Document and Entity Information
Document and Entity Information - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment flag | false | |
Document period end date | Sep. 30, 2015 | |
Document fiscal year focus | 2,015 | |
Document fiscal period focus | Q3 | |
Entity registrant name | DELTA AIR LINES INC /DE/ | |
Entity central index key | 27,904 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Large Accelerated Filer | |
Common stock, par value per share (in usd per share) | $ 0.0001 | $ 0.0001 |
Entity common stock, shares outstanding | 786,473,621 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 2,369 | $ 2,088 |
Short-term investments | 1,442 | 1,217 |
Accounts receivable, net of an allowance for uncollectible accounts of $9 and $11 at September 30, 2015 and December 31, 2014, respectively | 1,974 | 2,297 |
Hedge margin receivable | 381 | 925 |
Fuel inventory | 381 | 534 |
Expendable parts and supplies inventories, net of an allowance for obsolescence of $124 and $127 at September 30, 2015 and December 31, 2014, respectively | 314 | 318 |
Hedge derivatives asset | 1,586 | 1,078 |
Deferred income taxes, net | 2,710 | 3,275 |
Prepaid expenses and other | 816 | 733 |
Total current assets | 11,973 | 12,465 |
Property and Equipment, Net: | ||
Property and equipment, net of accumulated depreciation and amortization of $10,563 and $9,340 at September 30, 2015 and December 31, 2014, respectively | 22,608 | 21,929 |
Other Assets: | ||
Goodwill | 9,794 | 9,794 |
Identifiable intangibles, net of accumulated amortization of $806 and $793 at September 30, 2015 and December 31, 2014, respectively | 4,589 | 4,603 |
Deferred income taxes, net | 2,834 | 4,320 |
Other noncurrent assets | 1,848 | 1,010 |
Total other assets | 19,065 | 19,727 |
Total assets | 53,646 | 54,121 |
Current Liabilities: | ||
Current maturities of long-term debt and capital leases | 1,705 | 1,216 |
Air traffic liability | 5,231 | 4,296 |
Accounts payable | 2,688 | 2,622 |
Accrued salaries and related benefits | 2,790 | 2,266 |
Hedge derivatives liability | 2,194 | 2,772 |
Frequent flyer deferred revenue | 1,621 | 1,580 |
Other accrued liabilities | 1,379 | 2,127 |
Total current liabilities | 17,608 | 16,879 |
Noncurrent Liabilities: | ||
Long-term debt and capital leases | 7,096 | 8,561 |
Pension, postretirement and related benefits | 13,867 | 15,138 |
Frequent flyer deferred revenue | 2,265 | 2,602 |
Other noncurrent liabilities | 2,465 | 2,128 |
Total noncurrent liabilities | $ 25,693 | $ 28,429 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Common stock at $0.0001 par value; 1,500,000,000 shares authorized, 807,525,032 and 845,048,310 shares issued at September 30, 2015 and December 31, 2014, respectively | $ 0 | $ 0 |
Additional paid-in capital | 11,285 | 12,981 |
Retained earnings | 6,748 | 3,456 |
Accumulated other comprehensive loss | (7,316) | (7,311) |
Treasury stock, at cost, 21,051,411 and 19,790,077 shares at September 30, 2015 and December 31, 2014, respectively | (372) | (313) |
Total stockholders' equity | 10,345 | 8,813 |
Total liabilities and stockholders' equity | $ 53,646 | $ 54,121 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Allowance for uncollectible accounts | $ 9 | $ 11 |
Allowance for obsolescence | 124 | 127 |
Property and equipment additions: | ||
Accumulated depreciation and amortization | 10,563 | 9,340 |
Other Assets: | ||
Accumulated amortization | $ 806 | $ 793 |
Stockholders' Equity: | ||
Common stock, par value per share (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 807,525,032 | 845,048,310 |
Treasury stock, at cost, shares | 21,051,411 | 19,790,077 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Revenue: | ||||
Mainline | $ 8,059 | $ 8,144 | $ 22,195 | $ 21,950 |
Regional carriers | 1,536 | 1,632 | 4,462 | 4,769 |
Total passenger revenue | 9,595 | 9,776 | 26,657 | 26,719 |
Cargo | 196 | 244 | 620 | 691 |
Other | 1,316 | 1,158 | 3,925 | 3,305 |
Total operating revenue | 11,107 | 11,178 | 31,202 | 30,715 |
Operating Expense: | ||||
Salaries and related costs | 2,276 | 2,069 | 6,563 | 6,084 |
Aircraft fuel and related taxes | 1,819 | 2,952 | 5,111 | 7,612 |
Regional carrier expense | 1,073 | 1,353 | 3,223 | 4,033 |
Aircraft maintenance materials and outside repairs | 479 | 440 | 1,430 | 1,354 |
Depreciation and amortization | 466 | 440 | 1,384 | 1,333 |
Contracted services | 477 | 459 | 1,375 | 1,326 |
Passenger commissions and other selling expenses | 463 | 476 | 1,270 | 1,289 |
Landing fees and other rents | 403 | 393 | 1,164 | 1,089 |
Profit sharing | 563 | 384 | 1,110 | 823 |
Passenger service | 247 | 227 | 664 | 615 |
Aircraft rent | 63 | 65 | 183 | 172 |
Restructuring and other items | 0 | 570 | 35 | 649 |
Other | 565 | 515 | 1,605 | 1,302 |
Total operating expense | 8,894 | 10,343 | 25,117 | 27,681 |
Operating Income | 2,213 | 835 | 6,085 | 3,034 |
Other Expense: | ||||
Interest expense, net | (121) | (154) | (379) | (513) |
Miscellaneous, net | (20) | (102) | (82) | (309) |
Total other expense, net | (141) | (256) | (461) | (822) |
Income Before Income Taxes | 2,072 | 579 | 5,624 | 2,212 |
Income Tax Provision | (757) | (222) | (2,078) | (841) |
Net Income | $ 1,315 | $ 357 | $ 3,546 | $ 1,371 |
Basic earnings per share (in USD per share) | $ 1.67 | $ 0.43 | $ 4.42 | $ 1.63 |
Diluted earnings per share (in USD per share) | 1.65 | 0.42 | 4.37 | 1.61 |
Cash dividends declared per share (in USD per share) | $ 0.135 | $ 0.09 | $ 0.315 | $ 0.21 |
Comprehensive Income | $ 1,287 | $ 394 | $ 3,541 | $ 1,401 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Net Cash Provided by Operating Activities | $ 6,448 | $ 4,365 |
Property and equipment additions: | ||
Flight equipment, including advance payments | (1,583) | (1,179) |
Ground property and equipment, including technology | (484) | (410) |
Purchase of equity investments | (500) | 0 |
Purchase of short-term investments | (740) | (1,642) |
Redemption of short-term investments | 510 | 748 |
Other, net | 21 | 58 |
Net cash used in investing activities | (2,776) | (2,425) |
Cash Flows From Financing Activities: | ||
Payments on long-term debt and capital lease obligations | (2,151) | (2,485) |
Repurchase of common stock | (1,775) | (600) |
Cash dividends | (254) | (176) |
Fuel card obligation | (343) | 1 |
Proceeds from long-term obligations | 1,038 | 980 |
Other, net | 94 | 6 |
Net cash used in financing activities | (3,391) | (2,274) |
Net Increase (Decrease) in Cash and Cash Equivalents | 281 | (334) |
Cash and cash equivalents at beginning of period | 2,088 | 2,844 |
Cash and cash equivalents at end of period | 2,369 | 2,510 |
Non-Cash Transactions: | ||
