Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 20, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
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 | 71,539,630 |
Condensed Statements Of Operati
Condensed Statements Of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating revenues: | ||||
Passenger | $ 319,812 | $ 317,038 | $ 901,851 | $ 873,403 |
Non-ticket | 255,029 | 202,731 | 719,766 | 583,690 |
Total operating revenues | 574,841 | 519,769 | 1,621,617 | 1,457,093 |
Operating expenses: | ||||
Aircraft fuel | 115,899 | 171,584 | 356,232 | 474,907 |
Salaries, wages and benefits | 95,081 | 79,087 | 281,175 | 232,776 |
Aircraft rent | 53,525 | 50,009 | 159,440 | 144,618 |
Landing fees and other rents | 34,577 | 27,735 | 98,487 | 77,582 |
Distribution | 23,074 | 20,202 | 65,920 | 58,930 |
Maintenance, materials and repairs | 21,473 | 19,622 | 61,904 | 56,441 |
Depreciation and amortization | 19,628 | 11,338 | 51,630 | 33,803 |
Other operating | 54,151 | 39,190 | 156,071 | 111,045 |
Loss on disposal of assets | 290 | 793 | 1,300 | 1,658 |
Special charges (credits) | (76) | 18 | 673 | 45 |
Total operating expenses | 417,622 | 419,578 | 1,232,832 | 1,191,805 |
Operating income | 157,219 | 100,191 | 388,785 | 265,288 |
Other (income) expense: | ||||
Interest expense | 5,951 | 878 | 13,182 | 1,088 |
Capitalized interest | (3,030) | (878) | (8,392) | (1,088) |
Interest income | (233) | (84) | (544) | (235) |
Other expense | 166 | 81 | 282 | 1,557 |
Total other (income) expense | 2,854 | (3) | 4,528 | 1,322 |
Income before income taxes | 154,365 | 100,194 | 384,257 | 263,966 |
Provision for income taxes | 57,251 | 33,194 | 141,437 | 94,411 |
Net income | $ 97,114 | $ 67,000 | $ 242,820 | $ 169,555 |
Basic earnings per share (in dollars per share) | $ 1.35 | $ 0.92 | $ 3.35 | $ 2.33 |
Diluted earnings per share (in dollars per share) | $ 1.35 | $ 0.91 | $ 3.34 | $ 2.31 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 97,114 | $ 67,000 | $ 242,820 | $ 169,555 |
Unrealized gain (loss) on interest rate derivative instruments, net of deferred tax expense (benefit) of ($320), $0, ($511) and $0 | (553) | 0 | (909) | 0 |
Other comprehensive income (loss) | (553) | 0 | (909) | 0 |
Comprehensive income | $ 96,561 | $ 67,000 | $ 241,911 | $ 169,555 |
Condensed Statements of Compre4
Condensed Statements of Comprehensive Income (Parenthetical) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain (loss) on interest rate derivative instruments, tax | $ (320) | $ 0 | $ (511) | $ 0 |
Condensed Balance Sheets (unaud
Condensed Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 748,896 | $ 632,784 |
Accounts receivable, net | 33,094 | 22,685 |
Deferred income taxes | 9,643 | 9,643 |
Prepaid expenses and other current assets | 126,939 | 66,029 |
Total current assets | 918,572 | 731,141 |
Property and equipment: | ||
Flight equipment | 689,603 | 204,462 |
Ground and other equipment | 76,136 | 57,012 |
Less accumulated depreciation | (55,521) | (36,099) |
Total property and equipment | 710,218 | 225,375 |
Deposits on flight equipment purchase contracts | 275,544 | 242,881 |
Aircraft maintenance deposits | 199,200 | 213,147 |
Deferred heavy maintenance, net | 99,571 | 123,108 |
Other long-term assets | 73,817 | 66,744 |
Total assets | 2,276,922 | 1,602,396 |
Current liabilities: | ||
Accounts payable | 15,823 | 13,402 |
Air traffic liability | 237,043 | 188,870 |
Current maturities of long-term debt | 37,758 | 10,431 |
Other current liabilities | 176,259 | 152,921 |
Total current liabilities | 466,883 | 365,624 |
Long-term debt, less current maturities | 500,147 | 135,232 |
Long-term deferred income taxes | 139,459 | 76,010 |
Deferred gains and other long-term liabilities | 21,760 | 22,455 |
Shareholders’ equity: | ||
Common stock | 7 | 7 |
Additional paid-in-capital | 542,022 | 526,173 |
Treasury stock, at cost | (116,083) | (3,921) |
Retained earnings | 724,354 | 481,534 |
Accumulated other comprehensive loss | (1,627) | (718) |
Total shareholders’ equity | 1,148,673 | 1,003,075 |
Total liabilities and shareholders’ equity | $ 2,276,922 | $ 1,602,396 |
Condensed Statements Of Cash Fl
Condensed Statements Of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities: | ||
Net income | $ 242,820 | $ 169,555 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Unrealized (gains) losses on open fuel derivative contracts, net | 2,239 | 0 |
Equity-based compensation, net | 6,999 | 6,315 |
Allowance for doubtful accounts (recoveries) | 7 | (63) |
Amortization of deferred gains and losses | 730 | (228) |
Depreciation and amortization | 51,630 | 33,803 |
Deferred income tax expense (benefit) | 63,960 | (395) |
Loss on disposal of assets | 1,300 | 1,658 |
Capitalized interest | (8,392) | (1,088) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10,374) | (3,206) |
Prepaid maintenance reserves | (17,488) | (28,955) |
Long-term deposits and other assets | (44,294) | (36,449) |
Accounts payable | 2,340 | (5,524) |
Air traffic liability | 56,960 | 48,736 |
Other liabilities | 17,845 | 22,136 |
Net cash provided by operating activities | 366,282 | 206,295 |
Investing activities: | ||
Pre-delivery deposits for flight equipment, net of refunds | (87,658) | (115,955) |
Purchase of property and equipment | (451,799) | (26,261) |
Net cash used in investing activities | (539,457) | (142,216) |
Financing activities: | ||
Proceeds from issuance of long-term debt | 416,000 | 0 |
Proceeds from stock options exercised | 32 | 140 |
Payments on debt and capital lease obligations | (16,609) | (922) |
Proceeds from sale and leaseback transactions | 7,300 | 0 |
Payments to pre-IPO shareholders pursuant to tax receivable agreement | 0 | (5,643) |
Excess tax benefits from equity-based compensation | 8,818 | 1,690 |
Repurchase of common stock | (112,162) | (1,501) |
Debt issuance costs | (14,092) | 0 |
Net cash provided by financing activities | 289,287 | (6,236) |
