Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | DELTA AIR LINES INC /DE/ | |
Entity Central Index Key | 27904 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Common stock, par value per share | $0.00 | $0.00 |
Entity Common Stock, Shares Outstanding | 816,296,778 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $2,122 | $2,088 |
Short-term investments | 1,447 | 1,217 |
Accounts receivable, net of an allowance for uncollectible accounts of $9 and $11 at March 31, 2015 and December 31, 2014, respectively | 2,057 | 2,297 |
Hedge margin receivable | 383 | 925 |
Fuel inventory | 475 | 534 |
Expendable parts and supplies inventories, net of an allowance for obsolescence of $119 and $127 at March 31, 2015 and December 31, 2014, respectively | 326 | 318 |
Hedge derivatives asset | 1,575 | 1,078 |
Deferred income taxes, net | 3,091 | 3,275 |
Prepaid expenses and other | 790 | 733 |
Total current assets | 12,266 | 12,465 |
Property and Equipment, Net: | ||
Property and equipment, net of accumulated depreciation and amortization of $9,765 and $9,340 at March 31, 2015 and December 31, 2014, respectively | 22,023 | 21,929 |
Other Assets: | ||
Goodwill | 9,794 | 9,794 |
Identifiable intangibles, net of accumulated amortization of $797 and $793 at March 31, 2015 and December 31, 2014, respectively | 4,599 | 4,603 |
Deferred income taxes, net | 4,051 | 4,320 |
Other noncurrent assets | 1,019 | 1,010 |
Total other assets | 19,463 | 19,727 |
Total assets | 53,752 | 54,121 |
Current Liabilities: | ||
Current maturities of long-term debt and capital leases | 1,261 | 1,216 |
Air traffic liability | 5,866 | 4,296 |
Accounts payable | 2,492 | 2,622 |
Accrued salaries and related benefits | 1,622 | 2,266 |
Hedge derivatives liability | 2,512 | 2,772 |
Frequent flyer deferred revenue | 1,575 | 1,580 |
Other accrued liabilities | 1,991 | 2,127 |
Total current liabilities | 17,319 | 16,879 |
Noncurrent Liabilities: | ||
Long-term debt and capital leases | 8,305 | 8,561 |
Pension, postretirement and related benefits | 14,170 | 15,138 |
Frequent flyer deferred revenue | 2,455 | 2,602 |
Other noncurrent liabilities | 2,457 | 2,128 |
Total noncurrent liabilities | 27,387 | 28,429 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Common stock at $0.0001 par value; 1,500,000,000 shares authorized, 837,176,320 and 845,048,310 shares issued at March 31, 2015 and December 31, 2014, respectively | 0 | 0 |
Additional paid-in capital | 12,578 | 12,981 |
Retained earnings | 4,127 | 3,456 |
Accumulated other comprehensive loss | -7,294 | -7,311 |
Treasury stock, at cost, 20,879,542 and 19,790,077 shares at March 31, 2015 and December 31, 2014, respectively | -365 | -313 |
Total stockholders' equity | 9,046 | 8,813 |
Total liabilities and stockholders' equity | $53,752 | $54,121 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Current Assets: | ||
Allowance for uncollectible accounts | $9 | $11 |
Allowance for obsolescence | 119 | 127 |
Property, Plant and Equipment [Abstract] | ||
Accumulated depreciation and amortization | 9,765 | 9,340 |
Other Assets: | ||
Accumulated amortization | $797 | $793 |
Stockholders' Equity: | ||
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 837,176,320 | 845,048,310 |
Treasury stock, shares | 20,879,542 | 19,790,077 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Revenue: | ||
Mainline | $6,549 | $6,224 |
Regional carriers | 1,374 | 1,453 |
Total passenger revenue | 7,923 | 7,677 |
Cargo | 217 | 217 |
Other | 1,248 | 1,022 |
Total operating revenue | 9,388 | 8,916 |
Operating Expense: | ||
Salaries and related costs | 2,092 | 1,969 |
Aircraft fuel and related taxes | 1,835 | 2,226 |
Regional carrier expense | 1,053 | 1,319 |
Depreciation and amortization | 470 | 442 |
Aircraft maintenance materials and outside repairs | 452 | 448 |
Contracted services | 441 | 427 |
Passenger commissions and other selling expenses | 386 | 373 |
Landing fees and other rents | 373 | 341 |
Passenger service | 190 | 173 |
Profit sharing | 136 | 99 |
Aircraft rent | 60 | 51 |
Restructuring and other items | 10 | 49 |
Other | 492 | 379 |
Total operating expense | 7,990 | 8,296 |
Operating Income | 1,398 | 620 |
Other Expense: | ||
Interest expense, net | -131 | -186 |
Loss on extinguishment of debt | 0 | -18 |
Miscellaneous, net | -81 | -81 |
Total other expense, net | -212 | -285 |
Income Before Income Taxes | 1,186 | 335 |
Income Tax Provision | -440 | -122 |
Net Income | 746 | 213 |
Basic Earnings Per Share | $0.91 | $0.25 |
Diluted Earnings Per Share | $0.90 | $0.25 |
Cash Dividends Declared Per Share | $0.09 | $0.06 |
Comprehensive Income | ||
Comprehensive Income | $763 | $204 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Cash Provided by Operating Activities | $1,636 | $951 |
Cash Flows From Investing Activities: | ||
Flight equipment, including advance payments | -451 | -514 |
Ground property and equipment, including technology | -135 | -100 |
Purchase of short-term investments | -344 | -240 |
Redemption of short-term investments | 115 | 251 |
Other, net | 3 | 40 |
Net cash used in investing activities | -812 | -563 |
Cash Flows From Financing Activities: | ||
Payments on long-term debt and capital lease obligations | -301 | -412 |
Repurchase of common stock | -425 | -125 |
Cash dividends | -75 | -51 |
Proceeds from long-term obligations | 41 | 59 |
Other, net | -30 | -4 |
Net cash used in financing activities | -790 | -533 |
Net Increase (Decrease) in Cash and Cash Equivalents | 34 | -145 |
Cash and cash equivalents at beginning of period | 2,088 | 2,844 |
Cash and cash equivalents at end of period | 2,122 | 2,699 |
Non-Cash Transactions: | ||
Flight equipment under capital leases | $39 | $10 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation | |
The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Delta Air Lines, Inc. and our wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Consistent with these requirements, this Form 10-Q does not include all the information required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Form 10-K. | |
Management believes the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, including normal recurring items and restructuring and other items, considered necessary for a fair statement of results for the interim periods presented. | |
Due to seasonal variations in the demand for air travel, the volatility of aircraft fuel prices, changes in global economic conditions and other factors, operating results for the three months ended March 31, 2015 are not necessarily indicative of operating results for the entire year. | |
We reclassified certain prior period amounts, none of which were material, to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. | |
Recent Accounting Standards | |
Revenue from Contracts with Customers | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers." While the standard supersedes existing revenue recognition guidance, it closely aligns with current GAAP. Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. | |
On April 1, 2015, the FASB proposed deferring the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of December 15, 2016. We are currently evaluating the impact, if any, the adoption of this standard will have on our Consolidated Financial Statements. | |
Presentation of Debt Issuance Costs | |
In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. We are currently evaluating the impact the adoption of this standard will have on our Consolidated Financial Statements. |
Segments
Segments | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||
Segments | SEGMENTS | ||||||||||||||
Refinery Operations | |||||||||||||||
We own and operate an oil refinery as part of our strategy to reduce the cost of the refining margin we pay. The refinery's production consists of jet fuel, as well as gasoline, diesel and other refined products ("non-jet fuel products"). We use several counterparties to exchange the non-jet fuel products produced by the refinery for jet fuel consumed in our airline operations. The gross fair value of the products exchanged under these agreements during the three months ended March 31, 2015 and 2014 was $782 million and $1.0 billion, respectively. | |||||||||||||||
