Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | DELTA AIR LINES INC /DE/ | ||
Entity Central Index Key | 27,904 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 38.9 | ||
Entity Common Stock, Shares Outstanding | 706,913,358 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 1,814 | $ 2,762 |
Short-term investments | 825 | 487 |
Accounts receivable, net of an allowance for uncollectible accounts of $12 and $15 at December 31, 2017 and 2016, respectively | 2,377 | 2,064 |
Fuel inventory | 916 | 519 |
Expendable parts and supplies inventories, net of an allowance for obsolescence of $113 and $110 at December 31, 2017 and 2016, respectively | 413 | 372 |
Prepaid expenses and other | 1,499 | 1,247 |
Total current assets | 7,844 | 7,451 |
Property and Equipment, Net: | ||
Property and equipment, net of accumulated depreciation and amortization of $14,097 and $12,456 at December 31, 2017 and 2016, respectively | 26,563 | 24,375 |
Other Assets: | ||
Goodwill | 9,794 | 9,794 |
Identifiable intangibles, net of accumulated amortization of $845 and $828 at December 31, 2017 and 2016, respectively | 4,847 | 4,844 |
Deferred income taxes, net | 935 | 3,064 |
Other noncurrent assets | 3,309 | 1,733 |
Total other assets | 18,885 | 19,435 |
Total assets | 53,292 | 51,261 |
Current Liabilities: | ||
Current maturities of long-term debt and capital leases | 2,242 | 1,131 |
Air traffic liability | 4,888 | 4,626 |
Accounts payable | 3,674 | 2,572 |
Accrued salaries and related benefits | 3,022 | 2,924 |
Frequent flyer deferred revenue | 1,822 | 1,648 |
Fuel card obligation | 1,067 | 431 |
Other accrued liabilities | 1,858 | 1,907 |
Total current liabilities | 18,573 | 15,239 |
Noncurrent Liabilities: | ||
Long-term debt and capital leases | 6,592 | 6,201 |
Pension, postretirement and related benefits | 9,810 | 13,378 |
Frequent flyer deferred revenue | 2,296 | 2,278 |
Other noncurrent liabilities | 2,111 | 1,878 |
Total noncurrent liabilities | 20,809 | 23,735 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Common stock at $0.0001 par value; 1,500,000,000 shares authorized, 714,674,160 and 744,886,938 shares issued at December 31, 2017 and 2016, respectively | 0 | 0 |
Additional paid-in capital | 12,053 | 12,294 |
Retained earnings | 9,636 | 7,903 |
Accumulated other comprehensive loss | (7,621) | (7,636) |
Treasury stock, at cost, 7,476,181 and 14,149,229 shares at December 31, 2017 and 2016, respectively | (158) | (274) |
Total stockholders' equity | 13,910 | 12,287 |
Total liabilities and stockholders' equity | $ 53,292 | $ 51,261 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Allowance for uncollectible accounts | $ 12 | $ 15 |
Allowance for obsolescence | 113 | 110 |
Property and Equipment, Net: | ||
Accumulated depreciation and amortization | 14,097 | 12,456 |
Other Assets: | ||
Accumulated amortization | $ 845 | $ 828 |
Stockholders' Equity: | ||
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 714,674,160 | 744,886,938 |
Treasury stock, at cost, shares | 7,476,181 | 14,149,229 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Passenger: | |||
Mainline | $ 29,105 | $ 28,105 | $ 28,898 |
Regional carriers | 5,714 | 5,672 | 5,884 |
Total passenger revenue | 34,819 | 33,777 | 34,782 |
Cargo | 729 | 668 | 813 |
Other | 5,696 | 5,194 | 5,109 |
Total operating revenue | 41,244 | 39,639 | 40,704 |
Operating Expense: | |||
Salaries and related costs | 10,436 | 10,034 | 8,776 |
Aircraft fuel and related taxes | 5,733 | 5,133 | 6,544 |
Regional carriers expense | 4,503 | 4,311 | 4,241 |
Depreciation and amortization | 2,235 | 1,902 | 1,835 |
Contracted services | 2,184 | 1,991 | 1,848 |
Aircraft maintenance materials and outside repairs | 1,992 | 1,823 | 1,848 |
Passenger commissions and other selling expenses | 1,787 | 1,710 | 1,672 |
Landing fees and other rents | 1,528 | 1,490 | 1,493 |
Passenger service | 1,067 | 907 | 872 |
Profit sharing | 1,065 | 1,115 | 1,490 |
Aircraft rent | 351 | 285 | 250 |
Other | 2,249 | 1,986 | 2,033 |
Total operating expense | 35,130 | 32,687 | 32,902 |
Operating Income | 6,114 | 6,952 | 7,802 |
Non-Operating Expense: | |||
Interest expense, net | (396) | (388) | (481) |
Miscellaneous, net | (17) | 72 | (164) |
Total non-operating expense, net | (413) | (316) | (645) |
Income Before Income Taxes | 5,701 | 6,636 | 7,157 |
Income Tax Provision | (2,124) | (2,263) | (2,631) |
Net Income | $ 3,577 | $ 4,373 | $ 4,526 |
Basic Earnings Per Share (usd per share) | $ 4.97 | $ 5.82 | $ 5.68 |
Diluted Earnings Per Share (usd per share) | 4.95 | 5.79 | 5.63 |
Cash Dividends Declared Per Share (usd per share) | $ 1.02 | $ 0.68 | $ 0.45 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 3,577 | $ 4,373 | $ 4,526 |
Other comprehensive income (loss): | |||
Net change in derivative contracts | (27) | (43) | (82) |
Net change in pension and other benefits | (98) | (360) | 163 |
Net change in investments | 140 | 42 | (45) |
Total Other Comprehensive Income (Loss) | 15 | (361) | 36 |
Comprehensive Income | $ 3,592 | $ 4,012 | $ 4,562 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operating Activities: | |||
Net income | $ 3,577 | $ 4,373 | $ 4,526 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,235 | 1,902 | 1,835 |
Hedge derivative contracts | (7) | (342) | (1,366) |
Deferred income taxes | 2,071 | 2,223 | 2,581 |
Pension, postretirement and postemployment payments greater than expense | (3,302) | (717) | (1,013) |
Equity investment earnings | (1) | (160) | (35) |
Changes in certain assets and liabilities: | |||
Receivables | (328) | (147) | (56) |
Fuel inventory | (397) | (140) | 155 |
Hedge margin | (5) | 81 | 806 |
Prepaid expenses and other current assets | (57) | (26) | (102) |
Air traffic liability | 262 | 123 | 207 |
Frequent flyer deferred revenue | 192 | 45 | (301) |
Profit sharing | (51) | (383) | 734 |
Accounts payable and accrued liabilities | 992 | 285 | (201) |
Other, net | (33) | 88 | 157 |
Net cash provided by operating activities | 5,148 | 7,205 | 7,927 |
Property and equipment additions: | |||
Flight equipment, including advance payments | (2,704) | (2,617) | (2,223) |
Ground property and equipment, including technology | (1,187) | (774) | (722) |
Purchase of equity investments | (1,245) | 0 | (500) |
Purchase of short-term investments | (925) | (1,707) | (998) |
Redemption of short-term investments | 584 | 2,686 | 739 |
Other, net | 111 | 257 | (251) |
Net cash used in investing activities | (5,366) | (2,155) | (3,955) |
Cash Flows From Financing Activities: | |||
Payments on long-term debt and capital lease obligations | (1,258) | (1,709) | (2,558) |
Repurchase of common stock | (1,677) | (2,601) | (2,200) |
Cash dividends | (731) | (509) | (359) |
Fuel card obligation | 636 | 211 | (340) |
Payments on hedge derivative contracts | (244) | (451) | (71) |
Proceeds from hedge derivative contracts | 20 | 291 | 429 |
Proceeds from long-term obligations | 2,454 | 450 | 1,038 |
Other, net | 70 | 58 | (27) |
Net cash used in financing activities | (730) | (4,260) | (4,088) |
Net (Decrease) Increase in Cash and Cash Equivalents | (948) | 790 | (116) |
Cash and cash equivalents at beginning of period | 2,762 | 1,972 | 2,088 |
Cash and cash equivalents at end of period | 1,814 | 2,762 | 1,972 |
Supplemental Disclosure of Cash Paid for Interest | 390 | 385 | 452 |
Non-Cash Transactions: | |||
Treasury stock contributed to our qualified defined benefit pension plans | 350 | 350 | 0 |
Flight and ground equipment acquired under capital leases | $ 261 | $ 86 | $ 111 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | |
