Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 17, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | SPIRIT AIRLINES, INC. | |
Entity Central Index Key | 1,498,710 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 72,911,853 |
Condensed Statements Of Operati
Condensed Statements Of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating revenues: | ||||
Passenger | $ 308,573 | $ 302,487 | $ 582,039 | $ 556,365 |
Non-ticket | 244,848 | 196,850 | 464,737 | 380,959 |
Total operating revenues | 553,421 | 499,337 | 1,046,776 | 937,324 |
Operating expenses: | ||||
Aircraft fuel | 127,907 | 154,852 | 240,333 | 303,323 |
Salaries, wages and benefits | 97,037 | 77,440 | 186,094 | 153,689 |
Aircraft rent | 53,127 | 48,222 | 105,915 | 94,609 |
Landing fees and other rents | 33,364 | 25,831 | 63,910 | 49,847 |
Distribution | 22,349 | 20,159 | 42,846 | 38,728 |
Maintenance, materials and repairs | 21,271 | 19,205 | 40,431 | 36,819 |
Depreciation and amortization | 17,139 | 11,344 | 32,002 | 22,465 |
Other operating | 58,173 | 36,408 | 101,920 | 71,856 |
Loss on disposal of assets | 415 | 715 | 1,010 | 865 |
Special charges | 324 | 17 | 749 | 26 |
Total operating expenses | 431,106 | 394,193 | 815,210 | 772,227 |
Operating income | 122,315 | 105,144 | 231,566 | 165,097 |
Other (income) expense: | ||||
Interest expense | 4,419 | 103 | 7,231 | 210 |
Capitalized interest | (2,829) | (103) | (5,362) | (210) |
Interest income | (177) | (83) | (311) | (151) |
Other expense | 44 | 1,439 | 116 | 1,476 |
Total other (income) expense | 1,457 | 1,356 | 1,674 | 1,325 |
Income before income taxes | 120,858 | 103,788 | 229,892 | 163,772 |
Provision for income taxes | 44,154 | 38,939 | 84,186 | 61,217 |
Net income | $ 76,704 | $ 64,849 | $ 145,706 | $ 102,555 |
Basic earnings per share (in dollars per share) | $ 1.06 | $ 0.89 | $ 2 | $ 1.41 |
Diluted earnings per share (in dollars per share) | $ 1.05 | $ 0.88 | $ 1.99 | $ 1.40 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 76,704 | $ 64,849 | $ 145,706 | $ 102,555 |
Unrealized gain (loss) on interest rate derivative instruments, net of deferred taxes of $749, $0, ($191) and $0 | 1,238 | 0 | (356) | 0 |
Other comprehensive income (loss) | 1,238 | 0 | (356) | 0 |
Comprehensive income | $ 77,942 | $ 64,849 | $ 145,350 | $ 102,555 |
Condensed Statements of Compre4
Condensed Statements of Comprehensive Income (Parenthetical) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain (loss) on interest rate derivative instruments, tax | $ 749 | $ 0 | $ (191) | $ 0 |
Condensed Balance Sheets (unaud
Condensed Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 769,324 | $ 632,784 |
Accounts receivable, net | 30,856 | 22,685 |
Deferred income taxes | 9,643 | 9,643 |
Prepaid expenses and other current assets | 62,088 | 66,029 |
Total current assets | 871,911 | 731,141 |
Property and equipment: | ||
Flight equipment | 549,517 | 204,462 |
Ground and other equipment | 66,290 | 57,012 |
Less accumulated depreciation | (47,219) | (36,099) |
Total property and equipment | 568,588 | 225,375 |
Deposits on flight equipment purchase contracts | 267,344 | 242,881 |
Aircraft maintenance deposits | 217,932 | 213,147 |
Deferred heavy maintenance, net | 108,051 | 123,108 |
Other long-term assets | 71,511 | 66,744 |
Total assets | 2,105,337 | 1,602,396 |
Current liabilities: | ||
Accounts payable | 21,751 | 13,402 |
Air traffic liability | 270,185 | 188,870 |
Current maturities of long-term debt | 29,676 | 10,431 |
Other current liabilities | 207,879 | 152,921 |
Total current liabilities | 529,491 | 365,624 |
Long-term debt, less current maturities | 398,975 | 135,232 |
Long-term deferred income taxes | 76,378 | 76,010 |
Deferred gains and other long-term liabilities | 18,213 | 22,455 |
Shareholders’ equity: | ||
Common stock | 7 | 7 |
Additional paid-in-capital | 539,443 | 526,173 |
Treasury stock, at cost | (83,336) | (3,921) |
Retained earnings | 627,240 | 481,534 |
Accumulated other comprehensive loss | (1,074) | (718) |
Total shareholders’ equity | 1,082,280 | 1,003,075 |
Total liabilities and shareholders’ equity | $ 2,105,337 | $ 1,602,396 |
Condensed Statements Of Cash Fl
Condensed Statements Of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income | $ 145,706 | $ 102,555 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Unrealized (gains) losses on open fuel derivative contracts, net | 4,257 | 0 |
Equity-based compensation, net | 4,743 | 3,872 |
Allowance for doubtful accounts (recoveries) | 8 | (33) |
Amortization of deferred gains and losses | 397 | (178) |
Depreciation and amortization | 32,002 | 22,465 |
Deferred income tax expense (benefit) | 559 | (395) |
Loss on disposal of assets | 1,010 | 865 |
Capitalized interest | (5,362) | (210) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,137) | (14,188) |
Prepaid maintenance reserves | (4,621) | (14,286) |
Long-term deposits and other assets | (10,930) | (27,020) |
Accounts payable | 7,856 | (1,462) |
Air traffic liability | 90,056 | 64,331 |
Other liabilities | 39,327 | 7,819 |
Net cash provided by operating activities | 296,871 | 144,135 |
Investing activities: | ||
Pre-delivery deposits for flight equipment, net of refunds | (70,971) | (94,009) |
Purchase of property and equipment | (308,163) | (7,430) |
Net cash used in investing activities | (379,134) | (101,439) |
Financing activities: | ||
Proceeds from issuance of long-term debt | 296,000 | 0 |
Proceeds from stock options exercised | 23 | 63 |
Payments on debt and capital lease obligations | (8,940) | (511) |
Sale Leaseback Transaction, Gross Proceeds, Financing Activities | 7,300 | 0 |
Payments to pre-IPO shareholders pursuant to tax receivable agreement | 0 | (5,643) |
Excess tax benefits from equity-based compensation | 8,504 | 1,225 |
Repurchase of common stock | (79,415) | (1,222) |
Debt issuance costs | (4,669) | 0 |
Net cash provided by financing activities | 218,803 | (6,088) |
Net increase in cash and cash equivalents | 136,540 | 36,608 |
Cash and cash equivalents at beginning of period | 632,784 | 530,631 |
Cash and cash equivalents at end of period | 769,324 | 567,239 |
Cash payments for: | ||
Interest (net of capitalized interest) | 1,758 | 326 |
Taxes | $ 54,198 | $ 52,093 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements include the accounts of Spirit Airlines, Inc. (the Company). These unaudited condensed financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the financial position, results of operations and cash flows of the Company for the respective periods presented. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements of the Company and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The interim results reflected in the unaudited condensed financial statements are not necessarily indicative of the results that may be expected for other interim periods or for the full year. Certain prior period amounts have been reclassified to conform to the current year's presentation. |
Recent Accounting Developments
Recent Accounting Developments | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Developments | Recent Accounting Developments In May 2014, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2014-09, (ASU 2014-09), "Revenue from Contracts with Customers." The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the new guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract's performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. The new guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2017 for public companies. Early adoption is not permitted. Entities have the option of using either a full retrospective or modified approach to adopt ASU 2014-09. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements nor decided upon the planned method of adoption. While the Company is still evaluating the impact, it expects the accounting for its frequent flier program and certain ancillary fees to be impacted by the adoption of the standard. In April 2015, the FASB issued ASU 2015-03, "Interest-Imputation of Interest." The standard requires debt issuance costs to be presented on the balance sheet as a direct deduction from the related debt liability rather than as an asset. Once adopted, entities are required to apply the new guidance retrospectively to all prior periods presented. ASU 2015-03 is effective for annual periods ending after December 15, 2015, and interim periods within those fiscal years and early application is permitted. The Company has elected to early adopt the standard, effective January 1, 2015. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Numerator Net income $ 76,704 $ 64,849 $ 145,706 $ 102,555 Denominator Weighted-average shares outstanding, basic 72,518 72,740 72,784 72,712 Effect of dilutive stock awards 283 554 299 562 Adjusted weighted-average shares outstanding, diluted 72,801 73,294 73,083 73,274 Net income per share Basic earnings per common share $ 1.06 $ 0.89 $ 2.00 $ 1.41 Diluted earnings per common share $ 1.05 $ 0.88 $ 1.99 $ 1.40 Anti-dilutive weighted-average shares 56 57 42 56 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Other current liabilities as of June 30, 2015 and December 31, 2014 consist of the following: June 30, 2015 December 31, 2014 (in thousands) Federal excise and other passenger taxes and fees payable $ 48,557 $ 42,628 Salaries and wages 34,549 34,209 Airport expenses 27,086 21,726 Federal and state income tax payable 24,944 3,286 Aircraft and facility lease obligations 20,485 10,089 Aircraft maintenance 17,604 16,127 Fuel 12,006 9,508 Other 22,648 15,348 Other current liabilities $ 207,879 $ 152,921 |