Flight equipment acquired under capital leases | $ 104 | $ 28 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 Annual Report on Form 10-K for the year ended December 31, 2014 . 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 and other factors, operating results for the three and nine months ended September 30, 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." 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. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," that deferred the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date. The FASB permitted early adoption of the standard, but not before the original effective date of December 15, 2016. We are currently evaluating how the adoption of this standard will impact our Consolidated Financial Statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Assets (Liabilities) Measured at Fair Value on a Recurring Basis (in millions) September 30, Level 1 Level 2 Cash equivalents $ 1,824 $ 1,824 $ — Short-term investments U.S. government and agency securities 124 71 53 Asset- and mortgage-backed securities 392 — 392 Corporate obligations 888 — 888 Other fixed income securities 38 — 38 Restricted cash equivalents and investments 46 46 — Long-term investments 97 72 25 Hedge derivatives, net Fuel hedge contracts (835 ) 122 (957 ) Interest rate contract 1 — 1 Foreign currency exchange contracts 92 — 92 (in millions) December 31, Level 1 Level 2 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 generally consist of money market funds and time deposits, which primarily support letters of credit that relate to certain projected self-insurance obligations and airport commitments. 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, the parent company of Aeroméxico, and GOL Linhas Aéreas Inteligentes, 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. A portion of our derivative contracts are negotiated over-the-counter 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). Such contracts are classified as Level 2 within the fair value hierarchy. The remainder of our hedge contracts are comprised of futures contracts, which are traded on a public exchange. These contracts are classified within Level 1 of the fair value hierarchy. • 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 24% to 52% 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 provided by counterparties who regularly trade in 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 | 9 Months Ended |
Sep. 30, 2015 | |
Short-term Investments [Abstract] | |
Investments | INVESTMENTS Short-Term Investments The estimated fair values of short-term investments, which approximate cost at September 30, 2015 , are shown below by contractual maturity. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to retire our investments without prepayment penalties. Investments with maturities beyond one year when purchased may be classified as short-term investments if they are expected to be available to support our short-term liquidity needs. (in millions) Available-For-Sale Maturities as of September 30, 2015 Due in one year or less $ 379 Due after one year through three years 836 Due after three years through five years 122 Due after five years 105 Total $ 1,442 Long-Term Investments We have developed strategic relationships with our airline partners through equity investments and other forms of cooperation and support. These strategic relationships are important to us as they improve the coordination with our airline partners and enable our customers to seamlessly reach more destinations. • Aeroméxico . In order to expand our economic interest in Aeroméxico, during the June 2015 quarter, we entered into a derivative contract for 58.9 million shares of Aeroméxico's parent company. Through the interest in the derivative, we will participate in the increases and decreases in value of the shares and record those changes in other expense on the Condensed Consolidated Statements of Operations and Comprehensive Income. At the maturity date of the derivative contract, we may acquire all or a portion of the shares or settle in cash. If the derivative term is not extended, the derivative will mature no later than May 2016. Aeroméxico operates more than 600 flights daily with hubs at the international airports in Mexico City and Monterrey and a route network spanning over 80 cities on four continents, including 45 destinations in Mexico. • GOL. During the September 2015 quarter, we acquired preferred shares of GOL's parent company for $50 million , increasing our ownership to 9.5% of GOL's outstanding capital stock. Additionally, GOL entered into a $300 million five -year term loan facility with third parties, which we have guaranteed. Our entire guaranty is secured by GOL's ownership interest in Smiles, GOL's publicly-traded loyalty program. As GOL remains in compliance with the terms of its loan facility, we have not recorded a liability on our Consolidated Balance Sheets as of September 30, 2015. In conjunction with these transactions, we and GOL agreed to extend our existing commercial agreements. GOL is one of the largest airlines in Brazil, offering nearly 900 flights a day to 62 destinations, both within Brazil and internationally. • China Eastern. During the September 2015 quarter, we acquired shares of China Eastern for $450 million , which provides us with a 3.5% stake in the airline . In conjunction with this transaction, we and China Eastern entered into a new commercial agreement to expand our relationship and better connect the networks of the two airlines. China Eastern is one of the largest airlines in China with a route network covering 217 destinations in 26 countries. As the investment agreement restricts our sale or transfer of these shares for a period of three years, we will account for the investment at cost during this period. Although China Eastern shares are actively traded on a public exchange, it is not practicable to estimate the fair value of the investment due to the restriction on our ability to sell or transfer the shares. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and 2014 , we recorded fuel hedge losses of $250 million and $238 million , respectively. During the nine months ended September 30, 2015 and 2014 , we recorded fuel hedge losses of $563 million and $63 million , respectively. During the March 2015 quarter, we restructured our fuel hedge portfolio by early settling certain hedges and deferring the settlement of a portion of the remaining positions. We paid $302 million in the March 2015 quarter 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, excluding market movements from the date of the transactions, would settle and provide approximately $150 million in cash receipts during both the September and December 2015 quarters and require approximately $300 million in cash payments in 2016. 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. We reported $128 million in cash receipts associated with these deferral transactions as cash flows from financing activities within other, net on our Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2015 . Hedge Position as of September 30, 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) 384 U.S. dollars August 2022 $ 4 $ — $ — $ (3 ) $ 1 Foreign currency exchange contracts 57,545 Japanese yen July 2018 67 26 — (1 ) 92 427 Canadian dollars Not designated as hedges Fuel hedge contracts 921 gallons - crude oil, diesel and jet fuel January 2017 1,515 358 (2,194 ) (514 ) (835 ) Total derivative contracts $ 1,586 $ 384 $ (2,194 ) $ (518 ) $ (742 ) 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 August 2022 $ 5 $ — $ — $ (12 ) $ (7 ) Foreign currency exchange contracts 77,576 Japanese yen October 2017 25 49 (1 ) — 73 511 Canadian dollars Not designated as hedges Fuel hedge contracts 3,286 gallons - crude oil, diesel and jet fuel December 2016 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 September 30, 2015 Net derivative contracts $ 191 $ 29 $ (799 ) $ (163 ) $ (742 ) 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 September 30, Interest rate contract $ — $ (12 ) $ — $ 15 Foreign currency exchange contracts 69 47 (53 ) 38 Total designated $ 69 $ 35 $ (53 ) $ 53 Nine Months Ended September 30, Interest rate contract $ — $ (31 ) $ — $ 38 Foreign currency exchange contracts 161 118 (105 ) (73 ) Total designated $ 161 $ 87 $ (105 ) $ (35 ) As of September 30, 2015 , we have recorded $93 million of gains on cash flow hedge contracts in accumulated other comprehensive income (loss) ("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 $381 million and $925 million as of September 30, 2015 and December 31, 2014 , respectively. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 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. The fair value of debt, shown below, is based primarily on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral. Long-term debt is principally classified as Level 2 within the fair value hierarchy. (in millions) September 30, December 31, Total debt at par value $ 8,474 $ 9,469 Unamortized discount, net (57 ) (90 ) Net carrying amount $ 8,417 $ 9,379 Fair value $ 8,700 $ 9,800 August 2015 Debt Refinancing Transaction In connection with the retirement and termination of the outstanding loans under our existing $2.5 billion Senior Secured Credit Financing Facilities (due April 2016 and April 2017 ), we completed refinancing transactions in August 2015 with new debt consisting of the Senior Secured Credit Facilities, described below, and the 2015-1 pass through certificates ("2015-1 EETC"). Senior Secured Credit Facilities In August 2015 , we entered into the Senior Secured Credit Facilities to borrow up to $2.0 billion . The Senior Secured Credit Facilities consist of a $1.5 billion first-lien revolving credit facility (the “Revolving Credit Facility”) and a $500 million first-lien term loan facility (the “Term Loan Facility”). These transactions are summarized in the table below: (in millions) Final Maturity Date Interest Rate(s) per Annum Proceeds Received Principal Retired Entered into in August 2015 Term Loan Facility August 2022 3.25% variable (1)(2) $ 500 $ — Revolving Credit Facility ($1.5 billion) August 2020 undrawn variable (3) — — Retired/Terminated in August 2015 Term Loan Facility April 2017 3.25% variable (1)(4) — 1,320 Revolving Credit Facility ($1.2 billion) April 2016 undrawn variable (1) — — Total $ 500 $ 1,320 (1) Interest rate equal to LIBOR (subject to a floor) or another index rate, in each case plus a specified margin. (2) Represents the rate as of September 30, 2015. (3) Interest rate equal to LIBOR or another index rate, in each case plus a specified margin. (4) Represents the rate as of August 24, 2015. An amount equal to 1% of the original principal amount of the loans under the Term Loan Facility must be repaid annually in equal quarterly installments. All remaining borrowings under the Term Loan Facility are due on the final maturity date of August 2022. There are no amounts outstanding under the Revolving Credit Facility as of September 30, 2015 . Collateral and Key Financial Covenants. Our obligations under the Senior Secured Credit Facilities are guaranteed by substantially all of our domestic subsidiaries (the “Guarantors”) and secured by liens on certain of our and the Guarantors’ assets, including accounts receivable, aircraft, spare engines, non-Pacific international routes, domestic slots and certain investment property (the “Collateral”). These assets also secure $100 million of certain fuel hedging obligations pari passu (i.e., on equal priority) with the Revolving Credit Facility and the Term Loan Facility. The Senior Secured Credit Facilities include affirmative, negative and financial covenants that may restrict our ability to, among other things, make investments, sell or otherwise dispose of assets if not in compliance with the collateral coverage ratio tests, pay dividends or repurchase stock. These covenants require us to maintain: Minimum Unrestricted Liquidity Unrestricted cash, permitted investments and undrawn revolving credit facilities (including the Revolving Credit Facility) $2.0 billion Minimum Collateral Coverage Ratio (1) 1.60:1 (1) Defined as the ratio of (a) the value of the Collateral that meet specified eligibility standards to (b) the sum of the aggregate outstanding borrowings under the Senior Secured Credit Facilities and certain other obligations. Under the Senior Secured Credit Facilities, if the Minimum Collateral Coverage Ratio is not maintained, we must either provide additional collateral to secure our obligations, or we must reduce the secured obligations under the facilities by an amount necessary to maintain compliance with the collateral coverage ratio. The Senior Secured Credit Facilities contain events of default customary for similar financings, including cross-defaults to other material indebtedness and certain change of control events. Upon the occurrence of an event of default, the outstanding obligations under the Senior Secured Credit Facilities may be accelerated and become due and payable immediately. 2015-1 EETC The details of the 2015-1 EETC, which is secured by 15 aircraft, are shown in the table below: (in millions) Total Principal Fixed Interest Rate Issuance Date Final Maturity Date 2015-1 Class AA Certificates $ 313 3.625% August 2015 July 2027 2015-1 Class A Certificates 69 3.875% August 2015 July 2027 2015-1 Class B Certificates 118 4.250% August 2015 July 2023 Total $ 500 Covenants We were in compliance with the covenants in our financing agreements at September 30, 2015 . |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 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 September 30, 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 ) (6 ) Recognized net actuarial loss 61 33 6 1 Net periodic cost $ 62 $ 58 $ 30 $ 26 Nine Months Ended September 30, Service cost $ — $ — $ 48 $ 39 Interest cost 663 696 105 117 Expected return on plan assets (660 ) (621 ) (60 ) (63 ) Amortization of prior service credit — — (21 ) (20 ) Recognized net actuarial loss 177 100 18 3 Net periodic cost $ 180 $ 175 $ 90 $ 76 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Aircraft Purchase and Lease Commitments At September 30, 2015 , future aircraft purchase commitments totaled approximately $13.0 billion and included 54 B-737-900ER, 45 A321-200, 25 A330-900neo, 25 A350-900, 18 B-787-8, seven A330-300, three B-717-200 and one B-757-200 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, three B-717-200 and one B-757-200 aircraft. Our purchase commitment for the 18 B-787-8 aircraft provides for certain aircraft substitution rights. (in millions) Total Three months ending December 31, 2015 $ 380 2016 1,950 2017 2,370 2018 2,270 2019 1,090 Thereafter 4,910 Total $ 12,970 In addition, we have agreements with Southwest Airlines and The Boeing Company to lease an additional eight B-717-200 aircraft, which will be delivered by the end of 2015. Venezuelan Currency Devaluation As of September 30, 2015 , we had $79 million of unrestricted cash on our Consolidated Balance Sheet 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. Although the outcome of the legal proceedings in which we are currently 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 September 30, 2015 , we had approximately 83,000 full-time equivalent employees. Approximately 18% of these employees were represented by unions. 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 Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 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 $21) — 35 (52 ) (17 ) Reclassifications into earnings (net of tax effect of $7) (1) 114 (102 ) — 12 Balance at September 30, 2015 $ (7,403 ) $ 155 $ (68 ) $ (7,316 ) (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 $20) — 33 4 37 Reclassifications into earnings (net of tax effect of $4) (1) 48 (55 ) — (7 ) Balance at September 30, 2014 $ (5,275 ) $ 197 $ (22 ) $ (5,100 ) (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. (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. |