Beginning balance at Dec. 31, 2014 | $ 8,813 | $ 0 | $ 13,621 | $ 2,816 | $ (7,311) | $ (313) | |
Beginning balance (shares) at Dec. 31, 2014 | 845 | 20 | |||||
Consolidated Statements of Stockholders' Equity (Deficit) | |||||||
Net income | 4,526 | 4,526 | |||||
Dividends declared | (359) | (359) | |||||
Other comprehensive income (loss) | 36 | 36 | |||||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) | [1] | 16 | 76 | $ (60) | |||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) (shares) | [1] | 1 | 1 | ||||
Stock options exercised | 18 | 18 | |||||
Stock options exercised (shares) | 2 | ||||||
Stock purchased and retired | (2,200) | (779) | (1,421) | ||||
Stock purchased and retired (shares) | (48) | ||||||
Ending balance at Dec. 31, 2015 | 10,850 | $ 0 | 12,936 | 5,562 | (7,275) | $ (373) | |
Ending balance (shares) at Dec. 31, 2015 | 800 | 21 | |||||
Consolidated Statements of Stockholders' Equity (Deficit) | |||||||
Net income | 4,373 | 4,373 | |||||
Change in accounting principle | 95 | 95 | |||||
Dividends declared | (509) | (509) | |||||
Other comprehensive income (loss) | (361) | (361) | |||||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) | [1] | 65 | 105 | $ (40) | |||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) (shares) | [1] | 2 | 1 | ||||
Stock options exercised | 32 | 32 | |||||
Stock options exercised (shares) | 3 | ||||||
Treasury stock, net, contributed to our qualified defined benefit pension plans | 343 | 204 | $ 139 | ||||
Treasury stock, net, contributed to our qualified defined benefit pension plans (shares) | (8) | ||||||
Stock purchased and retired | (2,601) | (983) | (1,618) | ||||
Stock purchased and retired (shares) | (60) | ||||||
Ending balance at Dec. 31, 2016 | 12,287 | $ 0 | 12,294 | 7,903 | (7,636) | $ (274) | |
Ending balance (shares) at Dec. 31, 2016 | 745 | 14 | |||||
Consolidated Statements of Stockholders' Equity (Deficit) | |||||||
Net income | 3,577 | 3,577 | |||||
Dividends declared | (731) | (731) | |||||
Other comprehensive income (loss) | 15 | 15 | |||||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) | [1] | 68 | 107 | $ (39) | |||
Shares of common stock issued and compensation expense associated with equity awards (Treasury shares withheld for payment of taxes) (shares) | [1] | 1 | 1 | ||||
Stock options exercised | 28 | 28 | |||||
Stock options exercised (shares) | 2 | ||||||
Treasury stock, net, contributed to our qualified defined benefit pension plans | 343 | 188 | $ 155 | ||||
Treasury stock, net, contributed to our qualified defined benefit pension plans (shares) | (8) | ||||||
Stock purchased and retired | (1,677) | (564) | (1,113) | ||||
Stock purchased and retired (shares) | (33) | ||||||
Ending balance at Dec. 31, 2017 | $ 13,910 | $ 0 | $ 12,053 | $ 9,636 | $ (7,621) | $ (158) | |
Ending balance (shares) at Dec. 31, 2017 | 715 | 7 | |||||
[1] | Weighted average price per share |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Weighted average price per treasury share withheld for taxes (per share) | $ 48.31 | $ 44.27 | $ 46.83 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Delta Air Lines, Inc., a Delaware corporation, provides scheduled air transportation for passengers and cargo throughout the United States ("U.S.") and around the world. Our 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 U.S. ("GAAP"). We do not consolidate the financial statements of any company in which we have an ownership interest of 50% or less. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity. We have marketing alliances with other airlines to enhance our access to domestic and international markets. These arrangements may include codesharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location and other marketing agreements. We have received antitrust immunity for certain marketing arrangements, which enables us to offer a more integrated route network and develop common sales, marketing and discount programs for customers. Some of our marketing arrangements provide for the sharing of revenues and expenses. Revenues and expenses associated with collaborative arrangements are presented on a gross basis in the applicable line items on our Consolidated Statements of Operations. We reclassified certain prior period amounts to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. Use of Estimates We are required to make estimates and assumptions when preparing our Consolidated Financial Statements in accordance with GAAP. These estimates and assumptions affect the amounts reported in our Consolidated Financial Statements and the accompanying notes. Actual results could differ materially from those estimates. Recent Accounting Standards Revenue from Contracts with Customers. In 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." Under this ASU and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. We will adopt the standard effective January 1, 2018 using the full retrospective approach. While the adoption of the new standard will not have a significant effect on earnings, the classification of certain revenues that are currently classified in other revenue will be reclassified to passenger revenue. These include baggage fees, administrative charges and other travel-related fees, all of which will be deemed part of the single performance obligation of providing passenger transportation. These revenues, which are approximately $2 billion annually, will be reclassified from the current presentation in other revenue to passenger revenue after adoption. In addition, the adoption of the new standard increases the rate used to account for frequent flyer miles. We currently analyze our standalone sales of mileage credits to other airlines and customers to establish the accounting value for frequent flyer miles. Considering the guidance in the new standard, we will change our valuation of a mileage credit to an analysis of the award redemption value. The new valuation considers the value a passenger receives by redeeming miles rather than paying cash for an award ticket. This change increases our frequent flyer liability by approximately $2 billion . The mileage deferral and redemption rates are approximately the same; therefore, assuming stable volume, there would not be a significant change in revenue recognized from the program for a given period. The adoption of the new standard will also reduce our air traffic liability by approximately $500 million . This change primarily results from estimating the tickets that will expire unused and recognizing revenue at the scheduled flight date rather than when the unused tickets expire. Leases. In 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet and is effective for interim and annual reporting periods beginning after December 15, 2018. We have not completed our assessment, but the adoption of this standard will have a significant impact on our Consolidated Balance Sheets. However, we do not expect the adoption to have a significant impact on the recognition, measurement or presentation of lease expenses within the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. Information about our undiscounted future lease payments and the timing of those payments is in Note 7 , "Lease Obligations." We will adopt this standard effective January 1, 2019. Statement of Cash Flows. In 2016, the FASB issued ASU Nos. 2016-15 and 2016-18 related to the classification of certain cash receipts and cash payments