Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 08, 2019 | Jun. 30, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | HAWAIIAN HOLDINGS INC | ||
Entity Central Index Key | 1,172,222 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1.8 | ||
Entity Common Stock, Shares Outstanding | 48,421,855 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Operating Revenue: | |||||
Total Operating Revenue | $ 2,837,411 | $ 2,675,145 | $ 2,432,413 | ||
Operating Expenses: | |||||
Wages and benefits | 684,719 | 632,997 | 535,264 | ||
Aircraft fuel, including taxes and delivery | 599,544 | 440,383 | 344,322 | ||
Aircraft rent | 125,961 | 137,764 | 124,565 | ||
Maintenance materials and repairs | 239,759 | 219,553 | 229,044 | ||
Aircraft and passenger servicing | 157,796 | 144,853 | 129,899 | ||
Commissions and other selling | 129,315 | 126,750 | 122,787 | ||
Depreciation and amortization | 139,866 | 113,277 | 108,128 | ||
Other rentals and landing fees | 126,903 | 116,763 | 108,087 | ||
Purchased services | 131,651 | 110,787 | 96,199 | ||
Contract terminations expense | 35,322 | 0 | 0 | ||
Special items | 0 | 23,450 | 109,142 | ||
Other | 152,207 | 144,530 | 127,489 | ||
Total | 2,523,043 | 2,211,107 | 2,034,926 | ||
Operating Income | 314,368 | 464,038 | 397,487 | ||
Nonoperating Income (Expense): | |||||
Other nonoperating special items | 0 | (45,585) | 0 | ||
Interest expense and amortization of debt discounts and issuance costs | (33,001) | (30,901) | (36,612) | ||
Interest income | 9,242 | 6,132 | 4,007 | ||
Capitalized interest | 7,887 | 8,437 | 2,651 | ||
Other components of net periodic benefit cost, excluding settlements | (825) | (16,713) | (20,270) | ||
Gains on fuel derivatives | 5,590 | 3,312 | 20,106 | ||
Loss on extinguishment of debt | 0 | 0 | [2] | (10,473) | [2] |
Other, net | (2,103) | 2,101 | 4,323 | ||
Total | (13,210) | (73,217) | (36,268) | ||
Income Before Income Taxes | 301,158 | 390,821 | 361,219 | ||
Income tax expense | 67,958 | 60,211 | 137,099 | ||
Net Income | $ 233,200 | $ 330,610 | [2],[3] | $ 224,120 | [2],[3] |
Net Income Per Common Stock Share: | |||||
Basic (in dollars per share) | $ 4.63 | $ 6.23 | $ 4.19 | ||
Diluted (in dollars per share) | $ 4.62 | $ 6.19 | $ 4.15 | ||
Weighted Average Number of Common Stock Shares Outstanding: | |||||
Basic (in shares) | 50,338 | 53,074 | 53,502 | ||
Diluted (in shares) | 50,488 | 53,413 | 53,958 | ||
Cash dividends declared per common share (in dollars per share) | $ 0.48 | $ 0.12 | $ 0 | ||
Passenger | |||||
Operating Revenue: | |||||
Total Operating Revenue | $ 2,602,793 | $ 2,486,827 | $ 2,271,687 | ||
Other | |||||
Operating Revenue: | |||||
Total Operating Revenue | $ 234,618 | $ 188,318 | $ 160,726 | ||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||
[3] | Amounts adjusted for the adoption of ASC No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Statement of Comprehensive Income [Abstract] | |||||
Net Income | $ 233,200 | $ 330,610 | [2],[3] | $ 224,120 | [2],[3] |
Other Comprehensive Income (Loss), net: | |||||
Net change related to employee benefit plans, net of tax benefit of $2,414 for 2018, net of tax expense of $22,321 for 2017, and tax benefit of $3,588 for 2016 | (7,243) | 34,249 | (6,337) | ||
Net change in derivative instruments, net of tax expense of $586 for 2018, tax benefit of $3,548 for 2017, and tax expense of $1,290 for 2016 | 1,799 | (5,822) | 2,111 | ||
Net change in available-for-sale investments, net of tax expense of $25 for 2018, tax benefit of $120 for 2017, and tax expense of $6 for 2016 | 78 | (198) | 10 | ||
Total Other Comprehensive Income (Loss) | (5,366) | 28,229 | (4,216) | ||
Total Comprehensive Income | $ 227,834 | $ 358,839 | $ 219,904 | ||
[1] | Amounts adjusted for the adoption of ASC No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||
[3] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net change related to employee benefit plans, tax expense (benefit) | $ (2,414) | $ 22,321 | $ (3,588) |
Net change in derivative instruments, tax expense (benefit) | 586 | (3,548) | 1,290 |
Unrealized loss on short-term and long-term investments, tax expense (benefit) | $ 25 | $ (120) | $ 6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | [1] |
Current Assets: | |||
Cash and cash equivalents | $ 268,577 | $ 190,953 | |
Restricted cash | 0 | 1,000 | |
Short-term investments | 232,241 | 269,297 | |
Accounts receivable, net | 111,834 | 140,279 | |
Spare parts and supplies, net | 33,942 | 35,361 | |
Prepaid expenses and other | 58,573 | 79,186 | |
Total | 705,167 | 716,076 | |
Property and equipment, net | |||
Flight equipment | 2,307,033 | 1,848,061 | |
Pre-delivery deposits on flight equipment | 119,957 | 150,652 | |
Other property and equipment | 421,582 | 402,098 | |
Total property and equipment, gross | 2,848,572 | 2,400,811 | |
Less accumulated depreciation and amortization | (663,461) | (558,548) | |
Total | 2,185,111 | 1,842,263 | |
Other Assets: | |||
Long-term prepayments and other | 185,556 | 193,632 | |
Intangible assets, net | 14,149 | 15,187 | |
Goodwill | 106,663 | 106,663 | |
Total Assets | 3,196,646 | 2,873,821 | |
Current Liabilities: | |||
Accounts payable | 143,146 | 140,805 | |
Air traffic liability and current frequent flyer deferred revenue | 603,736 | 589,093 | |
Other accrued liabilities | 158,154 | 147,593 | |
Current maturities of long-term debt, less discount, and capital lease obligations | 101,097 | 59,470 | |
Total | 1,006,133 | 936,961 | |
Long-Term Debt and Capital Lease Obligations | 608,684 | 511,201 | |
Other Liabilities and Deferred Credits: | |||
Accumulated pension and other postretirement benefit obligations | 182,620 | 220,788 | |
Other liabilities and deferred credits | 119,826 | 75,841 | |
Noncurrent frequent flyer deferred revenue | 163,619 | 149,764 | |
Deferred tax liability, net | 167,770 | 134,141 | |
Total | 633,835 | 580,534 | |
Commitments and Contingent Liabilities | |||
Shareholders' Equity: | |||
Special preferred stock, $0.01 par value per share, three shares issued and outstanding at December 31, 2018 and 2017 | 0 | 0 | |
Common stock, $0.01 par value per share, 48,540,280 and 51,173,453 shares issued and outstanding as of December 31, 2018 and 2017, respectively | 485 | 512 | |
Capital in excess of par value | 128,448 | 126,743 | |
Accumulated income | 912,201 | 793,134 | |
Accumulated other comprehensive loss, net | (93,140) | (75,264) | |
Total | 947,994 | 845,125 | |
Total Liabilities and Shareholders' Equity | $ 3,196,646 | $ 2,873,821 | |
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Special preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Special preferred stock, shares issued | 3 | 3 |
Special preferred stock, shares outstanding | 3 | 3 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 48,540,280 | 51,173,453 |
Common stock, shares outstanding | 48,540,280 | 51,173,453 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | [1] | Special Preferred Stock | [2] | Capital In Excess of Par Value | Accumulated Income | Accumulated Other Comprehensive Loss | |
Beginning balance at Dec. 31, 2015 | $ 446,062 | $ 534 | $ 0 | $ 124,091 | $ 420,714 | $ (99,277) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net Income | 224,120 | [3],[4],[5] | 224,120 | ||||||
Dividends declared on common stock | 0 | ||||||||
Other comprehensive income (loss) | (4,216) | [3] | (4,216) | ||||||
Issuance of shares of common stock, net of shares withheld for taxes | (7,585) | 4 | (7,589) | ||||||
Repurchase and retirement of shares of common stock | (13,763) | (4) | (13,759) | ||||||
Share-based compensation expense | 6,005 | 6,005 | |||||||
Excess tax benefits from stock issuance | 19,656 | 19,656 | |||||||
Reacquisition of equity component of convertible notes | (1,138) | (1,138) | |||||||
Ending balance at Dec. 31, 2016 | 593,067 | 534 | 0 | 127,266 | 568,760 | (103,493) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net Income | 330,610 | [3],[4],[5] | 330,610 | ||||||
Dividends declared on common stock | (6,261) | (6,261) | |||||||
Other comprehensive income (loss) | 28,229 | [3] | 28,229 | ||||||
Issuance of shares of common stock, net of shares withheld for taxes | (7,532) | 3 | (7,535) | ||||||
Repurchase and retirement of shares of common stock | (100,000) | (25) | (99,975) | ||||||
Share-based compensation expense | 7,012 | 7,012 | |||||||
Ending balance at Dec. 31, 2017 | 845,125 | [6] | 512 | 0 | 126,743 | 793,134 | (75,264) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net Income | 233,200 | 233,200 | |||||||
Dividends declared on common stock | (24,171) | (24,171) | |||||||
Other comprehensive income (loss) | (5,366) | (5,366) | |||||||
Issuance of shares of common stock, net of shares withheld for taxes | (3,644) | 1 | (3,645) | ||||||
Repurchase and retirement of shares of common stock | (102,500) | (28) | (102,472) | ||||||
Share-based compensation expense | 5,350 | 5,350 | |||||||
Ending balance at Dec. 31, 2018 | $ 947,994 | $ 485 | $ 0 | $ 128,448 | $ 912,201 | $ (93,140) | |||
[1] | Common Stock—$0.01 par value; 118,000,000 authorized as of December 31, 2018 and 2017. | ||||||||
[2] | Special Preferred Stock—$0.01 par value; 2,000,000 shares authorized as of December 31, 2018 and 2017 | ||||||||
[3] | Amounts adjusted for the adoption of ASC No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||
[4] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||
[5] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||
[6] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance of common stock related to stock awards (in shares) | 182,843 | 247,852 | 412,857 |
Repurchase and retirement of shares (in shares) | 2,816,016 | 2,509,633 | 379,062 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 118,000,000 | 118,000,000 | |
Special preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Special preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Cash Flows From Operating Activities: | ||||||
Net Income | $ 233,200 | $ 330,610 | [1],[2],[3] | $ 224,120 | [1],[2],[3] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Amortization of intangible assets | 1,038 | 1,224 | [3] | 2,322 | [3] | |
Depreciation and amortization of property and equipment | 139,401 | 112,627 | [3] | 107,041 | [3] | |
Deferred income taxes, net | 35,433 | (1,095) | [3] | 29,439 | [3] | |
Impairment of assets | 0 | 0 | [3] | 49,361 | [3] | |
Stock compensation | 5,349 | 7,286 | [3] | 8,424 | [3] | |
Loss on termination of lease | (1,201) | 0 | [3] | 0 | [3] | |
Loss on extinguishment of debt | 0 | 0 | [2],[3] | 10,473 | [2],[3] | |
Amortization of debt discounts and issuance costs | 4,482 | 5,252 | [3] | 5,579 | [3] | |
Post retirement payments | (56,663) | (153,959) | [3] | (60,931) | [3] | |
Pension and postretirement benefit cost | 9,350 | 29,580 | [3] | 34,569 | [3] | |
Partial settlement and curtailment loss | 0 | 45,585 | [3] | 0 | [3] | |
Change in unrealized (gain) loss on fuel derivative contracts | 19,973 | (3,845) | [3] | (47,678) | [3] | |
Foreign currency debt remeasurement (gain)/loss | 380 | 0 | [3] | 0 | [3] | |
Other, net | 8,610 | 11,170 | [3] | 2,172 | [3] | |
Changes in operating assets and liabilities: | ||||||
Accounts receivable, net | 21,132 | (40,782) | [3] | (18,954) | [3] | |
Spare parts and supplies, net | (4,701) | (21,964) | [3] | (5,259) | [3] | |
Prepaid expenses and other current assets | (149) | 1,915 | [3] | (13,138) | [3] | |
Accounts payable | 2,926 | 21,964 | [3] | 12,306 | [3] | |
Air traffic liability | 7,830 | 57,474 | [3] | 35,311 | [3] | |
Other accrued liabilities | 18,329 | (24,629) | [3] | 47,183 | [3] | |
Frequent flyer deferred revenue | 20,668 | 28,662 | [3] | 36,290 | [3] | |
Other assets and liabilities, net | 43,121 | (75,940) | [3] | (21,586) | [3] | |
Net cash provided by operating activities | 508,508 | 331,135 | [3] | 437,044 | [3] | |
Cash Flows From Investing Activities: | ||||||
Additions to property and equipment, including pre-delivery deposits | (486,777) | (341,515) | [3] | (178,838) | [3] | |
Proceeds from purchase assignment and leaseback transactions | 87,000 | 33,000 | [3] | 31,851 | [3] | |
Proceeds from disposition of equipment | 46,714 | 941 | [3] | 16 | [3] | |
Purchases of investments | (210,836) | (231,393) | [3] | (260,987) | [3] | |
Sales of investments | 247,423 | 244,261 | [3] | 253,855 | [3] | |
Net cash used in investing activities | (316,476) | (294,706) | [3] | (154,103) | [3] | |
Cash Flows From Financing Activities: | ||||||
Long-term borrowings | 86,500 | 0 | [3] | 0 | [3] | |
Repayments of long-term debt and capital lease obligations | (68,245) | (61,486) | [3] | (214,025) | [3] | |
Dividend payments | (24,171) | (6,261) | [3] | 0 | [3] | |
Repurchases and conversion of convertible notes | 0 | 0 | [3] | (1,426) | [3] | |
Repurchases of common stock | (102,500) | (100,000) | [3] | (13,763) | [3] | |
Debt issuance costs | (3,350) | (188) | [3] | (1,653) | [3] | |
Payment for taxes withheld for stock compensation | (3,642) | (7,532) | [3] | (7,585) | [3] | |
Net cash used in financing activities | (115,408) | (175,467) | [3] | (238,452) | [3] | |
Net increase (decrease) in cash and cash equivalents | 76,624 | (139,038) | [3] | 44,489 | [3] | |
Cash, cash equivalents, and restricted cash—Beginning of Year | [3] | 191,953 | 330,991 | 286,502 | ||
Cash, cash equivalents, and restricted cash—End of Year | $ 268,577 | $ 191,953 | [3] | $ 330,991 | [3] | |
[1] | Amounts adjusted for the adoption of ASC No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | |||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | |||||
[3] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Hawaiian Holdings, Inc. (the Company, Holdings, we, us and our) and its direct wholly-owned subsidiary, Hawaiian Airlines, Inc. (Hawaiian), are incorporated in the State of Delaware. The Company's primary asset is its sole ownership of all issued and outstanding shares of common stock of Hawaiian. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including its principal subsidiary, Hawaiian, through which the Company conducts substantially all of its operations. All significant inter-company balances and transactions have been eliminated upon consolidation. The Company reclassified certain prior period amounts to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. Cash Equivalents Cash equivalents consist of short-term, highly liquid investments with an original maturity of three months or less at the date of purchase. Restricted Cash Restricted cash consists of cash held as collateral by institutions that process our credit card transactions for advanced ticket sales. Short Term Investments Investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. All short-term investments, which consists of debt securities, are classified as available-for-sale, and realized gains and losses are recorded using the specific identification method. Changes in market value, excluding other-than-temporary impairments, are reflected in accumulated other comprehensive income (loss). Spare Parts and Supplies Spare parts and supplies are valued at average cost, and primarily consist of expendable parts for flight equipment and other supplies. An allowance for obsolescence of expendable parts is provided over the estimated useful lives of the related aircraft and engines for spare parts expected to be on hand at the date the aircraft are retired from service. These allowances are based on management's estimates and are subject to change. Property, Equipment and Depreciation Property and equipment are stated at cost and depreciated on a straight-line basis to their estimated residual values over the asset's estimated useful life. Depreciation begins when the asset is placed into service. Aircraft and related parts begin depreciating on the aircraft's first revenue flight. Estimated useful lives and residual values of property and equipment are as follows: Boeing 717-200 aircraft and engines 7 - 11 years, 7 - 34% residual value Boeing 767-300 aircraft and engines (1) Through retirement in 2019 Airbus A330-200 aircraft and engines 25 years, 10% residual value Airbus A321neo aircraft and engines 25 years, 10% residual value ATR turboprop aircraft and engines 10 years, 15% residual value Flight and ground equipment under capital lease Shorter of lease term or useful life Major rotable parts Average lease term or useful life for related aircraft, 10% - 15% residual value Improvements to leased flight equipment and the cargo maintenance hangar Shorter of lease term or useful life Facility leasehold improvements Shorter of lease term, including assumed lease renewals when renewal is economically compelled at key airports, or useful life Furniture, fixtures and other equipment 3 - 7 years, no residual value Capitalized software 3 - 7 years, no residual value (1) The Company will retire its Boeing 767-300 aircraft and flight equipment in the first quarter of 2019. Additions and modifications that significantly enhance the operating performance and/or extend the useful lives of property and equipment are capitalized and depreciated over the lesser of the remaining useful life of the asset or the remaining lease term, as applicable. Expenditures that do not improve or extend asset lives are charged to expense as incurred. Pre-delivery deposits are capitalized when paid. Aircraft under capital leases are recorded at an amount equal to the present value of minimum lease payments utilizing the Company's incremental borrowing rate at lease inception and amortized on a straight-line basis over the lesser of the remaining useful life of the aircraft or the lease term. The amortization is recorded in depreciation and amortization expense on the Consolidated Statement of Operations. Accumulated amortization of aircraft and other capital leases was $90.5 million and $70.9 million as of December 31, 2018 and 2017 , respectively. The Company capitalizes certain costs related to the acquisition and development of computer software and amortizes these costs using the straight-line method over the estimated useful life of the software. The net book value of computer software, which is included in Other property and equipment on the consolidated balance sheets, was $27.9 million and $34.6 million at December 31, 2018 and 2017 , respectively. The value of construction in progress, primarily consisting of aircraft in 2018 and aircraft facilities in 2017 , which is included in property and equipment on the consolidated balance sheets, was $47.3 million and $135.3 million as of December 31, 2018 and 2017 , respectively. Amortization expense related to computer software was $14.6 million , $12.3 million and $9.7 million for the years ended December 31, 2018 , 2017 , and 2016 respectively. Aircraft Maintenance and Repair Costs Maintenance and repair costs for owned and leased flight equipment, including the overhaul of aircraft components, are charged to operating expenses as incurred. Engine overhaul costs covered by power-by-the-hour arrangements are paid and expensed as incurred or expensed on a straight-line basis and are based on the amount of hours flown per contract. Under the terms of these power-by-the-hour agreements, the Company pays a set dollar amount per engine hour flown on a monthly basis and the third-party vendor assumes the obligation to repair the engines at no additional cost, subject to certain specified exclusions. As of December 31, 2018 and 2017, the Company had approximately $95.0 million and $109.3 million , respectively in prepayments to one of its power-by-the-hour vendors, which is recoverable over the next four years . Additionally, although the Company's aircraft lease agreements specifically provide that it is responsible for maintenance of the leased aircraft, the Company pays maintenance reserves to the aircraft lessors that are applied toward the cost of future maintenance events. These reserves are calculated based on a performance measure, such as flight hours, and are available for reimbursement to the Company upon the completion of the maintenance of the leased aircraft. However, reimbursements are limited to the available reserves associated with the specific maintenance activity for which the Company requests reimbursement. Under certain aircraft lease agreements, the lessor is entitled to retain excess amounts on deposit at the expiration of the lease, if any; whereas at the expiration of certain other existing aircraft lease agreements any such excess amounts are returned to the Company, provided that it has fulfilled all of its obligations under the lease agreements. The maintenance reserves paid under the lease agreements do not transfer either the obligation to maintain the aircraft or the cost risk associated with the maintenance activities to the aircraft lessor. In addition, the Company maintains the right to select any third-party maintenance provider. Maintenance reserve payments that are expected to be recovered from lessors are recorded as deposits in the Consolidated Balance Sheets as an asset until it is less than probable that any portion of the deposit is recoverable. In addition, payments of maintenance reserves that are not substantially and contractually related to the maintenance of the leased assets are expensed as incurred. Any costs that are substantially and contractually unrelated to the maintenance of the leased asset are considered to be unrecoverable. In order to properly account for the costs that are related to the maintenance of the leased asset, the Company bifurcates its maintenance reserves into two groups and expenses the proportionate share that is expected to be unrecoverable. Goodwill and Indefinite-lived Intangible Assets Goodwill and intangible assets with indefinite lives are not amortized. We apply a fair value-based impairment test to the carrying value of goodwill and indefinite-lived intangible assets on an annual basis and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. We assess the value of our goodwill and indefinite-lived assets under either a qualitative or quantitative approach. Goodwill. When the Company evaluates goodwill for impairment using a quantitative approach, it estimates the fair value of the reporting unit by considering the market capitalization. If the reporting unit's fair value exceeds its carrying value, no further testing is required. If, however, the reporting unit's carrying value exceeds its fair value, the Company then determines the amount of the impairment charge, if any. The Company recognizes an impairment charge if the carrying value of the reporting unit's goodwill exceeds its estimated fair value. Intangible Assets. The Company assesses its indefinite-lived assets under a qualitative approach. The Company analyzes market factors to determine if events and circumstances have affected the fair value of the indefinite-lived intangible assets. If the Company determines that it is more likely than not that the asset value may be impaired, it then uses the quantitative approach to assess the asset's fair value and the amount of the impairment. The Company performs the quantitative impairment test for indefinite-lived intangible assets by comparing the asset's fair value to its carrying value. Impairment of Long-Lived Assets and Finite-lived Intangible Assets Long-lived assets used in operations, consisting principally of property and equipment and finite-lived intangible assets, are tested for impairment when events or changes in circumstances indicate, in management's judgment, that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amount. When testing for impairment management considers market trends, the expected useful lives of the assets, changes in economic conditions, recent transactions involving sales of similar assets and, if necessary, estimates of future undiscounted cash flows. To determine whether impairment exists for aircraft used in operations, assets are grouped at the fleet-type level (the lowest level for which there are identifiable cash flows) and future cash flows are estimated based on projections of capacity, passenger mile yield, fuel costs, labor costs and other relevant factors. If, at any time, management determines the net carrying value of an asset is not recoverable, the amount is reduced to its fair value during the period in which such determination is made. Any changes in the estimated useful lives of these assets will be accounted for prospectively. In 2016, a $49.4 million impairment charge was recorded as the Company determined that the Boeing 767-300 fleet and related assets were impaired. See Note 11 for further details. Operating Leases The Company leases aircraft, engines, airport terminal facilities, office space, and other equipment under operating leases. Some of these lease agreements include escalation clauses and renewal options. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses on a straight-line basis over the terms of the leases in the Consolidated Statements of Operations. Rental expense for operating leases totaled $201.1 million , $208.0 million , and $193.0 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Leased Aircraft Return Costs Costs associated with the return of leased aircraft are accrued when it is probable that a payment will be made and that amount is reasonably estimable, usually no sooner than after the last scheduled maintenance event prior to lease return. Any accrual is based on the time remaining on the lease, planned aircraft usage, and the provisions included in the lease agreement, although the actual amount due to any lessor upon return will not be known with certainty until lease termination. As leased aircraft are returned, any payments are charged against the established accrual. The accrual is part of current and long-term liabilities and was not material as of December 31, 2018 and 2017. The expense is included in Aircraft rent in the consolidated statements of operations. Revenue Recognition Passenger revenue. The majority of the Company's revenue is derived from transporting passengers on our aircraft. The Company accounts for revenue in accordance with ASC 606, which was adopted on January 1, 2018, using the full retrospective method. See Recently Adopted Accounting Pronouncements section below for further discussion of adoption, including the impact on our previously issued financial statements. The Company's primary operations are that of its wholly-owned subsidiary, Hawaiian. Principally all operations of Hawaiian either originate and/or end in the State of Hawai'i. The management of such operations is based on a system-wide approach due to the interdependence of Hawaiian's route structure in its various markets. As Hawaiian offers only one significant line of business (i.e., air transportation), management has concluded that it has only one segment. The Company's operating revenues by geographic region (as defined by the Department of Transportation, DOT) are summarized below: Year Ended December 31, 2018 2017 2016 (in thousands) Domestic $ 2,071,861 $ 1,976,971 $ 1,874,039 Pacific 765,550 698,174 558,374 Total operating revenue $ 2,837,411 $ 2,675,145 $ 2,432,413 Hawaiian attributes operating revenue by geographic region based on the destination of each flight segment. Hawaiian's tangible assets consist primarily of flight equipment, which are mobile across geographic markets, and, therefore, have not been allocated to specific geographic regions. Passenger & Other revenue - Generally, the Company’s contracts with customers have two principal performance obligations, which are the promise to provide transportation to the passenger and the frequent flyer miles earned on the flight. In addition, the Company often charges additional fees for items such as baggage and in-flight entertainment. Such items are not capable of being distinct from the transportation provided because the customer can only benefit from the services during the flight. The transportation performance obligation, including the redemption of HawaiianMiles awards for flights, is satisfied, and revenue is recognized, as transportation is provided. In some instances, tickets sold by the Company can include a flight segment on another carrier which is referred to as an interline segment. In this situation, the Company acts as an agent for the other carrier and revenue is recognized net of cost in other revenue. Tickets sold by other airlines where the Company provides the transportation are recognized as passenger revenue at the estimated value to be billed to the other airline when travel is provided. Differences between amounts billed and the actual amounts may be rejected and rebilled or written off if the amount recorded was different from the original estimate. Other operating revenue consists of cargo revenue, ground handling fees, commissions, and fees earned under certain joint marketing agreements with other companies. These amounts are recognized when the service is provided. Year Ended December 31, 2018 2017 2016 Passenger Revenue by Type (in thousands) Passenger revenue, excluding frequent flyer $ 2,454,811 $ 2,351,062 $ 2,146,258 Frequent flyer revenue, transportation component 147,982 135,765 125,429 Passenger Revenue $ 2,602,793 $ 2,486,827 $ 2,271,687 Other revenue (e.g. cargo and other miscellaneous) $ 163,140 $ 142,172 $ 115,379 Frequent flyer revenue, marketing and brand component 71,478 46,146 45,347 Other Revenue $ 234,618 $ 188,318 $ 160,726 For the twelve months ended December 31, 2018 , 2017 , and 2016 , the Company's total revenue was $2.8 billion , $2.7 billion , and $2.4 billion , respectively. As of December 31, 2018 and 2017 , the Company's Air traffic liability balance as it relates to passenger tickets (excluding frequent flyer) was $427.8 million and $421.6 million , respectively, which represents future revenue that is expected to be realized over the next 12 months . During the twelve months ended December 31, 2018 , 2017 , and 2016 , the amount of revenue recognized that was included in Air traffic liability as of the beginning of the respective period was $421.0 million , $363.9 million , and $328.7 million , respectively. Passenger revenue associated with unused tickets, which represent unexercised passenger rights, is recognized in proportion to the pattern of rights exercised by related passengers (e.g. scheduled departure dates). To calculate the portion to be recognized as revenue in the period, the Company utilizes historical information and applies the trend rate to the current air traffic liability balances for that specific period. Certain governmental taxes are imposed on the Company's ticket sales through a fee included in ticket prices. The Company collects these fees and remits them to the appropriate government agency. Management has elected (via a practical expedient election) to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer, e.g., sales, use, value added, and certain excise taxes. These fees have been presented on a net basis in the accompanying Consolidated Statements of Operations and recorded as a liability until remitted. Frequent Flyer Revenue. Hawaiian's frequent flyer travel award program provides a variety of awards to program members based on accumulated mileage. ASC 606 requires 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. Ticket consideration received is allocated between the performance obligations, primarily travel and miles earned by passengers. The allocated value of the miles is deferred until the free travel or other award is used by the passenger, at which time it is included in passenger revenue. The value of the ticket used in the determination of the estimated selling price is based on the historical value of equivalent flights to those provided for loyalty awards and the related miles redeemed to obtain that award adjusted for breakage or fulfillment. The equivalent ticket value (ETV) includes a fulfillment discount (breakage) to reflect the value of the award ticket over the number of miles that, based on historical experience, will be needed to obtain the award. On a quarterly basis, the Company calculates the ETV by analyzing the fares of similar tickets for the prior 12 months, considering cabin class and geographic region. The Company also sells mileage credits to companies participating in our frequent flyer program These contracts generally include multiple performance obligations, including the transportation that will ultimately be provided when the mileage credits are redeemed and marketing and brand related activities. The marketing and brand performance obligations are effectively provided each time a HawaiianMiles member uses the co-branded credit card and monthly access to customer lists and marketing is provided, which corresponds to the timing of when the Company issues or is obligated to issue the mileage credits to the HawaiianMiles member. Therefore, the Company recognizes revenue for the marketing and brand performance obligations when HawaiianMiles members use their co-brand credit card and the resulting mileage credits are issued to them, which best correlates with the Company’s performance in satisfying the obligation. During the first quarter of 2018, the Company amended its partnership with Barclaycard US, Hawaiian's co-branded credit card partner. Management determined that the amendment should be accounted for as a termination of the existing contract and the creation of a new contract under ASC 606 and the relative selling price was determined for each performance obligation of the new agreement. The new agreement continues through 2024 and includes improved economics and enhanced product offerings for our Barclay's co-branded cardholders. The amended agreement did not change, and includes the following performance obligations; (i) transportation that will ultimately be provided when mileage credits are redeemed (transportation), (ii) the Hawaiian Airlines brand and access to its members lists (collectively, brand performance), (iii) marketing, and (iv) airline benefits to cardholders, including discounts and anniversary travel benefits, baggage waivers and inflight purchase credits. The Company determined the relative fair value of each performance obligation by estimating the selling prices of the deliverables by considering discounted cash flows using multiple inputs and assumptions, including: (1) the expected number of miles to be awarded and redeemed; (2) the estimated weighted average equivalent ticket value, adjusted by a fulfillment discount; (3) the estimated total annual cardholder spend; (4) an estimated royalty rate for the Hawaiian portfolio; and (5) the expected use of each of the airline benefits. The overall consideration received is allocated to the performance obligations based on their relative selling prices. The transportation performance obligation is deferred and recognized as passenger revenue when the transportation is expected to be provided. Accounting for mileage sales to co-branded partners involves the use of various techniques to estimate revenue. To determine the total estimated transaction price, the Company forecasts future credit card activity using historical information. The relative selling price is determined using management’s standalone estimated selling price of each performance obligation. The objective of using the estimated selling price based methodology is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. Accordingly, the Company determines the best estimate of selling price by considering multiple inputs and methods including, but not limited to, discounted cash flows, brand value, published selling prices, number of miles awarded and number of miles redeemed. The Company estimates the selling price of miles using an ETV adjusted for a fulfillment discount as described above. The Company's frequent flyer liability is recorded in Air traffic liability (short-term) and Noncurrent frequent flyer deferred revenue in the Company's consolidated balance sheet based on estimated and expected redemption patterns using historical data and analysis. As of December 31, 2018 and 2017 , the balances were as follows: As of December 31, 2018 2017 (in thousands) Air traffic liability (current portion of frequent flyer deferred revenue) $ 168,570 $ 161,757 Noncurrent frequent flyer deferred revenue 163,619 149,764 Total frequent flyer liability $ 332,189 $ 311,521 Miles expire after 18 months of member account inactivity. The Company reviews its breakage estimates annually based upon the latest available information regarding redemption and expiration patterns (e.g., credit card and non-credit card holders). The Company’s estimate of the expected expiration of miles requires significant management judgment. Current and future changes to expiration assumptions or to the expiration policy, or to program rules and program could affect the estimated value of a mile. Accounts Receivable Accounts receivable primarily consist of amounts due from credit card companies, non-airline partners, and cargo transportation customers. The Company provides an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical chargebacks, write-offs, bankruptcies and other specific analyses. Bad debt expense was not material in any period presented. Costs to obtain or fulfill a contract In order for the Company to provide transportation to its customers, the Company incurs fulfillment costs (booking fees, credit card fees, and commission/selling costs), which are deferred until the period in which the flight occurs. As of December 31, 2018 and 2017 , the Company's asset balance associated with these costs were $16.3 million and $16.7 million , respectively. During the twelve months ended December 31, 2018 , 2017 , and 2016 , expenses related to these costs totaled to $96.0 million , $95.5 million , and $94.3 million , respectively. To determine the amount to capitalize and expense at the end of each period, the Company uses historical sales data and estimates the amount associated with unflown tickets. Pension and Postretirement and Postemployment Benefits The Company accounts for its defined benefit pension and