Net increase in cash and cash equivalents | 116,112 | 57,843 |
Cash and cash equivalents at beginning of period | 632,784 | 530,631 |
Cash and cash equivalents at end of period | 748,896 | 588,474 |
Cash payments for: | ||
Interest (net of capitalized interest) | 3,851 | 398 |
Taxes | $ 95,135 | $ 88,884 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 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 on February 18, 2015. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect both 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 | 9 Months Ended |
Sep. 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. ASU 2014-09 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 permitted, but not before interim and annual reporting periods beginning after December 15, 2016. 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 No. 2015-03 (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. Early application is permitted. The Company has elected to early adopt the standard effective January 1, 2015. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Numerator Net income $ 97,114 $ 67,000 $ 242,820 $ 169,555 Denominator Weighted-average shares outstanding, basic 71,738 72,755 72,432 72,727 Effect of dilutive stock awards 146 548 248 557 Adjusted weighted-average shares outstanding, diluted 71,884 73,303 72,680 73,284 Net income per share Basic earnings per common share $ 1.35 $ 0.92 $ 3.35 $ 2.33 Diluted earnings per common share $ 1.35 $ 0.91 $ 3.34 $ 2.31 Anti-dilutive weighted-average shares 57 — 47 38 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Other current liabilities as of September 30, 2015 and December 31, 2014 consist of the following: September 30, 2015 December 31, 2014 (in thousands) Federal excise and other passenger taxes and fees payable $ 38,141 $ 42,628 Salaries and wages 32,501 34,209 Airport obligations 30,024 21,726 Aircraft and facility lease obligations 22,196 10,089 Aircraft maintenance 21,506 16,127 Fuel 9,403 9,508 Federal and state income tax payable — 3,286 Other 22,488 15,348 Other current liabilities $ 176,259 $ 152,921 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. On July 13, 2015, the Company received approval from the Internal Revenue Service. As of September 30, 2015, the impact of this tax accounting method change reduces income tax payable in the amount of $35.1 million , with a corresponding increase in long-term deferred tax liability. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 9 Months Ended |
Sep. 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 absolute exposure levels, credit ratings, and historical performance of 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 September 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 nine months ended September 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 and nine months ended September 30, 2015 , the Company paid $0.3 million and $2.5 million in premiums to acquire jet fuel options. The following table summarizes the components of aircraft fuel expense for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Into-plane fuel cost $ 114,081 $ 171,138 $ 349,549 $ 473,994 Realized losses (gains) related to fuel derivative contracts, net 1,736 151 8,575 151 Unrealized losses (gains) related to fuel derivative contracts, net 82 295 (1,892 ) 762 Aircraft fuel $ 115,899 $ 171,584 $ 356,232 $ 474,907 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. During the third quarter of 2014, the Company became aware of an underpayment of Federal Excise Tax (FET) for fuel purchases during the period between July 1, 2009 and August 31, 2014. The commencement of the period in which the Company underpaid FET coincided with a change in its fuel service provider that took place in July 2009. The out of period jet fuel FET amount of $9.3 million is recorded within aircraft fuel in the statement of operations for the three and nine months ended September 30, 2014. The Company does not believe the error to be material to the 2009 through 2013 financial statements nor for the cumulative out of period error to be material to the 2014 financial statements. As of September 30, 2015 , the Company had fuel derivatives consisting of jet fuel options with refined products as the underlying commodities designed to protect 15.3 million gallons, or approximately 23% of its remaining 2015 anticipated jet fuel consumption, at a weighted-average ceiling price of $1.92 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. As of September 30, 2015 and December 31, 2014 , the Company had no outstanding jet fuel swaps. Interest Rate Swaps During the third quarter of 2015, the Company settled six forward interest rate swaps having a total notional amount of $120 million . These interest rate swaps fixed the benchmark interest rate component of interest payments on the debt related to three Airbus A321 aircraft, which the Company took delivery of during the third quarter of 2015. These instruments limited the Company's exposure to changes in the benchmark interest rate in the period from the trade date through the date of maturity. The interest rate swaps are designated as cash flow hedges. The Company accounts for 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. Subsequent to the issuance of each debt instrument, amounts remaining in AOCI are amortized over the life of the fixed-rate debt instrument. For the three and nine months ended September 30, 2015 , an unrealized loss of $0.6 million and $0.9 million , net of deferred taxes of $0.3 million and $0.5 million , respectively, was recorded within AOCI related to these instruments. For the three and nine months ended September 30, 2015 , the Company reclassified $25.3 thousand , net of tax of $14.8 thousand , to earnings. As of September 30, 2015 , $1.6 million , net of tax, remained in AOCI. Given that there may be some uncertainty regarding the terms on which the Company issues its fixed-rate debt, the Company evaluates the effect of such uncertainty on the effectiveness of the hedging relationship designated for each reporting period. Any ineffectiveness is recorded within other non-operating expense in the Company's statement of operations. During the three and nine months ended September 30, 2015 , the Company recorded no ineffectiveness associated with the Company's interest rate cash flow hedges. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 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 September 30, 2015 , the Company's aircraft orders consisted of the following: Airbus Third-Party Lessor A320 A320NEO A321 A321NEO A320NEO Total remainder of 2015 3 1 4 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 27 10 5 95 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 $149 million for the remainder of 2015 , $592 million in 2016 , $767 million in 2017 , $620 million in 2018 , $703 million in 2019 , and $1,515 million in 2020 and beyond . The Company has secured debt financing commitments of $576.6 million for 15 aircraft, scheduled for delivery in 2015 and 2016. See Note 8, Long-Term Debt - 2015-1 EETCs. In addition, the Company has secured financing for five aircraft to be leased directly from a third party, also scheduled for delivery in 2015 and 2016. The Company does not have financing commitments in place for the remaining 75 Airbus aircraft currently on firm order, which are scheduled for delivery in 2017 through 2021. As of September 30, 2015 , the Company had a fleet consisting of 76 A320 family aircraft. During the nine months ended September 30, 2015 , the Company took delivery of 11 aircraft financed under secured debt arrangements. These aircraft are capitalized within flight equipment with depreciable lives of 25 years and estimated residual values of 10% . As of September 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. In July 2015, the Company executed an upgrade service agreement with Airbus Americas Customer Services Inc. (Airbus) to reconfigure the seating and increase capacity in 40 of the Company’s existing A320 aircraft from 178 to 182 seats (reconfiguration). The reconfiguration of the aircraft will begin in the fourth quarter of 2015 and is expected to be completed in the fourth quarter of 2016. The cost to reconfigure each aircraft will be approximately $0.6 million and purchase commitments for these are estimated to be approximately $12.6 million for the remainder of 2015 and $10.6 million in 2016. In September 2015, the Company executed a lease agreement with Wayne County Airport Authority (the Authority), which owns and operates Detroit Metropolitan Wayne County Airport (DTW). Under the lease agreement, the Company will lease a 10 -acre site, adjacent to the airfield at DTW, in order to construct, operate and maintain an approximately 126,000 square foot hangar facility (the project). The project allows for the development of a maintenance hangar in order to fulfill the requirements of the Company's growing fleet and will reduce dependence on third-party facilities and contract maintenance. The lease agreement has a 30 -year term with two 10 -year extension options. Upon termination of the lease, title of the project, which will be fully depreciated, will automatically pass to the Authority. The Company expects to begin design and construction of the project in the fourth quarter of 2015 and is estimated to be completed during the fourth quarter of 2016. The project is estimated to cost approximately $32 million . Future minimum lease payments under noncancellable operating leases with initial or remaining terms in excess of one year at September 30, 2015 were as follows: Operating Leases Aircraft and Spare Engine Leases Property Facility Leases Operating Lease Obligations (in thousands) remainder of 2015 $ 53,847 $ 8,189 $ 62,036 2016 213,207 24,925 238,132 2017 199,628 26,802 226,430 2018 175,867 29,883 205,750 2019 147,756 29,304 177,060 2020 and thereafter 630,732 92,553 723,285 Total minimum lease payments $ 1,421,037 $ 211,656 $ 1,632,693 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 expected 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 that 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 pay 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 $1.9 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 September 30, 2015 , 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 September 30, 2015 : $1.2 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 with its reservation system provider 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 was subsequently transferred to Florida. The cases, which contain identical claims, allege violations of the Fair and Accurate Credit Transactions Act. On August 19, 2015, a mediation was held on the two cases, during which the Company and plaintiffs' representatives reached a settlement. Because one of the cases had been previously certified as a class action, the agreed settlement will be subject to a court approval process. Amounts agreed to be paid by the Company under the settlement are not material. 