Segment Reporting | |||||||||||||||
Segment results are prepared based on our internal accounting policies described below, with reconciliations to consolidated amounts in accordance with GAAP. | |||||||||||||||
(in millions) | Airline | Refinery | Intersegment Sales/Other | Consolidated | |||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||
Operating revenue: | $ | 9,314 | $ | 1,140 | $ | 9,388 | |||||||||
Sales to airline segment | $ | (233 | ) | (1) | |||||||||||
Exchanged products | (782 | ) | (2) | ||||||||||||
Sales of refined products to third parties | (51 | ) | (3) | ||||||||||||
Operating income(4) | 1,312 | 86 | — | 1,398 | |||||||||||
Interest expense, net | 131 | — | — | 131 | |||||||||||
Depreciation and amortization | 463 | 7 | — | 470 | |||||||||||
Total assets, end of period | 52,696 | 1,056 | — | 53,752 | |||||||||||
Capital expenditures | 579 | 7 | — | 586 | |||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||
Operating revenue: | $ | 8,916 | $ | 1,463 | $ | 8,916 | |||||||||
Sales to airline segment | $ | (249 | ) | (1) | |||||||||||
Exchanged products | (1,003 | ) | (2) | ||||||||||||
Sales of refined products to third parties | (211 | ) | (3) | ||||||||||||
Operating income (loss)(4) | 661 | (41 | ) | — | 620 | ||||||||||
Interest expense, net | 186 | — | — | 186 | |||||||||||
Depreciation and amortization | 437 | 5 | — | 442 | |||||||||||
Total assets, end of period | 51,016 | 1,151 | — | 52,167 | |||||||||||
Capital expenditures | 592 | 22 | — | 614 | |||||||||||
(1) | Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location, which is New York Harbor, for jet fuel from the refinery. | ||||||||||||||
(2) | Represents value of products delivered under exchange agreements with third parties, as discussed above, determined on a market price basis. | ||||||||||||||
(3) | Represents sales of refined products to third parties. These sales were at or near cost; accordingly, the margin on these sales is de minimis. | ||||||||||||||
(4) | Includes the impact of pricing arrangements between the airline segment and refinery segment with respect to the refinery's inventory price risk. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Fair Value Disclosures [Abstract] | ||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS | |||||||||
Assets (Liabilities) Measured at Fair Value on a Recurring Basis | ||||||||||
(in millions) | March 31, | Level 1 | Level 2 | |||||||
2015 | ||||||||||
Cash equivalents | $ | 1,618 | $ | 1,618 | $ | — | ||||
Short-term investments | ||||||||||
U.S. government and agency securities | 135 | 63 | 72 | |||||||
Asset- and mortgage-backed securities | 395 | — | 395 | |||||||
Corporate obligations | 894 | — | 894 | |||||||
Other fixed income securities | 23 | — | 23 | |||||||
Restricted cash equivalents and investments | 45 | 45 | — | |||||||
Long-term investments | 99 | 73 | 26 | |||||||
Hedge derivatives, net | ||||||||||
Fuel hedge contracts | (1,428 | ) | (68 | ) | (1,360 | ) | ||||
Interest rate contract | (1 | ) | — | (1 | ) | |||||
Foreign currency exchange contracts | 96 | — | 96 | |||||||
(in millions) | December 31, | Level 1 | Level 2 | |||||||
2014 | ||||||||||
Cash equivalents | $ | 1,612 | $ | 1,612 | $ | — | ||||
Short-term investments | ||||||||||
U.S. government and agency securities | 59 | — | 59 | |||||||
Asset- and mortgage-backed securities | 392 | — | 392 | |||||||
Corporate obligations | 749 | — | 749 | |||||||
Other fixed income securities | 17 | — | 17 | |||||||
Restricted cash equivalents and investments | 37 | 37 | — | |||||||
Long-term investments | 118 | 90 | 28 | |||||||
Hedge derivatives, net | ||||||||||
Fuel hedge contracts | (1,848 | ) | (167 | ) | (1,681 | ) | ||||
Interest rate contract | (7 | ) | — | (7 | ) | |||||
Foreign currency exchange contracts | 73 | — | 73 | |||||||
Cash Equivalents and Restricted Cash Equivalents and Investments. Cash equivalents generally consist of money market funds. Restricted cash equivalents and investments primarily support letters of credit that relate to certain projected self-insurance obligations and airport commitments and generally consist of money market funds and time deposits. The fair value of these investments is based on a market approach using prices and other relevant information generated by market transactions involving identical or comparable assets. | ||||||||||
Short-Term Investments. The fair values of short-term investments are based on a market approach using industry standard valuation techniques that incorporate observable inputs such as quoted market prices, interest rates, benchmark curves, credit ratings of the security and other observable information. | ||||||||||
Long-Term Investments. Our long-term investments that are measured at fair value primarily consist of equity investments in Grupo Aeroméxico, S.A.B. de C.V., the parent company of Aeroméxico, and GOL Linhas Aéreas Inteligentes, S.A, the parent company of VRG Linhas Aéreas (operating as GOL). Shares of the parent companies of Aeroméxico and GOL are traded on public exchanges and we have valued our investments based on quoted market prices. The investments are classified in other noncurrent assets. | ||||||||||
Hedge Derivatives. Our derivative contracts are generally negotiated with counterparties without going through a public exchange. Accordingly, our fair value assessments give consideration to the risk of counterparty default (as well as our own credit risk). | ||||||||||
• | Fuel Contracts. Our fuel hedge portfolio consists of options, swaps and futures. The hedge contracts include crude oil, diesel fuel and jet fuel, as these commodities are highly correlated with the price of jet fuel that we consume. Option contracts are valued under an income approach using option pricing models based on data either readily observable in public markets, derived from public markets or provided by counterparties who regularly trade in public markets. Volatilities used in these valuations ranged from 26% to 73% depending on the maturity dates, underlying commodities and strike prices of the option contracts. Swap contracts are valued under an income approach using a discounted cash flow model based on data either readily observable or derived from public markets. Discount rates used in these valuations vary with the maturity dates of the respective contracts and are based on LIBOR. Futures contracts and options on futures contracts are traded on a public exchange and valued based on quoted market prices. | |||||||||
• | Interest Rate Contract. Our interest rate derivative is a swap contract, which is valued based on data readily observable in public markets. | |||||||||
• | Foreign Currency Exchange Contracts. Our foreign currency derivatives consist of Japanese yen and Canadian dollar forward contracts and are valued based on data readily observable in public markets. |
Investments
Investments | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Short-term Investments [Abstract] | ||||||
Investments | INVESTMENTS | |||||
Short-Term Investments | ||||||
The estimated fair values of short-term investments, which approximate cost at March 31, 2015, are shown below by contractual maturity. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to retire our investment without prepayment penalties. | ||||||
(in millions) | Available-For-Sale | |||||
31-Mar-15 | ||||||
Due in one year or less | $ | 299 | ||||
Due after one year through three years | 902 | |||||
Due after three years through five years | 162 | |||||
Due after five years | 84 | |||||
Total | $ | 1,447 | ||||
Derivatives
Derivatives | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Derivatives | DERIVATIVES | |||||||||||||||||||