other postretirement and postemployment plans in accordance with ASC 715, Compensation—Retirement Benefits (ASC 715), which requires companies to measure their plans' assets and obligations to determine the funded status at fiscal year-end, reflect the funded status in the statement of financial position as an asset or liability, and recognize changes in the funded status of the plans in comprehensive income during the year in which the changes occur. Pension and other postretirement and postemployment benefit expenses are recognized on an accrual basis over each employee's service periods. Pension expense is generally independent of funding decisions or requirements. The Company uses the corridor approach in the valuation of its defined benefit pension and other postretirement and postemployment plans. The corridor approach defers all actuarial gains and losses resulting from variances between actual results and actuarial assumptions. These unrecognized actuarial gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the expected average remaining service period of active plan participants for the open plans and is amortized over the expected average remaining lifetime of inactive participants for plans whose population is “all or almost all” inactive. Advertising Costs Advertising costs are expensed when incurred. Advertising expense was $19.3 million , $16.6 million and $18.3 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Capitalized Interest Interest is capitalized upon the payment of predelivery deposits for aircraft and engines, and is depreciated over the estimated useful life of the asset from service inception date. Share-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value of the awards are estimated using the following: (1) option-pricing models for grants of stock options or (2) fair value at the measurement date (usually the grant date) for awards of stock subject to service and / or performance-based vesting. The resulting cost is recognized as compensation expense over the period of time during which an employee is required to provide services to the Company (the service period) in exchange for the award, the service period generally being the vesting period of the award. The Company's policy is to recognize forfeitures as they occur. Financial Derivative Instruments The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global aircraft fuel prices, interest rates and foreign currency exchange rates. The following table summarizes the accounting treatment of the Company's derivative contracts: Classification of Unrealized Gains (Losses) Derivative Type Accounting Designation Classification of Realized Gains and Losses Effective Portion Ineffective Portion Interest rate contracts Designated as cash flow hedges Interest expense and amortization of debt discounts and issuance costs AOCI Nonoperating income (expense) Foreign currency exchange contracts Designated as cash flow hedges Passenger revenue AOCI Nonoperating income (expense) Fuel hedge contracts Not designated as hedges Gains (losses) on fuel derivatives Change in fair value is recorded in nonoperating income (expense) Foreign currency exchange contracts Not designated as hedges Nonoperating income (expense), Other Change in fair value is recorded in nonoperating income (expense) If the Company terminates a derivative designated for hedge accounting under ASC 815, prior to its contractual settlement date, then the cumulative gain or loss recognized in AOCI at the termination date remains in AOCI until the forecasted transaction occurs. In a situation where it becomes probable that a hedged forecasted transaction will not occur, any gains and/or losses that have been recorded to AOCI would be required to be immediately reclassified into earnings. All cash flows associated with purchasing and settling derivatives are classified as operating cash flows in the Consolidated Statements of Cash Flows. Recently Adopted Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The standard focuses on a targeted improvement to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the Tax Act) enacted on December 22, 2017 from accumulated other comprehensive income to retained earnings. The Company elected to early adopt the standard in the year ended December 31, 2018 and reclassified tax benefit of $12.5 million from accumulated other comprehensive income to accumulated income in the Consolidated Balance Sheets. In May 2014, the Financial Accounting Standards Board (FASB) issued 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 replaced most existing revenue recognition guidance in GAAP and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted the standard as of January 1, 2018, utilizing the full retrospective transition method, which required the Company to restate prior reporting periods presented. The most significant impact of the standard relates to the accounting for the Company's frequent flyer travel award program. This change, as well as other less significant changes, are described below: • Frequent flyer - The standard requires 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 previously applied. The allocated value of miles earned through flights and sold to partners is recognized at the time the free travel or other award is redeemed by the passenger. Previously, the transportation element associated with sold miles was |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Reclassifications out of accumulated other comprehensive loss by component is as follows: Year ended December 31, Details about accumulated other comprehensive loss components 2018 2017 2016 Affected line items in the statement where net income is presented (in thousands) Derivatives designated as hedging instruments under ASC 815 Foreign currency derivative (gains) losses, net $ (1,380 ) $ (2,391 ) $ 196 Passenger revenue Interest rate derivative losses, net — — 944 Interest expense Total before tax (1,380 ) (2,391 ) 1,140 Tax expense (benefit) 339 906 (438 ) Total, net of tax $ (1,041 ) $ (1,485 ) $ 702 Amortization of defined benefit pension items Actuarial loss $ 2,708 $ 8,792 $ 7,730 Nonoperating Income (Expense), Other, net Prior service cost 225 254 227 Nonoperating Income (Expense), Other, net Partial settlement and curtailment loss — 10,384 — Other nonoperating special items Loss on plan termination — 35,201 — Other nonoperating special items Total before tax 2,933 54,631 7,957 Tax benefit (671 ) (21,519 ) (3,048 ) Total, net of tax $ 2,262 $ 33,112 $ 4,909 Short-term investments Realized (gain) loss on sales of investments, net 107 (32 ) (108 ) Nonoperating Income (Expense), Other, net Total before tax 107 (32 ) (108 ) Tax expense (26 ) 12 41 Total, net of tax 81 (20 ) (67 ) Total reclassifications for the period $ 1,302 $ 31,607 $ 5,544 A rollforward of the amounts included in accumulated other comprehensive loss, net of taxes, is as follows: Year ended December 31, 2018 Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ 1,249 $ (75,953 ) $ (560 ) $ (75,264 ) Reclassification of stranded tax effects (a) 269 (12,659 ) (120 ) (12,510 ) Other comprehensive income (loss) before reclassifications, net of tax 2,840 (9,505 ) (3 ) (6,668 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (1,041 ) 2,262 81 1,302 Net current-period other comprehensive income (loss), net of tax 1,799 (7,243 ) 78 (5,366 ) Ending balance $ 3,317 $ (95,855 ) $ (602 ) $ (93,140 ) (a) Amounts represent the reclassification from AOCI to RE of the stranded tax effectives resulting from the enactment of the Tax Act and adoption of ASU 2018-02. Year ended December 31, 2017 Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ 7,071 $ (110,202 ) $ (362 ) $ (103,493 ) Other comprehensive income (loss) before reclassifications, net of tax (4,337 ) 1,137 (178 ) (3,378 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (1,485 ) 33,112 (20 ) 31,607 Net current-period other comprehensive income (loss), net of tax (5,822 ) 34,249 (198 ) 28,229 Ending balance $ 1,249 $ (75,953 ) $ (560 ) $ (75,264 ) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
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. Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material. The following table shows our computation of basic and diluted earnings per share: Year Ended December 31, 2018 2017 2016 (in thousands, except for per share data) Numerator: Net Income $ 233,200 $ 330,610 $ 224,120 Denominator: Weighted average common shares outstanding—Basic 50,338 53,074 53,502 Assumed exercise of stock options and awards 150 339 450 Assumed exercise of convertible note premium — — 6 Weighted average common shares outstanding—Diluted 50,488 53,413 53,958 Net Income Per Common Stock Share: Basic $ 4.63 $ 6.23 $ 4.19 Diluted $ 4.62 $ 6.19 $ 4.15 |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Investments [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). The following is a summary of short-term investments held as of December 31, 2018 and 2017 : December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate debt $ 142,748 $ 49 $ (695 ) $ 142,102 U.S. government and agency debt 37,163 3 (59 ) 37,107 Municipal bonds 9,903 — (32 ) 9,871 Other fixed income securities 43,183 2 (24 ) 43,161 Total short-term investments $ 232,997 $ 54 $ (810 ) $ 232,241 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate debt $ 165,610 $ 8 $ (535 ) $ 165,083 U.S. government and agency debt 59,054 1 (215 ) 58,840 Municipal bonds 21,517 — (104 ) 21,413 Other fixed income securities 23,973 1 (13 ) 23,961 Total short-term investments $ 270,154 $ 10 $ (867 ) $ 269,297 Contractual maturities of short-term investments as of December 31, 2018 are shown below. Under 1 Year 1 to 5 Years Total (in thousands) Corporate debt $ 69,957 $ 72,145 $ 142,102 U.S. government and agency debt 28,164 8,943 37,107 Municipal bonds 8,288 1,583 9,871 Other fixed income securities 35,990 7,171 43,161 Total short-term investments $ 142,399 $ 89,842 $ 232,241 The Company classifies investments as current assets as these securities are available for use in its current operations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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 in which there is little or no market data and that are significant to the fair value of the assets or liabilities. The following tables present information about the Company's financial assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements as of December 31, 2018 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 121,154 $ 42,175 $ 78,979 $ — Restricted cash — — — — Short-term investments 232,241 — 232,241 — Fuel derivative contracts: 1,572 — 1,572 — Foreign currency derivatives 4,579 — 4,579 — Total assets measured at fair value $ 359,546 $ 42,175 $ 317,371 $ — Foreign currency derivatives 1,347 — 1,347 — Total liabilities measured at fair value $ 1,347 $ — $ 1,347 $ — Fair Value Measurements as of December 31, 2017 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 62,310 $ 27,807 $ 34,503 $ — Restricted cash 1,000 1,000 — — Short-term investments 269,297 — 269,297 — Fuel derivative contracts: Crude oil call options 20,272 — 20,272 — Jet fuel swaps 336 — 336 — Foreign currency derivatives 4,300 — 4,300 — Total assets measured at fair value $ 357,515 $ 28,807 $ 328,708 $ — Foreign currency derivatives 1,713 — 1,713 — Total liabilities measured at fair value $ 1,713 $ — $ 1,713 $ — Cash equivalents. The Company’s Level 1 cash equivalents consist of money market securities. The carrying amounts approximate fair value because of the short-term maturity of these assets and Level 2 cash equivalents consist of U.S. agency bonds, mutual funds, and commercial paper. These instruments are valued using quoted prices for similar assets in active markets. Restricted cash . The Company’s restricted cash consist of money market securities. Short-term investments. Short-term investments include corporate debt, U.S. government and agency debt, municipal bonds, and other fixed income securities. 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, 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, fuel price curves and measures of volatility, among others. Foreign currency derivatives. The Company’s foreign currency derivatives consist of Japanese Yen and Australian Dollar forward contracts and are valued based primarily on data readily observable in public markets. The table below presents the Company's debt (excluding obligations under capital leases and financing obligations) measured at fair value: Fair Value of Debt December 31, 2018 December 31, 2017 Carrying Fair Value Carrying Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (in thousands) (in thousands) $ 467,760 $ 461,805 $ — $ — $ 461,805 $ 433,072 $ 444,099 $ — $ — $ 444,099 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 obligations. 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 | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivative Instruments | Financial Derivative Instruments The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global fuel prices, interest rates and foreign currencies. Fuel Risk Management The Company's operations are inherently dependent upon the price and availability of aircraft fuel. To manage economic risks associated with fluctuations in aircraft fuel prices, the Company periodically enters into derivative financial instruments. The Company uses a combination of derivative contracts to hedge its aircraft fuel expense. As of December 31, 2018 , the Company's portfolio comprised of crude oil call options, which were not designated as hedges under ASC Topic 815, Derivatives and Hedging (ASC 815), for hedge accounting treatment. As a result, any changes in fair value of these derivative instruments are adjusted through other nonoperating income (expense) in the period of change. The following table reflects the amount of realized and unrealized gains and losses recorded as nonoperating income (expense) in the Consolidated Statements of Operations. Year Ended December 31, 2018 2017 2016 (in thousands) Gains (losses) realized at settlement $ 25,563 $ (534 ) $ (27,572 ) Prior period unrealized amounts (11,792 ) (7,946 ) 39,731 Unrealized gains (losses) that will settle in future periods (8,181 ) 11,792 7,947 Gains on fuel derivatives recorded as Nonoperating income (expense) $ 5,590 $ 3,312 $ 20,106 Foreign Currency Exchange Rate Risk Management The Company is subject to foreign currency exchange rate risk due to revenues and expenses denominated in foreign currencies, with the primary exposures being the Japanese Yen and Australian Dollar. To manage exchange rate risk, the Company executes its international revenue and expense transactions in the same foreign currency to the extent practicable. The Company enters into foreign currency forward contracts to further manage the effects of fluctuating exchange rates. The effective portion of the gain or loss is reported as a component of AOCI and reclassified into earnings in the same period in which the related sales are recognized as passenger revenue. The effective portion of the foreign currency forward contracts represents the change in fair value of the hedge that offsets the change in the fair value of the hedged item. To the extent the change in the fair value of the hedge does not perfectly offset the change in the fair value of the hedged item, the ineffective portion of the hedge is immediately recognized as nonoperating income (expense). The Company believes that its foreign currency forward contracts will continue to be effective in offsetting changes in cash flow attributable to the hedged risk. The Company expects to reclassify a net gain of approximately $3.9 million into earnings over the next 12 months from AOCI based on the values at December 31, 2018 . The following tables present the gross fair value of asset and liability derivatives that are designated as hedging instruments under ASC 815 and derivatives that are not designated as hedging instruments under ASC 815, as well as the net derivative positions and location of the asset and liability balances within the Consolidated Balance Sheets. Derivative positions as of December 31, 2018 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 15,933,550 Japanese Yen December 2019 $ 3,922 $ (915 ) $ 3,007 Long-term prepayments and other 4,491,350 Japanese Yen December 2020 633 (292 ) 341 Derivatives not designated as hedges Foreign currency derivatives Other accrued liabilities 832,900 Japanese Yen March 2019 24 (140 ) (116 ) Fuel derivative contracts Prepaid expenses and other 95,256 gallons December 2019 1,572 — 1,572 Derivative positions as of December 31, 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 16,732,375 Japanese Yen December 2018 $ 3,737 $ (1,441 ) $ 2,296 Long-term prepayments and other 4,666,700 Japanese Yen December 2019 546 (195 ) 351 Derivatives not designated as hedges Foreign currency derivatives Other accrued liabilities 866,150 Japanese Yen March 2018 17 (77 ) (60 ) Fuel derivative contracts Prepaid expenses and other 94,332 gallons December 2018 20,608 — 20,608 The following table reflects the impact of cash flow hedges designated for hedge accounting treatment and their location within the Consolidated Statements of Comprehensive Income. (Gain) Loss recognized in AOCI on derivatives (effective portion) (Gain) Loss reclassified from AOCI into income (effective portion) Gain recognized in nonoperating (income) expense (ineffective portion) Year ended December 31, Year ended December 31, Year ended December 31, 2018 2017 2016 2018 2017 2016 2018 2017 2016 (in thousands) Foreign currency derivatives $ (3,766 ) $ 6,983 $ (3,350 ) $ (1,380 ) $ (2,391 ) $ 196 $ — $ — $ — Interest rate derivatives — — 923 — — 944 — — — Risk and Collateral The financial derivative instruments expose the Company to possible credit loss in the event the counterparties to the agreements fail to meet their obligations. To manage such credit risks, the Company (1) selects its counterparties based on past experience and credit ratings, (2) limits its exposure to any single counterparty, and (3) periodically monitors the market position and credit rating of each counterparty. Credit risk is deemed to have a minimal impact on the fair value of the derivative instruments as cash collateral would be provided to or by the counterparties based on the current market exposure of the derivative. The Company's agreements with its counterparties also require the posting of cash collateral in the event the aggregate value of the Company's positions exceeds certain exposure thresholds. The aggregate fair value of the Company's derivative instruments that contain credit-risk related contingent features that are in a net asset position was $4.8 million and a net asset position of $23.2 million as of December 31, 2018 and December 31, 2017 , respectively. ASC 815 requires a reporting entity to elect a policy of whether to offset rights to reclaim cash collateral or obligations to return cash collateral against derivative assets and liabilities executed with the same counterparty under a master netting agreement, or present such amounts on a gross basis. The Company's accounting policy is to present its derivative assets and liabilities on a net basis, including any collateral posted with the counterparty. The Company had no collateral posted with its counterparties as of December 31, 2018 and December 31, 2017 . 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. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following tables summarize the gross carrying values of intangible assets less accumulated amortization, and the useful lives assigned to each asset. As of December 31, 2018 Gross carrying Accumulated Net book value Approximate (in thousands) Favorable aircraft maintenance contracts $ 8,740 $ (8,284 ) $ 456 14 (*) Trade name 13,500 — 13,500 Indefinite Other 1,388 (1,195 ) 193 3 Total intangible assets $ 23,628 $ (9,479 ) $ 14,149 As of December 31, 2017 Gross carrying Accumulated Net book value Approximate (in thousands) Favorable aircraft maintenance contracts $ 8,740 $ (7,708 ) $ 1,032 14 (*) Trade name 13,500 — 13,500 Indefinite Other 1,388 (733 ) 655 3 Total intangible assets $ 23,628 $ (8,441 ) $ 15,187 _______________________________________________________________________________ (*) Weighted average is based on the gross carrying values and estimated useful lives as of June 2, 2005 (the date Hawaiian emerged from bankruptcy). Amortization expense related to the above intangible assets was $1.0 million , $1.2 million , and $2.3 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Amortization of the favorable aircraft maintenance contracts are included in maintenance materials and repairs in the accompanying Consolidated Statements of Operations. As of December 31, 2018 , the estimated future amortization expense for intangible assets was $0.6 million , which will be recognized in 2019 . |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt (including capital and financing lease obligations) net of unamortized discounts is outlined as follows: 2018 2017 (in thousands) Class A EETC, fixed interest rate of 3.9%, semiannual principal and interest payments, remaining balance due at maturity in January 2026(1) $ 245,845 $ 263,864 Class B EETC, fixed interest rate of 4.95%, semiannual principal and interest payments, remaining balance of due at maturity in January 2022(1) 88,608 94,580 Boeing 717-200 Aircraft Facility Agreements, fixed interest rate of 8%, monthly principal and interest payments, remaining balance due at maturity in June 2019(2) 50,376 74,629 Japanese Yen denominated financing, fixed interest rate of 1.05%, quarterly principal and interest payments, remaining balance due at maturity in May 2030 42,116 — Japanese Yen denominated financing, fixed interest rate of 1.01%, semiannual principal and interest payments, remaining balance due at maturity in June 2030 40,815 — Capital & Financing lease obligations (see Note 9) 252,517 149,039 Total debt, capital, and financing lease obligations $ 720,277 $ 582,112 Less: Unamortized debt discount and debt issuance costs (10,496 ) (11,441 ) Current maturities (101,097 ) (59,470 ) Long-Term Debt, less discount, Capital, and Financing Lease Obligations $ 608,684 $ 511,201 _______________________________________________________________________________ (1) The equipment notes underlying these EETCs are the direct obligations of Hawaiian. (2) Aircraft Facility Agreements are secured by aircraft. Enhanced Equipment Trust Certificates (EETC) In 2013, Hawaiian consummated an EETC financing, whereby it created two pass-through trusts, each of which issued pass-through certificates. The proceeds of the issuance of the pass-through certificates were used to purchase equipment notes issued by the Company to fund a portion of the purchase price for six Airbus aircraft, all of which were delivered in 2013 and 2014. The equipment notes are secured by a lien on the aircraft, and the payment obligations of Hawaiian under the equipment notes will be fully and unconditionally guaranteed by the Company. The Company issued the equipment notes to the trusts as aircraft were delivered to Hawaiian. Hawaiian received all proceeds from the pass-through trusts by 2014 and recorded the debt obligation upon issuance of the equipment notes rather than upon the initial issuance of the pass-through certificates. The Company evaluated whether the pass-through trusts formed are variable interest entities ("VIEs") required to be consolidated by the Company under applicable accounting guidance, and determined that the pass-through trusts are VIEs. The Company determined that it does not have a variable interest in the pass-through trusts. Neither the Company nor Hawaiian invested in or obtained a financial interest in the pass-through trusts. Rather, Hawaiian has an obligation to make interest and principal payments on it equipment notes held by the pass-through trusts, which are fully and unconditionally guaranteed by the Company. Neither the Company nor Hawaiian intends to have any voting or non-voting equity interest in the pass-through trusts or to absorb variability from the pass-through trusts. Based on this analysis, the Company determined that it is not required to consolidate the pass-through trusts. Foreign Denominated Financing In 2018, the Company entered into two Japanese Yen denominated financings with a total value of approximately $86.5 million ( ¥9.6 billion ), collateralized by the aircraft financed. Each financing is for a term of 12 years with quarterly or semiannual principal and interest payments, respectively, at fixed installment coupon rates of 1.01% and 1.05% , respectively. The fluctuation in foreign exchange rates at each balance sheet date is reflected within the nonoperating income (expense) line item in the Consolidated Statements of Operations. During 2018, the Company recorded foreign currency unrealized losses of $0.4 million. Debt Extinguishment In 2018 and 2017, the Company had no debt extinguishment activity. In 2016, Hawaiian extinguished $140.5 million of its existing debt under secured financing agreements, which were originally scheduled to mature in 2022 and 2023. This debt extinguishment resulted in a loss of $10.0 million , which is reflected in nonoperating income (expense) in the Consolidated Statement of Operations. Revolving Credit Facility In December 2018, Hawaiian amended and restated the existing credit agreement with Citigroup Global Markets Inc., increasing the secured revolving credit and letter (Revolving Credit Facility) from $225 million to $235 million . This Revolving Credit Facility will mature in December 2022 and has a 12 -month renewal option. This was accounted for as a modification of the existing agreement and approximately $0.6 million in unamortized costs will be amortized over the amended term along with additional issuance costs for the renewal of $2.0 million . Hawaiian may, from time to time, grant liens on certain eligible account receivables, aircraft, spare engines, ground support equipment and route authorities, as well as cash and certain cash equivalents, in order to secure its outstanding obligations under the Revolving Credit Facility. Indebtedness under the Revolving Credit Facility will bear interest, at a per annum rate based on, at Hawaiian's option: (1) a variable rate equal to the London interbank offer rate plus a margin of 2.0% ; or (2) Alternate base rate (as defined in the Revolving Credit Facility) plus a margin of 1.0% . Hawaiian is also subject to compliance and liquidity covenants under the Revolving Credit Facility. As of December 31, 2018 , the Company had no outstanding borrowing under the Revolving Credit Facility. Schedule of Maturities of Long-Term Debt As of December 31, 2018 , the scheduled maturities of long-term debt are as follows (in thousands): 2019 $ 81,075 2020 29,597 2021 56,557 2022 63,665 2023 28,466 Thereafter 208,400 $ 467,760 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | Leases As of December 31, 2018 , the Company had lease contracts for 22 of its 66 aircraft. Of the 22 lease contracts, 5 aircraft lease contracts were accounted for as capital leases, with the remaining 17 lease contracts accounted for as operating leases. These aircraft leases have remaining lease terms ranging from approximately less than 1 year to 10 years . As of December 31, 2018 , the scheduled future minimum rental payments under capital leases and operating leases with non-cancellable basic terms of more than one year are as follows: Capital & Financing Leases Operating Leases Aircraft Other Aircraft Other (in thousands) 2019 $ 24,850 $ 7,909 $ 106,448 $ 5,730 2020 24,850 5,908 90,417 5,709 2021 24,850 4,630 74,315 5,846 2022 24,705 4,870 68,208 5,930 2023 21,370 8,207 59,925 5,975 Thereafter 75,891 111,651 159,271 89,699 196,516 143,175 $ 558,584 $ 118,889 Less amounts representing interest (35,502 ) (51,672 ) Present value of minimum capital & financing lease payments $ 161,014 $ 91,503 Maintenance Hangar In November 2016, the Company entered into a lease agreement with the Department of Transportation of the State of Hawai'i to lease a cargo and maintenance hangar at the Daniel K. Inouye International Airport with a lease term of 35 years. As the hangar was not fully constructed, the Company took responsibility of the construction and was responsible for the remainder of the construction costs of $33.3 million . In accordance with the applicable accounting guidance, specifically as it relates to the Company's involvement in the construction of the hangar, the Company was considered the owner of the asset under construction and has recognized an additional $73.0 million asset, with a corresponding lease liability, for the amount previously spent by the lessor. The Company placed the hangar into service in late 2017. The $73.0 million liability is relieved as the Company makes rental payments under the agreement and the $106.3 million asset (the original $73.0 million plus an additional $33.3 million of asset additions), is depreciated over the lease term. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Act was enacted into law, which significantly changed existing U.S. tax law and reduced the U.S. federal corporate tax from 35% to 21%. The Company recognized a one-time benefit of $83.0 million during the year ended December 31, 2017 from the impact of the revaluation of deferred tax assets and liabilities. During the year ended December 31, 2018 , the Company completed its accounting for the effects of the Tax Act and recorded an additional tax benefit of $9.3 million primarily related to deductions for additional pension contributions made in 2018 for the 2017 Plan year. The significant components of income tax expense are as follows: Years Ended December 31, 2018 2017 2016 (in thousands) Current Federal $ 23,438 $ 49,835 $ 94,459 State 9,087 11,471 13,201 $ 32,525 $ 61,306 $ 107,660 Deferred Federal $ 29,782 $ (7,017 ) $ 25,948 State 5,651 5,922 3,491 $ 35,433 $ (1,095 ) $ 29,439 Income tax expense $ 67,958 $ 60,211 $ 137,099 The income tax expense differed from amounts computed at the statutory federal income tax rate as follows: Years Ended December 31, 2018 2017 2016 (in thousands) Income tax expense computed at the statutory federal rate $ 63,243 $ 136,788 $ 126,427 Increase (decrease) resulting from: State income taxes, net of federal tax effect 11,643 11,095 10,714 Nondeductible meals 797 1,146 1,100 Tax Cuts and Jobs Act impact (9,333 ) (82,978 ) — Excess tax benefits from stock issuance (188 ) (5,288 ) — Other 1,796 (552 ) (1,142 ) Income tax expense $ 67,958 $ 60,211 $ 137,099 The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including the reversal of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. The Company's management assesses the realizability of its deferred tax assets, and records a valuation allowance when it is more likely than not that a portion, or all, of the deferred tax assets will not be realized. The components of the Company's deferred tax assets and liabilities were as follows: December 31, 2018 2017 (in thousands) Deferred tax assets: Accumulated pension and other postretirement benefits $ 45,663 $ 54,784 Leases 3,515 4,490 Air traffic liability and frequent flyer liability 70,206 53,102 Partnership deferred revenue 9,697 2,455 State net operating loss carryforwards 2,547 2,547 Accrued compensation 15,843 7,627 Other accrued assets 11,758 11,661 Fuel derivative contracts 2,390 2,156 Other assets 14,031 10,187 Total gross deferred tax assets 175,650 149,009 Less: Valuation allowance (2,547 ) (2,547 ) Net deferred tax assets $ 173,103 $ 146,462 Deferred tax liabilities: Intangible assets $ (3,297 ) $ (3,432 ) Property and equipment, principally accelerated depreciation (324,614 ) (265,293 ) Other liabilities (12,962 ) (11,878 ) Total deferred tax liabilities (340,873 ) (280,603 ) Net deferred tax liability $ (167,770 ) $ (134,141 ) As of December 31, 2018 and 2017, the Company had available for state income tax purposes net operating loss carryforwards of $73.3 million , respectively. The tax benefit of the net operating loss carryforwards as of December 31, 2018 was $2.5 million , all of which has a valuation allowance. In accordance with ASC 740, the Company reviews its uncertain tax positions on an ongoing basis. The Company may be required to adjust its liability as these matters are finalized, which could increase or decrease its income tax expense and effective income tax rates or result in an adjustment to the valuation allowance. The Company does not expect that the unrecognized tax benefit related to uncertain tax positions will significantly change within the next 12 months. The table below reconciles beginning and ending amounts of unrecognized tax benefits related to uncertain tax positions: 2018 2017 2016 (in thousands) Balance at January 1 $ 4,081 $ 3,329 $ — Increases related to prior year tax positions 336 253 2,830 Increases related to current year tax positions 669 499 499 Balance at December 31 $ 5,086 $ 4,081 $ 3,329 The Company's policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes. No interest or penalties related to these positions were accrued as of December 31, 2018 . The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company's federal and state income tax returns for tax years 2015 and beyond remain subject to examination by the Internal Revenue Service. |
Contract Termination Expense an
Contract Termination Expense and Special Items | 12 Months Ended |