and the presentation of restricted cash within an entity's statement of cash flows, respectively. We will adopt the standards effective January 1, 2018. Financial Instruments. In 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10)." This standard makes several changes, including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. We will adopt the standard effective January 1, 2018. This standard does not apply to our investments in Grupo Aeroméxico and Virgin Atlantic, which are accounted for under the equity method. Our investments in GOL Linhas Aéreas Inteligentes, the parent company of VRG Linhas Aéreas (operating as GOL) and China Eastern are currently accounted for as available-for-sale with changes in fair value recognized in other comprehensive income. At the time of adoption, the balance in accumulated other comprehensive income/(loss) ("AOCI") related to equity investments will be reclassified to retained earnings. As of December 31, 2017, a net unrealized gain of $162 million related to these investments was recorded in AOCI on our Consolidated Balance Sheet. Our investment in Air France-KLM is currently accounted for at cost as our investment agreement restricts the sale or transfer of these shares for five years. Despite the restriction, upon adoption of ASU No. 2016-01, this investment will be accounted for at fair value with changes in fair value recognized in net income. Retirement Benefits. In 2017, the FASB issued ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715)." This standard requires an entity to report the service cost component in the same line item as other compensation costs. The other components of net (benefit) cost will be required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. In 2017, we recorded $50 million of non-service costs that will be reclassified to non-operating expense upon adoption. This standard is effective for interim and annual reporting periods beginning after December 15, 2017. We will adopt the standard effective January 1, 2018. Comprehensive Income . In February 2018, the FASB issued ASU No. 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220)." This standard provides financial statement preparers with an option to reclassify stranded tax effects within AOCI from retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The adoption of the standard may impact tax amounts stranded in AOCI related to our pension plans. See Note 11 of the Notes to the Consolidated Financial Statements for more information. Cash and Cash Equivalents and Short-Term Investments Short-term, highly liquid investments with maturities of three months or less when purchased are classified as cash and cash equivalents. Investments with maturities of greater than three months, but not in excess of one year, when purchased are classified as short-term investments. 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. All short-term investments are classified as either available-for-sale or held-to-maturity, and realized gains and losses are recorded using the specific identification method. Accounts Receivable Accounts receivable primarily consist of amounts due from credit card companies from the sale of passenger airline tickets, customers of our aircraft maintenance and cargo transportation services and other companies for the purchase of mileage credits under our frequent flyer program (the "SkyMiles program"). We provide an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical chargebacks, write-offs, bankruptcies and other specific analyses. Bad debt expense was not material in any period presented. Inventories Spare Parts. Inventories of expendable parts related to flight equipment, which cannot be economically repaired, reconditioned or reused after removal from the aircraft, are carried at moving average cost and charged to operations as consumed. An allowance for obsolescence is provided over the remaining useful life of the related fleet. We also provide allowances for parts identified as excess or obsolete to reduce the carrying costs to the lower of cost or net realizable value. These parts are assumed to have an estimated residual value of 5% of the original cost. Refinery. Refined product, feedstock and blendstock inventories, all of which are finished goods, are carried at recoverable cost. We use jet fuel in our airline operations that is produced by the refinery and procured through the exchange with third parties of gasoline, diesel and other refined products ("non-jet fuel products") the refinery produces. Cost is determined using the first-in, first-out method. Costs include the raw material consumed plus direct manufacturing costs (such as labor, utilities and supplies) incurred and an applicable portion of manufacturing overhead. Accounting for Refinery Related Buy/Sell Agreements To the extent that we receive jet fuel for non-jet fuel products exchanged under buy/sell agreements, we account for these transactions as nonmonetary exchanges. We have recorded these nonmonetary exchanges at the carrying amount of the non-jet fuel products transferred within aircraft fuel and related taxes on the Consolidated Statements of Operations. Derivatives Changes in 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 may enter into derivative contracts and adjust our derivative portfolio as market conditions change. We recognize derivative contracts at fair value on our Consolidated Balance Sheets. Not Designated as Accounting Hedges. We do not designate our fuel derivative contracts as accounting hedges. We recorded changes in the fair value of our fuel hedges in aircraft fuel and related taxes. These changes in fair value include settled gains and losses as well as mark-to-market adjustments ("MTM adjustments"). MTM adjustments are defined as fair value changes recorded in periods other than the settlement period. Such fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period. Designated as Cash Flow Hedges. For derivative contracts designated as cash flow hedges (interest rate contracts and foreign currency exchange contracts), the effective portion of the gain or loss on the derivative is reported as a component of AOCI and reclassified into earnings in the same period in which the hedged transaction affects earnings. The effective portion of the derivative represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. To the extent the change in the fair value of the hedge does not perfectly offset the change in the fair value of the hedged item, the ineffective portion of the hedge is immediately recognized in non-operating expense. Designated as Fair Value Hedges. For derivative contracts designated as fair value hedges (interest rate contracts), the gain or loss on the derivative is reported in earnings and an equivalent amount is reflected as a change in the carrying value of long-term debt and capital leases, with an offsetting loss or gain recognized in current earnings. We include the gain or loss on the hedged item in the same account as the offsetting loss or gain on the related derivative contract, resulting in no impact to our Consolidated Statements of Operations. The following table summarizes the risk each type of derivative contract is hedging and the classification of related gains and losses on our Consolidated Statements of Operations: Derivative Type Hedged Risk Classification of Gains and Losses Fuel hedge contracts Fluctuations in fuel prices Aircraft fuel and related taxes Interest rate contracts Increases in