Changes in aircraft fuel prices, interest rates and foreign currency exchange rates impact our results of operations. In an effort to manage our exposure to these risks, we enter into derivative contracts and adjust our derivative portfolio as market conditions change. | ||||||||||||||||||||
Aircraft Fuel Price Risk | ||||||||||||||||||||
Changes in aircraft fuel prices materially impact our results of operations. We actively manage our fuel price risk through a hedging program intended to reduce the financial impact from changes in the price of jet fuel. We utilize different contract and commodity types in this program and frequently test their economic effectiveness against our financial targets. We rebalance the hedge portfolio from time to time according to market conditions, which may result in locking in gains or losses on hedge contracts prior to their settlement dates. During the three months ended March 31, 2015 and 2014, we recorded a $411 million fuel hedge loss and a $78 million fuel hedge gain, respectively. | ||||||||||||||||||||
During the March 2015 quarter, we restructured our fuel hedge portfolio by early settling certain 2015 hedges and deferring the settlement of a portion of the remaining positions. We paid $302 million to early settle contracts that were in a loss position and originally scheduled to expire in the second half of 2015. Additionally, we effectively deferred settlement of a portion of our hedge portfolio until 2016 by entering into fuel derivative transactions that will provide approximately $300 million in cash receipts during the second half of 2015 and require approximately $300 million in cash payments in 2016 (excluding market movements from the date of the transactions). By effectively deferring settlement of a portion of the original derivative transactions, the restructured hedge portfolio provides additional time for the fuel market to stabilize while adding some hedge protection in 2016. Cash flows associated with these deferral transactions will be reported as cash flows from financing activities within our Condensed Consolidated Statement of Cash Flows in the settlement period. | ||||||||||||||||||||
Hedge Position as of March 31, 2015 | ||||||||||||||||||||
(in millions) | Volume | Final Maturity Date | Hedge Derivatives Asset | Other Noncurrent Assets | Hedge Derivatives Liability | Other Noncurrent Liabilities | Hedge Derivatives, net | |||||||||||||
Designated as hedges | ||||||||||||||||||||
Interest rate contract (fair value hedge) | 400 | U.S. dollars | Aug-22 | 5 | — | — | (6 | ) | (1 | ) | ||||||||||
Foreign currency exchange contracts | 63,914 | Japanese yen | Jan-18 | 48 | 48 | — | — | 96 | ||||||||||||
506 | Canadian dollars | |||||||||||||||||||
Not designated as hedges | ||||||||||||||||||||
Fuel hedge contracts | 1,618 | gallons - crude oil, diesel and jet fuel | Dec-16 | 1,522 | 35 | (2,512 | ) | (473 | ) | (1,428 | ) | |||||||||
Total derivative contracts | $ | 1,575 | $ | 83 | $ | (2,512 | ) | $ | (479 | ) | $ | (1,333 | ) | |||||||
Hedge Position as of December 31, 2014 | ||||||||||||||||||||
(in millions) | Volume | Final Maturity Date | Hedge Derivatives Asset | Other Noncurrent Assets | Hedge Derivatives Liability | Other Noncurrent Liabilities | Hedge Derivatives, net | |||||||||||||
Designated as hedges | ||||||||||||||||||||
Interest rate contract (fair value hedge) | 416 | U.S. dollars | Aug-22 | 5 | — | — | (12 | ) | (7 | ) | ||||||||||
Foreign currency exchange contracts | 77,576 | Japanese yen | Oct-17 | 25 | 49 | (1 | ) | — | 73 | |||||||||||
511 | Canadian dollars | |||||||||||||||||||
Not designated as hedges | ||||||||||||||||||||
Fuel hedge contracts | 3,286 | gallons - crude oil, diesel and jet fuel | Dec-16 | 1,048 | 3 | (2,771 | ) | (128 | ) | (1,848 | ) | |||||||||
Total derivative contracts | $ | 1,078 | $ | 52 | $ | (2,772 | ) | $ | (140 | ) | $ | (1,782 | ) | |||||||
Offsetting Assets and Liabilities | ||||||||||||||||||||
We have master netting arrangements with our counterparties giving us the right of setoff. We have elected not to offset the fair value positions recorded on our Consolidated Balance Sheets. The following table shows the net fair value positions had we elected to offset. | ||||||||||||||||||||
(in millions) | Hedge Derivatives Asset | Other Noncurrent Assets | Hedge Derivatives Liability | Other Noncurrent Liabilities | Hedge Derivatives, net | |||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Net derivative contracts | $ | 148 | $ | 48 | $ | (1,074 | ) | $ | (455 | ) | $ | (1,333 | ) | |||||||
December 31, 2014 | ||||||||||||||||||||
Net derivative contracts | $ | 29 | $ | 49 | $ | (1,723 | ) | $ | (137 | ) | $ | (1,782 | ) | |||||||
Designated Hedge Gains (Losses) | ||||||||||||||||||||
Gains (losses) related to our designated hedge contracts are as follows: | ||||||||||||||||||||
Effective Portion Reclassified from AOCI to Earnings | Effective Portion Recognized in Other Comprehensive Income | |||||||||||||||||||
(in millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
Foreign currency exchange contracts | 51 | 43 | (16 | ) | (51 | ) | ||||||||||||||
As of March 31, 2015, we have recorded $158 million of gains on cash flow hedge contracts in accumulated other comprehensive (loss)/income ("AOCI"), which are scheduled to settle and be reclassified into earnings within the next 12 months. | ||||||||||||||||||||
Credit Risk | ||||||||||||||||||||
To manage credit risk associated with our aircraft fuel price, interest rate and foreign currency hedging programs, we evaluate counterparties based on several criteria including their credit ratings and limit our exposure to any one counterparty. | ||||||||||||||||||||
Our hedge contracts contain margin funding requirements. The margin funding requirements may cause us to post margin to counterparties or may cause counterparties to post margin to us as market prices in the underlying hedged items change. Due to the fair value position of our hedge contracts, we posted margin of $383 million and $925 million as of March 31, 2015 and December 31, 2014, respectively. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Long-Term Debt | LONG-TERM DEBT | ||||||
Fair Value of Debt | |||||||
Market risk associated with our fixed- and variable-rate long-term debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. In the table below, the aggregate fair value of debt is based primarily on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral and is classified primarily as Level 2 within the fair value hierarchy. | |||||||
(in millions) | March 31, | December 31, | |||||
2015 | 2014 | ||||||
Total debt at par value | $ | 9,261 | $ | 9,469 | |||
Unamortized discount, net | (78 | ) | (90 | ) | |||
Net carrying amount | $ | 9,183 | $ | 9,379 | |||
Fair value | $ | 9,600 | $ | 9,800 | |||
Covenants | |||||||
We were in compliance with the covenants in our financing agreements at March 31, 2015. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS | ||||||||||||
The following table shows the components of net periodic cost: | |||||||||||||
Pension Benefits | Other Postretirement and | ||||||||||||
Postemployment Benefits | |||||||||||||
(in millions) | 2015 | 2014 | 2015 | 2014 | |||||||||
Three Months Ended March 31, | |||||||||||||
Service cost | $ | — | $ | — | $ | 16 | $ | 13 | |||||
Interest cost | 221 | 232 | 35 | 39 | |||||||||
Expected return on plan assets | (220 | ) | (207 | ) | (20 | ) | (21 | ) | |||||
Amortization of prior service credit | — | — | (7 | ) | (7 | ) | |||||||
Recognized net actuarial loss | 58 | 34 | 6 | 1 | |||||||||
Net periodic cost | $ | 59 | $ | 59 | $ | 30 | $ | 25 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | |||
Aircraft Purchase and Lease Commitments | ||||