Dec. 31, 2018 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Contract Termination Expense and Special Items | Contract Terminations Expense and Special Items Contract terminations expense and special items in the statements of consolidated operations consisted of the following: Year Ended December 31, 2018 2017 2016 (in thousands) Operating Contract terminations expense (1) $ 35,322 $ — $ — Operating special items: Loss on sale of aircraft (3) — 4,771 — Collective bargaining agreement (4)(6) — 18,679 38,781 Impairment charge in connection with its owned Boeing 767-300 fleet and related assets (5) — — 49,361 Termination of Boeing 767-300 engine maintenance contract (7) — — 21,000 Total Contract terminations expense and Operating special items $ 35,322 $ 23,450 $ 109,142 Nonoperating Other nonoperating special items: Partial settlement and curtailment loss (2) $ — $ 10,384 $ — Loss on plan termination (2) — 35,201 — Total Other nonoperating special items $ — $ 45,585 $ — Contract terminations expense (1) During the twelve months ended December 31, 2018, the Company terminated two contracts which incurred a total of $35.3 million in contract terminations expense. The transactions are described below: In February 2018, the Company exercised its right to terminate the aircraft purchase agreement between the Company and Airbus for six Airbus A330-800neo aircraft and the purchase rights for an additional six Airbus A330-800neo aircraft. To terminate the purchase agreement, the Company was obligated to repay Airbus for concessions received relating to a prior firm order, training credits, as well as forfeit the pre-delivery progress payments made towards the flight equipment. The Company recorded a contract terminations expense to reflect a portion of the termination penalty within the Consolidated Statements of Operations. In January 2018, the Company entered into a transaction with its lessor to early terminate and purchase three Boeing 767-300 aircraft leases and concurrently entered into a forward sale agreement for the same three Boeing 767-300 aircraft, including two Pratt & Whitney 4060 engines for each aircraft. These aircraft were previously accounted for as operating leases. In order to exit the lease and purchase the aircraft, the Company agreed to pay a total of $67.1 million (net of all deposits) of which a portion was expensed immediately and recognized as a contract termination fee. The expensed amount represents the total purchase price amount over fair value of the aircraft purchased as of the date of the transaction. Special items (2) In August 2017, the Company terminated the Hawaiian Airlines, Inc. Salaried & IAM Merged Pension Plan (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 $10.4 million related to the other post-retirement (OPEB) medical plan partial settlement. (3) 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 end between November 2018 through January 2019. During the twelve months ended December 31, 2017, the Company recorded a loss on sale of aircraft of $4.8 million . (4) 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 twelve months ended December 31, 2017, the Company expensed $18.7 million principally related to a one-time payment to reduce the Company's future 401K employer contribution for certain pilot groups, which is not recoverable once paid. (5) The impairment analysis and ultimate charge was triggered by the decision in the fourth quarter of 2016 to exit the Boeing 767-300 fleet in 2018. The early exit of the Boeing 767-300 fleet was made possible by the Company's decision to acquire one Airbus A330-200 (delivered in 2017), lease two additional Airbus A321neo's (delivered in 2018 and in addition to the Company's existing aircraft orders), and the Company's ability to early terminate its long-term power-by-the-hour maintenance contract for the Boeing 767-300 fleet. This fleet change allows the Company to streamline the fleet, simplify operations, and potentially reduce costs in the future. In order to assess whether there was an impairment of the Boeing 767-300 asset group, the Company compared the projected undiscounted cash flows of the fleet to the book value of the assets and determined the book value was in excess of the undiscounted cash flows. The Company estimated the fair value of the owned Boeing 767-300 fleet assets using third party pricing information and quotes from potential buyers, which resulted in a $49.4 million impairment charge ( $0.92 per diluted share). The Company's determination of fair value considered attributes specific to the owned Boeing 767-300 fleet and aircraft condition (e.g. age, maintenance requirements, cycles, etc.). (6) In 2016, the Company accrued $34.0 million associated with the tentative agreement with ALPA related to past service (prior to January 1, 2017) and also elected to pay a $4.8 million profit sharing bonus payment to other labor groups related to prior period service. (7) In connection with the decision to exit the Boeing 767-300 fleet, the Company negotiated a termination of its Boeing 767-300 maintenance agreement and recorded a $21.0 million charge related to the amount paid to terminate the contract. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Plans Hawaiian sponsors a defined benefit pension plan covering the Air Line Pilots Association (ALPA) and prior to August 2017, sponsored the defined benefit pension plans for the International Association of Machinists and Aerospace Workers (AFL-CIO) (IAM) and other personnel (salaried, Transport Workers Union, Network Engineering Group). The plans for the IAM and other employees were frozen in September 1993. Effective January 1, 2008, benefit accruals for pilots under age 50 as of July 1, 2005 were frozen (with the exception of certain pilots who were both age 50 and older and participants of the plan on July 1, 2005) and Hawaiian began making contributions to an alternate defined contribution retirement program for its pilots. All of the pilots' accrued benefits under their defined benefit plan at the date of the freeze were preserved. In addition, Hawaiian sponsors four unfunded defined benefit postretirement medical and life insurance plans and a separate plan to administer the pilots' disability benefits. In 2016, the Hawaiian Airlines, Inc. Pension Plan for Salaried Employees (Salaried Plan) was consolidated into the Hawaiian Airlines, Inc. Pension Plan for Employees Represented by the International Association of Machinists (IAM), which established the Hawaiian Airlines, Inc. Salaried & IAM Merged Pension Plan (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. In 2017, 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 $101.9 million to fund the HRA and settle the post-65 post-retirement medical plan obligation (for active pilots as of April 1, 2017). 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 3.86% . The Company recognized a one-time settlement loss of $10.4 million . The obligation recorded for the unsettled portion of this plan was $73.4 million as of the partial settlement date. The following tables summarize changes to projected benefit obligations, plan assets, funded status and applicable amounts included in the Consolidated Balance Sheets: 2018 2017 Pension Other Pension Other (in thousands) Change in benefit obligations Benefit obligations, beginning of year $ (426,066 ) $ (120,417 ) $ (462,762 ) $ (224,316 ) Service cost (352 ) (8,119 ) (480 ) (12,403 ) Interest cost (15,599 ) (4,708 ) (18,042 ) (8,022 ) Actuarial gains (losses) 22,677 6,007 (42,775 ) 17,484 Benefits paid 21,253 4,639 23,999 4,587 Less: federal subsidy on benefits paid N/A (50 ) N/A (57 ) Plan amendments — — — 381 Settlements — — 73,994 101,929 Benefit obligation at end of year (a) $ (398,087 ) $ (122,648 ) $ (426,066 ) $ (120,417 ) Change in plan assets Fair value of assets, beginning of year $ 296,386 $ 26,078 $ 302,982 $ 24,751 Actual return on plan assets (17,339 ) (1,697 ) 42,652 2,629 Employer contribution 50,230 6,621 48,745 3,285 Benefits paid (21,253 ) (4,639 ) (23,999 ) (4,587 ) Settlements — — (73,994 ) — Fair value of assets at end of year $ 308,024 $ 26,363 $ 296,386 $ 26,078 Unfunded status at December 31 $ (90,063 ) $ (96,285 ) $ (129,680 ) $ (94,339 ) Amounts recognized in the statement of financial position consist of: Current benefit liability $ (386 ) $ (3,342 ) $ (214 ) $ (3,017 ) Noncurrent benefit liability (89,677 ) (92,943 ) (129,466 ) (91,322 ) $ (90,063 ) $ (96,285 ) $ (129,680 ) $ (94,339 ) Amounts recognized in accumulated other comprehensive loss Unamortized actuarial loss (gain) $ 124,560 $ (15,606 ) $ 112,417 $ (13,521 ) Prior service cost (credit) — 1,737 — 1,962 $ 124,560 $ (13,869 ) $ 112,417 $ (11,559 ) _______________________________________________________________________________ (a) The accumulated pension benefit obligation as of December 31, 2018 and 2017 was $397.5 million and $424.2 million , respectively. The following table sets forth the net periodic benefit cost: 2018 2017 2016 Pension Other Pension Other Pension Other (in thousands) Components of Net Periodic Benefit Cost Service cost $ 352 $ 8,119 $ 480 $ 12,403 $ 681 $ 13,618 Other cost: Interest cost 15,599 4,708 18,042 8,022 19,969 10,227 Expected return on plan assets (20,948 ) (1,413 ) (17,291 ) (1,106 ) (16,746 ) (1,137 ) Recognized net actuarial loss (gain) 3,482 (774 ) 9,033 (241 ) 7,526 204 Prior service cost (credit) — 225 (28 ) 282 (2 ) 229 Total other components of the net periodic benefit cost $ (1,867 ) $ 2,746 $ 9,756 $ 6,957 $ 10,747 $ 9,523 Settlement and curtailment loss — — 35,201 10,384 — — Net periodic benefit cost $ (1,515 ) $ 10,865 $ 45,437 $ 29,744 $ 11,428 $ 23,141 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss Current year actuarial (gain) loss $ 15,625 $ (2,858 ) $ 17,414 $ (18,972 ) $ 25,559 $ (7,677 ) Current year prior service cost — — — (381 ) (932 ) — Amortization of actuarial gain (loss) (3,482 ) 774 (9,033 ) 241 (7,526 ) (204 ) Amortization of prior service credit (cost) — (225 ) 28 (282 ) 2 (229 ) Settlement and curtailment loss — — (35,201 ) (10,384 ) — — Total recognized in other comprehensive loss $ 12,143 $ (2,309 ) $ (26,792 ) $ (29,778 ) $ 17,103 $ (8,110 ) Total recognized in net periodic benefit cost and other comprehensive loss $ 10,628 $ 8,556 $ 18,645 $ (34 ) $ 28,531 $ 15,031 The weighted average actuarial assumptions used to determine the net periodic benefit expense and the projected benefit obligation were as follows: Pension Postretirement Disability 2018 2017 2018 2017 2018 2017 Discount rate to determine net periodic benefit expense 3.70 % 4.19 % 3.71 % 4.29 % 3.72 % 4.24 % Discount rate to determine projected benefit obligation 4.35 % 3.70 % 4.36 % 3.71 % 4.39 % 3.72 % Expected return on plan assets 7.33 % ** 6.34 % N/A N/A 4.90 % ** 4.60 % Rate of compensation increase Various * Various * N/A N/A Various * Various * Health care trend rate to determine net periodic benefit expense N/A N/A 7.25 % 7.75 % N/A N/A Ultimate trend rate N/A N/A 4.75 % 7.25 % N/A N/A Years to reach ultimate trend rate N/A N/A 5 6 N/A N/A Health care trend rate to determine projected benefit obligation N/A N/A 6.75 % 7.25 % N/A N/A Ultimate trend rate N/A N/A 4.75 % 4.75 % N/A N/A Years to reach ultimate trend rate N/A N/A 4 5 N/A N/A _______________________________________________________________________________ * Differs for each pilot based on current fleet and seat position on the aircraft and seniority service. Negotiated salary increases and expected changes in fleet and seat positions on the aircraft are included in the assumed rate of compensation increase, which ranged from 2.0% to 7.3% in both 2018 and 2017 ). ** Expected return on plan assets used to determine the net periodic benefit expense for 2019 is 6.91% for Pension and 4.90% for Disability. A change in the assumed health care cost trend rates would have the following effects: 100 Basis 100 Basis (in thousands) Effect on postretirement benefit obligation at December 31, 2018 $ 8,048 $ (6,916 ) Effect on total service and interest cost for the year ended December 31, 2018 892 (744 ) Estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2019 are as follows: Pension Other (in thousands) Actuarial (gain) loss $ 4,031 $ (707 ) Amortization of prior service cost — 225 To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss $ 4,031 $ (482 ) Plan Assets The Company develops the expected long-term rate of return assumption based on historical experience and by evaluating input from the trustee managing the plan's assets, including the trustee's review of asset class return expectations by several consultants and economists, as well as long-term inflation assumptions. The Company's expected long-term rate of return on plan assets is based on a target allocation of assets, which is based on the goal of earning the highest rate of return while maintaining risk at acceptable levels. The Retirement Plan for Pilots of Hawaiian Airlines, Inc. and the Pilot's Voluntary Employee Beneficiary Association Disability and Survivor's Benefit Plan (VEBA) strive to have assets sufficiently diversified so that adverse or unexpected results from any one security class will not have an unduly detrimental impact on the entire portfolio. Prior to termination, the Merged Plan targeted to have its assets align with the potential liability as of the expected settlement date. The actual allocation of the Company's pension and disability plan assets and the target allocation of assets by category at December 31, 2018 are as follows: Asset Allocation for Pilots pension and VEBA Plans 2018 Target Equity securities 57 % 60 % Fixed income securities 39 % 35 % Real estate investment trusts 4 % 5 % 100 % 100 % The table below presents the fair value of the Company's pension plan and other postretirement plan investments (excluding cash and receivables): Fair Value Measurements as of December 31, 2018 2017 (in thousands) Pension Plan Assets: Equity index funds $ 175,583 $ 177,252 Fixed income funds 110,650 100,504 Real estate investment fund 14,718 14,587 Insurance company pooled separate account 7,076 4,044 Total $ 308,027 $ 296,387 Postretirement Assets: Common collective trust fund $ 26,217 $ 25,973 The fair value of the investments in the table above have been estimated using the net asset value per share, and in accordance with subtopic ASC 820-10, Fair Value Measurement and Disclosures , are not required to be presented in the fair value hierarchy. Equity index funds. The investment objective of these funds are to obtain a reasonable rate of return while investing principally or entirely in foreign or domestic equity securities. There are currently no redemption restrictions on these investments. Fixed income funds. The investment objective of these funds are to obtain a reasonable rate of return while principally investing in foreign and domestic bonds, mortgage-backed securities, and asset-backed securities. There are currently no redemption restrictions on these investments. Real estate investment fund. The investment objective of this fund is to obtain a reasonable rate of return while principally investing in real estate investment trusts. There are currently no redemption restrictions on these investments. Insurance Company Pooled Separate Account. The investment objective of the Insurance Company Pooled Separate Account is to invest in short-term cash equivalent securities to provide a high current income consistent with the preservation of principal and liquidity. Common collective trust (CCT). The postretirement plan's CCT investment consists of a balanced profile fund and a conservative profile fund. These funds primarily invest in mutual funds and exchange-traded funds. The balanced profile fund is designed for participating trusts that seek substantial capital growth, place modest emphasis on short-term stability, have long-term investment objectives, and accept short-term volatility in the value of the fund's portfolio. The conservative profile fund is designed for participating trusts that place modest emphasis on capital growth, place moderate emphasis on short-term stability, have intermediate-to-long-term investment objectives, and accept moderate short-term volatility in the value of the fund's portfolio. There are currently no redemption restrictions on these investments. Based on current legislation and current assumptions, the contribution that the Company expects to have a minimum contribution requirement of nil for 2019 . The Company projects that Hawaiian's pension plans and other postretirement benefit plans will make the following benefit payments, which reflect expected future service, during the years ending December 31: Other Benefits Pension Gross Expected (in thousands) 2019 $ 23,343 $ 5,254 $ (47 ) 2020 24,471 6,040 (51 ) 2021 25,252 6,848 (54 ) 2022 25,730 7,425 (56 ) 2023 26,189 8,051 (58 ) 2024 - 2028 132,395 47,804 (304 ) $ 257,380 $ 81,422 $ (570 ) Defined Contribution Plans The Company also sponsors separate defined contribution plans for its pilots, flight attendants and ground, and salaried personnel. Contributions to the Company's defined contribution plans were $42.0 million , $39.1 million and $31.6 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Capital Stock and Share-based C
Capital Stock and Share-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Capital Stock and Share-based Compensation | Capital Stock and Share-based Compensation Common Stock The Company has one class of common stock issued and outstanding. Each share of common stock is entitled to one vote per share. Special Preferred Stock The IAM, AFA, and ALPA each hold one share of Special Preferred Stock, which entitles each union to nominate one director to the Company's Board of Directors. In addition, each series of the Special Preferred Stock, unless otherwise specified: (i) ranks senior to the Company's common stock and ranks pari passu with each other series of Special Preferred Stock with respect to liquidation, dissolution and winding up of the Company and will be entitled to receive $0.01 per share before any payments are made, or assets distributed to holders of any stock ranking junior to the Special Preferred Stock; (ii) has no dividend rights unless a dividend is declared and paid on the Company's common stock, in which case the Special Preferred Stock would be entitled to receive a dividend in an amount per share equal to two times the dividend per share paid on the common stock; (iii) is entitled to one vote per share of such series and votes with the common stock as a single class on all matters submitted to holders of the Company's common stock; and (iv) automatically converts into the Company's common stock on a 1 :1 basis, at such time as such shares are transferred or such holders are no longer entitled to nominate a representative to the Company's Board of Directors pursuant to their respective collective bargaining agreements. Dividends The Company paid dividends of $24.2 million and $6.3 million during the years ended December 31, 2018 and 2017 , respectively, and no dividends were paid by the Company during year ended December 31, 2016 . In February 2019, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share payable on February 22, 2019 , to stockholders of record as of February 8, 2019 . The Company's dividend payments may change from time to time. The Company cannot provide assurance that it will continue to declare dividends for any fixed period and payment of dividends may be suspended at any time at its discretion. Stock Repurchase Program In November 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 December 2019 via the open market, established plans or privately negotiated transactions in accordance with all applicable securities laws, rules and regulations, which was completed in December 2018. In November 2018, the Company's Board of Directors approved a new stock repurchase program pursuant to which the Company may repurchase up to an additional $100 million of its outstanding common stock over a two -year period through December 2020. The stock repurchase program is subject to modification or termination at any time. In 2018 , the Company spent $102.5 million to repurchase approximately 2.8 million shares of the Company's common stock in open market transactions, completing its November 2017 repurchase authorization. In 2017 , the Company spent $100.0 million to repurchase approximately 2.5 million shares of the Company's common stock in open market transactions. As of December 31, 2018 , the Company has $97.5 million remaining to spend under its stock repurchase program. See Part II, Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” of this report for additional information on the stock repurchase program. Share-Based Compensation Total share-based compensation expense recognized by the Company under ASC 718 was $5.3 million , $7.3 million and $8.4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , $5.4 million of share-based compensation expense related to unvested stock options and other stock awards (inclusive of $0.4 million for stock awards granted to non-employee directors) attributable to future performance and has not yet been recognized. The related expense will be recognized over a weighted average period of approximately 1.3 years. Performance-Based Stock Awards During 2018 , the Company granted performance-based stock awards covering 83,293 shares of common stock (the Target Award) with a maximum payout of 166,586 shares of common stock (the Maximum Award) to employees pursuant to the Company's 2015 Stock Incentive Plan. These awards vest over a three year period. The Company valued the performance-based stock awards using grant date fair values equal to the Company's share price on the measurement date. The following table summarizes information about performance-based stock awards: Number of units Weighted Non-vested at January 1, 2016 678,742 $ 10.53 Granted 117,849 33.94 Vested (349,403 ) 7.32 Forfeited (24,891 ) 13.45 Non-vested at December 31, 2016 422,297 $ 14.00 Granted 355,897 43.51 Vested (358,619 ) 12.71 Forfeited (37,619 ) 27.60 Non-vested at December 31, 2017 381,956 $ 28.03 Granted 160,348 39.09 Vested (211,053 ) 26.28 Forfeited (69,399 ) 39.42 Non-vested at December 31, 2018 261,852 $ 33.01 In 2018 , there were 77,055 additional shares from a prior year grant that the performance metric was achieved and vested, thus included in the 2018 amounts. The fair value of performance-based stock awards vested in the years ended December 31, 2018 , 2017 and 2016 was $8.2 million , $17.9 million and $11.3 million , respectively. Fair value of the awards are based on the stock price on date of vest. Service-Based Stock Awards During 2018 , the Company awarded 128,617 service-based stock awards to employees and non-employee directors, pursuant to the Company's 2015 Stock Incentive Plan. These stock awards vest over one , two , or three year periods and have a grant date fair value equal to the Company's share price on the measurement date. The following table summarizes information about outstanding service-based stock awards: Number of units Weighted Non-vested at January 1, 2016 270,721 $ 15.02 Granted 110,276 37.08 Vested (169,218 ) 16.32 Forfeited (16,330 ) 20.46 Non-vested at December 31, 2016 195,449 $ 24.29 Granted 22,898 49.95 Vested (110,575 ) 23.80 Forfeited (16,394 ) 26.71 Non-vested at December 31, 2017 91,378 $ 28.12 Granted 128,617 38.71 Vested (68,803 ) 38.98 Forfeited (8,241 ) 38.03 Non-vested at December 31, 2018 142,951 $ 38.77 The fair value of service-based stock awards vested in 2018 , 2017 , and 2016 was $2.7 million , $5.6 million and $6.1 million , respectively. Fair value of the awards are based on the stock price on date of vest. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Commitments The Company has commitments with a third-party to provide aircraft maintenance services which include fixed payments as well as variable payments based on flight hours for the Company's Airbus fleet through 2027. The Company also has commitments with third-party service providers for reservations, IT, and accounting services through 2024. Committed capital and other expenditures include escalation and variable amounts based on estimated forecasts. The gross committed expenditures for upcoming aircraft deliveries and other commitments for the next five years and thereafter are detailed below: Aircraft and aircraft related Other Total Committed (in thousands) 2019 $ 330,089 $ 74,621 $ 404,710 2020 162,270 69,729 231,999 2021 303,184 66,104 369,288 2022 431,210 58,499 489,709 2023 236,639 53,357 289,996 Thereafter 477,788 164,846 642,634 $ 1,941,180 $ 487,156 $ 2,428,336 As of December 31, 2018 , the Company had the following capital commitments consisting of firm aircraft and engine orders and purchase rights: Aircraft Type Firm Purchase Expected Delivery Dates A321neo aircraft 7 3 Between 2019 and 2020 B787-9 aircraft 10 10 Between 2021 and 2025 Pratt & Whitney spare engines: A321neo spare engines 1 2 In 2019 General Electric GEnx spare engines: B787-9 spare engines 2 2 Between 2021 and 2025 In February 2018, the Company exercised its right to terminate its aircraft purchase agreement between the Company and Airbus for six Airbus A330-800neo aircraft and the purchase rights for an additional six Airbus A330-800neo aircraft. Refer to Note 11 below for discussion on the contract termination charge. In July 2018, the Company entered into a purchase agreement for the purchase of ten Boeing 787-9 "Dreamliner" aircraft with purchase rights for an additional 10 aircraft with scheduled delivery from 2021 to 2025. In October 2018, the Company entered into a definitive agreement for the selection of GEnx engines to power its Boeing 787-9 fleet. The agreement provides for the purchase of 20 GEnx engines, the right to purchase an additional 20 GEnx engines and the purchase of up to four spare engines. In December 2018, the Company entered into an amendment to the purchase agreement with Boeing, which includes an option for the Company to accelerate delivery of B787-9 aircraft from 2024 and 2025 to 2023; however, the Company does not currently expect to execute the option to accelerate its planned delivery schedule. The committed expenditures under these agreements are reflected in the table above. The Company also intends to enter into additional related agreements in connection with the Boeing 787-9 purchases, including for the purchase of a flight simulator, spare parts and materials, and related services. In order to complete the purchase of these aircraft and fund related costs, the Company may need to secure acceptable financing. The Company has backstop financing available from aircraft and engine manufacturers, subject to certain customary conditions. Financing may be necessary to satisfy our capital commitments for firm order aircraft and other related capital expenditures. The Company can provide no assurance that any financing not already in place for aircraft and spare engine deliveries will be available to us on acceptable terms when necessary or at all. Litigation and Contingencies The Company is subject to legal proceedings arising in the normal course of its operations. Management does not anticipate that the disposition of any currently pending proceeding will have a material effect on the Company's operations, business or financial condition. General Guarantees and Indemnifications In the normal course of business, the Company enters into numerous aircraft financing and real estate leasing arrangements that have various guarantees included in the contract. It is common in such lease transactions for the lessee to agree to indemnify the lessor and other related third-parties for tort liabilities that arise out of or relate to the lessee's use of the leased aircraft or occupancy of the leased premises. In some cases, this indemnity extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by their gross negligence or willful misconduct. Additionally, the lessee typically indemnifies such parties for any environmental liability that arises out of or relates to its use of the real estate leased premises. The Company believes that it is insured (subject to deductibles) for most tort liabilities and related indemnities described above with respect to the aircraft and real estate that it leases. The Company cannot estimate the potential amount of future payments, if any, under the foregoing indemnities and agreements. Credit Card Holdback Under the Company's bank-issued credit card processing agreements, certain proceeds from advance ticket sales may be held back to serve as collateral to cover any possible chargebacks or other disputed charges that may occur. These holdbacks, which are included in restricted cash in the Company's Consolidated Balance Sheets, totaled $1.0 million at December 31, 2017 . As of December 31, 2018 , there were no holdbacks held with the Company's credit card processors. In the event of a material adverse change in the business, the holdback could increase to an amount up to 100% of the applicable credit card air traffic liability, which would also cause an increase in the level of restricted cash. Labor Negotiations As of December 31, 2018 , approximately 84% of employees were represented by unions. Additionally, the collective bargaining agreement for the Association of Flight Attendants (AFA), which represents 29% of employees became amendable on January 1, 2017, the Company is currently in negotiations with the AFA. The Company can provide no assurance that a successful or timely resolution of these labor negotiations will be achieved. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental disclosures of cash flow information and non-cash investing and financing activities were as follows: Year Ended December 31, 2018 2017 2016 (in thousands) Cash payments for interest (net of amounts capitalized) $ 24,343 $ 23,134 $ 29,751 Cash payments for income taxes 16,063 65,812 92,934 Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a capital or financing lease 119,530 72,996 * 6,092 Maintenance hangar project (see Note 9) — — 72,996 * * Amount was reclassified from an other liability as of December 31, 2016 to a financing (lease) liability when completed and placed into service as of December 31, 2017. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information 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 16 as Subsidiary Issuer / Guarantor) of pass-through certificates, as discussed in Note 8 , the Company (which is also referred to in this Note 16 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 to be issued by Hawaiian to purchase new aircraft. Condensed consolidating financial statements are presented in the following tables: Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2018 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,827,215 $ 10,601 $ (405 ) $ 2,837,411 Operating Expenses: Aircraft fuel, including taxes and delivery — 599,544 — — 599,544 Wages and benefits — 684,719 — — 684,719 Aircraft rent — 125,883 78 — 125,961 Maintenance materials and repairs — 233,503 6,256 — 239,759 Aircraft and passenger servicing — 157,796 — — 157,796 Commissions and other selling (5 ) 129,332 128 (140 ) 129,315 Depreciation and amortization — 134,651 5,215 — 139,866 Other rentals and landing fees — 126,509 394 — 126,903 Purchased services 195 130,665 852 (61 ) 131,651 Contract terminations expense — 35,322 — — 35,322 Other 6,527 142,125 3,759 (204 ) 152,207 Total 6,717 2,500,049 16,682 (405 ) 2,523,043 Operating Income (Loss) (6,717 ) 327,166 (6,081 ) — 314,368 Nonoperating Income (Expense): Undistributed net income of subsidiaries 238,365 — — (238,365 ) — Other nonoperating special items — — — — — Interest expense and amortization of debt discounts and issuance costs (3 ) (32,861 ) (137 ) — (33,001 ) Interest income 185 9,057 — — 9,242 Capitalized interest — 7,887 — — 7,887 Other components of net periodic benefit cost — (825 ) — — (825 ) Gains on fuel derivatives — 5,590 — — 5,590 Other, net (4 ) (2,117 ) 18 — (2,103 ) Total 238,543 (13,269 ) (119 ) (238,365 ) (13,210 ) Income (Loss) Before Income Taxes 231,826 313,897 (6,200 ) (238,365 ) 301,158 Income tax expense (benefit) (1,374 ) 70,634 (1,302 ) — 67,958 Net Income (Loss) $ 233,200 $ 243,263 $ (4,898 ) $ (238,365 ) $ 233,200 Comprehensive Income (Loss) $ 227,834 $ 237,897 $ (4,898 ) $ (232,999 ) $ 227,834 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2017 (a) Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,667,435 $ 8,102 $ (392 ) $ 2,675,145 Operating Expenses: Aircraft fuel, including taxes and delivery — 440,383 — — 440,383 Wages and benefits — 632,997 — — 632,997 Aircraft rent — 137,289 475 — 137,764 Maintenance materials and repairs — 215,473 4,080 — 219,553 Aircraft and passenger servicing — 144,853 — — 144,853 Commissions and other selling 84 126,674 129 (137 ) 126,750 Depreciation and amortization — 109,458 3,819 — 113,277 Other rentals and landing fees — 116,763 — — 116,763 Purchased services 478 109,436 933 (60 ) 110,787 Special items — 23,450 — — 23,450 Other 5,393 137,494 1,838 (195 ) 144,530 Total 5,955 2,194,270 11,274 (392 ) 2,211,107 Operating Income (Loss) (5,955 ) 473,165 (3,172 ) — 464,038 Nonoperating Income (Expense): Undistributed net income of subsidiaries 333,476 — — (333,476 ) — Other nonoperating special items — (45,585 ) — — (45,585 ) Interest expense and amortization of debt discounts and issuance costs — (30,901 ) — — (30,901 ) Interest income — 5,830 302 — 6,132 Capitalized interest — 8,437 — — 8,437 Other components of net periodic benefit cost — (16,713 ) — — (16,713 ) Gains on fuel derivatives — 3,312 — — 3,312 Other, net — 2,101 — — 2,101 Total 333,476 (73,519 ) 302 (333,476 ) (73,217 ) Income (Loss) Before Income Taxes 327,521 399,646 (2,870 ) (333,476 ) 390,821 Income tax expense (benefit) (3,089 ) 63,300 — — 60,211 Net Income (Loss) $ 330,610 $ 336,346 $ (2,870 ) $ (333,476 ) $ 330,610 Comprehensive Income (Loss) $ 358,841 $ 364,575 $ (2,870 ) $ (361,707 ) $ 358,839 (a) Amounts adjusted due to the adoption of ASC No. 606, Revenue from Contracts with Customers . See Note 1 to Consolidated Financial Statements for additional information. Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2016 (a) Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,426,479 $ 6,297 $ (363 ) $ 2,432,413 Operating Expenses: Aircraft fuel, including taxes and delivery — 344,322 — — 344,322 Wages and benefits — 535,264 — — 535,264 Aircraft rent — 124,521 44 — 124,565 Maintenance materials and repairs — 225,707 3,337 — 229,044 Aircraft and passenger servicing — 129,899 — — 129,899 Commissions and other selling 72 122,717 124 (126 ) 122,787 Depreciation and amortization — 104,689 3,439 — 108,128 Other rentals and landing fees — 108,087 — — 108,087 Purchased services 149 95,450 660 (60 ) 96,199 Special items — 109,142 — — 109,142 Other 5,300 121,104 1,262 (177 ) 127,489 Total 5,521 2,020,902 8,866 (363 ) 2,034,926 Operating Income (Loss) (5,521 ) 405,577 (2,569 ) — 397,487 Nonoperating Income (Expense): Undistributed net income of subsidiaries 226,561 — — (226,561 ) — Interest expense and amortization of debt discounts and issuance costs 117 (36,729 ) — — (36,612 ) Interest income 265 3,742 — — 4,007 Capitalized interest — 2,651 — — 2,651 Other components of net periodic benefit cost — (20,270 ) — — (20,270 ) Gains on fuel derivatives — 20,106 — — 20,106 Loss on extinguishment of debt — (10,473 ) — — (10,473 ) Other, net — 4,323 — — 4,323 Total 226,943 (36,650 ) — (226,561 ) (36,268 ) Income (Loss) Before Income Taxes 221,422 368,927 (2,569 ) (226,561 ) 361,219 Income tax expense (benefit) (2,698 ) 139,797 — — 137,099 Net Income (Loss) $ 224,120 $ 229,130 $ (2,569 ) $ (226,561 ) $ 224,120 Comprehensive Income (Loss) $ 219,903 $ 224,914 $ (2,569 ) $ (222,344 ) $ 219,904 (a) Amounts adjusted due to the adoption of ASC No. 606, Revenue from Contracts with Customers . See Note 1 to Consolidated Financial Statements for additional information. Condensed Consolidating Balance Sheets December 31, 2018 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 5,154 $ 255,279 $ 8,144 $ — $ 268,577 Restricted cash — — — — — Short-term investments — 232,241 — — 232,241 Accounts receivable, net — 109,499 2,569 (234 ) 111,834 Spare parts and supplies, net — 33,942 — — 33,942 Prepaid expenses and other 165 58,296 112 — 58,573 Total 5,319 689,257 10,825 (234 ) 705,167 Property and equipment at cost — 2,756,551 92,021 — 2,848,572 Less accumulated depreciation and amortization — (648,111 ) (15,350 ) — (663,461 ) Property and equipment, net — 2,108,440 76,671 — 2,185,111 Long-term prepayments and other 62,990 185,161 899 (63,494 ) 185,556 Deferred tax assets, net — — — — — Goodwill and other intangible assets, net — 120,119 693 — 120,812 Intercompany receivable — 456,338 — (456,338 ) — Investment in consolidated subsidiaries 1,325,380 — — (1,325,380 ) — TOTAL ASSETS $ 1,393,689 $ 3,559,315 $ 89,088 $ (1,845,446 ) $ 3,196,646 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 665 $ 139,552 $ 3,163 $ (234 ) $ 143,146 Air traffic liability and current frequent flyer deferred revenue — 598,387 5,349 — 603,736 Other accrued liabilities — 157,842 312 — 158,154 Current maturities of long-term debt, less discount, and capital lease obligations — 101,052 45 — 101,097 Total 665 996,833 8,869 (234 ) 1,006,133 Long-term debt and capital lease obligations — 604,089 4,595 — 608,684 Intercompany payable 445,030 — 11,308 (456,338 ) — Other liabilities and deferred credits: Accumulated pension and other postretirement benefit obligations. — 182,620 — — 182,620 Other liabilities and deferred credits — 118,682 1,144 — 119,826 Noncurrent frequent flyer deferred revenue — 163,619 — — 163,619 Deferred tax liabilities, net — 167,770 — — 167,770 Total — 632,691 1,144 — 633,835 Shareholders' equity 947,994 1,325,702 63,172 (1,388,874 ) 947,994 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,393,689 $ 3,559,315 $ 89,088 $ (1,845,446 ) $ 3,196,646 Condensed Consolidating Balance Sheets December 31, 2017 (a) Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 57,405 $ 125,861 $ 7,687 $ — $ 190,953 Restricted cash — 1,000 — — 1,000 Short-term investments — 269,297 — — 269,297 Accounts receivable, net 25 139,008 1,455 (209 ) 140,279 Spare parts and supplies, net — 35,361 — — 35,361 Prepaid expenses and other 171 78,933 82 — 79,186 Total 57,601 649,460 9,224 (209 ) 716,076 Property and equipment at cost — 2,326,249 74,562 — 2,400,811 Less accumulated depreciation and amortization — (546,831 ) (11,717 ) — (558,548 ) Property and equipment, net — 1,779,418 62,845 — 1,842,263 Long-term prepayments and other — 193,449 183 — 193,632 Deferred tax assets, net 31,845 — — (31,845 ) — Goodwill and other intangible assets, net — 120,695 1,155 — 121,850 Intercompany receivable — 392,791 — (392,791 ) — Investment in consolidated subsidiaries 1,137,941 — — (1,137,941 ) — TOTAL ASSETS $ 1,227,387 $ 3,135,813 $ 73,407 $ (1,562,786 ) $ 2,873,821 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 622 $ 138,818 $ 1,574 $ (209 ) $ 140,805 Air traffic liability and current frequent flyer deferred revenue — 584,366 4,727 — 589,093 Other accrued liabilities 32 147,211 350 — 147,593 Current maturities of long-term debt, less discount, and capital lease obligations — 59,470 — — 59,470 Total 654 929,865 6,651 (209 ) 936,961 Long-term debt and capital lease obligations — 511,201 — — 511,201 Intercompany payable 381,608 — 11,183 (392,791 ) — Other liabilities and deferred credits: Accumulated pension and other postretirement benefit obligations. — 220,788 — — 220,788 Other liabilities and deferred credits — 74,736 1,105 75,841 Noncurrent frequent flyer deferred revenue — 149,764 — — 149,764 Deferred tax liabilities, net — 165,986 — (31,845 ) 134,141 Total — 611,274 1,105 (31,845 ) 580,534 Shareholders' equity 845,125 1,083,473 54,468 (1,137,941 ) 845,125 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,227,387 $ 3,135,813 $ 73,407 $ (1,562,786 ) $ 2,873,821 (a) Amounts adjusted due to the adoption of ASC No. 606, Revenue from Contracts with Customers . See Note 1 to Consolidated Financial Statements for additional information. Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2018 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ (2,773 ) $ 509,405 $ 1,876 $ — $ 508,508 Cash Flows From Investing Activities: Net payments to affiliates (14,400 ) (91,515 ) — 105,915 — Additions to property and equipment, including pre-delivery deposits — (470,970 ) (15,807 ) — (486,777 ) Proceeds from purchase assignment and leaseback transactions — 87,000 — — 87,000 Proceeds from disposition of property and equipment — 46,714 — — 46,714 Purchases of investments — (210,836 ) — — (210,836 ) Sales of investments — 247,423 — — 247,423 Net cash used in investing activities (14,400 ) (392,184 ) (15,807 ) 105,915 (316,476 ) Cash Flows From Financing Activities: Long-term borrowings — 86,500 — — 86,500 Repayments of long-term debt and capital lease obligations — (68,233 ) (12 ) — (68,245 ) Dividend payments (24,171 ) — — — (24,171 ) Repurchases of common stock (102,500 ) — — — (102,500 ) Debt issuance costs — (3,350 ) — — (3,350 ) Net payments from affiliates 91,515 — 14,400 (105,915 ) — Other 78 (3,720 ) — (3,642 ) Net cash provided by (used in) financing activities (35,078 ) 11,197 14,388 (105,915 ) (115,408 ) Net increase (decrease) in cash and cash equivalents (52,251 ) 128,418 457 — 76,624 Cash, cash equivalents, and restricted cash—Beginning of Period 57,405 126,861 7,687 — 191,953 Cash, cash equivalents, and restricted cash—End of Period $ 5,154 $ 255,279 $ 8,144 $ — $ 268,577 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2017 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ (4,803 ) $ 334,433 $ 1,505 $ — $ 331,135 Cash Flows From Investing Activities: Net payments to affiliates (2,500 ) (103,254 ) — 105,754 — Additions to property and equipment, including pre-delivery deposits — (336,820 ) (4,695 ) — (341,515 ) Proceeds from purchase assignment and leaseback transactions — 33,000 — — 33,000 Proceeds from disposition of property and equipment — 941 — — 941 Purchases of investments — (231,393 ) — — (231,393 ) Sales of investments — 244,261 — — 244,261 Net cash used in investing activities (2,500 ) (393,265 ) (4,695 ) 105,754 (294,706 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (61,486 ) — — (61,486 ) Dividend payments (6,261 ) — — — (6,261 ) Repurchases of common stock (100,000 ) — — — (100,000 ) Debt issuance costs — (188 ) — — (188 ) Net payments from affiliates 103,254 — 2,500 (105,754 ) — Other 86 (7,618 ) — (7,532 ) Net cash provided by (used in) financing activities (2,921 ) (69,292 ) 2,500 (105,754 ) (175,467 ) Net decrease in cash and cash equivalents (10,224 ) (128,124 ) (690 ) — (139,038 ) Cash, cash equivalents, and restricted cash—Beginning of Period 67,629 254,985 8,377 — 330,991 Cash, cash equivalents, and restricted cash—End of Period $ 57,405 $ 126,861 $ 7,687 $ — $ 191,953 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ (4,954 ) $ 440,203 $ 1,795 $ — $ 437,044 Cash Flows From Investing Activities: Net payments to affiliates — (28,927 ) — 28,927 — Additions to property and equipment, including pre-delivery deposits — (165,710 ) (13,128 ) — (178,838 ) Proceeds from purchase assignment and leaseback transactions — 31,851 — — 31,851 Net proceeds from disposition of equipment — 15 1 — 16 Purchases of investments — (260,987 ) — — (260,987 ) Sales of investments — 253,855 — — 253,855 Net cash provided by (used in) investing activities — (169,903 ) (13,127 ) 28,927 (154,103 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (214,025 ) — — (214,025 ) Repurchases and conversion of convertible notes (1,426 ) — — — (1,426 ) Repurchases of common stock (13,763 ) — — — (13,763 ) Debt issuance costs — (1,653 ) — — (1,653 ) Net payments from affiliates 17,894 — 11,033 (28,927 ) — Other 458 (8,043 ) — — (7,585 ) Net cash provided by (used in) financing activities 3,163 (223,721 ) 11,033 (28,927 ) (238,452 ) Net increase (decrease) in cash and cash equivalents (1,791 ) 46,579 (299 ) — 44,489 Cash, cash equivalents, and restricted cash—Beginning of Period 69,420 208,406 8,676 — 286,502 Cash, cash equivalents, and restricted cash—End of Period $ 67,629 $ 254,985 $ 8,377 $ — $ 330,991 Income Taxes The income tax expense (benefit) is presented as if each entity that is part of the consolidated group files a separate return. |