interest rates Interest expense, net Foreign currency exchange contracts Fluctuations in foreign currency exchange rates Passenger revenue The following table summarizes the accounting treatment of our derivative contracts: Impact of Unrealized Gains and Losses Accounting Designation Effective Portion Ineffective Portion Not designated as hedges Change in fair value of hedge is recorded in earnings Designated as cash flow hedges Market adjustments are recorded in AOCI Excess, if any, over effective portion of hedge is recorded in non-operating expense Designated as fair value hedges Market adjustments are recorded in long-term debt and capital leases Excess, if any, over effective portion of hedge is recorded in non-operating expense We perform, at least quarterly, an assessment of the effectiveness of our derivative contracts designated as hedges, including assessing the possibility of counterparty default. If we determine that a derivative is no longer expected to be highly effective, we discontinue hedge accounting prospectively and recognize subsequent changes in the fair value of the hedge in earnings. We believe our derivative contracts that continue to be designated as hedges, consisting of interest rate and foreign currency exchange contracts, will continue to be highly effective in offsetting changes in fair value or cash flow, respectively, attributable to the hedged risk. Cash flows associated with purchasing and settling hedge contracts generally are classified as operating cash flows. However, if a hedge contract includes a significant financing element at inception, cash flows associated with the hedge contract are recorded as financing cash flows. Hedge Margin. In accordance with our fuel, interest rate and foreign currency hedge contracts, we may require counterparties to fund the margin associated with our gain position and/or counterparties may require us to fund the margin associated with our loss position on these contracts. The amount of the margin, if any, is periodically adjusted based on the fair value of the hedge contracts. The margin requirements are intended to mitigate a party's exposure to the risk of counterparty default. We do not offset margin funded to counterparties or margin funded to us by counterparties against fair value amounts recorded for our hedge contracts. The hedge margin we receive from counterparties is recorded in prepaid expenses and other, with the offsetting obligation in accounts payable. The hedge margin we provide to counterparties is recorded in prepaid expenses and other. Long-Lived Assets The following table summarizes our property and equipment: December 31, (in millions, except for estimated useful life) Estimated Useful Life 2017 2016 Flight equipment 20-32 years $ 30,688 $ 28,135 Ground property and equipment 3-40 years 7,665 6,581 Flight and ground equipment under capital leases Shorter of lease term or estimated useful life 1,147 1,056 Advance payments for equipment 1,160 1,059 Less: accumulated depreciation and amortization (1) (14,097 ) (12,456 ) Total property and equipment, net $ 26,563 $ 24,375 (1) Includes accumulated amortization for flight and ground equipment under capital leases in the amount of $668 million and $757 million at December 31, 2017 and 2016 , respectively. We record property and equipment at cost and depreciate or amortize these assets on a straight-line basis to their estimated residual values over their estimated useful lives. The estimated useful life for leasehold improvements is the shorter of lease term or estimated useful life. Depreciation and amortization expense related to our property and equipment was $2.2 billion , $1.9 billion and $1.8 billion for each of the years ended December 31, 2017 , 2016 and 2015 , respectively. Residual values for owned aircraft, engines, spare parts and simulators are generally 5% to 10% of cost. We capitalize certain internal and external costs incurred to develop and implement software and amortize those costs over an estimated useful life of three to 10 years. Included in the depreciation and amortization expense discussed above, we recorded $189 million , $160 million and $148 million for amortization of capitalized software for the years ended December 31, 2017 , 2016 and 2015 , respectively. The net book value of these assets totaled $659 million and $549 million at December 31, 2017 and 2016 , respectively. We review flight equipment and other long-lived assets used in operations for impairment losses when events and circumstances indicate the assets may be impaired. Factors which could be indicators of impairment include, but are not limited to, (1) a decision to permanently remove flight equipment or other long-lived assets from operations, (2) significant changes in the estimated useful life, (3) significant changes in projected cash flows, (4) permanent and significant declines in fleet fair values and (5) changes to the regulatory environment. For long-lived assets held for sale, we discontinue depreciation and record impairment losses when the carrying amount of these assets is greater than the fair value less the cost to sell. To determine whether impairments exist for aircraft used in operations, we group assets at the fleet-type level (the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of capacity, passenger mile yield, fuel costs, labor costs and other relevant factors. If an impairment occurs, the impairment loss recognized is the amount by which the fleet's carrying amount exceeds its estimated fair value. We estimate aircraft fair values using published sources, appraisals and bids received from third parties, as available. Goodwill and Other Intangible Assets Our goodwill and identifiable intangible assets relate to the airline segment. We apply a fair value-based impairment test to the carrying value of goodwill and indefinite-lived intangible assets on an annual basis (as of October 1) and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. We assess the value of our goodwill and indefinite-lived assets under either a qualitative or quantitative approach. Under a qualitative approach, we consider various market factors, including the key assumptions listed below. We analyze these factors to determine if events and circumstances have affected the fair value of goodwill and indefinite-lived intangible assets. If we determine that it is more likely than not that the asset may be impaired, we use the quantitative approach to assess the asset's fair value and the amount of the impairment. Under a quantitative approach, we calculate the fair value of the asset using the key assumptions listed below. We value goodwill and indefinite-lived intangible assets primarily using market capitalization and income approach valuation techniques. These measurements include the following key assumptions: (1) forecasted revenues, expenses and cash flows, (2) terminal period revenue growth and cash flows, (3) an estimated weighted average cost of capital, (4) assumed discount rates depending on the asset and (5) a tax rate. These assumptions are consistent with those hypothetical market participants would use. Since we are required to make estimates and assumptions when evaluating goodwill and indefinite-lived intangible assets for impairment, actual transaction amounts may differ materially from these estimates. Changes in certain events and circumstances could result in impairment or a change from indefinite-lived to definite-lived. Factors which could cause impairment