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 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 September 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 September 30, 2015 and December 31, 2014 , was $274.9 million and $217.1 million , respectively. Employees Approximately 73% of the Company’s employees are covered under collective bargaining agreements (CBAs). The table below sets forth the Company's employee groups and status of the collective bargaining agreements as of September 30, 2015 . Employee Groups Representative Amendable Date Percentage of Workforce Pilots Air Line Pilots Association, International (ALPA) August 2015 26% Flight Attendants Association of Flight Attendants (AFA-CWA) August 2007 43% Dispatchers Transport Workers Union (TWU) August 2018 1% Ramp Service Agents International Association of Machinists and Aerospace Workers (IAMAW) June 2020 3% 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 continues to work 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, the Company entered into a five -year interim collective bargaining agreement with the IAMAW, including material economic terms, and the Company is continuing the process of negotiating a final collective bargaining agreement with the IAMAW. As of September 30, 2015 , ramp service agents represented by the IAMAW service 1 of the 56 airports where the Company operates. In August 2015, the Company's CBA with its pilot union, Air Line Pilots Association, International (ALPA), became amendable and the Company is currently in discussions with ALPA on a new contract. 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 $3.6 million and $3.1 million in health care claims as of September 30, 2015 and December 31, 2014 , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Under ASC 820, Fair Value Measurements and Disclosures , disclosures relating to how fair value is determined for assets and liabilities are required, 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 in 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 is 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 September 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 which the Company took delivery of during the third quarter of 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 is 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. As of September 30, 2015 , the Company had no outstanding interest rate swaps as these instruments settled during the third quarter of 2015, upon delivery of the related aircraft. 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 the Company's long-term debt at September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Senior long-term debt $ 492.1 $ 477.4 $ 132.0 $ 132.0 Junior long-term debt 56.1 55.8 16.0 16.1 Total long-term debt $ 548.2 $ 533.2 $ 148.0 $ 148.1 Cash and Cash Equivalents Cash and cash equivalents at September 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 September 30, 2015 Total Level Level Level (in thousands) Cash and cash equivalents $ 748,896 $ 748,896 $ — $ — Jet fuel options 17 — — 17 Total assets $ 748,913 $ 748,896 $ — $ 17 Total liabilities $ — $ — $ — $ — Fair Value Measurements as of December 31, 2014 Total Level Level Level (in thousands) Cash and cash equivalents $ 632,784 $ 632,784 $ — $ — Jet fuel options 4,803 — — 4,803 Total assets $ 637,587 $ 632,784 $ — $ 4,803 Interest rate swaps $ 1,141 $ — $ 1,141 $ — Total liabilities $ 1,141 $ — $ 1,141 $ — The Company had no transfers of assets or liabilities between any of the above levels during the periods ended September 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 execution of the Company's valuation policies and procedures. 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, 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 September 30, 2015 (in thousands) Balance at June 30, 2015 $ 1,491 Total realized or unrealized gains (losses) included in earnings, net (1,818 ) Purchases 344 Sales — Settlements, net — Balance at September 30, 2015 $ 17 Jet Fuel Option Activity for the Nine Months Ended September 30, 2015 (in thousands) Balance at December 31, 2014 $ 4,803 Total realized or unrealized gains (losses) included in earnings, net (6,683 ) Purchases 2,474 Sales — Settlements, net (577 ) Balance at September 30, 2015 $ 17 |
Long-term Debt Long-term Debt
Long-term Debt Long-term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt Long-term debt is comprised of the following: As of Three Months Ended September 30, Nine Months Ended September 30, September 30, 2015 December 31, 2014 2015 2014 2015 2014 (in millions) (weighted-average interest rates) Senior term loans due through 2026 - 2027 $ 492.1 $ 132.0 4.10 % N/A 4.10 % N/A Junior term loans due through 2021 - 2022 56.1 16.0 6.90 % N/A 6.90 % N/A Long-term debt $ 548.2 $ 148.0 Less current maturities 37.8 10.4 Less unamortized discounts 10.3 2.4 Total $ 500.1 $ 135.2 During the nine months ended September 30, 2015 , the Company made scheduled principal payments of $15.8 million on its outstanding debt obligations. At September 30, 2015 , long-term debt principal payments for the next five years and thereafter are as follows: September 30, 2015 (in millions) remainder of 2015 $ 9.6 2016 39.7 2017 41.8 2018 43.7 2019 45.8 2020 and thereafter 367.6 Total debt principal payments $ 548.2 2015-1 EETCs In August 2015, the Company created two separate pass-through trusts, which issued approximately $576.6 million aggregate face amount of Series 2015-1 Class A and Class B enhanced equipment trust certificates (EETCs) with a blended interest rate of 4.15% per annum in connection with the financing of 12 new Airbus A321-200 aircraft and 3 new Airbus A320-200 aircraft to be delivered from October 2015 to December 2016. Each class of certificates represents a fractional undivided interest in the respective pass-through trusts and is not an obligation of the Company. The proceeds from the issuance of these certificates are initially held in escrow by a depositary and, upon satisfaction of certain terms and conditions, will be released and used to purchase equipment notes to be issued by the Company which will be secured by a security interest in such aircraft. 