Supplemental Financial Informat
Supplemental Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplemental Financial Information (unaudited) | Supplemental Financial Information (unaudited) Unaudited Quarterly Financial Information: First Second Third Fourth (in thousands, except per share data) 2018: Operating revenue $ 665,412 $ 715,447 $ 759,087 $ 697,465 Operating income 36,265 92,928 115,826 69,349 Nonoperating income (loss) 830 12,859 931 (27,830 ) Net income 28,542 79,480 93,542 ** 31,636 ** Net Income Per Common Stock Share: Basic $ 0.56 $ 1.57 $ 1.85 $ 0.65 Diluted 0.56 1.56 1.84 0.64 2017: (a) Operating revenue $ 606,209 $ 670,116 $ 716,216 $ 682,604 Operating income 62,030 136,840 169,002 96,166 Nonoperating income (loss) (15,813 ) (13,191 ) (54,113 ) 9,899 * Net income 33,645 76,894 71,622 148,448 ** Net Income Per Common Stock Share: Basic $ 0.63 $ 1.43 $ 1.35 $ 2.86 Diluted 0.62 1.43 1.34 2.84 (a) Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers . See Note 1 to Consolidated Financial Statements for additional information. * During the fourth quarter of 2017, the Company recorded a $4.6 million reduction in its OPEB settlement related to the third quarter of 2017 revising the settlement from $15.0 million to $10.4 million . ** Amounts reflect the impact of the Tax Act enacted in 2017. See Note 10 for further discussion. The sum of the quarterly net income (loss) per common stock share amounts does not equal the annual amount reported since per share amounts are computed independently for each quarter and for the full year based on respective weighted-average common shares outstanding and other dilutive potential common shares. The Company's quarterly financial results are subject to seasonal fluctuations. Historically its second and third quarter financial results, which reflect periods of higher travel demand, are better than its first and fourth quarter financial results. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II—Hawaiian Holdings, Inc. Valuation and Qualifying Accounts Years Ended December 31, 2018 , 2017 and 2016 COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E Description Balance at Beginning of Year (1) (2) Deductions Balance at End of Year (in thousands) Allowance for Doubtful Accounts 2018 $ 12 1,527 — (1,485 ) (a) $ 54 2017 $ 34 1,810 — (1,832 ) (a) $ 12 2016 $ 166 2,896 — (3,028 ) (a) $ 34 Allowance for Obsolescence of Flight Equipment Expendable Parts and Supplies 2018 $ 21,446 5,463 (b) — (4,321 ) (c) $ 22,588 2017 $ 17,358 6,276 (b) — (2,188 ) (c) $ 21,446 2016 $ 16,454 3,301 (b) — (2,397 ) (c) $ 17,358 Valuation Allowance on Deferred Tax Assets 2018 $ 2,547 — — — $ 2,547 2017 $ 1,992 555 — — $ 2,547 2016 $ 3,912 — — (1,920 ) (d) $ 1,992 _______________________________________________________________________________ (a) Doubtful accounts written off, net of recoveries. (b) Obsolescence reserve for Hawaiian flight equipment expendable parts and supplies. (c) Spare parts and supplies written off against the allowance for obsolescence. (d) Re-classified to uncertain tax position. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Hawaiian Holdings, Inc. (the Company, Holdings, we, us and our) and its direct wholly-owned subsidiary, Hawaiian Airlines, Inc. (Hawaiian), are incorporated in the State of Delaware. The Company's primary asset is its sole ownership of all issued and outstanding shares of common stock of Hawaiian. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including its principal subsidiary, Hawaiian, through which the Company conducts substantially all of its operations. All significant inter-company balances and transactions have been eliminated upon consolidation. |
Reclassifications | The Company reclassified certain prior period amounts to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of short-term, highly liquid investments with an original maturity of three months or less at the date of purchase. |
Restricted Cash | Restricted Cash Restricted cash consists of cash held as collateral by institutions that process our credit card transactions for advanced ticket sales. |
Short Term Investments | Short Term Investments Investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. All short-term investments, which consists of debt securities, are classified as available-for-sale, and realized gains and losses are recorded using the specific identification method. Changes in market value, excluding other-than-temporary impairments, are reflected in accumulated other comprehensive income (loss). |
Spare Parts and Supplies | Spare Parts and Supplies Spare parts and supplies are valued at average cost, and primarily consist of expendable parts for flight equipment and other supplies. An allowance for obsolescence of expendable parts is provided over the estimated useful lives of the related aircraft and engines for spare parts expected to be on hand at the date the aircraft are retired from service. These allowances are based on management's estimates and are subject to change. |
Property, Equipment and Depreciation | Property, Equipment and Depreciation Property and equipment are stated at cost and depreciated on a straight-line basis to their estimated residual values over the asset's estimated useful life. Depreciation begins when the asset is placed into service. Aircraft and related parts begin depreciating on the aircraft's first revenue flight. Estimated useful lives and residual values of property and equipment are as follows: Boeing 717-200 aircraft and engines 7 - 11 years, 7 - 34% residual value Boeing 767-300 aircraft and engines (1) Through retirement in 2019 Airbus A330-200 aircraft and engines 25 years, 10% residual value Airbus A321neo aircraft and engines 25 years, 10% residual value ATR turboprop aircraft and engines 10 years, 15% residual value Flight and ground equipment under capital lease Shorter of lease term or useful life Major rotable parts Average lease term or useful life for related aircraft, 10% - 15% residual value Improvements to leased flight equipment and the cargo maintenance hangar Shorter of lease term or useful life Facility leasehold improvements Shorter of lease term, including assumed lease renewals when renewal is economically compelled at key airports, or useful life Furniture, fixtures and other equipment 3 - 7 years, no residual value Capitalized software 3 - 7 years, no residual value (1) The Company will retire its Boeing 767-300 aircraft and flight equipment in the first quarter of 2019. Additions and modifications that significantly enhance the operating performance and/or extend the useful lives of property and equipment are capitalized and depreciated over the lesser of the remaining useful life of the asset or the remaining lease term, as applicable. Expenditures that do not improve or extend asset lives are charged to expense as incurred. Pre-delivery deposits are capitalized when paid. Aircraft under capital leases are recorded at an amount equal to the present value of minimum lease payments utilizing the Company's incremental borrowing rate at lease inception and amortized on a straight-line basis over the lesser of the remaining useful life of the aircraft or the lease term. The amortization is recorded in depreciation and amortization expense on the Consolidated Statement of Operations. Accumulated amortization of aircraft and other capital leases was $90.5 million and $70.9 million as of December 31, 2018 and 2017 , respectively. The Company capitalizes certain costs related to the acquisition and development of computer software and amortizes these costs using the straight-line method over the estimated useful life of the software. |
Aircraft Maintenance and Repair Costs | Aircraft Maintenance and Repair Costs Maintenance and repair costs for owned and leased flight equipment, including the overhaul of aircraft components, are charged to operating expenses as incurred. Engine overhaul costs covered by power-by-the-hour arrangements are paid and expensed as incurred or expensed on a straight-line basis and are based on the amount of hours flown per contract. Under the terms of these power-by-the-hour agreements, the Company pays a set dollar amount per engine hour flown on a monthly basis and the third-party vendor assumes the obligation to repair the engines at no additional cost, subject to certain specified exclusions. As of December 31, 2018 and 2017, the Company had approximately $95.0 million and $109.3 million , respectively in prepayments to one of its power-by-the-hour vendors, which is recoverable over the next four years . Additionally, although the Company's aircraft lease agreements specifically provide that it is responsible for maintenance of the leased aircraft, the Company pays maintenance reserves to the aircraft lessors that are applied toward the cost of future maintenance events. These reserves are calculated based on a performance measure, such as flight hours, and are available for reimbursement to the Company upon the completion of the maintenance of the leased aircraft. However, reimbursements are limited to the available reserves associated with the specific maintenance activity for which the Company requests reimbursement. Under certain aircraft lease agreements, the lessor is entitled to retain excess amounts on deposit at the expiration of the lease, if any; whereas at the expiration of certain other existing aircraft lease agreements any such excess amounts are returned to the Company, provided that it has fulfilled all of its obligations under the lease agreements. The maintenance reserves paid under the lease agreements do not transfer either the obligation to maintain the aircraft or the cost risk associated with the maintenance activities to the aircraft lessor. In addition, the Company maintains the right to select any third-party maintenance provider. Maintenance reserve payments that are expected to be recovered from lessors are recorded as deposits in the Consolidated Balance Sheets as an asset until it is less than probable that any portion of the deposit is recoverable. In addition, payments of maintenance reserves that are not substantially and contractually related to the maintenance of the leased assets are expensed as incurred. Any costs that are substantially and contractually unrelated to the maintenance of the leased asset are considered to be unrecoverable. In order to properly account for the costs that are related to the maintenance of the leased asset, the Company bifurcates its maintenance reserves into two groups and expenses the proportionate share that is expected to be unrecoverable. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived Intangible Assets Goodwill and intangible assets with indefinite lives are not amortized. We apply a fair value-based impairment test to the carrying value of goodwill and indefinite-lived intangible assets on an annual basis and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. We assess the value of our goodwill and indefinite-lived assets under either a qualitative or quantitative approach. Goodwill. When the Company evaluates goodwill for impairment using a quantitative approach, it estimates the fair value of the reporting unit by considering the market capitalization. If the reporting unit's fair value exceeds its carrying value, no further testing is required. If, however, the reporting unit's carrying value exceeds its fair value, the Company then determines the amount of the impairment charge, if any. The Company recognizes an impairment charge if the carrying value of the reporting unit's goodwill exceeds its estimated fair value. Intangible Assets. The Company assesses its indefinite-lived assets under a qualitative approach. The Company analyzes market factors to determine if events and circumstances have affected the fair value of the indefinite-lived intangible assets. If the Company determines that it is more likely than not that the asset value may be impaired, it then uses the quantitative approach to assess the asset's fair value and the amount of the impairment. The Company performs the quantitative impairment test for indefinite-lived intangible assets by comparing the asset's fair value to its carrying value. |
Impairment of Long-Lived Assets and Finite-lived Intangible Assets | Impairment of Long-Lived Assets and Finite-lived Intangible Assets Long-lived assets used in operations, consisting principally of property and equipment and finite-lived intangible assets, are tested for impairment when events or changes in circumstances indicate, in management's judgment, that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amount. When testing for impairment management considers market trends, the expected useful lives of the assets, changes in economic conditions, recent transactions involving sales of similar assets and, if necessary, estimates of future undiscounted cash flows. To determine whether impairment exists for aircraft used in operations, assets are grouped at the fleet-type level (the lowest level for which there are identifiable cash flows) and future cash flows are estimated based on projections of capacity, passenger mile yield, fuel costs, labor costs and other relevant factors. If, at any time, management determines the net carrying value of an asset is not recoverable, the amount is reduced to its fair value during the period in which such determination is made. Any changes in the estimated useful lives of these assets will be accounted for prospectively. |
Operating Leases | Operating Leases The Company leases aircraft, engines, airport terminal facilities, office space, and other equipment under operating leases. Some of these lease agreements include escalation clauses and renewal options. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses on a straight-line basis over the terms of the leases in the Consolidated Statements of Operations. |
Leased Aircraft Return Costs | Leased Aircraft Return Costs Costs associated with the return of leased aircraft are accrued when it is probable that a payment will be made and that amount is reasonably estimable, usually no sooner than after the last scheduled maintenance event prior to lease return. Any accrual is based on the time remaining on the lease, planned aircraft usage, and the provisions included in the lease agreement, although the actual amount due to any lessor upon return will not be known with certainty until lease termination. As leased aircraft are returned, any payments are charged against the established accrual. The accrual is part of current and long-term liabilities and was not material as of December 31, 2018 and 2017. The expense is included in Aircraft rent in the consolidated statements of operations. |
Revenue Recognition and Costs to Obtain or Fulfill a Contract | Costs to obtain or fulfill a contract In order for the Company to provide transportation to its customers, the Company incurs fulfillment costs (booking fees, credit card fees, and commission/selling costs), which are deferred until the period in which the flight occurs. As of December 31, 2018 and 2017 , the Company's asset balance associated with these costs were $16.3 million and $16.7 million , respectively. During the twelve months ended December 31, 2018 , 2017 , and 2016 , expenses related to these costs totaled to $96.0 million , $95.5 million , and $94.3 million , respectively. To determine the amount to capitalize and expense at the end of each period, the Company uses historical sales data and estimates the amount associated with unflown tickets. Revenue Recognition Passenger revenue. The majority of the Company's revenue is derived from transporting passengers on our aircraft. The Company accounts for revenue in accordance with ASC 606, which was adopted on January 1, 2018, using the full retrospective method. See Recently Adopted Accounting Pronouncements section below for further discussion of adoption, including the impact on our previously issued financial statements. The Company's primary operations are that of its wholly-owned subsidiary, Hawaiian. Principally all operations of Hawaiian either originate and/or end in the State of Hawai'i. The management of such operations is based on a system-wide approach due to the interdependence of Hawaiian's route structure in its various markets. As Hawaiian offers only one significant line of business (i.e., air transportation), management has concluded that it has only one segment. The Company's operating revenues by geographic region (as defined by the Department of Transportation, DOT) are summarized below: Year Ended December 31, 2018 2017 2016 (in thousands) Domestic $ 2,071,861 $ 1,976,971 $ 1,874,039 Pacific 765,550 698,174 558,374 Total operating revenue $ 2,837,411 $ 2,675,145 $ 2,432,413 Hawaiian attributes operating revenue by geographic region based on the destination of each flight segment. Hawaiian's tangible assets consist primarily of flight equipment, which are mobile across geographic markets, and, therefore, have not been allocated to specific geographic regions. Passenger & Other revenue - Generally, the Company’s contracts with customers have two principal performance obligations, which are the promise to provide transportation to the passenger and the frequent flyer miles earned on the flight. In addition, the Company often charges additional fees for items such as baggage and in-flight entertainment. Such items are not capable of being distinct from the transportation provided because the customer can only benefit from the services during the flight. The transportation performance obligation, including the redemption of HawaiianMiles awards for flights, is satisfied, and revenue is recognized, as transportation is provided. In some instances, tickets sold by the Company can include a flight segment on another carrier which is referred to as an interline segment. In this situation, the Company acts as an agent for the other carrier and revenue is recognized net of cost in other revenue. Tickets sold by other airlines where the Company provides the transportation are recognized as passenger revenue at the estimated value to be billed to the other airline when travel is provided. Differences between amounts billed and the actual amounts may be rejected and rebilled or written off if the amount recorded was different from the original estimate. Other operating revenue consists of cargo revenue, ground handling fees, commissions, and fees earned under certain joint marketing agreements with other companies. These amounts are recognized when the service is provided. Year Ended December 31, 2018 2017 2016 Passenger Revenue by Type (in thousands) Passenger revenue, excluding frequent flyer $ 2,454,811 $ 2,351,062 $ 2,146,258 Frequent flyer revenue, transportation component 147,982 135,765 125,429 Passenger Revenue $ 2,602,793 $ 2,486,827 $ 2,271,687 Other revenue (e.g. cargo and other miscellaneous) $ 163,140 $ 142,172 $ 115,379 Frequent flyer revenue, marketing and brand component 71,478 46,146 45,347 Other Revenue $ 234,618 $ 188,318 $ 160,726 For the twelve months ended December 31, 2018 , 2017 , and 2016 , the Company's total revenue was $2.8 billion , $2.7 billion , and $2.4 billion , respectively. As of December 31, 2018 and 2017 , the Company's Air traffic liability balance as it relates to passenger tickets (excluding frequent flyer) was $427.8 million and $421.6 million , respectively, which represents future revenue that is expected to be realized over the next 12 months . During the twelve months ended December 31, 2018 , 2017 , and 2016 , the amount of revenue recognized that was included in Air traffic liability as of the beginning of the respective period was $421.0 million , $363.9 million , and $328.7 million , respectively. Passenger revenue associated with unused tickets, which represent unexercised passenger rights, is recognized in proportion to the pattern of rights exercised by related passengers (e.g. scheduled departure dates). To calculate the portion to be recognized as revenue in the period, the Company utilizes historical information and applies the trend rate to the current air traffic liability balances for that specific period. Certain governmental taxes are imposed on the Company's ticket sales through a fee included in ticket prices. The Company collects these fees and remits them to the appropriate government agency. Management has elected (via a practical expedient election) to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer, e.g., sales, use, value added, and certain excise taxes. These fees have been presented on a net basis in the accompanying Consolidated Statements of Operations and recorded as a liability until remitted. |
Frequent Flyer Program | Frequent Flyer Revenue. Hawaiian's frequent flyer travel award program provides a variety of awards to program members based on accumulated mileage. ASC 606 requires 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. Ticket consideration received is allocated between the performance obligations, primarily travel and miles earned by passengers. The allocated value of the miles is deferred until the free travel or other award is used by the passenger, at which time it is included in passenger revenue. The value of the ticket used in the determination of the estimated selling price is based on the historical value of equivalent flights to those provided for loyalty awards and the related miles redeemed to obtain that award adjusted for breakage or fulfillment. The equivalent ticket value (ETV) includes a fulfillment discount (breakage) to reflect the value of the award ticket over the number of miles that, based on historical experience, will be needed to obtain the award. On a quarterly basis, the Company calculates the ETV by analyzing the fares of similar tickets for the prior 12 months, considering cabin class and geographic region. The Company also sells mileage credits to companies participating in our frequent flyer program These contracts generally include multiple performance obligations, including the transportation that will ultimately be provided when the mileage credits are redeemed and marketing and brand related activities. The marketing and brand performance obligations are effectively provided each time a HawaiianMiles member uses the co-branded credit card and monthly access to customer lists and marketing is provided, which corresponds to the timing of when the Company issues or is obligated to issue the mileage credits to the HawaiianMiles member. Therefore, the Company recognizes revenue for the marketing and brand performance obligations when HawaiianMiles members use their co-brand credit card and the resulting mileage credits are issued to them, which best correlates with the Company’s performance in satisfying the obligation. During the first quarter of 2018, the Company amended its partnership with Barclaycard US, Hawaiian's co-branded credit card partner. Management determined that the amendment should be accounted for as a termination of the existing contract and the creation of a new contract under ASC 606 and the relative selling price was determined for each performance obligation of the new agreement. The new agreement continues through 2024 and includes improved economics and enhanced product offerings for our Barclay's co-branded cardholders. The amended agreement did not change, and includes the following performance obligations; (i) transportation that will ultimately be provided when mileage credits are redeemed (transportation), (ii) the Hawaiian Airlines brand and access to its members lists (collectively, brand performance), (iii) marketing, and (iv) airline benefits to cardholders, including discounts and anniversary travel benefits, baggage waivers and inflight purchase credits. The Company determined the relative fair value of each performance obligation by estimating the selling prices of the deliverables by considering discounted cash flows using multiple inputs and assumptions, including: (1) the expected number of miles to be awarded and redeemed; (2) the estimated weighted average equivalent ticket value, adjusted by a fulfillment discount; (3) the estimated total annual cardholder spend; (4) an estimated royalty rate for the Hawaiian portfolio; and (5) the expected use of each of the airline benefits. The overall consideration received is allocated to the performance obligations based on their relative selling prices. The transportation performance obligation is deferred and recognized as passenger revenue when the transportation is expected to be provided. Accounting for mileage sales to co-branded partners involves the use of various techniques to estimate revenue. To determine the total estimated transaction price, the Company forecasts future credit card activity using historical information. The relative selling price is determined using management’s standalone estimated selling price of each performance obligation. The objective of using the estimated selling price based methodology is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. Accordingly, the Company determines the best estimate of selling price by considering multiple inputs and methods including, but not limited to, discounted cash flows, brand value, published selling prices, number of miles awarded and number of miles redeemed. The Company estimates the selling price of miles using an ETV adjusted for a fulfillment discount as described above. The Company's frequent flyer liability is recorded in Air traffic liability (short-term) and Noncurrent frequent flyer deferred revenue in the Company's consolidated balance sheet based on estimated and expected redemption patterns using historical data and analysis. As of December 31, 2018 and 2017 , the balances were as follows: As of December 31, 2018 2017 (in thousands) Air traffic liability (current portion of frequent flyer deferred revenue) $ 168,570 $ 161,757 Noncurrent frequent flyer deferred revenue 163,619 149,764 Total frequent flyer liability $ 332,189 $ 311,521 Miles expire after 18 months of member account inactivity. The Company reviews its breakage estimates annually based upon the latest available information regarding redemption and expiration patterns (e.g., credit card and non-credit card holders). The Company’s estimate of the expected expiration of miles requires significant management judgment. Current and future changes to expiration assumptions or to the expiration policy, or to program rules and program could affect the estimated value of a mile. |
Accounts Receivable | Accounts Receivable Accounts receivable primarily consist of amounts due from credit card companies, non-airline partners, and cargo transportation customers. The Company provides an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical chargebacks, write-offs, bankruptcies and other specific analyses. Bad debt expense was not material in any period presented. |
Pension and Postretirement and Postemployment Benefits | Pension and Postretirement and Postemployment Benefits The Company accounts for its defined benefit pension and other postretirement and postemployment plans in accordance with ASC 715, Compensation—Retirement Benefits (ASC 715), which requires companies to measure their plans' assets and obligations to determine the funded status at fiscal year-end, reflect the funded status in the statement of financial position as an asset or liability, and recognize changes in the funded status of the plans in comprehensive income during the year in which the changes occur. Pension and other postretirement and postemployment benefit expenses are recognized on an accrual basis over each employee's service periods. Pension expense is generally independent of funding decisions or requirements. The Company uses the corridor approach in the valuation of its defined benefit pension and other postretirement and postemployment plans. The corridor approach defers all actuarial gains and losses resulting from variances between actual results and actuarial assumptions. These unrecognized actuarial gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the expected average remaining service period of active plan participants for the open plans and is amortized over the expected average remaining lifetime of inactive participants for plans whose population is “all or almost all” inactive. |
Advertising Costs | Advertising Costs Advertising costs are expensed when incurred. |
Capitalized Interest | Capitalized Interest Interest is capitalized upon the payment of predelivery deposits for aircraft and engines, and is depreciated over the estimated useful life of the asset from service inception date. |
Share-Based Compensation | Share-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value of the awards are estimated using the following: (1) option-pricing models for grants of stock options or (2) fair value at the measurement date (usually the grant date) for awards of stock subject to service and / or performance-based vesting. The resulting cost is recognized as compensation expense over the period of time during which an employee is required to provide services to the Company (the service period) in exchange for the award, the service period generally being the vesting period of the award. The Company's policy is to recognize forfeitures as they occur. |
Financial Derivative Instruments | Financial Derivative Instruments The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global aircraft fuel prices, interest rates and foreign currency exchange rates. The following table summarizes the accounting treatment of the Company's derivative contracts: Classification of Unrealized Gains (Losses) Derivative Type Accounting Designation Classification of Realized Gains and Losses Effective Portion Ineffective Portion Interest rate contracts Designated as cash flow hedges Interest expense and amortization of debt discounts and issuance costs AOCI Nonoperating income (expense) Foreign currency exchange contracts Designated as cash flow hedges Passenger revenue AOCI Nonoperating income (expense) Fuel hedge contracts Not designated as hedges Gains (losses) on fuel derivatives Change in fair value is recorded in nonoperating income (expense) Foreign currency exchange contracts Not designated as hedges Nonoperating income (expense), Other Change in fair value is recorded in nonoperating income (expense) If the Company terminates a derivative designated for hedge accounting under ASC 815, prior to its contractual settlement date, then the cumulative gain or loss recognized in AOCI at the termination date remains in AOCI until the forecasted transaction occurs. In a situation where it becomes probable that a hedged forecasted transaction will not occur, any gains and/or losses that have been recorded to AOCI would be required to be immediately reclassified into earnings. All cash flows associated with purchasing and settling derivatives are classified as operating cash flows in the Consolidated Statements of Cash Flows. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The standard focuses on a targeted improvement to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the Tax Act) enacted on December 22, 2017 from accumulated other comprehensive income to retained earnings. The Company elected to early adopt the standard in the year ended December 31, 2018 and reclassified tax benefit of $12.5 million from accumulated other comprehensive income to accumulated income in the Consolidated Balance Sheets. In May 2014, the Financial Accounting Standards Board (FASB) issued 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 replaced most existing revenue recognition guidance in GAAP and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted the standard as of January 1, 2018, utilizing the full retrospective transition method, which required the Company to restate prior reporting periods presented. The most significant impact of the standard relates to the accounting for the Company's frequent flyer travel award program. This change, as well as other less significant changes, are described below: • Frequent flyer - The standard requires 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 previously applied. The allocated value of miles earned through flights and sold to partners is recognized at the time the free travel or other award is redeemed by the passenger. Previously, the transportation element associated with sold miles was deferred and recognized as passenger revenue over the period when the transportation was expected to be provided ( 23 months). • Passenger revenue - Prior to the adoption of ASC 606, the Company recorded revenue for unused tickets when the tickets expired. Ticket change fees were previously recognized at the time the fees were assessed. Further, the Company reclassified revenue items such as checked baggage, charter, ticket change and cancellation fees, in flight revenue, and other incidental sales to passenger revenue (from other operating revenue), as these items do not represent distinct performance obligations separate from the transportation provided to the passenger. • Selling Costs - Prior to ASC 606, the Company recognized the costs associated with credit card and booking fees as they were incurred. Adoption of the revenue recognition standard impacted our previously reported results as follows: Year Ended December 31, 2016 As Previously Reported Adjustments As Restated (in thousands) Operating Revenue: Passenger $ 2,145,742 $ 125,945 $ 2,271,687 Other 304,838 (144,112 ) 160,726 Total $ 2,450,580 $ (18,167 ) $ 2,432,413 Operating Expenses 2,034,848 78 2,034,926 Operating Income 415,732 (18,245 ) 397,487 Nonoperating Income (Expense) (36,268 ) — (36,268 ) Income tax expense 144,032 (6,933 ) 137,099 Net Income $ 235,432 $ (11,312 ) $ 224,120 Net Income Per Common Stock Share: Basic $ 4.40 $ (0.21 ) $ 4.19 Diluted $ 4.36 $ (0.21 ) $ 4.15 Year Ended December 31, 2017 As Previously Reported Adjustments As Restated (in thousands) Operating Revenue: Passenger $ 2,362,076 $ 124,751 $ 2,486,827 Other 333,552 (145,234 ) 188,318 Total $ 2,695,628 $ (20,483 ) $ 2,675,145 Operating Expenses 2,211,856 (749 ) 2,211,107 Operating Income 483,772 (19,734 ) 464,038 Nonoperating Income (Expense) (73,217 ) — (73,217 ) Income tax expense 46,514 13,697 60,211 Net Income $ 364,041 $ (33,431 ) $ 330,610 Net Income Per Common Stock Share: Basic $ 6.86 $ (0.63 ) $ 6.23 Diluted $ 6.82 $ (0.63 ) $ 6.19 December 31, 2017 As Previously Reported Adjustments As Restated (in thousands) ASSETS Prepaid expenses and other $ 65,196 $ 13,990 $ 79,186 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Air traffic liability 545,362 43,731 589,093 Other accrued liabilities 146,283 1,310 147,593 Noncurrent Liabilities: Other liabilities and deferred credits 95,636 (19,795 ) 75,841 Noncurrent frequent flyer deferred revenue — 149,764 149,764 Deferred tax liability 174,344 (40,203 ) 134,141 Shareholders' Equity: Accumulated income 913,951 (120,817 ) 793,134 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 the 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. The adoption of this standard is not expected to have an impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (codified within ASC 842, Leases ). ASC 842 requires a lessee to recognize a right-of-use asset and a lease liability in the statement of financial position for all leases (with the exception of short-term leases) at the lease commencement date and recognize expenses similar to the current ASC 840, Leases. ASC 842 is effective for fiscal years, and interim periods beginning after December 15, 2018, and early adoption is permitted. The Company currently plans to utilize the optional transition method for adoption of ASC 842, which allows entities to continue to apply the legacy guidance in Topic 840, including its disclosure requirements, in the comparative periods presented in the year of adoption. The Company plans to adopt ASU 2016-02 on January 1, 2019, as required. Under ASU 2016-02, the lease liability will be measured at the present value of remaining lease payments and the right-of-use (ROU) asset will be derived from the calculation of the lease liability, adjusted for any historically recorded amounts under Topic 840 for rent leveling and certain other adjustments (ROU Asset). Lease payments, which are comparable to the minimum lease payments included in the Company's existing lease commitments disclosure, include fixed and in-substance fixed payments, variable payments based on an index or rate, reasonably certain purchase options, termination penalties and probable amounts the lessee will owe under a residual value guarantee. Lease payments exclude variable payments other than those based on an index or rate or any amount allocated to non-lease components (unless the practical expedient is elected on an asset class level to combine components). Variable lease payments will continue to be expensed as incurred. The Company completed its preliminary evaluation of implementing ASU 2016-02 and believes that the most significant impact on its financial statements will be the consolidated balance sheet impact of recording the ROU Asset and Operating Lease Liability for existing aircraft and engine leases, its Maintenance Hangar lease with the State of Hawaii, and certain real estate leases. As of December 31, 2018, the Company had 17 aircraft and 5 engines under operating lease in its fleet. The net present value of future lease payments for the aforementioned leases range between $550 million and $650 million . The Company also has operating leases related to terminal operations and office space, which are not included in the range provided, because the majority of these leases have variable payments and are not expected to be included in the Operating Lease Liability at adoption. Management does not believe that the impact of adopting ASC 842 will be significant to the consolidated statement of operations and consolidated statements of cash flows. ASC 842 also eliminates the current build-to-suit lease accounting guidance and is expected to result in derecognition of build-to-suit assets and liabilities that remained on the balance sheet after the end of the construction period and then the application of lease accounting to the agreement. See Note 9 for additional discussion on the Company's build-to-suit project. Management concluded that the lease will be accounted for as an operating lease under ASC 842, which will result in operating lease expense being recognized equally over the lease term, which is a change from the current treatment as a financing, similar to capital lease treatment. The present value of the Operating Lease Liability, including the amount previously recognized as a financing liability of $73.0 million , is included in the range discussed above. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives and residual values of property and equipment | Estimated useful lives and residual values of property and equipment are as follows: Boeing 717-200 aircraft and engines 7 - 11 years, 7 - 34% residual value Boeing 767-300 aircraft and engines (1) Through retirement in 2019 Airbus A330-200 aircraft and engines 25 years, 10% residual value Airbus A321neo aircraft and engines 25 years, 10% residual value ATR turboprop aircraft and engines 10 years, 15% residual value Flight and ground equipment under capital lease Shorter of lease term or useful life Major rotable parts Average lease term or useful life for related aircraft, 10% - 15% residual value Improvements to leased flight equipment and the cargo maintenance hangar Shorter of lease term or useful life Facility leasehold improvements Shorter of lease term, including assumed lease renewals when renewal is economically compelled at key airports, or useful life Furniture, fixtures and other equipment 3 - 7 years, no residual value Capitalized software 3 - 7 years, no residual value (1) The Company will retire its Boeing 767-300 aircraft and flight equipment in the first quarter of 2019. |