At March 31, 2015, future aircraft purchase commitments totaled approximately $13.6 billion and included 63 B-737-900ER, 45 A321-200, 25 A330-900neo, 25 A350-900, 18 B-787-8, 10 A330-300, 5 B-757-200 and 3 B-717-200 aircraft. We have obtained long-term financing commitments for a substantial portion of the purchase price of these aircraft, except for the 18 B-787-8 aircraft. Our purchase commitment for the 18 B-787-8 aircraft provides for certain aircraft substitution rights. | ||||
(in millions) | Total | |||
Nine months ending December 31, 2015 | $ | 1,140 | ||
2016 | 1,970 | |||
2017 | 2,390 | |||
2018 | 2,230 | |||
2019 | 1,060 | |||
Thereafter | 4,820 | |||
Total | $ | 13,610 | ||
In addition, we have agreements with Southwest Airlines and The Boeing Company to lease an additional 27 B-717-200 aircraft, which will be delivered during 2015. | ||||
Venezuelan Currency Devaluation | ||||
As of March 31, 2015, we had $93 million of unrestricted cash on our Consolidated Balance Sheets primarily related to our 2013 Venezuelan ticket sales for which repatriation has been requested, but not yet authorized. While the cash is available for use in Venezuela, our ability to repatriate these funds has been limited due to Venezuelan government controls. Until these funds can be repatriated, they are at risk of future devaluations. | ||||
Legal Contingencies | ||||
We are involved in various legal proceedings related to employment practices, environmental issues, antitrust matters and other matters concerning our business. We record liabilities for losses from legal proceedings when we determine that it is probable that the outcome in a legal proceeding will be unfavorable and the amount of loss can be reasonably estimated. We cannot reasonably estimate the potential loss for certain legal proceedings because, for example, the litigation is in its early stages or the plaintiff does not specify the damages being sought. Although the outcome of the legal proceedings in which we are involved cannot be predicted with certainty, management believes that the resolution of these matters will not have a material adverse effect on our Condensed Consolidated Financial Statements. | ||||
Other Contingencies | ||||
General Indemnifications | ||||
We are the lessee under many commercial real estate leases. It is common in these transactions for us, as the lessee, to agree to indemnify the lessor and the lessor's related parties for tort, environmental and other liabilities that arise out of or relate to our use or occupancy of the leased premises. This type of indemnity would typically make us responsible to indemnified parties for liabilities arising out of the conduct of, among others, contractors, licensees and invitees at, or in connection with, the use or occupancy of the leased premises. This indemnity often extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by either their sole or gross negligence or their willful misconduct. | ||||
Our aircraft and other equipment lease and financing agreements typically contain provisions requiring us, as the lessee or obligor, to indemnify the other parties to those agreements, including certain of those parties' related persons, against virtually any liabilities that might arise from the use or operation of the aircraft or other equipment. | ||||
We believe that our insurance would cover most of our exposure to liabilities and related indemnities associated with the commercial real estate leases and aircraft and other equipment lease and financing agreements described above. While our insurance does not typically cover environmental liabilities, we have certain insurance policies in place as required by applicable environmental laws. | ||||
Certain of our aircraft and other financing transactions include provisions that require us to make payments to preserve an expected economic return to the lenders if that economic return is diminished due to certain changes in laws or regulations. In certain of these financing transactions, we also bear the risk of certain changes in tax laws that would subject payments to non-U.S. lenders to withholding taxes. | ||||
We cannot reasonably estimate our potential future payments under the indemnities and related provisions described above because we cannot predict (1) when and under what circumstances these provisions may be triggered and (2) the amount that would be payable if the provisions were triggered because the amounts would be based on facts and circumstances existing at such time. | ||||
Employees Under Collective Bargaining Agreements | ||||
At March 31, 2015, we had approximately 81,000 full-time equivalent employees. Approximately 18% of these employees were represented by unions. | ||||
During the March 2015 quarter, we reached a new collective bargaining agreement with the union representing our refinery employees. The agreement will expire on February 28, 2019. | ||||
Other | ||||
We have certain contracts for goods and services that require us to pay a penalty, acquire inventory specific to us or purchase contract-specific equipment, as defined by each respective contract, if we terminate the contract without cause prior to its expiration date. Because these obligations are contingent on our termination of the contract without cause prior to its expiration date, no obligation would exist unless such a termination occurs. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||
The following tables show the components of accumulated other comprehensive loss: | |||||||||||||
(in millions) | Pension and Other Benefits Liabilities(2) | Derivative Contracts | Investments | Total | |||||||||
Balance at January 1, 2015 | $ | (7,517 | ) | $ | 222 | $ | (16 | ) | $ | (7,311 | ) | ||
Changes in value (net of tax effect of $13) | — | 22 | (12 | ) | 10 | ||||||||
Reclassifications into earnings (net of tax effect of $5)(1) | 39 | (32 | ) | — | 7 | ||||||||
Balance at March 31, 2015 | $ | (7,478 | ) | $ | 212 | $ | (28 | ) | $ | (7,294 | ) | ||
(in millions) | Pension and Other Benefits Liabilities(2) | Derivative Contracts | Investments | Total | |||||||||
Balance at January 1, 2014 | $ | (5,323 | ) | $ | 219 | $ | (26 | ) | $ | (5,130 | ) | ||
Changes in value (net of tax effect of $2) | — | (3 | ) | 10 | 7 | ||||||||
Reclassifications into earnings (net of tax effect of $9)(1) | 12 | (28 | ) | — | (16 | ) | |||||||
Balance at March 31, 2014 | $ | (5,311 | ) | $ | 188 | $ | (16 | ) | $ | (5,139 | ) | ||
(1) | Amounts reclassified from AOCI for pension and other benefits liabilities are recorded in salaries and related costs in the Condensed Consolidated Statements of Operations and Comprehensive Income. Amounts reclassified from AOCI for derivative contracts designated as foreign currency cash flow hedges and interest rate cash flow hedges are recorded in passenger revenue and interest expense, net, respectively, in the Condensed Consolidated Statements of Operations and Comprehensive Income. Amounts reclassified from AOCI for investments are recorded in interest expense, net in the Condensed Consolidated Statements of Operations and Comprehensive Income. | ||||||||||||
(2) | Includes $1.9 billion of deferred income tax expense primarily related to pension obligations that will not be recognized in net income until the pension obligations are fully extinguished. |
Restructuring_and_Other_Items
Restructuring and Other Items | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Restructuring and Related Activities [Abstract] | |||||||
Restructuring and Other Items | RESTRUCTURING AND OTHER ITEMS | ||||||
During the March 2015 quarter, we recorded a $10 million charge associated with our fleet restructuring initiative. We continue to restructure our domestic fleet by replacing a significant portion of our 50-seat regional flying with more efficient and customer preferred CRJ-900 and B-717-200 aircraft and replacing older, less cost effective B-757-200 aircraft with B-737-900ER aircraft. These restructuring charges include remaining lease payments and lease return costs for permanently grounded aircraft. | |||||||
The following table shows the balances and activity for restructuring charges: | |||||||