include, but are not limited to, (1) negative trends in our market capitalization, (2) reduced profitability resulting from lower passenger mile yields or higher input costs (primarily related to fuel and employees), (3) lower passenger demand as a result of weakened U.S. and global economies, (4) interruption to our operations due to a prolonged employee strike, terrorist attack or other reasons, (5) changes to the regulatory environment (e.g., diminished slot restrictions or additional Open Skies agreements), (6) competitive changes by other airlines and (7) strategic changes to our operations leading to diminished utilization of the intangible assets. Goodwill. When we evaluate goodwill for impairment using a quantitative approach, we estimate the fair value of the reporting unit by considering both market capitalization and projected discounted future cash flows (an income approach). If the reporting unit's fair value exceeds its carrying value, no further testing is required. If, however, the reporting unit's carrying value exceeds its fair value, we then determine the amount of the impairment charge, if any. We recognize an impairment charge if the carrying value of the reporting unit's goodwill exceeds its estimated fair value. Identifiable Intangible Assets. Indefinite-lived assets are not amortized and consist of routes, slots, the Delta tradename and assets related to SkyTeam and collaborative arrangements. Definite-lived intangible assets consist primarily of marketing and maintenance service agreements and are amortized on a straight-line basis or under the undiscounted cash flows method over the estimated economic life of the respective agreements. Costs incurred to renew or extend the term of an intangible asset are expensed as incurred. We assess our indefinite-lived assets under a qualitative or quantitative approach. We analyze market factors to determine if events and circumstances have affected the fair value of the indefinite-lived intangible assets. If we determine that it is more likely than not that the asset value may be impaired, we use the quantitative approach to assess the asset's fair value and the amount of the impairment. We perform the quantitative impairment test for indefinite-lived intangible assets by comparing the asset's fair value to its carrying value. Fair value is estimated based on (1) recent market transactions, where available, (2) the royalty method for the Delta tradename (which assumes hypothetical royalties generated from using our tradename) or (3) projected discounted future cash flows (an income approach). We recognize an impairment charge if the asset's carrying value exceeds its estimated fair value. Income Taxes We account for deferred income taxes under the liability method. We recognize deferred tax assets and liabilities based on the tax effects of temporary differences between the financial statement and tax basis of assets and liabilities, as measured by current enacted tax rates. Deferred tax assets and liabilities are recorded net as noncurrent deferred income taxes. A valuation allowance is recorded to reduce deferred tax assets when necessary. We periodically assess whether it is more likely than not that we will generate sufficient taxable income to realize our deferred income tax assets. We establish valuation allowances if it is not likely we will realize our deferred income tax assets. In making this determination, we consider all available positive and negative evidence and make certain assumptions. We consider, among other things, projected future taxable income, scheduled reversals of deferred tax liabilities, the overall business environment, our historical financial results and tax planning strategies. Fuel Card Obligation We have a purchasing card with American Express for the purpose of buying jet fuel and crude oil. The card currently carries a maximum credit limit of $1.1 billion and must be paid monthly. At December 31, 2017 and December 31, 2016 , we had $1.1 billion and $431 million , respectively, outstanding on this purchasing card, which was classified as a financing activity in our Consolidated Statements of Cash Flows. Retirement of Repurchased Shares We immediately retire shares repurchased pursuant to our share repurchase program. We allocate the share purchase price in excess of par value between APIC and retained earnings. Passenger Tickets We record sales of passenger tickets in air traffic liability. Passenger revenue is recognized when we provide transportation or when the ticket expires unused, reducing the related air traffic liability. We periodically evaluate the estimated air traffic liability and record any adjustments in our Consolidated Statements of Operations. These adjustments relate primarily to refunds, exchanges, transactions with other airlines and other items for which final settlement occurs in periods subsequent to the sale of the related tickets at amounts other than the original sales price. Passenger Taxes and Fees We are required to charge certain taxes and fees on our passenger tickets, including U.S. federal transportation taxes, federal security charges, airport passenger facility charges and foreign arrival and departure taxes. These taxes and fees are assessments on the customer for which we act as a collection agent. Because we are not entitled to retain these taxes and fees, we do not include such amounts in passenger revenue. We record a liability when the amounts are collected and reduce the liability when payments are made to the applicable government agency or operating carrier. Frequent Flyer Program Our SkyMiles program offers incentives to travel on Delta. This program allows customers to earn mileage credits by flying on Delta, Delta Connection and airlines that participate in the SkyMiles program, as well as through participating companies such as credit card companies, hotels and car rental agencies. We sell mileage credits to non-airline businesses, customers and other airlines. Effective January 1, 2015, the SkyMiles program was modified from a model in which customers earn redeemable mileage credits based on distance traveled to a model based on ticket price. This award change did not affect the way we account for the program. The SkyMiles program includes two types of transactions that are considered revenue arrangements with multiple deliverables. As discussed below, these are (1) passenger ticket sales earning mileage credits and (2) the sale of mileage credits to participating companies with which we have marketing agreements. Mileage credits are a separate unit of accounting as they can be redeemed by customers in future periods for air travel on Delta and participating airlines, membership in our Sky Club and other program awards. Passenger Ticket Sales Earning Mileage Credits. Passenger ticket sales earning mileage credits under our SkyMiles program provide customers with (1) mileage credits earned and (2) air transportation. We value each deliverable on a standalone basis. Our estimate of the selling price of a mileage credit is based on an analysis of our sales of mileage credits to other airlines and customers, which is re-evaluated at least annually. We use established ticket prices to determine the estimated selling price of air transportation. We allocate the total amount collected from passenger ticket sales between the deliverables based on their relative selling prices. We defer revenue for the mileage credits related to passenger ticket sales when the