Segments
Segments | 9 Months Ended |
Sep. 30, 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 for jet fuel. 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 and nine months ended September 30, 2015 was $761 million and $2.4 billion , respectively, compared to $1.4 billion and $3.9 billion during the three and nine months ended September 30, 2014 , 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 September 30, 2015 Operating revenue: $ 10,994 $ 1,258 $ 11,107 Sales to airline segment $ (267 ) (1) Exchanged products (761 ) (2) Sales of refined products to third parties (117 ) (3) Operating income (4) 2,107 106 — 2,213 Interest expense, net 121 — — 121 Depreciation and amortization 458 8 — 466 Total assets, end of period 52,388 1,258 — 53,646 Capital expenditures 536 26 — 562 Three Months Ended September 30, 2014 Operating revenue: $ 11,114 $ 1,836 $ 11,178 Sales to airline segment $ (345 ) (1) Exchanged products (1,393 ) (2) Sales of refined products to third parties (34 ) (3) Operating income (4) 816 19 — 835 Interest expense, net 154 — — 154 Depreciation and amortization 433 7 — 440 Total assets, end of period 50,648 1,292 — 51,940 Capital expenditures 449 8 — 457 (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 our strategic agreements, 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. (in millions) Airline Refinery Intersegment Sales/Other Consolidated Nine Months Ended September 30, 2015 Operating revenue: $ 30,900 $ 3,755 $ 31,202 Sales to airline segment $ (792 ) (1) Exchanged products (2,401 ) (2) Sales of refined products to third parties (260 ) (3) Operating income (4) 5,803 282 — 6,085 Interest expense, net 379 — — 379 Depreciation and amortization 1,361 23 — 1,384 Capital expenditures 2,021 46 — 2,067 Nine Months Ended September 30, 2014 Operating revenue: $ 30,651 $ 5,317 $ 30,715 Sales to airline segment $ (981 ) (1) Exchanged products (3,920 ) (2) Sales of refined products to third parties (352 ) (3) Operating income (loss) (4) 3,043 (9 ) — 3,034 Interest expense, net 513 — — 513 Depreciation and amortization 1,315 18 — 1,333 Capital expenditures 1,552 37 — 1,589 (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 our strategic agreements, 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. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING 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 8 36 Payments (27 ) (63 ) Liability as of September 30, 2015 $ 23 $ 435 Fleet and other. We continue to restructure our domestic fleet by replacing a portion of our 50 -seat regional fleet with more efficient and customer preferred CRJ-900 and B-717-200 aircraft and by replacing older, less cost effective B-757-200 with B-737-900ER aircraft. The lease restructuring charges include remaining lease payments and lease return costs for permanently grounded aircraft. As we continue to restructure our 50 -seat regional fleet and assess our fleet plans, we may evaluate and adjust the expected size of the remaining active regional fleet. A decrease in the expected remaining fleet may cause us to retire additional aircraft, which would likely result in lease termination and other charges. The timing and amount of these charges will depend on a number of factors, including final negotiations with lessors, the timing of removing the aircraft from service and the ultimate disposition of aircraft. Severance and related costs . In September 2015, we announced a voluntary retirement program for eligible U.S. employees. We will record a charge in connection with this program when voluntary severance commitments are finalized during the December 2015 quarter. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 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. We calculate diluted earnings per share by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including stock options and restricted stock awards. 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 September 30, Nine Months Ended (in millions, except per share data) 2015 2014 2015 2014 Net income $ 1,315 $ 357 $ 3,546 $ 1,371 Basic weighted average shares outstanding 788 834 803 840 Dilutive effect of share-based awards 7 9 8 9 Diluted weighted average shares outstanding 795 843 811 849 Basic earnings per share $ 1.67 $ 0.43 $ 4.42 $ 1.63 Diluted earnings per share $ 1.65 $ 0.42 $ 4.37 $ 1.61 |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 Annual Report on Form 10-K for the year ended December 31, 2014 . 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 and other factors, operating results for the three and nine months ended September 30, 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." 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. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," that deferred the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date. The FASB permitted early adoption of the standard, but not before the original effective date of December 15, 2016. We are currently evaluating how the adoption of this standard will impact our Consolidated Financial Statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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) September 30, Level 1 Level 2 Cash equivalents $ 1,824 $ 1,824 $ — Short-term investments U.S. government and agency securities 124 71 53 Asset- and mortgage-backed securities 392 — 392 Corporate obligations 888 — 888 Other fixed income securities 38 — 38 Restricted cash equivalents and investments 46 46 — Long-term investments 97 72 25 Hedge derivatives, net Fuel hedge contracts (835 ) 122 (957 ) Interest rate contract 1 — 1 Foreign currency exchange contracts 92 — 92 (in millions) December 31, Level 1 Level 2 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) | 9 Months Ended |
Sep. 30, 2015 | |
Short-term Investments [Abstract] | |
