consist of U.S. agency bonds, mutual funds, and commercial paper. The instruments classified as level 2 are valued using quoted prices for similar assets in active markets. Restricted cash . The Company’s restricted cash consists of cash held as collateral by institutions that process our credit card transactions for advanced ticket sales, which is valued similarly to the money market securities held as cash equivalents. 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 crude oil call options and jet fuel swaps, which are not traded on a public exchange. The fair value of these instruments are determined based on inputs available or derived from public markets including contractual terms, market prices, yield curves, and measures of volatility among others. Foreign currency derivatives. The Company’s foreign currency derivatives consist of Japanese Yen and Australian Dollar forward contracts and are valued primarily based upon data available or derived from public markets. The table below presents the Company’s debt (excluding obligations under capital leases) measured at fair value: Fair Value of Debt September 30, 2017 December 31, 2016 Carrying Fair Value Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Amount Total Level 1 Level 2 Level 3 (in thousands) $ 438,843 $ 449,761 $ — $ — $ 449,761 $ 481,874 $ 484,734 $ — $ — $ 484,734 The fair value estimates of the Company’s debt were based on the discounted amount of future cash flows using the Company’s current incremental rate of borrowing for similar instruments. The carrying amounts of cash, other receivables, and accounts payable approximate fair value due to the short-term nature of these financial instruments. |
Financial Derivative Instrument
Financial Derivative Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivative Instruments | Financial Derivative Instruments The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global fuel prices and foreign currencies. Fuel Risk Management The Company’s operations are inherently dependent upon the price and availability of aircraft fuel. To manage economic risks associated with fluctuations in aircraft fuel prices, the Company periodically enters into derivative financial instruments. During the three and nine months ended September 30, 2017 , the Company primarily used crude oil call options and jet fuel swaps to hedge its aircraft fuel expense. These derivative instruments were not designated as hedges under ASC Topic 815, Derivatives and Hedging (ASC 815), for hedge accounting treatment. As a result, any changes in fair value of these derivative instruments are adjusted through other nonoperating income (expense) in the period of change. The following table reflects the amount of realized and unrealized gains and losses recorded as nonoperating income (expense) in the Company's unaudited Consolidated Statements of Operations. Three months ended September 30, Nine months ended September 30, Fuel derivative contracts 2017 2016 2017 2016 (in thousands) Losses realized at settlement $ (2,787 ) $ (2,525 ) $ (2,100 ) $ (30,349 ) Reversal of prior period unrealized amounts 6,251 (7,115 ) (7,946 ) 39,731 Unrealized gains (losses) that will settle in future periods (182 ) 6,039 (182 ) 6,039 Gains (losses) on fuel derivatives recorded as Nonoperating income (expense) $ 3,282 $ (3,601 ) $ (10,228 ) $ 15,421 Foreign Currency Exchange Rate Risk Management The Company is subject to foreign currency exchange rate risk due to revenues and expenses that are denominated in foreign currencies, with the primary exposures being the Japanese Yen and Australian Dollar. To manage exchange rate risk, the Company executes its international revenue and expense transactions in the same foreign currency to the extent practicable. The Company enters into foreign currency forward contracts to further manage the effects of fluctuating exchange rates. The effective portion of the gain or loss of designated cash flow hedges is reported as a component of accumulated other comprehensive income (AOCI) and reclassified into earnings in the same period in which the related sales are recognized as passenger revenue. The effective portion of the foreign currency forward contracts represents the change in fair value of the hedge that offsets the change in the fair value of the hedged item. To the extent the change in the fair value of the hedge does not perfectly offset the change in the fair value of the hedged item, the ineffective portion of the hedge is immediately recognized as nonoperating income (expense). Foreign currency forward contracts that are not designated as cash flow hedges are recorded at fair value, and any changes in fair value are recognized as other nonoperating income (expense) in the period of change. The Company believes that its foreign currency forward contracts that are designated as cash flow hedges will continue to be effective in offsetting changes in cash flow attributable to the hedged risk. The Company expects to reclassify a net gain of approximately $0.6 million into earnings over the next 12 months from AOCI based on the values at September 30, 2017 . 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 Company's unaudited Consolidated Balance Sheets. Derivative position as of September 30, 2017 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives designated as hedges Foreign currency derivatives Prepaid expenses and other 15,704,725 Japanese Yen September 2018 3,594 (2,340 ) 1,254 Long-term prepayments and other 4,812,000 Japanese Yen September 2019 952 (242 ) 710 Derivatives not designated as hedges Foreign currency derivatives Prepaid expenses and other 924,350 Japanese Yen December 2017 175 (30 ) 145 Fuel derivative contracts Prepaid expenses and other 94,332 gallons September 2018 8,750 (21 ) 8,729 Derivative position as of December 31, 2016 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives designated as hedges Foreign currency derivatives Prepaid expenses and other 16,121,500 Japanese Yen December 2017 9,803 (1,349 ) 8,454 Long-term prepayments and other 4,371,900 Japanese Yen December 2018 2,632 (59 ) 2,573 Derivatives not designated as hedges Foreign currency derivatives Prepaid expenses and other 879,050 Japanese Yen March 2017 471 (61 ) 410 Fuel derivative contracts Prepaid expenses and other 17,850 gallons December 2017 15,090 — 15,090 The following table reflects the impact of cash flow hedges designated for hedge accounting treatment and their location within the Company's unaudited Consolidated Statements of Comprehensive Income. (Gain) loss recognized in AOCI on derivatives (effective portion) (Gain) loss reclassified from AOCI (Gain) loss recognized in Three months ended September 30, Three months ended September 30, Three months ended September 30, 2017 2016 2017 2016 2017 2016 (in thousands) Foreign currency derivatives $ 75 $ 4,841 $ (449 ) $ 1,842 $ — $ — Interest rate derivatives — — — — — — (Gain) loss recognized in AOCI on derivatives (effective portion) (Gain) loss reclassified from AOCI (Gain) loss recognized in Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 2017 2016 (in thousands) Foreign currency derivatives $ 7,780 $ 24,996 $ (2,141 ) $ (1,679 ) $ — $ — Interest rate derivatives — 923 — 944 — — Risk and Collateral Financial derivative instruments expose the Company to possible credit loss in the event the counterparties 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 no collateral posted with counterparties as of September 30, 2017 and December 31, 2016 . The Company is also subject to market risk in the event these financial instruments become less valuable in the market. However, changes in the fair value of the derivative instruments will generally offset the change in the fair value of the hedged item, limiting the Company’s overall exposure. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of September 30, 2017 , the expected maturities of long-term debt for the remainder of 2017 and the next four years, and thereafter, were as follows (in thousands): Remaining months in 2017 $ 5,771 2018 48,244 2019 72,927 2020 21,413 2021 49,060 Thereafter 241,428 $ 438,843 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2017 | |
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. As of September 30, 2017 , 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 2017 $ 31,984 $ 1,643 2018 127,235 7,311 2019 118,070 6,939 2020 97,717 6,690 2021 64,730 6,768 Thereafter 222,227 107,760 $ 661,963 $ 137,111 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The components of net periodic benefit cost for the Company’s defined benefit and other post-retirement plans included the following: Three months ended September 30, Nine months ended September 30, Components of Net Period Benefit Cost 2017 2016 2017 2016 (in thousands) Service cost $ 3,296 $ 3,438 $ 10,922 $ 10,864 Other cost: Interest cost 5,983 7,518 20,502 22,682 Expected return on plan assets (4,533 ) (4,472 ) (14,125 ) (13,416 ) Recognized net actuarial loss 2,342 2,008 6,916 5,952 Total other components of the net periodic benefit cost 3,792 5,054 13,293 15,218 Partial settlement and curtailment loss 15,001 — 15,001 — Loss on plan termination 35,201 — 35,201 — Net periodic benefit cost $ 57,290 $ 8,492 $ 74,417 $ 26,082 During the three and nine months ended September 30, 2017 , the Company contributed $14.2 million and $28.6 million , respectively to its defined benefit and other post-retirement plans. These amounts are exclusive of the one-time contributions to the Hawaiian Airlines, Inc. Salaried & IAM Merged Pension Plan (the Merged Plan) and pilots' other post-retirement benefit plan, as discussed below. During the three and nine months ended September 30, 2016 , the Company contributed $15.6 million and $26.9 million , respectively to its defined benefit and other post-retirement plans. In 2016, the Hawaiian Airlines, Inc. Pension Plan for Salaried Employees (the Salaried Plan) was consolidated into the Hawaiian Airlines, Inc. Pension Plan for Employees Represented by the International Association of Machinists (IAM), which established the Merged Plan. At that time, the net liabilities of the Salaried Plan were transferred to the Merged Plan. In August 2017, the Company completed the termination of the plan by transferring the assets and liabilities to a third-party insurance company. The Company contributed a total of $18.5 million in cash to fully fund the plan and recognized a one-time financial loss of $35.2 million as an other nonoperating special item on the Company's Consolidated Statement of Operations. The Company no longer has any expected contributions to the Merged Plan due to the final settlement. In March 2017, the Company announced the ratification of a 63 -month contract amendment with its pilots as represented by the Air Line Pilots Association (ALPA). In connection with the ratification of the agreement, the parties agreed to eliminate the post-65 post-retirement medical benefit for all active pilots, and replace the benefit with a heath retirement account (HRA) managed by ALPA, which represented a curtailment and partial settlement of the pilots' other post-retirement benefit plan. In August 2017, the Company made a one-time cash payment of approximately $101.9 million to fund the HRA and settle the post-65 post-retirement medical plan obligation. The cash contributed was distributed to the trust funding the individual health retirement notional accounts of the participants. In connection with the settlement of the liability, the discount rate was updated to 3.87% . The Company recognized a one-time settlement loss of $15.0 million . The obligation recorded for the unsettled portion of this plan was $83.4 million as of September 30, 2017. The Company has expected contributions of $0.9 million to the pilots' other post-retirement benefit plan for the remainder of 2017. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Commitments As of September 30, 2017 , 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 3 2 Between 2017 and 2019 Rolls-Royce spare engines: A330-800neo spare engines 2 2 Between 2019 and 2026 Committed capital and operating expenditures include escalation amounts based on estimates. The gross committed expenditures and committed payments for those deliveries as of September 30, 2017 are detailed below: Capital Operating Total Committed (in thousands) Remaining in 2017 $ 114,916 $ 23,089 $ 138,005 2018 454,848 73,242 528,090 2019 500,811 60,228 561,039 2020 242,152 58,708 300,860 2021 170,406 56,551 226,957 Thereafter 131,834 400,430 532,264 $ 1,614,967 $ 672,248 $ 2,287,215 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 such contracts. 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 such parties' gross negligence or willful misconduct. Additionally, the lessee typically indemnifies such parties for any environmental liability that arises out of or relates to the lessee's use of the real estate leased premises. The Company believes that it is insured (subject to deductibles) for most of the tort liabilities and related indemnities described above with respect to the aircraft and real estate that it leases. The Company cannot reasonably 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 $1.0 million at September 30, 2017 and $5.0 million at December 31, 2016 . 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's operations, business or financial condition. |
Special Items
Special Items | 9 Months Ended |
