Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 18, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 68,264,513 |
Condensed Statements of Operati
Condensed Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating revenues: | |||||||||||
Revenues | $ 904,330 | $ 851,771 | $ 704,138 | $ 666,182 | $ 687,227 | $ 700,185 | $ 589,957 | $ 2,460,239 | $ 1,977,369 | $ 2,643,552 | $ 2,320,021 |
Operating expenses: | |||||||||||
Aircraft fuel | 258,818 | 175,205 | 158,300 | 142,294 | 139,782 | 709,644 | 440,376 | 615,581 | 447,553 | ||
Salaries, wages and benefits | 185,043 | 136,815 | 134,114 | 129,892 | 127,138 | 527,895 | 391,144 | 527,959 | 472,471 | ||
Aircraft rent | 42,682 | 42,820 | 53,396 | 52,566 | 57,070 | 134,618 | 163,032 | 205,852 | 201,675 | ||
Landing fees and other rents | 54,542 | 46,117 | 48,498 | 45,592 | 40,448 | 162,774 | 134,538 | 180,655 | 151,679 | ||
Depreciation and amortization | 43,773 | 36,472 | 36,840 | 35,331 | 31,509 | 128,764 | 103,680 | 140,152 | 101,136 | ||
Maintenance, materials and repairs | 37,778 | 28,966 | 26,176 | 28,985 | 26,312 | 99,141 | 81,473 | 110,439 | 98,587 | ||
Distribution | 37,868 | 28,170 | 29,695 | 29,835 | 25,772 | 103,496 | 85,302 | 113,472 | 96,895 | ||
Special charges (credits) | (686) | 0 | 7,853 | 0 | 4,776 | 88,656 | 12,629 | 12,629 | 37,189 | ||
Loss on disposal of assets | 1,069 | 1,054 | 516 | 1,493 | 1,105 | 6,561 | 3,114 | 4,168 | 4,187 | ||
Other operating | 98,318 | 79,267 | 87,965 | 102,885 | 77,703 | 283,841 | 268,553 | 347,820 | 267,191 | ||
Total operating expenses | 759,205 | 574,886 | 583,353 | 568,873 | 531,615 | 2,245,390 | 1,683,841 | 2,258,727 | 1,878,563 | ||
Operating income | 145,125 | 91,296 | 103,874 | 131,312 | 58,342 | 214,849 | 293,528 | 384,825 | 441,458 | ||
Other (income) expense: | |||||||||||
Interest expense | 21,925 | 16,065 | 15,018 | 13,746 | 12,473 | 60,272 | 41,237 | 57,302 | 41,654 | ||
Capitalized interest | (2,657) | (3,668) | (3,203) | (3,342) | (3,580) | (7,205) | (10,125) | (13,793) | (12,705) | ||
Interest income | (4,776) | (2,990) | (2,605) | (1,828) | (1,313) | (13,272) | (5,746) | (8,736) | (5,276) | ||
Other expense | 302 | 145 | 114 | 104 | 3 | 623 | 221 | 366 | 528 | ||
Special charges, non-operating | 1,744 | 0 | 90,357 | 0 | |||||||
Total other (income) expense | 16,538 | 9,552 | 9,324 | 8,680 | 7,583 | 130,775 | 25,587 | 35,139 | 24,201 | ||
Income before income taxes | 128,587 | 81,744 | 94,550 | 122,632 | 50,759 | 84,074 | 267,941 | 349,686 | 417,257 | ||
Provision for income taxes | 31,107 | (165,231) | 34,506 | 45,391 | 19,498 | 20,262 | 99,395 | (65,836) | 153,774 | ||
Net income | $ 97,480 | $ 246,975 | $ 60,044 | $ 77,241 | $ 31,261 | $ 63,812 | $ 168,546 | $ 415,522 | $ 263,483 | ||
Basic earnings per share | $ 1.43 | $ 3.59 | $ 0.87 | $ 1.11 | $ 0.45 | $ 0.94 | $ 2.43 | $ 6 | $ 3.75 | ||
Diluted earnings per share | $ 1.42 | $ 3.58 | $ 0.86 | $ 1.11 | $ 0.45 | $ 0.93 | $ 2.42 | $ 5.99 | $ 3.74 | ||
Passenger [Member] | |||||||||||
Operating revenues: | |||||||||||
Revenues | $ 887,956 | 836,350 | 689,141 | $ 650,647 | $ 669,072 | $ 680,880 | $ 572,287 | $ 2,413,447 | $ 1,922,239 | $ 2,572,887 | $ 2,257,801 |
Other [Member] | |||||||||||
Operating revenues: | |||||||||||
Revenues | $ 16,374 | $ 15,421 | $ 14,997 | $ 15,535 | $ 18,155 | $ 19,305 | $ 17,670 | $ 46,792 | $ 55,130 | $ 70,665 | $ 62,220 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 97,480 | $ 60,044 | $ 63,812 | $ 168,546 |
Unrealized gain (loss) on short-term investment securities, net of deferred taxes of $(5), $7, $21 and ($6) | (7) | 13 | 70 | (11) |
Interest rate derivative loss reclassified into earnings, net of taxes of $27, $31, $66 and $92 | 52 | 53 | 172 | 160 |
Other comprehensive income | 45 | 66 | 242 | 149 |
Comprehensive income | $ 97,525 | $ 60,110 | $ 64,054 | $ 168,695 |
Condensed Statements of Compr_2
Condensed Statements of Comprehensive Income (Parenthetical) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect of the unrealized gain (loss) on short-term investment securities | $ (5) | $ 7 | $ 21 | $ (6) |
Loss reclassified from AOCI into earnings, tax | $ 27 | $ 31 | $ 66 | $ 92 |
Condensed Balance Sheets (unaud
Condensed Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 773,710 | $ 800,849 |
Short-term investment securities | 102,201 | 100,937 |
Accounts receivable, net | 63,526 | 49,323 |
Aircraft maintenance deposits, net | 104,472 | 175,615 |
Income tax receivable | 78,506 | 69,844 |
Prepaid expenses and other current assets | 83,692 | 85,542 |
Total current assets | 1,206,107 | 1,282,110 |
Property and equipment: | ||
Flight equipment | 3,023,898 | 2,291,110 |
Ground property and equipment | 178,339 | 155,166 |
Less accumulated depreciation | (296,157) | (207,808) |
Total property and equipment | 2,906,080 | 2,238,468 |
Deposits on flight equipment purchase contracts | 253,825 | 253,687 |
Long-term aircraft maintenance deposits | 144,642 | 150,617 |
Deferred heavy maintenance, net | 191,632 | 99,915 |
Other long-term assets | 79,445 | 121,003 |
Total assets | 4,781,731 | 4,145,800 |
Current liabilities: | ||
Accounts payable | 63,190 | 22,822 |
Air traffic liability | 323,627 | 263,711 |
Current maturities of long-term debt and capital leases | 150,862 | 115,430 |
Other current liabilities | 287,142 | 262,370 |
Total current liabilities | 824,821 | 664,333 |
Long-term debt and capital leases, less current maturities | 1,770,904 | 1,387,498 |
Deferred income taxes | 332,119 | 308,814 |
Deferred gains and other long-term liabilities | 20,105 | 22,581 |
Shareholders’ equity: | ||
Common stock | 7 | 7 |
Additional paid-in-capital | 368,451 | 360,153 |
Treasury stock, at cost | (66,999) | (65,854) |
Retained earnings | 1,533,545 | 1,469,732 |
Accumulated other comprehensive income (loss) | (1,222) | (1,464) |
Total shareholders’ equity | 1,833,782 | 1,762,574 |
Total liabilities and shareholders’ equity | $ 4,781,731 | $ 4,145,800 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities: | ||
Net income | $ 63,812 | $ 168,546 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Losses reclassified from other comprehensive income | 238 | 252 |
Stock-based compensation | 8,293 | 6,723 |
Allowance for doubtful accounts (recoveries) | (12) | (53) |
Amortization of deferred gains and losses and debt issuance costs | 6,508 | 6,415 |
Depreciation and amortization | 128,764 | 103,680 |
Deferred income tax expense | 21,243 | 97,833 |
Loss on disposal of assets | 6,561 | 3,114 |
Lease termination costs | 0 | 12,629 |
Special charges, non-operating | 90,357 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (14,191) | (5,046) |
Aircraft maintenance deposits, net | 10,543 | (28,422) |
Prepaid income taxes | 0 | (160) |
Long-term deposits and other assets | (5,760) | (69,307) |
Deferred heavy maintenance | (121,643) | (12,032) |
Income tax receivable | (8,662) | 0 |
Accounts payable | 38,771 | 13,829 |
Air traffic liability | 59,916 | 73,639 |
Other liabilities | 23,896 | 15,345 |
Other | (136) | 339 |
Net cash provided by operating activities | 308,498 | 387,324 |
Investing activities: | ||
Purchase of available-for-sale investment securities | (100,228) | (96,851) |
Proceeds from the maturity of available-for-sale investment securities | 99,134 | 95,881 |
Proceeds from sale of property and equipment | 9,500 | 0 |
Pre-delivery deposits for flight equipment, net of refunds | (132,297) | (121,702) |
Capitalized interest | (6,116) | (8,054) |
Purchase of property and equipment | (420,586) | (428,913) |
Net cash used in investing activities | (550,593) | (559,639) |
Financing activities: | ||
Proceeds from issuance of long-term debt | 518,171 | 405,827 |
Proceeds from stock options exercised | 5 | 45 |
Payments on debt obligations | (93,225) | (63,352) |
Payments on capital lease obligations | (205,566) | (291) |
Repurchase of common stock | (1,145) | (1,238) |
Debt issuance costs | (3,284) | (5,896) |
Net cash provided by financing activities | 214,956 | 335,095 |
Net (decrease) increase in cash and cash equivalents | (27,139) | 162,780 |
Cash and cash equivalents at beginning of period | 800,849 | 700,900 |
Cash and cash equivalents at end of period | 773,710 | 863,680 |
Cash payments for: | ||
Interest, net of capitalized interest | 35,977 | 22,541 |
Income taxes paid, net of refunds | 3,366 | 4,352 |
Non-cash transactions: | ||
Capital expenditures funded by capital lease borrowings | $ (315) | $ (1,370) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
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 fairly present 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 Company's Annual Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission on February 13, 2018. 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 may 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. |
Recent Accounting Developments
Recent Accounting Developments | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Developments | Recent Accounting Developments Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers 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. The Company adopted this guidance on January 1, 2018 utilizing the full retrospective method of adoption allowed by the standard, in order to provide for comparative results in all periods presented. The most significant impact of this ASU is the elimination of the incremental cost method for frequent flier program accounting, which requires the Company to re-value and record a liability associated with customer flight miles earned as part of the Company’s frequent flier program with a relative fair value approach. The classification and timing of recognition of certain ancillary fees is also impacted by the adoption of ASU 2014-09. While the adoption did not have a significant impact on earnings, the classification of certain revenues, such as bags, seats and other travel-related fees are now deemed part of the single performance obligation of providing passenger transportation. Refer to Note 3, Revenue Recognition for information regarding the Company's adoption of ASU 2014-09 and to Note 4, Revenue Disaggregation for the presentation of passenger revenues disaggregated by fare and non-fare. Financial Instruments In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10).” ASU 2016-01 makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for the Company for interim and annual periods beginning January 1, 2018. The Company adopted this guidance on January 1, 2018 with no material impact on the financial statements. Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows." The standard is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This standard is effective for the Company for fiscal years, and interim periods within those years, beginning January 1, 2018. The Company adopted this guidance on January 1, 2018 with no material impact on the financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." This standard will require all lessees to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, for all leases with a term greater than 12 months. The standard is effective for the Company effective January 1, 2019. Early adoption is permitted. However, the Company does not plan to early adopt. The Company has established a cross functional project plan and is in the process of testing items necessary to account for the new standard. The Company expects this standard to have a significant impact on its condensed balance sheets due to the recognition of right-of-use assets and lease liabilities for leases. The Company does not expect the adoption to have a significant impact on its lease classification, a material impact on its condensed statement of operations, or a notable impact on its liquidity. Additionally, the Company does not expect the standard to have a material impact on the Company’s debt-covenant compliance under its current agreements. Refer to Note 10, Commitments and Contingencies for information regarding the Company's undiscounted future lease payments and the timing of those payments. In July 2018, the FASB issued additional guidance on the accounting for leases. The guidance provides companies with another transition method that allows entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings as of the date of adoption. Under this method, previously presented years’ financial positions and results would not be adjusted. The new guidance also provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component if (1) the non-lease components would otherwise be accounted for under the new revenue recognition standard, (2) both the timing and pattern of transfer are the same for the non-lease components and associated lease component, and (3) if accounted for separately, the lease component would be classified as an operating lease. The Company is assessing the use of practical expedients in its accounting for leases. Accounting for Credit Losses In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses." The standard requires the use of an "expected loss" model on certain types of financial instruments. The standard also amends the impairment model for available-for-sale securities and requires estimated credit losses to be recorded as allowances rather than as reductions to the amortized cost of the securities. This standard is effective for the Company for fiscal years, and interim periods within those years, beginning January 1, 2020, with early adoption permitted. The Company is evaluating the new guidance, but does not expect it to have a material impact on its financial statements. Income Taxes |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Passenger revenues Fare revenues. Tickets sold are initially deferred as “air traffic liability.” Passenger fare revenues are recognized at time of departure when transportation is provided. All tickets sold by the Company are nonrefundable. An unused ticket expires at the date of scheduled travel and is recognized as revenue at the date of scheduled travel. Passenger revenues reported prior to the adoption of ASU 2014-09 are now reported as fare revenues within passenger revenues in the Company's disaggregated revenue table within Note 4, Revenue Disaggregation. As of December 31, 2017 and 2016, the Company had air traffic liability ("ATL") balances of $263.7 million and $220.2 million , respectively. As of September 30, 2018, all of the ATL balance as of December 31, 2017 has been recognized. Non-fare revenues. The adoption of ASU 2014-09 impacted the classification of certain ancillary items such as bags, seats and other travel-related fees, since they are deemed part of the single performance obligation of providing passenger transportation. These ancillary items are now recognized in non-fare revenues within passenger revenues in the Company's disaggregated revenue table within Note 4, Revenue Disaggregation. Changes and cancellations. Customers may elect to change or cancel their itinerary prior to the date of departure. For changes, a service charge is recognized at time of departure of newly scheduled travel and is deducted from the face value of the original purchase price of the ticket, and the original ticket becomes invalid. For cancellations, a service charge is assessed and the amount remaining after deducting the service charge is called a credit shell which generally expires 60 days from the date the credit shell is created and can be used towards the purchase of a new ticket and the Company’s other service offerings. Both the service charge and credit shell amounts are recorded as deferred revenue and amounts expected to expire unused are estimated based on historical experience. Estimating the amount of credits that will go unused involves some level of subjectivity and judgment. However, given the relatively short period of time to expiration, this does not have a significant impact on the Company's financial statements. Other revenues Other revenues primarily consist of the marketing component of the sale of frequent flyer miles to the Company's credit card partner and commissions revenue from the sale of various items such as hotels and rental cars. Frequent Flyer Program The Company's frequent flyer program generates customer loyalty by rewarding customers with mileage credits to travel on Spirit. When traveling, customers earn redeemable mileage credits for each mile flown on Spirit. Customers can also earn mileage credits through participating companies such as the co-branded Spirit credit card. Mileage credits are redeemable by customers in future periods for air travel on Spirit. To reflect the mileage credits earned, the program includes two types of transactions that are considered revenue arrangements with multiple performance obligations: (1) mileage credits earned with travel and (2) mileage credits sold to co-branded credit card partner. The adoption of ASU 2014-09 eliminated the incremental cost method for frequent flier program accounting, which required the Company to re-value and record a liability associated with customer flight miles earned with travel as part of the Company’s frequent flier program with a relative fair value. Upon adoption of ASU 2014-09 on January 1, 2018, the Company recorded an increase to its air traffic liability of $12.4 million . Passenger ticket sales earning mileage credits. Passenger ticket sales earning mileage credits provide customers with (1) mileage credits earned and (2) air transportation. The Company values each performance obligation on a standalone basis. To value the mileage credits earned, the Company considers the quantitative value a passenger receives by redeeming miles for a ticket rather than paying cash, which is referred to as equivalent ticket value ("ETV"). The Company defers revenue for the mileage credits when earned and recognizes loyalty travel awards in passenger revenue as the miles are redeemed and services are provided. The Company records the air transportation portion of the passenger ticket sales in air traffic liability and recognizes passenger revenue when transportation is provided or if the ticket goes unused. Sale of mileage credits. Customers may earn mileage credits based on their spending with the Company's co-branded credit card company with which the Company has an agreement to sell mileage credits. The contract to sell mileage credits under this agreement has multiple performance obligations. During the nine months ended September 30, 2018 and 2017, total cash sales from this agreement were $29.6 million and $38.1 million , respectively, which are allocated to travel and other performance obligations, as discussed below. The Company's co-brand credit card agreement provides for joint marketing where cardholders earn mileage credits for making purchases using co-branded cards. During 2015, the Company extended its agreement with the administrator of the FREE SPIRIT affinity credit card program to extend through 2022. The Company accounts for this agreement consistently with the accounting method that allocates the consideration received to the individual products and services delivered. The value is allocated based on the relative selling prices of those products and services, which