Maturities for short-term investments | The estimated fair values of short-term investments, which approximate cost at September 30, 2015 , are shown below by contractual maturity. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to retire our investments without prepayment penalties. Investments with maturities beyond one year when purchased may be classified as short-term investments if they are expected to be available to support our short-term liquidity needs. (in millions) Available-For-Sale Maturities as of September 30, 2015 Due in one year or less $ 379 Due after one year through three years 836 Due after three years through five years 122 Due after five years 105 Total $ 1,442 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Hedge Position | Hedge Position as of September 30, 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) 384 U.S. dollars August 2022 $ 4 $ — $ — $ (3 ) $ 1 Foreign currency exchange contracts 57,545 Japanese yen July 2018 67 26 — (1 ) 92 427 Canadian dollars Not designated as hedges Fuel hedge contracts 921 gallons - crude oil, diesel and jet fuel January 2017 1,515 358 (2,194 ) (514 ) (835 ) Total derivative contracts $ 1,586 $ 384 $ (2,194 ) $ (518 ) $ (742 ) 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 August 2022 $ 5 $ — $ — $ (12 ) $ (7 ) Foreign currency exchange contracts 77,576 Japanese yen October 2017 25 49 (1 ) — 73 511 Canadian dollars Not designated as hedges Fuel hedge contracts 3,286 gallons - crude oil, diesel and jet fuel December 2016 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 September 30, 2015 Net derivative contracts $ 191 $ 29 $ (799 ) $ (163 ) $ (742 ) 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 September 30, Interest rate contract $ — $ (12 ) $ — $ 15 Foreign currency exchange contracts 69 47 (53 ) 38 Total designated $ 69 $ 35 $ (53 ) $ 53 Nine Months Ended September 30, Interest rate contract $ — $ (31 ) $ — $ 38 Foreign currency exchange contracts 161 118 (105 ) (73 ) Total designated $ 161 $ 87 $ (105 ) $ (35 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of estimated fair value of debt instruments | The fair value of debt, shown below, is based primarily on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral. Long-term debt is principally classified as Level 2 within the fair value hierarchy. (in millions) September 30, December 31, Total debt at par value $ 8,474 $ 9,469 Unamortized discount, net (57 ) (90 ) Net carrying amount $ 8,417 $ 9,379 Fair value $ 8,700 $ 9,800 |
Schedule of long-term debt instruments | These covenants require us to maintain: Minimum Unrestricted Liquidity Unrestricted cash, permitted investments and undrawn revolving credit facilities (including the Revolving Credit Facility) $2.0 billion Minimum Collateral Coverage Ratio (1) 1.60:1 (1) Defined as the ratio of (a) the value of the Collateral that meet specified eligibility standards to (b) the sum of the aggregate outstanding borrowings under the Senior Secured Credit Facilities and certain other obligations. These transactions are summarized in the table below: (in millions) Final Maturity Date Interest Rate(s) per Annum Proceeds Received Principal Retired Entered into in August 2015 Term Loan Facility August 2022 3.25% variable (1)(2) $ 500 $ — Revolving Credit Facility ($1.5 billion) August 2020 undrawn variable (3) — — Retired/Terminated in August 2015 Term Loan Facility April 2017 3.25% variable (1)(4) — 1,320 Revolving Credit Facility ($1.2 billion) April 2016 undrawn variable (1) — — Total $ 500 $ 1,320 (1) Interest rate equal to LIBOR (subject to a floor) or another index rate, in each case plus a specified margin. (2) Represents the rate as of September 30, 2015. (3) Interest rate equal to LIBOR or another index rate, in each case plus a specified margin. (4) Represents the rate as of August 24, 2015. |
Schedule of additional collateral on debt | The details of the 2015-1 EETC, which is secured by 15 aircraft, are shown in the table below: (in millions) Total Principal Fixed Interest Rate Issuance Date Final Maturity Date 2015-1 Class AA Certificates $ 313 3.625% August 2015 July 2027 2015-1 Class A Certificates 69 3.875% August 2015 July 2027 2015-1 Class B Certificates 118 4.250% August 2015 July 2023 Total $ 500 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 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 ) (6 ) Recognized net actuarial loss 61 33 6 1 Net periodic cost $ 62 $ 58 $ 30 $ 26 Nine Months Ended September 30, Service cost $ — $ — $ 48 $ 39 Interest cost 663 696 105 117 Expected return on plan assets (660 ) (621 ) (60 ) (63 ) Amortization of prior service credit — — (21 ) (20 ) Recognized net actuarial loss 177 100 18 3 Net periodic cost $ 180 $ 175 $ 90 $ 76 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future aircraft purchase commitments | (in millions) Total Three months ending December 31, 2015 $ 380 2016 1,950 2017 2,370 2018 2,270 2019 1,090 Thereafter 4,910 Total $ 12,970 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 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 $21) — 35 (52 ) (17 ) Reclassifications into earnings (net of tax effect of $7) (1) 114 (102 ) — 12 Balance at September 30, 2015 $ (7,403 ) $ 155 $ (68 ) $ (7,316 ) (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 $20) — 33 4 37 Reclassifications into earnings (net of tax effect of $4) (1) 48 (55 ) — (7 ) Balance at September 30, 2014 $ (5,275 ) $ 197 $ (22 ) $ (5,100 ) (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. (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. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | 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 September 30, 2015 Operating revenue: $ 10,994 $ 1,258 $ 11,107 Sales to airline segment $ (267 ) (1) Exchanged products (761 ) (2) Sales of refined products to third parties (117 ) (3) Operating income (4) 2,107 106 — 2,213 Interest expense, net 121 — — 121 Depreciation and amortization 458 8 — 466 Total assets, end of period 52,388 1,258 — 53,646 Capital expenditures 536 26 — 562 Three Months Ended September 30, 2014 Operating revenue: $ 11,114 $ 1,836 $ 11,178 Sales to airline segment $ (345 ) (1) Exchanged products (1,393 ) (2) Sales of refined products to third parties (34 ) (3) Operating income (4) 816 19 — 835 Interest expense, net 154 — — 154 Depreciation and amortization 433 7 — 440 Total assets, end of period 50,648 1,292 — 51,940 Capital expenditures 449 8 — 457 (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 our strategic agreements, 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. (in millions) Airline Refinery Intersegment Sales/Other Consolidated Nine Months Ended September 30, 2015 Operating revenue: $ 30,900 $ 3,755 $ 31,202 Sales to airline segment $ (792 ) (1) Exchanged products (2,401 ) (2) Sales of refined products to third parties (260 ) (3) Operating income (4) 5,803 282 — 6,085 Interest expense, net 379 — — 379 Depreciation and amortization 1,361 23 — 1,384 Capital expenditures 2,021 46 — 2,067 Nine Months Ended September 30, 2014 Operating revenue: $ 30,651 $ 5,317 $ 30,715 Sales to airline segment $ (981 ) (1) Exchanged products (3,920 ) (2) Sales of refined products to third parties (352 ) (3) Operating income (loss) (4) 3,043 (9 ) — 3,034 Interest expense, net 513 — — 513 Depreciation and amortization 1,315 18 — 1,333 Capital expenditures 1,552 37 — 1,589 (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 our strategic agreements, 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. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 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 8 36 Payments (27 ) (63 ) Liability as of September 30, 2015 $ 23 $ 435 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended (in millions, except per share data) 2015 2014 2015 2014 Net income $ 1,315 $ 357 $ 3,546 $ 1,371 Basic weighted average shares outstanding 788 834 803 840 Dilutive effect of share-based awards 7 9 8 9 Diluted weighted average shares outstanding 795 843 811 849 Basic earnings per share $ 1.67 $ 0.43 $ 4.42 $ 1.63 Diluted earnings per share $ 1.65 $ 0.42 $ 4.37 $ 1.61 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 1,824 | $ 1,612 |