Sep. 30, 2017 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Special Items | Special Items Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 (in thousands) Operating: Loss on sale of aircraft — — 4,771 — Collective bargaining charge — — 18,679 — Special items $ — $ — $ 23,450 $ — Nonoperating: Partial settlement and curtailment loss 15,001 — 15,001 — Loss on plan termination 35,201 — 35,201 — Other nonoperating special items $ 50,202 $ — $ 50,202 $ — As discussed in Note 10 , in August 2017, the Company terminated the Merged Plan and settled a portion of its pilots' other post-retirement medical plan liability. In connection with the reduction of these liabilities the Company recorded one-time Other nonoperating special charges of $35.2 million related to the Merged Plan termination and $15.0 million related to the other post-retirement medical plan partial settlement. In April 2017, the Company executed a sale leaseback transaction with an independent third party for three Boeing 767-300 aircraft. The lease terms for the three aircraft commenced in April 2017 and continues through November 2018, December 2018, and January 2019, respectively. During the nine months ended September 30, 2017 , the Company recorded a loss on sale of aircraft of $4.8 million . In February 2017, the Company reached a tentative agreement with ALPA, covering the Company's pilots. In March 2017, the Company received notice from ALPA that the agreement was ratified by ALPA's members. The agreement became effective April 1, 2017 and has a term of 63 months. The agreement includes, among other various benefits, a pay adjustment and ratification bonus computed based on previous service. During the nine months ended September 30, 2017, the Company expensed $18.7 million related to (1) a one-time payment to reduce the Company's future 401K employer contribution for certain pilot groups, which is not recoverable once paid and (2) a one-time true up of the pilot vacation accrual at the revised rates set forth in the agreement. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Non-cash investing and financing activities for the nine months ended September 30, 2017 and 2016 were as follows: Nine months ended September 30, 2017 2016 (in thousands) Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a capital lease $ — $ 6,092 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2017 | |
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 14 as Subsidiary Issuer / Guarantor) of pass-through certificates, the Company (which is also referred to in this Note 14 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. The Company's condensed consolidating financial statements are presented in the following tables: Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three months ended September 30, 2017 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 717,812 $ 1,853 $ (106 ) $ 719,559 Operating Expenses: Wages and benefits — 161,059 — — 161,059 Aircraft fuel, including taxes and delivery — 110,111 — — 110,111 Maintenance materials and repairs — 48,987 409 — 49,396 Aircraft and passenger servicing — 36,360 — — 36,360 Commissions and other selling 18 32,924 19 (31 ) 32,930 Aircraft rent — 35,090 105 — 35,195 Other rentals and landing fees — 30,989 — — 30,989 Depreciation and amortization — 27,491 956 — 28,447 Purchased services 117 24,428 206 (15 ) 24,736 Other 1,498 34,678 469 (60 ) 36,585 Total 1,633 542,117 2,164 (106 ) 545,808 Operating Income (Loss) (1,633 ) 175,695 (311 ) — 173,751 Nonoperating Income (Expense): Undistributed net income of subsidiaries 75,469 — — (75,469 ) — Other nonoperating special items — (50,202 ) — — (50,202 ) Interest expense and amortization of debt discounts and issuance costs — (7,578 ) — — (7,578 ) Other components of net periodic pension cost — (3,792 ) — — (3,792 ) Interest income 76 1,785 — — 1,861 Capitalized interest — 2,416 — — 2,416 Gains on fuel derivatives — 3,282 — — 3,282 Other, net — (100 ) — — (100 ) Total 75,545 (54,189 ) — (75,469 ) (54,113 ) Income (Loss) Before Income Taxes 73,912 121,506 (311 ) (75,469 ) 119,638 Income tax expense (benefit) (654 ) 45,726 — — 45,072 Net Income (Loss) $ 74,566 $ 75,780 $ (311 ) $ (75,469 ) $ 74,566 Comprehensive Income (Loss) $ 99,352 $ 100,566 $ (311 ) $ (100,255 ) $ 99,352 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three months ended September 30, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 670,115 $ 1,800 $ (78 ) $ 671,837 Operating Expenses: Aircraft fuel, including taxes and delivery — 94,818 — — 94,818 Wages and benefits — 136,356 — — 136,356 Aircraft rent — 32,891 — — 32,891 Maintenance materials and repairs — 51,354 458 — 51,812 Aircraft and passenger servicing — 33,971 — — 33,971 Commissions and other selling — 29,494 15 (29 ) 29,480 Depreciation and amortization — 26,496 999 — 27,495 Other rentals and landing fees — 28,926 — — 28,926 Purchased services 34 25,404 191 (15 ) 25,614 Other 1,348 29,807 444 (34 ) 31,565 Total 1,382 489,517 2,107 (78 ) 492,928 Operating Income (Loss) (1,382 ) 180,598 (307 ) — 178,909 Nonoperating Income (Expense): Undistributed net income of subsidiaries 103,211 — — (103,211 ) — Interest expense and amortization of debt discounts and issuance costs — (8,539 ) — — (8,539 ) Other components of net periodic pension cost — (5,054 ) — — (5,054 ) Interest income 71 1,042 — — 1,113 Capitalized interest — 719 — — 719 Losses on fuel derivatives — (3,601 ) — — (3,601 ) Loss on extinguishment of debt — — — — — Other, net — 612 — — 612 Total 103,282 (14,821 ) — (103,211 ) (14,750 ) Income (Loss) Before Income Taxes 101,900 165,777 (307 ) (103,211 ) 164,159 Income tax expense (benefit) (554 ) 62,259 — — 61,705 Net Income (Loss) $ 102,454 $ 103,518 $ (307 ) $ (103,211 ) $ 102,454 Comprehensive Income (Loss) $ 101,643 $ 102,707 $ (307 ) $ (102,400 ) $ 101,643 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Nine months ended September 30, 2017 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,003,961 $ 5,436 $ (318 ) $ 2,009,079 Operating Expenses: Aircraft fuel, including taxes and delivery — 316,423 — — 316,423 Wages and benefits — 466,772 — — 466,772 Aircraft rent — 102,408 475 — 102,883 Maintenance materials and repairs — 158,417 2,949 — 161,366 Aircraft and passenger servicing — 104,569 — — 104,569 Commissions and other selling 42 98,677 57 (108 ) 98,668 Depreciation and amortization — 80,927 2,860 — 83,787 Other rentals and landing fees — 86,763 — — 86,763 Purchased services 400 78,428 645 (45 ) 79,428 Special items — 23,450 — — 23,450 Other 3,958 96,132 1,451 (165 ) 101,376 Total 4,400 1,612,966 8,437 (318 ) 1,625,485 Operating Income (Loss) (4,400 ) 390,995 (3,001 ) — 383,594 Nonoperating Income (Expense): Undistributed net income of subsidiaries 193,581 — — (193,581 ) — Other nonoperating special items — (50,202 ) — — (50,202 ) Interest expense and amortization of debt discounts and issuance costs — (23,292 ) — — (23,292 ) Other components of net periodic pension cost — (13,293 ) — — (13,293 ) Interest income 216 4,264 — — 4,480 Capitalized interest — 6,258 — — 6,258 Losses on fuel derivatives — (10,228 ) — — (10,228 ) Loss on extinguishment of debt — — — — — Other, net — 3,161 — — 3,161 Total 193,797 (83,332 ) — (193,581 ) (83,116 ) Income (Loss) Before Income Taxes 189,397 307,663 (3,001 ) (193,581 ) 300,478 Income tax expense (benefit) (2,514 ) 111,081 — — 108,567 Net Income (Loss) $ 191,911 $ 196,582 $ (3,001 ) $ (193,581 ) $ 191,911 Comprehensive Income (Loss) $ 213,837 $ 218,508 $ (3,001 ) $ (215,507 ) $ 213,837 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Nine months ended September 30, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 1,813,410 $ 4,478 $ (281 ) $ 1,817,607 Operating Expenses: Aircraft fuel, including taxes and delivery — 248,516 — — 248,516 Wages and benefits — 395,718 — — 395,718 Aircraft rent — 92,345 — — 92,345 Maintenance materials and repairs — 164,395 2,506 — 166,901 Aircraft and passenger servicing — 93,245 — — 93,245 Commissions and other selling 1 93,983 52 (100 ) 93,936 Depreciation and amortization — 79,136 2,493 — 81,629 Other rentals and landing fees — 78,338 — — 78,338 Purchased services 121 72,363 450 (45 ) 72,889 Other 4,135 89,381 899 (136 ) 94,279 Total 4,257 1,407,420 6,400 (281 ) 1,417,796 Operating Income (Loss) (4,257 ) 405,990 (1,922 ) — 399,811 Nonoperating Income (Expense): Undistributed net income of subsidiaries 235,353 — — (235,353 ) — Interest expense and amortization of debt discounts and issuance costs 117 (28,570 ) — — (28,453 ) Other components of net periodic pension cost — (15,218 ) — — (15,218 ) Interest income 195 2,849 — — 3,044 Capitalized interest — 1,407 — — 1,407 Gains on fuel derivatives — 15,421 — — 15,421 Loss on extinguishment of debt — (9,993 ) — — (9,993 ) Other, net — 9,884 — — 9,884 Total 235,665 (24,220 ) — (235,353 ) (23,908 ) Income (Loss) Before Income Taxes 231,408 381,770 (1,922 ) (235,353 ) 375,903 Income tax expense (benefit) (2,082 ) 144,495 — — 142,413 Net Income (Loss) $ 233,490 $ 237,275 $ (1,922 ) $ (235,353 ) $ 233,490 Comprehensive Income (Loss) $ 220,209 $ 223,994 $ (1,922 ) $ (222,072 ) $ 220,209 Condensed Consolidating Balance Sheets September 30, 2017 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 63,745 $ 279,055 $ 5,249 $ — $ 348,049 Restricted cash — 1,000 — — 1,000 Short-term investments — 270,697 — — 270,697 Accounts receivable, net 29 117,103 1,687 (197 ) 118,622 Spare parts and supplies, net — 26,560 — — 26,560 Prepaid expenses and other 145 56,409 229 — 56,783 Total 63,919 750,824 7,165 (197 ) 821,711 Property and equipment at cost — 2,214,015 73,895 — 2,287,910 Less accumulated depreciation and amortization — (523,089 ) (10,875 ) — (533,964 ) Property and equipment, net — 1,690,926 63,020 — 1,753,946 Long-term prepayments and other — 124,874 52 — 124,926 Deferred tax assets, net 31,271 — — (31,271 ) — Goodwill and other intangible assets, net — 120,839 1,271 — 122,110 Intercompany receivable — 342,113 — (342,113 ) — Investment in consolidated subsidiaries 1,077,365 — — (1,077,365 ) — TOTAL ASSETS $ 1,172,555 $ 3,029,576 $ 71,508 $ (1,450,946 ) $ 2,822,693 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 703 $ 117,454 $ 850 $ (197 ) $ 118,810 Air traffic liability — 569,638 3,735 — 573,373 Other accrued liabilities 131 157,383 246 — 157,760 Current maturities of long-term debt, less discount, and capital lease obligations — 58,585 — — 58,585 Total 834 903,060 4,831 (197 ) 908,528 Long-term debt and capital lease obligations — 447,533 — — 447,533 Intercompany payable 330,930 — 11,183 (342,113 ) — Other liabilities and deferred credits: =sum(C32:I32) Accumulated pension and other post-retirement benefit obligations — 234,206 — — 234,206 Other liabilities and deferred credits — 171,937 855 — 172,792 Deferred tax liabilities, net — 250,114 — (31,271 ) 218,843 Total — 656,257 855 (31,271 ) 625,841 Shareholders’ equity 840,791 1,022,726 54,639 (1,077,365 ) 840,791 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,172,555 $ 3,029,576 $ 71,508 $ (1,450,946 ) $ 2,822,693 Condensed Consolidating Balance Sheets December 31, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 67,629 $ 249,985 $ 8,377 $ — $ 325,991 Restricted cash — 5,000 — — 5,000 Short-term investments — 284,075 — — 284,075 Accounts receivable, net 28 94,852 1,392 (205 ) 96,067 Spare parts and supplies, net — 20,363 — — 20,363 Prepaid expenses and other 29 66,665 46 — 66,740 Total 67,686 720,940 9,815 (205 ) 798,236 Property and equipment at cost — 2,038,931 69,867 — 2,108,798 Less accumulated depreciation and amortization — (445,868 ) (8,363 ) — (454,231 ) Property and equipment, net — 1,593,063 61,504 — 1,654,567 Long-term prepayments and other — 132,724 — — 132,724 Deferred tax assets, net 28,757 — — (28,757 ) — Goodwill and other intangible assets, net — 121,456 1,618 — 123,074 Intercompany receivable — 277,732 — (277,732 ) — Investment in consolidated subsidiaries 855,289 — — (855,289 ) — TOTAL ASSETS $ 951,732 $ 2,845,915 $ 72,937 $ (1,161,983 ) $ 2,708,601 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 492 $ 114,935 $ 1,285 $ (205 ) $ 116,507 Air traffic liability — 478,109 4,387 — 482,496 Other accrued liabilities 4,088 167,864 262 — 172,214 Current maturities of long-term debt, less discount, and capital lease obligations — 58,899 — — 58,899 Total 4,580 819,807 5,934 (205 ) 830,116 Long-term debt and capital lease obligations — 497,908 — — 497,908 Intercompany payable 266,699 — 11,033 (277,732 ) — Other liabilities and deferred credits: 0 Accumulated pension and other post-retirement benefit obligations — 355,968 — — 355,968 Other liabilities and deferred credits — 172,783 830 — 173,613 Deferred tax liabilities, net — 199,300 — (28,757 ) 170,543 Total — 728,051 830 (28,757 ) 700,124 Shareholders’ equity 680,453 800,149 55,140 (855,289 ) 680,453 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 951,732 $ 2,845,915 $ 72,937 $ (1,161,983 ) $ 2,708,601 Condensed Consolidating Statements of Cash Flows Nine months ended September 30, 2017 Parent Issuer / Subsidiary Non- Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities $ (3,491 ) $ 300,820 $ (1,852 ) $ — $ 295,477 Cash Flows From Investing Activities: Net payments to affiliates (2,500 ) (52,507 ) — 55,007 — Additions to property and equipment, including pre-delivery deposits — (208,759 ) (3,776 ) — (212,535 ) Proceeds from disposition of property and equipment — 33,511 — — 33,511 Purchases of investments — (171,485 ) — — (171,485 ) Sales of investments — 183,930 — — 183,930 Net cash used in investing activities (2,500 ) (215,310 ) (3,776 ) 55,007 (166,579 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (52,463 ) — — (52,463 ) Net payments from affiliates 52,507 — 2,500 (55,007 ) — Repurchases of common stock (50,486 ) — — — (50,486 ) Other 86 (7,977 ) — — (7,891 ) Net cash provided by (used in) financing activities 2,107 (60,440 ) 2,500 (55,007 ) (110,840 ) Net increase (decrease) in cash and cash equivalents (3,884 ) 25,070 (3,128 ) — 18,058 Cash, cash equivalents, & restricted cash - Beginning of Period 67,629 254,985 8,377 — 330,991 Cash, cash equivalents, & restricted cash - End of Period $ 63,745 $ 280,055 $ 5,249 $ — $ 349,049 Condensed Consolidating Statements of Cash Flows Nine months ended September 30, 2016 Parent Issuer / Subsidiary Non- Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities $ (4,036 ) $ 438,596 $ 362 $ — $ 434,922 Cash Flows From Investing Activities: Net payments to affiliates — (27,796 ) — 27,796 — Additions to property and equipment, including pre-delivery deposits — (92,185 ) (12,065 ) — (104,250 ) Proceeds from purchase assignment and leaseback transaction — 31,851 — — 31,851 Purchases of investments — (217,964 ) — — (217,964 ) Sales of investments — 208,075 — — 208,075 Net cash used in investing activities — (98,019 ) (12,065 ) 27,796 (82,288 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (205,532 ) — — (205,532 ) Repurchase of convertible notes (1,426 ) — — — (1,426 ) Net payments from affiliates 16,763 — 11,033 (27,796 ) — Repurchases of Common Stock (13,763 ) — — — (13,763 ) Other 423 (8,125 ) — — (7,702 ) Net cash provided by (used in) financing activities 1,997 (213,657 ) 11,033 (27,796 ) (228,423 ) Net increase (decrease) in cash and cash equivalents (2,039 ) 126,920 (670 ) — 124,211 Cash, cash equivalents, & restricted cash - Beginning of Period 69,420 208,406 8,676 — 286,502 Cash, cash equivalents, & restricted cash - End of Period $ 67,381 $ 335,326 $ 8,006 $ — $ 410,713 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 Polici22