Financial Instruments and Risk
Financial Instruments and Risk Management | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management As part of the Company’s risk management program, the Company from time to time may use a variety of financial instruments to reduce its exposure to fluctuations in the price of jet fuel and interest rates. The Company does not hold or issue derivative financial instruments for trading purposes. The Company is exposed to credit losses in the event of nonperformance by counterparties to these financial instruments. The Company periodically reviews and seeks to mitigate exposure to the financial deterioration and nonperformance of any counterparty by monitoring the absolute exposure levels, each counterparty's credit ratings, and the historical performance of the counterparties relating to derivative transactions. The credit exposure related to these financial instruments is limited to the fair value of contracts in a net receivable position at the reporting date. The Company also maintains security agreements that require the Company to post collateral if the value of selected instruments falls below specified mark-to-market thresholds. As of June 30, 2015 , the Company did not hold any derivatives with requirements to post collateral. The Company records financial derivative instruments at fair value, which includes an evaluation of each counterparty's credit risk. Fuel Derivative Instruments The Company's fuel derivative contracts generally consist of United States Gulf Coast jet fuel swaps (jet fuel swaps) and United States Gulf Coast jet fuel options (jet fuel options). Both jet fuel swaps and jet fuel options are used at times to protect the refining price risk between the price of crude oil and the price of refined jet fuel, and to manage the risk of increasing fuel prices. Fair value of the instruments is determined using standard option valuation models. The Company accounts for its fuel derivative contracts at fair value and recognizes them in the balance sheet in prepaid expenses and other current assets or other current liabilities. The Company did not elect hedge accounting on any fuel derivative instruments entered into during the three and six months ended June 30, 2015 and 2014 and, as a result, changes in the fair value of these fuel derivative contracts are recorded in aircraft fuel expense. During the three months ended June 30, 2015, the Company did not acquire any jet fuel options. During the six months ended June 30, 2015 , the Company paid $2.1 million in premiums to acquire jet fuel options. The following table summarizes the components of aircraft fuel expense for the three and six months ended June 30, 2015 and 2014 : Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Into-plane fuel cost $ 127,344 $ 154,385 $ 235,468 $ 302,856 Realized losses (gains) related to fuel derivative contracts, net 4,232 — 6,839 — Unrealized losses (gains) related to fuel derivative contracts (3,669 ) 467 (1,974 ) 467 Aircraft fuel $ 127,907 $ 154,852 $ 240,333 $ 303,323 Premiums and settlements received or paid on fuel derivative contracts are reflected in the accompanying statements of cash flows in net cash provided by operating activities. As of June 30, 2015 , the Company had fuel derivatives consisting of jet fuel options with refined products as the underlying commodities designed to protect 25.5 million gallons, or approximately 19% of its remaining 2015 anticipated jet fuel consumption, at a weighted-average ceiling price of $1.93 per gallon. As of December 31, 2014 , the Company had fuel derivatives consisting of jet fuel options with refined products as the underlying commodities designed to protect 88.7 million gallons, or approximately 35% of its 2015 anticipated jet fuel consumption, at a weighted-average ceiling price of $2.07 per gallon. Interest Rate Swaps As of June 30, 2015 , the Company had six forward interest rate swaps with a total notional amount of $120 million . These interest rate swaps fix the benchmark interest rate component of the forecasted interest payments on the debt related to three Airbus A321 aircraft with expected delivery dates ranging from July 2015 to September 2015. These instruments limit the Company's exposure to changes in the benchmark interest rate in the period from the trade date through the date of maturity, ranging from July 2015 to September 2015. The interest rate swaps are designated as cash flow hedges. The Company accounts for these interest rate swaps at fair value and recognizes them in the balance sheet in prepaid expenses and other current assets or other current liabilities with changes in fair value recorded within accumulated other comprehensive income (AOCI). Realized gains and losses from cash flow hedges are recorded in the statement of cash flows as a component of cash flows from operating activities. For the three and six months ended June 30, 2015 , an unrealized gain of $1.2 million and an unrealized loss of $0.4 million , net of deferred taxes of $0.7 million and $0.2 million , respectively, were recorded within AOCI related to these instruments. As of June 30, 2015 , the interest rate swaps were recorded as a liability of approximately $1.7 million . As of December 31, 2014 , the interest rate swaps were recorded as a liability of approximately $1.1 million . During the three and six months ended June 30, 2015 , the Company recorded no ineffectiveness associated with the Company's interest rate cash flow hedges. The Company expects the swaps will be highly effective in offsetting changes in cash flows attributable to the hedged risk. However, given that there may be some uncertainty regarding the exact date on which the Company will issue its fixed-rate debt, the Company will evaluate the effect of such uncertainty on the effectiveness of the hedging relationship designated for each reporting period. Any ineffectiveness will be recorded within other non-operating expense in the Company's statement of operations. Subsequent to the issuance of each debt instrument, amounts remaining in AOCI will be amortized over the life of the fixed-rate debt instrument. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Aircraft-Related Commitments and Financing Arrangements The Company’s contractual purchase commitments consist primarily of aircraft and engine acquisitions through manufacturers and aircraft leasing companies. As of June 30, 2015 , the Company's aircraft orders consisted of the following: Airbus Third-Party Lessor A320 A320NEO A321 A321NEO A320NEO Total remainder of 2015 6 1 7 2016 3 9 4 16 2017 8 10 18 2018 2 6 5 13 2019 3 10 13 2020 13 13 2021 18 18 13 40 30 10 5 98 The Company also has four spare engine orders for V2500 SelectOne engines with International Aero Engines (IAE) and nine spare engine orders for PurePower PW1100G-JM engines with Pratt & Whitney. Spare engines are scheduled for delivery from 2017 through 2023 . Purchase commitments for these aircraft and spare engines, including estimated amounts for contractual price escalations and pre-delivery payments, are estimated to be approximately $285 million for the remainder of 2015 , $597 million in 2016 , $763 million in 2017 , $618 million in 2018 , $701 million in 2019 , and $1,515 million in 2020 and beyond . The Company has secured debt financing commitments of $120 million with third parties for three of the six remaining aircraft deliveries from Airbus scheduled for delivery in 2015. In addition, the Company has secured financing for five aircraft to be leased directly from a third party, scheduled for delivery in 2015 and 2016. The Company does not have financing commitments in place for the remaining 90 Airbus firm aircraft orders scheduled for delivery between the fourth quarter of 2015 through 2021, including 9 scheduled for delivery in the next twelve months. As of June 30, 2015 , the Company had a fleet consisting of 73 A320 family aircraft. During the six months ended June 30, 2015 , the