Restricted cash equivalents and investments | 46 | 37 |
Fuel hedge contracts | (835) | (1,848) |
Interest rate contract | 1 | (7) |
Foreign currency exchange contracts | 92 | 73 |
Short-Term Investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 124 | 59 |
Short-Term Investments | Asset- and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 392 | 392 |
Short-Term Investments | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 888 | 749 |
Short-Term Investments | Other fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 38 | 17 |
Long-Term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 97 | 118 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,824 | 1,612 |
Restricted cash equivalents and investments | 46 | 37 |
Fuel hedge contracts | 122 | (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 | 71 | 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 | 72 | 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 | (957) | (1,681) |
Interest rate contract | 1 | (7) |
Foreign currency exchange contracts | 92 | 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 | 53 | 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 | 392 | 392 |
Level 2 | Short-Term Investments | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 888 | 749 |
Level 2 | Short-Term Investments | Other fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 38 | 17 |
Level 2 | Long-Term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 25 | $ 28 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Expected volatility rate (percent) | 24.00% |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Expected volatility rate (percent) | 52.00% |
Investments - Schedule of matur
Investments - Schedule of maturities for short-term investments (Details) $ in Millions | Sep. 30, 2015USD ($) |
Short-term Investments [Abstract] | |
Due in one year or less | $ 379 |
Due after one year through three years | 836 |
Due after three years through five years | 122 |
Due after five years | 105 |
Total | $ 1,442 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) shares in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015USD ($)destinationflightcountry | Jun. 30, 2015shares | Sep. 30, 2015USD ($)continentcitydestinationflight | |
Grupo Aeromexico | Equity Contract | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Derivative, nonmonetary notional amount, shares | shares | 58.9 | ||
GOL | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Ownership percentage | 9.50% | 9.50% | |
China Eastern | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost method investments | $ 450,000,000 | $ 450,000,000 | |
Ownership percentage in cost method investment | 3.50% | 3.50% | |
Restriction of sale or transfer of shares period | 3 years | ||
Preferred stock | GOL | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Underlying equity in net assets | $ 50,000,000 | $ 50,000,000 | |
China Eastern | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of destinations | destination | 217 | ||
Number of countries serviced | country | 26 | ||
Aeroméxico | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of flights (more than) | flight | 600 | ||
Number of cities serviced | city | 80 | ||
Number of continents serviced | continent | 4 | ||
GOL | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of flights (more than) | flight | 900 | ||
Number of destinations | destination | 62 | ||
MEXICO | Aeroméxico | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of destinations | destination | 45 | ||
Term loan facility | GOL | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Guarantee borrowings on third party debt | $ 300,000,000 | ||
Guarantee borrowings on third party debt, term | 5 years |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2014 | |
Derivative [Line Items] | ||||||||
Payments for (proceeds from) derivative instrument, operating activities | $ 302 | |||||||
Expected payments for (proceeds from) derivative instrument | $ 150 | |||||||
Payments for (proceeds from) derivative instrument | $ (128) | |||||||
Gains on cash flow hedge contracts in AOCI to be reclassified into earnings within 12 months | 93 | |||||||
Margin posted due to fair value position of hedge contracts | 381 | 381 | $ 925 | |||||
Scenario, Forecast | ||||||||
Derivative [Line Items] | ||||||||
Payments for (proceeds from) derivative instrument | $ (150) | |||||||
Payments for (proceeds from) hedging activities | $ 300 | |||||||
Fuel hedge contracts | ||||||||
Derivative [Line Items] | ||||||||
Derivative gain (loss) | $ (250) | $ (238) | $ (563) | $ (63) |
Derivatives - Hedge Position (D
Derivatives - Hedge Position (Details) ¥ in Millions, gal in Millions, CAD in Millions, $ in Millions | Sep. 30, 2015JPY (¥)gal | Sep. 30, 2015CADgal | Sep. 30, 2015USD ($)gal | Dec. 31, 2014JPY (¥)gal | Dec. 31, 2014CADgal | Dec. 31, 2014USD ($)gal |
Derivatives, Fair Value [Line Items] | ||||||
Foreign currency exchange contracts, hedge derivatives, net | $ 92 | $ 73 | ||||
Fuel hedge contracts, derivatives, net | (835) | (1,848) | ||||
Net derivative contracts, hedge derivatives, net | (742) | (1,782) | ||||
Hedge Derivatives Asset | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Total derivative contracts, assets | 1,586 | 1,078 | ||||
Other Noncurrent Assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Total derivative contracts, assets | 384 | 52 | ||||
Hedge Derivatives Liability | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Total derivative contracts, liabilities | (2,194) | (2,772) | ||||
Other Noncurrent Liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Total derivative contracts, liabilities | (518) | (140) | ||||
Designated as hedging instrument | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest rate contract (fair value hedge), hedge derivatives, net | 1 | (7) | ||||
Foreign currency exchange contracts, hedge derivatives, net | 92 | 73 | ||||
Designated as hedging instrument | Hedge Derivatives Asset | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest rate contract (fair value hedge), assets | 4 | 5 | ||||
Foreign currency exchange contracts, assets | 67 | 25 | ||||
Designated as hedging instrument | Other Noncurrent Assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest rate contract (fair value hedge), assets | 0 | 0 | ||||
Foreign currency exchange contracts, assets | 26 | 49 | ||||
Designated as hedging instrument | Hedge Derivatives Liability | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest rate contract (fair value hedge), liabilities | 0 | 0 | ||||
Foreign currency exchange contracts, liabilities | 0 | (1) | ||||
Designated as hedging instrument | Other Noncurrent Liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest rate contract (fair value hedge), liabilities | (3) | (12) | ||||