credits are earned and recognize it as passenger revenue when miles are redeemed and services are provided. We record the air transportation portion of the passenger ticket sales in air traffic liability and recognize these amounts in passenger revenue when we provide transportation or when the ticket expires unused. Sale of Mileage Credits. Customers may earn mileage credits through participating companies such as credit card companies, hotels and car rental agencies with which we have marketing agreements to sell mileage credits. Our contracts to sell mileage credits under these marketing agreements have multiple deliverables, as defined below. Our most significant contract to sell mileage credits relates to our co-brand credit card relationship with American Express. Our agreements with American Express provide for joint marketing, grant certain benefits to Delta-American Express co-branded credit card holders ("Cardholders") and American Express Membership Rewards program participants and allow American Express to market using our customer database. Cardholders earn mileage credits for making purchases using co-branded cards, may check their first bag for free, are granted discounted access to Delta Sky Club lounges and receive other benefits while traveling on Delta. These benefits that we provide in the form of separate products and services under the SkyMiles agreements are referred to as "deliverables." Additionally, participants in the American Express Membership Rewards program may exchange their points for mileage credits under the SkyMiles program. As a result, we sell mileage credits at agreed-upon rates to American Express for provision to their customers under the co-brand credit card program and the Membership Rewards program. Our marketing agreements with American Express extend to 2022. We account for the agreements consistent with the accounting method that allocates the consideration received to the individual products and services delivered based on their relative selling prices. We determined our best estimate of the selling prices by considering discounted cash flow analysis using multiple inputs and assumptions, including: (1) the expected number of miles awarded and number of miles redeemed, (2) the rate at which we sell mileage credits to other airlines, (3) published rates on our website for baggage fees, discounted access to Delta Sky Club lounges and other benefits while traveling on Delta and (4) brand value. We recognize revenue as we deliver each sales element. We defer the travel deliverable (mileage credits) as part of frequent flyer deferred revenue and recognize passenger revenue as the mileage credits are used for travel. The revenue allocated to the remaining deliverables is recorded in other revenue. We recognize the revenue for these services as they are performed. Breakage. For mileage credits that we estimate are not likely to be redeemed ("breakage"), we recognize the associated value proportionally during the period in which the remaining mileage credits are expected to be redeemed. Management uses statistical models to estimate breakage based on historical redemption patterns. A change in assumptions as to the period over which mileage credits are expected to be redeemed, the actual redemption activity for mileage credits or the estimated fair value of mileage credits expected to be redeemed could have a material impact on our revenue in the year in which the change occurs and in future years. Regional Carriers Revenue Our regional carriers include both our contract carrier agreements with third-party regional carriers ("contract carriers") and Endeavor Air, Inc. ("Endeavor"), our wholly owned subsidiary. Our contract carrier agreements are structured as either (1) capacity purchase agreemen |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. • Level 1. Observable inputs such as quoted prices in active markets; • Level 2 . Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3 . Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on the valuation techniques identified in the tables below. The valuation techniques are as follows: (a) Market approach . Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities; and (b) Income approach. Techniques to convert future amounts to a single present value amount based on market expectations (including present value techniques and option-pricing models). Assets (Liabilities) Measured at Fair Value on a Recurring Basis (1) December 31, 2017 Valuation Technique (in millions) Total Level 1 Level 2 Cash equivalents $ 1,357 $ 1,357 $ — (a) Short-term investments U.S. government and agency securities 93 84 9 (a) Asset- and mortgage-backed securities 173 — 173 (a) Corporate obligations 467 — 467 (a) Other fixed income securities 92 — 92 (a) Restricted cash equivalents and investments 38 38 — (a) Long-term investments 513 485 28 (a) Hedge derivatives, net Fuel hedge contracts (66 ) (43 ) (23 ) (a)(b) Foreign currency exchange contracts (17 ) — (17 ) (a) December 31, 2016 Valuation Technique (in millions) Total Level 1 Level 2 Cash equivalents $ 2,279 $ 2,279 $ — (a) Short-term investments U.S. government securities 112 86 26 (a) Asset- and mortgage-backed securities 68 — 68 (a) Corporate obligations 295 — 295 (a) Other fixed income securities 12 — 12 (a) Restricted cash equivalents and investments 61 61 — (a) Long-term investments 139 115 24 (a) Hedge derivatives, net Fuel hedge contracts (324 ) (26 ) (298 ) (a)(b) Foreign currency exchange contracts 27 — 27 (a) (1) See Note 9 , "Employee Benefit Plans," for fair value of benefit plan assets. 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 have historically been measured at fair value primarily consist of equity investments in Grupo Aeroméxico, the parent company of Aeroméxico, and the parent company of GOL. During 2017, we completed a tender offer for additional shares of Grupo Aeroméxico. With the completion of the tender offer, our investment is accounted for under the equity method and is no longer measured at fair value on a recurring basis. As of December 31, 2017, our long-term investments include our shares in China Eastern and the parent company of GOL. Our investments are valued based on market prices and 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 and refined products, as these commodities are highly correlated with the price of 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 10% to 28% 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 based on maturity dates utilizing the London interbank offered rate ("LIBOR"). Futures contracts and options on futures contracts are traded on a public exchange and valued based on quoted market prices. • Foreign Currency Exchange Contracts. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS Short-Term Investments The estimated fair values of short-term investments, which approximate cost at December 31, 2017 , 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. (in millions) Available- For-Sale Due in one year or less $ 323 Due after one year through three years 465 Due after three years through five years 19 Due after five years 18 Total $ 825 Long-Term Investments We have developed strategic relationships with certain airlines through equity investments and other forms of cooperation and support. Strategic relationships improve our coordination with these airlines and enable our customers to seamlessly connect to more places while enjoying a consistent, high-quality travel experience. Equity Method Investments • Aeroméxico . During 2017, we completed a $622 million tender offer and executed derivative contracts for $173 million to obtain additional capital stock of Grupo Aeroméxico, increasing our ownership percentage to a non-controlling 49% equity stake in Grupo Aeroméxico . • Virgin Atlantic . We have a non-controlling 49% equity stake in Virgin Atlantic Limited, the parent company of Virgin Atlantic Airways. We account for these investments under the equity method of accounting and recognize our portion of their financial results in miscellaneous, net in our Consolidated Statements of Operations. Available-for-Sale Investments • GOL. We own 9% of the outstanding capital stock of GOL's parent company through ownership of its preferred shares. Driven by an improved outlook for the Brazilian economy and the financial performance of the company, the stock price of GOL's parent company has more than doubled since December 31, 2016 and exceeds the original cost of our investment. This unrealized gain of $56 million is recorded in AOCI. Additionally, GOL has 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. Because GOL remains in compliance with the terms of its loan facility, we have not recorded a liability on our Consolidated Balance Sheets as of December 31, 2017 . • China Eastern. We have a 3% equity interest in China Eastern. Because the investment agreement with China Eastern restricts our sale or transfer of these shares through the September 2018 quarter, we had previously recorded this investment at cost. As we are now within one year of the lapse of these restrictions, we began accounting for the investment during the September 2017 quarter as available-for-sale with changes in fair value recorded in AOCI. As of December 31, 2017, the unrealized gain recorded in AOCI was $106 million . Cost Method Investments • Air France-KLM. During 2017, we acquired 10% of the outstanding shares of our joint venture partner, Air France-KLM, for $450 million . Because our investment agreement restricts the sale or transfer of these shares for five years, we account for this investment at cost. We are working to develop a combined long-term joint venture with Air France-KLM and Virgin Atlantic as part of our investment strategy. • Republic Airways . During 2017, we acquired a 17% |
Derivatives and Risk Management
Derivatives and Risk Management | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Risk Management | DERIVATIVES AND RISK MANAGEMENT Changes in 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 may enter into derivative contracts and adjust our derivative portfolio as market conditions change. Fuel Price Risk Changes in fuel prices materially impact our results of operations. We have recently managed our fuel price risk through a hedging program intended to reduce the financial impact from changes in the price of fuel as fuel prices are subject to potential volatility. In addition, we may enter into derivatives with third parties to hedge financial risk related to Monroe’s refining margins. In response to this volatility, during 2015 and 2016 we entered into transactions to defer settlement of a portion of our hedge portfolio and lock in the amount of hedge settlements for a portion of 2016 and 2017. These deferral transactions, excluding markets movements from the date of inception, provided approximately $300 million in cash receipts in 2015 and 2016 and required approximately $300 million in cash payments in 2016 and 2017. We also early settled $455 million of our airline segment's 2016 positions during 2016. Cash flows associated with the deferral transactions are reported as cash flows from financing activities within our Consolidated Statements of Cash Flows. During the years ended December 31, 2017 , 2016 and 2015, we recorded fuel hedge losses of $81 million , $366 million and $741 million , respectively. Interest Rate Risk Our exposure to market risk from adverse changes in interest rates is primarily associated with our long-term debt obligations. 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 an effort to manage our exposure to the risk associated with our variable rate long-term debt, we periodically enter into interest rate swaps. We designate interest rate contracts used to convert the interest rate exposure on a portion of our debt portfolio from a floating rate to a fixed rate as cash flow hedges, while those contracts converting our interest rate exposure from a fixed rate to a floating rate are designated as fair value hedges. We also have exposure to market risk from adverse changes in interest rates associated with our cash and cash equivalents and benefit plan obligations. Market risk associated with our cash and cash equivalents relates to the potential decline in interest income from a decrease in interest rates. Pension, postretirement, postemployment and worker's compensation obligation risk relates to the potential increase in our future obligations and expenses from a decrease in interest rates used to discount these obligations. Foreign Currency Exchange Rate Risk We are subject to foreign currency exchange rate risk because we have revenue and expense denominated in foreign currencies with our primary exposures being the Japanese yen and Canadian dollar. To manage exchange rate risk, we execute both our international revenue and expense transactions in the same foreign currency to the extent practicable. From time to time, we may also enter into foreign currency option and forward contracts. These foreign currency exchange contracts are designated as cash flow hedges. Hedge Position as of December 31, 2017 (in millions) Volume Final Maturity Date Hedge Derivatives Asset Other Noncurrent Assets Hedge Derivatives Liability Other Noncurrent Liabilities Hedge Derivatives, net Designated as hedges Foreign currency exchange contracts 23,512 Japanese yen November 2019 1 1 (13 ) (6 ) (17 ) 490 Canadian dollars May 2020 Not designated as hedges Fuel hedge contracts 249 gallons - crude oil and refined products May 2019 638 8 (694 ) (18 ) (66 ) Total derivative contracts $ 639 $ 9 $ (707 ) $ (24 ) $ (83 ) Hedge Position as of December 31, 2016 (in millions) Volume Final Maturity Date Hedge Derivatives Asset Other Noncurrent Assets Hedge Derivatives Liability Other Noncurrent Liabilities Hedge Derivatives, net Designated as hedges Foreign currency exchange contracts 54,853 Japanese yen February 2019 31 3 (4 ) (3 ) 27 335 Canadian dollars January 2019 Not designated as hedges Fuel hedge contracts (1) 197 gallons - crude oil and refined products January 2018 360 — (684 ) — (324 ) Total derivative contracts $ 391 $ 3 $ (688 ) $ (3 ) $ (297 ) (1) As discussed above, we early settled $455 million of our airline segment's 2016 fuel hedge positions and entered into hedges designed to offset and effectively neutralize our 2017 airline segment hedge positions. The dollar amounts shown above primarily represent the offsetting derivatives that were used to neutralize the 2016 and 2017 airline segment hedge portfolio. Offsetting Assets and Liabilities We have master netting arrangements with our counterparties giving us the right to offset hedge assets and liabilities. However, we have elected not to offset the fair value positions recorded on our Consolidated Balance Sheets. The following table shows the net fair value of our counterparty positions had we elected to offset. (in millions) Hedge Derivatives Asset Other Noncurrent Assets Hedge Derivatives Liability Other