Company took delivery of eight aircraft financed under debt arrangements. These aircraft are capitalized within flight equipment with depreciable lives of 25 years and estimated residual values of 10% . As of June 30, 2015 , the Company had 61 aircraft and 11 spare engines financed under operating leases with lease term expiration dates ranging from 2016 to 2027. The Company entered into sale and leaseback transactions with third-party aircraft lessors for the majority of these aircraft and engine leases. Deferred losses resulting from these sale and leaseback transactions are included in other long-term assets on the accompanying balance sheet. Deferred losses are recognized as an increase to rent expense on a straight-line basis over the term of the respective operating leases. Deferred gains are included in deferred credits and other long-term liabilities on the accompanying balance sheet. Deferred gains are recognized as a decrease to rent expense on a straight-line basis over the term of the respective operating leases. Under the terms of the lease agreements, the Company will continue to operate and maintain the aircraft. Payments under the majority of the lease agreements are fixed for the term of the lease. The lease agreements contain standard termination events, including termination upon a breach of the Company's obligations to make rental payments and upon any other material breach of the Company's obligations under the leases, and standard maintenance and return condition provisions. These return provisions are evaluated at inception of the lease and throughout the lease terms and are accounted for as supplemental rent expense when it is probable that such amounts will be incurred. Upon a termination of the lease due to a breach by the Company, the Company would be liable for standard contractual damages, possibly including damages suffered by the lessor in connection with remarketing the aircraft or while the aircraft is not leased to another party. The Company has an agreement for the lease of two quick engine change kits, classified as capital leases. Payments under the lease agreement are fixed for the three -year term of the lease, which began in the fourth quarter of 2013. Future minimum lease payments under capital leases and noncancellable operating leases with initial or remaining terms in excess of one year at June 30, 2015 were as follows: Operating Leases Capital Leases Aircraft and Spare Engine Leases Property Facility Leases Operating Lease Obligations (in thousands) remainder of 2015 $ 722 $ 107,632 $ 16,605 $ 124,237 2016 1,044 213,120 27,063 240,183 2017 44 196,610 27,445 224,055 2018 44 172,885 27,422 200,307 2019 12 144,774 25,073 169,847 2020 and thereafter — 596,581 78,210 674,791 Total minimum lease payments $ 1,866 $ 1,431,602 $ 201,818 $ 1,633,420 Less amount representing interest $ 114 Present value of minimum lease payments $ 1,752 Less current portion $ 1,249 Long-term portion $ 503 Aircraft rent expense consists of monthly lease rents for aircraft and spare engines under the terms of the related operating leases and is recognized on a straight-line basis. Aircraft rent expense also includes supplemental rent. Supplemental rent is made up of maintenance reserves paid or to be paid to aircraft lessors in advance of the performance of major maintenance activities that are not probable of being reimbursed, as well as lease return condition obligations which the Company begins to accrue when they are probable and can be estimated. The Company expects supplemental rent to increase as individual aircraft lease agreements approach their respective termination dates and the Company begins to accrue the estimated cost of return conditions for the corresponding aircraft. Some of the Company’s master lease agreements provide that the Company pays maintenance reserves to aircraft lessors to be held as collateral in advance of the Company’s required performance of major maintenance activities. Maintenance reserve payments are either contractually fixed or utilization based amounts. Fixed maintenance reserve payments for these aircraft and related flight equipment, including estimated amounts for contractual price escalations, will be approximately $3.8 million for the remainder of 2015 , $8.0 million in 2016 , $7.4 million in 2017 , $5.8 million in 2018 , $4.2 million in 2019 , and $14.1 million in 2020 and beyond . Some of these lease agreements that provide maintenance reserves are reimbursable to the Company upon completion of the maintenance event in an amount equal to either (1) the amount of the maintenance reserve held by the lessor associated with the specific maintenance event or (2) the qualifying costs related to the specific maintenance event. Substantially all of these maintenance reserve payments are calculated based on a utilization measure, such as flight hours or cycles, and are used solely to collateralize the lessor for maintenance time run off the aircraft until the completion of the maintenance of the aircraft. Some of the master lease agreements provide that the Company will receive full reimbursement of the maintenance reserves at the final respective maintenance event, or do not require that the Company pay maintenance reserves so long as the Company's cash balance does not fall below a certain level. As of June 30, 3015, the Company was in full compliance with those requirements and does not anticipate having to pay reserves related to these master leases in the future. The Company is contractually obligated to pay the following minimum guaranteed payments for its reservation system and advertising media as of June 30, 2015 : $2.9 million for the remainder of 2015 , $3.9 million in 2016 , $3.9 million in 2017 , $2.6 million in 2018 , none in 2019 , and none in 2020 and thereafter . The Company's current agreement for its reservation system expires in 2018. Litigation The Company is subject to commercial litigation claims and to administrative and regulatory proceedings and reviews that may be asserted or maintained from time to time. The Company believes the ultimate outcome of such lawsuits, proceedings and reviews will not, individually or in the aggregate, have a material adverse effect on its financial position, liquidity or results of operations. In August 2014, two cases (entitled Rosen v. Spirit Airlines and Legg v. Spirit Airlines) were filed against the Company in federal court in Illinois and Florida, respectively. The Rosen case has now been transferred to Florida. The cases, which contain identical claims, allege violations of the Fair and Accurate Credit Transactions Act (FACTA) based on incidents of unlawfully including more information on the electronically printed credit card receipts provided to customers from our airport kiosk machines than FACTA permits. Both cases are styled as class actions and the Legg case has been certified. The plaintiffs seek statutory damages, attorney’s fees, litigation expenses and costs. The Company believes it has valid arguments in its defense and intends to vigorously defend against these claims. The Company believes the estimate of probable losses is not material; however, the outcome of any litigation is inherently uncertain and any resolution may differ materially and could have a material adverse effect on the Company’s business and its financial position. Credit Card Processing Arrangements The Company has agreements with organizations that process credit card transactions arising from the purchase of air travel, baggage charges, and other ancillary services by customers. As it is standard in the airline industry, the Company's contractual arrangements with credit card processors permit them, under certain circumstances, to retain a holdback or other collateral, which the Company records as restricted cash, when future air travel and other future services are purchased via credit card transactions. The required holdback is the percentage of the Company's overall credit card sales its credit card processors hold to cover refunds to customers if the Company fails to fulfill its flight obligations. If the Company fails to satisfy certain liquidity and other financial covenants, the processing agreements provide the processors the right to require the Company to maintain cash collateral up to 100% of the Company's air traffic liability, which would result in a commensurate reduction of unrestricted cash. As of June 30, 2015 and December 31, 2014 , the Company continued to be in compliance with its credit card processing agreements and liquidity and other financial covenant requirements, and the processors were holding back no remittances. The maximum potential exposure to cash holdbacks by the Company's credit card processors, based upon advance ticket sales and $9 Fare Club