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. The Company determined that the pass-through trusts are VIEs and that it does not have a variable interest in the pass-through trusts. Based on this analysis, the Company determined that it is not required to consolidate these pass-through trusts. As of September 30, 2015 , none of the escrowed funds had been used to purchase equipment notes. The $576.6 million of escrowed proceeds will be used to purchase equipment notes as the 15 new aircraft are delivered, beginning in October 2015. Equipment notes that are issued will be reported as debt on the Company's condensed balance sheets. Interest on the issued and outstanding equipment notes will be payable semiannually on April 1 and October 1 of each year, commencing on April 1, 2016, and principal on such equipment notes is scheduled for payment on April 1 and October 1 of certain years, commencing on October 1, 2016. Issued and outstanding Series A and Series B equipment notes mature in April 2028 and April 2024, respectively, and will accrue interest at a rate of 4.100% per annum and 4.450% per annum, respectively. Interest Expense Interest expense related to debt consists of the following: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Senior term loans $ 4,639 $ — $ 10,260 $ — Junior term loans 926 — 2,023 — Amortization of debt discounts 340 — 729 — Total $ 5,905 $ — $ 13,012 $ — |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events On October 22, 2015, the Company took delivery of one A321 aircraft, which was financed through its issuance of secured equipment notes on October 23, 2015, through the release of escrowed funds for such aircraft held in connection with the Company's 2015-1 EETC. Refer to Note 8 herein for further discussion of the Company's 2015-1 EETC. The Company recorded debt of $40.4 million on the Company's condensed balance sheets in respect of such equipment notes, and such equipment notes will accrue interest at a blended rate of 4.15% per annum. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 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 on February 18, 2015. |
Use of estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect both 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 | 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. ASU 2014-09 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 permitted, but not before interim and annual reporting periods beginning after December 15, 2016. 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 No. 2015-03 (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. 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) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Numerator Net income $ 97,114 $ 67,000 $ 242,820 $ 169,555 Denominator Weighted-average shares outstanding, basic 71,738 72,755 72,432 72,727 Effect of dilutive stock awards 146 548 248 557 Adjusted weighted-average shares outstanding, diluted 71,884 73,303 72,680 73,284 Net income per share Basic earnings per common share $ 1.35 $ 0.92 $ 3.35 $ 2.33 Diluted earnings per common share $ 1.35 $ 0.91 $ 3.34 $ 2.31 Anti-dilutive weighted-average shares 57 — 47 38 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued liabilities included in other current liabilities | Other current liabilities as of September 30, 2015 and December 31, 2014 consist of the following: September 30, 2015 December 31, 2014 (in thousands) Federal excise and other passenger taxes and fees payable $ 38,141 $ 42,628 Salaries and wages 32,501 34,209 Airport obligations 30,024 21,726 Aircraft and facility lease obligations 22,196 10,089 Aircraft maintenance 21,506 16,127 Fuel 9,403 9,508 Federal and state income tax payable — 3,286 Other 22,488 15,348 Other current liabilities $ 176,259 $ 152,921 |
Financial Instruments and Ris19
Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Into-plane fuel cost $ 114,081 $ 171,138 $ 349,549 $ 473,994 Realized losses (gains) related to fuel derivative contracts, net 1,736 151 8,575 151 Unrealized losses (gains) related to fuel derivative contracts, net 82 295 (1,892 ) 762 Aircraft fuel $ 115,899 $ 171,584 $ 356,232 $ 474,907 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Operating Aircraft Leases | As of September 30, 2015 , the Company's aircraft orders consisted of the following: Airbus Third-Party Lessor A320 A320NEO A321 A321NEO A320NEO Total remainder of 2015 3 1 4 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 27 10 5 95 |
Future minimum lease payments under noncancelable operating leases | Future minimum lease payments under noncancellable operating leases with initial or remaining terms in excess of one year at September 30, 2015 were as follows: Operating Leases Aircraft and Spare Engine Leases Property Facility Leases Operating Lease Obligations (in thousands) remainder of 2015 $ 53,847 $ 8,189 $ 62,036 2016 213,207 24,925 238,132 2017 199,628 26,802 226,430 2018 175,867 29,883 205,750 2019 147,756 29,304 177,060 2020 and thereafter 630,732 92,553 723,285 Total minimum lease payments $ 1,421,037 $ 211,656 $ 1,632,693 |
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 September 30, 2015 . Employee Groups Representative Amendable Date Percentage of Workforce Pilots Air Line Pilots Association, International (ALPA) August 2015 26% Flight Attendants Association of Flight Attendants (AFA-CWA) August 2007 43% Dispatchers Transport Workers Union (TWU) August 2018 1% Ramp Service Agents International Association of Machinists and Aerospace Workers (IAMAW) June 2020 3% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Carrying amount and estimated fair value, long-term debt | The carrying amounts and estimated fair values of the Company's long-term debt at September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Senior long-term debt $ 492.1 $ 477.4 $ 132.0 $ 132.0 Junior long-term debt 56.1 55.8 16.0 16.1 Total long-term debt $ 548.2 $ 533.2 $ 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 September 30, 2015 Total Level Level Level (in thousands) Cash and cash equivalents $ 748,896 $ 748,896 $ — $ — Jet fuel options 17 — — 17 Total assets $ 748,913 $ 748,896 $ — $ 17 Total liabilities $ — $ — $ — $ — Fair Value Measurements as of December 31, 2014 Total Level Level Level (in thousands) Cash and cash equivalents $ 632,784 $ 632,784 $ — $ — Jet fuel options 4,803 — — 4,803 Total assets $ 637,587 $ 632,784 $ — $ 4,803 Interest rate swaps $ 1,141 $ — $ 1,141 $ — Total liabilities $ 1,141 $ — $ 1,141 $ — |