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements; Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, requiring an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. ASU 2017-07 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption only permitted in the first quarter of 2017. The Company early adopted this standard during the first quarter of 2017. The adoption of ASU 2017-07 resulted in a reclassification of $5.1 million and $15.2 million from wages and benefits to other components of net periodic benefit cost on the Company's consolidated statement of operations for the three and nine months ended September 30, 2016 , respectively. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, Restricted Cash, requiring restricted cash and restricted cash equivalents to be included with cash and cash equivalents on the statement of cash flows when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company early adopted this standard during the first quarter of 2017. Restricted cash is now included as a component of cash, cash equivalents, and restricted cash on the Company's condensed consolidated statement of cash flows. The inclusion of restricted cash increased the beginning and ending balances of the condensed consolidated statement of cash flows by $5.0 million for the nine months ended September 30, 2016 . In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, requiring all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. ASU 2016-09 will also allow an employer to withhold more shares for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016. The Company adopted this standard during the first quarter of 2017. The primary impact of the adoption of the standard on the Company's consolidated financial statements was the recognition of excess tax benefits in the provision for income taxes rather than additional paid-in capital, which reduced income tax expense by $0.3 million and $5.8 million for the three and nine months ended September 30, 2017 , respectively. The Company also reclassified $17.6 million of excess tax benefits for share-based payments in the cash flow statement from financing activities to operating activities for the nine months ended September 30, 2016 . Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging, which better aligns a company's risk management activities and financial reporting for hedging relationships and is intended to simplify hedge accounting requirements. ASU 2017-12 is effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the components and options within ASU 2017-12. In February 2016, the FASB issued ASU 2016-02, Leases, 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 evaluating the impact the adoption of this standard will have on its consolidated financial statements and believes this ASU will have a significant impact on its consolidated balance sheet but does not expect that the ASU will have a material impact on the Company's results of operations or cash flows. The effect of adopting the new standard will be to record right-of-use assets and operating lease obligations for current operating leases on the Company's balance sheet. See Note 9 which discusses our lease obligations as of September 30, 2017 . In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, and created a new topic (ASC 606), 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. ASC 606 will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASC 606 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company will elect to adopt the full retrospective transition method as of January 1, 2018, resulting in the restatement of certain prior periods on the date of adoption. The Company is completing its overall analysis for the provisions of ASC 606 specific to its consolidated financial statements and related disclosures. The Company is also designing and implementing controls and systems in anticipation of the adoption of the standard, effective January 1, 2018 which will have a material impact on its consolidated financial statements. The overall expected decrease in equity as of January 1, 2016 is expected to be up to $125 million net of tax, with an offsetting change primarily in Other liabilities and deferred credits. The corresponding annual income statement effect is expected to be a decrease of approximately 1% of total revenue. While the Company continues to assess all potential impacts of this new standard, it currently believes the most significant impact relates to the accounting for the Company's frequent flyer travel award program. This change as well as other less significant changes, is briefly described below: • Frequent flyer - The standard will require the Company to account for miles earned by passengers in the HawaiianMiles program through flight activity as a component of the passenger revenue ticket transaction at the estimated selling price of the miles (effectively eliminating the incremental cost accounting currently applied). Under ASC 606, ticket consideration received is allocated between the performance obligations, primarily travel and miles earned by passengers. The allocated value of the miles will be deferred until the free travel or other award is used by the passenger, at which time it will be included in passenger revenues. ASC 606 will result in a significant increase to the deferred revenue liability on the Company's balance sheet, as the estimated selling price of the miles significantly exceeds the value previously recorded for incremental cost. • Passenger revenue - Currently, passenger revenue is recognized either when the transportation is provided or when tickets expire unused. However, after the application of ASC 606, passenger revenue associated with unused tickets, which represent unexercised passenger rights, is expected to be recognized in proportion to the pattern of rights exercised by related passengers (e.g. scheduled departure dates). This will have the effect of accelerating the recognition of revenue and reducing the recorded balance in air traffic liability as compared to the current policy. • Other operating revenue - Other operating revenue includes checked baggage revenue, cargo revenue, ticket change and cancellation fees, charter revenue, ground handling fees, commissions and fees earned under certain joint marketing agreements with other companies, inflight revenue, and other incidental sales. Ticket change and cancellation fees are currently recognized at the time the fees are assessed. The Company expects to defer the recognition of ticket change fees as a component of air traffic liability until the related transportation is provided. Certain amounts currently classified in other revenue (e.g. bag and other ancillary fees) will be reclassified to passenger revenue. • Selling Costs - Certain selling costs to issue passenger tickets (e.g. credit card and booking fees) are currently recognized when incurred. Consistent with the Company’s current accounting for commissions, under ASC 606 the Company will capitalize selling costs associated with credit card and booking fees and recognize the associated expense at the ticketed flight date. The adoption of the standard will require the implementation of new accounting processes and systems, which will change the Company's internal control over revenue recognition. Other items could be identified that will impact amounts ultimately recorded. |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Reclassifications by component | Reclassifications out of accumulated other comprehensive income (loss) by component are as follows: Details about accumulated other comprehensive (income) loss components Three months ended September 30, Nine months ended September 30, Affected line items in the statement where net income is presented 2017 2016 2017 2016 (in thousands) Derivatives designated as hedging instruments under ASC 815 Foreign currency derivative losses (gains) $ (449 ) $ 1,842 $ (2,141 ) $ (1,679 ) Passenger revenue Interest rate derivative losses, net — — — 944 Interest expense Total before tax (449 ) 1,842 (2,141 ) (735 ) Tax expense (benefit) 170 (701 ) 811 272 Total, net of tax $ (279 ) $ 1,141 $ (1,330 ) $ (463 ) Amortization of defined benefit plan items Actuarial loss $ 2,277 $ 1,950 $ 6,733 $ 5,780 Other components of net periodic benefit cost Prior service cost 65 57 185 171 Other components of net periodic benefit cost Partial settlement and curtailment loss 15,001 — 15,001 — Other nonoperating special items Loss on plan termination 35,201 — 35,201 — Other nonoperating special items Total before tax 52,544 2,007 57,120 5,951 Tax benefit (19,883 ) (714 ) (21,648 ) (2,207 ) Total, net of tax $ 32,661 $ 1,293 $ 35,472 $ 3,744 Short-term investments Realized gain on sales of investments, net $ (6 ) $ (129 ) $ (26 ) $ (189 ) Other nonoperating income Total before tax (6 ) (129 ) (26 ) (189 ) Tax expense 2 49 10 69 Total, net of tax $ (4 ) $ (80 ) $ (16 ) $ (120 ) Total reclassifications for the period $ 32,378 $ 2,354 $ 34,126 $ 3,161 |
Schedule of amounts included in accumulated other comprehensive income (loss), net of taxes | A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes, for the three and nine months ended September 30, 2017 and 2016 is as follows: Three months ended September 30, 2017 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Short-Term Investments Total (in thousands) Beginning balance $ — $ 1,235 $ (107,344 ) $ (244 ) $ (106,353 ) Other comprehensive income (loss) before reclassifications, net of tax — (47 ) (7,619 ) 74 (7,592 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — (279 ) 32,661 (4 ) 32,378 Net current-period other comprehensive income (loss) — (326 ) 25,042 70 24,786 Ending balance $ — $ 909 $ (82,302 ) $ (174 ) $ (81,567 ) Three months ended September 30, 2016 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Plan Items Short-Term Investments Total (in thousands) Beginning balance $ — $ (10,348 ) $ (101,710 ) $ 311 $ (111,747 ) Other comprehensive loss before reclassifications, net of tax — (2,999 ) — (166 ) (3,165 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — 1,141 1,293 (80 ) 2,354 Net current-period other comprehensive income (loss) — (1,858 ) 1,293 (246 ) (811 ) Ending balance $ — $ (12,206 ) $ (100,417 ) $ 65 $ (112,558 ) Nine months ended September 30, 2017 Interest Rate Derivatives Foreign Currency Derivatives Defined Benefit Pension Items Short-Term Investments Total (in thousands) Beginning balance $ — $ 7,071 $ (110,202 ) $ (362 ) $ (103,493 ) Other comprehensive income (loss) before reclassifications, net of tax — (4,832 ) (7,572 ) 204 (12,200 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — (1,330 ) 35,472 (16 ) 34,126 Net current-period other comprehensive income (loss) — (6,162 ) 27,900 188 21,926 Ending balance $ — $ 909 $ (82,302 ) $ (174 ) $ (81,567 ) Nine months ended September 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 ) (16,035 ) (296 ) 557 (16,442 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 587 (1,050 ) 3,744 (120 ) 3,161 Net current-period other comprehensive income (loss) (81 ) (17,085 ) 3,448 437 (13,281 ) Ending balance $ — $ (12,206 ) $ (100,417 ) $ 65 $ (112,558 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share basic and diluted | Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands, except for per share data) Numerator: Net Income $ 74,566 $ 102,454 $ 191,911 $ 233,490 Denominator: Weighted average common stock shares outstanding - Basic 53,185 53,427 53,456 53,488 Assumed exercise of stock options and awards 324 161 343 219 Assumed conversion of convertible note premium — — — 8 Weighted average common stock shares outstanding - Diluted 53,509 53,588 53,799 53,715 Net Income Per Share Basic $ 1.40 $ 1.92 $ 3.59 $ 4.37 Diluted $ 1.39 $ 1.91 $ 3.57 $ 4.35 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of short-term investments | The following is a summary of short-term investments held as of September 30, 2017 and December 31, 2016 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2017 (in thousands) Corporate debt $ 167,407 $ 67 $ (170 ) $ 167,304 U.S. government and agency debt 50,515 1 (131 ) 50,385 Municipal bonds 19,839 27 (30 ) 19,836 Other fixed income securities 33,172 1 (1 ) 33,172 Total short-term investments $ 270,933 $ 96 $ (332 ) $ 270,697 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2016 (in thousands) Corporate debt $ 171,139 $ 84 $ (357 ) $ 170,866 U.S. government and agency debt 53,916 8 (134 ) 53,790 Municipal bonds 22,893 1 (144 ) 22,750 Other fixed income securities 36,670 — (1 ) 36,669 Total short-term investments $ 284,618 $ 93 $ (636 ) $ 284,075 |