Disaggregation of revenue | These amounts are recognized when the service is provided. Year Ended December 31, 2018 2017 2016 Passenger Revenue by Type (in thousands) Passenger revenue, excluding frequent flyer $ 2,454,811 $ 2,351,062 $ 2,146,258 Frequent flyer revenue, transportation component 147,982 135,765 125,429 Passenger Revenue $ 2,602,793 $ 2,486,827 $ 2,271,687 Other revenue (e.g. cargo and other miscellaneous) $ 163,140 $ 142,172 $ 115,379 Frequent flyer revenue, marketing and brand component 71,478 46,146 45,347 Other Revenue $ 234,618 $ 188,318 $ 160,726 The Company's operating revenues by geographic region (as defined by the Department of Transportation, DOT) are summarized below: Year Ended December 31, 2018 2017 2016 (in thousands) Domestic $ 2,071,861 $ 1,976,971 $ 1,874,039 Pacific 765,550 698,174 558,374 Total operating revenue $ 2,837,411 $ 2,675,145 $ 2,432,413 |
Schedule of frequent flyer liability for future award redemptions | As of December 31, 2018 and 2017 , the balances were as follows: As of December 31, 2018 2017 (in thousands) Air traffic liability (current portion of frequent flyer deferred revenue) $ 168,570 $ 161,757 Noncurrent frequent flyer deferred revenue 163,619 149,764 Total frequent flyer liability $ 332,189 $ 311,521 |
Summary of accounting treatment of derivative contracts | The following table summarizes the accounting treatment of the Company's derivative contracts: Classification of Unrealized Gains (Losses) Derivative Type Accounting Designation Classification of Realized Gains and Losses Effective Portion Ineffective Portion Interest rate contracts Designated as cash flow hedges Interest expense and amortization of debt discounts and issuance costs AOCI Nonoperating income (expense) Foreign currency exchange contracts Designated as cash flow hedges Passenger revenue AOCI Nonoperating income (expense) Fuel hedge contracts Not designated as hedges Gains (losses) on fuel derivatives Change in fair value is recorded in nonoperating income (expense) Foreign currency exchange contracts Not designated as hedges Nonoperating income (expense), Other Change in fair value is recorded in nonoperating income (expense) |
Schedule of recast unaudited financial information reflecting ASC 606 | Adoption of the revenue recognition standard impacted our previously reported results as follows: Year Ended December 31, 2016 As Previously Reported Adjustments As Restated (in thousands) Operating Revenue: Passenger $ 2,145,742 $ 125,945 $ 2,271,687 Other 304,838 (144,112 ) 160,726 Total $ 2,450,580 $ (18,167 ) $ 2,432,413 Operating Expenses 2,034,848 78 2,034,926 Operating Income 415,732 (18,245 ) 397,487 Nonoperating Income (Expense) (36,268 ) — (36,268 ) Income tax expense 144,032 (6,933 ) 137,099 Net Income $ 235,432 $ (11,312 ) $ 224,120 Net Income Per Common Stock Share: Basic $ 4.40 $ (0.21 ) $ 4.19 Diluted $ 4.36 $ (0.21 ) $ 4.15 Year Ended December 31, 2017 As Previously Reported Adjustments As Restated (in thousands) Operating Revenue: Passenger $ 2,362,076 $ 124,751 $ 2,486,827 Other 333,552 (145,234 ) 188,318 Total $ 2,695,628 $ (20,483 ) $ 2,675,145 Operating Expenses 2,211,856 (749 ) 2,211,107 Operating Income 483,772 (19,734 ) 464,038 Nonoperating Income (Expense) (73,217 ) — (73,217 ) Income tax expense 46,514 13,697 60,211 Net Income $ 364,041 $ (33,431 ) $ 330,610 Net Income Per Common Stock Share: Basic $ 6.86 $ (0.63 ) $ 6.23 Diluted $ 6.82 $ (0.63 ) $ 6.19 December 31, 2017 As Previously Reported Adjustments As Restated (in thousands) ASSETS Prepaid expenses and other $ 65,196 $ 13,990 $ 79,186 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Air traffic liability 545,362 43,731 589,093 Other accrued liabilities 146,283 1,310 147,593 Noncurrent Liabilities: Other liabilities and deferred credits 95,636 (19,795 ) 75,841 Noncurrent frequent flyer deferred revenue — 149,764 149,764 Deferred tax liability 174,344 (40,203 ) 134,141 Shareholders' Equity: Accumulated income 913,951 (120,817 ) 793,134 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Information related to amounts reclassified from AOCI | Reclassifications out of accumulated other comprehensive loss by component is as follows: Year ended December 31, Details about accumulated other comprehensive loss components 2018 2017 2016 Affected line items in the statement where net income is presented (in thousands) Derivatives designated as hedging instruments under ASC 815 Foreign currency derivative (gains) losses, net $ (1,380 ) $ (2,391 ) $ 196 Passenger revenue Interest rate derivative losses, net — — 944 Interest expense Total before tax (1,380 ) (2,391 ) 1,140 Tax expense (benefit) 339 906 (438 ) Total, net of tax $ (1,041 ) $ (1,485 ) $ 702 Amortization of defined benefit pension items Actuarial loss $ 2,708 $ 8,792 $ 7,730 Nonoperating Income (Expense), Other, net Prior service cost 225 254 227 Nonoperating Income (Expense), Other, net Partial settlement and curtailment loss — 10,384 — Other nonoperating special items Loss on plan termination — 35,201 — Other nonoperating special items Total before tax 2,933 54,631 7,957 Tax benefit (671 ) (21,519 ) (3,048 ) Total, net of tax $ 2,262 $ 33,112 $ 4,909 Short-term investments Realized (gain) loss on sales of investments, net 107 (32 ) (108 ) Nonoperating Income (Expense), Other, net Total before tax 107 (32 ) (108 ) Tax expense (26 ) 12 41 Total, net of tax 81 (20 ) (67 ) Total reclassifications for the period $ 1,302 $ 31,607 $ 5,544 |
Schedule of amounts included in accumulated other comprehensive loss, net of taxes | A rollforward of the amounts included in accumulated other comprehensive loss, net of taxes, is as follows: Year ended December 31, 2018 Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ 1,249 $ (75,953 ) $ (560 ) $ (75,264 ) Reclassification of stranded tax effects (a) 269 (12,659 ) (120 ) (12,510 ) Other comprehensive income (loss) before reclassifications, net of tax 2,840 (9,505 ) (3 ) (6,668 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (1,041 ) 2,262 81 1,302 Net current-period other comprehensive income (loss), net of tax 1,799 (7,243 ) 78 (5,366 ) Ending balance $ 3,317 $ (95,855 ) $ (602 ) $ (93,140 ) (a) Amounts represent the reclassification from AOCI to RE of the stranded tax effectives resulting from the enactment of the Tax Act and adoption of ASU 2018-02. Year ended December 31, 2017 Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ 7,071 $ (110,202 ) $ (362 ) $ (103,493 ) Other comprehensive income (loss) before reclassifications, net of tax (4,337 ) 1,137 (178 ) (3,378 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (1,485 ) 33,112 (20 ) 31,607 Net current-period other comprehensive income (loss), net of tax (5,822 ) 34,249 (198 ) 28,229 Ending balance $ 1,249 $ (75,953 ) $ (560 ) $ (75,264 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings (loss) per share basic and diluted | The following table shows our computation of basic and diluted earnings per share: Year Ended December 31, 2018 2017 2016 (in thousands, except for per share data) Numerator: Net Income $ 233,200 $ 330,610 $ 224,120 Denominator: Weighted average common shares outstanding—Basic 50,338 53,074 53,502 Assumed exercise of stock options and awards 150 339 450 Assumed exercise of convertible note premium — — 6 Weighted average common shares outstanding—Diluted 50,488 53,413 53,958 Net Income Per Common Stock Share: Basic $ 4.63 $ 6.23 $ 4.19 Diluted $ 4.62 $ 6.19 $ 4.15 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Investments [Abstract] | |
Summary of short-term investments | The following is a summary of short-term investments held as of December 31, 2018 and 2017 : December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate debt $ 142,748 $ 49 $ (695 ) $ 142,102 U.S. government and agency debt 37,163 3 (59 ) 37,107 Municipal bonds 9,903 — (32 ) 9,871 Other fixed income securities 43,183 2 (24 ) 43,161 Total short-term investments $ 232,997 $ 54 $ (810 ) $ 232,241 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate debt $ 165,610 $ 8 $ (535 ) $ 165,083 U.S. government and agency debt 59,054 1 (215 ) 58,840 Municipal bonds 21,517 — (104 ) 21,413 Other fixed income securities 23,973 1 (13 ) 23,961 Total short-term investments $ 270,154 $ 10 $ (867 ) $ 269,297 |
Contractual maturities of short-term investments | Contractual maturities of short-term investments as of December 31, 2018 are shown below. Under 1 Year 1 to 5 Years Total (in thousands) Corporate debt $ 69,957 $ 72,145 $ 142,102 U.S. government and agency debt 28,164 8,943 37,107 Municipal bonds 8,288 1,583 9,871 Other fixed income securities 35,990 7,171 43,161 Total short-term investments $ 142,399 $ 89,842 $ 232,241 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value on a recurring basis | The following tables present information about the Company's financial assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements as of December 31, 2018 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 121,154 $ 42,175 $ 78,979 $ — Restricted cash — — — — Short-term investments 232,241 — 232,241 — Fuel derivative contracts: 1,572 — 1,572 — Foreign currency derivatives 4,579 — 4,579 — Total assets measured at fair value $ 359,546 $ 42,175 $ 317,371 $ — Foreign currency derivatives 1,347 — 1,347 — Total liabilities measured at fair value $ 1,347 $ — $ 1,347 $ — Fair Value Measurements as of December 31, 2017 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 62,310 $ 27,807 $ 34,503 $ — Restricted cash 1,000 1,000 — — Short-term investments 269,297 — 269,297 — Fuel derivative contracts: Crude oil call options 20,272 — 20,272 — Jet fuel swaps 336 — 336 — Foreign currency derivatives 4,300 — 4,300 — Total assets measured at fair value $ 357,515 $ 28,807 $ 328,708 $ — Foreign currency derivatives 1,713 — 1,713 — Total liabilities measured at fair value $ 1,713 $ — $ 1,713 $ — |
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 and financing obligations) measured at fair value: Fair Value of Debt December 31, 2018 December 31, 2017 Carrying Fair Value Carrying Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (in thousands) (in thousands) $ 467,760 $ 461,805 $ — $ — $ 461,805 $ 433,072 $ 444,099 $ — $ — $ 444,099 |
Financial Derivative Instrume_2
Financial Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 Consolidated Statements of Operations. Year Ended December 31, 2018 2017 2016 (in thousands) Gains (losses) realized at settlement $ 25,563 $ (534 ) $ (27,572 ) Prior period unrealized amounts (11,792 ) (7,946 ) 39,731 Unrealized gains (losses) that will settle in future periods (8,181 ) 11,792 7,947 Gains on fuel derivatives recorded as Nonoperating income (expense) $ 5,590 $ 3,312 $ 20,106 |
Schedule of fair value of the asset and liability derivatives and net derivative positions | The following tables present the gross fair value of asset and liability derivatives that are designated as hedging instruments under ASC 815 and derivatives that are not designated as hedging instruments under ASC 815, as well as the net derivative positions and location of the asset and liability balances within the Consolidated Balance Sheets. Derivative positions as of December 31, 2018 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 15,933,550 Japanese Yen December 2019 $ 3,922 $ (915 ) $ 3,007 Long-term prepayments and other 4,491,350 Japanese Yen December 2020 633 (292 ) 341 Derivatives not designated as hedges Foreign currency derivatives Other accrued liabilities 832,900 Japanese Yen March 2019 24 (140 ) (116 ) Fuel derivative contracts Prepaid expenses and other 95,256 gallons December 2019 1,572 — 1,572 Derivative positions as of December 31, 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 16,732,375 Japanese Yen December 2018 $ 3,737 $ (1,441 ) $ 2,296 Long-term prepayments and other 4,666,700 Japanese Yen December 2019 546 (195 ) 351 Derivatives not designated as hedges Foreign currency derivatives Other accrued liabilities 866,150 Japanese Yen March 2018 17 (77 ) (60 ) Fuel derivative contracts Prepaid expenses and other 94,332 gallons December 2018 20,608 — 20,608 |
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 Consolidated Statements of Comprehensive Income. (Gain) Loss recognized in AOCI on derivatives (effective portion) (Gain) Loss reclassified from AOCI into income (effective portion) Gain recognized in nonoperating (income) expense (ineffective portion) Year ended December 31, Year ended December 31, Year ended December 31, 2018 2017 2016 2018 2017 2016 2018 2017 2016 (in thousands) Foreign currency derivatives $ (3,766 ) $ 6,983 $ (3,350 ) $ (1,380 ) $ (2,391 ) $ 196 $ — $ — $ — Interest rate derivatives — — 923 — — 944 — — — |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of gross carrying values of intangible assets less accumulated amortization | The following tables summarize the gross carrying values of intangible assets less accumulated amortization, and the useful lives assigned to each asset. As of December 31, 2018 Gross carrying Accumulated Net book value Approximate (in thousands) Favorable aircraft maintenance contracts $ 8,740 $ (8,284 ) $ 456 14 (*) Trade name 13,500 — 13,500 Indefinite Other 1,388 (1,195 ) 193 3 Total intangible assets $ 23,628 $ (9,479 ) $ 14,149 As of December 31, 2017 Gross carrying Accumulated Net book value Approximate (in thousands) Favorable aircraft maintenance contracts $ 8,740 $ (7,708 ) $ 1,032 14 (*) Trade name 13,500 — 13,500 Indefinite Other 1,388 (733 ) 655 3 Total intangible assets $ 23,628 $ (8,441 ) $ 15,187 _______________________________________________________________________________ (*) Weighted average is based on the gross carrying values and estimated useful lives as of June 2, 2005 (the date Hawaiian emerged from bankruptcy). |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, including capital lease obligations | Long-term debt (including capital and financing lease obligations) net of unamortized discounts is outlined as follows: 2018 2017 (in thousands) Class A EETC, fixed interest rate of 3.9%, semiannual principal and interest payments, remaining balance due at maturity in January 2026(1) $ 245,845 $ 263,864 Class B EETC, fixed interest rate of 4.95%, semiannual principal and interest payments, remaining balance of due at maturity in January 2022(1) 88,608 94,580 Boeing 717-200 Aircraft Facility Agreements, fixed interest rate of 8%, monthly principal and interest payments, remaining balance due at maturity in June 2019(2) 50,376 74,629 Japanese Yen denominated financing, fixed interest rate of 1.05%, quarterly principal and interest payments, remaining balance due at maturity in May 2030 42,116 — Japanese Yen denominated financing, fixed interest rate of 1.01%, semiannual principal and interest payments, remaining balance due at maturity in June 2030 40,815 — Capital & Financing lease obligations (see Note 9) 252,517 149,039 Total debt, capital, and financing lease obligations $ 720,277 $ 582,112 Less: Unamortized debt discount and debt issuance costs (10,496 ) (11,441 ) Current maturities (101,097 ) (59,470 ) Long-Term Debt, less discount, Capital, and Financing Lease Obligations $ 608,684 $ 511,201 _______________________________________________________________________________ (1) The equipment notes underlying these EETCs are the direct obligations of Hawaiian. (2) Aircraft Facility Agreements are secured by aircraft. |
Schedule of maturities of long-term debt | As of December 31, 2018 , the scheduled maturities of long-term debt are as follows (in thousands): 2019 $ 81,075 2020 29,597 2021 56,557 2022 63,665 2023 28,466 Thereafter 208,400 $ 467,760 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of future minimum rental payments under capital and operating leases | As of December 31, 2018 , the scheduled future minimum rental payments under capital leases and operating leases with non-cancellable basic terms of more than one year are as follows: Capital & Financing Leases Operating Leases Aircraft Other Aircraft Other (in thousands) 2019 $ 24,850 $ 7,909 $ 106,448 $ 5,730 2020 24,850 5,908 90,417 5,709 2021 24,850 4,630 74,315 5,846 2022 24,705 4,870 68,208 5,930 2023 21,370 8,207 59,925 5,975 Thereafter 75,891 111,651 159,271 89,699 196,516 143,175 $ 558,584 $ 118,889 Less amounts representing interest (35,502 ) (51,672 ) Present value of minimum capital & financing lease payments $ 161,014 $ 91,503 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Significant components of income tax expense | The significant components of income tax expense are as follows: Years Ended December 31, 2018 2017 2016 (in thousands) Current Federal $ 23,438 $ 49,835 $ 94,459 State 9,087 11,471 13,201 $ 32,525 $ 61,306 $ 107,660 Deferred Federal $ 29,782 $ (7,017 ) $ 25,948 State 5,651 5,922 3,491 $ 35,433 $ (1,095 ) $ 29,439 Income tax expense $ 67,958 $ 60,211 $ 137,099 |
Schedule of reconciliation between income tax expense and amounts computed at the statutory federal income tax rate | The income tax expense differed from amounts computed at the statutory federal income tax rate as follows: Years Ended December 31, 2018 2017 2016 (in thousands) Income tax expense computed at the statutory federal rate $ 63,243 $ 136,788 $ 126,427 Increase (decrease) resulting from: State income taxes, net of federal tax effect 11,643 11,095 10,714 Nondeductible meals 797 1,146 1,100 Tax Cuts and Jobs Act impact (9,333 ) (82,978 ) — Excess tax benefits from stock issuance (188 ) (5,288 ) — Other 1,796 (552 ) (1,142 ) Income tax expense $ 67,958 $ 60,211 $ 137,099 |
Components of deferred tax asset and liabilities | The components of the Company's deferred tax assets and liabilities were as follows: December 31, 2018 2017 (in thousands) Deferred tax assets: Accumulated pension and other postretirement benefits $ 45,663 $ 54,784 Leases 3,515 4,490 Air traffic liability and frequent flyer liability 70,206 53,102 Partnership deferred revenue 9,697 2,455 State net operating loss carryforwards 2,547 2,547 Accrued compensation 15,843 7,627 Other accrued assets 11,758 11,661 Fuel derivative contracts 2,390 2,156 Other assets 14,031 10,187 Total gross deferred tax assets 175,650 149,009 Less: Valuation allowance (2,547 ) (2,547 ) Net deferred tax assets $ 173,103 $ 146,462 Deferred tax liabilities: Intangible assets $ (3,297 ) $ (3,432 ) Property and equipment, principally accelerated depreciation (324,614 ) (265,293 ) Other liabilities (12,962 ) (11,878 ) Total deferred tax liabilities (340,873 ) (280,603 ) Net deferred tax liability $ (167,770 ) $ (134,141 ) |
Reconciliation of unrecognized tax benefits related to uncertain tax positions | The table below reconciles beginning and ending amounts of unrecognized tax benefits related to uncertain tax positions: 2018 2017 2016 (in thousands) Balance at January 1 $ 4,081 $ 3,329 $ — Increases related to prior year tax positions 336 253 2,830 Increases related to current year tax positions 669 499 499 Balance at December 31 $ 5,086 $ 4,081 $ 3,329 |
Contract Termination Expense _2
Contract Termination Expense and Special Items (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Special Charges | Contract terminations expense and special items in the statements of consolidated operations consisted of the following: Year Ended December 31, 2018 2017 2016 (in thousands) Operating Contract terminations expense (1) $ 35,322 $ — $ — Operating special items: Loss on sale of aircraft (3) — 4,771 — Collective bargaining agreement (4)(6) — 18,679 38,781 Impairment charge in connection with its owned Boeing 767-300 fleet and related assets (5) — — 49,361 Termination of Boeing 767-300 engine maintenance contract (7) — — 21,000 Total Contract terminations expense and Operating special items $ 35,322 $ 23,450 $ 109,142 Nonoperating Other nonoperating special items: Partial settlement and curtailment loss (2) $ — $ 10,384 $ — Loss on plan termination (2) — 35,201 — Total Other nonoperating special items $ — $ 45,585 $ — Contract terminations expense (1) During the twelve months ended December 31, 2018, the Company terminated two contracts which incurred a total of $35.3 million in contract terminations expense. The transactions are described below: In February 2018, the Company exercised its right to terminate the aircraft purchase agreement between the Company and Airbus for six Airbus A330-800neo aircraft and the purchase rights for an additional six Airbus A330-800neo aircraft. To terminate the purchase agreement, the Company was obligated to repay Airbus for concessions received relating to a prior firm order, training credits, as well as forfeit the pre-delivery progress payments made towards the flight equipment. The Company recorded a contract terminations expense to reflect a portion of the termination penalty within the Consolidated Statements of Operations. In January 2018, the Company entered into a transaction with its lessor to early terminate and purchase three Boeing 767-300 aircraft leases and concurrently entered into a forward sale agreement for the same three Boeing 767-300 aircraft, including two Pratt & Whitney 4060 engines for each aircraft. These aircraft were previously accounted for as operating leases. In order to exit the lease and purchase the aircraft, the Company agreed to pay a total of $67.1 million (net of all deposits) of which a portion was expensed immediately and recognized as a contract termination fee. The expensed amount represents the total purchase price amount over fair value of the aircraft purchased as of the date of the transaction. Special items (2) In August 2017, the Company terminated the Hawaiian Airlines, Inc. Salaried & IAM Merged Pension Plan (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 $10.4 million related to the other post-retirement (OPEB) medical plan partial settlement. (3) 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 end between November 2018 through January 2019. During the twelve months ended December 31, 2017, the Company recorded a loss on sale of aircraft of $4.8 million . (4) 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 twelve months ended December 31, 2017, the Company expensed $18.7 million principally related to a one-time payment to reduce the Company's future 401K employer contribution for certain pilot groups, which is not recoverable once paid. (5) The impairment analysis and ultimate charge was triggered by the decision in the fourth quarter of 2016 to exit the Boeing 767-300 fleet in 2018. The early exit of the Boeing 767-300 fleet was made possible by the Company's decision to acquire one Airbus A330-200 (delivered in 2017), lease two additional Airbus A321neo's (delivered in 2018 and in addition to the Company's existing aircraft orders), and the Company's ability to early terminate its long-term power-by-the-hour maintenance contract for the Boeing 767-300 fleet. This fleet change allows the Company to streamline the fleet, simplify operations, and potentially reduce costs in the future. In order to assess whether there was an impairment of the Boeing 767-300 asset group, the Company compared the projected undiscounted cash flows of the fleet to the book value of the assets and determined the book value was in excess of the undiscounted cash flows. The Company estimated the fair value of the owned Boeing 767-300 fleet assets using third party pricing information and quotes from potential buyers, which resulted in a $49.4 million impairment charge ( $0.92 per diluted share). The Company's determination of fair value considered attributes specific to the owned Boeing 767-300 fleet and aircraft condition (e.g. age, maintenance requirements, cycles, etc.). (6) In 2016, the Company accrued $34.0 million associated with the tentative agreement with ALPA related to past service (prior to January 1, 2017) and also elected to pay a $4.8 million profit sharing bonus payment to other labor groups related to prior period service. (7) In connection with the decision to exit the Boeing 767-300 fleet, the Company negotiated a termination of its Boeing 767-300 maintenance agreement and recorded a $21.0 million charge related to the amount paid to terminate the contract. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Summary of changes | The following tables summarize changes to projected benefit obligations, plan assets, funded status and applicable amounts included in the Consolidated Balance Sheets: 2018 2017 Pension Other Pension Other (in thousands) Change in benefit obligations Benefit obligations, beginning of year $ (426,066 ) $ (120,417 ) $ (462,762 ) $ (224,316 ) Service cost (352 ) (8,119 ) (480 ) (12,403 ) Interest cost (15,599 ) (4,708 ) (18,042 ) (8,022 ) Actuarial gains (losses) 22,677 6,007 (42,775 ) 17,484 Benefits paid 21,253 4,639 23,999 4,587 Less: federal subsidy on benefits paid N/A (50 ) N/A (57 ) Plan amendments — — — 381 Settlements — — 73,994 101,929 Benefit obligation at end of year (a) $ (398,087 ) $ (122,648 ) $ (426,066 ) $ (120,417 ) Change in plan assets Fair value of assets, beginning of year $ 296,386 $ 26,078 $ 302,982 $ 24,751 Actual return on plan assets (17,339 ) (1,697 ) 42,652 2,629 Employer contribution 50,230 6,621 48,745 3,285 Benefits paid (21,253 ) (4,639 ) (23,999 ) (4,587 ) Settlements — — (73,994 ) — Fair value of assets at end of year $ 308,024 $ 26,363 $ 296,386 $ 26,078 Unfunded status at December 31 $ (90,063 ) $ (96,285 ) $ (129,680 ) $ (94,339 ) Amounts recognized in the statement of financial position consist of: Current benefit liability $ (386 ) $ (3,342 ) $ (214 ) $ (3,017 ) Noncurrent benefit liability (89,677 ) (92,943 ) (129,466 ) (91,322 ) $ (90,063 ) $ (96,285 ) $ (129,680 ) $ (94,339 ) Amounts recognized in accumulated other comprehensive loss Unamortized actuarial loss (gain) $ 124,560 $ (15,606 ) $ 112,417 $ (13,521 ) Prior service cost (credit) — 1,737 — 1,962 $ 124,560 $ (13,869 ) $ 112,417 $ (11,559 ) _______________________________________________________________________________ (a) The accumulated pension benefit obligation as of December 31, 2018 and 2017 was $397.5 million and $424.2 million , respectively. |
Schedule of net periodic benefit cost | The following table sets forth the net periodic benefit cost: 2018 2017 2016 Pension Other Pension Other Pension Other (in thousands) Components of Net Periodic Benefit Cost Service cost $ 352 $ 8,119 $ 480 $ 12,403 $ 681 $ 13,618 Other cost: Interest cost 15,599 4,708 18,042 8,022 19,969 10,227 Expected return on plan assets (20,948 ) (1,413 ) (17,291 ) (1,106 ) (16,746 ) (1,137 ) Recognized net actuarial loss (gain) 3,482 (774 ) 9,033 (241 ) 7,526 204 Prior service cost (credit) — 225 (28 ) 282 (2 ) 229 Total other components of the net periodic benefit cost $ (1,867 ) $ 2,746 $ 9,756 $ 6,957 $ 10,747 $ 9,523 Settlement and curtailment loss — — 35,201 10,384 — — Net periodic benefit cost $ (1,515 ) $ 10,865 $ 45,437 $ 29,744 $ 11,428 $ 23,141 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss Current year actuarial (gain) loss $ 15,625 $ (2,858 ) $ 17,414 $ (18,972 ) $ 25,559 $ (7,677 ) Current year prior service cost — — — (381 ) (932 ) — Amortization of actuarial gain (loss) (3,482 ) 774 (9,033 ) 241 (7,526 ) (204 ) Amortization of prior service credit (cost) — (225 ) 28 (282 ) 2 (229 ) Settlement and curtailment loss — — (35,201 ) (10,384 ) — — Total recognized in other comprehensive loss $ 12,143 $ (2,309 ) $ (26,792 ) $ (29,778 ) $ 17,103 $ (8,110 ) Total recognized in net periodic benefit cost and other comprehensive loss $ 10,628 $ 8,556 $ 18,645 $ (34 ) $ 28,531 $ 15,031 |
Schedule of weighted average actuarial assumptions | The weighted average actuarial assumptions used to determine the net periodic benefit expense and the projected benefit obligation were as follows: Pension Postretirement Disability 2018 2017 2018 2017 2018 2017 Discount rate to determine net periodic benefit expense 3.70 % 4.19 % 3.71 % 4.29 % 3.72 % 4.24 % Discount rate to determine projected benefit obligation 4.35 % 3.70 % 4.36 % 3.71 % 4.39 % 3.72 % Expected return on plan assets 7.33 % ** 6.34 % N/A N/A 4.90 % ** 4.60 % Rate of compensation increase Various * Various * N/A N/A Various * Various * Health care trend rate to determine net periodic benefit expense N/A N/A 7.25 % 7.75 % N/A N/A Ultimate trend rate N/A N/A 4.75 % 7.25 % N/A N/A Years to reach ultimate trend rate N/A N/A 5 6 N/A N/A Health care trend rate to determine projected benefit obligation N/A N/A 6.75 % 7.25 % N/A N/A Ultimate trend rate N/A N/A 4.75 % 4.75 % N/A N/A Years to reach ultimate trend rate N/A N/A 4 5 N/A N/A _______________________________________________________________________________ * Differs for each pilot based on current fleet and seat position on the aircraft and seniority service. Negotiated salary increases and expected changes in fleet and seat positions on the aircraft are included in the assumed rate of compensation increase, which ranged from 2.0% to 7.3% in both 2018 and 2017 ). ** Expected return on plan assets used to determine the net periodic benefit expense for 2019 is 6.91% for Pension and 4.90% for Disability. |
Summary of effects a change in the assumed health care cost trend rates | A change in the assumed health care cost trend rates would have the following effects: 100 Basis 100 Basis (in thousands) Effect on postretirement benefit obligation at December 31, 2018 $ 8,048 $ (6,916 ) Effect on total service and interest cost for the year ended December 31, 2018 892 (744 ) |
Estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost | Estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2019 are as follows: Pension Other (in thousands) Actuarial (gain) loss $ 4,031 $ (707 ) Amortization of prior service cost — 225 To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss $ 4,031 $ (482 ) |
Schedule of actual allocation of the pension and disability plan assets and the target allocation of assets by category | The actual allocation of the Company's pension and disability plan assets and the target allocation of assets by category at December 31, 2018 are as follows: Asset Allocation for Pilots pension and VEBA Plans 2018 Target Equity securities 57 % 60 % Fixed income securities 39 % 35 % Real estate investment trusts 4 % 5 % 100 % 100 % |
Schedule of fair values of pension plan and other postretirement plan investments | The table below presents the fair value of the Company's pension plan and other postretirement plan investments (excluding cash and receivables): Fair Value Measurements as of December 31, 2018 2017 (in thousands) Pension Plan Assets: Equity index funds $ 175,583 $ 177,252 Fixed income funds 110,650 100,504 Real estate investment fund 14,718 14,587 Insurance company pooled separate account 7,076 4,044 Total $ 308,027 $ 296,387 Postretirement Assets: Common collective trust fund $ 26,217 $ 25,973 |
Projected benefit payments | The Company projects that Hawaiian's pension plans and other postretirement benefit plans will make the following benefit payments, which reflect expected future service, during the years ending December 31: Other Benefits Pension Gross Expected (in thousands) 2019 $ 23,343 $ 5,254 $ (47 ) 2020 24,471 6,040 (51 ) 2021 25,252 6,848 (54 ) 2022 25,730 7,425 (56 ) 2023 26,189 8,051 (58 ) 2024 - 2028 132,395 47,804 (304 ) $ 257,380 $ 81,422 $ (570 ) |
Capital Stock and Share-based_2
Capital Stock and Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Performance-Based Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Awards | The following table summarizes information about performance-based stock awards: Number of units Weighted Non-vested at January 1, 2016 678,742 $ 10.53 Granted 117,849 33.94 Vested (349,403 ) 7.32 Forfeited (24,891 ) 13.45 Non-vested at December 31, 2016 422,297 $ 14.00 Granted 355,897 43.51 Vested (358,619 ) 12.71 Forfeited (37,619 ) 27.60 Non-vested at December 31, 2017 381,956 $ 28.03 Granted 160,348 39.09 Vested (211,053 ) 26.28 Forfeited (69,399 ) 39.42 Non-vested at December 31, 2018 261,852 $ 33.01 |
Service-Based Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Awards | The following table summarizes information about outstanding service-based stock awards: Number of units Weighted Non-vested at January 1, 2016 270,721 $ 15.02 Granted 110,276 37.08 Vested (169,218 ) 16.32 Forfeited (16,330 ) 20.46 Non-vested at December 31, 2016 195,449 $ 24.29 Granted 22,898 49.95 Vested (110,575 ) 23.80 Forfeited (16,394 ) 26.71 Non-vested at December 31, 2017 91,378 $ 28.12 Granted 128,617 38.71 Vested (68,803 ) 38.98 Forfeited (8,241 ) 38.03 Non-vested at December 31, 2018 142,951 $ 38.77 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Gross committed expenditures and committed financings | The gross committed expenditures for upcoming aircraft deliveries and other commitments for the next five years and thereafter are detailed below: Aircraft and aircraft related Other Total Committed (in thousands) 2019 $ 330,089 $ 74,621 $ 404,710 2020 162,270 69,729 231,999 2021 303,184 66,104 369,288 2022 431,210 58,499 489,709 2023 236,639 53,357 289,996 Thereafter 477,788 164,846 642,634 $ 1,941,180 $ 487,156 $ 2,428,336 |