memberships as of June 30, 2015 and December 31, 2014 , was $314.1 million and $217.1 million , respectively. Employees Approximately 72% of the Company’s employees are covered under collective bargaining agreements. The table below sets forth the Company's employee groups and status of the collective bargaining agreements as of June 30, 2015 . Employee Groups Representative Amendable Date Percentage of Workforce Pilots Air Line Pilots Association, International (ALPA) August 2015 27% Flight Attendants Association of Flight Attendants (AFA-CWA) August 2007 40% Dispatchers Transport Workers Union (TWU) August 2018 1% Ramp Service Agents International Association of Machinists and Aerospace Workers (IAMAW) June 2020 4% In August 2014, under the supervision of the National Mediation Board (NMB), the Company and AFA-CWA reached a tentative agreement for a five -year contract with the Company's flight attendants. The tentative agreement was subject to ratification by the flight attendant membership. On October 1, 2014, the Company was notified that the flight attendants voted not to ratify the tentative agreement. The Company will continue to work together with the AFA-CWA and the NMB with a goal of reaching a mutually beneficial agreement. On July 8, 2014, certain ramp service agents directly employed by the Company voted to be represented by the International Association of Machinists and Aerospace Workers (IAMAW). In May 2015, we entered into a five -year interim collective bargaining agreement with the IAMAW, including material economic terms, and we are continuing the process of negotiating a final collective bargaining agreement with the IAMAW. Currently, ramp service agents represented by the IAMAW service 1 of the 57 airports where the Company operates. The Company is self-insured for health care claims, up to a stop loss amount for eligible participating employees and qualified dependent medical claims, subject to deductibles and limitations. The Company’s liabilities for claims incurred but not reported are determined based on an estimate of the ultimate aggregate liability for claims incurred. The estimate is calculated from actual claim rates and adjusted periodically as necessary. The Company has accrued $3.3 million and $3.1 million in health care claims as of June 30, 2015 and December 31, 2014 , respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Under ASC 820, Fair Value Measurements and Disclosures , disclosures are required about how fair value is determined for assets and liabilities, and a hierarchy for which these assets and liabilities must be grouped is established, based on significant levels of inputs, as follows: Level 1 —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 of the assets or liabilities. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes several valuation techniques in order to assess the fair value of the Company’s financial assets and liabilities. Fuel Derivative Instruments The Company’s fuel derivative contracts generally consist of jet fuel swaps and jet fuel options. These instruments are valued using energy and commodity market data, which is derived by combining raw inputs with quantitative models and processes to generate forward curves and volatilities. The Company utilizes the market approach to measure fair value for its fuel derivative instruments. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company did not elect hedge accounting on any of the fuel derivative instruments. As a result, the Company records the fair value adjustment of its fuel derivatives in the accompanying statement of operations within aircraft fuel and on the balance sheet within prepaid expenses and other current assets or other current liabilities, depending on whether the net fair value of the derivatives is on an asset or liability position as of the respective date. Fair values of the fuel derivative instruments are determined using standard option valuation models. The Company also considers counterparty risk and its own credit risk in its determination of all estimated fair values. The Company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement. The Company determines fair value of jet fuel options utilizing an option pricing model based on inputs that are either readily available in public markets or can be derived from information available in publicly quoted markets. The Company has consistently applied these valuation techniques in all periods presented and believes it has obtained the most accurate information available for the types of derivative contracts it holds. The fair value of the Company's jet fuel swaps are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, the Company categorizes these instruments as Level 2. As of June 30, 2015 and December 31, 2014 , the Company had no outstanding jet fuel swaps. Due to the fact that certain inputs utilized to determine the fair value of jet fuel options are unobservable (principally implied volatility), the Company categorizes these derivatives as Level 3. Implied volatility of a jet fuel option is the volatility of the price of the underlying commodity that is implied by the market price of the option based on an option pricing model. Thus, it is the volatility that when used in a particular pricing model yields a theoretical value for the option equal to the current market price of that option. Implied volatility, a forward-looking measure, differs from historical volatility because the latter is calculated from known past returns. At each balance sheet date, the Company substantiates and adjusts unobservable inputs. The Company routinely assesses the valuation model's sensitivity to changes in implied volatility. Based on the Company's assessment of the valuation model's sensitivity to changes in implied volatility, it concluded that holding other inputs constant, a significant increase (decrease) in implied volatility would result in a significantly higher (lower) fair value measurement for the Company's aircraft fuel derivatives. Interest Rate Swaps During the fourth quarter of 2014, the Company entered into forward interest rate swaps designed to fix the benchmark interest rate component of the forecasted interest payments on the debt related to three aircraft anticipated to be delivered in 2015. The fair value of the Company's interest rate swaps are based on observable inputs for active swap indications in quoted markets for similar terms. The fair value of these instruments are determined using a market approach based on inputs that are readily available from public markets; therefore, the Company categorizes these instruments as Level 2. The interest rate swaps are designated as cash flow hedges and, as a result, the changes in fair value of these derivatives are recorded in accumulated other comprehensive income within the balance sheet and statement of other comprehensive income. Long-Term Debt The estimated fair value of the Company's non-publicly held debt agreements has been determined to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes a discounted cash flow method to estimate the fair value of long-term debt and has categorized these instruments as Level 3. The carrying amounts and estimated fair values of our long-term debt at June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Senior long-term debt $ 387.2 $ 377.8 $ 132.0 $ 132.0 Junior long-term debt 48.6 48.7 16.0 16.1 Total long-term debt $ 435.8 $ 426.5 $ 148.0 $ 148.1 Cash and Cash Equivalents Cash and cash equivalents at June 30, 2015 and December 31, 2014 are comprised of liquid money market funds and cash, and are categorized as Level 1 instruments. The Company maintains cash with various high-quality financial institutions. Assets and liabilities measured at gross fair value on a recurring basis are summarized below: Fair Value Measurements as of June 30, 2015 Total Level Level Level (in millions) Cash and cash equivalents $ 769.3 $ 769.3 $ — $ — Jet fuel options 1.5 — — 1.5 Total assets $ 770.8 $ 769.3 $ — $ 1.5 Interest rate swaps $ 1.7 $ — $ 1.7 $ — Total liabilities $ 1.7 $ — $ 1.7 $ — Fair Value Measurements as of December 31, 2014 Total Level Level Level (in millions) Cash and cash equivalents $ 632.8 $ 632.8 $ — $ — Jet fuel options 4.8 — — 4.8 Total assets $ 637.6 $ 632.8 $ — $ 4.8 Interest rate swaps $ 1.1 $ — $ 1.1 $ — Total liabilities $ 1.1 $ — $ 1.1 $ — The Company had no transfers of assets or liabilities between any of the above levels during the periods ended June 30, 2015 and December 31, 2014 . The Company's Valuation Group is made up of individuals from the Company's Treasury and Corporate Accounting departments. The Valuation Group is responsible for the Company's valuation policies, procedures and execution thereof. The Company's Valuation Group reports to the Company's Chief Financial Officer and seeks approval for certain derivative transactions from the Audit Committee. The Valuation Group compares the results of the Company's internally developed valuation methods with counterparty reports at each balance sheet date and assesses the Company's valuation methods for accurateness and identifies any needs for modification. The following tables present the Company's activity for assets and liabilities measured at gross fair value on a recurring basis using significant unobservable inputs (Level 3): Jet Fuel Option Activity for the Three Months Ended June 30, 2015 (in millions) Balance at March 31, 2015 $ 2.5 Total realized or unrealized gains (losses) included in earnings, net (0.6 ) Purchases — Sales — Settlements, net (0.4 ) Balance at June 30, 2015 $ 1.5 Jet Fuel Option Activity for the Six Months Ended June 30, 2015 (in millions) Balance at December 31, 2014 $ 4.8 Total realized or unrealized gains (losses) included in earnings, net (4.9 ) Purchases 2.1 Sales — Settlements, net (0.5 ) Balance at June 30, 2015 $ 1.5 |