(in millions) | Severance and Related Costs | Lease Restructuring | |||||
Liability as of January 1, 2015 | $ | 42 | $ | 462 | |||
Additional costs and expenses | — | 10 | |||||
Payments | (24 | ) | (20 | ) | |||
Liability as of March 31, 2015 | $ | 18 | $ | 452 | |||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Earnings Per Share | EARNINGS PER SHARE | ||||||
We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding, excluding restricted shares. Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material. The following table shows the computation of basic and diluted earnings per share: | |||||||
Three Months Ended March 31, | |||||||
(in millions, except per share data) | 2015 | 2014 | |||||
Net income | $ | 746 | $ | 213 | |||
Basic weighted average shares outstanding | 818 | 844 | |||||
Dilutive effect of share-based awards | 8 | 9 | |||||
Diluted weighted average shares outstanding | 826 | 853 | |||||
Basic earnings per share | $ | 0.91 | $ | 0.25 | |||
Diluted earnings per share | $ | 0.9 | $ | 0.25 | |||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Delta Air Lines, Inc. and our wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Consistent with these requirements, this Form 10-Q does not include all the information required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Form 10-K. |
Management believes the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, including normal recurring items and restructuring and other items, considered necessary for a fair statement of results for the interim periods presented. | |
Recent Accounting Standards | Revenue from Contracts with Customers |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers." While the standard supersedes existing revenue recognition guidance, it closely aligns with current GAAP. Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. | |
On April 1, 2015, the FASB proposed deferring the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of December 15, 2016. We are currently evaluating the impact, if any, the adoption of this standard will have on our Consolidated Financial Statements. | |
Presentation of Debt Issuance Costs | |
In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. We are currently evaluating the impact the adoption of this standard will have on our Consolidated Financial Statements. |
Segments_Tables
Segments (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||
Schedule of Segment Reporting Information, by Segment | Segment Reporting | ||||||||||||||
Segment results are prepared based on our internal accounting policies described below, with reconciliations to consolidated amounts in accordance with GAAP. | |||||||||||||||
(in millions) | Airline | Refinery | Intersegment Sales/Other | Consolidated | |||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||
Operating revenue: | $ | 9,314 | $ | 1,140 | $ | 9,388 | |||||||||
Sales to airline segment | $ | (233 | ) | (1) | |||||||||||
Exchanged products | (782 | ) | (2) | ||||||||||||
Sales of refined products to third parties | (51 | ) | (3) | ||||||||||||
Operating income(4) | 1,312 | 86 | — | 1,398 | |||||||||||
Interest expense, net | 131 | — | — | 131 | |||||||||||
Depreciation and amortization | 463 | 7 | — | 470 | |||||||||||
Total assets, end of period | 52,696 | 1,056 | — | 53,752 | |||||||||||
Capital expenditures | 579 | 7 | — | 586 | |||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||
Operating revenue: | $ | 8,916 | $ | 1,463 | $ | 8,916 | |||||||||
Sales to airline segment | $ | (249 | ) | (1) | |||||||||||
Exchanged products | (1,003 | ) | (2) | ||||||||||||
Sales of refined products to third parties | (211 | ) | (3) | ||||||||||||
Operating income (loss)(4) | 661 | (41 | ) | — | 620 | ||||||||||
Interest expense, net | 186 | — | — | 186 | |||||||||||
Depreciation and amortization | 437 | 5 | — | 442 | |||||||||||
Total assets, end of period | 51,016 | 1,151 | — | 52,167 | |||||||||||
Capital expenditures | 592 | 22 | — | 614 | |||||||||||
(1) | Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location, which is New York Harbor, for jet fuel from the refinery. | ||||||||||||||
(2) | Represents value of products delivered under exchange agreements with third parties, as discussed above, determined on a market price basis. | ||||||||||||||
(3) | Represents sales of refined products to third parties. These sales were at or near cost; accordingly, the margin on these sales is de minimis. | ||||||||||||||
(4) | Includes the impact of pricing arrangements between the airline segment and refinery segment with respect to the refinery's inventory price risk. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Fair Value Disclosures [Abstract] | ||||||||||
Assets (Liabilities) Measured at Fair Value on a Recurring Basis | Assets (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||
(in millions) | March 31, | Level 1 | Level 2 | |||||||
2015 | ||||||||||
Cash equivalents | $ | 1,618 | $ | 1,618 | $ | — | ||||
Short-term investments | ||||||||||
U.S. government and agency securities | 135 | 63 | 72 | |||||||
Asset- and mortgage-backed securities | 395 | — | 395 | |||||||
Corporate obligations | 894 | — | 894 | |||||||
Other fixed income securities | 23 | — | 23 | |||||||
Restricted cash equivalents and investments | 45 | 45 | — | |||||||
Long-term investments | 99 | 73 | 26 | |||||||
Hedge derivatives, net | ||||||||||
Fuel hedge contracts | (1,428 | ) | (68 | ) | (1,360 | ) | ||||
Interest rate contract | (1 | ) | — | (1 | ) | |||||
Foreign currency exchange contracts | 96 | — | 96 | |||||||
(in millions) | December 31, | Level 1 | Level 2 | |||||||
2014 | ||||||||||
Cash equivalents | $ | 1,612 | $ | 1,612 | $ | — | ||||
Short-term investments | ||||||||||
U.S. government and agency securities | 59 | — | 59 | |||||||
Asset- and mortgage-backed securities | 392 | — | 392 | |||||||
Corporate obligations | 749 | — | 749 | |||||||
Other fixed income securities | 17 | — | 17 | |||||||
Restricted cash equivalents and investments | 37 | 37 | — | |||||||
Long-term investments | 118 | 90 | 28 | |||||||
Hedge derivatives, net | ||||||||||
Fuel hedge contracts | (1,848 | ) | (167 | ) | (1,681 | ) | ||||
Interest rate contract | (7 | ) | — | (7 | ) | |||||
Foreign currency exchange contracts | 73 | — | 73 | |||||||
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Short-term Investments [Abstract] | ||||||
Maturities for short-term investments | The estimated fair values of short-term investments, which approximate cost at March 31, 2015, are shown below by contractual maturity. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to retire our investment without prepayment penalties. | |||||
(in millions) | Available-For-Sale | |||||
31-Mar-15 | ||||||
Due in one year or less | $ | 299 | ||||
Due after one year through three years | 902 | |||||
Due after three years through five years | 162 | |||||
Due after five years | 84 | |||||
Total | $ | 1,447 | ||||
Derivatives_Tables
Derivatives (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Hedge Position | Hedge Position as of March 31, 2015 | |||||||||||||||||||
(in millions) | Volume | Final Maturity Date | Hedge Derivatives Asset | Other Noncurrent Assets | Hedge Derivatives Liability | Other Noncurrent Liabilities | Hedge Derivatives, net | |||||||||||||
Designated as hedges | ||||||||||||||||||||
Interest rate contract (fair value hedge) | 400 | U.S. dollars | Aug-22 | 5 | — | — | (6 | ) | (1 | ) | ||||||||||
Foreign currency exchange contracts | 63,914 | Japanese yen | Jan-18 | 48 | 48 | — | — | 96 | ||||||||||||
506 | Canadian dollars | |||||||||||||||||||
Not designated as hedges | ||||||||||||||||||||
Fuel hedge contracts | 1,618 | gallons - crude oil, diesel and jet fuel | Dec-16 | 1,522 | 35 | (2,512 | ) | (473 | ) | (1,428 | ) | |||||||||
Total derivative contracts | $ | 1,575 | $ | 83 | $ | (2,512 | ) | $ | (479 | ) | $ | (1,333 | ) | |||||||
Hedge Position as of December 31, 2014 | ||||||||||||||||||||