Schedule of firm aircraft and engine orders and purchase rights | As of December 31, 2018 , the Company had the following capital commitments consisting of firm aircraft and engine orders and purchase rights: Aircraft Type Firm Purchase Expected Delivery Dates A321neo aircraft 7 3 Between 2019 and 2020 B787-9 aircraft 10 10 Between 2021 and 2025 Pratt & Whitney spare engines: A321neo spare engines 1 2 In 2019 General Electric GEnx spare engines: B787-9 spare engines 2 2 Between 2021 and 2025 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of non-cash investing and financing activities | Supplemental disclosures of cash flow information and non-cash investing and financing activities were as follows: Year Ended December 31, 2018 2017 2016 (in thousands) Cash payments for interest (net of amounts capitalized) $ 24,343 $ 23,134 $ 29,751 Cash payments for income taxes 16,063 65,812 92,934 Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a capital or financing lease 119,530 72,996 * 6,092 Maintenance hangar project (see Note 9) — — 72,996 * * Amount was reclassified from an other liability as of December 31, 2016 to a financing (lease) liability when completed and placed into service as of December 31, 2017. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2018 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,827,215 $ 10,601 $ (405 ) $ 2,837,411 Operating Expenses: Aircraft fuel, including taxes and delivery — 599,544 — — 599,544 Wages and benefits — 684,719 — — 684,719 Aircraft rent — 125,883 78 — 125,961 Maintenance materials and repairs — 233,503 6,256 — 239,759 Aircraft and passenger servicing — 157,796 — — 157,796 Commissions and other selling (5 ) 129,332 128 (140 ) 129,315 Depreciation and amortization — 134,651 5,215 — 139,866 Other rentals and landing fees — 126,509 394 — 126,903 Purchased services 195 130,665 852 (61 ) 131,651 Contract terminations expense — 35,322 — — 35,322 Other 6,527 142,125 3,759 (204 ) 152,207 Total 6,717 2,500,049 16,682 (405 ) 2,523,043 Operating Income (Loss) (6,717 ) 327,166 (6,081 ) — 314,368 Nonoperating Income (Expense): Undistributed net income of subsidiaries 238,365 — — (238,365 ) — Other nonoperating special items — — — — — Interest expense and amortization of debt discounts and issuance costs (3 ) (32,861 ) (137 ) — (33,001 ) Interest income 185 9,057 — — 9,242 Capitalized interest — 7,887 — — 7,887 Other components of net periodic benefit cost — (825 ) — — (825 ) Gains on fuel derivatives — 5,590 — — 5,590 Other, net (4 ) (2,117 ) 18 — (2,103 ) Total 238,543 (13,269 ) (119 ) (238,365 ) (13,210 ) Income (Loss) Before Income Taxes 231,826 313,897 (6,200 ) (238,365 ) 301,158 Income tax expense (benefit) (1,374 ) 70,634 (1,302 ) — 67,958 Net Income (Loss) $ 233,200 $ 243,263 $ (4,898 ) $ (238,365 ) $ 233,200 Comprehensive Income (Loss) $ 227,834 $ 237,897 $ (4,898 ) $ (232,999 ) $ 227,834 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2017 (a) Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,667,435 $ 8,102 $ (392 ) $ 2,675,145 Operating Expenses: Aircraft fuel, including taxes and delivery — 440,383 — — 440,383 Wages and benefits — 632,997 — — 632,997 Aircraft rent — 137,289 475 — 137,764 Maintenance materials and repairs — 215,473 4,080 — 219,553 Aircraft and passenger servicing — 144,853 — — 144,853 Commissions and other selling 84 126,674 129 (137 ) 126,750 Depreciation and amortization — 109,458 3,819 — 113,277 Other rentals and landing fees — 116,763 — — 116,763 Purchased services 478 109,436 933 (60 ) 110,787 Special items — 23,450 — — 23,450 Other 5,393 137,494 1,838 (195 ) 144,530 Total 5,955 2,194,270 11,274 (392 ) 2,211,107 Operating Income (Loss) (5,955 ) 473,165 (3,172 ) — 464,038 Nonoperating Income (Expense): Undistributed net income of subsidiaries 333,476 — — (333,476 ) — Other nonoperating special items — (45,585 ) — — (45,585 ) Interest expense and amortization of debt discounts and issuance costs — (30,901 ) — — (30,901 ) Interest income — 5,830 302 — 6,132 Capitalized interest — 8,437 — — 8,437 Other components of net periodic benefit cost — (16,713 ) — — (16,713 ) Gains on fuel derivatives — 3,312 — — 3,312 Other, net — 2,101 — — 2,101 Total 333,476 (73,519 ) 302 (333,476 ) (73,217 ) Income (Loss) Before Income Taxes 327,521 399,646 (2,870 ) (333,476 ) 390,821 Income tax expense (benefit) (3,089 ) 63,300 — — 60,211 Net Income (Loss) $ 330,610 $ 336,346 $ (2,870 ) $ (333,476 ) $ 330,610 Comprehensive Income (Loss) $ 358,841 $ 364,575 $ (2,870 ) $ (361,707 ) $ 358,839 (a) Amounts adjusted due to the adoption of ASC No. 606, Revenue from Contracts with Customers . See Note 1 to Consolidated Financial Statements for additional information. Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2016 (a) Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,426,479 $ 6,297 $ (363 ) $ 2,432,413 Operating Expenses: Aircraft fuel, including taxes and delivery — 344,322 — — 344,322 Wages and benefits — 535,264 — — 535,264 Aircraft rent — 124,521 44 — 124,565 Maintenance materials and repairs — 225,707 3,337 — 229,044 Aircraft and passenger servicing — 129,899 — — 129,899 Commissions and other selling 72 122,717 124 (126 ) 122,787 Depreciation and amortization — 104,689 3,439 — 108,128 Other rentals and landing fees — 108,087 — — 108,087 Purchased services 149 95,450 660 (60 ) 96,199 Special items — 109,142 — — 109,142 Other 5,300 121,104 1,262 (177 ) 127,489 Total 5,521 2,020,902 8,866 (363 ) 2,034,926 Operating Income (Loss) (5,521 ) 405,577 (2,569 ) — 397,487 Nonoperating Income (Expense): Undistributed net income of subsidiaries 226,561 — — (226,561 ) — Interest expense and amortization of debt discounts and issuance costs 117 (36,729 ) — — (36,612 ) Interest income 265 3,742 — — 4,007 Capitalized interest — 2,651 — — 2,651 Other components of net periodic benefit cost — (20,270 ) — — (20,270 ) Gains on fuel derivatives — 20,106 — — 20,106 Loss on extinguishment of debt — (10,473 ) — — (10,473 ) Other, net — 4,323 — — 4,323 Total 226,943 (36,650 ) — (226,561 ) (36,268 ) Income (Loss) Before Income Taxes 221,422 368,927 (2,569 ) (226,561 ) 361,219 Income tax expense (benefit) (2,698 ) 139,797 — — 137,099 Net Income (Loss) $ 224,120 $ 229,130 $ (2,569 ) $ (226,561 ) $ 224,120 Comprehensive Income (Loss) $ 219,903 $ 224,914 $ (2,569 ) $ (222,344 ) $ 219,904 (a) Amounts adjusted due to the adoption of ASC No. 606, Revenue from Contracts with Customers . See Note 1 to Consolidated Financial Statements for additional information. |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets December 31, 2018 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 5,154 $ 255,279 $ 8,144 $ — $ 268,577 Restricted cash — — — — — Short-term investments — 232,241 — — 232,241 Accounts receivable, net — 109,499 2,569 (234 ) 111,834 Spare parts and supplies, net — 33,942 — — 33,942 Prepaid expenses and other 165 58,296 112 — 58,573 Total 5,319 689,257 10,825 (234 ) 705,167 Property and equipment at cost — 2,756,551 92,021 — 2,848,572 Less accumulated depreciation and amortization — (648,111 ) (15,350 ) — (663,461 ) Property and equipment, net — 2,108,440 76,671 — 2,185,111 Long-term prepayments and other 62,990 185,161 899 (63,494 ) 185,556 Deferred tax assets, net — — — — — Goodwill and other intangible assets, net — 120,119 693 — 120,812 Intercompany receivable — 456,338 — (456,338 ) — Investment in consolidated subsidiaries 1,325,380 — — (1,325,380 ) — TOTAL ASSETS $ 1,393,689 $ 3,559,315 $ 89,088 $ (1,845,446 ) $ 3,196,646 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 665 $ 139,552 $ 3,163 $ (234 ) $ 143,146 Air traffic liability and current frequent flyer deferred revenue — 598,387 5,349 — 603,736 Other accrued liabilities — 157,842 312 — 158,154 Current maturities of long-term debt, less discount, and capital lease obligations — 101,052 45 — 101,097 Total 665 996,833 8,869 (234 ) 1,006,133 Long-term debt and capital lease obligations — 604,089 4,595 — 608,684 Intercompany payable 445,030 — 11,308 (456,338 ) — Other liabilities and deferred credits: Accumulated pension and other postretirement benefit obligations. — 182,620 — — 182,620 Other liabilities and deferred credits — 118,682 1,144 — 119,826 Noncurrent frequent flyer deferred revenue — 163,619 — — 163,619 Deferred tax liabilities, net — 167,770 — — 167,770 Total — 632,691 1,144 — 633,835 Shareholders' equity 947,994 1,325,702 63,172 (1,388,874 ) 947,994 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,393,689 $ 3,559,315 $ 89,088 $ (1,845,446 ) $ 3,196,646 Condensed Consolidating Balance Sheets December 31, 2017 (a) Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) ASSETS Current assets: Cash and cash equivalents $ 57,405 $ 125,861 $ 7,687 $ — $ 190,953 Restricted cash — 1,000 — — 1,000 Short-term investments — 269,297 — — 269,297 Accounts receivable, net 25 139,008 1,455 (209 ) 140,279 Spare parts and supplies, net — 35,361 — — 35,361 Prepaid expenses and other 171 78,933 82 — 79,186 Total 57,601 649,460 9,224 (209 ) 716,076 Property and equipment at cost — 2,326,249 74,562 — 2,400,811 Less accumulated depreciation and amortization — (546,831 ) (11,717 ) — (558,548 ) Property and equipment, net — 1,779,418 62,845 — 1,842,263 Long-term prepayments and other — 193,449 183 — 193,632 Deferred tax assets, net 31,845 — — (31,845 ) — Goodwill and other intangible assets, net — 120,695 1,155 — 121,850 Intercompany receivable — 392,791 — (392,791 ) — Investment in consolidated subsidiaries 1,137,941 — — (1,137,941 ) — TOTAL ASSETS $ 1,227,387 $ 3,135,813 $ 73,407 $ (1,562,786 ) $ 2,873,821 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 622 $ 138,818 $ 1,574 $ (209 ) $ 140,805 Air traffic liability and current frequent flyer deferred revenue — 584,366 4,727 — 589,093 Other accrued liabilities 32 147,211 350 — 147,593 Current maturities of long-term debt, less discount, and capital lease obligations — 59,470 — — 59,470 Total 654 929,865 6,651 (209 ) 936,961 Long-term debt and capital lease obligations — 511,201 — — 511,201 Intercompany payable 381,608 — 11,183 (392,791 ) — Other liabilities and deferred credits: Accumulated pension and other postretirement benefit obligations. — 220,788 — — 220,788 Other liabilities and deferred credits — 74,736 1,105 75,841 Noncurrent frequent flyer deferred revenue — 149,764 — — 149,764 Deferred tax liabilities, net — 165,986 — (31,845 ) 134,141 Total — 611,274 1,105 (31,845 ) 580,534 Shareholders' equity 845,125 1,083,473 54,468 (1,137,941 ) 845,125 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,227,387 $ 3,135,813 $ 73,407 $ (1,562,786 ) $ 2,873,821 (a) Amounts adjusted due to the adoption of ASC No. 606, Revenue from Contracts with Customers . See Note 1 to Consolidated Financial Statements for additional information. |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2018 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ (2,773 ) $ 509,405 $ 1,876 $ — $ 508,508 Cash Flows From Investing Activities: Net payments to affiliates (14,400 ) (91,515 ) — 105,915 — Additions to property and equipment, including pre-delivery deposits — (470,970 ) (15,807 ) — (486,777 ) Proceeds from purchase assignment and leaseback transactions — 87,000 — — 87,000 Proceeds from disposition of property and equipment — 46,714 — — 46,714 Purchases of investments — (210,836 ) — — (210,836 ) Sales of investments — 247,423 — — 247,423 Net cash used in investing activities (14,400 ) (392,184 ) (15,807 ) 105,915 (316,476 ) Cash Flows From Financing Activities: Long-term borrowings — 86,500 — — 86,500 Repayments of long-term debt and capital lease obligations — (68,233 ) (12 ) — (68,245 ) Dividend payments (24,171 ) — — — (24,171 ) Repurchases of common stock (102,500 ) — — — (102,500 ) Debt issuance costs — (3,350 ) — — (3,350 ) Net payments from affiliates 91,515 — 14,400 (105,915 ) — Other 78 (3,720 ) — (3,642 ) Net cash provided by (used in) financing activities (35,078 ) 11,197 14,388 (105,915 ) (115,408 ) Net increase (decrease) in cash and cash equivalents (52,251 ) 128,418 457 — 76,624 Cash, cash equivalents, and restricted cash—Beginning of Period 57,405 126,861 7,687 — 191,953 Cash, cash equivalents, and restricted cash—End of Period $ 5,154 $ 255,279 $ 8,144 $ — $ 268,577 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2017 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ (4,803 ) $ 334,433 $ 1,505 $ — $ 331,135 Cash Flows From Investing Activities: Net payments to affiliates (2,500 ) (103,254 ) — 105,754 — Additions to property and equipment, including pre-delivery deposits — (336,820 ) (4,695 ) — (341,515 ) Proceeds from purchase assignment and leaseback transactions — 33,000 — — 33,000 Proceeds from disposition of property and equipment — 941 — — 941 Purchases of investments — (231,393 ) — — (231,393 ) Sales of investments — 244,261 — — 244,261 Net cash used in investing activities (2,500 ) (393,265 ) (4,695 ) 105,754 (294,706 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (61,486 ) — — (61,486 ) Dividend payments (6,261 ) — — — (6,261 ) Repurchases of common stock (100,000 ) — — — (100,000 ) Debt issuance costs — (188 ) — — (188 ) Net payments from affiliates 103,254 — 2,500 (105,754 ) — Other 86 (7,618 ) — (7,532 ) Net cash provided by (used in) financing activities (2,921 ) (69,292 ) 2,500 (105,754 ) (175,467 ) Net decrease in cash and cash equivalents (10,224 ) (128,124 ) (690 ) — (139,038 ) Cash, cash equivalents, and restricted cash—Beginning of Period 67,629 254,985 8,377 — 330,991 Cash, cash equivalents, and restricted cash—End of Period $ 57,405 $ 126,861 $ 7,687 $ — $ 191,953 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2016 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ (4,954 ) $ 440,203 $ 1,795 $ — $ 437,044 Cash Flows From Investing Activities: Net payments to affiliates — (28,927 ) — 28,927 — Additions to property and equipment, including pre-delivery deposits — (165,710 ) (13,128 ) — (178,838 ) Proceeds from purchase assignment and leaseback transactions — 31,851 — — 31,851 Net proceeds from disposition of equipment — 15 1 — 16 Purchases of investments — (260,987 ) — — (260,987 ) Sales of investments — 253,855 — — 253,855 Net cash provided by (used in) investing activities — (169,903 ) (13,127 ) 28,927 (154,103 ) Cash Flows From Financing Activities: Repayments of long-term debt and capital lease obligations — (214,025 ) — — (214,025 ) Repurchases and conversion of convertible notes (1,426 ) — — — (1,426 ) Repurchases of common stock (13,763 ) — — — (13,763 ) Debt issuance costs — (1,653 ) — — (1,653 ) Net payments from affiliates 17,894 — 11,033 (28,927 ) — Other 458 (8,043 ) — — (7,585 ) Net cash provided by (used in) financing activities 3,163 (223,721 ) 11,033 (28,927 ) (238,452 ) Net increase (decrease) in cash and cash equivalents (1,791 ) 46,579 (299 ) — 44,489 Cash, cash equivalents, and restricted cash—Beginning of Period 69,420 208,406 8,676 — 286,502 Cash, cash equivalents, and restricted cash—End of Period $ 67,629 $ 254,985 $ 8,377 $ — $ 330,991 |
Supplemental Financial Inform_2
Supplemental Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data | Unaudited Quarterly Financial Information: First Second Third Fourth (in thousands, except per share data) 2018: Operating revenue $ 665,412 $ 715,447 $ 759,087 $ 697,465 Operating income 36,265 92,928 115,826 69,349 Nonoperating income (loss) 830 12,859 931 (27,830 ) Net income 28,542 79,480 93,542 ** 31,636 ** Net Income Per Common Stock Share: Basic $ 0.56 $ 1.57 $ 1.85 $ 0.65 Diluted 0.56 1.56 1.84 0.64 2017: (a) Operating revenue $ 606,209 $ 670,116 $ 716,216 $ 682,604 Operating income 62,030 136,840 169,002 96,166 Nonoperating income (loss) (15,813 ) (13,191 ) (54,113 ) 9,899 * Net income 33,645 76,894 71,622 148,448 ** Net Income Per Common Stock Share: Basic $ 0.63 $ 1.43 $ 1.35 $ 2.86 Diluted 0.62 1.43 1.34 2.84 (a) Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers . See Note 1 to Consolidated Financial Statements for additional information. * During the fourth quarter of 2017, the Company recorded a $4.6 million reduction in its OPEB settlement related to the third quarter of 2017 revising the settlement from $15.0 million to $10.4 million . ** Amounts reflect the impact of the Tax Act enacted in 2017. See Note 10 for further discussion. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Expenses (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)group | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |||
Property, Equipment and Depreciation | |||||
Accumulated amortization for aircraft and other capital leases | $ 90,500,000 | $ 70,900,000 | |||
Net book value | 2,185,111,000 | 1,842,263,000 | [1] | ||
Value of construction in progress | 47,300,000 | 135,300,000 | |||
Aircraft Maintenance and Repair Costs | |||||
Additional cost of repairing engines | $ 0 | ||||
Number of groups in which maintenance deposits bifurcated | group | 2 | ||||
Impairment of Long-Lived Assets and Finite-lived Intangible Assets | |||||
Impairment charge in connection with its owned B767 fleet and related assets | $ 0 | 0 | [2] | $ 49,361,000 | [2] |
Operating Leases | |||||
Rental expense for operating leases | 201,100,000 | 208,000,000 | 193,000,000 | ||
Cost of Goods and Services Sold [Abstract] | |||||
Costs to obtain or fulfill a contract | 16,300,000 | 16,700,000 | |||
Advertising Costs | |||||
Advertising expense | 19,300,000 | 16,600,000 | 18,300,000 | ||
B-767 fleet and related assets | |||||
Impairment of Long-Lived Assets and Finite-lived Intangible Assets | |||||
Impairment charge in connection with its owned B767 fleet and related assets | $ 0 | 0 | 49,361,000 | ||
Boeing 717-200 aircraft and engines | Minimum | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 7 years | ||||
Residual value | 7.00% | ||||
Boeing 717-200 aircraft and engines | Maximum | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 11 years | ||||
Residual value | 34.00% | ||||
Airbus A330-200 aircraft and engines | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 25 years | ||||
Residual value | 10.00% | ||||
Airbus A321neo aircraft and engines | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 25 years | ||||
Residual value | 10.00% | ||||
ATR turboprop aircraft and engines | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 10 years | ||||
Residual value | 15.00% | ||||
Major rotable parts | Minimum | |||||
Property, Equipment and Depreciation | |||||
Residual value | 10.00% | ||||
Major rotable parts | Maximum | |||||
Property, Equipment and Depreciation | |||||
Residual value | 15.00% | ||||
Furniture, fixtures and other equipment | |||||
Property, Equipment and Depreciation | |||||
Residual value | 0.00% | ||||
Furniture, fixtures and other equipment | Minimum | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 3 years | ||||
Furniture, fixtures and other equipment | Maximum | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 7 years | ||||
Capitalized software | |||||
Property, Equipment and Depreciation | |||||
Residual value | 0.00% | ||||
Net book value | $ 27,900,000 | 34,600,000 | |||
Amortization expense | $ 14,600,000 | 12,300,000 | 9,700,000 | ||
Capitalized software | Minimum | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 3 years | ||||
Capitalized software | Maximum | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 7 years | ||||
Power-by-hour Vendors | |||||
Aircraft Maintenance and Repair Costs | |||||
Prepaid expense, noncurrent | $ 95,000,000 | 109,300,000 | |||
Prepaid expense, recovery period | 4 years | ||||
Fulfillment Services [Member] | |||||
Cost of Goods and Services Sold [Abstract] | |||||
Expenses related to costs to obtain or fulfill a contract | $ 96,000,000 | $ 95,500,000 | $ 94,300,000 | ||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue Recognition Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | [1] | Jun. 30, 2017USD ($) | [1] | Mar. 31, 2017USD ($) | [1] | Dec. 31, 2018USD ($)segmentbusiness | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Number of significant lines of business offered by company | business | 1 | ||||||||||||||||
Number of reportable segments | segment | 1 | ||||||||||||||||
Total operating revenue | $ 697,465 | $ 759,087 | $ 715,447 | $ 665,412 | $ 682,604 | [1] | $ 716,216 | $ 670,116 | $ 606,209 | $ 2,837,411 | $ 2,675,145 | [2] | $ 2,432,413 | [2] | |||
Expected timing of satisfaction for future revenue | future revenue that is expected to be realized over the next 12 months | ||||||||||||||||
Passenger revenue, excluding frequent flyer | |||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Total operating revenue | $ 2,454,811 | 2,351,062 | 2,146,258 | ||||||||||||||
Air traffic liability, as it relates to passenger tickets | $ 427,800 | $ 421,600 | 427,800 | 421,600 | |||||||||||||
Air traffic liability, revenue recognized | 421,000 | 363,900 | 328,700 | ||||||||||||||
Frequent flyer revenue, transportation component | |||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Total operating revenue | $ 147,982 | $ 135,765 | $ 125,429 | ||||||||||||||
Weighted average ETV, period | 12 months | ||||||||||||||||
Period of member inactivity before expiration of miles | 18 months | ||||||||||||||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Total operating revenue | $ 697,465 | $ 759,087 | $ 715,447 | $ 665,412 | $ 682,604 | [1] | $ 716,216 | $ 670,116 | $ 606,209 | $ 2,837,411 | $ 2,675,145 | [2] | $ 2,432,413 | [2] | |||
Air traffic liability and current frequent flyer deferred revenue | 603,736 | 589,093 | [3] | 603,736 | 589,093 | [3] | |||||||||||
Noncurrent frequent flyer deferred revenue | 163,619 | 149,764 | [3] | 163,619 | 149,764 | [3] | |||||||||||
Domestic | |||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Total operating revenue | 2,071,861 | 1,976,971 | 1,874,039 | ||||||||||||||
Pacific | |||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Total operating revenue | 765,550 | 698,174 | 558,374 | ||||||||||||||
Passenger revenue, excluding frequent flyer | |||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Total operating revenue | 2,454,811 | 2,351,062 | 2,146,258 | ||||||||||||||
Total frequent flyer liability | 427,800 | 421,600 | 427,800 | 421,600 | |||||||||||||
Frequent flyer revenue, transportation component | |||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Total operating revenue | 147,982 | 135,765 | 125,429 | ||||||||||||||
Passenger Revenue | |||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Total operating revenue | 2,602,793 | 2,486,827 | [2] | 2,271,687 | [2] | ||||||||||||
Other revenue (e.g. cargo and other miscellaneous) | |||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Total operating revenue | 163,140 | 142,172 | 115,379 | ||||||||||||||
Frequent flyer revenue, marketing and brand component | |||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Total operating revenue | 71,478 | 46,146 | 45,347 | ||||||||||||||
Other Revenue | |||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Total operating revenue | 234,618 | 188,318 | [2] | $ 160,726 | [2] | ||||||||||||
Frequent Flyer Revenue | |||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||
Air traffic liability and current frequent flyer deferred revenue | 168,570 | 161,757 | 168,570 | 161,757 | |||||||||||||
Noncurrent frequent flyer deferred revenue | 163,619 | 149,764 | 163,619 | 149,764 | |||||||||||||
Total frequent flyer liability | $ 332,189 | $ 311,521 | $ 332,189 | $ 311,521 | |||||||||||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||
[3] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Recently Adopted and Issued Accounting Pronouncements (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | [1] | Jun. 30, 2017USD ($)$ / shares | [1] | Mar. 31, 2017USD ($)$ / shares | [1] | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2018aircraft | Dec. 31, 2018engine | Dec. 31, 2018USD ($) | Dec. 31, 2018contract | ||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | $ 697,465 | $ 759,087 | $ 715,447 | $ 665,412 | $ 682,604 | [1] | $ 716,216 | $ 670,116 | $ 606,209 | $ 2,837,411 | $ 2,675,145 | [2] | $ 2,432,413 | [2] | |||||||
Operating Expenses | 2,523,043 | 2,211,107 | [2] | 2,034,926 | [2] | ||||||||||||||||
Operating Income | 69,349 | 115,826 | 92,928 | 36,265 | 96,166 | [1] | 169,002 | 136,840 | 62,030 | 314,368 | 464,038 | [2] | 397,487 | [2] | |||||||
Nonoperating Income (Expense) | $ (27,830) | $ 931 | $ 12,859 | $ 830 | $ 9,899 | [1] | $ (54,113) | $ (13,191) | $ (15,813) | (13,210) | (73,217) | [2] | (36,268) | [2] | |||||||
Income tax expense | $ 67,958 | 60,211 | [2] | 137,099 | [2] | ||||||||||||||||
Net Income | $ 330,610 | $ 224,120 | |||||||||||||||||||
Basic (in dollars per share) | $ / shares | $ 0.65 | $ 1.85 | $ 1.57 | $ 0.56 | $ 2.86 | [1] | $ 1.35 | $ 1.43 | $ 0.63 | $ 4.63 | $ 6.23 | [2] | $ 4.19 | [2] | |||||||
Diluted (in dollars per share) | $ / shares | $ 0.64 | $ 1.84 | $ 1.56 | $ 0.56 | $ 2.84 | [1] | $ 1.34 | $ 1.43 | $ 0.62 | $ 4.62 | $ 6.19 | [2] | $ 4.15 | [2] | |||||||
ASSETS | |||||||||||||||||||||
Prepaid expenses and other | $ 79,186 | [3] | $ 79,186 | [3] | $ 58,573 | ||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Air traffic liability and current frequent flyer deferred revenue | 589,093 | [3] | 589,093 | [3] | 603,736 | ||||||||||||||||
Other accrued liabilities | 147,593 | [3] | 147,593 | [3] | 158,154 | ||||||||||||||||
Noncurrent Liabilities: | |||||||||||||||||||||
Other liabilities and deferred credits | 75,841 | [3] | 75,841 | [3] | 119,826 | ||||||||||||||||
Noncurrent frequent flyer deferred revenue | 149,764 | [3] | 149,764 | [3] | 163,619 | ||||||||||||||||
Deferred tax liability | 134,141 | [3] | 134,141 | [3] | 167,770 | ||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||
Accumulated income | 793,134 | [3] | 793,134 | [3] | 912,201 | ||||||||||||||||
Number of aircraft treated as an operating lease | 17 | 17 | |||||||||||||||||||
Number of spare engines treated as operating lease | engine | 5 | ||||||||||||||||||||
Build-to-suit lease liability | 73,000 | ||||||||||||||||||||
Passenger revenue, excluding frequent flyer | |||||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | $ 2,454,811 | 2,351,062 | $ 2,146,258 | ||||||||||||||||||
Frequent flyer revenue, transportation component | |||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||
Revenue recognition period | 23 months | 23 months | |||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | $ 147,982 | 135,765 | 125,429 | ||||||||||||||||||
Passenger | |||||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | 2,602,793 | 2,486,827 | [2] | 2,271,687 | [2] | ||||||||||||||||
Other revenue (e.g. cargo and other miscellaneous) | |||||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | 163,140 | 142,172 | 115,379 | ||||||||||||||||||
Frequent flyer revenue, marketing and brand component | |||||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | 71,478 | 46,146 | 45,347 | ||||||||||||||||||
Other Revenue | |||||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | 234,618 | 188,318 | [2] | 160,726 | [2] | ||||||||||||||||
Air traffic liability | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Air traffic liability and current frequent flyer deferred revenue | 589,093 | 589,093 | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | 2,695,628 | 2,450,580 | |||||||||||||||||||
Operating Expenses | 2,211,856 | 2,034,848 | |||||||||||||||||||
Operating Income | 483,772 | 415,732 | |||||||||||||||||||
Nonoperating Income (Expense) | (73,217) | (36,268) | |||||||||||||||||||
Income tax expense | 46,514 | 144,032 | |||||||||||||||||||
Net Income | $ 364,041 | $ 235,432 | |||||||||||||||||||
Basic (in dollars per share) | $ / shares | $ 6.86 | $ 4.40 | |||||||||||||||||||
Diluted (in dollars per share) | $ / shares | $ 6.82 | $ 4.36 | |||||||||||||||||||
ASSETS | |||||||||||||||||||||
Prepaid expenses and other | 65,196 | $ 65,196 | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Other accrued liabilities | 146,283 | 146,283 | |||||||||||||||||||
Noncurrent Liabilities: | |||||||||||||||||||||
Other liabilities and deferred credits | 95,636 | 95,636 | |||||||||||||||||||
Noncurrent frequent flyer deferred revenue | 0 | 0 | |||||||||||||||||||
Deferred tax liability | 174,344 | 174,344 | |||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||
Accumulated income | 913,951 | 913,951 | |||||||||||||||||||
As Previously Reported | Passenger | |||||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | 2,362,076 | $ 2,145,742 | |||||||||||||||||||
As Previously Reported | Other Revenue | |||||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | 333,552 | 304,838 | |||||||||||||||||||
As Previously Reported | Air traffic liability | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Air traffic liability and current frequent flyer deferred revenue | 545,362 | 545,362 | |||||||||||||||||||
Adjustments | Accounting Standards Update 2014-09 | |||||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | (20,483) | (18,167) | |||||||||||||||||||
Operating Expenses | (749) | 78 | |||||||||||||||||||
Operating Income | (19,734) | (18,245) | |||||||||||||||||||
Nonoperating Income (Expense) | 0 | 0 | |||||||||||||||||||
Income tax expense | 13,697 | (6,933) | |||||||||||||||||||
Net Income | $ (33,431) | $ (11,312) | |||||||||||||||||||
Basic (in dollars per share) | $ / shares | $ (0.63) | $ (0.21) | |||||||||||||||||||
Diluted (in dollars per share) | $ / shares | $ (0.63) | $ (0.21) | |||||||||||||||||||
ASSETS | |||||||||||||||||||||
Prepaid expenses and other | 13,990 | $ 13,990 | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Other accrued liabilities | 1,310 | 1,310 | |||||||||||||||||||
Noncurrent Liabilities: | |||||||||||||||||||||
Other liabilities and deferred credits | (19,795) | (19,795) | |||||||||||||||||||
Noncurrent frequent flyer deferred revenue | 149,764 | 149,764 | |||||||||||||||||||
Deferred tax liability | (40,203) | (40,203) | |||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||
Accumulated income | (120,817) | (120,817) | |||||||||||||||||||
Adjustments | Passenger | Accounting Standards Update 2014-09 | |||||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | 124,751 | $ 125,945 | |||||||||||||||||||
Adjustments | Other Revenue | Accounting Standards Update 2014-09 | |||||||||||||||||||||
Operating Revenue: | |||||||||||||||||||||
Total operating revenue | (145,234) | $ (144,112) | |||||||||||||||||||
Adjustments | Air traffic liability | Accounting Standards Update 2014-09 | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Air traffic liability and current frequent flyer deferred revenue | $ 43,731 | $ 43,731 | |||||||||||||||||||
Minimum | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||
Estimated impact of net present value of future rental payments | 550,000 | ||||||||||||||||||||
Maximum | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||
Estimated impact of net present value of future rental payments | $ 650,000 | ||||||||||||||||||||
Retained Earnings | |||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||
Impact to equity | 12,500 | ||||||||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||
Impact to equity | $ (12,500) | ||||||||||||||||||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||||||
[3] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Amounts reclassified from AOCI | |||||||||||||||||
Revenue | $ (697,465) | $ (759,087) | $ (715,447) | $ (665,412) | $ (682,604) | $ (716,216) | $ (670,116) | $ (606,209) | $ (2,837,411) | $ (2,675,145) | [2] | $ (2,432,413) | [2] | ||||
Nonoperating Income (Expense), Other, net | 2,103 | (2,101) | [2] | (4,323) | [2] | ||||||||||||
Other nonoperating special items | 0 | (45,585) | [2] | 0 | [2] | ||||||||||||
Total before tax | (301,158) | (390,821) | [2] | (361,219) | [2] | ||||||||||||
Income tax expense (benefit) | 67,958 | 60,211 | [2] | 137,099 | [2] | ||||||||||||
Total, net of tax | (330,610) | (224,120) | |||||||||||||||
Net Income | $ (31,636) | $ (93,542) | $ (79,480) | $ (28,542) | $ (148,448) | $ (71,622) | $ (76,894) | $ (33,645) | (233,200) | (330,610) | [2],[3],[4] | (224,120) | [2],[3],[4] | ||||
Amount reclassified from accumulated other comprehensive loss | |||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||
Net Income | 1,302 | 31,607 | 5,544 | ||||||||||||||
Derivatives designated as hedging instruments under ASC 815 | Amount reclassified from accumulated other comprehensive loss | |||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||
Total before tax | (1,380) | (2,391) | 1,140 | ||||||||||||||
Income tax expense (benefit) | 339 | 906 | (438) | ||||||||||||||
Total, net of tax | (1,041) | (1,485) | 702 | ||||||||||||||
Derivatives designated as hedging instruments under ASC 815 | Amount reclassified from accumulated other comprehensive loss | Interest rate derivative losses, net | |||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||
Interest expense | 0 | 0 | 944 | ||||||||||||||
Actuarial loss | Amount reclassified from accumulated other comprehensive loss | |||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||
Nonoperating Income (Expense), Other, net | 2,708 | 8,792 | 7,730 | ||||||||||||||
Prior service cost | Amount reclassified from accumulated other comprehensive loss | |||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||
Nonoperating Income (Expense), Other, net | 225 | 254 | 227 | ||||||||||||||
Partial settlement and curtailment loss | Amount reclassified from accumulated other comprehensive loss | |||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||
Other nonoperating special items | 0 | 10,384 | 0 | ||||||||||||||
Loss on plan termination | Amount reclassified from accumulated other comprehensive loss | |||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||
Other nonoperating special items | 0 | 35,201 | 0 | ||||||||||||||
Amortization of defined benefit pension items | Amount reclassified from accumulated other comprehensive loss | |||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||
Total before tax | 2,933 | 54,631 | 7,957 | ||||||||||||||
Income tax expense (benefit) | (671) | (21,519) | (3,048) | ||||||||||||||
Total, net of tax | 2,262 | 33,112 | 4,909 | ||||||||||||||
Short-term investments | Amount reclassified from accumulated other comprehensive loss | |||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||
Nonoperating Income (Expense), Other, net | 107 | (32) | (108) | ||||||||||||||
Total before tax | 107 | (32) | (108) | ||||||||||||||
Income tax expense (benefit) | (26) | 12 | 41 | ||||||||||||||
Total, net of tax | 81 | (20) | (67) | ||||||||||||||
Passenger | |||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||
Revenue | (2,602,793) | (2,486,827) | [2] | (2,271,687) | [2] | ||||||||||||
Passenger | Derivatives designated as hedging instruments under ASC 815 | Amount reclassified from accumulated other comprehensive loss | Foreign currency derivative (gains) losses, net | |||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||
Revenue | $ (1,380) | $ (2,391) | $ 196 | ||||||||||||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||
[3] | Amounts adjusted for the adoption of ASC No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||
[4] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Roll forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Roll forward of accumulated other comprehensive income (loss) | ||||||
Beginning balance | $ 845,125 | [1] | $ 593,067 | $ 446,062 | ||
Reclassification of stranded tax effects | (12,510) | |||||
Other comprehensive income (loss) before reclassifications, net of tax | (6,668) | (3,378) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1,302 | 31,607 | ||||
Total Other Comprehensive Income (Loss) | (5,366) | 28,229 | [2] | (4,216) | [2] | |
Ending balance | 947,994 | 845,125 | [1] | 593,067 | ||
Derivatives | ||||||
Roll forward of accumulated other comprehensive income (loss) | ||||||
Beginning balance | 1,249 | |||||
Reclassification of stranded tax effects | 269 | |||||
Other comprehensive income (loss) before reclassifications, net of tax | 2,840 | |||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (1,041) | |||||
Total Other Comprehensive Income (Loss) | 1,799 | |||||
Ending balance | 3,317 | 1,249 | ||||
Defined Benefit Pension Items | ||||||
Roll forward of accumulated other comprehensive income (loss) | ||||||
Beginning balance | (75,953) | (110,202) | ||||
Reclassification of stranded tax effects | (12,659) | |||||
Other comprehensive income (loss) before reclassifications, net of tax | (9,505) | 1,137 | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 2,262 | 33,112 | ||||
Total Other Comprehensive Income (Loss) | (7,243) | 34,249 | ||||
Ending balance | (95,855) | (75,953) | (110,202) | |||
Short-term investments | ||||||
Roll forward of accumulated other comprehensive income (loss) | ||||||
Beginning balance | (560) | (362) | ||||
Reclassification of stranded tax effects | (120) | |||||
Other comprehensive income (loss) before reclassifications, net of tax | (3) | (178) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 81 | (20) | ||||
Total Other Comprehensive Income (Loss) | 78 | (198) | ||||
Ending balance | (602) | (560) | (362) | |||
Total | ||||||
Roll forward of accumulated other comprehensive income (loss) | ||||||
Beginning balance | (75,264) | (103,493) | (99,277) | |||
Total Other Comprehensive Income (Loss) | (5,366) | 28,229 | (4,216) | |||
Ending balance | (93,140) | (75,264) | (103,493) | |||
Foreign Currency Derivatives | Derivatives | ||||||
Roll forward of accumulated other comprehensive income (loss) | ||||||
Beginning balance | $ 1,249 | 7,071 | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (4,337) | |||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (1,485) | |||||
Total Other Comprehensive Income (Loss) | (5,822) | |||||
Ending balance | $ 1,249 | $ 7,071 | ||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | |||||
[2] | Amounts adjusted for the adoption of ASC No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Earnings Per Share - Potential
Earnings Per Share - Potential Dilution (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Numerator: | |||||||||||||||||
Net Income | $ 31,636 | $ 93,542 | $ 79,480 | $ 28,542 | $ 148,448 | $ 71,622 | $ 76,894 | $ 33,645 | $ 233,200 | $ 330,610 | [2],[3],[4] | $ 224,120 | [2],[3],[4] | ||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding—Basic (in shares) | 50,338 | 53,074 | [3] | 53,502 | [3] | ||||||||||||
Assumed exercise of stock options and awards (in shares) | 150 | 339 | 450 | ||||||||||||||
Assumed exercise of convertible note premium (in shares) | 0 | 0 | 6 | ||||||||||||||
Weighted average common shares outstanding—Diluted (in shares) | 50,488 | 53,413 | [3] | 53,958 | [3] | ||||||||||||
Net Income Per Common Stock Share: | |||||||||||||||||
Basic (in dollars per share) | $ 0.65 | $ 1.85 | $ 1.57 | $ 0.56 | $ 2.86 | $ 1.35 | $ 1.43 | $ 0.63 | $ 4.63 | $ 6.23 | [3] | $ 4.19 | [3] | ||||
Diluted (in dollars per share) | $ 0.64 | $ 1.84 | $ 1.56 | $ 0.56 | $ 2.84 | $ 1.34 | $ 1.43 | $ 0.62 | $ 4.62 | $ 6.19 | [3] | $ 4.15 | [3] | ||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||
[2] | Amounts adjusted for the adoption of ASC No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||