Long-term Debt Long-term Debt
Long-term Debt Long-term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt On October 1, 2014, the Company entered into a Framework Agreement with a bank syndicate which provides up to $379 million of debt financing for seven Airbus A320 aircraft and three Airbus A321 aircraft. Each loan extended under the Framework Agreement is funded on or near the delivery date of each aircraft and is secured by a first-priority security interest on the individual aircraft. Each loan amortizes on a mortgage-style basis, which requires quarterly payments, with senior loans having a 12 -year term and junior loans having a 7 -year term. The loans require interest payments quarterly on a floating or fixed rate basis, at the Company's election. As of June 30, 2015 , the Company has taken delivery of seven Airbus A320 aircraft financed through the Framework Agreement and recorded fixed-rate debt of $259 million . The remaining three Airbus A321 aircraft are scheduled for delivery under the Company's existing purchase agreement with Airbus between July 2015 and September 2015. On February 24, 2015, the Company entered into two Facility Agreements, which provided up to $185 million of debt financing for five Airbus A320 aircraft. Each loan extended under the Facility Agreements was funded on or near the delivery date of each aircraft and was secured by a first-priority security interest on the individual aircraft. Each loan amortizes on a mortgage-style basis, which requires quarterly payments, with senior loans having a 12 -year term and junior loans having a 7 -year term. The loans require interest payments quarterly on a floating or fixed rate basis, at the Company's election. As of June 30, 2015 , the Company took delivery of all five Airbus A320 aircraft financed through the Facility Agreements and recorded fixed-rate debt of $185 million . Long-term debt is comprised of the following: As of Three Months Ended June 30, Six Months Ended June 30, June 30, 2015 December 31, 2014 2015 2014 2015 2014 (in millions) (weighted-average interest rates) Senior term loans due through 2026 - 2027 $ 387.2 $ 132.0 4.04 % N/A 4.04 % N/A Junior term loans due through 2021 - 2022 48.6 16.0 6.89 % N/A 6.89 % N/A Long-term debt $ 435.8 $ 148.0 Less current maturities 29.7 10.4 Less unamortized discounts 7.1 2.4 Total $ 399.0 $ 135.2 During the six months ended June 30, 2015 , the Company made scheduled principal payments of $8.2 million on its outstanding debt obligations. At June 30, 2015 , long-term debt principal payments for the next five years and thereafter are as follows: June 30, 2015 (in millions) remainder of 2015 $ 15.2 2016 31.4 2017 33.0 2018 34.6 2019 36.2 2020 and thereafter 285.4 Total debt principal payments $ 435.8 Interest Expense Interest expense related to debt consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Senior term loans $ 3,426 $ — $ 5,620 $ — Junior term loans 678 — 1,097 — Amortization of debt discounts 230 — 389 — Total $ 4,334 $ — $ 7,106 $ — |
Subsequent Event (Notes)
Subsequent Event (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 9. Subsequent Events In December 2014, the Company filed a request for an advance consent for a change in tax accounting method for its lease payments on certain leased aircraft, effective for its 2014 tax year. The estimated tax impact of this tax accounting method change reduces income tax payable in the amount of $35 million, with a corresponding increase in long-term deferred tax liability. On July 13, 2015, the Company received the advance consent from the Internal Revenue Service for this tax accounting method change and, therefore, has not included the tax impact in the balance sheet as of June 30, 2015. The estimated impact of this tax accounting method change will be included in the balance sheet as of September 30, 2015. Subsequent to June 30, 2015, we have repurchased approximately 180,000 shares for an aggregate of $10.9 million including commissions and fees. On July 10, 2015, the Company took delivery of one A321 aircraft financed through the Framework Agreement and recorded debt of $40.0 million. Refer to Note 8 herein for further discussion of the Company's Framework Agreement. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of accounting | The accompanying unaudited condensed financial statements include the accounts of Spirit Airlines, Inc. (the Company). These unaudited condensed financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the financial position, results of operations and cash flows of the Company for the respective periods presented. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements of the Company and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission. |
Use of estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Recent Accounting Developments | Recent Accounting Developments In May 2014, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2014-09, (ASU 2014-09), "Revenue from Contracts with Customers." The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the new guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract's performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. The new guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2017 for public companies. Early adoption is not permitted. Entities have the option of using either a full retrospective or modified approach to adopt ASU 2014-09. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements nor decided upon the planned method of adoption. While the Company is still evaluating the impact, it expects the accounting for its frequent flier program and certain ancillary fees to be impacted by the adoption of the standard. In April 2015, the FASB issued ASU 2015-03, "Interest-Imputation of Interest." The standard requires debt issuance costs to be presented on the balance sheet as a direct deduction from the related debt liability rather than as an asset. Once adopted, entities are required to apply the new guidance retrospectively to all prior periods presented. ASU 2015-03 is effective for annual periods ending after December 15, 2015, and interim periods within those fiscal years and early application is permitted. The Company has elected to early adopt the standard, effective January 1, 2015. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Numerator Net income $ 76,704 $ 64,849 $ 145,706 $ 102,555 Denominator Weighted-average shares outstanding, basic 72,518 72,740 72,784 72,712 Effect of dilutive stock awards 283 554 299 562 Adjusted weighted-average shares outstanding, diluted 72,801 73,294 73,083 73,274 Net income per share Basic earnings per common share $ 1.06 $ 0.89 $ 2.00 $ 1.41 Diluted earnings per common share $ 1.05 $ 0.88 $ 1.99 $ 1.40 Anti-dilutive weighted-average shares 56 57 42 56 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued liabilities included in other current liabilities | Other current liabilities as of June 30, 2015 and December 31, 2014 consist of the following: June 30, 2015 December 31, 2014 (in thousands) Federal excise and other passenger taxes and fees payable $ 48,557 $ 42,628 Salaries and wages 34,549 34,209 Airport expenses 27,086 21,726 Federal and state income tax payable 24,944 3,286 Aircraft and facility lease obligations 20,485 10,089 Aircraft maintenance 17,604 16,127 Fuel 12,006 9,508 Other 22,648 15,348 Other current liabilities $ 207,879 $ 152,921 |
Financial Instruments and Ris19