generally consists of (i) travel miles to be awarded, (ii) licensing of brand and access to member lists and (iii) advertising and marketing efforts. The Company determined the best estimate of the selling prices by considering discounted cash flow analysis using multiple inputs and assumptions, including: (1) the expected number of miles awarded and number of miles redeemed, (2) ETV for the award travel obligation, (3) licensing of brand and access to member lists and (4) advertising and marketing efforts. The Company defers the amount for award travel obligation as part of loyalty deferred revenue within air traffic liability on the balance sheet and recognizes loyalty travel awards in passenger revenue as the mileage credits are used for travel. Revenue allocated to the remaining performance obligations, primarily marketing components, is recorded in other revenue over time as miles are delivered. Mileage breakage. For mileage credits that the Company estimates are not likely to be redeemed ("breakage"), the Company recognizes the associated value proportionally during the period in which the remaining mileage credits are redeemed. Management uses statistical models to estimate breakage based on historical redemption patterns. A change in assumptions as to the period over which mileage credits are expected to be redeemed, the actual redemption activity for mileage credits or the estimated fair value of mileage credits expected to be redeemed could have an impact on revenues in the year in which the change occurs and in future years. Current activity of frequent flyer program. Mileage credits are combined in one homogeneous pool and are not separately identifiable. As such, revenue is comprised of miles that were part of the frequent flyer deferred revenue balance at the beginning of the period as well as miles that were issued during the period. The following tables show adjustments made due to the adoption of ASU 2014-09 on the December 31, 2017 and 2016 statements of operations. Previously reported results were derived from audited financial statements included in Company's Annual Report on Form 10-K for the fiscal years ended December 31, 2017 and December 31, 2016, as applicable. Year Ended December 31, 2017 (in thousands, except share and per share data) As Reported Topic 606 Adjustment As Adjusted Operating revenues: Passenger $ 1,366,034 $ 1,206,853 $ 2,572,887 Other 1,281,632 (1,210,967 ) 70,665 Total operating revenues 2,647,666 (4,114 ) 2,643,552 Operating expenses: Aircraft fuel 615,581 — 615,581 Salaries, wages and benefits 527,959 — 527,959 Aircraft rent 205,852 — 205,852 Landing fees and other rents 180,655 — 180,655 Depreciation and amortization 140,152 — 140,152 Maintenance, materials and repairs 110,439 — 110,439 Distribution 113,620 (148 ) 113,472 Special charges 12,629 — 12,629 Loss on disposal of assets 4,168 — 4,168 Other operating 347,820 — 347,820 Total operating expenses 2,258,875 (148 ) 2,258,727 Operating income 388,791 (3,966 ) 384,825 Other (income) expense: Interest expense 57,302 — 57,302 Capitalized interest (13,793 ) — (13,793 ) Interest income (8,736 ) — (8,736 ) Other expense 366 — 366 Total other (income) expense 35,139 — 35,139 Income before income taxes 353,652 (3,966 ) 349,686 Provision (benefit) for income taxes (66,954 ) 1,118 (65,836 ) Net income $ 420,606 $ (5,084 ) $ 415,522 Basic earnings per share $ 6.08 $ (0.07 ) $ 6.00 Diluted earnings per share $ 6.06 $ (0.07 ) $ 5.99 Year Ended December 31, 2016 (in thousands, except share and per share data) As Reported Topic 606 Adjustment As Adjusted Operating revenues: Passenger $ 1,200,621 $ 1,057,180 $ 2,257,801 Other 1,121,335 (1,059,115 ) 62,220 Total operating revenues 2,321,956 (1,935 ) 2,320,021 Operating expenses: Salaries, wages and benefits 472,471 — 472,471 Aircraft fuel 447,553 — 447,553 Aircraft rent 201,675 — 201,675 Landing fees and other rents 151,679 — 151,679 Depreciation and amortization 101,136 — 101,136 Maintenance, materials and repairs 98,587 — 98,587 Distribution 96,627 268 96,895 Special charges 37,189 — 37,189 Loss on disposal of assets 4,187 — 4,187 Other operating 267,191 — 267,191 Total operating expenses 1,878,295 268 1,878,563 Operating income 443,661 (2,203 ) 441,458 Other (income) expense: Interest expense 41,654 — 41,654 Capitalized interest (12,705 ) — (12,705 ) Interest income (5,276 ) — (5,276 ) Other expense 528 — 528 Total other (income) expense 24,201 — 24,201 Income before income taxes 419,460 (2,203 ) 417,257 Provision (benefit) for income taxes 154,581 (807 ) 153,774 Net income $ 264,879 $ (1,396 ) $ 263,483 Basic earnings per share $ 3.77 $ (0.02 ) $ 3.75 Diluted earnings per share $ 3.76 $ (0.02 ) $ 3.74 The following table shows adjusted balances after the adoption of ASU 2014-09 on the quarterly statements of operations for each quarter of 2017. For the Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (in thousands, except share and per share data) Operating revenues: Passenger $ 572,287 $ 680,880 $ 669,072 $ 650,647 Other 17,670 19,305 18,155 15,535 Total operating revenues 589,957 700,185 687,227 666,182 Operating expenses: Aircraft fuel 139,782 142,294 158,300 175,205 Salaries, wages and benefits 127,138 129,892 134,114 136,815 Aircraft rent 57,070 52,566 53,396 42,820 Landing fees and other rents 40,448 45,592 48,498 46,117 Depreciation and amortization 31,509 35,331 36,840 36,472 Maintenance, materials and repairs 26,312 28,985 26,176 28,966 Distribution 25,772 29,835 29,695 28,170 Special charges 4,776 — 7,853 — Loss on disposal of assets 1,105 1,493 516 1,054 Other operating 77,703 102,885 87,965 79,267 Total operating expenses 531,615 568,873 583,353 574,886 Operating income 58,342 131,312 103,874 91,296 Other (income) expense: Interest expense 12,473 13,746 15,018 16,065 Capitalized interest (3,580 ) (3,342 ) (3,203 ) (3,668 ) Interest income (1,313 ) (1,828 ) (2,605 ) (2,990 ) Other expense 3 104 114 145 Total other (income) expense 7,583 8,680 9,324 9,552 Income before income taxes 50,759 122,632 94,550 81,744 Provision (benefit) for income taxes 19,498 45,391 34,506 (165,231 ) Net income $ 31,261 $ 77,241 $ 60,044 $ 246,975 Basic earnings per share $ 0.45 $ 1.11 $ 0.87 $ 3.59 Diluted earnings per share $ 0.45 $ 1.11 $ 0.86 $ 3.58 The following table shows quarterly adjustments made due to the adoption of ASU 2014-09 on the statements of operations for 2017. Adjustments for the Quarter Ended Full Year 2017 As Reported March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Full Year 2017 Adjusted (in thousands, except share and per share data) Operating revenues: Passenger $ 1,366,034 $ 272,525 $ 308,959 $ 312,865 $ 312,504 $ 2,572,887 Other 1,281,632 (274,314 ) (310,455 ) (312,869 ) (313,329 ) 70,665 Total operating revenues 2,647,666 (1,789 ) (1,496 ) (4 ) (825 ) 2,643,552 Operating expenses: Aircraft fuel 615,581 — — — — 615,581 Salaries, wages and benefits 527,959 — — — — 527,959 Aircraft rent 205,852 — — — — 205,852 Landing fees and other rents 180,655 — — — — 180,655 Depreciation and amortization 140,152 — — — — 140,152 Maintenance, materials and repairs 110,439 — — — — 110,439 Distribution 113,620 (726 ) (73 ) 226 425 113,472 Special charges 12,629 — — — — 12,629 Loss on disposal of assets 4,168 — — — — 4,168 Other operating 347,820 — — — — 347,820 Total operating expenses 2,258,875 (726 ) (73 ) 226 425 2,258,727 Operating income 388,791 (1,063 ) (1,423 ) (230 ) (1,250 ) 384,825 Other (income) expense: Interest expense 57,302 — — — — 57,302 Capitalized interest (13,793 ) — — — — (13,793 ) Interest income (8,736 ) — — — — (8,736 ) Other expense 366 — — — — 366 Total other (income) expense 35,139 — — — — 35,139 Income before income taxes 353,652 (1,063 ) (1,423 ) (230 ) (1,250 ) 349,686 Provision (benefit) for income taxes (66,954 ) (389 ) (522 ) (84 ) 2,113 (65,836 ) Net income $ 420,606 $ (674 ) $ (901 ) $ (146 ) $ (3,363 ) $ 415,522 Basic earnings per share $ 6.08 $ (0.01 ) $ (0.01 ) $ — $ (0.05 ) $ 6.00 Diluted earnings per share $ 6.06 $ (0.01 ) $ (0.01 ) $ — $ (0.05 ) $ 5.99 The following tables show adjustments made due to the adoption of ASU 2014-09 on the December 31, 2017 and 2016 balance sheets. Previously reported results were derived from audited financial statements included in Company's Annual Report on Form 10-K for the fiscal years ended December 31, 2017 and December 31, 2016, as applicable. December 31, 2017 (in thousands) As Reported Topic 606 Adjustment As Adjusted Assets Current assets: Cash and cash equivalents $ 800,849 $ — $ 800,849 Short-term investment securities 100,937 — 100,937 Accounts receivable, net 49,323 — 49,323 Aircraft maintenance deposits, net 175,615 — 175,615 Income tax receivable 69,844 — 69,844 Prepaid expenses and other current assets 83,692 1,850 85,542 Total current assets 1,280,260 1,850 1,282,110 Property and equipment: Flight equipment 2,291,110 — 2,291,110 Ground property and equipment 155,166 — 155,166 Less accumulated depreciation (207,808 ) — (207,808 ) 2,238,468 — 2,238,468 Deposits on flight equipment purchase contracts 253,687 — 253,687 Long-term aircraft maintenance deposits 150,617 — 150,617 Deferred heavy maintenance, net 99,915 — 99,915 Other long-term assets 121,003 — 121,003 Total assets $ 4,143,950 $ 1,850 $ 4,145,800 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 22,822 $ — $ 22,822 Air traffic liability 246,404 17,307 263,711 Current maturities of long-term debt 115,430 — 115,430 Other current liabilities 262,370 — 262,370 Total current liabilities 647,026 17,307 664,333 Long-term debt, less current maturities 1,387,498 — 1,387,498 Deferred income taxes 313,140 (4,326 ) 308,814 Deferred gains and other long-term liabilities 19,205 3,376 22,581 Shareholders’ equity: Common stock: Common stock, $0.0001 par value, 240,000,000 shares authorized at December 31, 2017; 69,770,795 issued and 68,196,964 outstanding as of December 31, 2017 7 — 7 Additional paid-in-capital 360,153 — 360,153 Treasury stock, at cost: 1,573,831 shares as of December 31, 2017 (65,854 ) — (65,854 ) Retained earnings 1,484,239 (14,507 ) 1,469,732 Accumulated other comprehensive income (loss) (1,464 ) — (1,464 ) Total shareholders’ equity 1,777,081 (14,507 ) 1,762,574 Total liabilities and shareholders’ equity $ 4,143,950 $ 1,850 $ 4,145,800 December 31, 2016 (in thousands) As Reported Topic 606 Adjustment As Adjusted Assets Current assets: Cash and cash equivalents $ 700,900 $ — $ 700,900 Short-term investment securities 100,155 — 100,155 Accounts receivable, net 41,136 — 41,136 Aircraft maintenance deposits, net 87,035 — 87,035 Income tax receivable — — — Prepaid expenses and other current assets 46,619 1,702 48,321 Total current assets 975,845 1,702 977,547 Property and equipment: Flight equipment 1,461,525 — 1,461,525 Ground property and equipment 126,206 — 126,206 Less accumulated depreciation (122,509 ) — (122,509 ) 1,465,222 — 1,465,222 Deposits on flight equipment purchase contracts 325,688 — 325,688 Long-term aircraft maintenance deposits 199,415 — 199,415 Deferred heavy maintenance, net 75,534 — 75,534 Other long-term assets 110,223 — 110,223 Total assets $ 3,151,927 $ 1,702 $ 3,153,629 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 15,193 $ — $ 15,193 Air traffic liability 206,392 13,792 220,184 Current maturities of long-term debt 84,354 — 84,354 Other current liabilities 226,011 — 226,011 Total current liabilities 531,950 13,792 545,742 Long-term debt, less current maturities 897,359 — 897,359 Deferred income taxes 308,143 (5,443 ) 302,700 Deferred gains and other long-term liabilities 19,868 2,776 22,644 Shareholders’ equity: Common stock: Common stock, $0.0001 par value, 240,000,000 shares authorized at December 31, 2016; 73,549,872 issued and 69,326,202 outstanding as of December 31, 2016 7 — 7 Additional paid-in-capital 551,004 — 551,004 Treasury stock, at cost: 4,223,670 shares as of December 31, 2016 (218,692 ) — (218,692 ) Retained earnings 1,063,633 (9,423 ) 1,054,210 Accumulated other comprehensive income (loss) (1,345 ) — (1,345 ) Total shareholders’ equity 1,394,607 (9,423 ) 1,385,184 Total liabilities and shareholders’ equity $ 3,151,927 $ 1,702 $ 3,153,629 Operating revenues is comprised of passenger revenues, which includes fare and non-fare revenues, and other revenues. The following table shows disaggregated operating revenues for each quarter of 2018 and 2017. For the Quarter Ended September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 (in thousands) Operating revenues: Fare $ 476,660 $ 439,549 $ 342,695 $ 337,324 $ 355,593 $ 371,443 $ 299,035 Non-fare 411,296 396,801 346,446 313,323 313,479 309,437 273,252 Total passenger revenues 887,956 836,350 689,141 650,647 669,072 680,880 572,287 Other revenues 16,374 15,421 14,997 15,535 18,155 19,305 17,670 Total operating revenues $ 904,330 $ 851,771 $ 704,138 $ 666,182 $ 687,227 $ 700,185 $ 589,957 The following table shows disaggregated operating revenues for years ended December 31, 2017 and 2016. Year Ended December 31, 2017 2016 (in thousands) As Reported Topic 606 Adjustment As Adjusted As Reported Topic 606 Adjustment As Adjusted Operating revenues: Fare $ 1,366,034 $ (2,639 ) $ 1,363,395 $ 1,200,621 $ (2,514 ) $ 1,198,107 Non-fare — 1,209,492 1,209,492 — 1,059,694 1,059,694 Total passenger revenues 1,366,034 1,206,853 2,572,887 1,200,621 1,057,180 2,257,801 Other revenues 1,281,632 (1,210,967 ) 70,665 1,121,335 (1,059,115 ) 62,220 Total operating revenues $ 2,647,666 $ (4,114 ) $ 2,643,552 $ 2,321,956 $ (1,935 ) $ 2,320,021 The Company is managed as a single business unit that provides air transportation for passengers. Operating revenues by geographic region as defined by the Department of Transportation ("DOT") area are summarized below: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) DOT—Domestic $ 819.3 $ 636.3 $ 2,236.3 $ 1,819.2 DOT—Latin America 85.0 50.9 223.9 158.2 Total $ 904.3 $ 687.2 $ 2,460.2 $ 1,977.4 |
Revenue Disaggregation
Revenue Disaggregation | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disaggregation | Revenue Recognition Passenger revenues Fare revenues. Tickets sold are initially deferred as “air traffic liability.” Passenger fare revenues are recognized at time of departure when transportation is provided. All tickets sold by the Company are nonrefundable. An unused ticket expires at the date of scheduled travel and is recognized as revenue at the date of scheduled travel. Passenger revenues reported prior to the adoption of ASU 2014-09 are now reported as fare revenues within passenger revenues in the Company's disaggregated revenue table within Note 4, Revenue Disaggregation. As of December 31, 2017 and 2016, the Company had air traffic liability ("ATL") balances of $263.7 million and $220.2 million , respectively. As of September 30, 2018, all of the ATL balance as of December 31, 2017 has been recognized. Non-fare revenues. The adoption of ASU 2014-09 impacted the classification of certain ancillary items such as bags, seats and other travel-related fees, since they are deemed part of the single performance obligation of providing passenger transportation. These ancillary items are now recognized in non-fare revenues within passenger revenues in the Company's disaggregated revenue table within Note 4, Revenue Disaggregation. Changes and cancellations. Customers may elect to change or cancel their itinerary prior to the date of departure. For changes, a service charge is recognized at time of departure of newly scheduled travel and is deducted from the face value of the original purchase price of the ticket, and the original ticket becomes invalid. For cancellations, a service charge is assessed and the amount remaining after deducting the service charge is called a credit shell which generally expires 60 days from the date the credit shell is created and can be used towards the purchase of a new ticket and the Company’s other service offerings. Both the service charge and credit shell amounts are recorded as deferred revenue and amounts expected to expire unused are estimated based on historical experience. Estimating the amount of credits that will go unused involves some level of subjectivity and judgment. However, given the relatively short period of time to expiration, this does not have a significant impact on the Company's financial statements. Other revenues Other revenues primarily consist of the marketing component of the sale of frequent flyer miles to the Company's credit card partner and commissions revenue from the sale of various items such as hotels and rental cars. Frequent Flyer Program The Company's frequent flyer program generates customer loyalty by rewarding customers with mileage credits to travel on Spirit. When traveling, customers earn redeemable mileage credits for each mile flown on Spirit. Customers can also earn mileage credits through participating companies such as the co-branded Spirit credit card. Mileage credits are redeemable by customers in future periods for air travel on Spirit. To reflect the mileage credits earned, the program includes two types of transactions that are considered revenue arrangements with multiple performance obligations: (1) mileage credits earned with travel and (2) mileage credits sold to co-branded credit card partner. The adoption of ASU 2014-09 eliminated the incremental cost method for frequent flier program accounting, which required the Company to re-value and record a liability associated with customer flight miles earned with travel as part of the Company’s frequent flier program with a relative fair value. Upon adoption of ASU 2014-09 on January 1, 2018, the Company recorded an increase to its air traffic liability of $12.4 million . Passenger ticket sales earning mileage credits. Passenger ticket sales earning mileage credits provide customers with (1) mileage credits earned and (2) air transportation. The Company values each performance obligation on a standalone basis. To value the mileage credits earned, the Company considers the quantitative value a passenger receives by redeeming miles for a ticket rather than paying cash, which is referred to as equivalent ticket value ("ETV"). The Company defers revenue for the mileage credits when earned and recognizes loyalty travel awards in passenger revenue as the miles are redeemed and services are provided. The Company records the air transportation portion of the passenger ticket sales in air traffic liability and recognizes passenger revenue when transportation is provided or if the ticket goes unused. Sale of mileage credits. Customers may earn mileage credits based on their spending with the Company's co-branded credit card company with which the Company has an agreement to sell mileage credits. The contract to sell mileage credits under this agreement has multiple performance obligations. During the nine months ended September 30, 2018 and 2017, total cash sales from this agreement were $29.6 million and $38.1 million , respectively, which are allocated to travel and other performance obligations, as discussed below. The Company's co-brand credit card agreement provides for joint marketing where cardholders earn mileage credits for making purchases using co-branded