[3] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||
[4] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Short-Term Investments (Details
Short-Term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Investments | ||
Amortized Cost | $ 232,997 | $ 270,154 |
Gross Unrealized Gains | 54 | 10 |
Gross Unrealized Losses | (810) | (867) |
Fair Value | ||
Under 1 Year | 142,399 | |
1 to 5 Years | 89,842 | |
Total | 232,241 | 269,297 |
Corporate debt | ||
Short-term Investments | ||
Amortized Cost | 142,748 | 165,610 |
Gross Unrealized Gains | 49 | 8 |
Gross Unrealized Losses | (695) | (535) |
Fair Value | ||
Under 1 Year | 69,957 | |
1 to 5 Years | 72,145 | |
Total | 142,102 | 165,083 |
U.S. government and agency debt | ||
Short-term Investments | ||
Amortized Cost | 37,163 | 59,054 |
Gross Unrealized Gains | 3 | 1 |
Gross Unrealized Losses | (59) | (215) |
Fair Value | ||
Under 1 Year | 28,164 | |
1 to 5 Years | 8,943 | |
Total | 37,107 | 58,840 |
Municipal bonds | ||
Short-term Investments | ||
Amortized Cost | 9,903 | 21,517 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (32) | (104) |
Fair Value | ||
Under 1 Year | 8,288 | |
1 to 5 Years | 1,583 | |
Total | 9,871 | 21,413 |
Other fixed income securities | ||
Short-term Investments | ||
Amortized Cost | 43,183 | 23,973 |
Gross Unrealized Gains | 2 | 1 |
Gross Unrealized Losses | (24) | (13) |
Fair Value | ||
Under 1 Year | 35,990 | |
1 to 5 Years | 7,171 | |
Total | $ 43,161 | $ 23,961 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets measured at fair value | |||
Short-term investments | $ 232,241 | $ 269,297 | [1] |
Recurring basis | |||
Assets measured at fair value | |||
Cash equivalents | 121,154 | 62,310 | |
Restricted cash | 0 | 1,000 | |
Short-term investments | 232,241 | 269,297 | |
Total assets measured at fair value | 359,546 | 357,515 | |
Liabilities measured at fair value | |||
Total liabilities measured at fair value | 1,347 | 1,713 | |
Recurring basis | Crude oil call options | |||
Assets measured at fair value | |||
Fuel derivative contracts | 1,572 | 20,272 | |
Recurring basis | Jet fuel swaps | |||
Assets measured at fair value | |||
Fuel derivative contracts | 336 | ||
Recurring basis | Foreign Currency Derivatives | |||
Assets measured at fair value | |||
Fuel derivative contracts | 4,579 | 4,300 | |
Liabilities measured at fair value | |||
Derivative contracts | 1,347 | 1,713 | |
Recurring basis | Level 1 | |||
Assets measured at fair value | |||
Cash equivalents | 42,175 | 27,807 | |
Restricted cash | 0 | 1,000 | |
Short-term investments | 0 | 0 | |
Total assets measured at fair value | 42,175 | 28,807 | |
Liabilities measured at fair value | |||
Total liabilities measured at fair value | 0 | 0 | |
Recurring basis | Level 1 | Crude oil call options | |||
Assets measured at fair value | |||
Fuel derivative contracts | 0 | 0 | |
Recurring basis | Level 1 | Jet fuel swaps | |||
Assets measured at fair value | |||
Fuel derivative contracts | 0 | ||
Recurring basis | Level 1 | Foreign Currency Derivatives | |||
Assets measured at fair value | |||
Fuel derivative contracts | 0 | 0 | |
Liabilities measured at fair value | |||
Derivative contracts | 0 | 0 | |
Recurring basis | Level 2 | |||
Assets measured at fair value | |||
Cash equivalents | 78,979 | 34,503 | |
Restricted cash | 0 | 0 | |
Short-term investments | 232,241 | 269,297 | |
Total assets measured at fair value | 317,371 | 328,708 | |
Liabilities measured at fair value | |||
Total liabilities measured at fair value | 1,347 | 1,713 | |
Recurring basis | Level 2 | Crude oil call options | |||
Assets measured at fair value | |||
Fuel derivative contracts | 1,572 | 20,272 | |
Recurring basis | Level 2 | Jet fuel swaps | |||
Assets measured at fair value | |||
Fuel derivative contracts | 336 | ||
Recurring basis | Level 2 | Foreign Currency Derivatives | |||
Assets measured at fair value | |||
Fuel derivative contracts | 4,579 | 4,300 | |
Liabilities measured at fair value | |||
Derivative contracts | 1,347 | 1,713 | |
Recurring basis | Level 3 | |||
Assets measured at fair value | |||
Cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Short-term investments | 0 | 0 | |
Total assets measured at fair value | 0 | 0 | |
Liabilities measured at fair value | |||
Total liabilities measured at fair value | 0 | 0 | |
Recurring basis | Level 3 | Crude oil call options | |||
Assets measured at fair value | |||
Fuel derivative contracts | 0 | 0 | |
Recurring basis | Level 3 | Jet fuel swaps | |||
Assets measured at fair value | |||
Fuel derivative contracts | 0 | ||
Recurring basis | Level 3 | Foreign Currency Derivatives | |||
Assets measured at fair value | |||
Fuel derivative contracts | 0 | 0 | |
Liabilities measured at fair value | |||
Derivative contracts | $ 0 | $ 0 | |
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Measured at Fair Value (Excluding Obligations Under Capital Leases and Financing Obligations) (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Measurements | ||
Carrying Amount | $ 467,760 | $ 433,072 |
Fair Value | 461,805 | 444,099 |
Level 1 | ||
Fair Value Measurements | ||
Fair Value | 0 | 0 |
Level 2 | ||
Fair Value Measurements | ||
Fair Value | 0 | 0 |
Level 3 | ||
Fair Value Measurements | ||
Fair Value | $ 461,805 | $ 444,099 |
Financial Derivative Instrume_3
Financial Derivative Instruments - Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Derivative instrument | |||||
Gains on fuel derivatives recorded as Nonoperating income (expense) | $ 5,590 | $ 3,312 | [1] | $ 20,106 | [1] |
Derivatives not designated as hedges | Fuel derivative contracts | |||||
Derivative instrument | |||||
Gains (losses) realized at settlement | 25,563 | (534) | (27,572) | ||
Prior period unrealized amounts | (11,792) | (7,946) | 39,731 | ||
Unrealized gains (losses) that will settle in future periods | (8,181) | 11,792 | 7,947 | ||
Gains on fuel derivatives recorded as Nonoperating income (expense) | 5,590 | $ 3,312 | $ 20,106 | ||
Derivatives designated as hedges | Foreign Currency Derivatives | |||||
Derivative instrument | |||||
Expected reclassification of net gain | $ 3,900 | ||||
Reclassification estimated time period | 12 months | ||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Financial Derivative Instrume_4
Financial Derivative Instruments - Derivative Positions (Details) ¥ in Thousands, gal in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018USD ($)gal | Dec. 31, 2017USD ($)gal | Dec. 31, 2018JPY (¥) | Dec. 31, 2018AUD ($) | Dec. 31, 2017JPY (¥) | Dec. 31, 2017AUD ($) | |
Fair Value of Derivatives | ||||||
Net derivative position | $ 4,800 | $ (23,200) | ||||
Derivatives designated as hedges | Foreign Currency Derivatives | Prepaid expenses and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | ¥ 15,933,550 | $ 48,709 | ¥ 16,732,375 | $ 47,805 | ||
Gross fair value of assets, current | 3,922 | 3,737 | ||||
Gross fair value of (liabilities), current | (915) | (1,441) | ||||
Net derivative position | 3,007 | 2,296 | ||||
Derivatives designated as hedges | Foreign Currency Derivatives | Long-term prepayments and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | 4,491,350 | 9,419 | 4,666,700 | 9,180 | ||
Gross fair value of assets, noncurrent | 633 | 546 | ||||
Gross fair value of (liabilities), noncurrent | (292) | (195) | ||||
Net derivative position | 341 | 351 | ||||
Derivatives not designated as hedges | Foreign Currency Derivatives | Prepaid expenses and other | ||||||
Fair Value of Derivatives | ||||||
Gross fair value of assets, current | 17 | |||||
Gross fair value of (liabilities), current | (77) | |||||
Net derivative position | $ (60) | |||||
Derivatives not designated as hedges | Foreign Currency Derivatives | Other accrued liabilities | ||||||
Fair Value of Derivatives | ||||||
Notional Amount | ¥ 832,900 | $ 2,785 | ¥ 866,150 | $ 3,148 | ||
Gross fair value of assets, current | 24 | |||||
Gross fair value of (liabilities), current | (140) | |||||
Net derivative position | $ (116) | |||||
Derivatives not designated as hedges | Fuel derivative contracts | Prepaid expenses and other | ||||||
Fair Value of Derivatives | ||||||
Notional Amount (volume) | gal | 95,256 | 94,332 | ||||
Gross fair value of assets, current | $ 1,572 | $ 20,608 | ||||
Gross fair value of (liabilities), current | 0 | 0 | ||||
Net derivative position | $ 1,572 | $ 20,608 |
Financial Derivative Instrume_5
Financial Derivative Instruments - Impact of Cash Flow Hedges; Risk and Collateral (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign Currency Derivatives | |||
Gains (losses) for designated hedge contracts | |||
(Gain) Loss recognized in AOCI on derivatives (effective portion) | $ (3,766) | $ 6,983 | $ (3,350) |
(Gain) Loss reclassified from AOCI into income (effective portion) | (1,380) | (2,391) | 196 |
Gain recognized in nonoperating (income) expense (ineffective portion) | 0 | 0 | 0 |
Interest Rate Derivative | |||
Gains (losses) for designated hedge contracts | |||
(Gain) Loss recognized in AOCI on derivatives (effective portion) | 0 | 0 | 923 |
(Gain) Loss reclassified from AOCI into income (effective portion) | 0 | 0 | 944 |
Gain recognized in nonoperating (income) expense (ineffective portion) | $ 0 | $ 0 | $ 0 |
Financial Derivative Instrume_6
Financial Derivative Instruments - Risk and Collateral (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net derivative position | $ 4,800,000 | $ (23,200,000) |
Collateral posted with counterparties | $ 0 | $ 0 |
Intangible Assets - Net Book Va
Intangible Assets - Net Book Value and Useful Lives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [2] | ||
Intangible Assets | |||||
Trade name | $ 13,500 | $ 13,500 | |||
Total intangible assets | 23,628 | 23,628 | |||
Accumulated amortization | (9,479) | (8,441) | |||
Total intangible assets | 14,149 | 15,187 | [1] | ||
Amortization of intangible assets | 1,038 | 1,224 | [2] | $ 2,322 | |
Estimated future amortization expense | 600 | ||||
Favorable aircraft maintenance contracts | |||||
Intangible Assets | |||||
Gross carrying value | 8,740 | 8,740 | |||
Accumulated amortization | (8,284) | (7,708) | |||
Net book value | $ 456 | $ 1,032 | |||
Favorable aircraft maintenance contracts | Weighted average | |||||
Intangible Assets | |||||
Approximate useful life | 14 years | 14 years | |||
Other | |||||
Intangible Assets | |||||
Gross carrying value | $ 1,388 | $ 1,388 | |||
Accumulated amortization | (1,195) | (733) | |||
Net book value | $ 193 | $ 655 | |||
Approximate useful life | 3 years | 3 years | |||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Total debt, capital, and financing lease obligations | $ 720,277 | $ 582,112 | |
Less: Unamortized debt discount and debt issuance costs | (10,496) | (11,441) | |
Less: Current maturities | (101,097) | (59,470) | [1] |
Long-term debt and capital lease obligations | 608,684 | 511,201 | [1] |
Enhanced Equipment Trust Certificates (EETC) | A330-200 aircraft | Class A Pass-Through Trust | |||
Debt Instrument [Line Items] | |||
Total debt, capital, and financing lease obligations | $ 245,845 | 263,864 | |
Stated interest rate | 3.90% | ||
Enhanced Equipment Trust Certificates (EETC) | A330-200 aircraft | Class B Pass-Through trust | |||
Debt Instrument [Line Items] | |||
Total debt, capital, and financing lease obligations | $ 88,608 | 94,580 | |
Stated interest rate | 4.95% | ||
Aircraft Facility Agreement | Boeing 717-200 | |||
Debt Instrument [Line Items] | |||
Total debt, capital, and financing lease obligations | $ 50,376 | 74,629 | |
Stated interest rate | 8.00% | ||
Japanese Yen Denominated Debt, Due May 2030 | |||
Debt Instrument [Line Items] | |||
Total debt, capital, and financing lease obligations | $ 42,116 | 0 | |
Stated interest rate | 1.05% | ||
Japanese Yen Denominated Debt, Due June 2030 | |||
Debt Instrument [Line Items] | |||
Total debt, capital, and financing lease obligations | $ 40,815 | 0 | |
Stated interest rate | 1.01% | ||
Capital Lease Obligations | |||
Debt Instrument [Line Items] | |||
Total debt, capital, and financing lease obligations | $ 252,517 | $ 149,039 | |
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Debt - Enhanced Equipment Trust
Debt - Enhanced Equipment Trust Certificates (EETC) (Details) | 12 Months Ended |
Dec. 31, 2013airbus_aircraftpass_through_trust | |
Debt Instrument [Line Items] | |
Number of pass-through trusts | pass_through_trust | 2 |
Enhanced Equipment Trust Certificates (EETC) | |
Debt Instrument [Line Items] | |
Number of aircraft financed through notes issued | airbus_aircraft | 6 |
Debt - Foreign Denominated Fina
Debt - Foreign Denominated Financing (Details) $ in Thousands, ¥ in Billions | 12 Months Ended | |||||
Dec. 31, 2018USD ($)agreement | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016USD ($) | [1] | Dec. 31, 2018JPY (¥) | |
Debt Instrument [Line Items] | ||||||
Foreign currency unrealized gains | $ | $ 380 | $ 0 | $ 0 | |||
Secured Debt | Japanese Yen Denominated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Number of debt agreements | agreement | 2 | |||||
Principal amount issued | $ 86,500 | ¥ 9.6 | ||||
Debt, duration of loan | 12 years | |||||
Minimum | Secured Debt | Japanese Yen Denominated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt, fixed installment coupon rate | 1.01% | 1.01% | ||||
Maximum | Secured Debt | Japanese Yen Denominated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt, fixed installment coupon rate | 1.05% | 1.05% | ||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Debt - Debt Extinguishment (Det
Debt - Debt Extinguishment (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Extinguishment of Debt [Line Items] | |||||
Extinguished amount of existing debt | $ 0 | $ 0 | |||
Loss on extinguishment of debt | $ 0 | $ 0 | [1],[2] | $ 10,473,000 | [1],[2] |
Secured Debt | |||||
Extinguishment of Debt [Line Items] | |||||
Extinguished amount of existing debt | 140,500,000 | ||||
Loss on extinguishment of debt | $ 10,000,000 | ||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | ||
Outstanding borrowing | $ 0 | |
Citigroup Global Markets, Inc. | ||
Line of Credit Facility [Line Items] | ||
Maximum amount of revolving credit | $ 235,000,000 | $ 225,000,000 |
Renewal option, period | 12 months | |
Accumulated amortization, due to debt agreement | $ 600,000 | |
Debt issuance costs | $ 2,000,000 | |
London Interbank Offered Rate (LIBOR) | Citigroup Global Markets, Inc. | ||
Line of Credit Facility [Line Items] | ||
Stated interest rate | 2.00% | |
Certain Market Rates | Citigroup Global Markets, Inc. | ||
Line of Credit Facility [Line Items] | ||
Stated interest rate | 1.00% |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 81,075 |
2,020 | 29,597 |
2,021 | 56,557 |
2,022 | 63,665 |
2,023 | 28,466 |
Thereafter | 208,400 |
Total long-term debt | $ 467,760 |
Leases (Details)
Leases (Details) - 12 months ended Dec. 31, 2018 $ in Thousands | aircraft | USD ($) | contract |
Leases [Abstract] | |||
Number of lease contracts for aircraft | contract | 22 | ||
Number of aircraft | aircraft | 66 | ||
Number of aircraft lease contracts accounted for as capital leases | contract | 5 | ||
Number of aircraft lease contracts accounted for as operating leases | 17 | 17 | |
Aircraft | |||
Future minimum rental payments under capital and financing leases | |||
2,019 | $ 24,850 | ||
2,020 | 24,850 | ||
2,021 | 24,850 | ||
2,022 | 24,705 | ||
2,023 | 21,370 | ||
Thereafter | 75,891 | ||
Total minimum capital lease payments | 196,516 | ||
Less amounts representing interest | (35,502) | ||
Present value of minimum capital & financing lease payments | 161,014 | ||
Future minimum rental payments under operating leases | |||
2,019 | 106,448 | ||
2,020 | 90,417 | ||
2,021 | 74,315 | ||
2,022 | 68,208 | ||
2,023 | 59,925 | ||
Thereafter | 159,271 | ||
Total minimum operating lease payments | 558,584 | ||
Other Lease | |||
Future minimum rental payments under capital and financing leases | |||
2,019 | 7,909 | ||
2,020 | 5,908 | ||
2,021 | 4,630 | ||
2,022 | 4,870 | ||
2,023 | 8,207 | ||
Thereafter | 111,651 | ||
Total minimum capital lease payments | 143,175 | ||
Less amounts representing interest | (51,672) | ||
Present value of minimum capital & financing lease payments | 91,503 | ||
Future minimum rental payments under operating leases | |||
2,019 | 5,730 | ||
2,020 | 5,709 | ||
2,021 | 5,846 | ||
2,022 | 5,930 | ||
2,023 | 5,975 | ||
Thereafter | 89,699 | ||
Total minimum operating lease payments | $ 118,889 | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Remaining lease terms | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Remaining lease terms | 10 years |
Leases - Maintenance Hangar (De
Leases - Maintenance Hangar (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | |||
Nov. 30, 2016 | Jan. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Capital Leased Assets [Line Items] | |||||
Recognized lease asset | $ 2,848,572 | $ 2,400,811 | [1] | ||
Cargo and maintenance hangar | |||||
Capital Leased Assets [Line Items] | |||||
Lease term | 35 years | ||||
Assets | |||||
Capital Leased Assets [Line Items] | |||||
Property, plant and equipment, additions | $ 33,300 | ||||
Asset under construction | |||||
Capital Leased Assets [Line Items] | |||||
Property, plant and equipment, additions | $ 73,000 | ||||
Recognized lease asset | $ 106,300 | ||||
Aircraft | |||||
Capital Leased Assets [Line Items] | |||||
Lease liability | $ 73,000 | ||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
Tax benefit from Tax Cuts and Jobs Act | $ 83,000,000 | |
Additional tax benefit from Tax Cuts and Jobs Act | $ 9,300,000 | |
Tax benefit of the net operating loss carryforwards | 2,547,000 | 2,547,000 |
Interest and penalties related to tax positions | 0 | |
State income tax | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 73,300,000 | $ 73,300,000 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Current | |||||
Federal | $ 23,438 | $ 49,835 | $ 94,459 | ||
State | 9,087 | 11,471 | 13,201 | ||
Current income tax expense (benefit) | 32,525 | 61,306 | 107,660 | ||
Deferred | |||||
Federal | 29,782 | (7,017) | 25,948 | ||
State | 5,651 | 5,922 | 3,491 | ||
Deferred income tax expense (benefit) | 35,433 | (1,095) | [1] | 29,439 | [1] |
Income tax expense | $ 67,958 | $ 60,211 | [2] | $ 137,099 | [2] |
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income Tax Disclosure [Abstract] | |||||
Income tax expense computed at the statutory federal rate | $ 63,243 | $ 136,788 | $ 126,427 | ||
Increase (decrease) resulting from: | |||||
State income taxes, net of federal tax effect | 11,643 | 11,095 | 10,714 | ||
Nondeductible meals | 797 | 1,146 | 1,100 | ||
Tax Cuts and Jobs Act impact | (9,333) | (82,978) | 0 | ||
Excess tax benefits from stock issuance | (188) | (5,288) | 0 | ||
Other | 1,796 | (552) | (1,142) | ||
Income tax expense | $ 67,958 | $ 60,211 | [1] | $ 137,099 | [1] |
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Accumulated pension and other postretirement benefits | $ 45,663 | $ 54,784 |
Leases | 3,515 | 4,490 |
Air traffic liability and frequent flyer liability | 70,206 | 53,102 |
Partnership deferred revenue | 9,697 | 2,455 |
State net operating loss carryforwards | 2,547 | 2,547 |
Accrued compensation | 15,843 | 7,627 |
Other accrued assets | 11,758 | 11,661 |
Fuel derivative contracts | 2,390 | 2,156 |
Other assets | 14,031 | 10,187 |
Total gross deferred tax assets | 175,650 | 149,009 |
Less: Valuation allowance | (2,547) | (2,547) |
Net deferred tax assets | 173,103 | 146,462 |
Deferred tax liabilities: | ||
Intangible assets | (3,297) | (3,432) |
Property and equipment, principally accelerated depreciation | (324,614) | (265,293) |
Other liabilities | (12,962) | (11,878) |
Total deferred tax liabilities | (340,873) | (280,603) |
Net deferred tax liability | $ (167,770) | $ (134,141) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Related to Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 4,081 | $ 3,329 | $ 0 |
Increases related to prior year tax positions | 336 | 253 | 2,830 |
Increases related to current year tax positions | 669 | 499 | 499 |
Ending balance | $ 5,086 | $ 4,081 | $ 3,329 |
Contract Termination Expense _3
Contract Termination Expense and Special Items (Details) $ / shares in Units, $ in Thousands | Apr. 01, 2017 | Feb. 28, 2018aircraft | Jan. 31, 2018USD ($)aircraftengine | Aug. 31, 2017USD ($) | Mar. 31, 2017 | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($)aircraft | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)$ / shares | Apr. 30, 2017aircraft | ||
Operating | ||||||||||||||
Contract terminations expense | $ 35,322 | $ 0 | [1] | $ 0 | [1] | |||||||||
Operating special items: | ||||||||||||||
Loss on sale of aircraft | 0 | 4,771 | 0 | |||||||||||
Collective bargaining agreement | 0 | 18,679 | 38,781 | |||||||||||
Impairment charge in connection with its owned B767 fleet and related assets | 0 | 0 | [2] | 49,361 | [2] | |||||||||
Total Contract terminations expense and Operating special items | 35,322 | 23,450 | 109,142 | |||||||||||
Other nonoperating special items: | ||||||||||||||
Partial settlement and curtailment loss | 0 | 10,384 | 0 | |||||||||||
Loss on plan termination | 0 | 35,201 | 0 | |||||||||||
Total Other nonoperating special items | $ 0 | 45,585 | [1] | 0 | [1] | |||||||||
Terminated contracts | contract | 2 | |||||||||||||
Proposed payment for a collective bargaining agreement | $ 34,000 | 34,000 | ||||||||||||
Profit sharing bonus payment | 4,800 | |||||||||||||
Air Line Pilots Association | ||||||||||||||
Operating special items: | ||||||||||||||
Collective bargaining agreement | 18,700 | |||||||||||||
Other nonoperating special items: | ||||||||||||||
Contract extension which includes various benefits | 63 months | |||||||||||||
A-330-800-Neo | ||||||||||||||
Other nonoperating special items: | ||||||||||||||
Number of aircrafts terminated | aircraft | 6 | |||||||||||||
Number of aircraft purchase rights | aircraft | 6 | |||||||||||||
Boeing 767-300 | ||||||||||||||
Other nonoperating special items: | ||||||||||||||
Sale leaseback agreement, contract exit costs | $ 67,100 | |||||||||||||
A330 | ||||||||||||||
Other nonoperating special items: | ||||||||||||||
Firm orders | aircraft | 1 | |||||||||||||
A321 | ||||||||||||||
Other nonoperating special items: | ||||||||||||||
Firm orders | aircraft | 2 | |||||||||||||
Engine maintenance contract | ||||||||||||||
Operating special items: | ||||||||||||||
Termination of B767 engine maintenance contract | $ 0 | 0 | 21,000 | |||||||||||
B-767 fleet and related assets | ||||||||||||||
Operating special items: | ||||||||||||||
Impairment charge in connection with its owned B767 fleet and related assets | $ 0 | 0 | $ 49,361 | |||||||||||
Other nonoperating special items: | ||||||||||||||
Impairment charge per diluted share (in dollars per share) | $ / shares | $ 0.92 | |||||||||||||
Salaried And IAM Merged Pension Plan | ||||||||||||||
Other nonoperating special items: | ||||||||||||||
Loss on plan termination | $ 35,200 | |||||||||||||
Health Retirement Account And Post-65 Medical Plan | ||||||||||||||
Other nonoperating special items: | ||||||||||||||
Partial settlement and curtailment loss | 10,400 | $ 15,000 | $ 10,400 | |||||||||||
Health Retirement Account And Post-65 Medical Plan | Air Line Pilots Association | ||||||||||||||
Other nonoperating special items: | ||||||||||||||
Partial settlement and curtailment loss | $ 10,400 | |||||||||||||
Contract extension which includes various benefits | 63 months | |||||||||||||
Aircraft | Boeing 767-300 | ||||||||||||||
Operating special items: | ||||||||||||||
Loss on sale of aircraft | $ 4,800 | |||||||||||||
Other nonoperating special items: | ||||||||||||||
Sale leaseback transaction, number of aircraft | aircraft | 3 | 3 | ||||||||||||
Sale leaseback agreement, number of engines | engine | 2 | |||||||||||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | |||||||||||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Plans Narrative (Details) $ in Thousands | Apr. 01, 2017 | Jan. 01, 2008 | Aug. 31, 2017USD ($) | Mar. 31, 2017 | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)plan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Frozen benefit accruals for pilots as of July 1, 2005, maximum age | 50 years | ||||||||
Minimum age of pilots who were participants of plan as of July 1, 2005 for whom further benefit will accrue | 50 years | ||||||||
Number of unfunded defined benefit postretirement medical and life insurance plans sponsored by company | plan | 4 | ||||||||
Settlement and curtailment loss | $ 0 | $ 35,201 | $ 0 | ||||||
Partial settlement and curtailment loss | $ 0 | 10,384 | $ 0 | ||||||
Minimum | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Contribution to fund plan | $ 18,500 | ||||||||
Salaried And IAM Merged Pension Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Settlement and curtailment loss | $ 35,200 | ||||||||
Health Retirement Account And Post-65 Medical Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Partial settlement and curtailment loss | 10,400 | $ 15,000 | $ 10,400 | ||||||
Benefit obligations | 73,400 | ||||||||
Air Line Pilots Association | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Number of months in contract amendment | 63 months | ||||||||
Air Line Pilots Association | Health Retirement Account And Post-65 Medical Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Number of months in contract amendment | 63 months | ||||||||
Defined benefit plan, benefit obligation, (increase) decrease for cash payment settlement | $ 101,900 | ||||||||
Discount rate updated in connection with settlement of liability | 3.86% | ||||||||
Partial settlement and curtailment loss | $ 10,400 |
Employee Benefit Plans - Defi_2
Employee Benefit Plans - Defined Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Amounts recognized in the statement of financial position consist of: | ||||||
Noncurrent benefit liability | $ (220,788) | [1] | $ (182,620) | $ (220,788) | [1] | |
Amounts recognized in accumulated other comprehensive loss | ||||||
Accumulated pension benefit obligation | 424,200 | 397,500 | 424,200 | |||
Pension | ||||||
Change in benefit obligations | ||||||
Benefit obligations, beginning of year | (426,066) | (462,762) | ||||
Service cost | (352) | (480) | $ (681) | |||
Interest cost | (15,599) | (18,042) | (19,969) | |||
Actuarial gains (losses) | 22,677 | (42,775) | ||||
Benefits paid | 21,253 | 23,999 | ||||
Plan amendments | 0 | 0 | ||||
Settlements | 0 | 73,994 | ||||
Benefit obligation at end of year | (426,066) | (398,087) | (426,066) | (462,762) | ||
Change in plan assets | ||||||
Fair value of assets, beginning of year | 296,386 | 302,982 | ||||
Actual return on plan assets | (17,339) | 42,652 | ||||
Employer contribution | 50,230 | 48,745 | ||||
Benefits paid | (21,253) | (23,999) | ||||
Settlements | 0 | (73,994) | ||||
Fair value of assets at end of year | 296,386 | 308,024 | 296,386 | 302,982 | ||
Unfunded status at December 31 | (129,680) | (90,063) | (129,680) | |||
Amounts recognized in the statement of financial position consist of: | ||||||
Current benefit liability | (214) | (386) | (214) | |||
Noncurrent benefit liability | (129,466) | (89,677) | (129,466) | |||
Total recognized in the statement of financial position | (129,680) | (90,063) | (129,680) | |||
Amounts recognized in accumulated other comprehensive loss | ||||||
Unamortized actuarial loss (gain) | 112,417 | 124,560 | 112,417 | |||
Prior service cost (credit) | 0 | 0 | 0 | |||
Total reflected in other comprehensive loss | 112,417 | 124,560 | 112,417 | |||
Other | ||||||
Change in benefit obligations | ||||||
Benefit obligations, beginning of year | (120,417) | (224,316) | ||||
Service cost | (8,119) | (12,403) | (13,618) | |||
Interest cost | (4,708) | (8,022) | (10,227) | |||
Actuarial gains (losses) | 6,007 | 17,484 | ||||
Benefits paid | 4,639 | 4,587 | ||||
Less: federal subsidy on benefits paid | (50) | (57) | ||||
Plan amendments | 381 | 0 | ||||
Settlements | 0 | 101,929 | ||||
Benefit obligation at end of year | (120,417) | (122,648) | (120,417) | (224,316) | ||
Change in plan assets | ||||||
Fair value of assets, beginning of year | 26,078 | 24,751 | ||||
Actual return on plan assets | (1,697) | 2,629 | ||||
Employer contribution | 6,621 | 3,285 | ||||
Benefits paid | (4,639) | (4,587) | ||||
Settlements | 0 | 0 | ||||
Fair value of assets at end of year | 26,078 | 26,363 | 26,078 | $ 24,751 | ||
Unfunded status at December 31 | (94,339) | (96,285) | (94,339) | |||
Amounts recognized in the statement of financial position consist of: | ||||||
Current benefit liability | (3,017) | (3,342) | (3,017) | |||
Noncurrent benefit liability | (91,322) | (92,943) | (91,322) | |||
Total recognized in the statement of financial position | (94,339) | (96,285) | (94,339) | |||
Amounts recognized in accumulated other comprehensive loss | ||||||
Unamortized actuarial loss (gain) | (13,521) | (15,606) | (13,521) | |||
Prior service cost (credit) | 1,962 | 1,737 | 1,962 | |||
Total reflected in other comprehensive loss | $ (11,559) | $ (13,869) | $ (11,559) | |||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of Net Periodic Benefit Cost | ||||
Settlement and curtailment loss | $ 0 | $ 10,384 | $ 0 | |
Pension | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 352 | 480 | 681 | |
Interest cost | 15,599 | 18,042 | 19,969 | |
Expected return on plan assets | (20,948) | (17,291) | (16,746) | |
Recognized net actuarial loss (gain) | 3,482 | 9,033 | 7,526 | |
Prior service cost (credit) | 0 | (28) | (2) | |
Total other components of the net periodic benefit cost | (1,867) | 9,756 | 10,747 | |
Settlement and curtailment loss | 0 | 35,201 | 0 | |
Net periodic benefit cost | (1,515) | 45,437 | 11,428 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | ||||
Current year actuarial (gain) loss | 15,625 | 17,414 | 25,559 | |
Current year prior service cost | 0 | 0 | (932) | |
Amortization of actuarial gain (loss) | (3,482) | (9,033) | (7,526) | |
Amortization of prior service credit (cost) | 0 | 28 | 2 | |
Settlement and curtailment loss | 0 | (35,201) | 0 | |
Total recognized in other comprehensive loss | 12,143 | (26,792) | 17,103 | |
Total recognized in net periodic benefit cost and other comprehensive loss | 10,628 | 18,645 | 28,531 | |
Other | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | 8,119 | 12,403 | 13,618 | |
Interest cost | 4,708 | 8,022 | 10,227 | |
Expected return on plan assets | (1,413) | (1,106) | (1,137) | |
Recognized net actuarial loss (gain) | (774) | (241) | 204 | |
Prior service cost (credit) | 225 | 282 | 229 | |
Total other components of the net periodic benefit cost | 2,746 | 6,957 | 9,523 | |
Settlement and curtailment loss | $ (4,600) | 0 | 10,384 | 0 |
Net periodic benefit cost | 10,865 | 29,744 | 23,141 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | ||||
Current year actuarial (gain) loss | (2,858) | (18,972) | (7,677) | |
Current year prior service cost | 0 | (381) | 0 | |
Amortization of actuarial gain (loss) | 774 | 241 | (204) | |
Amortization of prior service credit (cost) | (225) | (282) | (229) | |
Settlement and curtailment loss | 0 | (10,384) | 0 | |
Total recognized in other comprehensive loss | (2,309) | (29,778) | (8,110) | |
Total recognized in net periodic benefit cost and other comprehensive loss | $ 8,556 | $ (34) | $ 15,031 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Actuarial Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Expected return on plan assets used to determine net periodic benefit expense, disability | 4.90% | |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate to determine net periodic benefit expense | 3.70% | 4.19% |
Discount rate to determine projected benefit obligation | 4.35% | 3.70% |
Expected return on plan assets | 7.33% | 6.34% |
Expected return on plan assets used to determine net periodic benefit expense | 6.91% | |
Postretirement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate to determine net periodic benefit expense | 3.71% | 4.29% |
Discount rate to determine projected benefit obligation | 4.36% | 3.71% |
Health care trend rate to determine net periodic benefit expense | 7.25% | 7.75% |
Ultimate trend rate | 4.75% | 7.25% |
Years to reach ultimate trend rate | 5 years | 6 years |
Health care trend rate to determine projected benefit obligation | 6.75% | 7.25% |
Ultimate trend rate | 4.75% | 4.75% |
Years to reach ultimate trend rate | 4 years | 5 years |
Disability | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate to determine net periodic benefit expense, Disability | 3.72% | 4.24% |
Discount rate to determine projected benefit obligation, Disability | 4.39% | 3.72% |
Expected return on plan assets, Disability | 4.90% | 4.60% |
Career progression | Pension | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assumed rate of compensation increases | 2.00% | |
Career progression | Pension | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assumed rate of compensation increases | 7.30% |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Assumptions and Estimates (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |
Effect on postretirement benefit obligation, 100 Basis Point Increase | $ 8,048 |
Effect on total service and interest cost, 100 Basis Point Increase | 892 |
Effect on postretirement benefit obligation, 100 Basis Point Decrease | (6,916) |
Effect on total service and interest cost, 100 Basis Point Decrease | (744) |
Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actuarial (gain) loss | 4,031 |
Amortization of prior service cost | 0 |
To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss | 4,031 |
Postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actuarial (gain) loss | (707) |
Amortization of prior service cost | 225 |
To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss | $ (482) |
Employee Benefit Plans - Plan A
Employee Benefit Plans - Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Asset allocation, actual | 100.00% | ||
Asset allocation, target | 100.00% | ||
Pension Benefits | |||
Expected Future Benefit Payments | |||
2,019 | $ 23,343 | ||
2,020 | 24,471 | ||
2,021 | 25,252 | ||
2,022 | 25,730 | ||
2,023 | 26,189 | ||
2024 - 2028 | 132,395 | ||
Expected future benefit payments | 257,380 | ||
Prescription Drug Subsidy Receipts, Rolling Maturity [Abstract] (Deprecated 2017-01-31) | |||
Defined Benefit Plan, Plan Assets, Amount | 308,024 | $ 296,386 | $ 302,982 |
Other Benefits | |||
Expected Future Benefit Payments | |||
2,019 | 5,254 | ||
2,020 | 6,040 | ||
2,021 | 6,848 | ||
2,022 | 7,425 | ||
2,023 | 8,051 | ||
2024 - 2028 | 47,804 | ||
Expected future benefit payments | 81,422 | ||
Prescription Drug Subsidy Receipts, Rolling Maturity [Abstract] (Deprecated 2017-01-31) | |||
2019, Expected Federal Subsidy | (47) | ||
2020, Expected Federal Subsidy | (51) | ||
2021, Expected Federal Subsidy | (54) | ||
2022, Expected Federal Subsidy | (56) | ||
2023, Expected Federal Subsidy | (58) | ||
2024 - 2028, Expected Federal Subsidy | (304) | ||
Expected Federal Subsidy | (570) | ||
Defined Benefit Plan, Plan Assets, Amount | $ 26,363 | 26,078 | $ 24,751 |
Equity securities | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Asset allocation, actual | 57.00% | ||
Asset allocation, target | 60.00% | ||
Prescription Drug Subsidy Receipts, Rolling Maturity [Abstract] (Deprecated 2017-01-31) | |||
Defined Benefit Plan, Plan Assets, Amount | $ 175,583 | 177,252 | |
Fixed income securities | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Asset allocation, actual | 39.00% | ||
Asset allocation, target | 35.00% | ||
Prescription Drug Subsidy Receipts, Rolling Maturity [Abstract] (Deprecated 2017-01-31) | |||
Defined Benefit Plan, Plan Assets, Amount | $ 110,650 | 100,504 | |
Real estate investment trusts | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Asset allocation, actual | 4.00% | ||
Asset allocation, target | 5.00% | ||
Prescription Drug Subsidy Receipts, Rolling Maturity [Abstract] (Deprecated 2017-01-31) | |||
Defined Benefit Plan, Plan Assets, Amount | $ 14,718 | 14,587 | |
Insurance company pooled separate account | Pension Benefits | |||
Prescription Drug Subsidy Receipts, Rolling Maturity [Abstract] (Deprecated 2017-01-31) | |||
Defined Benefit Plan, Plan Assets, Amount | 7,076 | 4,044 | |
Total plan assets, excluding cash and receivables | Pension Benefits | |||
Prescription Drug Subsidy Receipts, Rolling Maturity [Abstract] (Deprecated 2017-01-31) | |||
Defined Benefit Plan, Plan Assets, Amount | 308,027 | 296,387 | |
Common collective trust fund | Other Benefits | |||
Prescription Drug Subsidy Receipts, Rolling Maturity [Abstract] (Deprecated 2017-01-31) | |||
Defined Benefit Plan, Plan Assets, Amount | $ 26,217 | $ 25,973 |
Employee Benefit Plans - Defi_3
Employee Benefit Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Contributions to the defined contribution plans | $ 42 | $ 39.1 | $ 31.6 |
Capital Stock and Share-based_3
Capital Stock and Share-based Compensation - Common Stock and Special Preffered Stock (Details) | 12 Months Ended | |
Dec. 31, 2018class_of_stockdirectorvote$ / sharesshares | Dec. 31, 2017$ / shares | |
Class of Stock [Line Items] | ||
Number of class of common stock issued and outstanding | class_of_stock | 1 | |
Number of shares of Special Preferred Stock held by each union | shares | 1 | |
Number of directors eligible for nomination by each union | director | 1 | |
Special preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Multiplier of dividend per share paid on common stock to determine dividend on Special Preferred Stock | 2 | |
Conversion ratio for Special Preferred Stock | 1 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Number of votes per share | 1 | |
Preferred Stock | ||
Class of Stock [Line Items] | ||
Number of votes per share | 1 |
Capital Stock and Share-based_4
Capital Stock and Share-based Compensation - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Subsequent Event [Line Items] | ||||||
Cash payment for dividends | $ 24,171 | $ 6,261 | $ 0 | |||
Cash dividends declared per common share (in dollars per share) | $ 0.48 | $ 0.12 | [1] | $ 0 | [1] | |