(in millions) | Volume | Final Maturity Date | Hedge Derivatives Asset | Other Noncurrent Assets | Hedge Derivatives Liability | Other Noncurrent Liabilities | Hedge Derivatives, net | |||||||||||||
Designated as hedges | ||||||||||||||||||||
Interest rate contract (fair value hedge) | 416 | U.S. dollars | Aug-22 | 5 | — | — | (12 | ) | (7 | ) | ||||||||||
Foreign currency exchange contracts | 77,576 | Japanese yen | Oct-17 | 25 | 49 | (1 | ) | — | 73 | |||||||||||
511 | Canadian dollars | |||||||||||||||||||
Not designated as hedges | ||||||||||||||||||||
Fuel hedge contracts | 3,286 | gallons - crude oil, diesel and jet fuel | Dec-16 | 1,048 | 3 | (2,771 | ) | (128 | ) | (1,848 | ) | |||||||||
Total derivative contracts | $ | 1,078 | $ | 52 | $ | (2,772 | ) | $ | (140 | ) | $ | (1,782 | ) | |||||||
Offsetting Assets and Liabilities | ||||||||||||||||||||
We have master netting arrangements with our counterparties giving us the right of setoff. We have elected not to offset the fair value positions recorded on our Consolidated Balance Sheets. The following table shows the net fair value positions had we elected to offset. | ||||||||||||||||||||
(in millions) | Hedge Derivatives Asset | Other Noncurrent Assets | Hedge Derivatives Liability | Other Noncurrent Liabilities | Hedge Derivatives, net | |||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Net derivative contracts | $ | 148 | $ | 48 | $ | (1,074 | ) | $ | (455 | ) | $ | (1,333 | ) | |||||||
December 31, 2014 | ||||||||||||||||||||
Net derivative contracts | $ | 29 | $ | 49 | $ | (1,723 | ) | $ | (137 | ) | $ | (1,782 | ) | |||||||
Schedule of Designated Hedge Gains (Losses) | Designated Hedge Gains (Losses) | |||||||||||||||||||
Gains (losses) related to our designated hedge contracts are as follows: | ||||||||||||||||||||
Effective Portion Reclassified from AOCI to Earnings | Effective Portion Recognized in Other Comprehensive Income | |||||||||||||||||||
(in millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
Foreign currency exchange contracts | 51 | 43 | (16 | ) | (51 | ) | ||||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Fair Value of Debt | ||||||
Market risk associated with our fixed- and variable-rate long-term debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. In the table below, the aggregate fair value of debt is based primarily on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral and is classified primarily as Level 2 within the fair value hierarchy. | |||||||
(in millions) | March 31, | December 31, | |||||
2015 | 2014 | ||||||
Total debt at par value | $ | 9,261 | $ | 9,469 | |||
Unamortized discount, net | (78 | ) | (90 | ) | |||
Net carrying amount | $ | 9,183 | $ | 9,379 | |||
Fair value | $ | 9,600 | $ | 9,800 | |||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||
Schedule of Net Benefit Costs | The following table shows the components of net periodic cost: | ||||||||||||
Pension Benefits | Other Postretirement and | ||||||||||||
Postemployment Benefits | |||||||||||||
(in millions) | 2015 | 2014 | 2015 | 2014 | |||||||||
Three Months Ended March 31, | |||||||||||||
Service cost | $ | — | $ | — | $ | 16 | $ | 13 | |||||
Interest cost | 221 | 232 | 35 | 39 | |||||||||
Expected return on plan assets | (220 | ) | (207 | ) | (20 | ) | (21 | ) | |||||
Amortization of prior service credit | — | — | (7 | ) | (7 | ) | |||||||
Recognized net actuarial loss | 58 | 34 | 6 | 1 | |||||||||
Net periodic cost | $ | 59 | $ | 59 | $ | 30 | $ | 25 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Future Aircraft Purchase Commitments | Aircraft Purchase and Lease Commitments | |||
At March 31, 2015, future aircraft purchase commitments totaled approximately $13.6 billion and included 63 B-737-900ER, 45 A321-200, 25 A330-900neo, 25 A350-900, 18 B-787-8, 10 A330-300, 5 B-757-200 and 3 B-717-200 aircraft. We have obtained long-term financing commitments for a substantial portion of the purchase price of these aircraft, except for the 18 B-787-8 aircraft. Our purchase commitment for the 18 B-787-8 aircraft provides for certain aircraft substitution rights. | ||||
(in millions) | Total | |||
Nine months ending December 31, 2015 | $ | 1,140 | ||
2016 | 1,970 | |||
2017 | 2,390 | |||
2018 | 2,230 | |||
2019 | 1,060 | |||
Thereafter | 4,820 | |||
Total | $ | 13,610 | ||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables show the components of accumulated other comprehensive loss: | ||||||||||||
(in millions) | Pension and Other Benefits Liabilities(2) | Derivative Contracts | Investments | Total | |||||||||
Balance at January 1, 2015 | $ | (7,517 | ) | $ | 222 | $ | (16 | ) | $ | (7,311 | ) | ||
Changes in value (net of tax effect of $13) | — | 22 | (12 | ) | 10 | ||||||||
Reclassifications into earnings (net of tax effect of $5)(1) | 39 | (32 | ) | — | 7 | ||||||||
Balance at March 31, 2015 | $ | (7,478 | ) | $ | 212 | $ | (28 | ) | $ | (7,294 | ) | ||
(in millions) | Pension and Other Benefits Liabilities(2) | Derivative Contracts | Investments | Total | |||||||||
Balance at January 1, 2014 | $ | (5,323 | ) | $ | 219 | $ | (26 | ) | $ | (5,130 | ) | ||
Changes in value (net of tax effect of $2) | — | (3 | ) | 10 | 7 | ||||||||
Reclassifications into earnings (net of tax effect of $9)(1) | 12 | (28 | ) | — | (16 | ) | |||||||
Balance at March 31, 2014 | $ | (5,311 | ) | $ | 188 | $ | (16 | ) | $ | (5,139 | ) | ||
(1) | Amounts reclassified from AOCI for pension and other benefits liabilities are recorded in salaries and related costs in the Condensed Consolidated Statements of Operations and Comprehensive Income. Amounts reclassified from AOCI for derivative contracts designated as foreign currency cash flow hedges and interest rate cash flow hedges are recorded in passenger revenue and interest expense, net, respectively, in the Condensed Consolidated Statements of Operations and Comprehensive Income. Amounts reclassified from AOCI for investments are recorded in interest expense, net in the Condensed Consolidated Statements of Operations and Comprehensive Income. | ||||||||||||
(2) | Includes $1.9 billion of deferred income tax expense primarily related to pension obligations that will not be recognized in net income until the pension obligations are fully extinguished. |
Restructuring_and_Other_Items_
Restructuring and Other Items (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Restructuring and Related Activities [Abstract] | |||||||
Schedule of Restructuring Reserve by Type of Cost | The following table shows the balances and activity for restructuring charges: | ||||||
(in millions) | Severance and Related Costs | Lease Restructuring | |||||
Liability as of January 1, 2015 | $ | 42 | $ | 462 | |||
Additional costs and expenses | — | 10 | |||||
Payments | (24 | ) | (20 | ) | |||
Liability as of March 31, 2015 | $ | 18 | $ | 452 | |||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table shows the computation of basic and diluted earnings per share: | ||||||
Three Months Ended March 31, | |||||||
(in millions, except per share data) | 2015 | 2014 | |||||
Net income | $ | 746 | $ | 213 | |||
Basic weighted average shares outstanding | 818 | 844 | |||||
Dilutive effect of share-based awards | 8 | 9 | |||||
Diluted weighted average shares outstanding | 826 | 853 | |||||
Basic earnings per share | $ | 0.91 | $ | 0.25 | |||
Diluted earnings per share | $ | 0.9 | $ | 0.25 | |||
Segments_Schedule_of_Segment_R
Segments - Schedule of Segment Reporting (Details) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Operating revenue | $9,388 | $8,916 | |||
Operating income (loss) | 1,398 | 620 | |||
Interest expense, net | 131 | 186 | |||
Depreciation and amortization | 470 | 442 | |||
Total assets, end of period | 53,752 | 52,167 | 54,121 | ||
Capital expenditures | 586 | 614 | |||
Airline | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | 9,314 | 8,916 | |||
Operating income (loss) | 1,312 | [1] | 661 | [1] | |