cards. During 2015, the Company extended its agreement with the administrator of the FREE SPIRIT affinity credit card program to extend through 2022. The Company accounts for this agreement consistently with the accounting method that allocates the consideration received to the individual products and services delivered. The value is allocated based on the relative selling prices of those products and services, which generally consists of (i) travel miles to be awarded, (ii) licensing of brand and access to member lists and (iii) advertising and marketing efforts. The Company determined the best estimate of the selling prices by considering discounted cash flow analysis using multiple inputs and assumptions, including: (1) the expected number of miles awarded and number of miles redeemed, (2) ETV for the award travel obligation, (3) licensing of brand and access to member lists and (4) advertising and marketing efforts. The Company defers the amount for award travel obligation as part of loyalty deferred revenue within air traffic liability on the balance sheet and recognizes loyalty travel awards in passenger revenue as the mileage credits are used for travel. Revenue allocated to the remaining performance obligations, primarily marketing components, is recorded in other revenue over time as miles are delivered. Mileage breakage. For mileage credits that the Company estimates are not likely to be redeemed ("breakage"), the Company recognizes the associated value proportionally during the period in which the remaining mileage credits are redeemed. Management uses statistical models to estimate breakage based on historical redemption patterns. A change in assumptions as to the period over which mileage credits are expected to be redeemed, the actual redemption activity for mileage credits or the estimated fair value of mileage credits expected to be redeemed could have an impact on revenues in the year in which the change occurs and in future years. Current activity of frequent flyer program. Mileage credits are combined in one homogeneous pool and are not separately identifiable. As such, revenue is comprised of miles that were part of the frequent flyer deferred revenue balance at the beginning of the period as well as miles that were issued during the period. The following tables show adjustments made due to the adoption of ASU 2014-09 on the December 31, 2017 and 2016 statements of operations. Previously reported results were derived from audited financial statements included in Company's Annual Report on Form 10-K for the fiscal years ended December 31, 2017 and December 31, 2016, as applicable. Year Ended December 31, 2017 (in thousands, except share and per share data) As Reported Topic 606 Adjustment As Adjusted Operating revenues: Passenger $ 1,366,034 $ 1,206,853 $ 2,572,887 Other 1,281,632 (1,210,967 ) 70,665 Total operating revenues 2,647,666 (4,114 ) 2,643,552 Operating expenses: Aircraft fuel 615,581 — 615,581 Salaries, wages and benefits 527,959 — 527,959 Aircraft rent 205,852 — 205,852 Landing fees and other rents 180,655 — 180,655 Depreciation and amortization 140,152 — 140,152 Maintenance, materials and repairs 110,439 — 110,439 Distribution 113,620 (148 ) 113,472 Special charges 12,629 — 12,629 Loss on disposal of assets 4,168 — 4,168 Other operating 347,820 — 347,820 Total operating expenses 2,258,875 (148 ) 2,258,727 Operating income 388,791 (3,966 ) 384,825 Other (income) expense: Interest expense 57,302 — 57,302 Capitalized interest (13,793 ) — (13,793 ) Interest income (8,736 ) — (8,736 ) Other expense 366 — 366 Total other (income) expense 35,139 — 35,139 Income before income taxes 353,652 (3,966 ) 349,686 Provision (benefit) for income taxes (66,954 ) 1,118 (65,836 ) Net income $ 420,606 $ (5,084 ) $ 415,522 Basic earnings per share $ 6.08 $ (0.07 ) $ 6.00 Diluted earnings per share $ 6.06 $ (0.07 ) $ 5.99 Year Ended December 31, 2016 (in thousands, except share and per share data) As Reported Topic 606 Adjustment As Adjusted Operating revenues: Passenger $ 1,200,621 $ 1,057,180 $ 2,257,801 Other 1,121,335 (1,059,115 ) 62,220 Total operating revenues 2,321,956 (1,935 ) 2,320,021 Operating expenses: Salaries, wages and benefits 472,471 — 472,471 Aircraft fuel 447,553 — 447,553 Aircraft rent 201,675 — 201,675 Landing fees and other rents 151,679 — 151,679 Depreciation and amortization 101,136 — 101,136 Maintenance, materials and repairs 98,587 — 98,587 Distribution 96,627 268 96,895 Special charges 37,189 — 37,189 Loss on disposal of assets 4,187 — 4,187 Other operating 267,191 — 267,191 Total operating expenses 1,878,295 268 1,878,563 Operating income 443,661 (2,203 ) 441,458 Other (income) expense: Interest expense 41,654 — 41,654 Capitalized interest (12,705 ) — (12,705 ) Interest income (5,276 ) — (5,276 ) Other expense 528 — 528 Total other (income) expense 24,201 — 24,201 Income before income taxes 419,460 (2,203 ) 417,257 Provision (benefit) for income taxes 154,581 (807 ) 153,774 Net income $ 264,879 $ (1,396 ) $ 263,483 Basic earnings per share $ 3.77 $ (0.02 ) $ 3.75 Diluted earnings per share $ 3.76 $ (0.02 ) $ 3.74 The following table shows adjusted balances after the adoption of ASU 2014-09 on the quarterly statements of operations for each quarter of 2017. For the Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (in thousands, except share and per share data) Operating revenues: Passenger $ 572,287 $ 680,880 $ 669,072 $ 650,647 Other 17,670 19,305 18,155 15,535 Total operating revenues 589,957 700,185 687,227 666,182 Operating expenses: Aircraft fuel 139,782 142,294 158,300 175,205 Salaries, wages and benefits 127,138 129,892 134,114 136,815 Aircraft rent 57,070 52,566 53,396 42,820 Landing fees and other rents 40,448 45,592 48,498 46,117 Depreciation and amortization 31,509 35,331 36,840 36,472 Maintenance, materials and repairs 26,312 28,985 26,176 28,966 Distribution 25,772 29,835 29,695 28,170 Special charges 4,776 — 7,853 — Loss on disposal of assets 1,105 1,493 516 1,054 Other operating 77,703 102,885 87,965 79,267 Total operating expenses 531,615 568,873 583,353 574,886 Operating income 58,342 131,312 103,874 91,296 Other (income) expense: Interest expense 12,473 13,746 15,018 16,065 Capitalized interest (3,580 ) (3,342 ) (3,203 ) (3,668 ) Interest income (1,313 ) (1,828 ) (2,605 ) (2,990 ) Other expense 3 104 114 145 Total other (income) expense 7,583 8,680 9,324 9,552 Income before income taxes 50,759 122,632 94,550 81,744 Provision (benefit) for income taxes 19,498 45,391 34,506 (165,231 ) Net income $ 31,261 $ 77,241 $ 60,044 $ 246,975 Basic earnings per share $ 0.45 $ 1.11 $ 0.87 $ 3.59 Diluted earnings per share $ 0.45 $ 1.11 $ 0.86 $ 3.58 The following table shows quarterly adjustments made due to the adoption of ASU 2014-09 on the statements of operations for 2017. Adjustments for the Quarter Ended Full Year 2017 As Reported March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Full Year 2017 Adjusted (in thousands, except share and per share data) Operating revenues: Passenger $ 1,366,034 $ 272,525 $ 308,959 $ 312,865 $ 312,504 $ 2,572,887 Other 1,281,632 (274,314 ) (310,455 ) (312,869 ) (313,329 ) 70,665 Total operating revenues 2,647,666 (1,789 ) (1,496 ) (4 ) (825 ) 2,643,552 Operating expenses: Aircraft fuel 615,581 — — — — 615,581 Salaries, wages and benefits 527,959 — — — — 527,959 Aircraft rent 205,852 — — — — 205,852 Landing fees and other rents 180,655 — — — — 180,655 Depreciation and amortization 140,152 — — — — 140,152 Maintenance, materials and repairs 110,439 — — — — 110,439 Distribution 113,620 (726 ) (73 ) 226 425 113,472 Special charges 12,629 — — — — 12,629 Loss on disposal of assets 4,168 — — — — 4,168 Other operating 347,820 — — — — 347,820 Total operating expenses 2,258,875 (726 ) (73 ) 226 425 2,258,727 Operating income 388,791 (1,063 ) (1,423 ) (230 ) (1,250 ) 384,825 Other (income) expense: Interest expense 57,302 — — — — 57,302 Capitalized interest (13,793 ) — — — — (13,793 ) Interest income (8,736 ) — — — — (8,736 ) Other expense 366 — — — — 366 Total other (income) expense 35,139 — — — — 35,139 Income before income taxes 353,652 (1,063 ) (1,423 ) (230 ) (1,250 ) 349,686 Provision (benefit) for income taxes (66,954 ) (389 ) (522 ) (84 ) 2,113 (65,836 ) Net income $ 420,606 $ (674 ) $ (901 ) $ (146 ) $ (3,363 ) $ 415,522 Basic earnings per share $ 6.08 $ (0.01 ) $ (0.01 ) $ — $ (0.05 ) $ 6.00 Diluted earnings per share $ 6.06 $ (0.01 ) $ (0.01 ) $ — $ (0.05 ) $ 5.99 The following tables show adjustments made due to the adoption of ASU 2014-09 on the December 31, 2017 and 2016 balance sheets. Previously reported results were derived from audited financial statements included in Company's Annual Report on Form 10-K for the fiscal years ended December 31, 2017 and December 31, 2016, as applicable. December 31, 2017 (in thousands) As Reported Topic 606 Adjustment As Adjusted Assets Current assets: Cash and cash equivalents $ 800,849 $ — $ 800,849 Short-term investment securities 100,937 — 100,937 Accounts receivable, net 49,323 — 49,323 Aircraft maintenance deposits, net 175,615 — 175,615 Income tax receivable 69,844 — 69,844 Prepaid expenses and other current assets 83,692 1,850 85,542 Total current assets 1,280,260 1,850 1,282,110 Property and equipment: Flight equipment 2,291,110 — 2,291,110 Ground property and equipment 155,166 — 155,166 Less accumulated depreciation (207,808 ) — (207,808 ) 2,238,468 — 2,238,468 Deposits on flight equipment purchase contracts 253,687 — 253,687 Long-term aircraft maintenance deposits 150,617 — 150,617 Deferred heavy maintenance, net 99,915 — 99,915 Other long-term assets 121,003 — 121,003 Total assets $ 4,143,950 $ 1,850 $ 4,145,800 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 22,822 $ — $ 22,822 Air traffic liability 246,404 17,307 263,711 Current maturities of long-term debt 115,430 — 115,430 Other current liabilities 262,370 — 262,370 Total current liabilities 647,026 17,307 664,333 Long-term debt, less current maturities 1,387,498 — 1,387,498 Deferred income taxes 313,140 (4,326 ) 308,814 Deferred gains and other long-term liabilities 19,205 3,376 22,581 Shareholders’ equity: Common stock: Common stock, $0.0001 par value, 240,000,000 shares authorized at December 31, 2017; 69,770,795 issued and 68,196,964 outstanding as of December 31, 2017 7 — 7 Additional paid-in-capital 360,153 — 360,153 Treasury stock, at cost: 1,573,831 shares as of December 31, 2017 (65,854 ) — (65,854 ) Retained earnings 1,484,239 (14,507 ) 1,469,732 Accumulated other comprehensive income (loss) (1,464 ) — (1,464 ) Total shareholders’ equity 1,777,081 (14,507 ) 1,762,574 Total liabilities and shareholders’ equity $ 4,143,950 $ 1,850 $ 4,145,800 December 31, 2016 (in thousands) As Reported Topic 606 Adjustment As Adjusted Assets Current assets: Cash and cash equivalents $ 700,900 $ — $ 700,900 Short-term investment securities 100,155 — 100,155 Accounts receivable, net 41,136 — 41,136 Aircraft maintenance deposits, net 87,035 — 87,035 Income tax receivable — — — Prepaid expenses and other current assets 46,619 1,702 48,321 Total current assets 975,845 1,702 977,547 Property and equipment: Flight equipment 1,461,525 — 1,461,525 Ground property and equipment 126,206 — 126,206 Less accumulated depreciation (122,509 ) — (122,509 ) 1,465,222 — 1,465,222 Deposits on flight equipment purchase contracts 325,688 — 325,688 Long-term aircraft maintenance deposits 199,415 — 199,415 Deferred heavy maintenance, net 75,534 — 75,534 Other long-term assets 110,223 — 110,223 Total assets $ 3,151,927 $ 1,702 $ 3,153,629 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 15,193 $ — $ 15,193 Air traffic liability 206,392 13,792 220,184 Current maturities of long-term debt 84,354 — 84,354 Other current liabilities 226,011 — 226,011 Total current liabilities 531,950 13,792 545,742 Long-term debt, less current maturities 897,359 — 897,359 Deferred income taxes 308,143 (5,443 ) 302,700 Deferred gains and other long-term liabilities 19,868 2,776 22,644 Shareholders’ equity: Common stock: Common stock, $0.0001 par value, 240,000,000 shares authorized at December 31, 2016; 73,549,872 issued and 69,326,202 outstanding as of December 31, 2016 7 — 7 Additional paid-in-capital 551,004 — 551,004 Treasury stock, at cost: 4,223,670 shares as of December 31, 2016 (218,692 ) — (218,692 ) Retained earnings 1,063,633 (9,423 ) 1,054,210 Accumulated other comprehensive income (loss) (1,345 ) — (1,345 ) Total shareholders’ equity 1,394,607 (9,423 ) 1,385,184 Total liabilities and shareholders’ equity $ 3,151,927 $ 1,702 $ 3,153,629 Operating revenues is comprised of passenger revenues, which includes fare and non-fare revenues, and other revenues. The following table shows disaggregated operating revenues for each quarter of 2018 and 2017. For the Quarter Ended September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 (in thousands) Operating revenues: Fare $ 476,660 $ 439,549 $ 342,695 $ 337,324 $ 355,593 $ 371,443 $ 299,035 Non-fare 411,296 396,801 346,446 313,323 313,479 309,437 273,252 Total passenger revenues 887,956 836,350 689,141 650,647 669,072 680,880 572,287 Other revenues 16,374 15,421 14,997 15,535 18,155 19,305 17,670 Total operating revenues $ 904,330 $ 851,771 $ 704,138 $ 666,182 $ 687,227 $ 700,185 $ 589,957 The following table shows disaggregated operating revenues for years ended December 31, 2017 and 2016. Year Ended December 31, 2017 2016 (in thousands) As Reported Topic 606 Adjustment As Adjusted As Reported Topic 606 Adjustment As Adjusted Operating revenues: Fare $ 1,366,034 $ (2,639 ) $ 1,363,395 $ 1,200,621 $ (2,514 ) $ 1,198,107 Non-fare — 1,209,492 1,209,492 — 1,059,694 1,059,694 Total passenger revenues 1,366,034 1,206,853 2,572,887 1,200,621 1,057,180 2,257,801 Other revenues 1,281,632 (1,210,967 ) 70,665 1,121,335 (1,059,115 ) 62,220 Total operating revenues $ 2,647,666 $ (4,114 ) $ 2,643,552 $ 2,321,956 $ (1,935 ) $ 2,320,021 The Company is managed as a single business unit that provides air transportation for passengers. Operating revenues by geographic region as defined by the Department of Transportation ("DOT") area are summarized below: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) DOT—Domestic $ 819.3 $ 636.3 $ 2,236.3 $ 1,819.2 DOT—Latin America 85.0 50.9 223.9 158.2 Total $ 904.3 $ 687.2 $ 2,460.2 $ 1,977.4 |
Special Charges
Special Charges | 9 Months Ended |
Sep. 30, 2018 | |
Special Charges and Credits [Abstract] | |
Special Charges | Special Charges Special Charges (Credits), Operating During the first quarter of 2018, the Company negotiated and amended the collective bargaining agreement with the Air Line Pilots Association, International ("ALPA"), under the guidance of the National Mediation Board ("NMB"). In connection with the amended agreement, the Company incurred a one-time ratification incentive of $80.2 million , including payroll taxes, and an $8.5 million adjustment related to other contractual provisions. As a result, the Company recorded $88.7 million in special charges (credits) within operating expenses in the condensed statement of operations for the nine months ended September 30, 2018 . As of September 30, 2018 , the Company has paid $76.2 million of the ratification incentive with the remainder expected to be paid during the fourth quarter of 2018. During the nine months ended September 30, 2017 , the Company purchased one engine and one aircraft which were previously financed under operating lease agreements. The purchase price of the 1 engine and 1 aircraft was $8.1 million and $20.0 million , respectively, comprised of a cash payment of $3.8 million and $12.6 million , respectively, and the non-cash application of maintenance reserves and security deposits held by the previous lessor of $4.3 million and $7.4 million , respectively. The Company estimated the fair value of the engine and aircraft to be $3.1 million and $11.9 million , respectively, and has recorded the 1 purchased engine and 1 aircraft at fair value within flight equipment on the condensed balance sheets. The Company determined the valuation of the engine and aircraft based on a third-party appraisal considering the condition of the engine and aircraft (a Level 3 measurement). The Company recognized $4.8 million and $7.9 million as a cost of terminating the lease within special charges (credits) in the condensed statement of operations, respectively, made up of the excess of the purchase price paid over the fair value of the engine and the aircraft, less other non-cash items of $0.2 million and $0.2 million , respectively. Special Charges, Non-Operating During the nine months ended September 30, 2018 , the Company recorded $90.4 million , in special charges, non-operating within other (income) expense in the statement of operations. During the first quarter of 2018, the Company entered into an aircraft purchase agreement for the purchase of 14 A319 aircraft previously operated under operating leases by the Company. The aggregate gross purchase price for the 14 aircraft was $285.0 million , and the price for each aircraft at the time of the sale was comprised of a cash payment net of the amount of maintenance reserves and security deposits for such aircraft held by the applicable lessor pursuant to the lease for such aircraft. The contract was deemed a lease modification which resulted in a change of classification from operating leases to capital leases for the 14 aircraft. During the first quarter of 2018, the capital lease assets were recorded at the lower of cost or fair value of the aircraft within flight equipment on the condensed balance sheets. During the second quarter of 2018, the purchase of the 14 |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2018 2017 (in thousands, except per share amounts) Numerator Net income $ 97,480 $ 60,044 $ 63,812 $ 168,546 Denominator Weighted-average shares outstanding, basic 68,254 69,370 68,243 69,363 Effect of dilutive stock awards 249 88 103 174 Adjusted weighted-average shares outstanding, diluted 68,503 69,458 68,346 69,537 Net income per share Basic earnings per common share $ 1.43 $ 0.87 $ 0.94 $ 2.43 Diluted earnings per common share $ 1.42 $ 0.86 $ 0.93 $ 2.42 Anti-dilutive weighted-average shares 5 124 192 76 |
Short-term Investment Securitie