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividends declared per common share (in dollars per share) | $ 0.12 | |||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Capital Stock and Share-based_5
Capital Stock and Share-based Compensation - Stock Repurchase Program (Details) - USD ($) shares in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Approved stock repurchase program, amount | $ 100,000,000 | ||
Period of time to repurchase outstanding stock | 2 years | ||
Amount spent to repurchase shares | $ 102,500,000 | $ 100,000,000 | |
Number of shares repurchased (in shares) | 2.8 | 2.5 | |
Amount remaining to spend under the stock repurchase program | $ 97,500,000 |
Capital Stock and Share-based_6
Capital Stock and Share-based Compensation - Share-Based Compensation and Stock Options (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense recognized | $ 5.3 | $ 7.3 | $ 8.4 |
Share-based compensation expense related to unvested stock options and other stock awards | $ 5.4 | ||
Weighted average period related expense will be recognized | 1 year 3 months | ||
Non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense related to unvested stock options and other stock awards | $ 0.4 |
Capital Stock and Share-based_7
Capital Stock and Share-based Compensation - Performance-Based Stock Awards (Details) - Performance Shares - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted, before performance based metric (in shares) | 83,293 | ||
Maximum payout (in shares) | 166,586 | ||
Vesting period | 3 years | ||
Additional shares from performance based metric (in shares) | 77,055 | ||
Number of units | |||
Non-vested at the beginning of the period (in shares) | 381,956 | 422,297 | 678,742 |
Granted (in shares) | 160,348 | 355,897 | 117,849 |
Vested (in shares) | (211,053) | (358,619) | (349,403) |
Forfeited (in shares) | (69,399) | (37,619) | (24,891) |
Non-vested at the end of the period (in shares) | 261,852 | 381,956 | 422,297 |
Weighted average grant date fair value | |||
Non-vested at the beginning of the period (in dollars per share) | $ 28.03 | $ 14 | $ 10.53 |
Granted (in dollars per share) | 39.09 | 43.51 | 33.94 |
Vested (in dollars per share) | 26.28 | 12.71 | 7.32 |
Forfeited (in dollars per share) | 39.42 | 27.60 | 13.45 |
Non-vested at the end of the period (in dollars per share) | $ 33.01 | $ 28.03 | $ 14 |
Fair value of vested awards | $ 8.2 | $ 17.9 | $ 11.3 |
Capital Stock and Share-based_8
Capital Stock and Share-based Compensation - Time-Based Stock Awards (Details) - Service-Based Stock Awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted (in shares) | 128,617 | 22,898 | 110,276 |
Number of units | |||
Non-vested at the beginning of the period (in shares) | 91,378 | 195,449 | 270,721 |
Granted (in shares) | 128,617 | 22,898 | 110,276 |
Vested (in shares) | (68,803) | (110,575) | (169,218) |
Forfeited (in shares) | (8,241) | (16,394) | (16,330) |
Non-vested at the end of the period (in shares) | 142,951 | 91,378 | 195,449 |
Weighted average grant date fair value | |||
Non-vested at the beginning of the period (in dollars per share) | $ 28.12 | $ 24.29 | $ 15.02 |
Granted (in dollars per share) | 38.71 | 49.95 | 37.08 |
Vested (in dollars per share) | 38.98 | 23.80 | 16.32 |
Forfeited (in dollars per share) | 38.03 | 26.71 | 20.46 |
Non-vested at the end of the period (in dollars per share) | $ 38.77 | $ 28.12 | $ 24.29 |
Fair value of vested awards | $ 2.7 | $ 5.6 | $ 6.1 |
Share-based Compensation Award, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Share-based Compensation Award, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Share-based Compensation Award, Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Expenditures (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Long-term Purchase Commitment [Line Items] | |
2,019 | $ 404,710 |
2,020 | 231,999 |
2,021 | 369,288 |
2,022 | 489,709 |
2,023 | 289,996 |
Thereafter | 642,634 |
Total contractual obligation | 2,428,336 |
Aircraft and aircraft related | |
Long-term Purchase Commitment [Line Items] | |
2,019 | 330,089 |
2,020 | 162,270 |
2,021 | 303,184 |
2,022 | 431,210 |
2,023 | 236,639 |
Thereafter | 477,788 |
Total contractual obligation | 1,941,180 |
Other | |
Long-term Purchase Commitment [Line Items] | |
2,019 | 74,621 |
2,020 | 69,729 |
2,021 | 66,104 |
2,022 | 58,499 |
2,023 | 53,357 |
Thereafter | 164,846 |
Total contractual obligation | $ 487,156 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Orders and Purchase Rights (Details) - Aircraft and aircraft related | 12 Months Ended |
Dec. 31, 2018orderpurchase_right | |
Pratt & Whitney spare engines, A321 neo | |
Long-term Purchase Commitment [Line Items] | |
Firm Orders | order | 1 |
Purchase Rights | purchase_right | 2 |
Rolls-Royce spare engines, A330-800neo | |
Long-term Purchase Commitment [Line Items] | |
Firm Orders | order | 2 |
Purchase Rights | purchase_right | 2 |
A321neo aircraft | |
Long-term Purchase Commitment [Line Items] | |
Firm Orders | order | 7 |
Purchase Rights | purchase_right | 3 |
B787-9 aircraft | |
Long-term Purchase Commitment [Line Items] | |
Firm Orders | order | 10 |
Purchase Rights | purchase_right | 10 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2018orderpurchase_right | Jul. 31, 2018aircraft | Feb. 28, 2018aircraft | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Long-term Purchase Commitment [Line Items] | |||||
Percentage of employees represented by unions | 84.00% | ||||
Association of Flight Attendants | |||||
Long-term Purchase Commitment [Line Items] | |||||
Percentage of employees represented by unions | 29.00% | ||||
Credit card processing agreements | |||||
Long-term Purchase Commitment [Line Items] | |||||
Restricted cash | $ | $ 0 | $ 1 | |||
Maximum amount that holdback could increase | 100.00% | ||||
A-330-800-Neo | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of aircrafts terminated | 6 | ||||
Number of aircraft purchase rights | 6 | ||||
B787-9 aircraft | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of aircrafts under purchase agreement | 10 | ||||
Number of aircrafts with purchase rights under purchase agreement | 10 | ||||
B787-9 aircraft | GEnx Engines | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of engine firm order | purchase_right | 20 | ||||
Number of engine, purchase rights | order | 20 | ||||
B787-9 aircraft | GEnx spare engines | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of spare engines, with option to purchase | purchase_right | 4 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash payments for interest (net of amounts capitalized) | $ 24,343 | $ 23,134 | $ 29,751 |
Cash payments for income taxes | 16,063 | 65,812 | 92,934 |
Investing and Financing Activities Not Affecting Cash: | |||
Property and equipment acquired through a capital or financing lease | 119,530 | 72,996 | 6,092 |
Maintenance hangar project (see Note 9) | $ 0 | $ 0 | $ 72,996 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2018USD ($)pass_through_trust | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | [1] | Sep. 30, 2017USD ($) | [1] | Jun. 30, 2017USD ($) | [1] | Mar. 31, 2017USD ($) | [1] | Dec. 31, 2018USD ($)pass_through_trust | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2013pass_through_trust | |||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||||||||||||||||
Number of pass-through trusts | pass_through_trust | 2 | |||||||||||||||||
Operating Revenue: | ||||||||||||||||||
Total Operating Revenue | $ 697,465 | $ 759,087 | $ 715,447 | $ 665,412 | $ 682,604 | $ 716,216 | $ 670,116 | $ 606,209 | $ 2,837,411 | $ 2,675,145 | [2] | $ 2,432,413 | [2] | |||||
Operating Expenses: | ||||||||||||||||||
Aircraft fuel, including taxes and delivery | 599,544 | 440,383 | [2] | 344,322 | [2] | |||||||||||||
Wages and benefits | 684,719 | 632,997 | [2] | 535,264 | [2] | |||||||||||||
Aircraft rent | 125,961 | 137,764 | [2] | 124,565 | [2] | |||||||||||||
Maintenance materials and repairs | 239,759 | 219,553 | [2] | 229,044 | [2] | |||||||||||||
Aircraft and passenger servicing | 157,796 | 144,853 | [2] | 129,899 | [2] | |||||||||||||
Commissions and other selling | 129,315 | 126,750 | [2] | 122,787 | [2] | |||||||||||||
Depreciation and amortization | 139,866 | 113,277 | [2] | 108,128 | [2] | |||||||||||||
Other rentals and landing fees | 126,903 | 116,763 | [2] | 108,087 | [2] | |||||||||||||
Purchased services | 131,651 | 110,787 | [2] | 96,199 | [2] | |||||||||||||
Special items | 35,322 | 23,450 | 109,142 | |||||||||||||||
Contract terminations expense | 35,322 | 0 | [2] | 0 | [2] | |||||||||||||
Other | 152,207 | 144,530 | [2] | 127,489 | [2] | |||||||||||||
Total | 2,523,043 | 2,211,107 | [2] | 2,034,926 | [2] | |||||||||||||
Operating Income | 69,349 | 115,826 | 92,928 | 36,265 | 96,166 | 169,002 | 136,840 | 62,030 | 314,368 | 464,038 | [2] | 397,487 | [2] | |||||
Nonoperating Income (Expense): | ||||||||||||||||||
Undistributed net income of subsidiaries | 0 | 0 | 0 | |||||||||||||||
Other nonoperating special items | 0 | (45,585) | [2] | 0 | [2] | |||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (33,001) | (30,901) | [2] | (36,612) | [2] | |||||||||||||
Interest income | 9,242 | 6,132 | [2] | 4,007 | [2] | |||||||||||||
Capitalized interest | 7,887 | 8,437 | [2] | 2,651 | [2] | |||||||||||||
Other components of net periodic benefit cost | (825) | (16,713) | [2] | (20,270) | [2] | |||||||||||||
Gains on fuel derivatives | 5,590 | 3,312 | [2] | 20,106 | [2] | |||||||||||||
Loss on extinguishment of debt | 0 | 0 | [2],[3] | (10,473) | [2],[3] | |||||||||||||
Other, net | (2,103) | 2,101 | [2] | 4,323 | [2] | |||||||||||||
Total | (27,830) | 931 | 12,859 | 830 | 9,899 | (54,113) | (13,191) | (15,813) | (13,210) | (73,217) | [2] | (36,268) | [2] | |||||
Income Before Income Taxes | 301,158 | 390,821 | [2] | 361,219 | [2] | |||||||||||||
Income tax expense (benefit) | 67,958 | 60,211 | [2] | 137,099 | [2] | |||||||||||||
Net Income | $ 31,636 | $ 93,542 | $ 79,480 | $ 28,542 | $ 148,448 | $ 71,622 | $ 76,894 | $ 33,645 | 233,200 | 330,610 | [2],[3],[4] | 224,120 | [2],[3],[4] | |||||
Comprehensive Income (Loss) | 227,834 | 358,839 | [4] | 219,904 | [4] | |||||||||||||
Eliminations | ||||||||||||||||||
Operating Revenue: | ||||||||||||||||||
Total Operating Revenue | (405) | (392) | (363) | |||||||||||||||
Operating Expenses: | ||||||||||||||||||
Aircraft fuel, including taxes and delivery | 0 | 0 | 0 | |||||||||||||||
Wages and benefits | 0 | 0 | 0 | |||||||||||||||
Aircraft rent | 0 | 0 | 0 | |||||||||||||||
Maintenance materials and repairs | 0 | 0 | 0 | |||||||||||||||
Aircraft and passenger servicing | 0 | 0 | 0 | |||||||||||||||
Commissions and other selling | (140) | (137) | (126) | |||||||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||||||
Other rentals and landing fees | 0 | 0 | 0 | |||||||||||||||
Purchased services | (61) | (60) | (60) | |||||||||||||||
Special items | 0 | 0 | ||||||||||||||||
Contract terminations expense | 0 | |||||||||||||||||
Other | (204) | (195) | (177) | |||||||||||||||
Total | (405) | (392) | (363) | |||||||||||||||
Operating Income | 0 | 0 | 0 | |||||||||||||||
Nonoperating Income (Expense): | ||||||||||||||||||
Undistributed net income of subsidiaries | (238,365) | (333,476) | (226,561) | |||||||||||||||
Other nonoperating special items | 0 | 0 | ||||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | 0 | 0 | 0 | |||||||||||||||
Interest income | 0 | 0 | 0 | |||||||||||||||
Capitalized interest | 0 | 0 | 0 | |||||||||||||||
Other components of net periodic benefit cost | 0 | 0 | 0 | |||||||||||||||
Gains on fuel derivatives | 0 | 0 | 0 | |||||||||||||||
Loss on extinguishment of debt | 0 | |||||||||||||||||
Other, net | 0 | 0 | 0 | |||||||||||||||
Total | (238,365) | (333,476) | (226,561) | |||||||||||||||
Income Before Income Taxes | (238,365) | (333,476) | (226,561) | |||||||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||||||||
Net Income | (238,365) | (333,476) | (226,561) | |||||||||||||||
Comprehensive Income (Loss) | (232,999) | (361,707) | (222,344) | |||||||||||||||
Parent Issuer / Guarantor | Reportable Legal Entities | ||||||||||||||||||
Operating Revenue: | ||||||||||||||||||
Total Operating Revenue | 0 | 0 | 0 | |||||||||||||||
Operating Expenses: | ||||||||||||||||||
Aircraft fuel, including taxes and delivery | 0 | 0 | 0 | |||||||||||||||
Wages and benefits | 0 | 0 | 0 | |||||||||||||||
Aircraft rent | 0 | 0 | 0 | |||||||||||||||
Maintenance materials and repairs | 0 | 0 | 0 | |||||||||||||||
Aircraft and passenger servicing | 0 | 0 | 0 | |||||||||||||||
Commissions and other selling | (5) | 84 | 72 | |||||||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||||||
Other rentals and landing fees | 0 | 0 | 0 | |||||||||||||||
Purchased services | 195 | 478 | 149 | |||||||||||||||
Special items | 0 | 0 | ||||||||||||||||
Contract terminations expense | 0 | |||||||||||||||||
Other | 6,527 | 5,393 | 5,300 | |||||||||||||||
Total | 6,717 | 5,955 | 5,521 | |||||||||||||||
Operating Income | (6,717) | (5,955) | (5,521) | |||||||||||||||
Nonoperating Income (Expense): | ||||||||||||||||||
Undistributed net income of subsidiaries | 238,365 | 333,476 | 226,561 | |||||||||||||||
Other nonoperating special items | 0 | 0 | ||||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (3) | 0 | 117 | |||||||||||||||
Interest income | 185 | 0 | 265 | |||||||||||||||
Capitalized interest | 0 | 0 | 0 | |||||||||||||||
Other components of net periodic benefit cost | 0 | 0 | 0 | |||||||||||||||
Gains on fuel derivatives | 0 | 0 | 0 | |||||||||||||||
Loss on extinguishment of debt | 0 | |||||||||||||||||
Other, net | (4) | |||||||||||||||||
Total | 238,543 | 333,476 | 226,943 | |||||||||||||||
Income Before Income Taxes | 231,826 | 327,521 | 221,422 | |||||||||||||||
Income tax expense (benefit) | (1,374) | (3,089) | (2,698) | |||||||||||||||
Net Income | 233,200 | 330,610 | 224,120 | |||||||||||||||
Comprehensive Income (Loss) | $ 227,834 | 358,841 | 219,903 | |||||||||||||||
Subsidiary Issuer / Guarantor | ||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||||||||||||||||
Number of pass-through trusts | pass_through_trust | 2 | 2 | ||||||||||||||||
Subsidiary Issuer / Guarantor | Reportable Legal Entities | ||||||||||||||||||
Operating Revenue: | ||||||||||||||||||
Total Operating Revenue | $ 2,827,215 | 2,667,435 | 2,426,479 | |||||||||||||||
Operating Expenses: | ||||||||||||||||||
Aircraft fuel, including taxes and delivery | 599,544 | 440,383 | 344,322 | |||||||||||||||
Wages and benefits | 684,719 | 632,997 | 535,264 | |||||||||||||||
Aircraft rent | 125,883 | 137,289 | 124,521 | |||||||||||||||
Maintenance materials and repairs | 233,503 | 215,473 | 225,707 | |||||||||||||||
Aircraft and passenger servicing | 157,796 | 144,853 | 129,899 | |||||||||||||||
Commissions and other selling | 129,332 | 126,674 | 122,717 | |||||||||||||||
Depreciation and amortization | 134,651 | 109,458 | 104,689 | |||||||||||||||
Other rentals and landing fees | 126,509 | 116,763 | 108,087 | |||||||||||||||
Purchased services | 130,665 | 109,436 | 95,450 | |||||||||||||||
Special items | 23,450 | 109,142 | ||||||||||||||||
Contract terminations expense | 35,322 | |||||||||||||||||
Other | 142,125 | 137,494 | 121,104 | |||||||||||||||
Total | 2,500,049 | 2,194,270 | 2,020,902 | |||||||||||||||
Operating Income | 327,166 | 473,165 | 405,577 | |||||||||||||||
Nonoperating Income (Expense): | ||||||||||||||||||
Undistributed net income of subsidiaries | 0 | 0 | 0 | |||||||||||||||
Other nonoperating special items | 0 | (45,585) | ||||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (32,861) | (30,901) | (36,729) | |||||||||||||||
Interest income | 9,057 | 5,830 | 3,742 | |||||||||||||||
Capitalized interest | 7,887 | 8,437 | 2,651 | |||||||||||||||
Other components of net periodic benefit cost | (825) | (16,713) | (20,270) | |||||||||||||||
Gains on fuel derivatives | 5,590 | 3,312 | 20,106 | |||||||||||||||
Loss on extinguishment of debt | (10,473) | |||||||||||||||||
Other, net | (2,117) | 2,101 | 4,323 | |||||||||||||||
Total | (13,269) | (73,519) | (36,650) | |||||||||||||||
Income Before Income Taxes | 313,897 | 399,646 | 368,927 | |||||||||||||||
Income tax expense (benefit) | 70,634 | 63,300 | 139,797 | |||||||||||||||
Net Income | 243,263 | 336,346 | 229,130 | |||||||||||||||
Comprehensive Income (Loss) | 237,897 | 364,575 | 224,914 | |||||||||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||||||||
Operating Revenue: | ||||||||||||||||||
Total Operating Revenue | 10,601 | 8,102 | 6,297 | |||||||||||||||
Operating Expenses: | ||||||||||||||||||
Aircraft fuel, including taxes and delivery | 0 | 0 | 0 | |||||||||||||||
Wages and benefits | 0 | 0 | 0 | |||||||||||||||
Aircraft rent | 78 | 475 | 44 | |||||||||||||||
Maintenance materials and repairs | 6,256 | 4,080 | 3,337 | |||||||||||||||
Aircraft and passenger servicing | 0 | 0 | 0 | |||||||||||||||
Commissions and other selling | 128 | 129 | 124 | |||||||||||||||
Depreciation and amortization | 5,215 | 3,819 | 3,439 | |||||||||||||||
Other rentals and landing fees | 394 | 0 | 0 | |||||||||||||||
Purchased services | 852 | 933 | 660 | |||||||||||||||
Special items | 0 | 0 | ||||||||||||||||
Contract terminations expense | 0 | |||||||||||||||||
Other | 3,759 | 1,838 | 1,262 | |||||||||||||||
Total | 16,682 | 11,274 | 8,866 | |||||||||||||||
Operating Income | (6,081) | (3,172) | (2,569) | |||||||||||||||
Nonoperating Income (Expense): | ||||||||||||||||||
Undistributed net income of subsidiaries | 0 | 0 | 0 | |||||||||||||||
Other nonoperating special items | 0 | 0 | ||||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (137) | 0 | 0 | |||||||||||||||
Interest income | 0 | 302 | 0 | |||||||||||||||
Capitalized interest | 0 | 0 | 0 | |||||||||||||||
Other components of net periodic benefit cost | 0 | 0 | 0 | |||||||||||||||
Gains on fuel derivatives | 0 | 0 | 0 | |||||||||||||||
Loss on extinguishment of debt | 0 | |||||||||||||||||
Other, net | 18 | 0 | 0 | |||||||||||||||
Total | (119) | 302 | 0 | |||||||||||||||
Income Before Income Taxes | (6,200) | (2,870) | (2,569) | |||||||||||||||
Income tax expense (benefit) | (1,302) | 0 | 0 | |||||||||||||||
Net Income | (4,898) | (2,870) | (2,569) | |||||||||||||||
Comprehensive Income (Loss) | $ (4,898) | $ (2,870) | $ (2,569) | |||||||||||||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | |||||||||||||||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | |||||||||||||||||
[3] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | |||||||||||||||||
[4] | Amounts adjusted for the adoption of ASC No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||||
Cash and cash equivalents | $ 268,577 | $ 190,953 | [1] | ||
Restricted cash | 0 | 1,000 | [1] | ||
Short-term investments | 232,241 | 269,297 | [1] | ||
Accounts receivable, net | 111,834 | 140,279 | [1] | ||
Spare parts and supplies, net | 33,942 | 35,361 | [1] | ||
Prepaid expenses and other | 58,573 | 79,186 | [1] | ||
Total | 705,167 | 716,076 | [1] | ||
Property and equipment at cost | 2,848,572 | 2,400,811 | [1] | ||
Less accumulated depreciation and amortization | (663,461) | (558,548) | [1] | ||
Total | 2,185,111 | 1,842,263 | [1] | ||
Long-term prepayments and other | 185,556 | 193,632 | [1] | ||
Deferred tax assets, net | 0 | 0 | |||
Goodwill and other intangible assets, net | 120,812 | 121,850 | |||
Intercompany receivable | 0 | 0 | |||
Investment in consolidated subsidiaries | 0 | 0 | |||
Total Assets | 3,196,646 | 2,873,821 | [1] | ||
Current liabilities: | |||||
Accounts payable | 143,146 | 140,805 | [1] | ||
Air traffic liability and current frequent flyer deferred revenue | 603,736 | 589,093 | [1] | ||
Other accrued liabilities | 158,154 | 147,593 | [1] | ||
Current maturities of long-term debt, less discount, and capital lease obligations | 101,097 | 59,470 | [1] | ||
Total | 1,006,133 | 936,961 | [1] | ||
Long-term debt and capital lease obligations | 608,684 | 511,201 | [1] | ||
Intercompany payable | 0 | 0 | |||
Other liabilities and deferred credits: | |||||
Accumulated pension and other postretirement benefit obligations | 182,620 | 220,788 | [1] | ||
Other liabilities and deferred credits | 119,826 | 75,841 | [1] | ||
Noncurrent frequent flyer deferred revenue | 163,619 | 149,764 | [1] | ||
Deferred tax liability, net | 167,770 | 134,141 | [1] | ||
Total | 633,835 | 580,534 | [1] | ||
Shareholders' equity | 947,994 | 845,125 | [1] | $ 593,067 | $ 446,062 |
Total Liabilities and Shareholders' Equity | 3,196,646 | 2,873,821 | [1] | ||
Eliminations | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Short-term investments | 0 | 0 | |||
Accounts receivable, net | (234) | (209) | |||
Spare parts and supplies, net | 0 | 0 | |||
Prepaid expenses and other | 0 | 0 | |||
Total | (234) | (209) | |||
Property and equipment at cost | 0 | 0 | |||
Less accumulated depreciation and amortization | 0 | 0 | |||
Total | 0 | 0 | |||
Long-term prepayments and other | (63,494) | 0 | |||
Deferred tax assets, net | 0 | (31,845) | |||
Goodwill and other intangible assets, net | 0 | 0 | |||
Intercompany receivable | (456,338) | (392,791) | |||
Investment in consolidated subsidiaries | (1,325,380) | (1,137,941) | |||
Total Assets | (1,845,446) | (1,562,786) | |||
Current liabilities: | |||||
Accounts payable | (234) | (209) | |||
Air traffic liability and current frequent flyer deferred revenue | 0 | 0 | |||
Other accrued liabilities | 0 | 0 | |||
Current maturities of long-term debt, less discount, and capital lease obligations | 0 | 0 | |||
Total | (234) | (209) | |||
Long-term debt and capital lease obligations | 0 | 0 | |||
Intercompany payable | (456,338) | (392,791) | |||
Other liabilities and deferred credits: | |||||
Accumulated pension and other postretirement benefit obligations | 0 | 0 | |||
Other liabilities and deferred credits | 0 | ||||
Noncurrent frequent flyer deferred revenue | 0 | 0 | |||
Deferred tax liability, net | 0 | (31,845) | |||
Total | 0 | (31,845) | |||
Shareholders' equity | (1,388,874) | (1,137,941) | |||
Total Liabilities and Shareholders' Equity | (1,845,446) | (1,562,786) | |||
Parent Issuer / Guarantor | Reportable Legal Entities | |||||
Current assets: | |||||
Cash and cash equivalents | 5,154 | 57,405 | |||
Restricted cash | 0 | 0 | |||
Short-term investments | 0 | 0 | |||
Accounts receivable, net | 0 | 25 | |||
Spare parts and supplies, net | 0 | 0 | |||
Prepaid expenses and other | 165 | 171 | |||
Total | 5,319 | 57,601 | |||
Property and equipment at cost | 0 | 0 | |||
Less accumulated depreciation and amortization | 0 | 0 | |||
Total | 0 | 0 | |||
Long-term prepayments and other | 62,990 | 0 | |||
Deferred tax assets, net | 0 | 31,845 | |||
Goodwill and other intangible assets, net | 0 | 0 | |||
Intercompany receivable | 0 | 0 | |||
Investment in consolidated subsidiaries | 1,325,380 | 1,137,941 | |||
Total Assets | 1,393,689 | 1,227,387 | |||
Current liabilities: | |||||
Accounts payable | 665 | 622 | |||
Air traffic liability and current frequent flyer deferred revenue | 0 | 0 | |||
Other accrued liabilities | 0 | 32 | |||
Current maturities of long-term debt, less discount, and capital lease obligations | 0 | 0 | |||
Total | 665 | 654 | |||
Long-term debt and capital lease obligations | 0 | 0 | |||
Intercompany payable | 445,030 | 381,608 | |||
Other liabilities and deferred credits: | |||||
Accumulated pension and other postretirement benefit obligations | 0 | 0 | |||
Other liabilities and deferred credits | 0 | 0 | |||
Noncurrent frequent flyer deferred revenue | 0 | 0 | |||
Deferred tax liability, net | 0 | 0 | |||
Total | 0 | 0 | |||
Shareholders' equity | 947,994 | 845,125 | |||
Total Liabilities and Shareholders' Equity | 1,393,689 | 1,227,387 | |||
Subsidiary Issuer / Guarantor | Reportable Legal Entities | |||||
Current assets: | |||||
Cash and cash equivalents | 255,279 | 125,861 | |||
Restricted cash | 0 | 1,000 | |||
Short-term investments | 232,241 | 269,297 | |||
Accounts receivable, net | 109,499 | 139,008 | |||
Spare parts and supplies, net | 33,942 | 35,361 | |||
Prepaid expenses and other | 58,296 | 78,933 | |||
Total | 689,257 | 649,460 | |||
Property and equipment at cost | 2,756,551 | 2,326,249 | |||
Less accumulated depreciation and amortization | (648,111) | (546,831) | |||
Total | 2,108,440 | 1,779,418 | |||
Long-term prepayments and other | 185,161 | 193,449 | |||
Deferred tax assets, net | 0 | 0 | |||
Goodwill and other intangible assets, net | 120,119 | 120,695 | |||
Intercompany receivable | 456,338 | 392,791 | |||
Investment in consolidated subsidiaries | 0 | 0 | |||
Total Assets | 3,559,315 | 3,135,813 | |||
Current liabilities: | |||||
Accounts payable | 139,552 | 138,818 | |||
Air traffic liability and current frequent flyer deferred revenue | 598,387 | 584,366 | |||
Other accrued liabilities | 157,842 | 147,211 | |||
Current maturities of long-term debt, less discount, and capital lease obligations | 101,052 | 59,470 | |||
Total | 996,833 | 929,865 | |||
Long-term debt and capital lease obligations | 604,089 | 511,201 | |||
Intercompany payable | 0 | 0 | |||
Other liabilities and deferred credits: | |||||
Accumulated pension and other postretirement benefit obligations | 182,620 | 220,788 | |||
Other liabilities and deferred credits | 118,682 | 74,736 | |||
Noncurrent frequent flyer deferred revenue | 163,619 | 149,764 | |||
Deferred tax liability, net | 167,770 | 165,986 | |||
Total | 632,691 | 611,274 | |||
Shareholders' equity | 1,325,702 | 1,083,473 | |||
Total Liabilities and Shareholders' Equity | 3,559,315 | 3,135,813 | |||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||
Current assets: | |||||
Cash and cash equivalents | 8,144 | 7,687 | |||
Restricted cash | 0 | 0 | |||
Short-term investments | 0 | 0 | |||
Accounts receivable, net | 2,569 | 1,455 | |||
Spare parts and supplies, net | 0 | 0 | |||
Prepaid expenses and other | 112 | 82 | |||
Total | 10,825 | 9,224 | |||
Property and equipment at cost | 92,021 | 74,562 | |||
Less accumulated depreciation and amortization | (15,350) | (11,717) | |||
Total | 76,671 | 62,845 | |||
Long-term prepayments and other | 899 | 183 | |||
Deferred tax assets, net | 0 | 0 | |||
Goodwill and other intangible assets, net | 693 | 1,155 | |||
Intercompany receivable | 0 | 0 | |||
Investment in consolidated subsidiaries | 0 | 0 | |||
Total Assets | 89,088 | 73,407 | |||
Current liabilities: | |||||
Accounts payable | 3,163 | 1,574 | |||
Air traffic liability and current frequent flyer deferred revenue | 5,349 | 4,727 | |||
Other accrued liabilities | 312 | 350 | |||
Current maturities of long-term debt, less discount, and capital lease obligations | 45 | 0 | |||
Total | 8,869 | 6,651 | |||
Long-term debt and capital lease obligations | 4,595 | 0 | |||
Intercompany payable | 11,308 | 11,183 | |||
Other liabilities and deferred credits: | |||||
Accumulated pension and other postretirement benefit obligations | 0 | 0 | |||
Other liabilities and deferred credits | 1,144 | 1,105 | |||
Noncurrent frequent flyer deferred revenue | 0 | 0 | |||
Deferred tax liability, net | 0 | 0 | |||
Total | 1,144 | 1,105 | |||
Shareholders' equity | 63,172 | 54,468 | |||
Total Liabilities and Shareholders' Equity | $ 89,088 | $ 73,407 | |||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Net Cash Provided By (Used In) Operating Activities: | $ 508,508 | $ 331,135 | [1] | $ 437,044 | [1] | |
Cash Flows From Investing Activities: | ||||||
Net payments to affiliates | 0 | 0 | 0 | |||
Additions to property and equipment, including pre-delivery deposits | (486,777) | (341,515) | [1] | (178,838) | [1] | |
Proceeds from purchase assignment and leaseback transactions | 87,000 | 33,000 | [1] | 31,851 | [1] | |
Proceeds from disposition of property and equipment | 46,714 | 941 | [1] | 16 | [1] | |
Purchases of investments | (210,836) | (231,393) | [1] | (260,987) | [1] | |
Sales of investments | 247,423 | 244,261 | [1] | 253,855 | [1] | |
Net cash used in investing activities | (316,476) | (294,706) | [1] | (154,103) | [1] | |
Cash Flows From Financing Activities: | ||||||
Long-term borrowings | 86,500 | 0 | [1] | 0 | [1] | |
Repayments of long-term debt and capital lease obligations | (68,245) | (61,486) | [1] | (214,025) | [1] | |
Dividend payments | (24,171) | (6,261) | [1] | 0 | [1] | |
Repurchases and conversion of convertible notes | 0 | 0 | [1] | (1,426) | [1] | |
Repurchases of common stock | (102,500) | (100,000) | [1] | (13,763) | [1] | |
Debt issuance costs | (3,350) | (188) | [1] | (1,653) | [1] | |
Net payments from affiliates | 0 | 0 | 0 | |||
Other | (3,642) | (7,532) | (7,585) | |||
Net cash used in financing activities | (115,408) | (175,467) | [1] | (238,452) | [1] | |
Net increase (decrease) in cash and cash equivalents | 76,624 | (139,038) | [1] | 44,489 | [1] | |
Cash, cash equivalents, and restricted cash—Beginning of Year | [1] | 191,953 | 330,991 | 286,502 | ||
Cash, cash equivalents, and restricted cash—End of Year | 268,577 | 191,953 | [1] | 330,991 | [1] | |
Eliminations | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Net Cash Provided By (Used In) Operating Activities: | 0 | 0 | 0 | |||
Cash Flows From Investing Activities: | ||||||
Net payments to affiliates | 105,915 | 105,754 | 28,927 | |||
Additions to property and equipment, including pre-delivery deposits | 0 | 0 | 0 | |||
Proceeds from purchase assignment and leaseback transactions | 0 | 0 | 0 | |||
Proceeds from disposition of property and equipment | 0 | 0 | 0 | |||
Purchases of investments | 0 | 0 | 0 | |||
Sales of investments | 0 | 0 | 0 | |||
Net cash used in investing activities | 105,915 | 105,754 | 28,927 | |||
Cash Flows From Financing Activities: | ||||||
Long-term borrowings | 0 | |||||
Repayments of long-term debt and capital lease obligations | 0 | 0 | 0 | |||
Dividend payments | 0 | 0 | ||||
Repurchases and conversion of convertible notes | 0 | |||||
Repurchases of common stock | 0 | 0 | 0 | |||
Debt issuance costs | 0 | 0 | 0 | |||
Net payments from affiliates | (105,915) | (105,754) | (28,927) | |||
Other | 0 | |||||
Net cash used in financing activities | (105,915) | (105,754) | (28,927) | |||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | |||
Cash, cash equivalents, and restricted cash—Beginning of Year | 0 | 0 | 0 | |||
Cash, cash equivalents, and restricted cash—End of Year | 0 | 0 | 0 | |||
Parent Issuer / Guarantor | Reportable Legal Entities | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Net Cash Provided By (Used In) Operating Activities: | (2,773) | (4,803) | (4,954) | |||
Cash Flows From Investing Activities: | ||||||
Net payments to affiliates | (14,400) | (2,500) | 0 | |||
Additions to property and equipment, including pre-delivery deposits | 0 | 0 | 0 | |||
Proceeds from purchase assignment and leaseback transactions | 0 | 0 | 0 | |||
Proceeds from disposition of property and equipment | 0 | 0 | 0 | |||
Purchases of investments | 0 | 0 | 0 | |||
Sales of investments | 0 | 0 | 0 | |||
Net cash used in investing activities | (14,400) | (2,500) | 0 | |||
Cash Flows From Financing Activities: | ||||||
Long-term borrowings | 0 | |||||
Repayments of long-term debt and capital lease obligations | 0 | |||||
Dividend payments | (24,171) | (6,261) | ||||
Repurchases and conversion of convertible notes | (1,426) | |||||
Repurchases of common stock | (102,500) | (100,000) | (13,763) | |||
Debt issuance costs | 0 | 0 | 0 | |||
Net payments from affiliates | 91,515 | 103,254 | 17,894 | |||
Other | 78 | 86 | 458 | |||
Net cash used in financing activities | (35,078) | (2,921) | 3,163 | |||
Net increase (decrease) in cash and cash equivalents | (52,251) | (10,224) | (1,791) | |||
Cash, cash equivalents, and restricted cash—Beginning of Year | 57,405 | 67,629 | 69,420 | |||
Cash, cash equivalents, and restricted cash—End of Year | 5,154 | 57,405 | 67,629 | |||
Subsidiary Issuer / Guarantor | Reportable Legal Entities | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Net Cash Provided By (Used In) Operating Activities: | 509,405 | 334,433 | 440,203 | |||
Cash Flows From Investing Activities: | ||||||
Net payments to affiliates | (91,515) | (103,254) | (28,927) | |||
Additions to property and equipment, including pre-delivery deposits | (470,970) | (336,820) | (165,710) | |||
Proceeds from purchase assignment and leaseback transactions | 87,000 | 33,000 | 31,851 | |||
Proceeds from disposition of property and equipment | 46,714 | 941 | 15 | |||
Purchases of investments | (210,836) | (231,393) | (260,987) | |||
Sales of investments | 247,423 | 244,261 | 253,855 | |||
Net cash used in investing activities | (392,184) | (393,265) | (169,903) | |||
Cash Flows From Financing Activities: | ||||||
Long-term borrowings | 86,500 | |||||
Repayments of long-term debt and capital lease obligations | (68,233) | (61,486) | (214,025) | |||
Dividend payments | 0 | 0 | ||||
Repurchases and conversion of convertible notes | 0 | |||||
Repurchases of common stock | 0 | 0 | 0 | |||
Debt issuance costs | (3,350) | (188) | (1,653) | |||
Net payments from affiliates | 0 | 0 | 0 | |||
Other | (3,720) | (7,618) | (8,043) | |||
Net cash used in financing activities | 11,197 | (69,292) | (223,721) | |||
Net increase (decrease) in cash and cash equivalents | 128,418 | (128,124) | 46,579 | |||
Cash, cash equivalents, and restricted cash—Beginning of Year | 126,861 | 254,985 | 208,406 | |||
Cash, cash equivalents, and restricted cash—End of Year | 255,279 | 126,861 | 254,985 | |||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Net Cash Provided By (Used In) Operating Activities: | 1,876 | 1,505 | 1,795 | |||
Cash Flows From Investing Activities: | ||||||
Net payments to affiliates | 0 | 0 | 0 | |||
Additions to property and equipment, including pre-delivery deposits | (15,807) | (4,695) | (13,128) | |||
Proceeds from purchase assignment and leaseback transactions | 0 | 0 | 0 | |||
Proceeds from disposition of property and equipment | 0 | 0 | 1 | |||
Purchases of investments | 0 | 0 | 0 | |||
Sales of investments | 0 | 0 | 0 | |||
Net cash used in investing activities | (15,807) | (4,695) | (13,127) | |||
Cash Flows From Financing Activities: | ||||||
Long-term borrowings | 0 | |||||
Repayments of long-term debt and capital lease obligations | (12) | 0 | 0 | |||
Dividend payments | 0 | 0 | ||||
Repurchases and conversion of convertible notes | 0 | |||||
Repurchases of common stock | 0 | 0 | 0 | |||
Debt issuance costs | 0 | 0 | 0 | |||
Net payments from affiliates | 14,400 | 2,500 | 11,033 | |||
Other | 0 | 0 | 0 | |||
Net cash used in financing activities | 14,388 | 2,500 | 11,033 | |||
Net increase (decrease) in cash and cash equivalents | 457 | (690) | (299) | |||
Cash, cash equivalents, and restricted cash—Beginning of Year | 7,687 | 8,377 | 8,676 | |||
Cash, cash equivalents, and restricted cash—End of Year | $ 8,144 | $ 7,687 | $ 8,377 | |||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Supplemental Financial Inform_3
Supplemental Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
Aug. 31, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Total operating revenue | $ 697,465 | $ 759,087 | $ 715,447 | $ 665,412 | $ 682,604 | [1] | $ 716,216 | [1] | $ 670,116 | $ 606,209 | $ 2,837,411 | $ 2,675,145 | [2] | $ 2,432,413 | [2] | ||||
Operating income | 69,349 | 115,826 | 92,928 | 36,265 | 96,166 | [1] | 169,002 | [1] | 136,840 | 62,030 | 314,368 | 464,038 | [2] | 397,487 | [2] | ||||
Nonoperating income (loss) | (27,830) | 931 | 12,859 | 830 | 9,899 | [1] | (54,113) | [1] | (13,191) | (15,813) | (13,210) | (73,217) | [2] | (36,268) | [2] | ||||
Net income | $ 31,636 | $ 93,542 | $ 79,480 | $ 28,542 | $ 148,448 | [1] | $ 71,622 | [1] | $ 76,894 | $ 33,645 | $ 233,200 | $ 330,610 | [2],[3],[4] | $ 224,120 | [2],[3],[4] | ||||
Net Income Per Common Stock Share: | |||||||||||||||||||
Basic (in dollars per share) | $ 0.65 | $ 1.85 | $ 1.57 | $ 0.56 | $ 2.86 | [1] | $ 1.35 | [1] | $ 1.43 | $ 0.63 | $ 4.63 | $ 6.23 | [2] | $ 4.19 | [2] | ||||
Diluted (in dollars per share) | $ 0.64 | $ 1.84 | $ 1.56 | $ 0.56 | $ 2.84 | [1] | $ 1.34 | [1] | $ 1.43 | $ 0.62 | $ 4.62 | $ 6.19 | [2] | $ 4.15 | [2] | ||||
Settlement and curtailment loss | $ 0 | $ 10,384 | $ 0 | ||||||||||||||||
Health Retirement Account And Post-65 Medical Plan | |||||||||||||||||||
Net Income Per Common Stock Share: | |||||||||||||||||||
Settlement and curtailment loss | $ 10,400 | $ 15,000 | $ 10,400 | ||||||||||||||||
Other | |||||||||||||||||||
Net Income Per Common Stock Share: | |||||||||||||||||||
Settlement and curtailment loss | $ (4,600) | $ 0 | $ 10,384 | $ 0 | |||||||||||||||
[1] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||||
[2] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||||
[3] | Amounts adjusted for the adoption of ASC No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. | ||||||||||||||||||
[4] | Amounts adjusted for the adoption of Accounting Standards Codification (ASC) No. 606, Revenue from Contracts with Customers. See Note 1 to Consolidated Financial Statements for additional information. |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 12 | $ 34 | $ 166 |
Charged to Costs and Expenses | 1,527 | 1,810 | 2,896 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (1,485) | (1,832) | (3,028) |
Balance at End of Year | 54 | 12 | 34 |
Allowance for Obsolescence of Flight Equipment Expendable Parts and Supplies | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 21,446 | 17,358 | 16,454 |
Charged to Costs and Expenses | 5,463 | 6,276 | 3,301 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (4,321) | (2,188) | (2,397) |
Balance at End of Year | 22,588 | 21,446 | 17,358 |
Valuation Allowance on Deferred Tax Assets | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 2,547 | 1,992 | 3,912 |
Charged to Costs and Expenses | 0 | 555 | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | (1,920) |
Balance at End of Year | $ 2,547 | $ 2,547 | $ 1,992 |
Uncategorized Items - ha-201812
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (76,074,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (12,510,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (76,074,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 12,510,000 |