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 September 30, 2015 (in thousands) Balance at June 30, 2015 $ 1,491 Total realized or unrealized gains (losses) included in earnings, net (1,818 ) Purchases 344 Sales — Settlements, net — Balance at September 30, 2015 $ 17 Jet Fuel Option Activity for the Nine Months Ended September 30, 2015 (in thousands) Balance at December 31, 2014 $ 4,803 Total realized or unrealized gains (losses) included in earnings, net (6,683 ) Purchases 2,474 Sales — Settlements, net (577 ) Balance at September 30, 2015 $ 17 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt is comprised of the following: As of Three Months Ended September 30, Nine Months Ended September 30, September 30, 2015 December 31, 2014 2015 2014 2015 2014 (in millions) (weighted-average interest rates) Senior term loans due through 2026 - 2027 $ 492.1 $ 132.0 4.10 % N/A 4.10 % N/A Junior term loans due through 2021 - 2022 56.1 16.0 6.90 % N/A 6.90 % N/A Long-term debt $ 548.2 $ 148.0 Less current maturities 37.8 10.4 Less unamortized discounts 10.3 2.4 Total $ 500.1 $ 135.2 |
Schedule of Maturities of Long-term Debt | At September 30, 2015 , long-term debt principal payments for the next five years and thereafter are as follows: September 30, 2015 (in millions) remainder of 2015 $ 9.6 2016 39.7 2017 41.8 2018 43.7 2019 45.8 2020 and thereafter 367.6 Total debt principal payments $ 548.2 |
Schedule of Interest Expense, Long-term Debt | Interest expense related to debt consists of the following: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Senior term loans $ 4,639 $ — $ 10,260 $ — Junior term loans 926 — 2,023 — Amortization of debt discounts 340 — 729 — Total $ 5,905 $ — $ 13,012 $ — |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator | ||||
Net income | $ 97,114 | $ 67,000 | $ 242,820 | $ 169,555 |
Denominator | ||||
Weighted-average shares outstanding, basic | 71,738 | 72,755 | 72,432 | 72,727 |
Effect of dilutive stock awards (in shares) | 146 | 548 | 248 | 557 |
Adjusted weighted-average shares outstanding, diluted | 71,884 | 73,303 | 72,680 | 73,284 |
Net income per share | ||||
Basic earnings per common share (in dollars per share) | $ 1.35 | $ 0.92 | $ 3.35 | $ 2.33 |
Diluted earnings per common share (in dollars per share) | $ 1.35 | $ 0.91 | $ 3.34 | $ 2.31 |
Anti-dilutive weighted-average shares | 57 | 0 | 47 | 38 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Federal excise and other passenger taxes and fees payable | $ 38,141 | $ 42,628 |
Salaries and wages | 32,501 | 34,209 |
Airport obligations | 30,024 | 21,726 |
Aircraft and facility lease obligations | 22,196 | 10,089 |
Aircraft maintenance | 21,506 | 16,127 |
Fuel | 9,403 | 9,508 |
Federal and state income tax payable | 0 | 3,286 |
Other | 22,488 | 15,348 |
Other current liabilities | 176,259 | $ 152,921 |
Effect of change in tax method | $ 35,100 |
Financial Instruments and Ris25
Financial Instruments and Risk Management (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Payments for premiums on fuel option derivatives | $ 300 | $ 2,500 | ||
Into-plane fuel cost | 114,081 | $ 171,138 | 349,549 | $ 473,994 |
Realized losses (gains) related to fuel derivative contracts, net | 1,736 | 151 | 8,575 | 151 |
Unrealized losses (gains) related to fuel derivative contracts, net | 82 | 295 | (1,892) | 762 |
Aircraft fuel | $ 115,899 | $ 171,584 | $ 356,232 | $ 474,907 |
Financial Instruments and Ris26
Financial Instruments and Risk Management - Narrative (Details) gal in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)aircraftderivative_instrument$ / galgal | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)aircraftderivative_instrument$ / galgal | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)$ / galgal | |
Derivative [Line Items] | |||||
Federal excise tax | $ 9,300,000 | ||||
Anticipated jet fuel consumption protected by hedges (in gallons) | gal | 15.3 | 15.3 | 88.7 | ||
Anticipated jet fuel consumption protected by hedges (as a percent) | 23.00% | 23.00% | 35.00% | ||
Unrealized gain (loss) on interest rate derivative instruments, net of deferred tax expense (benefit) of ($320), $0, ($511) and $0 | $ (553,000) | $ 0 | $ (909,000) | 0 | |
Unrealized gain (loss) on interest rate derivative instruments, tax | (320,000) | $ 0 | (511,000) | $ 0 | |
Accumulated other comprehensive loss | $ (1,627,000) | $ (1,627,000) | $ (718,000) | ||
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 settled | derivative_instrument | 6 | 6 | |||
Derivative, notional amount | $ 120,000,000 | $ 120,000,000 | |||
Accumulated other comprehensive loss | (1,627,000) | (1,627,000) | |||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on interest rate derivative instruments, net of deferred tax expense (benefit) of ($320), $0, ($511) and $0 | (553,000) | (909,000) | |||
Unrealized gain (loss) on interest rate derivative instruments, tax | 320,000 | 511,000 | |||
Loss reclassified from AOCI into earnings | 25,300 | 25,000 | |||
Loss reclassified from AOCI into earnings, tax | $ 14,800 | $ 15,000 | |||
Options Held [Member] | Fuel [Member] | |||||
Derivative [Line Items] | |||||
Derivative contract, weighted average ceiling price (in USD per gallon) | $ / gal | 1.92 | 1.92 | 2.07 |
Commitments and Contingencies -
Commitments and Contingencies - Aircraft Contractual Purchase Commitments (Details) | Sep. 30, 2015aircraft |
Long-term Purchase Commitment [Line Items] | |
Future Aircraft To Be Received, Remainder of FIscal Year | 4 |
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 | 95 |
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 | 3 |