Schedule of contractual maturities of short-term investments | Contractual maturities of short-term investments as of September 30, 2017 are shown below. Under 1 Year 1 to 5 Years Total (in thousands) Corporate debt $ 72,879 $ 94,425 $ 167,304 U.S. government and agency debt 34,320 16,065 50,385 Municipal bonds 6,942 12,894 19,836 Other fixed income securities 24,535 8,637 33,172 Total short-term investments $ 138,676 $ 132,021 $ 270,697 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value on a recurring basis | The tables below present the Company’s financial assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements as of September 30, 2017 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 198,018 $ 171,936 $ 26,082 $ — Restricted cash 1,000 1,000 — — Short-term investments 270,697 — 270,697 — Fuel derivative contracts: Crude oil call options 8,184 — 8,184 — Jet fuel swaps 566 — 566 — Foreign currency derivatives 4,721 — 4,721 — Total assets measured at fair value $ 483,186 $ 172,936 $ 310,250 $ — Fuel derivative contracts: Jet fuel swaps $ 21 $ — $ 21 $ — Foreign currency derivatives 2,612 — 2,612 — Total liabilities measured at fair value $ 2,633 $ — $ 2,633 $ — Fair Value Measurements as of December 31, 2016 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 123,120 $ 104,113 $ 19,007 $ — Restricted cash 5,000 5,000 — — Short-term investments 284,075 — 284,075 — Fuel derivative contracts: Crude oil call options 8,489 — 8,489 — Heating oil swaps 6,601 — 6,601 — Foreign currency derivatives 12,906 — 12,906 — Total assets measured at fair value $ 440,191 $ 109,113 $ 331,078 $ — Foreign currency derivatives 1,469 — 1,469 — Total liabilities measured at fair value $ 1,469 $ — $ 1,469 $ — |
Schedule of debt (excluding obligations under capital leases) measured at fair value | The table below presents the Company’s debt (excluding obligations under capital leases) measured at fair value: Fair Value of Debt September 30, 2017 December 31, 2016 Carrying Fair Value Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Amount Total Level 1 Level 2 Level 3 (in thousands) $ 438,843 $ 449,761 $ — $ — $ 449,761 $ 481,874 $ 484,734 $ — $ — $ 484,734 |
Financial Derivative Instrume27
Financial Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 Company's unaudited Consolidated Statements of Operations. Three months ended September 30, Nine months ended September 30, Fuel derivative contracts 2017 2016 2017 2016 (in thousands) Losses realized at settlement $ (2,787 ) $ (2,525 ) $ (2,100 ) $ (30,349 ) Reversal of prior period unrealized amounts 6,251 (7,115 ) (7,946 ) 39,731 Unrealized gains (losses) that will settle in future periods (182 ) 6,039 (182 ) 6,039 Gains (losses) on fuel derivatives recorded as Nonoperating income (expense) $ 3,282 $ (3,601 ) $ (10,228 ) $ 15,421 |
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 Company's unaudited Consolidated Balance Sheets. Derivative position as of September 30, 2017 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives designated as hedges Foreign currency derivatives Prepaid expenses and other 15,704,725 Japanese Yen September 2018 3,594 (2,340 ) 1,254 Long-term prepayments and other 4,812,000 Japanese Yen September 2019 952 (242 ) 710 Derivatives not designated as hedges Foreign currency derivatives Prepaid expenses and other 924,350 Japanese Yen December 2017 175 (30 ) 145 Fuel derivative contracts Prepaid expenses and other 94,332 gallons September 2018 8,750 (21 ) 8,729 Derivative position as of December 31, 2016 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives designated as hedges Foreign currency derivatives Prepaid expenses and other 16,121,500 Japanese Yen December 2017 9,803 (1,349 ) 8,454 Long-term prepayments and other 4,371,900 Japanese Yen December 2018 2,632 (59 ) 2,573 Derivatives not designated as hedges Foreign currency derivatives Prepaid expenses and other 879,050 Japanese Yen March 2017 471 (61 ) 410 Fuel derivative contracts Prepaid expenses and other 17,850 gallons December 2017 15,090 — 15,090 |
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 Company's unaudited Consolidated Statements of Comprehensive Income. (Gain) loss recognized in AOCI on derivatives (effective portion) (Gain) loss reclassified from AOCI (Gain) loss recognized in Three months ended September 30, Three months ended September 30, Three months ended September 30, 2017 2016 2017 2016 2017 2016 (in thousands) Foreign currency derivatives $ 75 $ 4,841 $ (449 ) $ 1,842 $ — $ — Interest rate derivatives — — — — — — (Gain) loss recognized in AOCI on derivatives (effective portion) (Gain) loss reclassified from AOCI (Gain) loss recognized in Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 2017 2016 (in thousands) Foreign currency derivatives $ 7,780 $ 24,996 $ (2,141 ) $ (1,679 ) $ — $ — Interest rate derivatives — 923 — 944 — — |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of expected maturities of long-term debt | As of September 30, 2017 , the expected maturities of long-term debt for the remainder of 2017 and the next four years, and thereafter, were as follows (in thousands): Remaining months in 2017 $ 5,771 2018 48,244 2019 72,927 2020 21,413 2021 49,060 Thereafter 241,428 $ 438,843 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Leases [Abstract] | |
Schedule of operating leases | As of September 30, 2017 , 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 2017 $ 31,984 $ 1,643 2018 127,235 7,311 2019 118,070 6,939 2020 97,717 6,690 2021 64,730 6,768 Thereafter 222,227 107,760 $ 661,963 $ 137,111 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic benefit cost | The components of net periodic benefit cost for the Company’s defined benefit and other post-retirement plans included the following: Three months ended September 30, Nine months ended September 30, Components of Net Period Benefit Cost 2017 2016 2017 2016 (in thousands) Service cost $ 3,296 $ 3,438 $ 10,922 $ 10,864 Other cost: Interest cost 5,983 7,518 20,502 22,682 Expected return on plan assets (4,533 ) (4,472 ) (14,125 ) (13,416 ) Recognized net actuarial loss 2,342 2,008 6,916 5,952 Total other components of the net periodic benefit cost 3,792 5,054 13,293 15,218 Partial settlement and curtailment loss 15,001 — 15,001 — Loss on plan termination 35,201 — 35,201 — Net periodic benefit cost $ 57,290 $ 8,492 $ 74,417 $ 26,082 |
Commitments and Contingent Li31
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of firm aircraft and engine orders | As of September 30, 2017 , 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 3 2 Between 2017 and 2019 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 payments for those deliveries as of September 30, 2017 are detailed below: Capital Operating Total Committed (in thousands) Remaining in 2017 $ 114,916 $ 23,089 $ 138,005 2018 454,848 73,242 528,090 2019 500,811 60,228 561,039 2020 242,152 58,708 300,860 2021 170,406 56,551 226,957 Thereafter 131,834 400,430 532,264 $ 1,614,967 $ 672,248 $ 2,287,215 |
Special Items (Tables)
Special Items (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Summary of Special Items | Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 (in thousands) Operating: Loss on sale of aircraft — — 4,771 — Collective bargaining charge — — 18,679 — Special items $ — $ — $ 23,450 $ — Nonoperating: Partial settlement and curtailment loss 15,001 — 15,001 — Loss on plan termination 35,201 — 35,201 — Other nonoperating special items $ 50,202 $ — $ 50,202 $ — |
Supplemental Cash Flow Inform33
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of non-cash investing and financing activities | Non-cash investing and financing activities for the nine months ended September 30, 2017 and 2016 were as follows: Nine months ended September 30, 2017 2016 (in thousands) Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a capital lease $ — $ 6,092 |
Condensed Consolidating Finan34
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 717,812 $ 1,853 $ (106 ) $ 719,559 Operating Expenses: Wages and benefits — 161,059 — — 161,059 Aircraft fuel, including taxes and delivery — 110,111 — — 110,111 Maintenance materials and repairs — 48,987 409 — 49,396 Aircraft and passenger servicing — 36,360 — — 36,360 Commissions and other selling 18 32,924 19 (31 ) 32,930 Aircraft rent — 35,090 105 — 35,195 Other rentals and landing fees — 30,989 — — 30,989 Depreciation and amortization — 27,491 956 — 28,447 Purchased services 117 24,428 206 (15 ) 24,736 Other 1,498 34,678 469 (60 ) 36,585 Total 1,633 542,117 2,164 (106 ) 545,808 Operating Income (Loss) (1,633 ) 175,695 (311 ) — 173,751 Nonoperating Income (Expense): Undistributed net income of subsidiaries 75,469 — — (75,469 ) — Other nonoperating special items — (50,202 ) — — (50,202 ) Interest expense and amortization of debt discounts and issuance costs — (7,578 ) — — (7,578 ) Other components of net periodic pension cost — (3,792 ) — — (3,792 ) Interest income 76 1,785 — — 1,861 Capitalized interest — 2,416 — — 2,416 Gains on fuel derivatives — 3,282 — — 3,282 Other, net — (100 ) — — (100 ) Total 75,545 (54,189 ) — (75,469 ) (54,113 ) Income (Loss) Before Income Taxes 73,912 121,506 (311 ) (75,469 ) 119,638 Income tax expense (benefit) (654 ) 45,726 — — 45,072 Net Income (Loss) $ 74,566 $ 75,780 $ (311 ) $ (75,469 ) $ 74,566 Comprehensive Income (Loss) $ 99,352 $ 100,566 $ (311 ) $ (100,255 ) $ 99,352 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three months ended September 30, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 670,115 $ 1,800 $ (78 ) $ 671,837 Operating Expenses: Aircraft fuel, including taxes and delivery — 94,818 — — 94,818 Wages and benefits — 136,356 — — 136,356 Aircraft rent — 32,891 — — 32,891 Maintenance materials and repairs — 51,354 458 — 51,812 Aircraft and passenger servicing — 33,971 — — 33,971 Commissions and other selling — 29,494 15 (29 ) 29,480 Depreciation and amortization — 26,496 999 — 27,495 Other rentals and landing fees — 28,926 — — 28,926 Purchased services 34 25,404 191 (15 ) 25,614 Other 1,348 29,807 444 (34 ) 31,565 Total 1,382 489,517 2,107 (78 ) 492,928 Operating Income (Loss) (1,382 ) 180,598 (307 ) — 178,909 Nonoperating Income (Expense): Undistributed net income of subsidiaries 103,211 — — (103,211 ) — Interest expense and amortization of debt discounts and issuance costs — (8,539 ) — — (8,539 ) Other components of net periodic pension cost — (5,054 ) — — (5,054 ) Interest income 71 1,042 — — 1,113 Capitalized interest — 719 — — 719 Losses on fuel derivatives — (3,601 ) — — (3,601 ) Loss on extinguishment of debt — — — — — Other, net — 612 — — 612 Total 103,282 (14,821 ) — (103,211 ) (14,750 ) Income (Loss) Before Income Taxes 101,900 165,777 (307 ) (103,211 ) 164,159 Income tax expense (benefit) (554 ) 62,259 — — 61,705 Net Income (Loss) $ 102,454 $ 103,518 $ (307 ) $ (103,211 ) $ 102,454 Comprehensive Income (Loss) $ 101,643 $ 102,707 $ (307 ) $ (102,400 ) $ 101,643 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Nine months ended September 30, 2017 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,003,961 $ 5,436 $ (318 ) $ 2,009,079 Operating Expenses: Aircraft fuel, including taxes and delivery — 316,423 — — 316,423 Wages and benefits — 466,772 — — 466,772 Aircraft rent — 102,408 475 — 102,883 Maintenance materials and repairs — 158,417 2,949 — 161,366 Aircraft and passenger servicing — 104,569 — — 104,569 Commissions and other selling 42 98,677 57 (108 ) 98,668 Depreciation and amortization — 80,927 2,860 — 83,787 Other rentals and landing fees — 86,763 — — 86,763 Purchased services 400 78,428 645 (45 ) 79,428 Special items — 23,450 — — 23,450 Other 3,958 96,132 1,451 (165 ) 101,376 Total 4,400 1,612,966 8,437 (318 ) 1,625,485 Operating Income (Loss) (4,400 ) 390,995 (3,001 ) — 383,594 Nonoperating Income (Expense): Undistributed net income of subsidiaries 193,581 — — (193,581 ) — Other nonoperating special items — (50,202 ) — — (50,202 ) Interest expense and amortization of debt discounts and issuance costs — (23,292 ) — — (23,292 ) Other components of net periodic pension cost — (13,293 ) — — (13,293 ) Interest income 216 4,264 — — 4,480 Capitalized interest — 6,258 — — 6,258 Losses on fuel derivatives — (10,228 ) — — (10,228 ) Loss on extinguishment of debt — — — — — Other, net — 3,161 — — 3,161 Total 193,797 (83,332 ) — (193,581 ) (83,116 ) Income (Loss) Before Income Taxes 189,397 307,663 (3,001 ) (193,581 ) 300,478 Income tax expense (benefit) (2,514 ) 111,081 — — 108,567 Net Income (Loss) $ 191,911 $ 196,582 $ (3,001 ) $ (193,581 ) $ 191,911 Comprehensive Income (Loss) $ 213,837 $ 218,508 $ (3,001 ) $ (215,507 ) $ 213,837 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Nine months ended September 30, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 1,813,410 $ 4,478 $ (281 ) $ 1,817,607 Operating Expenses: Aircraft fuel, including taxes and delivery — 248,516 — — 248,516 Wages and benefits — 395,718 — — 395,718 Aircraft rent — 92,345 — — 92,345 Maintenance materials and repairs — 164,395 2,506 — 166,901 Aircraft and passenger servicing — 93,245 — — 93,245 Commissions and other selling 1 93,983 52 (100 ) 93,936 Depreciation and amortization — 79,136 2,493 — 81,629 Other rentals and landing fees — 78,338 — — 78,338 Purchased services 121 72,363 450 (45 ) 72,889 Other 4,135 89,381 899 (136 ) 94,279 Total 4,257 1,407,420 6,400 (281 ) 1,417,796 Operating Income (Loss) (4,257 ) 405,990 (1,922 ) — 399,811 Nonoperating Income (Expense): Undistributed net income of subsidiaries 235,353 — — (235,353 ) — Interest expense and amortization of debt discounts and issuance costs 117 (28,570 ) — — (28,453 ) Other components of net periodic pension cost — (15,218 ) — — (15,218 ) Interest income 195 2,849 — — 3,044 Capitalized interest — 1,407 — — 1,407 Gains on fuel derivatives — 15,421 — — 15,421 Loss on extinguishment of debt — (9,993 ) — — (9,993 ) Other, net — 9,884 — — 9,884 Total 235,665 (24,220 ) — (235,353 ) (23,908 ) Income (Loss) Before Income Taxes 231,408 381,770 (1,922 ) (235,353 ) 375,903 Income tax expense (benefit) (2,082 ) 144,495 — — 142,413 Net Income (Loss) $ 233,490 $ 237,275 $ (1,922 ) $ (235,353 ) $ 233,490 Comprehensive Income (Loss) $ 220,209 $ 223,994 $ (1,922 ) $ (222,072 ) $ 220,209 |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets September 30, 2017 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 63,745 $ 279,055 $ 5,249 $ — $ 348,049 Restricted cash — 1,000 — — 1,000 Short-term investments — 270,697 — — 270,697 Accounts receivable, net 29 117,103 1,687 (197 ) 118,622 Spare parts and supplies, net — 26,560 — — 26,560 Prepaid expenses and other 145 56,409 229 — 56,783 Total 63,919 750,824 7,165 (197 ) 821,711 Property and equipment at cost — 2,214,015 73,895 — 2,287,910 Less accumulated depreciation and amortization — (523,089 ) (10,875 ) — (533,964 ) Property and equipment, net — 1,690,926 63,020 — 1,753,946 Long-term prepayments and other — 124,874 52 — 124,926 Deferred tax assets, net 31,271 — — (31,271 ) — Goodwill and other intangible assets, net — 120,839 1,271 — 122,110 Intercompany receivable — 342,113 — (342,113 ) — Investment in consolidated subsidiaries 1,077,365 — — (1,077,365 ) — TOTAL ASSETS $ 1,172,555 $ 3,029,576 $ 71,508 $ (1,450,946 ) $ 2,822,693 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 703 $ 117,454 $ 850 $ (197 ) $ 118,810 Air traffic liability — 569,638 3,735 — 573,373 Other accrued liabilities 131 157,383 246 — 157,760 Current maturities of long-term debt, less discount, and capital lease obligations — 58,585 — — 58,585 Total 834 903,060 4,831 (197 ) 908,528 Long-term debt and capital lease obligations — 447,533 — — 447,533 Intercompany payable 330,930 — 11,183 (342,113 ) — Other liabilities and deferred credits: =sum(C32:I32) Accumulated pension and other post-retirement benefit obligations — 234,206 — — 234,206 Other liabilities and deferred credits — 171,937 855 — 172,792 Deferred tax liabilities, net — 250,114 — (31,271 ) 218,843 Total — 656,257 855 (31,271 ) 625,841 Shareholders’ equity 840,791 1,022,726 54,639 (1,077,365 ) 840,791 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,172,555 $ 3,029,576 $ 71,508 $ (1,450,946 ) $ 2,822,693 Condensed Consolidating Balance Sheets December 31, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 67,629 $ 249,985 $ 8,377 $ — $ 325,991 Restricted cash — 5,000 — — 5,000 Short-term investments — 284,075 — — 284,075 Accounts receivable, net 28 94,852 1,392 (205 ) 96,067 Spare parts and supplies, net — 20,363 — — 20,363 Prepaid expenses and other 29 66,665 46 — 66,740 Total 67,686 720,940 9,815 (205 ) 798,236 Property and equipment at cost — 2,038,931 69,867 — 2,108,798 Less accumulated depreciation and amortization — (445,868 ) (8,363 ) — (454,231 ) Property and equipment, net — 1,593,063 61,504 — 1,654,567 Long-term prepayments and other — 132,724 — — 132,724 Deferred tax assets, net 28,757 — — (28,757 ) — Goodwill and other intangible assets, net — 121,456 1,618 — 123,074 Intercompany receivable — 277,732 — (277,732 ) — Investment in consolidated subsidiaries 855,289 — — (855,289 ) — TOTAL ASSETS $ 951,732 $ 2,845,915 $ 72,937 $ (1,161,983 ) $ 2,708,601 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 492 $ 114,935 $ 1,285 $ (205 ) $ 116,507 Air traffic liability — 478,109 4,387 — 482,496 Other accrued liabilities 4,088 167,864 262 — 172,214 Current maturities of long-term debt, less discount, and capital lease obligations — 58,899 — — 58,899 Total 4,580 819,807 5,934 (205 ) 830,116 Long-term debt and capital lease obligations — 497,908 — — 497,908 Intercompany payable 266,699 — 11,033 (277,732 ) — Other liabilities and deferred credits: 0 Accumulated pension and other post-retirement benefit obligations — 355,968 — — 355,968 Other liabilities and deferred credits — 172,783 830 — 173,613 Deferred tax liabilities, net — 199,300 — (28,757 ) 170,543 Total — 728,051 830 (28,757 ) 700,124 Shareholders’ equity 680,453 800,149 55,140 (855,289 ) 680,453 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 951,732 $ 2,845,915 $ 72,937 $ (1,161,983 ) $ 2,708,601 |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Nine months ended September 30, 2017 Parent Issuer / Subsidiary Non- Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities $ (3,491 ) $ 300,820 $ (1,852 ) $ — $ 295,477 Cash Flows From Investing Activities: Net payments to affiliates (2,500 ) (52,507 ) — 55,007 — Additions to property and equipment, including pre-delivery deposits — (208,759 ) (3,776 ) — (212,535 ) Proceeds from disposition of property and equipment — 33,511 — — 33,511 Purchases of investments — (171,485 ) — — (171,485 ) Sales of investments — 183,930 — — 183,930 Net cash used in investing activities (2,500 ) (215,310 ) (3,776 ) 55,007 (166,579 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (52,463 ) — — (52,463 ) Net payments from affiliates 52,507 — 2,500 (55,007 ) — Repurchases of common stock (50,486 ) — — — (50,486 ) Other 86 (7,977 ) — — (7,891 ) Net cash provided by (used in) financing activities 2,107 (60,440 ) 2,500 (55,007 ) (110,840 ) Net increase (decrease) in cash and cash equivalents (3,884 ) 25,070 (3,128 ) — 18,058 Cash, cash equivalents, & restricted cash - Beginning of Period 67,629 254,985 8,377 — 330,991 Cash, cash equivalents, & restricted cash - End of Period $ 63,745 $ 280,055 $ 5,249 $ — $ 349,049 Condensed Consolidating Statements of Cash Flows Nine months ended September 30, 2016 Parent Issuer / Subsidiary Non- Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities $ (4,036 ) $ 438,596 $ 362 $ — $ 434,922 Cash Flows From Investing Activities: Net payments to affiliates — (27,796 ) — 27,796 — Additions to property and equipment, including pre-delivery deposits — (92,185 ) (12,065 ) — (104,250 ) Proceeds from purchase assignment and leaseback transaction — 31,851 — — 31,851 Purchases of investments — (217,964 ) — — (217,964 ) Sales of investments — 208,075 — — 208,075 Net cash used in investing activities — (98,019 ) (12,065 ) 27,796 (82,288 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (205,532 ) — — (205,532 ) Repurchase of convertible notes (1,426 ) — — — (1,426 ) Net payments from affiliates 16,763 — 11,033 (27,796 ) — Repurchases of Common Stock (13,763 ) — — — (13,763 ) Other 423 (8,125 ) — — (7,702 ) Net cash provided by (used in) financing activities 1,997 (213,657 ) 11,033 (27,796 ) (228,423 ) Net increase (decrease) in cash and cash equivalents (2,039 ) 126,920 (670 ) — 124,211 Cash, cash equivalents, & restricted cash - Beginning of Period 69,420 208,406 8,676 — 286,502 Cash, cash equivalents, & restricted cash - End of Period $ 67,381 $ 335,326 $ 8,006 $ — $ 410,713 |
Significant Accounting Polici35
Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Wages and benefits | $ 161,059,000 | $ 136,356,000 | $ 466,772,000 | $ 395,718,000 | ||
Other components of net period pension cost | 3,792,000 | 5,054,000 | 13,293,000 | 15,218,000 | ||
Reduced income tax expense | $ 300,000 | 5,800,000 | ||||
Reclassification of excess tax benefits into operating activities | 295,477,000 | 434,922,000 | ||||
Reclassification of excess tax benefits out of financing activities | $ (110,840,000) | (228,423,000) | ||||
Accounting Standards Update 2016-18 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase (decrease) to beginning and ending cash and cash equivalents | 5,000,000 | $ 5,000,000 | ||||
Accounting Standards Update 2017-07 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Wages and benefits | (5,100,000) | (15,200,000) | ||||
Other components of net period pension cost | $ 5,100,000 | 15,200,000 | ||||
Accounting Standards Update 2016-09, Excess Tax Benefit Component | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification of excess tax benefits into operating activities | 17,600,000 | |||||
Reclassification of excess tax benefits out of financing activities | $ (17,600,000) | |||||
Accounting Standards Update 2014-09 | Forecast | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Decrease of total revenues | 1.00% | |||||
Accounting Standards Update 2014-09 | Forecast | Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Impact to equity | $ 125,000,000 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amounts reclassified from AOCI | ||||
Foreign currency derivative losses (gains) | $ (634,475) | $ (591,496) | $ (1,765,275) | $ (1,592,095) |
Total before tax | (119,638) | (164,159) | (300,478) | (375,903) |
Tax expense | 45,072 | 61,705 | 108,567 | 142,413 |
Total, net of tax | (74,566) | (102,454) | (191,911) | (233,490) |
Total reclassifications for the period | 32,378 | 2,354 | 34,126 | 3,161 |
Derivatives designated as hedging instruments under ASC 815 | Foreign currency derivative losses (gains) | ||||
Amounts reclassified from AOCI | ||||
Total reclassifications for the period | (279) | 1,141 | (1,330) | (1,050) |
Derivatives designated as hedging instruments under ASC 815 | Interest rate derivative losses, net | ||||
Amounts reclassified from AOCI | ||||
Total reclassifications for the period | 0 | 0 | 0 | 587 |
Derivatives designated as hedging instruments under ASC 815 | Amount reclassified from accumulated other comprehensive income (loss) | ||||
Amounts reclassified from AOCI | ||||
Total before tax | (449) | 1,842 | (2,141) | (735) |
Tax expense | 170 | (701) | 811 | 272 |
Total, net of tax | (279) | 1,141 | (1,330) | (463) |
Derivatives designated as hedging instruments under ASC 815 | Amount reclassified from accumulated other comprehensive income (loss) | Foreign currency derivative losses (gains) | ||||
Amounts reclassified from AOCI | ||||
Foreign currency derivative losses (gains) | (449) | 1,842 | (2,141) | (1,679) |
Derivatives designated as hedging instruments under ASC 815 | Amount reclassified from accumulated other comprehensive income (loss) | Interest rate derivative losses, net | ||||
Amounts reclassified from AOCI | ||||
Interest rate derivative losses, net | 0 | 0 | 0 | 944 |
Actuarial loss | ||||
Amounts reclassified from AOCI | ||||
Amortization of defined benefit plan items | 2,277 | 1,950 | 6,733 | 5,780 |
Prior service cost | ||||
Amounts reclassified from AOCI | ||||
Amortization of defined benefit plan items | 65 | 57 | 185 | 171 |
Partial settlement and curtailment loss | ||||
Amounts reclassified from AOCI | ||||
Amortization of defined benefit plan items | 15,001 | 0 | 15,001 | 0 |
Loss on plan termination | ||||
Amounts reclassified from AOCI | ||||
Amortization of defined benefit plan items | 35,201 | 0 | 35,201 | 0 |
Defined benefit plan | ||||
Amounts reclassified from AOCI | ||||
Amortization of defined benefit plan items | 52,544 | 2,007 | 57,120 | 5,951 |
Tax benefit | (19,883) | (714) | (21,648) | (2,207) |
Total reclassifications for the period | 32,661 | 1,293 | 35,472 | 3,744 |
Short-term investments | ||||
Amounts reclassified from AOCI | ||||
Total reclassifications for the period | (4) | (80) | (16) | (120) |
Short-term investments | Amount reclassified from accumulated other comprehensive income (loss) | ||||
Amounts reclassified from AOCI | ||||
Realized gain on sales of investments, net | (6) | (129) | (26) | (189) |
Total before tax | (6) | (129) | (26) | (189) |
Tax expense | 2 | 49 | 10 | 69 |
Total, net of tax | $ (4) | $ (80) | $ (16) | $ (120) |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) - Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | $ 680,453 | |||
Other comprehensive income (loss) before reclassifications, net of tax | $ (7,592) | $ (3,165) | (12,200) | $ (16,442) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 32,378 | 2,354 | 34,126 | 3,161 |
Net current-period other comprehensive income (loss) | 24,786 | (811) | 21,926 | (13,281) |
Ending balance | 840,791 | 840,791 | ||
Accumulated net gain (loss) from cash flow hedges | Interest Rate Derivatives | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | 0 | 0 | 0 | 81 |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | 0 | (668) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | 0 | 587 |