Foreign currency exchange contracts, liabilities | (1) | 0 | ||||
Not designated as hedging instrument | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fuel hedge contracts, derivatives, net | (835) | (1,848) | ||||
Not designated as hedging instrument | Hedge Derivatives Asset | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fuel hedge contracts, assets | 1,515 | 1,048 | ||||
Not designated as hedging instrument | Other Noncurrent Assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fuel hedge contracts, assets | 358 | 3 | ||||
Not designated as hedging instrument | Hedge Derivatives Liability | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fuel hedge contracts, liabilities | (2,194) | (2,771) | ||||
Not designated as hedging instrument | Other Noncurrent Liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fuel hedge contracts, liabilities | $ (514) | $ (128) | ||||
Fuel hedge contracts | Not designated as hedging instrument | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, nonmonetary notional amount | gal | 921 | 921 | 921 | 3,286 | 3,286 | 3,286 |
Fair value hedging | Interest rate contract (fair value hedge) | Designated as hedging instrument | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, notional amount | $ 384 | $ 416 | ||||
Cash flow hedging | Foreign currency exchange contracts | Designated as hedging instrument | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, notional amount | ¥ 57,545 | CAD 427 | ¥ 77,576 | CAD 511 |
Derivatives Derivatives - Offse
Derivatives Derivatives - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Net derivative contracts, hedge derivatives, net | $ (742) | $ (1,782) |
Hedge Derivatives Asset | ||
Derivative [Line Items] | ||
Net derivative contracts, assets | 191 | 29 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Net derivative contracts, assets | 29 | 49 |
Hedge Derivatives Liability | ||
Derivative [Line Items] | ||
Net derivative contracts, liabilities | (799) | (1,723) |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Net derivative contracts, liabilities | $ (163) | $ (137) |
Derivatives - Designated Hedge
Derivatives - Designated Hedge Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective Portion Reclassified from AOCI to Earnings | $ 69 | $ 35 | $ 161 | $ 87 |
Effective Portion Recognized in Other Comprehensive Income | (53) | 53 | (105) | (35) |
Interest Rate Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective Portion Reclassified from AOCI to Earnings | 0 | (12) | 0 | (31) |
Effective Portion Recognized in Other Comprehensive Income | 0 | 15 | 0 | 38 |
Foreign currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective Portion Reclassified from AOCI to Earnings | 69 | 47 | 161 | 118 |
Effective Portion Recognized in Other Comprehensive Income | $ (53) | $ 38 | $ (105) | $ (73) |
Long-Term Debt - Schedule of Fa
Long-Term Debt - Schedule of Fair Values (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Total debt at par value | $ 8,474 | $ 9,469 |
Unamortized discount, net | (57) | (90) |
Net carrying amount | 8,417 | 9,379 |
Fair value | $ 8,700 | $ 9,800 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facilities (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Aug. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Aug. 24, 2015 | |
Debt Instrument [Line Items] | ||||
Fixed Interest Rate | 3.25% | 3.25% | ||
Repurchased face amount | $ 1,320,000,000 | |||
Proceeds from long-term obligations | 500,000,000 | $ 1,038,000,000 | $ 980,000,000 | |
Senior secured credit facility | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 2,000,000,000 | |||
Senior secured credit facility | Term loan facility | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Proceeds from long-term obligations | 500,000,000 | |||
Senior secured credit facility | Revolving credit facility | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Proceeds from long-term obligations | 0 | |||
Maximum borrowing capacity | 1,500,000,000 | |||
Retired revolving credit facility, 2015 | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 2,545,000,000 | |||
Retired revolving credit facility, 2015 | Term loan facility | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Repurchased face amount | 1,320,000,000 | |||
Retired revolving credit facility, 2015 | Revolving credit facility | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Repurchased face amount | 0 | |||
Maximum borrowing capacity | $ 1,200,000,000 |
Long-Term Debt - Coverage Ratio
Long-Term Debt - Coverage Ratio Requirements (Details) - Line of credit - Senior secured credit facility $ in Billions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Debt Instrument [Line Items] | |
Minimum collateral coverage ratio | 1.60 |
Maximum borrowing capacity | $ 2 |
Long-Term Debt - Schedule of Ad
Long-Term Debt - Schedule of Additional Collateral on Debt (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Aug. 31, 2015 | Aug. 24, 2015 |
Debt Instrument [Line Items] | |||
Fixed Interest Rate | 3.25% | 3.25% | |
Secured Debt | |||
Debt Instrument [Line Items] | |||
Total Principal | $ 500 | ||
Secured Debt | 2015-1 Class AA Certificates | |||
Debt Instrument [Line Items] | |||
Total Principal | $ 313 | ||
Fixed Interest Rate | 3.625% | ||
Secured Debt | 2015-1 Class A Certificates | |||
Debt Instrument [Line Items] | |||
Total Principal | $ 69 | ||
Fixed Interest Rate | 3.875% | ||
Secured Debt | 2015-1 Class B Certificates | |||
Debt Instrument [Line Items] | |||
Total Principal | $ 118 | ||
Fixed Interest Rate | 4.25% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2015USD ($)aircraft | Aug. 31, 2015USD ($) | |
Line of credit | Retired revolving credit facility, 2015 | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 2,545,000,000 | |
Line of credit | Senior secured credit facility | ||
Debt Instrument [Line Items] | ||
Percentage of principal periodically paid | 1.00% | |
Maximum borrowing capacity | 2,000,000,000 | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Other aircraft commitments | aircraft | 15 | |
Total Principal | 500,000,000 | |
Term loan facility | Line of credit | Senior secured credit facility | ||
Debt Instrument [Line Items] | ||
Total Principal | 500,000,000 | |
Revolving credit facility | Line of credit | Retired revolving credit facility, 2015 | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 1,200,000,000 | |
Revolving credit facility | Line of credit | Senior secured credit facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,500,000,000 | |
Fuel hedge contracts | Not designated as hedging instrument | ||
Debt Instrument [Line Items] | ||
Secured assets | $ 100,000,000 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Benefit Plan Components (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 221 | 232 | 663 | 696 |
Expected return on plan assets | (220) | (207) | (660) | (621) |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 61 | 33 | 177 | 100 |
Net periodic cost | 62 | 58 | 180 | 175 |
Other Postretirement and Postemployment Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 16 | 13 | 48 | 39 |
Interest cost | 35 | 39 | 105 | 117 |
Expected return on plan assets | (20) | (21) | (60) | (63) |