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 | 27 |
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) ft² in Thousands, $ in Millions | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2015USD ($)ft²aaircraft_engineaircraftextension_option | Jul. 31, 2015USD ($)aircraftseat | Sep. 30, 2015USD ($)ft²aaircraft_engineaircraft | |
Aircraft [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Operating leases, lessee, number of leased assets | aircraft | 61 | 61 | |
Spare Engines [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Operating leases, lessee, number of leased assets | aircraft_engine | 11 | 11 | |
Hangar Facility [Member] | Operating Lease [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Area of land, hangar site | a | 10 | 10 | |
Area of hangar facility | ft² | 126 | 126 | |
Operating lease, initial term | 30 years | ||
Operating lease, number of extension options | extension_option | 2 | ||
Operating lease, extension term | 10 years | ||
Estimated future project costs | $ 32 | $ 32 | |
Aircraft [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of delivered aircraft with secured debt financing commitments | aircraft | 11 | ||
Property and equipment, useful life | 25 years | ||
Property and equipment, salvage value percentage | 10.00% | 10.00% | |
Airbus A320 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of aircraft held | aircraft | 76 | 76 | |
2015-2016 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of aircraft with secured debt financing commitments scheduled for delivery | aircraft | 15 | 15 | |
Airbus [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Costs to reconfigure aircraft seating | $ 0.6 | ||
Airbus [Member] | A320 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of aircraft with secured debt financing commitments scheduled for delivery | aircraft | 3 | 3 | |
Number of aircraft reconfigured for increased seating capacity | aircraft | 40 | ||
Airbus [Member] | A320 [Member] | Minimum [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of aircraft seats | seat | 178 | ||
Airbus [Member] | A320 [Member] | Maximum [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of aircraft seats | seat | 182 | ||
Airbus [Member] | 2015-2016 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of aircraft with secured debt financing commitments scheduled for delivery | aircraft | 15 | 15 | |
Airbus [Member] | 2015-2021 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of Aircraft without Secured Financing Commitments Scheduled for Delivery (in aircraft) | aircraft | 75 | 75 | |
Third Party Lessor [Member] | 2015-2016 [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of Direct Leased Aircraft Ordered From A Third Party | aircraft | 5 | 5 | |
Aircraft and Related Flight Equipment [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | $ 149 | $ 149 | |
Unrecorded Unconditional Purchase Obligation, Due in 2016 | 592 | 592 | |
Unrecorded Unconditional Purchase Obligation, Due in 2017 | 767 | 767 | |
Unrecorded Unconditional Purchase Obligation, Due in 2018 | 620 | 620 | |
Unrecorded Unconditional Purchase Obligation, Due in 2019 | 703 | 703 | |
Unrecorded Unconditional Purchase Obligation, Due in 2020 and beyond | 1,515 | 1,515 | |
Aircraft with Increased Seating Capacity [Member] | Airbus [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 13 | 13 | |
Unrecorded Unconditional Purchase Obligation, Due in 2016 | $ 11 | $ 11 | |
V2500 SelectOne Engine [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of spare aircraft engines ordered (in aircraft engine) | aircraft_engine | 4 | 4 | |
PurePower PW1100G-JM Engine [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Number of spare aircraft engines ordered (in aircraft engine) | aircraft_engine | 9 | 9 | |
Enhanced Equipment Trust Certificate [Member] | Aircraft and Related Flight Equipment [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Debt financing commitments | $ 576.6 | $ 576.6 |
Commitments and Contingencies29
Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
remainder of 2015 | $ 62,036 |
Future Minimum Payments Due, 2016 | 238,132 |
Future Minimum Payments Due, 2017 | 226,430 |
Future Minimum Payments Due, 2018 | 205,750 |
Future Minimum Payments Due, 2019 | 177,060 |
Future Minimum Payments Due, 2020 and thereafter | 723,285 |
Total minimum lease payments | 1,632,693 |
Aircraft and Spare Engine Leases [Member] | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
remainder of 2015 | 53,847 |
Future Minimum Payments Due, 2016 | 213,207 |
Future Minimum Payments Due, 2017 | 199,628 |
Future Minimum Payments Due, 2018 | 175,867 |
Future Minimum Payments Due, 2019 | 147,756 |
Future Minimum Payments Due, 2020 and thereafter | 630,732 |
Total minimum lease payments | 1,421,037 |
Property Facility Leases [Member] | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
remainder of 2015 | 8,189 |
Future Minimum Payments Due, 2016 | 24,925 |
Future Minimum Payments Due, 2017 | 26,802 |
Future Minimum Payments Due, 2018 | 29,883 |
Future Minimum Payments Due, 2019 | 29,304 |
Future Minimum Payments Due, 2020 and thereafter | 92,553 |
Total minimum lease payments | $ 211,656 |
Commitments and Contingencies30
Commitments and Contingencies - Fixed Maintenance Reserve Payments and Other Commitments (Details) $ in Millions | Sep. 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 | $ 1.9 |
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 | 1.2 |
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 - Litigation (Details) - Rosen v. Spirit Airlines and Legg v. Spirit Airlines [Member] | 1 Months Ended |
Aug. 31, 2014case | |
Loss Contingencies [Line Items] | |
Number of cases filed | 2 |
Previously certified as class action [Member] | |
Loss Contingencies [Line Items] | |
Number of cases filed | 1 |
Commitments and Contingencies32
Commitments and Contingencies - Credit Card Processing Arrangements (Details) - USD ($) | 9 Months Ended | |