Financial Instruments and Risk Management (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Components of aircraft fuel expense | The following table summarizes the components of aircraft fuel expense for the three and six months ended June 30, 2015 and 2014 : Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Into-plane fuel cost $ 127,344 $ 154,385 $ 235,468 $ 302,856 Realized losses (gains) related to fuel derivative contracts, net 4,232 — 6,839 — Unrealized losses (gains) related to fuel derivative contracts (3,669 ) 467 (1,974 ) 467 Aircraft fuel $ 127,907 $ 154,852 $ 240,333 $ 303,323 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Operating Aircraft Leases | As of June 30, 2015 , the Company's aircraft orders consisted of the following: Airbus Third-Party Lessor A320 A320NEO A321 A321NEO A320NEO Total remainder of 2015 6 1 7 2016 3 9 4 16 2017 8 10 18 2018 2 6 5 13 2019 3 10 13 2020 13 13 2021 18 18 13 40 30 10 5 98 |
Future minimum lease payments under noncancelable capital leases | Future minimum lease payments under capital leases and noncancellable operating leases with initial or remaining terms in excess of one year at June 30, 2015 were as follows: Operating Leases Capital Leases Aircraft and Spare Engine Leases Property Facility Leases Operating Lease Obligations (in thousands) remainder of 2015 $ 722 $ 107,632 $ 16,605 $ 124,237 2016 1,044 213,120 27,063 240,183 2017 44 196,610 27,445 224,055 2018 44 172,885 27,422 200,307 2019 12 144,774 25,073 169,847 2020 and thereafter — 596,581 78,210 674,791 Total minimum lease payments $ 1,866 $ 1,431,602 $ 201,818 $ 1,633,420 Less amount representing interest $ 114 Present value of minimum lease payments $ 1,752 Less current portion $ 1,249 Long-term portion $ 503 |
Future minimum lease payments under noncancelable operating leases | Future minimum lease payments under capital leases and noncancellable operating leases with initial or remaining terms in excess of one year at June 30, 2015 were as follows: Operating Leases Capital Leases Aircraft and Spare Engine Leases Property Facility Leases Operating Lease Obligations (in thousands) remainder of 2015 $ 722 $ 107,632 $ 16,605 $ 124,237 2016 1,044 213,120 27,063 240,183 2017 44 196,610 27,445 224,055 2018 44 172,885 27,422 200,307 2019 12 144,774 25,073 169,847 2020 and thereafter — 596,581 78,210 674,791 Total minimum lease payments $ 1,866 $ 1,431,602 $ 201,818 $ 1,633,420 Less amount representing interest $ 114 Present value of minimum lease payments $ 1,752 Less current portion $ 1,249 Long-term portion $ 503 |
Employee groups and status of the collective bargaining agreements | The table below sets forth the Company's employee groups and status of the collective bargaining agreements as of June 30, 2015 . Employee Groups Representative Amendable Date Percentage of Workforce Pilots Air Line Pilots Association, International (ALPA) August 2015 27% Flight Attendants Association of Flight Attendants (AFA-CWA) August 2007 40% Dispatchers Transport Workers Union (TWU) August 2018 1% Ramp Service Agents International Association of Machinists and Aerospace Workers (IAMAW) June 2020 4% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | The carrying amounts and estimated fair values of our long-term debt at June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Senior long-term debt $ 387.2 $ 377.8 $ 132.0 $ 132.0 Junior long-term debt 48.6 48.7 16.0 16.1 Total long-term debt $ 435.8 $ 426.5 $ 148.0 $ 148.1 |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at gross fair value on a recurring basis are summarized below: Fair Value Measurements as of June 30, 2015 Total Level Level Level (in millions) Cash and cash equivalents $ 769.3 $ 769.3 $ — $ — Jet fuel options 1.5 — — 1.5 Total assets $ 770.8 $ 769.3 $ — $ 1.5 Interest rate swaps $ 1.7 $ — $ 1.7 $ — Total liabilities $ 1.7 $ — $ 1.7 $ — Fair Value Measurements as of December 31, 2014 Total Level Level Level (in millions) Cash and cash equivalents $ 632.8 $ 632.8 $ — $ — Jet fuel options 4.8 — — 4.8 Total assets $ 637.6 $ 632.8 $ — $ 4.8 Interest rate swaps $ 1.1 $ — $ 1.1 $ — Total liabilities $ 1.1 $ — $ 1.1 $ — |
Schedule of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The following tables present the Company's activity for assets and liabilities measured at gross fair value on a recurring basis using significant unobservable inputs (Level 3): Jet Fuel Option Activity for the Three Months Ended June 30, 2015 (in millions) Balance at March 31, 2015 $ 2.5 Total realized or unrealized gains (losses) included in earnings, net (0.6 ) Purchases — Sales — Settlements, net (0.4 ) Balance at June 30, 2015 $ 1.5 Jet Fuel Option Activity for the Six Months Ended June 30, 2015 (in millions) Balance at December 31, 2014 $ 4.8 Total realized or unrealized gains (losses) included in earnings, net (4.9 ) Purchases 2.1 Sales — Settlements, net (0.5 ) Balance at June 30, 2015 $ 1.5 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt is comprised of the following: As of Three Months Ended June 30, Six Months Ended June 30, June 30, 2015 December 31, 2014 2015 2014 2015 2014 (in millions) (weighted-average interest rates) Senior term loans due through 2026 - 2027 $ 387.2 $ 132.0 4.04 % N/A 4.04 % N/A Junior term loans due through 2021 - 2022 48.6 16.0 6.89 % N/A 6.89 % N/A Long-term debt $ 435.8 $ 148.0 Less current maturities 29.7 10.4 Less unamortized discounts 7.1 2.4 Total $ 399.0 $ 135.2 |
Schedule of Maturities of Long-term Debt | At June 30, 2015 , long-term debt principal payments for the next five years and thereafter are as follows: June 30, 2015 (in millions) remainder of 2015 $ 15.2 2016 31.4 2017 33.0 2018 34.6 2019 36.2 2020 and thereafter 285.4 Total debt principal payments $ 435.8 |
Schedule of Interest Expense, Long-term Debt | Interest expense related to debt consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Senior term loans $ 3,426 $ — $ 5,620 $ — Junior term loans 678 — 1,097 — Amortization of debt discounts 230 — 389 — Total $ 4,334 $ — $ 7,106 $ — |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator | ||||
Net income | $ 76,704 | $ 64,849 | $ 145,706 | $ 102,555 |
Denominator | ||||
Weighted-average shares outstanding, basic | 72,518 | 72,740 | 72,784 | 72,712 |
Effect of dilutive stock awards (in shares) | 283 | 554 | 299 | 562 |
Adjusted weighted-average shares outstanding, diluted | 72,801 | 73,294 | 73,083 | 73,274 |
Net income per share | ||||
Basic earnings per common share (in dollars per share) | $ 1.06 | $ 0.89 | $ 2 | $ 1.41 |
Diluted earnings per common share (in dollars per share) | $ 1.05 | $ 0.88 | $ 1.99 | $ 1.40 |
Anti-dilutive weighted-average shares | 56 | 57 | 42 | 56 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Federal excise and other passenger taxes and fees payable | $ 48,557 | $ 42,628 |
Salaries and wages | 34,549 | 34,209 |
Airport expenses | 27,086 | 21,726 |
Federal and state income tax payable | 24,944 | 3,286 |
Aircraft and facility lease obligations | 20,485 | 10,089 |
Aircraft maintenance | 17,604 | 16,127 |
Fuel | 12,006 | 9,508 |
Other | 22,648 | 15,348 |
Other current liabilities | $ 207,879 | $ 152,921 |
Financial Instruments and Ris25
Financial Instruments and Risk Management (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Payments for Premiums on Fuel Option Derivatives | $ 2,100 | |||
Into-plane fuel cost | $ 127,344 | $ 154,385 | 235,468 | $ 302,856 |
Realized losses (gains) related to fuel derivative contracts, net | 4,232 | 0 | 6,839 | 0 |
Unrealized losses (gains) related to fuel derivative contracts | (3,669) | 467 | (1,974) | 467 |
Aircraft fuel | $ 127,907 | $ 154,852 | $ 240,333 | $ 303,323 |
Financial Instruments and Ris26
Financial Instruments and Risk Management - Narrative (Details) $ in Thousands, gal in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)derivative_instrumentaircraft$ / galgal | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)derivative_instrumentaircraft$ / galgal | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)$ / galgal | |
Derivative [Line Items] | |||||
Anticipated jet fuel consumption protected by hedges (in gallons) | gal | 25.5 | 25.5 | 88.7 | ||
Anticipated jet fuel consumption protected by hedges (as a percent) | 19.00% | 19.00% | 35.00% | ||
Unrealized gain (loss) on interest rate derivative instruments, net of deferred taxes of $749, $0, ($191) and $0 | $ 1,238 | $ 0 | $ (356) | $ 0 | |
Unrealized gain (loss) on interest rate derivative instruments, tax | $ 749 | $ 0 | $ (191) | $ 0 | |
Airbus A321 [Member] | 2015 [Member] | |||||
Derivative [Line Items] | |||||
Number of Aircraft protected by Interest Rate Derivatives Schedule for Delivery | aircraft | 3 | 3 | |||
Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Number of Interest Rate Derivatives Held | derivative_instrument | 6 | 6 | |||
Derivative, Notional Amount | $ 120,000 | $ 120,000 | |||
Interest Rate Derivative Liabilities, at Fair Value | $ 1,100 | ||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on interest rate derivative instruments, tax | $ (700) | $ 200 | |||