Amortization of prior service credit | (7) | (6) | (21) | (20) |
Recognized net actuarial loss | 6 | 1 | 18 | 3 |
Net periodic cost | $ 30 | $ 26 | $ 90 | $ 76 |
Commitments and Contingencies -
Commitments and Contingencies - Aircraft Purchase and Lease Commitments (Details) $ in Millions | Sep. 30, 2015USD ($)aircraft |
Future aircraft purchase commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Future aircraft purchase commitments | $ | $ 12,970 |
B-717-200 | Future aircraft purchase commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Aircraft purchase commitments, minimum quantity required | 3 |
B-717-200 | Southwest Airlines and The Boeing Company | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Other aircraft commitments | 8 |
B-737-900ER | Future aircraft purchase commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Aircraft purchase commitments, minimum quantity required | 54 |
A321-200 | Future aircraft purchase commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Aircraft purchase commitments, minimum quantity required | 45 |
A330-900 NEO | Future aircraft purchase commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Aircraft purchase commitments, minimum quantity required | 25 |
A350-900 | Future aircraft purchase commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Aircraft purchase commitments, minimum quantity required | 25 |
B-787-8 | Future aircraft purchase commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Aircraft purchase commitments, minimum quantity required | 18 |
A330-300 | Future aircraft purchase commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Aircraft purchase commitments, minimum quantity required | 7 |
B-757-200 | Future aircraft purchase commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Aircraft purchase commitments, minimum quantity required | 1 |
Commitments and Contingencies43
Commitments and Contingencies - Schedule of Purchase Obligations (Details) - Future aircraft purchase commitments $ in Millions | Sep. 30, 2015USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Three months ending December 31, 2015 | $ 380 |
2,016 | 1,950 |
2,017 | 2,370 |
2,018 | 2,270 |
2,019 | 1,090 |
Thereafter | 4,910 |
Total | $ 12,970 |
Commitments and Contingencies44
Commitments and Contingencies - Devaluation and Other Contingencies (Details) employee in Thousands, $ in Millions | Sep. 30, 2015USD ($)employee |
Intercompany Foreign Currency Balance [Line Items] | |
Entity number of employees | employee | 83 |
Percentage of employees represented by unions under collective bargaining agreements | 18.00% |
Venezuelan bolívar fuerte | |
Intercompany Foreign Currency Balance [Line Items] | |
Asset, reporting currency denominated, value | $ 79 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Loss - Schedule of AOCI Components (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss, beginning balance | $ (7,311) | $ (5,130) |
Changes in value (net of tax effect) | (17) | 37 |
Reclassifications into earnings (net of tax effect) | 12 | (7) |
Accumulated other comprehensive loss, ending balance | (7,316) | (5,100) |
Deferred income tax expense (benefit) | 1,900 | 1,900 |
Changes in value tax effect | (21) | (20) |
Reclassification into earnings tax effect | 7 | 4 |
Pension and Other Benefits Liabilities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss, beginning balance | (7,517) | (5,323) |
Changes in value (net of tax effect) | 0 | 0 |
Reclassifications into earnings (net of tax effect) | 114 | 48 |
Accumulated other comprehensive loss, ending balance | (7,403) | (5,275) |
Derivative Contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss, beginning balance | 222 | 219 |
Changes in value (net of tax effect) | 35 | 33 |
Reclassifications into earnings (net of tax effect) | (102) | (55) |
Accumulated other comprehensive loss, ending balance | 155 | 197 |
Investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss, beginning balance | (16) | (26) |
Changes in value (net of tax effect) | (52) | 4 |
Reclassifications into earnings (net of tax effect) | 0 | 0 |
Accumulated other comprehensive loss, ending balance | $ (68) | $ (22) |
Segments (Narrative) (Details)
Segments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Operating revenue | $ 11,107 | $ 11,178 | $ 31,202 | $ 30,715 |
Exchanged products | Intersegment Sales/Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenue | $ (761) | $ (1,393) | $ (2,401) | $ (3,920) |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Operating revenue | $ 11,107 | $ 11,178 | $ 31,202 | $ 30,715 | |
Operating income | 2,213 | 835 | 6,085 | 3,034 | |
Interest expense, net | 121 | 154 | 379 | 513 | |
Depreciation and amortization | 466 | 440 | 1,384 | 1,333 | |
Assets | 53,646 | 51,940 | 53,646 | 51,940 | $ 54,121 |
Capital expenditures | 562 | 457 | 2,067 | 1,589 | |
Airline | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | 10,994 | 11,114 | 30,900 | 30,651 | |
Operating income | 2,107 | 816 | 5,803 | 3,043 | |
Interest expense, net | 121 | 154 | 379 | 513 | |
Depreciation and amortization | 458 | 433 | 1,361 | 1,315 | |
Assets | 52,388 | 50,648 | 52,388 | 50,648 | |
Capital expenditures | 536 | 449 | 2,021 | 1,552 | |
Refinery | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | 1,258 | 1,836 | 3,755 | 5,317 | |
Operating income | 106 | 19 | 282 | (9) | |
Interest expense, net | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 8 | 7 | 23 | 18 | |
Assets | 1,258 | 1,292 | 1,258 | 1,292 | |
Capital expenditures | 26 | 8 | 46 | 37 | |
Sales to airline segment | Intersegment Sales/Other | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | (267) | (345) | (792) | (981) | |
Exchanged products | Intersegment Sales/Other | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | (761) | (1,393) | (2,401) | (3,920) | |
Sales of refined products to third parties | Intersegment Sales/Other | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenue | $ (117) | $ (34) | $ (260) | $ (352) |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) | 9 Months Ended |
Sep. 30, 2015seat | |
Regional carrier | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related costs, fleet restructuring initiative | 50 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Charges (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Severance and Related Costs | |
Restructuring Reserve [Roll Forward] | |
Liability as of January 1, 2015 | $ 42 |
Additional costs and expenses | 8 |
Payments | (27) |
Liability as of September 30, 2015 | 23 |
Lease Restructuring | |
Restructuring Reserve [Roll Forward] | |
Liability as of January 1, 2015 | 462 |
Additional costs and expenses | 36 |
Payments | (63) |
Liability as of September 30, 2015 | $ 435 |
Earnings Per share - Schedule o
Earnings Per share - Schedule of Computation for Earnings Per Share Types (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 1,315 | $ 357 | $ 3,546 | $ 1,371 |
Basic weighted average shares outstanding | 788 | 834 | 803 | 840 |
Dilutive effect of share-based awards | 7 | 9 | 8 | 9 |
Diluted weighted average shares outstanding | 795 | 843 | 811 | 849 |
Basic earnings per share (in USD per share) | $ 1.67 | $ 0.43 | $ 4.42 | $ 1.63 |
Diluted earnings per share (in USD per share) | $ 1.65 | $ 0.42 | $ 4.37 | $ 1.61 |