Short-term Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Short-term Investment Securities The Company's short-term investment securities are classified as available-for-sale and consist of U.S. Treasury and U.S. government agency securities with contractual maturities of 12 months or less. These securities are stated at fair value within current assets on the Company's condensed balance sheets. Realized gains and losses on sales of investments, if any, are reflected in non-operating income (expense) in the condensed statements of operations. As of September 30, 2018 and December 31, 2017 , the Company had $102.2 million and $100.9 million in short-term available-for-sale investment securities, respectively. During the nine months ended September 30, 2018 , these investments earned interest income at a weighted-average fixed rate of approximately 1.5% . For the three and nine months ended September 30, 2018 , an unrealized loss of $7 thousand and an unrealized gain of $70 thousand , net of deferred taxes of $5 thousand and $21 thousand , respectively, was recorded within accumulated other comprehensive income ("AOCI") related to these investment securities. For the three and nine months ended September 30, 2017 , an unrealized gain of $13 thousand and an unrealized loss of $11 thousand , net of deferred taxes of $7 thousand and $6 thousand , respectively, was recorded within AOCI related to these investment securities. The Company has not recognized any realized gains or losses related to these securities as the Company has not transacted any sale of these securities. As of September 30, 2018 and December 31, 2017 , $34 thousand and $105 thousand |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Other current liabilities as of September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 (in thousands) Salaries and wages $ 81,278 $ 54,338 Federal excise and other passenger taxes and fees payable 55,743 42,036 Airport obligations 47,476 56,299 Aircraft maintenance 26,438 33,033 Fuel 21,637 25,171 Interest payable 18,965 11,384 Aircraft and facility lease obligations 12,236 16,992 Other 23,369 23,117 Other current liabilities $ 287,142 $ 262,370 |
Financial Instruments and Risk
Financial Instruments and Risk Management | 9 Months Ended |
Sep. 30, 2018 | |
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 uses 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 hedge 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. The Company records financial derivative instruments at fair value, which includes an evaluation of each counterparty's credit risk. As of September 30, 2018 , the Company did not hold any derivatives with requirements to post collateral. Fuel Derivative Instruments From time to time, the Company may enter into fuel derivative contracts in order to mitigate the risk of future volatility in fuel prices. The Company's fuel derivative contracts, if any, 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 any 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 enter into any fuel derivative instruments during the nine months ended September 30, 2018 and 2017 and did not have any outstanding fuel derivatives as of September 30, 2018 and December 31, 2017 . Historically, the Company has not elected hedge accounting on any fuel derivative instruments entered into and, as a result, changes in the fair value of fuel derivative contracts, if any, were recorded in aircraft fuel expense. Interest Rate Swaps From time to time, the Company may enter into interest rate swaps to fix the benchmark interest rate component of interest payments or for other reasons. 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. Interest rate swaps may be designated as cash flow hedges. The Company generally 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 AOCI. As of September 30, 2018 and December 31, 2017 , the Company did not have any outstanding interest rate swaps. 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. During the nine months ended September 30, 2018 and 2017 , there were no unrealized gains or losses recorded within AOCI related to these instruments as they settled in 2015. For the three and nine months ended September 30, 2018 , the Company reclassified interest rate swap losses of $52 thousand and $172 thousand , net of tax of $27 thousand and $66 thousand , respectively, into earnings. For the three and nine months ended September 30, 2017 , the Company reclassified interest rate swap losses of $53 thousand and $160 thousand , net of tax of $31 thousand and $92 thousand , respectively, into earnings. As of September 30, 2018 and December 31, 2017 , $1.2 million and $1.4 million |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
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. During the first quarter of 2018, the Company negotiated revisions to its A320 aircraft order. The Company originally had 14 A320neo aircraft scheduled for delivery in 2019. Pursuant to the revisions, 5 of the 14 scheduled A320neo aircraft were converted to A320ceo aircraft and are scheduled to be delivered in the remainder of 2018 and 2019. During the third quarter of 2018, the Company entered into operating lease agreements for the lease of seven A320neos that are scheduled to be delivered in the remainder of 2018 and 2019. As of September 30, 2018 , the Company's aircraft orders consisted of the following: Airbus Third-Party Lessor A320ceo A320neo A320neo Total remainder of 2018 5 3 8 2019 2 9 4 15 2020 16 16 2021 18 18 7 43 7 57 During the first quarter of 2018, the Company entered into an aircraft purchase agreement for the purchase of 14 A319 aircraft, which were previously financed under operating lease agreements. The contract was deemed a lease modification which resulted in a change of classification from operating leases to capital leases for the 14 aircraft. As a result, the Company recorded a short-term capital lease asset of $236.7 million within flight equipment and a short-term capital lease obligation of $143.8 million , net of the related maintenance reserves and security deposits, within current maturities of long-term debt and capital leases on the condensed balance sheet as of March 31, 2018. The purchase of all 14 aircraft was completed during the second quarter of 2018 for an aggregate gross purchase price of $285.0 million , which was comprised of cash payments, net of the application of cash maintenance and security deposits held by the previous lessor. For additional information, refer to Note 5, Special Charges. During the first quarter of 2018, the Company entered into an agreement to purchase six new engines. As of September 30, 2018, the Company had purchased all six engines, unencumbered. In addition, during the second quarter of 2018, the Company sold 5 used engines for $9.5 million at a loss of $4.4 million which is recorded within loss on disposal of assets in the statement of operations. The Company also has two spare engine orders for V2500 SelectTwo 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 2018 through 2023 . Purchase commitments for these aircraft and engines, including estimated amounts for contractual price escalations and pre-delivery payments, are expected to be $210.2 million for the remainder of 2018 , $592.1 million in 2019 , $810.8 million in 2020 , $775.4 million in 2021 , $17.0 million in 2022 , and $8.0 million in 2023 and beyond . As of September 30, 2018 , the Company had secured debt financing commitments of $39.1 million for 1 aircraft, delivered in October 2018. In addition, the Company has secured financing for seven aircraft to be leased directly from a third-party lessor, scheduled for delivery in 2018 through 2019. Aircraft rent commitments for these 7 leased aircraft are expected to be approximately $1.0 million for the remainder of 2018, $27.2 million in 2019, $29.4 million in 2020, $29.4 million in 2021, $29.4 million in 2022, and $235.9 million in 2023 and beyond. As of September 30, 2018 , the Company does not have financing commitments in place for the remaining 49 Airbus aircraft currently on firm order, which are scheduled for delivery in 2018 through 2021 . Interest commitments related to the secured debt financing of 55 delivered aircraft as of September 30, 2018 are $21.6 million for the remainder of 2018, $76.3 million in 2019 , $69.7 million in 2020 , $63.2 million in 2021 , $56.8 million in 2022 , and $179.4 million in 2023 and beyond . For principal commitments related to these financed aircraft, refer to Note 12, Debt and Other Obligations. As of September 30, 2018 , principal and interest commitments related to the Company's future secured debt financing of 1 undelivered aircraft under the Series 2017-1 EETC are $0 for the remainder of 2018 , $4.4 million in 2019 , $4.0 million in 2020 , $3.3 million in 2021 , $3.1 million in 2022 , and $34.0 million in 2023 and beyond . As of September 30, 2018 , the Company had a fleet consisting of 121 A320 family aircraft. As of September 30, 2018 , this fleet was comprised of 44 aircraft financed under operating leases, with lease term expirations between 2021 and 2029, and 77 purchased aircraft, of which 22 were purchased off lease and are currently unencumbered. In addition, as of September 30, 2018 , the Company had 12 spare engines financed under operating leases with lease term expiration dates ranging from 2019 to 2027, and owned 6 unencumbered spare engines of which 1 was purchased off lease. One of the Company's leased aircraft has variable rent payments, which fluctuate based on changes in London Interbank Offered Rate ("LIBOR"). The Company entered into sale leaseback transactions with third-party aircraft lessors for some of these aircraft and engine leases. Deferred losses resulting from these sale 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 gains 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 A320ceos from 178 to 182 seats ("reconfiguration"). The reconfiguration of the aircraft commenced in the first quarter of 2016 and was completed in the second quarter of 2018. As of September 30, 2018 , the Company had no further commitments related to this agreement. The amounts related to the reconfiguration are capitalized within flight equipment on the balance sheet. Future minimum lease payments under capital leases and noncancellable operating leases at September 30, 2018 were as follows: Capital Leases Aircraft and Spare Engine Operating Leases Property Facility Operating Leases Total Operating and Capital Lease Obligations (in thousands) remainder of 2018 $ 165 $ 42,762 $ 15,122 $ 58,049 2019 625 167,360 45,018 213,003 2020 249 161,876 29,636 191,761 2021 28 160,185 16,645 176,858 2022 — 146,904 14,403 161,307 2023 and thereafter — 419,925 101,897 521,822 Total minimum lease payments $ 1,067 $ 1,099,012 $ 222,721 $ 1,322,800 Less amount representing interest 49 Present value of minimum lease payments $ 1,018 Less current portion 596 Long-term portion $ 422 The majority of the Company's capital lease obligations relate to the lease of computer equipment used by the Company's flight crew. Payments related to the lease of computer equipment are fixed for the 3 -year term of the lease. Aircraft rent expense consists of monthly lease rents for aircraft and spare engines under the terms of the Company's aircraft and spare engine lease agreements 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, and probable and estimable return condition obligations. 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 aircraft and engine 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. A majority of these maintenance reserve payments are calculated based on a utilization measure, such as flight hours or cycles, while some maintenance reserve payments are fixed, time-based contractual amounts. Fixed maintenance reserve payments for these aircraft and related flight equipment, including estimated amounts for contractual price escalations, are expected to be $1.8 million for the remainder of 2018 , $5.8 million in 2019 , $5.6 million in 2020 , $5.7 million in 2021 , $4.9 million in 2022 , and $12.9 million in 2023 and beyond . These lease agreements generally provide that maintenance reserves are reimbursable to the Company upon completion of the maintenance event. Some of the master lease agreements 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, 2018 , the Company is 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 other miscellaneous subscriptions and services as of September 30, 2018 : $2.5 million for the remainder of 2018 , $12.6 million in 2019 , $12.7 million in 2020 , $9.9 million in 2021 , $10.0 million in 2022 , and $66.6 million thereafter . During the first quarter of 2018, the Company entered into a contract renewal with its reservation system provider which expires in 2028. 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. 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 that its credit card processors hold to cover refunds to customers if the Company fails to fulfill its flight obligations. The Company's credit card processors do not require the Company to maintain cash collateral provided that the Company satisfies certain liquidity and other financial covenants. Failure to meet these covenants would provide the processors the right to place a holdback resulting in a commensurate reduction of unrestricted cash. As of September 30, 2018 and December 31, 2017 , the Company was in compliance with such liquidity and other financial covenants in its credit card processing agreements 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, 2018 and December 31, 2017 , was $341.5 million and $286.3 million , respectively. Employees The Company has 4 union-represented employee groups that together represented approximately 76% of all employees at September 30, 2018 . The table below sets forth the Company's employee groups and status of the collective bargaining agreements as of September 30, 2018 . Employee Groups Representative Amendable Date Percentage of Workforce Pilots Air Line Pilots Association, International ("ALPA") February 2023 27% Flight Attendants Association of Flight Attendants ("AFA-CWA") May 2021 44% Dispatchers Professional Airline Flight Control Association ("PAFCA") October 2023 1% Ramp Service Agents International Association of Machinists and Aerospace Workers ("IAMAW") June 2020 4% In August 2015 , the Company's collective bargaining agreement with its pilots, represented by ALPA, became amendable. In June 2016 , ALPA requested the services of the National Mediation Board ("NMB") to facilitate negotiations for an amended agreement and the Company joined ALPA in the request. In January 2018 , under the guidance of the NMB assigned mediators, the parties reached a tentative agreement. In February 2018, the pilot group voted to approve the new five -year agreement with the Company. The new agreement includes a one-time ratification incentive and other negotiated contractual provisions which were recorded in special charges (credits) within operating expenses in the condensed statement of operations for the nine months ended September 30, 2018 . For additional information, refer to Note 5, Special Charges. In December 2017, the Professional Airline Flight Control Association ("PAFCA") filed an application with the NMB seeking to represent the Company's dispatchers, who were previously represented by the Transport Workers Union ("TWU"). In January 2018, the NMB determined that a representation election would be held. The voting period for the representation election took place through February 20, 2018 and the dispatchers elected to be represented by the PAFCA. In June 2018, the Company commenced negotiations with PAFCA for an amended agreement with its dispatchers. In October 2018, PAFCA and the Company reached a tentative agreement for a new five -year agreement, which was ratified by the PAFCA members on October 17, 2018. The terms of the new agreement are currently in effect. In June 2018, the NMB notified the Company that the TWU filed an application seeking a representation election for the Company's passenger service agents. The NMB determined that a representation election would be held and the voting period for the election took place through September 4, 2018. The Company’s passenger service agents voted to be represented by the TWU, but the representation applies only to the Company’s Fort Lauderdale station where the Company has direct employees in the passenger service classification. The Company and the TWU will meet in late October 2018 to begin negotiating a collective bargaining agreement. 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 $5.6 million and $3.9 million in health care claims as of September 30, 2018 and December 31, 2017 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
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 From time to time, the Company may enter into fuel derivative contracts in order to mitigate the risk of future volatility in fuel prices. 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, if any. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company has not historically elected hedge accounting on its fuel derivative instruments, if any. As a result, the Company would record the fair value adjustment of any 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 any 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 any derivative instruments executed with the same counterparty under a master netting arrangement. The Company determines fair value of any 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, if any, 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. 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. As of September 30, 2018 and December 31, 2017 , the Company had no outstanding jet fuel derivatives. Long-Term Debt The estimated fair value of the Company's term loan 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 the Level 3 long-term debt. The estimated fair value of the Company's publicly and non- publicly held EETC debt agreements has been determined to be Level 2 as the Company utilizes quoted market prices in markets with low trading volumes to estimate the fair value of its Level 2 long-term debt. The carrying amounts and estimated fair values of the Company's long-term debt at September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Fair Value Level Hierarchy Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Senior term loans $ 391.4 $ 395.5 $ 417.9 $ 435.3 Level 3 Junior term loans 33.2 33.6 39.3 40.4 Level 3 Fixed-rate loans 493.9 487.2 518.0 528.6 Level 3 2015-1 EETC Class A 393.6 389.8 408.6 420.9 Level 2 2015-1 EETC Class B 84.0 83.5 92.0 94.2 Level 2 2015-1 EETC Class C 115.2 114.4 — — Level 2 2017-1 EETC Class AA 223.3 213.6 37.5 37.4 Level 2 2017-1 EETC Class A 74.4 71.1 12.5 12.6 Level 2 2017-1 EETC Class B 76.7 73.3 13.8 13.8 Level 2 2017-1 EETC Class C 78.9 78.3 — — Level 2 Total long-term debt $ 1,964.6 $ 1,940.3 $ 1,539.6 $ 1,583.2 Cash and Cash Equivalents Cash and cash equivalents at September 30, 2018 and December 31, 2017 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. Short-term Investment Securities Short-term investment securities at September 30, 2018 and December 31, 2017 are classified as available-for-sale and consist of U.S. Treasury and U.S. government agency securities with contractual maturities of 12 months or less. The Company's short-term investment securities are categorized as Level 1 instruments, as the Company uses quoted market prices in active markets when determining the fair value of these securities. For additional information, refer to Note 7, Short-term Investment Securities. Assets and liabilities measured at gross fair value on a recurring basis are summarized below: Fair Value Measurements as of September 30, 2018 Total Level Level Level (in millions) Cash and cash equivalents $ 773.7 $ 773.7 $ — $ — Short-term investment securities 102.2 102.2 — — Total assets $ 875.9 $ 875.9 $ — $ — Total liabilities $ — $ — $ — $ — Fair Value Measurements as of December 31, 2017 Total Level Level Level (in millions) Cash and cash equivalents $ 800.8 $ 800.8 $ — $ — Short-term investment securities 100.9 100.9 — — Total assets $ 901.7 $ 901.7 $ — $ — Total liabilities $ — $ — $ — $ — The Company had no transfers of assets or liabilities between any of the above levels during the periods ended September 30, 2018 and December 31, 2017 . |