Interest expense, net | 131 | 186 | |||
Depreciation and amortization | 463 | 437 | |||
Total assets, end of period | 52,696 | 51,016 | |||
Capital expenditures | 579 | 592 | |||
Refinery | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | 1,140 | 1,463 | |||
Operating income (loss) | 86 | [1] | -41 | [1] | |
Interest expense, net | 0 | 0 | |||
Depreciation and amortization | 7 | 5 | |||
Total assets, end of period | 1,056 | 1,151 | |||
Capital expenditures | 7 | 22 | |||
Sales to airline segment | Intersegment Sales/Other | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | -233 | [2] | -249 | [2] | |
Exchanged products | Intersegment Sales/Other | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | -782 | [3] | -1,003 | [3] | |
Sales of refined products to third parties | Intersegment Sales/Other | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | ($51) | [4] | ($211) | [4] | |
[1] | Includes the impact of pricing arrangements between the airline segment and refinery segment with respect to the refinery's inventory price risk. | ||||
[2] | Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location, which is New York Harbor, for jet fuel from the refinery. | ||||
[3] | Represents value of products delivered under exchange agreements with third parties, as discussed above, determined on a market price basis. | ||||
[4] | Represents sales of refined products to third parties. These sales were at or near cost; accordingly, the margin on these sales is de minimis. |
Segments_Narrative_Details
Segments (Narrative) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Operating revenue | $9,388 | $8,916 | ||
Exchanged products | Intersegment Sales/Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | ($782) | [1] | ($1,003) | [1] |
[1] | Represents value of products delivered under exchange agreements with third parties, as discussed above, determined on a market price basis. |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Fair Value Measurements on a Recurring Basis (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $1,618 | $1,612 |
Restricted cash equivalents and investments | 45 | 37 |
Fuel hedge contracts | -1,428 | -1,848 |
Interest rate contract | -1 | -7 |
Foreign currency exchange contracts | 96 | 73 |
Short-Term Investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 135 | 59 |
Short-Term Investments | Asset- and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 395 | 392 |
Short-Term Investments | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 894 | 749 |
Short-Term Investments | Other fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 23 | 17 |
Long-Term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 99 | 118 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,618 | 1,612 |
Restricted cash equivalents and investments | 45 | 37 |
Fuel hedge contracts | -68 | -167 |
Interest rate contract | 0 | 0 |
Foreign currency exchange contracts | 0 | 0 |
Level 1 | Short-Term Investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 63 | 0 |
Level 1 | Short-Term Investments | Asset- and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Short-Term Investments | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Short-Term Investments | Other fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Long-Term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 73 | 90 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted cash equivalents and investments | 0 | 0 |
Fuel hedge contracts | -1,360 | -1,681 |
Interest rate contract | -1 | -7 |
Foreign currency exchange contracts | 96 | 73 |
Level 2 | Short-Term Investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 72 | 59 |
Level 2 | Short-Term Investments | Asset- and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 395 | 392 |
Level 2 | Short-Term Investments | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 894 | 749 |
Level 2 | Short-Term Investments | Other fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 23 | 17 |
Level 2 | Long-Term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $26 | $28 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (Commodity Option [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Assumptions, Expected Volatility Rate | 26.00% |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Assumptions, Expected Volatility Rate | 73.00% |
Investments_Schedule_of_Short_
Investments - Schedule of Short Term Investments (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Short-term Investments [Abstract] | |
Available-for-sale securities, due in one year or less, fair value | $299 |
Available-for-sale securities, due after one year through three years, fair value | 902 |
Available-for-sale securities, due after three years through five years, fair value | 162 |
Available-for-sale securities, due after five years, fair value | 84 |
Available-for-sale securities, total | $1,447 |
Derivatives_Hedge_Position_Det
Derivatives - Hedge Position (Details) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Hedge Derivatives Asset | Hedge Derivatives Asset | Other Noncurrent Assets | Other Noncurrent Assets | Hedge Derivatives Liability | Hedge Derivatives Liability | Other Noncurrent Liabilities | Other Noncurrent Liabilities | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Fuel hedge contracts | Fuel hedge contracts | Fair value hedging | Fair value hedging | Cash flow hedging | Cash flow hedging | Cash flow hedging | Cash flow hedging |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Hedge Derivatives Asset | Hedge Derivatives Asset | Other Noncurrent Assets | Other Noncurrent Assets | Hedge Derivatives Liability | Hedge Derivatives Liability | Other Noncurrent Liabilities | Other Noncurrent Liabilities | USD ($) | USD ($) | Hedge Derivatives Asset | Hedge Derivatives Asset | Other Noncurrent Assets | Other Noncurrent Assets | Hedge Derivatives Liability | Hedge Derivatives Liability | Other Noncurrent Liabilities | Other Noncurrent Liabilities | Not designated as hedging instrument | Not designated as hedging instrument | Interest rate contract (fair value hedge) | Interest rate contract (fair value hedge) | Foreign currency exchange contracts | Foreign currency exchange contracts | Foreign currency exchange contracts | Foreign currency exchange contracts | |||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | gal | gal | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | |||||||||||||||
USD ($) | USD ($) | CAD | JPY (¥) | CAD | JPY (¥) | |||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||
Derivative, notional amount | $400 | $416 | 506 | ¥ 63,914 | 511 | ¥ 77,576 | ||||||||||||||||||||||||||||||||
Derivative, nonmonetary notional amount | 1,618,000,000 | 3,286,000,000 | ||||||||||||||||||||||||||||||||||||
Derivative, final maturity date | 31-Dec-16 | 31-Dec-16 | 31-Aug-22 | 31-Aug-22 | 5-Jan-18 | 5-Jan-18 | 5-Oct-17 | 5-Oct-17 | ||||||||||||||||||||||||||||||
Interest rate contract (fair value hedge), assets | 5 | 5 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Interest rate contract (fair value hedge), liabilities | 0 | 0 | -6 | -12 | ||||||||||||||||||||||||||||||||||
Interest rate contract (fair value hedge), hedge derivatives, net | -1 | -7 | ||||||||||||||||||||||||||||||||||||
Foreign currency exchange contracts, assets | 48 | 25 | 48 | 49 | ||||||||||||||||||||||||||||||||||
Foreign currency exchange contracts, liabilities | 0 | -1 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Foreign currency exchange contracts, hedge derivatives, net | 96 | 73 | 96 | 73 | ||||||||||||||||||||||||||||||||||
Fuel hedge contracts, assets | 300 | 1,522 | 1,048 | 35 | 3 | |||||||||||||||||||||||||||||||||
Fuel hedge contracts, liabilities | -300 | -2,512 | -2,771 | -473 | -128 | |||||||||||||||||||||||||||||||||
Fuel hedge contracts, derivatives, net | -1,428 | -1,848 | -1,428 | -1,848 | ||||||||||||||||||||||||||||||||||
Total derivative contracts, assets | 1,575 | 1,078 | 83 | 52 | ||||||||||||||||||||||||||||||||||