Sep. 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 | $ 274,900,000 | $ 217,100,000 |
Commitments and Contingencies33
Commitments and Contingencies - Employees (Details) $ in Millions | 1 Months Ended | 9 Months Ended | ||
May. 31, 2015 | Aug. 31, 2014 | Sep. 30, 2015USD ($)airport | Dec. 31, 2014USD ($) | |
Concentration Risk [Line Items] | ||||
Number of airports in which entity operates | 56 | |||
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 | $ | $ 3.6 | $ 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) | 73.00% | |||
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) | 26.00% | |||
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) | 43.00% | |||
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) | 3.00% |
Fair Value Measurements - Inter
Fair Value Measurements - Interest Rate Swaps (Details) | 3 Months Ended |
Sep. 30, 2015aircraft | |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Number of aircraft delivered, subject to interest rate swaps | 3 |
Fair Value Measurements - Long-
Fair Value Measurements - Long-term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 548.2 | $ 148 |
Senior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 492.1 | 132 |
Junior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 56.1 | 16 |
Estimated Fair Value [Member] | Level 3 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 533.2 | 148.1 |
Estimated Fair Value [Member] | Level 3 [Member] | Senior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 477.4 | 132 |
Estimated Fair Value [Member] | Level 3 [Member] | Junior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 55.8 | $ 16.1 |
Carrying Value [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 548.2 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 748,896 | $ 632,784 |
Total assets | 748,913 | 637,587 |
Interest rate swaps | 0 | 1,141 |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 1,141 | |
Jet fuel options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Jet fuel options | 17 | 4,803 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 748,896 | 632,784 |
Total assets | 748,896 | 632,784 |
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 | |
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 | 0 | 1,141 |
Level 2 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 1,141 | |
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 | 17 | 4,803 |
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 | |
Level 3 [Member] | Jet fuel options [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Jet fuel options | $ 17 | $ 4,803 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Inputs (Details) - Jet fuel options [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | $ 1,491 | $ 4,803 |
Total realized or unrealized gains (losses) included in earnings, net | (1,818) | (6,683) |
Purchases | 344 | 2,474 |
Sales | 0 | 0 |
Settlements, net | 0 | (577) |
Ending Balance | $ 17 | $ 17 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 548,200 | $ 148,000 |
Less current maturities | 37,758 | 10,431 |
Less unamortized discounts | 10,300 | 2,400 |
Total | 500,147 | 135,232 |
Repayments of debt obligations | 15,800 | |
Senior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 492,100 | 132,000 |
Long-term Debt, Weighted Average Interest Rate | 4.10% | |
Junior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 56,100 | $ 16,000 |
Long-term Debt, Weighted Average Interest Rate | 6.90% |
Long-term Debt Future Maturitie
Long-term Debt Future Maturities (Details) $ in Millions | Sep. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,015 | $ 9.6 |
2,016 | 39.7 |
2,017 | 41.8 |
2,018 | 43.7 |
2,019 | 45.8 |
2020 and thereafter | 367.6 |
Long-term Debt | $ 548.2 |
Long-term Debt EETCs (Details)
Long-term Debt EETCs (Details) $ in Millions | 1 Months Ended | |
Aug. 31, 2015trust | Sep. 30, 2015USD ($)aircraft | |
2015-2016 [Member] | ||
Debt Instrument [Line Items] | ||
Number of aircraft with secured debt financing commitments scheduled for delivery | 15 | |
Airbus [Member] | 2015-2016 [Member] | ||
Debt Instrument [Line Items] | ||
Number of aircraft with secured debt financing commitments scheduled for delivery | 15 | |
Airbus [Member] | A321 [Member] | ||
Debt Instrument [Line Items] | ||
Number of aircraft with secured debt financing commitments scheduled for delivery | 12 | |
Airbus [Member] | A320 [Member] | ||
Debt Instrument [Line Items] | ||
Number of aircraft with secured debt financing commitments scheduled for delivery | 3 | |
Enhanced Equipment Trust Certificate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instruments, blended interest rate | 4.15% | |
Enhanced Equipment Trust Certificate [Member] | Capital Addition Purchase Commitments [Member] | ||
Debt Instrument [Line Items] | ||
Number of pass-through trusts | trust | 2 | |
Debt financing commitments | $ | $ 576.6 | |
A320 [Domain] | Enhanced Equipment Trust Certificate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.10% | |
Equipment Notes, Series B [Member] | Enhanced Equipment Trust Certificate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.45% |
Long-term Debt Interest Expense
Long-term Debt Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Amortization of debt discounts | $ 340 | $ 0 | $ 729 | $ 0 |
Total | 5,905 | 0 | 13,012 | 0 |
Senior Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | 4,639 | 0 | 10,260 | 0 |
Junior Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | $ 926 | $ 0 | $ 2,023 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Oct. 22, 2015USD ($)aircraft | Sep. 30, 2015USD ($) |
Subsequent Event [Line Items] | ||
Long-term debt | $ 548.2 | |
Airbus A321 [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Number of aircraft delivered | aircraft | 1 | |
Long-term debt | $ 40.4 | |
Debt instruments, blended interest rate | 4.15% |