Net current-period other comprehensive income (loss) | 0 | 0 | 0 | (81) |
Ending balance | 0 | 0 | 0 | 0 |
Accumulated net gain (loss) from cash flow hedges | Foreign Currency Derivatives | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | 1,235 | (10,348) | 7,071 | 4,879 |
Other comprehensive income (loss) before reclassifications, net of tax | (47) | (2,999) | (4,832) | (16,035) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (279) | 1,141 | (1,330) | (1,050) |
Net current-period other comprehensive income (loss) | (326) | (1,858) | (6,162) | (17,085) |
Ending balance | 909 | (12,206) | 909 | (12,206) |
Defined Benefit Plan Items | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | (107,344) | (101,710) | (110,202) | (103,865) |
Other comprehensive income (loss) before reclassifications, net of tax | (7,619) | 0 | (7,572) | (296) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 32,661 | 1,293 | 35,472 | 3,744 |
Net current-period other comprehensive income (loss) | 25,042 | 1,293 | 27,900 | 3,448 |
Ending balance | (82,302) | (100,417) | (82,302) | (100,417) |
Short-Term Investments | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | (244) | 311 | (362) | (372) |
Other comprehensive income (loss) before reclassifications, net of tax | 74 | (166) | 204 | 557 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (4) | (80) | (16) | (120) |
Net current-period other comprehensive income (loss) | 70 | (246) | 188 | 437 |
Ending balance | (174) | 65 | (174) | 65 |
Total | ||||
Rollforward of Accumulated other comprehensive income (loss) | ||||
Beginning balance | (106,353) | (111,747) | (103,493) | (99,277) |
Ending balance | $ (81,567) | $ (112,558) | $ (81,567) | $ (112,558) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Potential Dilution (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net Income | $ 74,566 | $ 102,454 | $ 191,911 | $ 233,490 |
Denominator: | ||||
Weighted average common stock shares outstanding - Basic (in shares) | 53,185 | 53,427 | 53,456 | 53,488 |
Assumed exercise of stock options and awards (in shares) | 324 | 161 | 343 | 219 |
Assumed conversion of convertible note premium (in shares) | 0 | 0 | 0 | 8 |
Weighted average common stock shares outstanding - Diluted (in shares) | 53,509 | 53,588 | 53,799 | 53,715 |
Net Income Per Share | ||||
Basic (in dollars per share) | $ 1.40 | $ 1.92 | $ 3.59 | $ 4.37 |
Diluted (in dollars per share) | $ 1.39 | $ 1.91 | $ 3.57 | $ 4.35 |
Earnings Per Share - Stock Repu
Earnings Per Share - Stock Repurchase Program and Dividends (Details) - USD ($) $ / shares in Units, shares in Millions | Apr. 01, 2017 | Oct. 20, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Apr. 30, 2017 |
Earnings Per Share [Abstract] | |||||
Approved stock repurchase amount | $ 100,000,000 | ||||
Period of approved stock repurchase program | 2 years | ||||
Amount spent to repurchase shares | $ 46,200,000 | $ 50,500,000 | |||
Number of shares repurchased and retired (in shares) | 1.1 | 1.2 | |||
Remaining authorized repurchase amount | $ 49,500,000 | $ 49,500,000 | |||
Subsequent Event | |||||
Dividends Payable [Line Items] | |||||
Cash dividend declared | $ 0.12 |
Short-Term Investments (Details
Short-Term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | $ 270,933 | $ 284,618 |
Gross Unrealized Gains | 96 | 93 |
Gross Unrealized Losses | (332) | (636) |
Fair Value | 270,697 | 284,075 |
Contractual Maturities | ||
Under 1 Year | 138,676 | |
1 to 5 Years | 132,021 | |
Total | 270,697 | |
Corporate debt | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 167,407 | 171,139 |
Gross Unrealized Gains | 67 | 84 |
Gross Unrealized Losses | (170) | (357) |
Fair Value | 167,304 | 170,866 |
Contractual Maturities | ||
Under 1 Year | 72,879 | |
1 to 5 Years | 94,425 | |
Total | 167,304 | |
U.S. government and agency debt | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 50,515 | 53,916 |
Gross Unrealized Gains | 1 | 8 |
Gross Unrealized Losses | (131) | (134) |
Fair Value | 50,385 | 53,790 |
Contractual Maturities | ||
Under 1 Year | 34,320 | |
1 to 5 Years | 16,065 | |
Total | 50,385 | |
Municipal bonds | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 19,839 | 22,893 |
Gross Unrealized Gains | 27 | 1 |
Gross Unrealized Losses | (30) | (144) |
Fair Value | 19,836 | 22,750 |
Contractual Maturities | ||
Under 1 Year | 6,942 | |
1 to 5 Years | 12,894 | |
Total | 19,836 | |
Other fixed income securities | ||
Schedule of Available-for-Sale Securities [Line Items] | ||
Amortized Cost | 33,172 | 36,670 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 33,172 | $ 36,669 |
Contractual Maturities | ||
Under 1 Year | 24,535 | |
1 to 5 Years | 8,637 | |
Total | $ 33,172 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities, Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Measurements | ||
Short-term investments | $ 270,697 | $ 284,075 |
Recurring basis | ||
Fair Value Measurements | ||
Cash equivalents | 198,018 | 123,120 |
Restricted cash | 1,000 | 5,000 |
Short-term investments | 270,697 | 284,075 |
Total assets measured at fair value | 483,186 | 440,191 |
Total liabilities measured at fair value | 2,633 | 1,469 |
Recurring basis | Crude oil call options | ||
Fair Value Measurements | ||
Fuel derivative contracts | 8,184 | 8,489 |
Recurring basis | Swaps | ||
Fair Value Measurements | ||
Fuel derivative contracts | 566 | 6,601 |
Derivative contracts | 21 | |
Recurring basis | Foreign currency derivatives | ||
Fair Value Measurements | ||
Fuel derivative contracts | 4,721 | 12,906 |
Derivative contracts | 2,612 | 1,469 |
Recurring basis | Level 1 | ||
Fair Value Measurements | ||
Cash equivalents | 171,936 | 104,113 |
Restricted cash | 1,000 | 5,000 |
Short-term investments | 0 | 0 |
Total assets measured at fair value | 172,936 | 109,113 |
Total liabilities measured at fair value | 0 | 0 |
Recurring basis | Level 1 | Crude oil call options | ||
Fair Value Measurements | ||
Fuel derivative contracts | 0 | 0 |
Recurring basis | Level 1 | Swaps | ||
Fair Value Measurements | ||
Fuel derivative contracts | 0 | 0 |
Derivative contracts | 0 | |
Recurring basis | Level 1 | Foreign currency derivatives | ||
Fair Value Measurements | ||
Fuel derivative contracts | 0 | 0 |
Derivative contracts | 0 | 0 |
Recurring basis | Level 2 | ||
Fair Value Measurements | ||
Cash equivalents | 26,082 | 19,007 |
Restricted cash | 0 | 0 |
Short-term investments | 270,697 | 284,075 |
Total assets measured at fair value | 310,250 | 331,078 |
Total liabilities measured at fair value | 2,633 | 1,469 |
Recurring basis | Level 2 | Crude oil call options | ||
Fair Value Measurements | ||
Fuel derivative contracts | 8,184 | 8,489 |
Recurring basis | Level 2 | Swaps | ||
Fair Value Measurements | ||
Fuel derivative contracts | 566 | 6,601 |
Derivative contracts | 21 | |
Recurring basis | Level 2 | Foreign currency derivatives | ||
Fair Value Measurements | ||
Fuel derivative contracts | 4,721 | 12,906 |
Derivative contracts | 2,612 | 1,469 |
Recurring basis | Level 3 | ||
Fair Value Measurements | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Short-term investments | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Recurring basis | Level 3 | Crude oil call options | ||
Fair Value Measurements | ||
Fuel derivative contracts | 0 | 0 |
Recurring basis | Level 3 | Swaps | ||
Fair Value Measurements | ||
Fuel derivative contracts | 0 | 0 |
Derivative contracts | 0 | |
Recurring basis | Level 3 | Foreign currency derivatives | ||
Fair Value Measurements | ||
Fuel derivative contracts | 0 | 0 |
Derivative contracts | $ 0 | $ 0 |
Fair Value Measurements - Sch42
Fair Value Measurements - Schedule of Certain Debt (Details) - Recurring basis - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Measurements | ||
Carrying value of debt | $ 438,843 | $ 481,874 |
Fair value of debt | 449,761 | 484,734 |
Level 1 | ||
Fair Value Measurements | ||
Fair value of debt | 0 | 0 |
Level 2 | ||
Fair Value Measurements | ||
Fair value of debt | 0 | 0 |
Level 3 | ||
Fair Value Measurements | ||
Fair value of debt | $ 449,761 | $ 484,734 |
Financial Derivative Instrume43
Financial Derivative Instruments - Risk Management (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative instrument | ||||
Gains (losses) on fuel derivatives recorded as Nonoperating income (expense) | $ 3,282 | $ (3,601) | $ (10,228) | $ 15,421 |
Derivatives not designated as hedges | Fuel derivative contracts | ||||
Derivative instrument | ||||
Losses realized at settlement | (2,787) | (2,525) | (2,100) | (30,349) |
Reversal of prior period unrealized amounts | 6,251 | (7,115) | (7,946) | 39,731 |
Unrealized gains (losses) that will settle in future periods | (182) | 6,039 | (182) | 6,039 |
Gains (losses) on fuel derivatives recorded as Nonoperating income (expense) | $ 3,282 | $ (3,601) | (10,228) | $ 15,421 |
Derivatives designated as hedges | Foreign currency derivatives | ||||
Derivative instrument | ||||
Expected reclassification of net gain | $ 600 | |||
Reclassification estimated time period | 12 months |
Financial Derivative Instrume44
Financial Derivative Instruments - Derivative Position (Details) ¥ in Thousands, gal in Thousands, AUD in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017JPY (¥)gal | Dec. 31, 2016JPY (¥)gal | Sep. 30, 2017AUD | Sep. 30, 2017USD ($) | Dec. 31, 2016AUD | Dec. 31, 2016USD ($) | |
Derivatives designated as hedges | Foreign currency derivatives | Prepaid expenses and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | ¥ 15,704,725 | ¥ 16,121,500 | AUD 46,792 | AUD 41,917 | ||
Gross fair value of assets, current | $ 3,594 | $ 9,803 | ||||
Gross fair value of liabilities, current | (2,340) | (1,349) | ||||
Net derivative position | 1,254 | 8,454 | ||||
Derivatives designated as hedges | Foreign currency derivatives | Long-term prepayments and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | 4,812,000 | 4,371,900 | 8,247 | 8,434 | ||
Gross fair value of assets, noncurrent | 952 | 2,632 | ||||
Gross fair value of liabilities, noncurrent | (242) | (59) | ||||
Net derivative position | 710 | 2,573 | ||||
Derivatives not designated as hedges | Foreign currency derivatives | Prepaid expenses and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | ¥ 924,350 | ¥ 879,050 | AUD 3,776 | AUD 5,802 | ||
Gross fair value of assets, current | 175 | 471 | ||||
Gross fair value of liabilities, current | (30) | (61) | ||||
Net derivative position | 145 | 410 | ||||
Derivatives not designated as hedges | Fuel derivative contracts | Prepaid expenses and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount (in gallons) | gal | 94,332 | 17,850 | ||||
Gross fair value of assets, current | 8,750 | 15,090 | ||||
Gross fair value of liabilities, current | (21) | 0 | ||||
Net derivative position | $ 8,729 | $ 15,090 |
Financial Derivative Instrume45
Financial Derivative Instruments - Impact of Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Foreign currency derivatives | ||||
Gains (losses) for designated hedge contracts | ||||
(Gain) loss recognized in AOCI on derivatives (effective portion) | $ 75 | $ 4,841 | $ 7,780 | $ 24,996 |
(Gain) loss reclassified from AOCI into income (effective portion) | (449) | 1,842 | (2,141) | (1,679) |
(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 | 0 | 0 | 923 |
(Gain) loss reclassified from AOCI into income (effective portion) | 0 | 0 | 0 | 944 |
(Gain) loss recognized in nonoperating (income) expense (ineffective portion) | $ 0 | $ 0 | $ 0 | $ 0 |
Financial Derivative Instrume46
Financial Derivative Instruments - Risk and Collateral (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Collateral posted with counterparties | $ 0 | $ 0 |
Debt (Details)
Debt (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
Remaining months in 2017 | $ 5,771 |
2,018 | 48,244 |
2,019 | 72,927 |
2,020 | 21,413 |
2,021 | 49,060 |
Thereafter | 241,428 |
Long-term Debt | $ 438,843 |
Leases (Details)
Leases (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Aircraft | |
Operating Leased Assets [Line Items] | |
Remaining in 2017 | $ 31,984 |
2,018 | 127,235 |
2,019 | 118,070 |
2,020 | 97,717 |
2,021 | 64,730 |
Thereafter | 222,227 |
Total future minimum rental payments | 661,963 |
Other | |
Operating Leased Assets [Line Items] | |
Remaining in 2017 | 1,643 |
2,018 | 7,311 |
2,019 | 6,939 |
2,020 | 6,690 |
2,021 | 6,768 |
Thereafter | 107,760 |
Total future minimum rental payments | $ 137,111 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | Apr. 01, 2017 | Aug. 31, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Components of Net Period Benefit Cost | |||||||
Service cost | $ 3,296,000 | $ 3,438,000 | $ 10,922,000 | $ 10,864,000 | |||
Other cost: | |||||||
Interest cost | 5,983,000 | 7,518,000 | 20,502,000 | 22,682,000 | |||
Expected return on plan assets | (4,533,000) | (4,472,000) | (14,125,000) | (13,416,000) | |||
Recognized net actuarial loss | 2,342,000 | 2,008,000 | 6,916,000 | 5,952,000 | |||
Total other components of the net periodic benefit cost | 3,792,000 | 5,054,000 | 13,293,000 | 15,218,000 | |||
Partial settlement and curtailment loss | 15,001,000 | 0 | 15,001,000 | 0 | |||
Loss on plan termination | 35,201,000 | 0 | 35,201,000 | 0 | |||
Net periodic benefit cost | 57,290,000 | 8,492,000 | 74,417,000 | 26,082,000 | |||
Employer contribution | 14,200,000 | 15,600,000 | 28,600,000 | 26,900,000 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
One-time financial loss | 35,201,000 | 0 | 35,201,000 | 0 | |||
One-time settlement loss | 15,001,000 | $ 0 | 15,001,000 | $ 0 | |||