Total derivative contracts, liabilities | -2,512 | -2,772 | -479 | -140 | ||||||||||||||||||||||||||||||||||
Net derivative contracts, hedge derivatives, net | -1,333 | -1,782 | ||||||||||||||||||||||||||||||||||||
Net derivative contracts, assets | 148 | 29 | 48 | 49 | ||||||||||||||||||||||||||||||||||
Net derivative contracts, liabilities | ($1,074) | ($1,723) | ($455) | ($137) |
Derivatives_Designated_Hedge_G
Derivatives - Designated Hedge Gain (Loss) (Details) (Foreign currency exchange contracts, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Effective Portion Reclassified from AOCI to Earnings | $51 | $43 |
Derivative Instruments, Effective Portion Recognized in Other Comprehensive Income | ($16) | ($51) |
Derivatives_Narrative_Details
Derivatives (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Derivative [Line Items] | |||
Payments for early settlement of contracts | $302 | ||
Fuel hedge contracts, assets | 300 | ||
Fuel hedge contracts, liabilities | -300 | ||
Gains on cash flow hedge contracts in AOCI to be reclassified into earnings within 12 months | 158 | ||
Margin posted due to fair value position of hedge contracts | 383 | 925 | |
Fuel hedge contracts | |||
Derivative [Line Items] | |||
Derivative instruments, gain (loss) recognized in income, net | ($411) | $78 |
LongTerm_Debt_Schedule_of_Debt
Long-Term Debt - Schedule of Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Total debt at par value | $9,261 | $9,469 |
Unamortized discount, net | -78 | -90 |
Net carrying amount | 9,183 | 9,379 |
Fair Value | $9,600 | $9,800 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Instrument, Covenant Compliance | We were in compliance with the covenants in our financing agreements at March 31, 2015 |
Employee_Benefit_Plans_Schedul
Employee Benefit Plans - Schedule of Benefit Plan Components (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $0 | $0 |
Interest cost | 221 | 232 |
Expected return on plan assets | -220 | -207 |
Amortization of prior service credit | 0 | 0 |
Recognized net actuarial loss | 58 | 34 |
Net periodic cost | 59 | 59 |
Other postretirement and postemployment benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 16 | 13 |
Interest cost | 35 | 39 |
Expected return on plan assets | -20 | -21 |
Amortization of prior service credit | -7 | -7 |
Recognized net actuarial loss | 6 | 1 |
Net periodic cost | $30 | $25 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Schedule of Purchase Obligations (Details) (Future Aircraft Purchase Commitments, USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Future Aircraft Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Nine months ending December 31, 2015 | $1,140 |
2016 | 1,970 |
2017 | 2,390 |
2018 | 2,230 |
2019 | 1,060 |
Thereafter | 4,820 |
Aircraft purchase commitments, total | $13,610 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Aircraft Purchase and Lease Commitments (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Future Aircraft Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Aircraft purchase commitments, total | $13,610 |
B-737-900ER | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | 63 |
A321-200 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | 45 |
A330-900 NEO | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | 25 |
A350-900 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | 25 |
B-787-8 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | 18 |
A330-300 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | 10 |
B-757-200 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | 5 |
B-717-200 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | 3 |
Other Aircraft Commitments | 27 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Devaluation and Other Contingencies (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | employee |
Intercompany Foreign Currency Balance [Line Items] | |
Entity number of employees | 81,000 |
Percentage of employees represented by unions under collective bargaining agreements | 18.00% |
Venezuelan bolC-var fuerte | |
Intercompany Foreign Currency Balance [Line Items] | |
Asset, reporting currency denominated, value | 93 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Schedule of AOCI Components (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss, beginning balance | ($7,311,000,000) | ($5,130,000,000) | ||
Changes in value (net of tax effect) | 10,000,000 | 7,000,000 | ||
Reclassifications into earnings (net of tax effect) | 7,000,000 | [1] | -16,000,000 | [1] |
Accumulated other comprehensive loss, ending balance | -7,294,000,000 | -5,139,000,000 | ||
Changes in value, tax effect | -13,000,000 | 2,000,000 | ||
Reclassification into earnings, tax effect | 5,000,000 | -9,000,000 | ||
Deferred income tax expense | 1,900,000,000 | |||
Pension and Other Benefits Liabilities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss, beginning balance | -7,517,000,000 | [2] | -5,323,000,000 | [2] |
Changes in value (net of tax effect) | 0 | 0 | ||
Reclassifications into earnings (net of tax effect) | 39,000,000 | [1] | 12,000,000 | [1] |
Accumulated other comprehensive loss, ending balance | -7,478,000,000 | [2] | -5,311,000,000 | [2] |
Derivative Contracts | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss, beginning balance | 222,000,000 | 219,000,000 | ||
Changes in value (net of tax effect) | 22,000,000 | -3,000,000 | ||
Reclassifications into earnings (net of tax effect) | -32,000,000 | [1] | -28,000,000 | [1] |
Accumulated other comprehensive loss, ending balance | 212,000,000 | 188,000,000 | ||
Investments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss, beginning balance | -16,000,000 | -26,000,000 | ||
Changes in value (net of tax effect) | -12,000,000 | 10,000,000 | ||
Reclassifications into earnings (net of tax effect) | 0 | [1] | 0 | [1] |
Accumulated other comprehensive loss, ending balance | ($28,000,000) | ($16,000,000) | ||
[1] | Amounts reclassified from AOCI for pension and other benefits liabilities are recorded in salaries and related costs in the Condensed Consolidated Statements of Operations and Comprehensive Income. Amounts reclassified from AOCI for derivative contracts designated as foreign currency cash flow hedges and interest rate cash flow hedges are recorded in passenger revenue and interest expense, net, respectively, in the Condensed Consolidated Statements of Operations and Comprehensive Income. Amounts reclassified from AOCI for investments are recorded in interest expense, net in the Condensed Consolidated Statements of Operations and Comprehensive Income. | |||
[2] | Includes $1.9 billion of deferred income tax expense primarily related to pension obligations that will not be recognized in net income until the pension obligations are fully extinguished. |
Restructuring_and_Other_Items_1
Restructuring and Other Items - Schedule of Restructuring Charges (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Severance and Related Costs | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability | $42 |
Additional costs and expenses | 0 |
Payments | -24 |
Restructuring liability | 18 |
Lease Restructuring | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability | 462 |
Additional costs and expenses | 10 |
Payments | -20 |
Restructuring liability | $452 |
Restructuring_and_Other_Items_2
Restructuring and Other Items (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring and Related Activities [Abstract] | ||
Restructuring and other items | $10 | $49 |
Earnings_Per_share_Schedule_of
Earnings Per share - Schedule of Computation for Earnings Per Share Types (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net Income | $746 | $213 |
Basic weighted average shares outstanding | 818 | 844 |
Dilutive effect of share-based awards | 8 | 9 |
Diluted weighted average shares outstanding | 826 | 853 |
Basic Earnings Per Share | $0.91 | $0.25 |
Diluted Earnings Per Share | $0.90 | $0.25 |