Debt and Other Obligations
Debt and Other Obligations | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Other Obligations | Debt and Other Obligations As of September 30, 2018 , the Company had outstanding non-public and public debt instruments. During the nine months ended September 30, 2018 , the Company issued additional debt through the 2015-1 and 2017-1 EETCs described below. 2017-1 Class AA, Class A and Class B EETCs In November 2017, the Company created three separate pass-through trusts, which issued $420.5 million aggregate face amount of Series 2017-1 Class AA, Class A and Class B EETCs in connection with the financing of 7 new Airbus A320 aircraft and 5 new Airbus A321 aircraft. 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, are released and used to purchase equipment notes which are issued by the Company and secured by the Company's aircraft. Interest on the issued and outstanding equipment notes is payable semiannually on February 15 and August 15 of each year, commencing on August 15, 2018, and principal on such equipment notes is scheduled for payment on February 15 and August 15 of certain years. Principal payments commenced on August 15, 2018 in the case of five new Airbus A321 aircraft delivered from February 2018 to March 2018 and three Airbus A320 aircraft delivered from December 2017 to January 2018 and will commence on February 15, 2019 for three Airbus A320 aircraft delivered from April 2018 to August 2018 and one Airbus A320 aircraft scheduled for delivery in October 2018. Issued and outstanding Series AA and Series A equipment notes mature in February 2030 and Series B equipment notes mature in February 2026. Issued and outstanding Series AA, Series A and Series B equipment notes accrue interest at a rate of 3.375% , 3.650% and 3.800% , respectively. As of September 30, 2018 , $388.0 million of the proceeds from the sale of the Series 2017-1 Class AA, Class A and Class B EETCs had been used to purchase equipment notes in connection with the financing of five Airbus A321 aircraft and six Airbus A320 aircraft. The remaining $32.5 million of escrowed proceeds held by the pass-through trusts will be used to purchase equipment notes as the remaining one new aircraft is delivered in October 2018. Equipment notes that are issued are reported as debt on the Company's condensed balance sheets. 2015-1C and 2017-1C EETCs In May 2018, the Company completed a private placement of an aggregate amount of $115.2 million pass-through certificates, Series 2015-1C. The Company entered into 15 separate participation agreement amendments to existing participation agreements that were entered into by the Company during the period from October 2015 to February 2017 under the existing pass through trust formed by the Company on August 11, 2015. The Series 2015-1C equipment notes are secured by 12 Airbus A321 aircraft previously delivered from October 2015 to January 2017 and 3 Airbus A320 aircraft previously delivered from March 2016 to June 2016. The Series 2015-1C equipment notes mature in April 2023 and accrue interest at a rate of 4.93% . Principal and interest on the issued and outstanding Series 2015-1C equipment notes is payable semiannually on April 1 and October 1 of each year, commencing on October 1, 2018. Equipment notes that are issued are reported as debt on the Company's condensed balance sheets. In May 2018, the Company also completed a private placement of an aggregate amount of $85.5 million pass-through certificates, Series 2017-1C. The Company entered into 9 separate participation agreement amendments to existing participation agreements that were entered into by the Company during the period from December 2017 to April 2018 under the existing pass through trust formed by the Company on November 28, 2017. The participation agreement amendments provide for the issuance of series 2017-1C equipment notes, in the aggregate principal amount of $65.7 million in connection with previously delivered aircraft. The 2017-1C equipment notes are secured by five Airbus A321 aircraft previously delivered from February 2018 to March 2018 and four Airbus A320 aircraft previously delivered from December 2017 to April 2018. The Series 2017-1C equipment notes mature in February 2023 and accrue interest at a rate of 5.11% . Interest on the Class C 2017-1 issued and outstanding equipment notes are payable semiannually on February 15 and August 15 of each year, commencing on August 15, 2018. The entire principal on the issued and outstanding Series 2017-1C equipment notes is scheduled for payment on February 15, 2023. As of September 30, 2018 , $13.2 million of the proceeds from the sale of the Series 2017-1 Class C had been used to purchase equipment notes in connection with the financing of two Airbus A320 aircraft. The remaining $6.6 million of escrowed proceeds held by the pass-through trusts will be used to purchase equipment notes when the remaining 1 Airbus A320 aircraft is delivered in October 2018. Equipment notes that are issued are reported as debt on the Company's condensed balance sheets. 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. Long-term debt is comprised of the following: As of Three Months Ended September 30, Nine Months Ended September 30, September 30, 2018 December 31, 2017 2018 2017 2018 2017 (in millions) (weighted-average interest rates) Fixed-rate senior term loans due through 2027 $ 391.4 $ 417.9 4.10 % 4.10 % 4.10 % 4.10 % Fixed-rate junior term loans due through 2022 33.2 39.3 6.90 % 6.90 % 6.90 % 6.90 % Fixed-rate loans due through 2029 493.9 518.0 3.83 % 3.76 % 3.83 % 3.76 % Fixed-rate class A 2015-1 EETC due through 2028 393.6 408.6 4.10 % 4.10 % 4.10 % 4.10 % Fixed-rate class B 2015-1 EETC due through 2024 84.0 92.0 4.45 % 4.45 % 4.45 % 4.45 % Fixed-rate class C 2015-1 EETC due through 2023 115.2 — 4.93 % N/A 4.93 % N/A Fixed-rate class AA 2017-1 EETC due through 2030 223.3 37.5 3.38 % N/A 3.38 % N/A Fixed-rate class A 2017-1 EETC due through 2030 74.4 12.5 3.65 % N/A 3.65 % N/A Fixed-rate class B 2017-1 EETC due through 2026 76.7 13.8 3.80 % N/A 3.80 % N/A Fixed-rate class C 2017-1 EETC due through 2023 78.9 — 5.11 % N/A 5.11 % N/A Long-term debt 1,964.6 1,539.6 Less current maturities 150.2 115.4 Less unamortized discounts 43.9 36.7 Total $ 1,770.5 $ 1,387.5 During the three and nine months ended September 30, 2018 , the Company made scheduled principal payments of $32.6 million and $93.2 million on its outstanding debt obligations, respectively. During the three and nine months ended September 30, 2017 , the Company made scheduled principal payments of $13.4 million and $63.4 million on its outstanding debt obligations, respectively. At September 30, 2018 , long-term debt principal payments for the next five years and thereafter are as follows: September 30, 2018 (in millions) remainder of 2018 $ 44.0 2019 158.3 2020 155.3 2021 151.0 2022 147.9 2023 and beyond 1,308.1 Total debt principal payments $ 1,964.6 Interest Expense Interest expense related to long-term debt consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Senior term loans $ 4,195 $ 4,564 $ 12,769 $ 13,854 Junior term loans 605 746 1,908 2,323 Fixed-rate loans 4,844 2,811 14,636 4,555 Class A 2015-1 EETC 4,057 4,366 12,214 12,995 Class B 2015-1 EETC 939 1,118 2,881 3,410 Class C 2015-1 EETC 1,420 — 2,209 — Class AA 2017-1 EETC 1,751 — 4,008 — Class A 2017-1 EETC 631 — 1,445 — Class B 2017-1 EETC 700 — 1,636 — Class C 2017-1 EETC 934 — 1,400 — Commitment fees 50 29 153 87 Amortization of debt discounts 1,784 1,362 4,930 3,883 Total $ 21,910 $ 14,996 $ 60,189 $ 41,107 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 23, 2018, the Company entered into a revolving credit facility for up to $160 million secured by the collateral assignment of certain of the Company's rights under the Company's purchase agreement with Airbus, related to 43 Airbus A320neo aircraft scheduled to be delivered between August 2019 and December 2021. The Company intends to use any proceeds for working capital, capital expenditures and other general corporate purposes. The final maturity of the facility is December 30, 2020. As of October 24, 2018, no |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
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 fairly present 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 Company's Annual Report on Form 10-K for the year ended December 31, 2017 |
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 may differ from these estimates. |
Recent Accounting Developments | Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers 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. The Company adopted this guidance on January 1, 2018 utilizing the full retrospective method of adoption allowed by the standard, in order to provide for comparative results in all periods presented. The most significant impact of this ASU is the elimination of the incremental cost method for frequent flier program accounting, which requires the Company to re-value and record a liability associated with customer flight miles earned as part of the Company’s frequent flier program with a relative fair value approach. The classification and timing of recognition of certain ancillary fees is also impacted by the adoption of ASU 2014-09. While the adoption did not have a significant impact on earnings, the classification of certain revenues, such as bags, seats and other travel-related fees are now deemed part of the single performance obligation of providing passenger transportation. Refer to Note 3, Revenue Recognition for information regarding the Company's adoption of ASU 2014-09 and to Note 4, Revenue Disaggregation for the presentation of passenger revenues disaggregated by fare and non-fare. Financial Instruments In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10).” ASU 2016-01 makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for the Company for interim and annual periods beginning January 1, 2018. The Company adopted this guidance on January 1, 2018 with no material impact on the financial statements. Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows." The standard is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This standard is effective for the Company for fiscal years, and interim periods within those years, beginning January 1, 2018. The Company adopted this guidance on January 1, 2018 with no material impact on the financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." This standard will require all lessees to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, for all leases with a term greater than 12 months. The standard is effective for the Company effective January 1, 2019. Early adoption is permitted. However, the Company does not plan to early adopt. The Company has established a cross functional project plan and is in the process of testing items necessary to account for the new standard. The Company expects this standard to have a significant impact on its condensed balance sheets due to the recognition of right-of-use assets and lease liabilities for leases. The Company does not expect the adoption to have a significant impact on its lease classification, a material impact on its condensed statement of operations, or a notable impact on its liquidity. Additionally, the Company does not expect the standard to have a material impact on the Company’s debt-covenant compliance under its current agreements. Refer to Note 10, Commitments and Contingencies for information regarding the Company's undiscounted future lease payments and the timing of those payments. In July 2018, the FASB issued additional guidance on the accounting for leases. The guidance provides companies with another transition method that allows entities to recognize a cumulative-effect adjustment to the opening balance of retained earnings as of the date of adoption. Under this method, previously presented years’ financial positions and results would not be adjusted. The new guidance also provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component if (1) the non-lease components would otherwise be accounted for under the new revenue recognition standard, (2) both the timing and pattern of transfer are the same for the non-lease components and associated lease component, and (3) if accounted for separately, the lease component would be classified as an operating lease. The Company is assessing the use of practical expedients in its accounting for leases. Accounting for Credit Losses In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses." The standard requires the use of an "expected loss" model on certain types of financial instruments. The standard also amends the impairment model for available-for-sale securities and requires estimated credit losses to be recorded as allowances rather than as reductions to the amortized cost of the securities. This standard is effective for the Company for fiscal years, and interim periods within those years, beginning January 1, 2020, with early adoption permitted. The Company is evaluating the new guidance, but does not expect it to have a material impact on its financial statements. Income Taxes |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following tables show adjustments made due to the adoption of ASU 2014-09 on the December 31, 2017 and 2016 statements of operations. Previously reported results were derived from audited financial statements included in Company's Annual Report on Form 10-K for the fiscal years ended December 31, 2017 and December 31, 2016, as applicable. Year Ended December 31, 2017 (in thousands, except share and per share data) As Reported Topic 606 Adjustment As Adjusted Operating revenues: Passenger $ 1,366,034 $ 1,206,853 $ 2,572,887 Other 1,281,632 (1,210,967 ) 70,665 Total operating revenues 2,647,666 (4,114 ) 2,643,552 Operating expenses: Aircraft fuel 615,581 — 615,581 Salaries, wages and benefits 527,959 — 527,959 Aircraft rent 205,852 — 205,852 Landing fees and other rents 180,655 — 180,655 Depreciation and amortization 140,152 — 140,152 Maintenance, materials and repairs 110,439 — 110,439 Distribution 113,620 (148 ) 113,472 Special charges 12,629 — 12,629 Loss on disposal of assets 4,168 — 4,168 Other operating 347,820 — 347,820 Total operating expenses 2,258,875 (148 ) 2,258,727 Operating income 388,791 (3,966 ) 384,825 Other (income) expense: Interest expense 57,302 — 57,302 Capitalized interest (13,793 ) — (13,793 ) Interest income (8,736 ) — (8,736 ) Other expense 366 — 366 Total other (income) expense 35,139 — 35,139 Income before income taxes 353,652 (3,966 ) 349,686 Provision (benefit) for income taxes (66,954 ) 1,118 (65,836 ) Net income $ 420,606 $ (5,084 ) $ 415,522 Basic earnings per share $ 6.08 $ (0.07 ) $ 6.00 Diluted earnings per share $ 6.06 $ (0.07 ) $ 5.99 Year Ended December 31, 2016 (in thousands, except share and per share data) As Reported Topic 606 Adjustment As Adjusted Operating revenues: Passenger $ 1,200,621 $ 1,057,180 $ 2,257,801 Other 1,121,335 (1,059,115 ) 62,220 Total operating revenues 2,321,956 (1,935 ) 2,320,021 Operating expenses: Salaries, wages and benefits 472,471 — 472,471 Aircraft fuel 447,553 — 447,553 Aircraft rent 201,675 — 201,675 Landing fees and other rents 151,679 — 151,679 Depreciation and amortization 101,136 — 101,136 Maintenance, materials and repairs 98,587 — 98,587 Distribution 96,627 268 96,895 Special charges 37,189 — 37,189 Loss on disposal of assets 4,187 — 4,187 Other operating 267,191 — 267,191 Total operating expenses 1,878,295 268 1,878,563 Operating income 443,661 (2,203 ) 441,458 Other (income) expense: Interest expense 41,654 — 41,654 Capitalized interest (12,705 ) — (12,705 ) Interest income (5,276 ) — (5,276 ) Other expense 528 — 528 Total other (income) expense 24,201 — 24,201 Income before income taxes 419,460 (2,203 ) 417,257 Provision (benefit) for income taxes 154,581 (807 ) 153,774 Net income $ 264,879 $ (1,396 ) $ 263,483 Basic earnings per share $ 3.77 $ (0.02 ) $ 3.75 Diluted earnings per share $ 3.76 $ (0.02 ) $ 3.74 The following table shows adjusted balances after the adoption of ASU 2014-09 on the quarterly statements of operations for each quarter of 2017. For the Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (in thousands, except share and per share data) Operating revenues: Passenger $ 572,287 $ 680,880 $ 669,072 $ 650,647 Other 17,670 19,305 18,155 15,535 Total operating revenues 589,957 700,185 687,227 666,182 Operating expenses: Aircraft fuel 139,782 142,294 158,300 175,205 Salaries, wages and benefits 127,138 129,892 134,114 136,815 Aircraft rent 57,070 52,566 53,396 42,820 Landing fees and other rents 40,448 45,592 48,498 46,117 Depreciation and amortization 31,509 35,331 36,840 36,472 Maintenance, materials and repairs 26,312 28,985 26,176 28,966 Distribution 25,772 29,835 29,695 28,170 Special charges 4,776 — 7,853 — Loss on disposal of assets 1,105 1,493 516 1,054 Other operating 77,703 102,885 87,965 79,267 Total operating expenses 531,615 568,873 583,353 574,886 Operating income 58,342 131,312 103,874 91,296 Other (income) expense: Interest expense 12,473 13,746 15,018 16,065 Capitalized interest (3,580 ) (3,342 ) (3,203 ) (3,668 ) Interest income (1,313 ) (1,828 ) (2,605 ) (2,990 ) Other expense 3 104 114 145 Total other (income) expense 7,583 8,680 9,324 9,552 Income before income taxes 50,759 122,632 94,550 81,744 Provision (benefit) for income taxes 19,498 45,391 34,506 (165,231 ) Net income $ 31,261 $ 77,241 $ 60,044 $ 246,975 Basic earnings per share $ 0.45 $ 1.11 $ 0.87 $ 3.59 Diluted earnings per share $ 0.45 $ 1.11 $ 0.86 $ 3.58 The following table shows quarterly adjustments made due to the adoption of ASU 2014-09 on the statements of operations for 2017. Adjustments for the Quarter Ended Full Year 2017 As Reported March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Full Year 2017 Adjusted (in thousands, except share and per share data) Operating revenues: Passenger $ 1,366,034 $ 272,525 $ 308,959 $ 312,865 $ 312,504 $ 2,572,887 Other 1,281,632 (274,314 ) (310,455 ) (312,869 ) (313,329 ) 70,665 Total operating revenues 2,647,666 (1,789 ) (1,496 ) (4 ) (825 ) 2,643,552 Operating expenses: Aircraft fuel 615,581 — — — — 615,581 Salaries, wages and benefits 527,959 — — — — 527,959 Aircraft rent 205,852 — — — — 205,852 Landing fees and other rents 180,655 — — — — 180,655 Depreciation and amortization 140,152 — — — — 140,152 Maintenance, materials and repairs 110,439 — — — — 110,439 Distribution 113,620 (726 ) (73 ) 226 425 113,472 Special charges 12,629 — — — — 12,629 Loss on disposal of assets 4,168 — — — — 4,168 Other operating 347,820 — — — — 347,820 Total operating expenses 2,258,875 (726 ) (73 ) 226 425 2,258,727 Operating income 388,791 (1,063 ) (1,423 ) (230 ) (1,250 ) 384,825 Other (income) expense: Interest expense 57,302 — — — — 57,302 Capitalized interest (13,793 ) — — — — (13,793 ) Interest income (8,736 ) — — — — (8,736 ) Other expense 366 — — — — 366 Total other (income) expense 35,139 — — — — 35,139 Income before income taxes 353,652 (1,063 ) (1,423 ) (230 ) (1,250 ) 349,686 Provision (benefit) for income taxes (66,954 ) (389 ) (522 ) (84 ) 2,113 (65,836 ) Net income $ 420,606 $ (674 ) $ (901 ) $ (146 ) $ (3,363 ) $ 415,522 Basic earnings per share $ 6.08 $ (0.01 ) $ (0.01 ) $ — $ (0.05 ) $ 6.00 Diluted earnings per share $ 6.06 $ (0.01 ) $ (0.01 ) $ — $ (0.05 ) $ 5.99 The following tables show adjustments made due to the adoption of ASU 2014-09 on the December 31, 2017 and 2016 balance sheets. Previously reported results were derived from audited financial statements included in Company's Annual Report on Form 10-K for the fiscal years ended December 31, 2017 and December 31, 2016, as applicable. December 31, 2017 (in thousands) As Reported Topic 606 Adjustment As Adjusted Assets Current assets: Cash and cash equivalents $ 800,849 $ — $ 800,849 Short-term investment securities 100,937 — 100,937 Accounts receivable, net 49,323 — 49,323 Aircraft maintenance deposits, net 175,615 — 175,615 Income tax receivable 69,844 — 69,844 Prepaid expenses and other current assets 83,692 1,850 85,542 Total current assets 1,280,260 1,850 1,282,110 Property and equipment: Flight equipment 2,291,110 — 2,291,110 Ground property and equipment 155,166 — 155,166 Less accumulated depreciation (207,808 ) — (207,808 ) 2,238,468 — 2,238,468 Deposits on flight equipment purchase contracts 253,687 — 253,687 Long-term aircraft maintenance deposits 150,617 — 150,617 Deferred heavy maintenance, net 99,915 — 99,915 Other long-term assets 121,003 — 121,003 Total assets $ 4,143,950 $ 1,850 $ 4,145,800 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 22,822 $ — $ 22,822 Air traffic liability 246,404 17,307 263,711 Current maturities of long-term debt 115,430 — 115,430 Other current liabilities 262,370 — 262,370 Total current liabilities 647,026 17,307 664,333 Long-term debt, less current maturities 1,387,498 — 1,387,498 Deferred income taxes 313,140 (4,326 ) 308,814 Deferred gains and other long-term liabilities 19,205 3,376 22,581 Shareholders’ equity: Common stock: Common stock, $0.0001 par value, 240,000,000 shares authorized at December 31, 2017; 69,770,795 issued and 68,196,964 outstanding as of December 31, 2017 7 — 7 Additional paid-in-capital 360,153 — 360,153 Treasury stock, at cost: 1,573,831 shares as of December 31, 2017 (65,854 ) — (65,854 ) Retained earnings 1,484,239 (14,507 ) 1,469,732 Accumulated other comprehensive income (loss) (1,464 ) — (1,464 ) Total shareholders’ equity 1,777,081 (14,507 ) 1,762,574 Total liabilities and shareholders’ equity $ 4,143,950 $ 1,850 $ 4,145,800 December 31, 2016 (in thousands) As Reported Topic 606 Adjustment As Adjusted Assets Current assets: Cash and cash equivalents $ 700,900 $ — $ 700,900 Short-term investment securities 100,155 — 100,155 Accounts receivable, net 41,136 — 41,136 Aircraft maintenance deposits, net 87,035 — 87,035 Income tax receivable — — — Prepaid expenses and other current assets 46,619 1,702 48,321 Total current assets 975,845 1,702 977,547 Property and equipment: Flight equipment 1,461,525 — 1,461,525 Ground property and equipment 126,206 — 126,206 Less accumulated depreciation (122,509 ) — (122,509 ) 1,465,222 — 1,465,222 Deposits on flight equipment purchase contracts 325,688 — 325,688 Long-term aircraft maintenance deposits 199,415 — 199,415 Deferred heavy maintenance, net 75,534 — 75,534 Other long-term assets 110,223 — 110,223 Total assets $ 3,151,927 $ 1,702 $ 3,153,629 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 15,193 $ — $ 15,193 Air traffic liability 206,392 13,792 220,184 Current maturities of long-term debt 84,354 — 84,354 Other current liabilities 226,011 — 226,011 Total current liabilities 531,950 13,792 545,742 Long-term debt, less current maturities 897,359 — 897,359 Deferred income taxes 308,143 (5,443 ) 302,700 Deferred gains and other long-term liabilities 19,868 2,776 22,644 Shareholders’ equity: Common stock: Common stock, $0.0001 par value, 240,000,000 shares authorized at December 31, 2016; 73,549,872 issued and 69,326,202 outstanding as of December 31, 2016 7 — 7 Additional paid-in-capital 551,004 — 551,004 Treasury stock, at cost: 4,223,670 shares as of December 31, 2016 (218,692 ) — (218,692 ) Retained earnings 1,063,633 (9,423 ) 1,054,210 Accumulated other comprehensive income (loss) (1,345 ) — (1,345 ) Total shareholders’ equity 1,394,607 (9,423 ) 1,385,184 Total liabilities and shareholders’ equity $ 3,151,927 $ 1,702 $ 3,153,629 |
Revenue Disaggregation (Tables)
Revenue Disaggregation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregation | The following table shows disaggregated operating revenues for each quarter of 2018 and 2017. For the Quarter Ended September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 (in thousands) Operating revenues: Fare $ 476,660 $ 439,549 $ 342,695 $ 337,324 $ 355,593 $ 371,443 $ 299,035 Non-fare 411,296 396,801 346,446 313,323 313,479 309,437 273,252 Total passenger revenues 887,956 836,350 689,141 650,647 669,072 680,880 572,287 Other revenues 16,374 15,421 14,997 15,535 18,155 19,305 17,670 Total operating revenues $ 904,330 $ 851,771 $ 704,138 $ 666,182 $ 687,227 $ 700,185 $ 589,957 The following table shows disaggregated operating revenues for years ended December 31, 2017 and 2016. Year Ended December 31, 2017 2016 (in thousands) As Reported Topic 606 Adjustment As Adjusted As Reported Topic 606 Adjustment As Adjusted Operating revenues: Fare $ 1,366,034 $ (2,639 ) $ 1,363,395 $ 1,200,621 $ (2,514 ) $ 1,198,107 Non-fare — 1,209,492 1,209,492 — 1,059,694 1,059,694 Total passenger revenues 1,366,034 1,206,853 2,572,887 1,200,621 1,057,180 2,257,801 Other revenues 1,281,632 (1,210,967 ) 70,665 1,121,335 (1,059,115 ) 62,220 Total operating revenues $ 2,647,666 $ (4,114 ) $ 2,643,552 $ 2,321,956 $ (1,935 ) $ 2,320,021 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in millions) DOT—Domestic $ 819.3 $ 636.3 $ 2,236.3 $ 1,819.2 DOT—Latin America 85.0 50.9 223.9 158.2 Total $ 904.3 $ 687.2 $ 2,460.2 $ 1,977.4 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2018 2017 (in thousands, except per share amounts) Numerator Net income $ 97,480 $ 60,044 $ 63,812 $ 168,546 Denominator Weighted-average shares outstanding, basic 68,254 69,370 68,243 69,363 Effect of dilutive stock awards 249 88 103 174 Adjusted weighted-average shares outstanding, diluted 68,503 69,458 68,346 69,537 Net income per share Basic earnings per common share $ 1.43 $ 0.87 $ 0.94 $ 2.43 Diluted earnings per common share $ 1.42 $ 0.86 $ 0.93 $ 2.42 Anti-dilutive weighted-average shares 5 124 192 76 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued liabilities included in other current liabilities | Other current liabilities as of September 30, 2018 and December 31, 2017 consist of the following: September 30, 2018 December 31, 2017 (in thousands) Salaries and wages $ 81,278 $ 54,338 Federal excise and other passenger taxes and fees payable 55,743 42,036 Airport obligations 47,476 56,299 Aircraft maintenance 26,438 33,033 Fuel 21,637 25,171 Interest payable 18,965 11,384 Aircraft and facility lease obligations 12,236 16,992 Other 23,369 23,117 Other current liabilities $ 287,142 $ 262,370 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Operating Aircraft Leases | As of September 30, 2018 , the Company's aircraft orders consisted of the following: Airbus Third-Party Lessor A320ceo A320neo A320neo Total remainder of 2018 5 3 8 2019 2 9 4 15 2020 16 16 2021 18 18 7 43 7 57 |
Future minimum lease payments under noncancelable operating leases | Future minimum lease payments under capital leases and noncancellable operating leases at September 30, 2018 were as follows: Capital Leases Aircraft and Spare Engine Operating Leases Property Facility Operating Leases Total Operating and Capital Lease Obligations (in thousands) remainder of 2018 $ 165 $ 42,762 $ 15,122 $ 58,049 2019 625 167,360 45,018 213,003 2020 249 161,876 29,636 191,761 2021 28 160,185 16,645 176,858 2022 — 146,904 14,403 161,307 2023 and thereafter — 419,925 101,897 521,822 Total minimum lease payments $ 1,067 $ 1,099,012 $ 222,721 $ 1,322,800 Less amount representing interest 49 Present value of minimum lease payments $ 1,018 Less current portion 596 Long-term portion $ 422 |
Future minimum lease payments under capital leases | Future minimum lease payments under capital leases and noncancellable operating leases at September 30, 2018 were as follows: Capital Leases Aircraft and Spare Engine Operating Leases Property Facility Operating Leases Total Operating and Capital Lease Obligations (in thousands) remainder of 2018 $ 165 $ 42,762 $ 15,122 $ 58,049 2019 625 167,360 45,018 213,003 2020 249 161,876 29,636 191,761 2021 28 160,185 16,645 176,858 2022 — 146,904 14,403 161,307 2023 and thereafter — 419,925 101,897 521,822 Total minimum lease payments $ 1,067 $ 1,099,012 $ 222,721 $ 1,322,800 Less amount representing interest 49 Present value of minimum lease payments $ 1,018 Less current portion 596 Long-term portion $ 422 |
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, 2018 . Employee Groups Representative Amendable Date Percentage of Workforce Pilots Air Line Pilots Association, International ("ALPA") February 2023 27% Flight Attendants Association of Flight Attendants ("AFA-CWA") May 2021 44% Dispatchers Professional Airline Flight Control Association ("PAFCA") October 2023 1% Ramp Service Agents International Association of Machinists and Aerospace Workers ("IAMAW") June 2020 4% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Fair Value Level Hierarchy Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Senior term loans $ 391.4 $ 395.5 $ 417.9 $ 435.3 Level 3 Junior term loans 33.2 33.6 39.3 40.4 Level 3 Fixed-rate loans 493.9 487.2 518.0 528.6 Level 3 2015-1 EETC Class A 393.6 389.8 408.6 420.9 Level 2 2015-1 EETC Class B 84.0 83.5 92.0 94.2 Level 2 2015-1 EETC Class C 115.2 114.4 — — Level 2 2017-1 EETC Class AA 223.3 213.6 37.5 37.4 Level 2 2017-1 EETC Class A 74.4 71.1 12.5 12.6 Level 2 2017-1 EETC Class B 76.7 73.3 13.8 13.8 Level 2 2017-1 EETC Class C 78.9 78.3 — — Level 2 Total long-term debt $ 1,964.6 $ 1,940.3 $ 1,539.6 $ 1,583.2 |
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, 2018 Total Level Level Level (in millions) Cash and cash equivalents $ 773.7 $ 773.7 $ — $ — Short-term investment securities 102.2 102.2 — — Total assets $ 875.9 $ 875.9 $ — $ — Total liabilities $ — $ — $ — $ — Fair Value Measurements as of December 31, 2017 Total Level Level Level (in millions) Cash and cash equivalents $ 800.8 $ 800.8 $ — $ — Short-term investment securities 100.9 100.9 — — Total assets $ 901.7 $ 901.7 $ — $ — Total liabilities $ — $ — $ — $ — |
Debt and Other Obligations (Tab
Debt and Other Obligations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 December 31, 2017 2018 2017 2018 2017 (in millions) (weighted-average interest rates) Fixed-rate senior term loans due through 2027 $ 391.4 $ 417.9 4.10 % 4.10 % 4.10 % 4.10 % Fixed-rate junior term loans due through 2022 33.2 39.3 6.90 % 6.90 % 6.90 % 6.90 % Fixed-rate loans due through 2029 493.9 518.0 3.83 % 3.76 % 3.83 % 3.76 % Fixed-rate class A 2015-1 EETC due through 2028 393.6 408.6 4.10 % 4.10 % 4.10 % 4.10 % Fixed-rate class B 2015-1 EETC due through 2024 84.0 92.0 4.45 % 4.45 % 4.45 % 4.45 % Fixed-rate class C 2015-1 EETC due through 2023 115.2 — 4.93 % N/A 4.93 % N/A Fixed-rate class AA 2017-1 EETC due through 2030 223.3 37.5 3.38 % N/A 3.38 % N/A Fixed-rate class A 2017-1 EETC due through 2030 74.4 12.5 3.65 % N/A 3.65 % N/A Fixed-rate class B 2017-1 EETC due through 2026 76.7 13.8 3.80 % N/A 3.80 % N/A Fixed-rate class C 2017-1 EETC due through 2023 78.9 — 5.11 % N/A 5.11 % N/A Long-term debt 1,964.6 1,539.6 Less current maturities 150.2 115.4 Less unamortized discounts 43.9 36.7 Total $ 1,770.5 $ 1,387.5 |
Schedule of Maturities of Long-term Debt | At September 30, 2018 , long-term debt principal payments for the next five years and thereafter are as follows: September 30, 2018 (in millions) remainder of 2018 $ 44.0 2019 158.3 2020 155.3 2021 151.0 2022 147.9 2023 and beyond 1,308.1 Total debt principal payments $ 1,964.6 |
Schedule of Interest Expense, Long-term Debt | Interest expense related to long-term debt consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Senior term loans $ 4,195 $ 4,564 $ 12,769 $ 13,854 Junior term loans 605 746 1,908 2,323 Fixed-rate loans 4,844 2,811 14,636 4,555 Class A 2015-1 EETC 4,057 4,366 12,214 12,995 Class B 2015-1 EETC 939 1,118 2,881 3,410 Class C 2015-1 EETC 1,420 — 2,209 — Class AA 2017-1 EETC 1,751 — 4,008 — Class A 2017-1 EETC 631 — 1,445 — Class B 2017-1 EETC 700 — 1,636 — Class C 2017-1 EETC 934 — 1,400 — Commitment fees 50 29 153 87 Amortization of debt discounts 1,784 1,362 4,930 3,883 Total $ 21,910 $ 14,996 $ 60,189 $ 41,107 |
Revenue Recognition - Impact on
Revenue Recognition - Impact on Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating revenues: | |||||||||||
Total operating revenues | $ 904,330 | $ 851,771 | $ 704,138 | $ 666,182 | $ 687,227 | $ 700,185 | $ 589,957 | $ 2,460,239 | $ 1,977,369 | $ 2,643,552 | $ 2,320,021 |
Operating expenses: | |||||||||||
Aircraft fuel | 258,818 | 175,205 | 158,300 | 142,294 | 139,782 | 709,644 | 440,376 | 615,581 | 447,553 | ||
Salaries, wages and benefits | 185,043 | 136,815 | 134,114 | 129,892 | 127,138 | 527,895 | 391,144 | 527,959 | 472,471 | ||
Aircraft rent | 42,682 | 42,820 | 53,396 | 52,566 | 57,070 | 134,618 | 163,032 | 205,852 | 201,675 | ||
Landing fees and other rents | 54,542 | 46,117 | 48,498 | 45,592 | 40,448 | 162,774 | 134,538 | 180,655 | 151,679 | ||
Depreciation and amortization | 43,773 | 36,472 | 36,840 | 35,331 | 31,509 | 128,764 | 103,680 | 140,152 | 101,136 | ||
Maintenance, materials and repairs | 37,778 | 28,966 | 26,176 | 28,985 | 26,312 | 99,141 | 81,473 | 110,439 | 98,587 | ||
Distribution | 37,868 | 28,170 | 29,695 | 29,835 | 25,772 | 103,496 | 85,302 | 113,472 | 96,895 | ||
Special charges (credits) | (686) | 0 | 7,853 | 0 | 4,776 | 88,656 | 12,629 | 12,629 | 37,189 | ||
Loss on disposal of assets | 1,069 | 1,054 | 516 | 1,493 | 1,105 | 6,561 | 3,114 | 4,168 | 4,187 | ||
Other operating | 98,318 | 79,267 | 87,965 | 102,885 | 77,703 | 283,841 | 268,553 | 347,820 | 267,191 | ||
Total operating expenses | 759,205 | 574,886 | 583,353 | 568,873 | 531,615 | 2,245,390 | 1,683,841 | 2,258,727 | 1,878,563 | ||
Operating income | 145,125 | 91,296 | 103,874 | 131,312 | 58,342 | 214,849 | 293,528 | 384,825 | 441,458 | ||
Other (income) expense: | |||||||||||
Interest expense | 21,925 | 16,065 | 15,018 | 13,746 | 12,473 | 60,272 | 41,237 | 57,302 | 41,654 | ||
Capitalized interest | (2,657) | (3,668) | (3,203) | (3,342) | (3,580) | (7,205) | (10,125) | (13,793) | (12,705) | ||
Interest income | (4,776) | (2,990) | (2,605) | (1,828) | (1,313) | (13,272) | (5,746) | (8,736) | (5,276) | ||
Other expense | 302 | 145 | 114 | 104 | 3 | 623 | 221 | 366 | 528 | ||
Total other (income) expense | 16,538 | 9,552 | 9,324 | 8,680 | 7,583 | 130,775 | 25,587 | 35,139 | 24,201 | ||
Income before income taxes | 128,587 | 81,744 | 94,550 | 122,632 | 50,759 | 84,074 | 267,941 | 349,686 | 417,257 | ||
Provision (benefit) for income taxes | 31,107 | (165,231) | 34,506 | 45,391 | 19,498 | 20,262 | 99,395 | (65,836) | 153,774 | ||
Net income | $ 97,480 | $ 246,975 | $ 60,044 | $ 77,241 | $ 31,261 | $ 63,812 | $ 168,546 | $ 415,522 | $ 263,483 | ||
Basic earnings per share | $ 1.43 | $ 3.59 | $ 0.87 | $ 1.11 | $ 0.45 | $ 0.94 | $ 2.43 | $ 6 | $ 3.75 | ||
Diluted earnings per share | $ 1.42 | $ 3.58 | $ 0.86 | $ 1.11 | $ 0.45 | $ 0.93 | $ 2.42 | $ 5.99 | $ 3.74 | ||
As Reported [Member] | |||||||||||
Operating revenues: | |||||||||||
Total operating revenues | $ 2,647,666 | $ 2,321,956 | |||||||||
Operating expenses: | |||||||||||
Aircraft fuel | 615,581 | 447,553 | |||||||||
Salaries, wages and benefits | 527,959 | 472,471 | |||||||||
Aircraft rent | 205,852 | 201,675 | |||||||||
Landing fees and other rents | 180,655 | 151,679 | |||||||||
Depreciation and amortization | 140,152 | 101,136 | |||||||||
Maintenance, materials and repairs | 110,439 | 98,587 | |||||||||
Distribution | 113,620 | 96,627 | |||||||||
Special charges (credits) | 12,629 | 37,189 | |||||||||
Loss on disposal of assets | 4,168 | 4,187 | |||||||||
Other operating | 347,820 | 267,191 | |||||||||
Total operating expenses | 2,258,875 | 1,878,295 | |||||||||
Operating income | 388,791 | 443,661 | |||||||||
Other (income) expense: | |||||||||||
Interest expense | 57,302 | 41,654 | |||||||||
Capitalized interest | (13,793) | (12,705) | |||||||||
Interest income | (8,736) | (5,276) | |||||||||
Other expense | 366 | 528 | |||||||||
Total other (income) expense | 35,139 | 24,201 | |||||||||
Income before income taxes | 353,652 | 419,460 | |||||||||
Provision (benefit) for income taxes | (66,954) | 154,581 | |||||||||
Net income | $ 420,606 | $ 264,879 | |||||||||
Basic earnings per share | $ 6.08 | $ 3.77 | |||||||||
Diluted earnings per share | $ 6.06 | $ 3.76 | |||||||||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||||||||
Operating revenues: | |||||||||||
Total operating revenues | $ (825) | $ (4) | $ (1,496) | $ (1,789) | $ (4,114) | $ (1,935) | |||||
Operating expenses: | |||||||||||
Aircraft fuel | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Salaries, wages and benefits | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Aircraft rent | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Landing fees and other rents | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Depreciation and amortization | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Maintenance, materials and repairs | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Distribution | 425 | 226 | (73) | (726) | (148) | 268 | |||||
Special charges (credits) | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Loss on disposal of assets | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Other operating | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total operating expenses | 425 | 226 | (73) | (726) | (148) | 268 | |||||
Operating income | (1,250) | (230) | (1,423) | (1,063) | (3,966) | (2,203) | |||||
Other (income) expense: | |||||||||||
Interest expense | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Capitalized interest | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Interest income | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Other expense | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total other (income) expense | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Income before income taxes | (1,250) | (230) | (1,423) | (1,063) | (3,966) | (2,203) | |||||
Provision (benefit) for income taxes | 2,113 | (84) | (522) | (389) | 1,118 | (807) | |||||
Net income | $ (3,363) | $ (146) | $ (901) | $ (674) | $ (5,084) | $ (1,396) | |||||
Basic earnings per share | $ (0.05) | $ 0 | $ (0.01) | $ (0.01) | $ (0.07) | $ (0.02) | |||||
Diluted earnings per share | $ (0.05) | $ 0 | $ (0.01) | $ (0.01) | $ (0.07) | $ (0.02) | |||||