Options Held [Member] | Fuel [Member] | |||||
Derivative [Line Items] | |||||
Derivative contract, weighted average ceiling price (in USD per gallon) | $ / gal | 1.93 | 1.93 | 2.07 | ||
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Interest rate swaps | $ 1,700 | $ 1,700 | $ 1,100 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Interest rate swaps | 1,700 | 1,700 | $ 1,100 | ||
Interest Rate Derivative Liabilities, at Fair Value | $ 1,700 | $ 1,700 |
Commitments and Contingencies -
Commitments and Contingencies - Aircraft Contractual Purchase Commitments (Details) | Jun. 30, 2015aircraft |
Long-term Purchase Commitment [Line Items] | |
Future Aircraft To Be Received, Remainder of FIscal Year | 7 |
Future Aircraft To Be Received, in Two Years | 16 |
Future Aircraft To Be Received, in Three Years | 18 |
Future Aircraft To Be Received, in Four Years | 13 |
Future Aircraft To Be Received, in Five Years | 13 |
Future Aircraft To Be Received, in Six Years | 13 |
Future Aircraft To Be Received, in Seven Years | 18 |
Future Aircraft To Be Received | 98 |
Airbus [Member] | A320 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Future Aircraft To Be Received, Remainder of FIscal Year | |
Future Aircraft To Be Received, in Two Years | 3 |
Future Aircraft To Be Received, in Three Years | 8 |
Future Aircraft To Be Received, in Four Years | 2 |
Future Aircraft To Be Received, in Five Years | |
Future Aircraft To Be Received, in Six Years | |
Future Aircraft To Be Received, in Seven Years | |
Future Aircraft To Be Received | 13 |
Airbus [Member] | A320 NEO [Member] | |
Long-term Purchase Commitment [Line Items] | |
Future Aircraft To Be Received, Remainder of FIscal Year | |
Future Aircraft To Be Received, in Two Years | |
Future Aircraft To Be Received, in Three Years | |
Future Aircraft To Be Received, in Four Years | 6 |
Future Aircraft To Be Received, in Five Years | 3 |
Future Aircraft To Be Received, in Six Years | 13 |
Future Aircraft To Be Received, in Seven Years | 18 |
Future Aircraft To Be Received | 40 |
Airbus [Member] | A321 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Future Aircraft To Be Received, Remainder of FIscal Year | 6 |
Future Aircraft To Be Received, in Two Years | 9 |
Future Aircraft To Be Received, in Three Years | 10 |
Future Aircraft To Be Received, in Four Years | 5 |
Future Aircraft To Be Received, in Five Years | |
Future Aircraft To Be Received, in Six Years | |
Future Aircraft To Be Received, in Seven Years | |
Future Aircraft To Be Received | 30 |
Airbus [Member] | A321 NEO [Member] | |
Long-term Purchase Commitment [Line Items] | |
Future Aircraft To Be Received, Remainder of FIscal Year | |
Future Aircraft To Be Received, in Two Years | |
Future Aircraft To Be Received, in Three Years | |
Future Aircraft To Be Received, in Four Years | |
Future Aircraft To Be Received, in Five Years | 10 |
Future Aircraft To Be Received, in Six Years | |
Future Aircraft To Be Received, in Seven Years | |
Future Aircraft To Be Received | 10 |
Third Party Lessor [Member] | A320 NEO [Member] | |
Long-term Purchase Commitment [Line Items] | |
Future Aircraft To Be Received, Remainder of FIscal Year | 1 |
Future Aircraft To Be Received, in Two Years | 4 |
Future Aircraft To Be Received, in Three Years | |
Future Aircraft To Be Received, in Four Years | |
Future Aircraft To Be Received, in Five Years | |
Future Aircraft To Be Received, in Six Years | |
Future Aircraft To Be Received, in Seven Years | |
Future Aircraft To Be Received | 5 |
Commitments and Contingencies28
Commitments and Contingencies - Commitments (Details) - Jun. 30, 2015 $ in Millions | USD ($)aircraft_engineaircraft |
Aircraft [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Operating Leases of Lessee, Number of Leased Assets | 61 |
Spare Engines [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Operating Leases of Lessee, Number of Leased Assets | aircraft_engine | 11 |
Aircraft [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of Delivered Aircraft with Secured Debt Financing Commitments | 8 |
Property, Plant and Equipment, Useful Life | 25 years |
Major Spare Rotable Parts, Avionics, and Assemblies [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Property, Plant and Equipment, Salvage Value, Percentage | 10.00% |
Airbus A320 [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of aircraft held | 73 |
Airbus [Member] | 2015 [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of Aircraft with Secured Financing Commitments Scheduled for Delivery (in aircraft) | 3 |
Number of Aircraft Scheduled for Delivery (in aircraft) | 6 |
Airbus [Member] | 2015-2016 [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of Aircraft without Secured Financing Commitments Scheduled for Delivery (in aircraft) | 9 |
Airbus [Member] | 2015-2021 [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of Aircraft without Secured Financing Commitments Scheduled for Delivery (in aircraft) | 90 |
Third Party Lessor [Member] | 2015-2016 [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of Direct Leased Aircraft Ordered From A Third Party | 5 |
Aircraft and Related Flight Equipment [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | $ | $ 285 |
Unrecorded Unconditional Purchase Obligation, Due in 2016 | $ | 597 |
Unrecorded Unconditional Purchase Obligation, Due in 2017 | $ | 763 |
Unrecorded Unconditional Purchase Obligation, Due in 2018 | $ | 618 |
Unrecorded Unconditional Purchase Obligation, Due in 2019 | $ | 701 |
Unrecorded Unconditional Purchase Obligation, Due in 2020 and beyond | $ | $ 1,515 |
V2500 SelectOne Engine [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of spare aircraft engines ordered (in aircraft engine) | aircraft_engine | 4 |
PurePower PW1100G-JM Engine [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of spare aircraft engines ordered (in aircraft engine) | aircraft_engine | 9 |
Secured Debt [Member] | Aircraft and Related Flight Equipment [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Debt financing commitments | $ | $ 120 |
Commitments and Contingencies29
Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) - Jun. 30, 2015 $ in Thousands | USD ($)leases |
Capital Leases, Future Minimum Payments, Net Minimum Payments, Rolling Maturity [Abstract] | |
remainder of 2015 | $ 722 |
Future Minimum Payments Due, 2016 | 1,044 |
Future Minimum Payments Due, 2017 | 44 |
Future Minimum Payments Due, 2018 | 44 |
Future Minimum Payments Due, 2019 | 12 |
Future Minimum Payments Due, 2020 and thereafter | 0 |
Total minimum lease payments | 1,866 |
Less amount representing interest | 114 |
Present value of minimum lease payments | 1,752 |
Less current portion | 1,249 |
Long-term portion | 503 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
remainder of 2015 | 124,237 |
Future Minimum Payments Due, 2016 | 240,183 |
Future Minimum Payments Due, 2017 | 224,055 |
Future Minimum Payments Due, 2018 | 200,307 |
Future Minimum Payments Due, 2019 | 169,847 |
Future Minimum Payments Due, 2020 and thereafter | 674,791 |
Total minimum lease payments | $ 1,633,420 |
Quick Engine Change Kit [Member] | |
Capital Leased Assets [Line Items] | |
Number of Capital Leases | leases | 2 |
Capital Leases of Lessee, Lease Term | 3 years |
Aircraft and Spare Engine Leases [Member] | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
remainder of 2015 | $ 107,632 |
Future Minimum Payments Due, 2016 | 213,120 |
Future Minimum Payments Due, 2017 | 196,610 |
Future Minimum Payments Due, 2018 | 172,885 |
Future Minimum Payments Due, 2019 | 144,774 |
Future Minimum Payments Due, 2020 and thereafter | 596,581 |
Total minimum lease payments | 1,431,602 |
Property Facility Leases [Member] | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
remainder of 2015 | 16,605 |
Future Minimum Payments Due, 2016 | 27,063 |
Future Minimum Payments Due, 2017 | 27,445 |
Future Minimum Payments Due, 2018 | 27,422 |
Future Minimum Payments Due, 2019 | 25,073 |
Future Minimum Payments Due, 2020 and thereafter | 78,210 |
Total minimum lease payments | $ 201,818 |
Commitments and Contingencies30
Commitments and Contingencies - Fixed Maintenance Reserve Payments and Other Commitments (Details) $ in Millions | Jun. 30, 2015USD ($) |
Fixed Maintenance Reserve Payments, Aircraft and Related Flight Equipment [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | $ 3.8 |
Unrecorded Unconditional Purchase Obligation, Due in 2016 | 8 |
Unrecorded Unconditional Purchase Obligation, Due in 2017 | 7.4 |
Unrecorded Unconditional Purchase Obligation, Due in 2018 | 5.8 |
Unrecorded Unconditional Purchase Obligation, Due in 2019 | 4.2 |
Unrecorded Unconditional Purchase Obligation, Due in 2020 and beyond | 14.1 |
Reservation System and Advertising Media [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 2.9 |