Air Line Pilots Association | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Ratified agreement, term | 63 months | ||||||
Merged Plan | |||||||
Other cost: | |||||||
Loss on plan termination | $ 35,200,000 | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Cash payment to fund the plan | 18,500,000 | ||||||
One-time financial loss | 35,200,000 | ||||||
Expected contributions for the remainder of 2017 | 0 | 0 | |||||
HRA and Post-65 medical plan | |||||||
Other cost: | |||||||
Partial settlement and curtailment loss | 15,000,000 | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
One-time settlement loss | 15,000,000 | ||||||
HRA and Post-65 medical plan | Air Line Pilots Association | |||||||
Other cost: | |||||||
Partial settlement and curtailment loss | 15,000,000 | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Cash payment to fund the plan | $ 101,900,000 | ||||||
Ratified agreement, term | 63 months | ||||||
Discount rate | 3.87% | ||||||
One-time settlement loss | $ 15,000,000 | ||||||
HRA | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Expected contributions for the remainder of 2017 | 900,000 | 900,000 | |||||
Obligation for unsettled portion | $ 83,400,000 | $ 83,400,000 |
Commitments and Contingent Li50
Commitments and Contingent Liabilities - Capital Commitments and Operating Expenditures (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)orderpurchase_right | |
Total Committed Expenditures | |
Remaining in 2017 | $ 138,005 |
2,018 | 528,090 |
2,019 | 561,039 |
2,020 | 300,860 |
2,021 | 226,957 |
Thereafter | 532,264 |
Total | 2,287,215 |
Capital | |
Total Committed Expenditures | |
Remaining in 2017 | 114,916 |
2,018 | 454,848 |
2,019 | 500,811 |
2,020 | 242,152 |
2,021 | 170,406 |
Thereafter | 131,834 |
Total | $ 1,614,967 |
Capital | A321neo aircraft | |
Long-term Purchase Commitment [Line Items] | |
Aircraft Firm Orders | order | 16 |
Aircraft Purchase Rights | purchase_right | 9 |
Capital | A321neo aircraft | Pratt & Whitney spare engines | |
Long-term Purchase Commitment [Line Items] | |
Spare Engine Firm Orders | order | 3 |
Spare Engine Purchase Rights | purchase_right | 2 |
Capital | A330-800neo aircraft | |
Long-term Purchase Commitment [Line Items] | |
Aircraft Firm Orders | order | 6 |
Aircraft Purchase Rights | purchase_right | 6 |
Capital | A330-800neo aircraft | Rolls-Royce spare engines | |
Long-term Purchase Commitment [Line Items] | |
Spare Engine Firm Orders | order | 2 |
Spare Engine Purchase Rights | purchase_right | 2 |
Operating | |
Total Committed Expenditures | |
Remaining in 2017 | $ 23,089 |
2,018 | 73,242 |
2,019 | 60,228 |
2,020 | 58,708 |
2,021 | 56,551 |
Thereafter | 400,430 |
Total | $ 672,248 |
Commitments and Contingent Li51
Commitments and Contingent Liabilities - Narrative (Details) - Credit Card Processing Agreements - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Long-term Purchase Commitment [Line Items] | ||
Restricted cash | $ 1 | $ 5 |
Maximum limit of holdback (up to) | 100.00% |
Special Items (Details)
Special Items (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating: | ||||
Loss on sale of aircraft | $ 0 | $ 0 | $ 4,771 | $ 0 |
Collective bargaining charge | 0 | 0 | 18,679 | 0 |
Special items | 0 | 0 | 23,450 | 0 |
Nonoperating: | ||||
Partial settlement and curtailment loss | 15,001 | 0 | 15,001 | 0 |
Loss on plan termination | 35,201 | 0 | 35,201 | 0 |
Other nonoperating special items | $ 50,202 | $ 0 | $ 50,202 | $ 0 |
Special Items - Narrative (Deta
Special Items - Narrative (Details) $ in Thousands | Apr. 01, 2017 | Aug. 31, 2017USD ($) | Mar. 31, 2017 | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Apr. 30, 2017aircraft |
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
One-time Other nonoperating special charges | $ 35,201 | $ 0 | $ 35,201 | $ 0 | ||||
Other post-retirement medical plan partial settlement | 15,001 | 0 | 15,001 | 0 | ||||
Loss on sale of aircraft | 0 | 0 | 4,771 | 0 | ||||
Collective bargaining charge | $ 0 | $ 0 | 18,679 | $ 0 | ||||
Air Line Pilots Association | ||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
Ratified agreement, term | 63 months | |||||||
Collective bargaining charge | 18,700 | |||||||
Aircraft | B767-300 aircraft | ||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
Sale lease-back transaction, number of aircraft | aircraft | 3 | |||||||
Loss on sale of aircraft | $ 4,800 | |||||||
Merged Plan | ||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
One-time Other nonoperating special charges | $ 35,200 | |||||||
Other post-retirement medical plan | ||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
Other post-retirement medical plan partial settlement | 15,000 | |||||||
Other post-retirement medical plan | Air Line Pilots Association | ||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||
Other post-retirement medical plan partial settlement | $ 15,000 | |||||||
Ratified agreement, term | 63 months |
Supplemental Cash Flow Inform54
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | ||
Property and equipment acquired through a capital lease | $ 0 | $ 6,092 |
Condensed Consolidating Finan55
Condensed Consolidating Financial Information - Narrative and Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)pass_through_trust | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)pass_through_trust | Sep. 30, 2016USD ($) | |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Operating Revenue | $ 719,559 | $ 671,837 | $ 2,009,079 | $ 1,817,607 |
Operating Expenses: | ||||
Wages and benefits | 161,059 | 136,356 | 466,772 | 395,718 |
Aircraft fuel, including taxes and delivery | 110,111 | 94,818 | 316,423 | 248,516 |
Maintenance materials and repairs | 49,396 | 51,812 | 161,366 | 166,901 |
Aircraft and passenger servicing | 36,360 | 33,971 | 104,569 | 93,245 |
Commissions and other selling | 32,930 | 29,480 | 98,668 | 93,936 |
Aircraft rent | 35,195 | 32,891 | 102,883 | 92,345 |
Other rentals and landing fees | 30,989 | 28,926 | 86,763 | 78,338 |
Depreciation and amortization | 28,447 | 27,495 | 83,787 | 81,629 |
Purchased services | 24,736 | 25,614 | 79,428 | 72,889 |
Special items | 0 | 0 | 23,450 | 0 |
Other | 36,585 | 31,565 | 101,376 | 94,279 |
Total | 545,808 | 492,928 | 1,625,485 | 1,417,796 |
Operating Income | 173,751 | 178,909 | 383,594 | 399,811 |
Nonoperating Income (Expense): | ||||
Undistributed net income of subsidiaries | 0 | 0 | 0 | 0 |
Other nonoperating special items | (50,202) | 0 | (50,202) | 0 |
Interest expense and amortization of debt discounts and issuance costs | (7,578) | (8,539) | (23,292) | (28,453) |
Other components of net periodic pension cost | (3,792) | (5,054) | (13,293) | (15,218) |
Interest income | 1,861 | 1,113 | 4,480 | 3,044 |
Capitalized interest | 2,416 | 719 | 6,258 | 1,407 |
Gains (losses) on fuel derivatives | 3,282 | (3,601) | (10,228) | 15,421 |
Loss on extinguishment of debt | 0 | 0 | 0 | (9,993) |
Other, net | (100) | 612 | 3,161 | 9,884 |
Total | (54,113) | (14,750) | (83,116) | (23,908) |
Income Before Income Taxes | 119,638 | 164,159 | 300,478 | 375,903 |
Income tax expense (benefit) | 45,072 | 61,705 | 108,567 | 142,413 |
Net Income | 74,566 | 102,454 | 191,911 | 233,490 |
Total Comprehensive Income | 99,352 | 101,643 | 213,837 | 220,209 |
Eliminations | ||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Operating Revenue | (106) | (78) | (318) | (281) |
Operating Expenses: | ||||
Wages and benefits | 0 | 0 | 0 | 0 |
Aircraft fuel, including taxes and delivery | 0 | 0 | 0 | 0 |
Maintenance materials and repairs | 0 | 0 | 0 | 0 |
Aircraft and passenger servicing | 0 | 0 | 0 | 0 |
Commissions and other selling | (31) | (29) | (108) | (100) |
Aircraft rent | 0 | 0 | 0 | 0 |
Other rentals and landing fees | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Purchased services | (15) | (15) | (45) | (45) |
Special items | 0 | |||
Other | (60) | (34) | (165) | (136) |
Total | (106) | (78) | (318) | (281) |
Operating Income | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense): | ||||
Undistributed net income of subsidiaries | (75,469) | (103,211) | (193,581) | (235,353) |
Other nonoperating special items | 0 | 0 | ||
Interest expense and amortization of debt discounts and issuance costs | 0 | 0 | 0 | 0 |
Other components of net periodic pension cost | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Capitalized interest | 0 | 0 | 0 | 0 |
Gains (losses) on fuel derivatives | 0 | 0 | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 | 0 | |
Other, net | 0 | 0 | 0 | 0 |
Total | (75,469) | (103,211) | (193,581) | (235,353) |
Income Before Income Taxes | (75,469) | (103,211) | (193,581) | (235,353) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net Income | (75,469) | (103,211) | (193,581) | (235,353) |
Total Comprehensive Income | (100,255) | (102,400) | (215,507) | (222,072) |
Parent Issuer / Guarantor | ||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Operating Revenue | 0 | 0 | 0 | 0 |
Operating Expenses: | ||||
Wages and benefits | 0 | 0 | 0 | 0 |
Aircraft fuel, including taxes and delivery | 0 | 0 | 0 | 0 |
Maintenance materials and repairs | 0 | 0 | 0 | 0 |
Aircraft and passenger servicing | 0 | 0 | 0 | 0 |
Commissions and other selling | 18 | 0 | 42 | 1 |
Aircraft rent | 0 | 0 | 0 | 0 |
Other rentals and landing fees | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Purchased services | 117 | 34 | 400 | 121 |
Special items | 0 | |||
Other | 1,498 | 1,348 | 3,958 | 4,135 |
Total | 1,633 | 1,382 | 4,400 | 4,257 |
Operating Income | (1,633) | (1,382) | (4,400) | (4,257) |
Nonoperating Income (Expense): | ||||
Undistributed net income of subsidiaries | 75,469 | 103,211 | 193,581 | 235,353 |
Other nonoperating special items | 0 | 0 | ||
Interest expense and amortization of debt discounts and issuance costs | 0 | 0 | 0 | 117 |
Other components of net periodic pension cost | 0 | 0 | 0 | 0 |
Interest income | 76 | 71 | 216 | 195 |
Capitalized interest | 0 | 0 | 0 | 0 |
Gains (losses) on fuel derivatives | 0 | 0 | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 | 0 | |
Other, net | 0 | 0 | 0 | 0 |
Total | 75,545 | 103,282 | 193,797 | 235,665 |
Income Before Income Taxes | 73,912 | 101,900 | 189,397 | 231,408 |
Income tax expense (benefit) | (654) | (554) | (2,514) | (2,082) |
Net Income | 74,566 | 102,454 | 191,911 | 233,490 |
Total Comprehensive Income | $ 99,352 | 101,643 | $ 213,837 | 220,209 |
Subsidiary Issuer / Guarantor | ||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Number of pass-through trusts | pass_through_trust | 2 | 2 | ||
Operating Revenue | $ 717,812 | 670,115 | $ 2,003,961 | 1,813,410 |
Operating Expenses: | ||||
Wages and benefits | 161,059 | 136,356 | 466,772 | 395,718 |
Aircraft fuel, including taxes and delivery | 110,111 | 94,818 | 316,423 | 248,516 |
Maintenance materials and repairs | 48,987 | 51,354 | 158,417 | 164,395 |
Aircraft and passenger servicing | 36,360 | 33,971 | 104,569 | 93,245 |
Commissions and other selling | 32,924 | 29,494 | 98,677 | 93,983 |
Aircraft rent | 35,090 | 32,891 | 102,408 | 92,345 |
Other rentals and landing fees | 30,989 | 28,926 | 86,763 | 78,338 |
Depreciation and amortization | 27,491 | 26,496 | 80,927 | 79,136 |
Purchased services | 24,428 | 25,404 | 78,428 | 72,363 |
Special items | 23,450 | |||
Other | 34,678 | 29,807 | 96,132 | 89,381 |
Total | 542,117 | 489,517 | 1,612,966 | 1,407,420 |
Operating Income | 175,695 | 180,598 | 390,995 | 405,990 |
Nonoperating Income (Expense): | ||||
Undistributed net income of subsidiaries | 0 | 0 | 0 | 0 |
Other nonoperating special items | (50,202) | (50,202) | ||
Interest expense and amortization of debt discounts and issuance costs | (7,578) | (8,539) | (23,292) | (28,570) |
Other components of net periodic pension cost | (3,792) | (5,054) | (13,293) | (15,218) |
Interest income | 1,785 | 1,042 | 4,264 | 2,849 |
Capitalized interest | 2,416 | 719 | 6,258 | 1,407 |
Gains (losses) on fuel derivatives | 3,282 | (3,601) | (10,228) | 15,421 |
Loss on extinguishment of debt | 0 | 0 | (9,993) | |
Other, net | (100) | 612 | 3,161 | 9,884 |
Total | (54,189) | (14,821) | (83,332) | (24,220) |
Income Before Income Taxes | 121,506 | 165,777 | 307,663 | 381,770 |
Income tax expense (benefit) | 45,726 | 62,259 | 111,081 | 144,495 |
Net Income | 75,780 | 103,518 | 196,582 | 237,275 |
Total Comprehensive Income | 100,566 | 102,707 | 218,508 | 223,994 |
Non-Guarantor Subsidiaries | ||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Operating Revenue | 1,853 | 1,800 | 5,436 | 4,478 |
Operating Expenses: | ||||
Wages and benefits | 0 | 0 | 0 | 0 |
Aircraft fuel, including taxes and delivery | 0 | 0 | 0 | 0 |
Maintenance materials and repairs | 409 | 458 | 2,949 | 2,506 |
Aircraft and passenger servicing | 0 | 0 | 0 | 0 |
Commissions and other selling | 19 | 15 | 57 | 52 |
Aircraft rent | 105 | 0 | 475 | 0 |
Other rentals and landing fees | 0 | 0 | 0 | 0 |
Depreciation and amortization | 956 | 999 | 2,860 | 2,493 |
Purchased services | 206 | 191 | 645 | 450 |
Special items | 0 | |||
Other | 469 | 444 | 1,451 | 899 |
Total | 2,164 | 2,107 | 8,437 | 6,400 |
Operating Income | (311) | (307) | (3,001) | (1,922) |
Nonoperating Income (Expense): | ||||
Undistributed net income of subsidiaries | 0 | 0 | 0 | 0 |
Other nonoperating special items | 0 | 0 | ||
Interest expense and amortization of debt discounts and issuance costs | 0 | 0 | 0 | 0 |
Other components of net periodic pension cost | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Capitalized interest | 0 | 0 | 0 | 0 |