Passenger [Member] | |||||||||||
Operating revenues: | |||||||||||
Total operating revenues | $ 887,956 | 836,350 | 689,141 | $ 650,647 | $ 669,072 | $ 680,880 | $ 572,287 | $ 2,413,447 | $ 1,922,239 | $ 2,572,887 | $ 2,257,801 |
Passenger [Member] | As Reported [Member] | |||||||||||
Operating revenues: | |||||||||||
Total operating revenues | 1,366,034 | 1,200,621 | |||||||||
Passenger [Member] | Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||||||||
Operating revenues: | |||||||||||
Total operating revenues | 312,504 | 312,865 | 308,959 | 272,525 | 1,206,853 | 1,057,180 | |||||
Other [Member] | |||||||||||
Operating revenues: | |||||||||||
Total operating revenues | $ 16,374 | $ 15,421 | $ 14,997 | 15,535 | 18,155 | 19,305 | 17,670 | $ 46,792 | $ 55,130 | 70,665 | 62,220 |
Other [Member] | As Reported [Member] | |||||||||||
Operating revenues: | |||||||||||
Total operating revenues | 1,281,632 | 1,121,335 | |||||||||
Other [Member] | Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||||||||
Operating revenues: | |||||||||||
Total operating revenues | $ (313,329) | $ (312,869) | $ (310,455) | $ (274,314) | $ (1,210,967) | $ (1,059,115) |
Revenue Recognition - Impact _2
Revenue Recognition - Impact on Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 773,710 | $ 800,849 | $ 863,680 | $ 700,900 |
Short-term investment securities | 102,201 | 100,937 | 100,155 | |
Accounts receivable, net | 63,526 | 49,323 | 41,136 | |
Aircraft maintenance deposits, net | 104,472 | 175,615 | 87,035 | |
Income tax receivable | 78,506 | 69,844 | 0 | |
Prepaid expenses and other current assets | 83,692 | 85,542 | 48,321 | |
Total current assets | 1,206,107 | 1,282,110 | 977,547 | |
Property and equipment: | ||||
Flight equipment | 3,023,898 | 2,291,110 | 1,461,525 | |
Ground property and equipment | 178,339 | 155,166 | 126,206 | |
Less accumulated depreciation | (296,157) | (207,808) | (122,509) | |
Total property and equipment | 2,906,080 | 2,238,468 | 1,465,222 | |
Deposits on flight equipment purchase contracts | 253,825 | 253,687 | 325,688 | |
Long-term aircraft maintenance deposits | 144,642 | 150,617 | 199,415 | |
Deferred heavy maintenance, net | 191,632 | 99,915 | 75,534 | |
Other long-term assets | 79,445 | 121,003 | 110,223 | |
Total assets | 4,781,731 | 4,145,800 | 3,153,629 | |
Current liabilities: | ||||
Accounts payable | 63,190 | 22,822 | 15,193 | |
Air traffic liability | 323,627 | 263,711 | 220,184 | |
Current maturities of long-term debt | 150,200 | 115,430 | 84,354 | |
Other current liabilities | 287,142 | 262,370 | 226,011 | |
Total current liabilities | 824,821 | 664,333 | 545,742 | |
Long-term debt and capital leases, less current maturities | 1,770,500 | 1,387,498 | 897,359 | |
Deferred income taxes | 332,119 | 308,814 | 302,700 | |
Deferred gains and other long-term liabilities | 20,105 | 22,581 | 22,644 | |
Shareholders’ equity: | ||||
Common stock | 7 | 7 | 7 | |
Additional paid-in-capital | 368,451 | 360,153 | 551,004 | |
Treasury stock, at cost | (66,999) | (65,854) | (218,692) | |
Retained earnings | 1,533,545 | 1,469,732 | 1,054,210 | |
Accumulated other comprehensive income (loss) | (1,222) | (1,464) | (1,345) | |
Total shareholders’ equity | 1,833,782 | 1,762,574 | 1,385,184 | |
Total liabilities and shareholders’ equity | $ 4,781,731 | $ 4,145,800 | $ 3,153,629 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||
Common stock, shares authorized (in shares) | 240,000,000 | 240,000,000 | ||
Common stock, shares issued (in shares) | 69,770,795 | 73,549,872 | ||
Common stock, shares outstanding (in shares) | 68,196,964 | 69,326,202 | ||
Treasury stock (in shares) | 1,573,831 | 4,223,670 | ||
As Reported [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | $ 800,849 | $ 700,900 | ||
Short-term investment securities | 100,937 | 100,155 | ||
Accounts receivable, net | 49,323 | 41,136 | ||
Aircraft maintenance deposits, net | 175,615 | 87,035 | ||
Income tax receivable | 69,844 | 0 | ||
Prepaid expenses and other current assets | 83,692 | 46,619 | ||
Total current assets | 1,280,260 | 975,845 | ||
Property and equipment: | ||||
Flight equipment | 2,291,110 | 1,461,525 | ||
Ground property and equipment | 155,166 | 126,206 | ||
Less accumulated depreciation | (207,808) | (122,509) | ||
Total property and equipment | 2,238,468 | 1,465,222 | ||
Deposits on flight equipment purchase contracts | 253,687 | 325,688 | ||
Long-term aircraft maintenance deposits | 150,617 | 199,415 | ||
Deferred heavy maintenance, net | 99,915 | 75,534 | ||
Other long-term assets | 121,003 | 110,223 | ||
Total assets | 4,143,950 | 3,151,927 | ||
Current liabilities: | ||||
Accounts payable | 22,822 | 15,193 | ||
Air traffic liability | 246,404 | 206,392 | ||
Current maturities of long-term debt | 115,430 | 84,354 | ||
Other current liabilities | 262,370 | 226,011 | ||
Total current liabilities | 647,026 | 531,950 | ||
Long-term debt and capital leases, less current maturities | 1,387,498 | 897,359 | ||
Deferred income taxes | 313,140 | 308,143 | ||
Deferred gains and other long-term liabilities | 19,205 | 19,868 | ||
Shareholders’ equity: | ||||
Common stock | 7 | 7 | ||
Additional paid-in-capital | 360,153 | 551,004 | ||
Treasury stock, at cost | (65,854) | (218,692) | ||
Retained earnings | 1,484,239 | 1,063,633 | ||
Accumulated other comprehensive income (loss) | (1,464) | (1,345) | ||
Total shareholders’ equity | 1,777,081 | 1,394,607 | ||
Total liabilities and shareholders’ equity | 4,143,950 | 3,151,927 | ||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investment securities | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Aircraft maintenance deposits, net | 0 | 0 | ||
Income tax receivable | 0 | 0 | ||
Prepaid expenses and other current assets | 1,850 | 1,702 | ||
Total current assets | 1,850 | 1,702 | ||
Property and equipment: | ||||
Flight equipment | 0 | 0 | ||
Ground property and equipment | 0 | 0 | ||
Less accumulated depreciation | 0 | 0 | ||
Total property and equipment | 0 | 0 | ||
Deposits on flight equipment purchase contracts | 0 | 0 | ||
Long-term aircraft maintenance deposits | 0 | 0 | ||
Deferred heavy maintenance, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 1,850 | 1,702 | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Air traffic liability | 17,307 | 13,792 | ||
Current maturities of long-term debt | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 17,307 | 13,792 | ||
Long-term debt and capital leases, less current maturities | 0 | 0 | ||
Deferred income taxes | (4,326) | (5,443) | ||
Deferred gains and other long-term liabilities | 3,376 | 2,776 | ||
Shareholders’ equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in-capital | 0 | 0 | ||
Treasury stock, at cost | 0 | 0 | ||
Retained earnings | (14,507) | (9,423) | ||
Accumulated other comprehensive income (loss) | 0 | 0 | ||
Total shareholders’ equity | (14,507) | (9,423) | ||
Total liabilities and shareholders’ equity | $ 1,850 | $ 1,702 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($)revenue_arrangement | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2018USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Air traffic liability | $ 323,627 | $ 263,711 | $ 323,627 | $ 263,711 | $ 220,184 | |||||||
Credit shell term | 60 days | |||||||||||
Frequent Flyer Program, number of types of revenue arrangements | revenue_arrangement | 2 | |||||||||||
Revenues | $ 904,330 | $ 851,771 | $ 704,138 | $ 666,182 | $ 687,227 | $ 700,185 | $ 589,957 | $ 2,460,239 | $ 1,977,369 | $ 2,643,552 | $ 2,320,021 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Air traffic liability | $ 12,400 | |||||||||||
Mileage Credit Programs [Member] | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Revenues | $ 29,600 | $ 38,100 |
Revenue Disaggregation (Details
Revenue Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | $ 904,330 | $ 851,771 | $ 704,138 | $ 666,182 | $ 687,227 | $ 700,185 | $ 589,957 | $ 2,460,239 | $ 1,977,369 | $ 2,643,552 | $ 2,320,021 |
DOT—Domestic [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 819,300 | 636,300 | 2,236,300 | 1,819,200 | |||||||
DOT—Latin America [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 85,000 | 50,900 | 223,900 | 158,200 | |||||||
As Reported [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 2,647,666 | 2,321,956 | |||||||||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | (825) | (4) | (1,496) | (1,789) | (4,114) | (1,935) | |||||
Passenger [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 887,956 | 836,350 | 689,141 | 650,647 | 669,072 | 680,880 | 572,287 | 2,413,447 | 1,922,239 | 2,572,887 | 2,257,801 |
Passenger [Member] | As Reported [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 1,366,034 | 1,200,621 | |||||||||
Passenger [Member] | Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 312,504 | 312,865 | 308,959 | 272,525 | 1,206,853 | 1,057,180 | |||||
Fare [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 476,660 | 439,549 | 342,695 | 337,324 | 355,593 | 371,443 | 299,035 | 1,363,395 | 1,198,107 | ||
Fare [Member] | As Reported [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 1,366,034 | 1,200,621 | |||||||||
Fare [Member] | Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | (2,639) | (2,514) | |||||||||
Non Fare [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 411,296 | 396,801 | 346,446 | 313,323 | 313,479 | 309,437 | 273,252 | 1,209,492 | 1,059,694 | ||
Non Fare [Member] | As Reported [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 0 | 0 | |||||||||
Non Fare [Member] | Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 1,209,492 | 1,059,694 | |||||||||
Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | $ 16,374 | $ 15,421 | $ 14,997 | 15,535 | 18,155 | 19,305 | 17,670 | $ 46,792 | $ 55,130 | 70,665 | 62,220 |
Other [Member] | As Reported [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 1,281,632 | 1,121,335 | |||||||||
Other [Member] | Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | $ (313,329) | $ (312,869) | $ (310,455) | $ (274,314) | $ (1,210,967) | $ (1,059,115) |
Special Charges (Details)
Special Charges (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($)aircraft | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($)aircraft | Sep. 30, 2017USD ($)aircraft | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||||||
Ratification Incentive | $ 80,200 | |||||||||
Adjustments for contractual provisions | 8,500 | |||||||||
Special charges (credits) | $ (686) | $ 0 | $ 7,853 | $ 0 | $ 4,776 | 88,656 | $ 12,629 | $ 12,629 | $ 37,189 | |
Ratification Incentive Paid | 76,200 | |||||||||
Purchase of property and equipment | 420,586 | 428,913 | ||||||||
Special charges, non-operating | $ 1,744 | $ 0 | $ 90,357 | 0 | ||||||
Airbus A319 [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Purchase price | $ 285,000 | |||||||||
Airbus A319 [Member] | Capital Lease Obligations [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Number of aircrafts purchased | aircraft | 14 | |||||||||
Aircraft [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Special charges (credits) | $ 7,900 | |||||||||
Number of previously leased engines | aircraft | 22 | 1 | ||||||||
Purchase of property and equipment | $ 12,600 | |||||||||
Value of noncash consideration | 7,400 | |||||||||
Fair value of assets acquired | 11,900 | |||||||||
Aircraft [Member] | Other Non-Cash Items [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Value of noncash consideration | 200 | |||||||||
Aircraft [Member] | Airbus A319 [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Property, Plant and Equipment To Be Purchased, Consideration Transferred | 20,000 | |||||||||
Spare Engines [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Number of previously leased engines | aircraft | 1 | |||||||||
Spare Engines [Member] | Spare Engines [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Special charges (credits) | $ 4,800 | |||||||||
Number of previously leased engines | aircraft | 1 | |||||||||
Purchase price | $ 8,100 | |||||||||
Purchase of property and equipment | 3,800 | |||||||||
Value of noncash consideration | 4,300 | |||||||||
Fair value of assets acquired | 3,100 | |||||||||
Spare Engines [Member] | Spare Engines [Member] | Other Non-Cash Items [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Value of noncash consideration | $ 200 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator | |||||||||
Net income | $ 97,480 | $ 246,975 | $ 60,044 | $ 77,241 | $ 31,261 | $ 63,812 | $ 168,546 | $ 415,522 | $ 263,483 |
Denominator | |||||||||
Weighted-average shares outstanding, basic (in shares) | 68,254 | 69,370 | 68,243 | 69,363 | |||||
Effect of dilutive stock awards (in shares) | 249 | 88 | 103 | 174 | |||||
Adjusted weighted-average shares outstanding, diluted (in shares) | 68,503 | 69,458 | 68,346 | 69,537 | |||||
Net income per share | |||||||||
Basic earnings per common share (in dollars per share) | $ 1.43 | $ 3.59 | $ 0.87 | $ 1.11 | $ 0.45 | $ 0.94 | $ 2.43 | $ 6 | $ 3.75 |
Diluted earnings per common share (in dollars per share) | $ 1.42 | $ 3.58 | $ 0.86 | $ 1.11 | $ 0.45 | $ 0.93 | $ 2.42 | $ 5.99 | $ 3.74 |
Anti-dilutive weighted-average shares (in shares) | 5 | 124 | 192 | 76 |
Short-term Investment Securit_2
Short-term Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Securities, Available-for-sale [Line Items] | ||||||
Short-term investment securities | $ 102,201 | $ 102,201 | $ 100,937 | $ 100,155 | ||
Unrealized gain (loss), net of deferred taxes | (7) | $ 13 | 70 | $ (11) | ||
Tax effect of the unrealized gain (loss) on short-term investment securities | (5) | $ 7 | 21 | $ (6) | ||
Accumulated other comprehensive loss | 1,222 | $ 1,222 | 1,464 | $ 1,345 | ||
Available-for-sale Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Weighted-average fixed rate | 1.50% | |||||
Accumulated other comprehensive loss | $ 34 | $ 34 | $ 105 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | |||
Salaries and wages | $ 81,278 | $ 54,338 | |
Federal excise and other passenger taxes and fees payable | 55,743 | 42,036 | |
Airport obligations | 47,476 | 56,299 | |
Aircraft maintenance | 26,438 | 33,033 | |
Fuel | 21,637 | 25,171 | |
Interest payable | 18,965 | 11,384 | |
Aircraft and facility lease obligations | 12,236 | 16,992 | |
Other | 23,369 | 23,117 | |
Other current liabilities | $ 287,142 | $ 262,370 | $ 226,011 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||||||
Interest rate derivative losses reclassified into earnings | $ 52 | $ 53 | $ 172 | $ 160 | ||
Loss reclassified from AOCI into earnings, tax | 27 | 31 | 66 | 92 | ||
Accumulated other comprehensive loss | 1,222 | 1,222 | $ 1,464 | $ 1,345 | ||
Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Accumulated other comprehensive loss | 1,200 | 1,200 | $ 1,400 | |||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||||
Derivative [Line Items] | ||||||
Interest rate derivative losses reclassified into earnings | 52 | 53 | 172 | 160 | ||
Loss reclassified from AOCI into earnings, tax | $ 27 | $ 31 | $ 66 | $ 92 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Aircraft Operating Leases (Details) | Sep. 30, 2018aircraft |
Long-term Purchase Commitment [Line Items] | |
remainder of 2018 | 8 |
2,019 | 15 |
2,020 | 16 |
2,021 | 18 |
Total future aircraft to be received | 57 |
Airbus [Member] | A320 [Member] | |
Long-term Purchase Commitment [Line Items] | |
remainder of 2018 | 5 |
2,019 | 2 |
2,020 | |
Total future aircraft to be received | 7 |
Airbus [Member] | A320NEO [Member] | |
Long-term Purchase Commitment [Line Items] | |
2,019 | 9 |
2,020 | 16 |
2,021 | 18 |
Total future aircraft to be received | 43 |
Third Party Lessor [Member] | A320NEO [Member] | |
Long-term Purchase Commitment [Line Items] | |
remainder of 2018 | 3 |
2,019 | 4 |
Total future aircraft to be received | 7 |
Commitments and Contingencies_2
Commitments and Contingencies - Aircraft-Related Commitments and Financing Arrangements (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2015aircraftseat | Jun. 30, 2018USD ($)aircraft_engine | Mar. 31, 2018USD ($)aircraft_engineaircraft | Sep. 30, 2018USD ($)aircraft_engineaircraft | Sep. 30, 2017USD ($)aircraft | Nov. 30, 2017aircraft | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||
Capital lease assets within flight equipment | $ 236,700,000 | |||||
Capital lease obligation | $ 143,800,000 | |||||
Number of engines ordered | aircraft_engine | 6 | |||||
Property, Plant And Equipment, Number Of Engines Purchased | aircraft_engine | 6 | |||||
Property, Plant And Equipment, Number Of Engines Sold | aircraft_engine | 5 | |||||
Principal and Interest Commitments | ||||||
Number of Spare Engines Capitalized | aircraft | 6 | |||||
Estimated Remaining Project Construction Costs | $ 0 | |||||
Spare Engines [Member] | ||||||
Principal and Interest Commitments | ||||||
Number of leased assets | aircraft_engine | 12 | |||||
Secured Debt [Member] | ||||||
Interest Commitments | ||||||
Interest commitments, 2018 | $ 21,600,000 | |||||
Interest commitments, 2019 | 76,300,000 | |||||
Interest commitments, 2020 | 69,700,000 | |||||
Interest commitments, 2021 | 63,200,000 | |||||
Interest commitments, 2022 | 56,800,000 | |||||
Interest commitments, 2023 and beyond | 179,400,000 | |||||
Principal and Interest Commitments | ||||||
Principal and interest commitments related to future secured debt, 2018 | 0 | |||||
Principal and interest commitments related to future secured debt, 2019 | 4,400,000 | |||||
Principal and interest commitments related to future secured debt, 2020 | 4,000,000 | |||||
Principal and interest commitments related to future secured debt, 2021 | 3,300,000 | |||||
Principal and interest commitments related to future secured debt, 2022 | 3,100,000 | |||||
Principal and interest commitments related to future secured debt, 2023 and beyond | $ 34,000,000 | |||||
Aircraft [Member] | ||||||
Principal and Interest Commitments | ||||||
Number of Aircraft Capitalized | aircraft | 77 | |||||
Number of Previously Leased Aircraft or Engine Purchased | aircraft | 22 | 1 | ||||
Operating Leases of Lessee, Number of Assets Leased, Affected by Variable Rate Basis | aircraft | 1 | |||||
2018 [Member] | Airbus [Member] | ||||||
Aircraft rent commitments | ||||||
Number of aircraft with secured debt financing commitments scheduled for delivery | aircraft | 1 | |||||
2019-2021 [Member] [Member] | Airbus [Member] | ||||||
Aircraft rent commitments | ||||||
Number of aircraft without secured financing commitments scheduled for delivery | aircraft | 49 | |||||
Aircraft and Related Flight Equipment [Member] | ||||||
Committed Expenditures | ||||||
Committed expenditures, remainder of 2018 | $ 210,200,000 | |||||
Committed expenditures, 2019 | 592,100,000 | |||||
Committed expenditures, 2020 | 810,800,000 | |||||
Committed expenditures, 2021 | 775,400,000 | |||||
Committed expenditures, 2022 | 17,000,000 | |||||
Committed expenditures, 2023 and beyond | 8,000,000 | |||||
Aircraft and Related Flight Equipment [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||
Committed Expenditures | ||||||
Face amount, commitment for future issuance | 39,100,000 | |||||