Unrecorded Unconditional Purchase Obligation, Due in 2016 | 3.9 |
Unrecorded Unconditional Purchase Obligation, Due in 2017 | 3.9 |
Unrecorded Unconditional Purchase Obligation, Due in 2018 | 2.6 |
Unrecorded Unconditional Purchase Obligation, Due in 2019 | 0 |
Unrecorded Unconditional Purchase Obligation, Due in 2020 and beyond | $ 0 |
Commitments and Contingencies31
Commitments and Contingencies - Credit Card Processing Arrangements (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Cash collateral required for credit card transactions as a percentage of air traffic liability, prior to amendment (percent) | 100.00% | |
Restricted cash holdbacks | $ 0 | $ 0 |
Maximum Potential Exposure to Cash Holdbacks from Credit Card Processors | $ 314,100,000 | $ 217,100,000 |
Commitments and Contingencies32
Commitments and Contingencies - Employees (Details) $ in Millions | 1 Months Ended | 6 Months Ended | ||
May. 31, 2015 | Aug. 31, 2014 | Jun. 30, 2015USD ($)airport | Dec. 31, 2014USD ($) | |
Concentration Risk [Line Items] | ||||
Number of airports in which entity operates | 57 | |||
Association of Flight Attendants [Member] | ||||
Concentration Risk [Line Items] | ||||
Tentative collective bargaining agreement, contract term | 5 years | |||
International Association Of Machinists And Aerospace Workers (IAM) [Member] | ||||
Concentration Risk [Line Items] | ||||
Interim collective bargaining agreement, contract term | 5 years | |||
Number of airports in which entity operates | 1 | |||
Health Insurance [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Accrued health care claims | $ | $ 3.3 | $ 3.1 | ||
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | ||||
Concentration Risk [Line Items] | ||||
Company's employees covered under collective bargaining agreements (as a percent) | 72.00% | |||
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | Air Line Pilots Association, International [Member] | ||||
Concentration Risk [Line Items] | ||||
Company's employees covered under collective bargaining agreements (as a percent) | 27.00% | |||
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | Association of Flight Attendants [Member] | ||||
Concentration Risk [Line Items] | ||||
Company's employees covered under collective bargaining agreements (as a percent) | 40.00% | |||
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | Transport Workers Union [Member] | ||||
Concentration Risk [Line Items] | ||||
Company's employees covered under collective bargaining agreements (as a percent) | 1.00% | |||
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | International Association Of Machinists And Aerospace Workers (IAM) [Member] | ||||
Concentration Risk [Line Items] | ||||
Company's employees covered under collective bargaining agreements (as a percent) | 4.00% |
Fair Value Measurements - Long-
Fair Value Measurements - Long-term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt, Carrying value | $ 435.8 | $ 148 |
Long-term debt, Estimated fair value | 426.5 | 148.1 |
Senior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Carrying value | 387.2 | 132 |
Senior Loans [Member] | Level 3 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Estimated fair value | 377.8 | 132 |
Junior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Carrying value | 48.6 | 16 |
Junior Loans [Member] | Level 3 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Estimated fair value | $ 48.7 | $ 16.1 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 769.3 | $ 632.8 |
Total assets | 770.8 | 637.6 |
Interest rate swaps | 1.7 | 1.1 |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 1.7 | 1.1 |
Jet fuel options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Jet fuel options | 1.5 | 4.8 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 769.3 | 632.8 |
Total assets | 769.3 | 632.8 |
Interest rate swaps | 0 | 0 |
Level 1 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 0 | 0 |
Level 1 [Member] | Jet fuel options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Jet fuel options | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Total assets | 0 | 0 |
Interest rate swaps | 1.7 | 1.1 |
Level 2 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 1.7 | 1.1 |
Level 2 [Member] | Jet fuel options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Jet fuel options | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Total assets | 1.5 | 4.8 |
Interest rate swaps | 0 | 0 |
Level 3 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 0 | 0 |
Level 3 [Member] | Jet fuel options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Jet fuel options | $ 1.5 | $ 4.8 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Inputs (Details) - Jun. 30, 2015 - Jet fuel options [Member] - USD ($) $ in Millions | Total | Total |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | $ 2.5 | $ 4.8 |
Total realized or unrealized gains (losses) included in earnings, net | (0.6) | (4.9) |
Purchases | 0 | 2.1 |
Sales | 0 | 0 |
Settlements, net | (0.4) | (0.5) |
Ending Balance | $ 1.5 | $ 1.5 |
Long-term Debt (Details)
Long-term Debt (Details) $ in Millions | Feb. 24, 2015USD ($)agreementaircraft | Oct. 01, 2014USD ($)aircraft | Jun. 30, 2015USD ($)aircraft | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 185 | $ 379 | ||
Long-term Debt, Gross | $ 435.8 | $ 148 | ||
Number of Facility Agreements | agreement | 2 | |||
Repayments of Long-term Debt | 8.2 | |||
Framework Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | 259 | |||
Facility Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | 185 | |||
Senior Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 12 years | 12 years | ||
Long-term Debt, Gross | 387.2 | 132 | ||
Junior Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 7 years | 7 years | ||
Long-term Debt, Gross | $ 48.6 | $ 16 | ||
A320 [Member] | Airbus [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of Aircraft with Secured Debt Financing Commitments Scheduled for Delivery | aircraft | 5 | 7 | ||
A320 [Member] | Airbus [Member] | Framework Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of Delivered Aircraft with Secured Debt Financing Commitments | aircraft | 7 | |||
A320 [Member] | Airbus [Member] | Facility Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of Delivered Aircraft with Secured Debt Financing Commitments | aircraft | 5 | |||
A321 [Member] | Airbus [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of Aircraft with Secured Debt Financing Commitments Scheduled for Delivery | aircraft | 3 | |||
2015 [Member] | Airbus [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of Aircraft with Secured Debt Financing Commitments Scheduled for Delivery | aircraft | 3 | |||
2015 [Member] | A321 [Member] | Airbus [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of Aircraft with Secured Debt Financing Commitments Scheduled for Delivery | aircraft | 3 |
Long-term Debt Activity (Detail
Long-term Debt Activity (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 435,800 | $ 148,000 |
Current maturities of long-term debt | 29,676 | 10,431 |
Less unamortized discounts | 7,100 | 2,400 |
Long-term debt, less current maturities | 398,975 | 135,232 |
Senior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 387,200 | 132,000 |
Long-term Debt, Weighted Average Interest Rate | 4.04% | |
Junior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 48,600 | $ 16,000 |
Long-term Debt, Weighted Average Interest Rate | 6.89% |
Long-term Debt Interest Expense
Long-term Debt Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Amortization of debt discounts | $ 230 | $ 0 | $ 389 | $ 0 |
Total | 4,334 | 0 | 7,106 | 0 |
Senior Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | 3,426 | 0 | 5,620 | 0 |
Junior Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | $ 678 | $ 0 | $ 1,097 | $ 0 |
Long-term Debt Future Maturitie
Long-term Debt Future Maturities (Details) $ in Millions | Jun. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,015 | $ 15.2 |
2,016 | 31.4 |
2,017 | 33 |
2,018 | 34.6 |
2,019 | 36.2 |
2020 and thereafter | 285.4 |
Long-term Debt | $ 435.8 |
Subsequent Event (Details)
Subsequent Event (Details) | Jul. 13, 2015USD ($)shares | Jul. 10, 2015USD ($)aircraft | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Subsequent Event [Line Items] | ||||
Payments for Repurchase of Common Stock | $ 79,415,000 | $ 1,222,000 | ||
Long-term Debt | $ 435,800,000 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Change in tax accounting method, reduction to income tax payable | $ 35,000,000 | |||
Stock Repurchased During Period, Shares | shares | 180,000 | |||
Payments for Repurchase of Common Stock | $ 10.9 | |||
Airbus A321 [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of aircraft delivered | aircraft | 1 | |||
Long-term Debt | $ 0 |