Gains (losses) on fuel derivatives | 0 | 0 | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 | 0 | |
Other, net | 0 | 0 | 0 | 0 |
Total | 0 | 0 | 0 | 0 |
Income Before Income Taxes | (311) | (307) | (3,001) | (1,922) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net Income | (311) | (307) | (3,001) | (1,922) |
Total Comprehensive Income | $ (311) | $ (307) | $ (3,001) | $ (1,922) |
Condensed Consolidating Finan56
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 348,049 | $ 325,991 |
Restricted cash | 1,000 | 5,000 |
Short-term investments | 270,697 | 284,075 |
Accounts receivable, net | 118,622 | 96,067 |
Spare parts and supplies, net | 26,560 | 20,363 |
Prepaid expenses and other | 56,783 | 66,740 |
Total | 821,711 | 798,236 |
Property and equipment at cost | 2,287,910 | 2,108,798 |
Less accumulated depreciation and amortization | (533,964) | (454,231) |
Property and equipment, net | 1,753,946 | 1,654,567 |
Long-term prepayments and other | 124,926 | 132,724 |
Deferred tax assets, net | 0 | 0 |
Goodwill and other intangible assets, net | 122,110 | 123,074 |
Intercompany receivable | 0 | 0 |
Investment in consolidated subsidiaries | 0 | 0 |
Total Assets | 2,822,693 | 2,708,601 |
Current liabilities: | ||
Accounts payable | 118,810 | 116,507 |
Air traffic liability | 573,373 | 482,496 |
Other accrued liabilities | 157,760 | 172,214 |
Current maturities of long-term debt, less discount, and capital lease obligations | 58,585 | 58,899 |
Total | 908,528 | 830,116 |
Long-term debt and capital lease obligations | 447,533 | 497,908 |
Intercompany payable | 0 | 0 |
Other liabilities and deferred credits: | ||
Accumulated pension and other post-retirement benefit obligations | 234,206 | 355,968 |
Other liabilities and deferred credits | 172,792 | 173,613 |
Deferred tax liabilities, net | 218,843 | 170,543 |
Total | 625,841 | 700,124 |
Shareholders’ equity | 840,791 | 680,453 |
Total Liabilities and Shareholders’ Equity | 2,822,693 | 2,708,601 |
Eliminations | ||
Current assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Short-term investments | 0 | 0 |
Accounts receivable, net | (197) | (205) |
Spare parts and supplies, net | 0 | 0 |
Prepaid expenses and other | 0 | 0 |
Total | (197) | (205) |
Property and equipment at cost | 0 | 0 |
Less accumulated depreciation and amortization | 0 | 0 |
Property and equipment, net | 0 | 0 |
Long-term prepayments and other | 0 | 0 |
Deferred tax assets, net | (31,271) | (28,757) |
Goodwill and other intangible assets, net | 0 | 0 |
Intercompany receivable | (342,113) | (277,732) |
Investment in consolidated subsidiaries | (1,077,365) | (855,289) |
Total Assets | (1,450,946) | (1,161,983) |
Current liabilities: | ||
Accounts payable | (197) | (205) |
Air traffic liability | 0 | 0 |
Other accrued liabilities | 0 | 0 |
Current maturities of long-term debt, less discount, and capital lease obligations | 0 | 0 |
Total | (197) | (205) |
Long-term debt and capital lease obligations | 0 | 0 |
Intercompany payable | (342,113) | (277,732) |
Other liabilities and deferred credits: | ||
Accumulated pension and other post-retirement benefit obligations | 0 | 0 |
Other liabilities and deferred credits | 0 | 0 |
Deferred tax liabilities, net | (31,271) | (28,757) |
Total | (31,271) | (28,757) |
Shareholders’ equity | (1,077,365) | (855,289) |
Total Liabilities and Shareholders’ Equity | (1,450,946) | (1,161,983) |
Parent Issuer / Guarantor | ||
Current assets: | ||
Cash and cash equivalents | 63,745 | 67,629 |
Restricted cash | 0 | 0 |
Short-term investments | 0 | 0 |
Accounts receivable, net | 29 | 28 |
Spare parts and supplies, net | 0 | 0 |
Prepaid expenses and other | 145 | 29 |
Total | 63,919 | 67,686 |
Property and equipment at cost | 0 | 0 |
Less accumulated depreciation and amortization | 0 | 0 |
Property and equipment, net | 0 | 0 |
Long-term prepayments and other | 0 | 0 |
Deferred tax assets, net | 31,271 | 28,757 |
Goodwill and other intangible assets, net | 0 | 0 |
Intercompany receivable | 0 | 0 |
Investment in consolidated subsidiaries | 1,077,365 | 855,289 |
Total Assets | 1,172,555 | 951,732 |
Current liabilities: | ||
Accounts payable | 703 | 492 |
Air traffic liability | 0 | 0 |
Other accrued liabilities | 131 | 4,088 |
Current maturities of long-term debt, less discount, and capital lease obligations | 0 | 0 |
Total | 834 | 4,580 |
Long-term debt and capital lease obligations | 0 | 0 |
Intercompany payable | 330,930 | 266,699 |
Other liabilities and deferred credits: | ||
Accumulated pension and other post-retirement benefit obligations | 0 | 0 |
Other liabilities and deferred credits | 0 | 0 |
Deferred tax liabilities, net | 0 | 0 |
Total | 0 | 0 |
Shareholders’ equity | 840,791 | 680,453 |
Total Liabilities and Shareholders’ Equity | 1,172,555 | 951,732 |
Subsidiary Issuer / Guarantor | ||
Current assets: | ||
Cash and cash equivalents | 279,055 | 249,985 |
Restricted cash | 1,000 | 5,000 |
Short-term investments | 270,697 | 284,075 |
Accounts receivable, net | 117,103 | 94,852 |
Spare parts and supplies, net | 26,560 | 20,363 |
Prepaid expenses and other | 56,409 | 66,665 |
Total | 750,824 | 720,940 |
Property and equipment at cost | 2,214,015 | 2,038,931 |
Less accumulated depreciation and amortization | (523,089) | (445,868) |
Property and equipment, net | 1,690,926 | 1,593,063 |
Long-term prepayments and other | 124,874 | 132,724 |
Deferred tax assets, net | 0 | 0 |
Goodwill and other intangible assets, net | 120,839 | 121,456 |
Intercompany receivable | 342,113 | 277,732 |
Investment in consolidated subsidiaries | 0 | 0 |
Total Assets | 3,029,576 | 2,845,915 |
Current liabilities: | ||
Accounts payable | 117,454 | 114,935 |
Air traffic liability | 569,638 | 478,109 |
Other accrued liabilities | 157,383 | 167,864 |
Current maturities of long-term debt, less discount, and capital lease obligations | 58,585 | 58,899 |
Total | 903,060 | 819,807 |
Long-term debt and capital lease obligations | 447,533 | 497,908 |
Intercompany payable | 0 | 0 |
Other liabilities and deferred credits: | ||
Accumulated pension and other post-retirement benefit obligations | 234,206 | 355,968 |
Other liabilities and deferred credits | 171,937 | 172,783 |
Deferred tax liabilities, net | 250,114 | 199,300 |
Total | 656,257 | 728,051 |
Shareholders’ equity | 1,022,726 | 800,149 |
Total Liabilities and Shareholders’ Equity | 3,029,576 | 2,845,915 |
Non-Guarantor Subsidiaries | ||
Current assets: | ||
Cash and cash equivalents | 5,249 | 8,377 |
Restricted cash | 0 | 0 |
Short-term investments | 0 | 0 |
Accounts receivable, net | 1,687 | 1,392 |
Spare parts and supplies, net | 0 | 0 |
Prepaid expenses and other | 229 | 46 |
Total | 7,165 | 9,815 |
Property and equipment at cost | 73,895 | 69,867 |
Less accumulated depreciation and amortization | (10,875) | (8,363) |
Property and equipment, net | 63,020 | 61,504 |
Long-term prepayments and other | 52 | 0 |
Deferred tax assets, net | 0 | 0 |
Goodwill and other intangible assets, net | 1,271 | 1,618 |
Intercompany receivable | 0 | 0 |
Investment in consolidated subsidiaries | 0 | 0 |
Total Assets | 71,508 | 72,937 |
Current liabilities: | ||
Accounts payable | 850 | 1,285 |
Air traffic liability | 3,735 | 4,387 |
Other accrued liabilities | 246 | 262 |
Current maturities of long-term debt, less discount, and capital lease obligations | 0 | 0 |
Total | 4,831 | 5,934 |
Long-term debt and capital lease obligations | 0 | 0 |
Intercompany payable | 11,183 | 11,033 |
Other liabilities and deferred credits: | ||
Accumulated pension and other post-retirement benefit obligations | 0 | 0 |
Other liabilities and deferred credits | 855 | 830 |
Deferred tax liabilities, net | 0 | 0 |
Total | 855 | 830 |
Shareholders’ equity | 54,639 | 55,140 |
Total Liabilities and Shareholders’ Equity | $ 71,508 | $ 72,937 |
Condensed Consolidating Finan57
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Consolidating Statements of Cash Flows | ||
Net Cash Provided By (Used In) Operating Activities | $ 295,477 | $ 434,922 |
Cash Flows From Investing Activities: | ||
Net payments to affiliates | 0 | 0 |
Additions to property and equipment, including pre-delivery deposits | (212,535) | (104,250) |
Proceeds from purchase assignment and leaseback transaction | 0 | 31,851 |
Proceeds from disposition of property and equipment | 33,511 | 0 |
Purchases of investments | (171,485) | (217,964) |
Sales of investments | 183,930 | 208,075 |
Net cash used in investing activities | (166,579) | (82,288) |
Cash Flows From Financing Activities: | ||
Repayments of long-term debt and capital lease obligations | (52,463) | (205,532) |
Repurchase of convertible notes | 0 | (1,426) |
Net payments from affiliates | 0 | 0 |
Repurchases of common stock | (50,486) | (13,763) |
Other | (7,891) | (7,702) |
Net cash used in financing activities | (110,840) | (228,423) |
Net increase in cash and cash equivalents | 18,058 | 124,211 |
Cash, cash equivalents, and restricted cash - Beginning of Period | 330,991 | 286,502 |
Cash, cash equivalents, and restricted cash - End of Period | 349,049 | 410,713 |
Eliminations | ||
Condensed Consolidating Statements of Cash Flows | ||
Net Cash Provided By (Used In) Operating Activities | 0 | 0 |
Cash Flows From Investing Activities: | ||
Net payments to affiliates | 55,007 | 27,796 |
Additions to property and equipment, including pre-delivery deposits | 0 | 0 |
Proceeds from purchase assignment and leaseback transaction | 0 | |
Proceeds from disposition of property and equipment | 0 | |
Purchases of investments | 0 | 0 |
Sales of investments | 0 | 0 |
Net cash used in investing activities | 55,007 | 27,796 |
Cash Flows From Financing Activities: | ||
Repayments of long-term debt and capital lease obligations | 0 | 0 |
Repurchase of convertible notes | 0 | |
Net payments from affiliates | (55,007) | (27,796) |
Repurchases of common stock | 0 | 0 |
Other | 0 | 0 |
Net cash used in financing activities | (55,007) | (27,796) |
Net increase in cash and cash equivalents | 0 | 0 |
Cash, cash equivalents, and restricted cash - Beginning of Period | 0 | 0 |
Cash, cash equivalents, and restricted cash - End of Period | 0 | 0 |
Parent Issuer / Guarantor | ||
Condensed Consolidating Statements of Cash Flows | ||
Net Cash Provided By (Used In) Operating Activities | (3,491) | (4,036) |
Cash Flows From Investing Activities: | ||
Net payments to affiliates | (2,500) | 0 |
Additions to property and equipment, including pre-delivery deposits | 0 | 0 |
Proceeds from purchase assignment and leaseback transaction | 0 | |
Proceeds from disposition of property and equipment | 0 | |
Purchases of investments | 0 | 0 |
Sales of investments | 0 | 0 |
Net cash used in investing activities | (2,500) | 0 |
Cash Flows From Financing Activities: | ||
Repayments of long-term debt and capital lease obligations | 0 | 0 |
Repurchase of convertible notes | (1,426) | |
Net payments from affiliates | 52,507 | 16,763 |
Repurchases of common stock | (50,486) | (13,763) |
Other | 86 | 423 |
Net cash used in financing activities | 2,107 | 1,997 |
Net increase in cash and cash equivalents | (3,884) | (2,039) |
Cash, cash equivalents, and restricted cash - Beginning of Period | 67,629 | 69,420 |
Cash, cash equivalents, and restricted cash - End of Period | 63,745 | 67,381 |
Subsidiary Issuer / Guarantor | ||
Condensed Consolidating Statements of Cash Flows | ||
Net Cash Provided By (Used In) Operating Activities | 300,820 | 438,596 |
Cash Flows From Investing Activities: | ||
Net payments to affiliates | (52,507) | (27,796) |
Additions to property and equipment, including pre-delivery deposits | (208,759) | (92,185) |
Proceeds from purchase assignment and leaseback transaction | 31,851 | |
Proceeds from disposition of property and equipment | 33,511 | |
Purchases of investments | (171,485) | (217,964) |
Sales of investments | 183,930 | 208,075 |
Net cash used in investing activities | (215,310) | (98,019) |
Cash Flows From Financing Activities: | ||
Repayments of long-term debt and capital lease obligations | (52,463) | (205,532) |
Repurchase of convertible notes | 0 | |
Net payments from affiliates | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Other | (7,977) | (8,125) |
Net cash used in financing activities | (60,440) | (213,657) |
Net increase in cash and cash equivalents | 25,070 | 126,920 |
Cash, cash equivalents, and restricted cash - Beginning of Period | 254,985 | 208,406 |
Cash, cash equivalents, and restricted cash - End of Period | 280,055 | 335,326 |
Non-Guarantor Subsidiaries | ||
Condensed Consolidating Statements of Cash Flows | ||
Net Cash Provided By (Used In) Operating Activities | (1,852) | 362 |
Cash Flows From Investing Activities: | ||
Net payments to affiliates | 0 | 0 |
Additions to property and equipment, including pre-delivery deposits | (3,776) | (12,065) |
Proceeds from purchase assignment and leaseback transaction | 0 | |
Proceeds from disposition of property and equipment | 0 | |
Purchases of investments | 0 | 0 |
Sales of investments | 0 | 0 |
Net cash used in investing activities | (3,776) | (12,065) |
Cash Flows From Financing Activities: | ||
Repayments of long-term debt and capital lease obligations | 0 | 0 |
Repurchase of convertible notes | 0 | |
Net payments from affiliates | 2,500 | 11,033 |
Repurchases of common stock | 0 | 0 |
Other | 0 | 0 |
Net cash used in financing activities | 2,500 | 11,033 |
Net increase in cash and cash equivalents | (3,128) | (670) |
Cash, cash equivalents, and restricted cash - Beginning of Period | 8,377 | 8,676 |
Cash, cash equivalents, and restricted cash - End of Period | $ 5,249 | $ 8,006 |