Fixed Maintenance Reserve Payments, Aircraft and Related Flight Equipment [Member] | ||||||
Committed Expenditures | ||||||
Committed expenditures, remainder of 2018 | 1,800,000 | |||||
Committed expenditures, 2019 | 5,800,000 | |||||
Committed expenditures, 2020 | 5,600,000 | |||||
Committed expenditures, 2021 | 5,700,000 | |||||
Committed expenditures, 2022 | 4,900,000 | |||||
Committed expenditures, 2023 and beyond | 12,900,000 | |||||
Non-aircraft Related Commitments [Member] | ||||||
Committed Expenditures | ||||||
Committed expenditures, remainder of 2018 | 2,500,000 | |||||
Committed expenditures, 2019 | 12,600,000 | |||||
Committed expenditures, 2020 | 12,700,000 | |||||
Committed expenditures, 2021 | 9,900,000 | |||||
Committed expenditures, 2022 | 10,000,000 | |||||
Committed expenditures, 2023 and beyond | $ 66,600,000 | |||||
V2500 SelectOne Engine [Member] | ||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||
Proceeds from Sale of Other Property, Plant, and Equipment | $ 9,500,000 | |||||
Loss on sale of engines | $ 4,400,000 | |||||
V2500 SelectTWO Engine [Member] | ||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||
Number of spare aircraft engines ordered | aircraft_engine | 2 | |||||
PurePower PW1100G-JM Engine [Member] | ||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||
Number of spare aircraft engines ordered | aircraft_engine | 9 | |||||
Spare Engines [Member] | ||||||
Principal and Interest Commitments | ||||||
Number of Previously Leased Aircraft or Engine Purchased | aircraft | 1 | |||||
Spare Engines [Member] | Spare Engines [Member] | ||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||
Purchase price | $ 8,100,000 | |||||
Principal and Interest Commitments | ||||||
Number of Previously Leased Aircraft or Engine Purchased | aircraft | 1 | |||||
A-320-Neo [Member] | Third Party Lessor [Member] | ||||||
Aircraft rent commitments | ||||||
Aircraft rent commitments, remainder of 2018 | $ 1,000,000 | |||||
Aircraft rent commitments, 2019 | 27,200,000 | |||||
Aircraft rent commitments, 2020 | 29,400,000 | |||||
Aircraft rent commitments, 2021 | 29,400,000 | |||||
Aircraft rent commitments, 2022 | 29,400,000 | |||||
Aircraft rent commitments, 2023 and beyond | $ 235,900,000 | |||||
A-320-Neo [Member] | 2019 [Member] | Airbus [Member] | ||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||
Aircraft scheduled for delivery | aircraft | 14 | |||||
Airbus A319 [Member] | ||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||
Purchase price | $ 285,000,000 | |||||
Airbus A319 [Member] | Capital Lease Obligations [Member] | ||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||
Number of aircrafts purchased | aircraft | 14 | |||||
A320 and A321 [Member] | Airbus [Member] | ||||||
Aircraft rent commitments | ||||||
Number of delivered aircraft with secured debt financing commitments | aircraft | 55 | |||||
A320 [Member] | Airbus [Member] | ||||||
Principal and Interest Commitments | ||||||
Number of aircrafts with increased seating capacity | aircraft | 40 | |||||
A320 [Member] | Airbus [Member] | Minimum [Member] | ||||||
Principal and Interest Commitments | ||||||
Number of seats | seat | 178 | |||||
A320 [Member] | Airbus [Member] | Maximum [Member] | ||||||
Principal and Interest Commitments | ||||||
Number of seats | seat | 182 | |||||
A320 [Member] | 2018 [Member] | Equipment Notes, 2017-1 [Member] | ||||||
Aircraft rent commitments | ||||||
Number of aircraft with secured debt financing commitments scheduled for delivery | aircraft | 1 | 1 | ||||
A320 Family [Member] | ||||||
Principal and Interest Commitments | ||||||
Number of Aircraft Held | aircraft | 121 | |||||
A320 Family [Member] | Aircraft [Member] | ||||||
Principal and Interest Commitments | ||||||
Number of leased assets | aircraft | 44 | |||||
Aircraft order contract renegotiation [Member] | Airbus A320 [Member] | Airbus [Member] | ||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||
Number of Aircraft Order Conversions | aircraft | 5 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Minimum Lease Payments Under Capital Leases and Noncancelable Operating Leases (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Operating Leased Assets [Line Items] | |
Lease term | 3 years |
Total Operating and Capital Lease Obligations | |
remainder of 2018 | $ 58,049 |
2,019 | 213,003 |
2,020 | 191,761 |
2,021 | 176,858 |
2,022 | 161,307 |
2023 and thereafter | 521,822 |
Total minimum lease payments | 1,322,800 |
Fixed Maintenance Reserve Payments, Aircraft and Related Flight Equipment [Member] | |
Committed Expenditures | |
Committed expenditures, remainder of 2018 | 1,800 |
Committed expenditures, 2019 | 5,800 |
Committed expenditures, 2020 | 5,600 |
Committed expenditures, 2021 | 5,700 |
Committed expenditures, 2022 | 4,900 |
Committed expenditures, 2023 and beyond | 12,900 |
Non-aircraft Related Commitments [Member] | |
Committed Expenditures | |
Committed expenditures, remainder of 2018 | 2,500 |
Committed expenditures, 2019 | 12,600 |
Committed expenditures, 2020 | 12,700 |
Committed expenditures, 2021 | 9,900 |
Committed expenditures, 2022 | 10,000 |
Committed expenditures, 2023 and beyond | 66,600 |
Capital Lease Obligations [Member] | |
Capital Leases | |
remainder of 2018 | 165 |
2,019 | 625 |
2,020 | 249 |
2,021 | 28 |
2,022 | 0 |
2023 and thereafter | 0 |
Total minimum lease payments | 1,067 |
Less amount representing interest | 49 |
Present value of minimum lease payments | 1,018 |
Less current portion | 596 |
Long-term portion | 422 |
Aircraft and Spare Engine Leases [Member] | |
Operating Leases | |
remainder of 2018 | 42,762 |
2,019 | 167,360 |
2,020 | 161,876 |
2,021 | 160,185 |
2,022 | 146,904 |
2023 and thereafter | 419,925 |
Total minimum lease payments | 1,099,012 |
Property Facility Leases [Member] | |
Operating Leases | |
remainder of 2018 | 15,122 |
2,019 | 45,018 |
2,020 | 29,636 |
2,021 | 16,645 |
2,022 | 14,403 |
2023 and thereafter | 101,897 |
Total minimum lease payments | $ 222,721 |
Commitments and Contingencies_4
Commitments and Contingencies - Credit Card Processing Arrangements (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Restricted cash holdbacks | $ 0 | $ 0 |
Maximum Potential Exposure to Cash Holdbacks from Credit Card Processors | $ 341,500,000 | $ 286,300,000 |
Commitments and Contingencies_5
Commitments and Contingencies - Employees (Details) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2018 | Feb. 28, 2018 | Sep. 30, 2018USD ($)employee_group | Dec. 31, 2017USD ($) | |
Air Line Pilots Association, International [Member] | ||||
Concentration Risk [Line Items] | ||||
Term of collective bargaining agreement | 5 years | |||
Professional Airline Flight Control Association [Member] | Subsequent Event [Member] | ||||
Concentration Risk [Line Items] | ||||
Term of collective bargaining agreement | 5 years | |||
Health Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Accrued health care claims | $ | $ 5.6 | $ 3.9 | ||
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of union-represented employee groups | employee_group | 4 | |||
Company's employees covered under collective bargaining agreements (as a percent) | 76.00% | |||
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) | 44.00% | |||
Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | Professional Airline Flight Control Association [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 | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Carrying Value | $ 1,964.6 | $ 1,539.6 |
Senior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 391.4 | 417.9 |
Junior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 33.2 | 39.3 |
Fixed Rate Loan [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 493.9 | 518 |
Equipment Notes, Series A 2015-1 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 393.6 | 408.6 |
Equipment Notes, Series B 2015-1 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 84 | 92 |
Equipment Notes, Series C 2015-1 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 115.2 | 0 |
Equipment Notes, Series AA 2017-1 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 223.3 | 37.5 |
Equipment Notes, Series A 2017-1 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 74.4 | 12.5 |
Equipment Notes, Series B 2017-1 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 76.7 | 13.8 |
Equipment Notes, Series C 2017-1 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 78.9 | 0 |
Estimated Fair Value [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 1,940.3 | 1,583.2 |
Estimated Fair Value [Member] | Level 3 [Member] | Senior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 395.5 | 435.3 |
Estimated Fair Value [Member] | Level 3 [Member] | Junior Loans [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 33.6 | 40.4 |
Estimated Fair Value [Member] | Level 3 [Member] | Fixed Rate Loan [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 487.2 | 528.6 |
Estimated Fair Value [Member] | Level 2 [Member] | Equipment Notes, Series A 2015-1 [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 389.8 | 420.9 |
Estimated Fair Value [Member] | Level 2 [Member] | Equipment Notes, Series B 2015-1 [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 83.5 | 94.2 |
Estimated Fair Value [Member] | Level 2 [Member] | Equipment Notes, Series C 2015-1 [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 114.4 | 0 |
Estimated Fair Value [Member] | Level 2 [Member] | Equipment Notes, Series AA 2017-1 [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 213.6 | 37.4 |
Estimated Fair Value [Member] | Level 2 [Member] | Equipment Notes, Series A 2017-1 [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 71.1 | 12.6 |
Estimated Fair Value [Member] | Level 2 [Member] | Equipment Notes, Series B 2017-1 [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | 73.3 | 13.8 |
Estimated Fair Value [Member] | Level 2 [Member] | Equipment Notes, Series C 2017-1 [Member] | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | $ 78.3 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 773.7 | $ 800.8 |
Short-term investment securities | 102.2 | 100.9 |
Total assets | 875.9 | 901.7 |
Total liabilities | 0 | 0 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 773.7 | 800.8 |
Short-term investment securities | 102.2 | 100.9 |
Total assets | 875.9 | 901.7 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investment securities | 0 | 0 |
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investment securities | 0 | 0 |
Total assets | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Debt and Other Obligations (Det
Debt and Other Obligations (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
May 31, 2018USD ($)aircraftagreement | Nov. 30, 2017USD ($)aircrafttrust | Sep. 30, 2018USD ($)aircraft | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)aircraft | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 1,964,600 | $ 1,964,600 | $ 1,539,600 | |||||
Less current maturities | 150,200 | 150,200 | 115,430 | $ 84,354 | ||||
Less unamortized discounts | 43,900 | 43,900 | 36,700 | |||||
Total | 1,770,500 | 1,770,500 | 1,387,498 | $ 897,359 | ||||
Repayments of debt obligations | 32,600 | $ 13,400 | 93,200 | $ 63,400 | ||||
Equipment Notes, 2017-1 Series AA, A and B [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of pass-through trusts | trust | 3 | |||||||
Debt financing commitments | $ 420,500 | |||||||
Principal amount | 388,000 | 388,000 | ||||||
Senior Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 391,400 | $ 391,400 | 417,900 | |||||
Weighted-average interest rate | 4.10% | 4.10% | 4.10% | 4.10% | ||||
Junior Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 33,200 | $ 33,200 | 39,300 | |||||
Weighted-average interest rate | 6.90% | 6.90% | 6.90% | 6.90% | ||||
Fixed Rate Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 493,900 | $ 493,900 | 518,000 | |||||
Weighted-average interest rate | 3.83% | 3.76% | 3.83% | 3.76% | ||||
Equipment Notes, Series A 2015-1 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 393,600 | $ 393,600 | 408,600 | |||||
Weighted-average interest rate | 4.10% | 4.10% | 4.10% | 4.10% | ||||
Equipment Notes, Series B 2015-1 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 84,000 | $ 84,000 | 92,000 | |||||
Weighted-average interest rate | 4.45% | 4.45% | 4.45% | 4.45% | ||||
Equipment Notes, Series C 2015-1 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of separation participation agreement amendments | agreement | 15 | |||||||
Long-term debt | $ 115,200 | $ 115,200 | 0 | |||||
Weighted-average interest rate | 4.93% | 4.93% | ||||||
Equipment Notes, Series C 2015-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.93% | 4.93% | ||||||
Principal amount | $ 115,200 | |||||||
Equipment Notes, Series AA 2017-1 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 223,300 | $ 223,300 | 37,500 | |||||
Weighted-average interest rate | 3.38% | 3.38% | ||||||
Equipment Notes, Series AA 2017-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 3.375% | 3.375% | ||||||
Equipment Notes, Series A 2017-1 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 74,400 | $ 74,400 | 12,500 | |||||
Weighted-average interest rate | 3.65% | 3.65% | ||||||
Equipment Notes, Series A 2017-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 3.65% | 3.65% | ||||||
Equipment Notes, Series B 2017-1 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 76,700 | $ 76,700 | 13,800 | |||||
Weighted-average interest rate | 3.80% | 3.80% | ||||||
Equipment Notes, Series B 2017-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 3.80% | 3.80% | ||||||
Equipment Notes, Series C 2017-1 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of separation participation agreement amendments | agreement | 9 | |||||||
Long-term debt | $ 78,900 | $ 78,900 | $ 0 | |||||
Weighted-average interest rate | 5.11% | 5.11% | ||||||
Equipment Notes, Series C 2017-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 5.11% | 5.11% | ||||||
Debt commitment principal amount | $ 85,500 | |||||||
Principal amount | $ 65,700 | $ 13,200 | $ 13,200 | |||||
A320 [Member] | Equipment Notes, 2017-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of aircraft with secured debt financing commitments scheduled for delivery | aircraft | 7 | |||||||
Number of delivered aircraft with secured debt financing commitments | aircraft | 6 | 6 | ||||||
A321 [Member] | Equipment Notes, 2017-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of aircraft with secured debt financing commitments scheduled for delivery | aircraft | 5 | |||||||
Number of delivered aircraft with secured debt financing commitments | aircraft | 5 | 5 | ||||||
Capital Addition Purchase Commitments [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt financing commitments | $ 39,100 | $ 39,100 | ||||||
Capital Addition Purchase Commitments [Member] | Equipment Notes, 2017-1 Series AA, A and B [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt financing commitments | 32,500 | 32,500 | ||||||
Capital Addition Purchase Commitments [Member] | Equipment Notes, Series C 2017-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt financing commitments | $ 6,600 | $ 6,600 | ||||||
February 2018 To March 2018 [Member] | A321 [Member] | Equipment Notes, 2017-1 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of aircraft with secured debt financing commitments scheduled for delivery | aircraft | 5 | |||||||
February 2018 To March 2018 [Member] | A321 [Member] | Equipment Notes, 2017-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of delivered aircraft with secured debt financing commitments | aircraft | 5 | |||||||
December 2017 To January 2018 [Member] | A320 [Member] | Equipment Notes, 2017-1 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of aircraft with secured debt financing commitments scheduled for delivery | aircraft | 3 | |||||||
April 2018 to August 2018 [Member] | A320 [Member] | Equipment Notes, 2017-1 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of aircraft with secured debt financing commitments scheduled for delivery | aircraft | 3 | |||||||
October 2015 to January 2017 [Member] | A321 [Member] | Equipment notes, 2015-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of delivered aircraft with secured debt financing commitments | aircraft | 12 | |||||||
2018 [Member] | A320 [Member] | Equipment Notes, 2017-1 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of aircraft with secured debt financing commitments scheduled for delivery | aircraft | 1 | 1 | 1 | |||||
March 2016 to June 2016 [Member] | A320 [Member] | Equipment notes, 2015-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of delivered aircraft with secured debt financing commitments | aircraft | 3 | |||||||
December 2017 to April 2018 [Member] | A320 [Member] | Equipment Notes, 2017-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of delivered aircraft with secured debt financing commitments | aircraft | 4 | |||||||
October 2018 [Member] | A320 [Member] | Equipment Notes, 2017-1 [Member] | Enhanced Equipment Trust Certificate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of delivered aircraft with secured debt financing commitments | aircraft | 2 | 2 |
Debt and Other Obligations - Fu
Debt and Other Obligations - Future Maturities (Details) $ in Millions | Sep. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
remainder of 2018 | $ 44 |
2,019 | 158.3 |
2,020 | 155.3 |
2,021 | 151 |
2,022 | 147.9 |
2023 and beyond | 1,308.1 |
Total debt principal payments | $ 1,964.6 |
Debt and Other Obligations - In
Debt and Other Obligations - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | ||||
Commitment fees | $ 50 | $ 29 | $ 153 | $ 87 |
Amortization of debt discounts | 1,784 | 1,362 | 4,930 | 3,883 |
Total | 21,910 | 14,996 | 60,189 | 41,107 |
Senior Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | 4,195 | 4,564 | 12,769 | 13,854 |
Junior Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | 605 | 746 | 1,908 | 2,323 |
Fixed Rate Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | 4,844 | 2,811 | 14,636 | 4,555 |
Equipment Notes, Series A 2015-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | 4,057 | 4,366 | 12,214 | 12,995 |
Equipment Notes, Series B 2015-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | 939 | 1,118 | 2,881 | 3,410 |
Equipment Notes, Series C 2015-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | 1,420 | 0 | 2,209 | 0 |
Equipment Notes, Series AA 2017-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | 1,751 | 0 | 4,008 | 0 |
Equipment Notes, Series A 2017-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | 631 | 0 | 1,445 | 0 |
Equipment Notes, Series B 2017-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | 700 | 0 | 1,636 | 0 |
Equipment Notes, Series C 2017-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense, term loans | $ 934 | $ 0 | $ 1,400 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] | Oct. 24, 2018USD ($) | Oct. 23, 2018USD ($)aircraft |
Subsequent Event [Line Items] | ||
Number of aircraft related to PDPs | aircraft | 43 | |
Revolving Credit Facility [Member] | ||
Subsequent Event [Line Items] | ||
Borrowing capacity (up to) | $ 160,000,000 | |
Amounts drawn | $ 0 |