Noncurrent Liabilities Hedge Derivatives, Net December 31, 2017 Net derivative contracts $ — $ 1 $ (68 ) $ (16 ) $ (83 ) December 31, 2016 Net derivative contracts $ 29 $ 2 $ (326 ) $ (2 ) $ (297 ) Designated Hedge Gains (Losses) Gains (losses) related to our designated hedge contracts during the years ended December 31, 2017 , 2016 and 2015 are as follows: Effective Portion Reclassified from AOCI to Earnings Effective Portion Recognized in Other Comprehensive (Loss) Income (in millions) 2017 2016 2015 2017 2016 2015 Foreign currency exchange contracts 10 37 198 (43 ) (68 ) (130 ) Credit Risk To manage credit risk associated with our 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 $43 million and $38 million as of December 31, 2017 and 2016 , respectively. Our accounts receivable are generated largely from the sale of passenger airline tickets and cargo transportation services, the majority of which are processed through major credit card companies. We also have receivables from the sale of mileage credits under our SkyMiles program to participating airlines and non-airline businesses such as credit card companies, hotels and car rental agencies. The credit risk associated with our receivables is minimal. Self-Insurance Risk |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS Indefinite-Lived Intangible Assets Carrying Value at December 31, (in millions) 2017 2016 International routes and slots $ 2,583 $ 2,563 Delta tradename 850 850 SkyTeam-related assets 661 661 Domestic slots 622 622 Total $ 4,716 $ 4,696 International Routes and Slots. Our international routes and slots primarily relate to Pacific route authorities and slots at capacity-constrained airports in Asia, and slots at London-Heathrow airport. Domestic Slots. Our domestic slots relate to our slots at New York-LaGuardia and Washington-Reagan National airports. Definite-Lived Intangible Assets December 31, 2017 December 31, 2016 (in millions) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Marketing agreements $ 730 $ (677 ) $ 730 $ (667 ) Contracts 193 (115 ) 193 (108 ) Other 53 (53 ) 53 (53 ) Total $ 976 $ (845 ) $ 976 $ (828 ) Amortization expense was $17 million , $17 million and $18 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. We estimate that we will incur approximately $16 million |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT The following table summarizes our long-term debt: Maturity Interest Rate(s) Per Annum at December 31, (in millions) Dates December 31, 2017 2017 2016 Pacific Facilities (1) : Pacific Term Loan B-1 (2) October 2018 3.99% variable (4) $ 1,048 $ 1,059 Pacific Revolving Credit Facility October 2018 undrawn variable (4) — — 2015 Credit Facilities (1) : Term Loan Facility (2) August 2022 4.07% variable (4) 490 495 Revolving Credit Facility August 2020 undrawn variable (4) — — Financing arrangements secured by aircraft: Certificates (3) 2018 to 2027 3.63% to 8.02% 2,380 2,777 Notes (3) 2018 to 2027 1.81% to 6.76% 1,961 2,488 Unsecured notes (5) 2020 to 2022 2.60% to 3.63% 2,450 — Other financings (3)(6) 2019 to 2030 0.00% to 8.75% 210 293 Other revolving credit facilities (1) 2018 to 2019 undrawn variable (4) — — Total secured and unsecured debt 8,539 7,112 Unamortized discount and debt issue cost, net (99 ) (104 ) Total debt 8,440 7,008 Less: current maturities (2,145 ) (1,009 ) Total long-term debt $ 6,295 $ 5,999 (1) Guaranteed by substantially all of our domestic subsidiaries (the "Guarantors"). (2) Borrowings must be repaid annually in an amount equal to 1% per year of the original principal amount (paid in equal quarterly installments), with the balance due on the final maturity date. (3) Due in installments. (4) Interest rate equal to LIBOR (generally subject to a floor) or another index rate, in each case plus a specified margin. Additionally, certain aircraft and other financings are comprised of variable rate debt. (5) Includes notes issued in March and December 2017. (6) Primarily includes unsecured bonds and debt secured by certain accounts receivable and real estate. Unsecured Debt Offerings During the March 2017 quarter, we issued $2.0 billion in aggregate principal amount of unsecured notes, consisting of $1.0 billion of 2.875% Notes due 2020 and $1.0 billion of 3.625% Notes due 2022. During the December 2017 quarter, we issued $450 million in aggregate principal amount of 2.600% Notes due 2020 (collectively, the "Notes"). The Notes are equal in priority with all of our other unsubordinated indebtedness and senior in priority to all of our future subordinated debt. The Notes are subject to covenants that, among other things, limit our ability to incur liens securing indebtedness for borrowed money or capital leases and engage in mergers and consolidations or transfer all or substantially all of our assets, in each case subject to certain exceptions. The Notes are also subject to customary event of default provisions, including cross-defaults to other material indebtedness. If we experience certain changes of control and a ratings decline on any series of Notes by two of the ratings agencies to a rating below investment grade within a certain period of time following a change of control or public notice of the occurrence of a change of control, we must offer to repurchase such series. Key Financial Covenants We were in compliance with the covenants in our financing agreements at December 31, 2017 . Pacific Facilities. Our obligations under the Pacific Facilities are secured by a first lien on our Pacific route authorities and certain related assets. The Pacific Facilities include affirmative, negative and financial covenants that could restrict our ability to, among other things, make investments, sell or otherwise dispose of collateral if we are not in compliance with the collateral coverage ratio tests described below, pay dividends or repurchase stock. Minimum fixed charge coverage ratio (1) 1.20:1 Minimum unrestricted liquidity Unrestricted cash, permitted investments and undrawn revolving credit facilities $2.0 billion Minimum collateral coverage ratio (2) 1.60:1 (1) Defined as the ratio of (a) earnings before interest, taxes, depreciation, amortization and aircraft rent and other adjustments to net income to (b) the sum of gross cash interest expense (including the interest portion of our capitalized lease obligations) and cash aircraft rent expense, for the 12-month period ending as of the last day of each fiscal quarter. (2) Defined as the ratio of (a) certain of the collateral that meet specified eligibility standards to (b) the sum of the aggregate outstanding obligations and certain other obligations. 2015 Credit Facilities. Our obligations under the 2015 Credit Facilities are 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 2015 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 $2.0 billion Minimum collateral coverage ratio (1) 1.60:1 (1) Defined as the ratio of (a) certain of the collateral that meet specified eligibility standards to (b) the sum of the aggregate outstanding obligations under the 2015 Credit Facilities and certain other obligations. Under the 2015 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 2015 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 2015 Credit Facilities may be accelerated and become due and payable immediately. Availability Under Revolving Credit Facilities The table below shows availability under revolving credit facilities, all of which were undrawn, as of December 31, 2017 : (in millions) Revolving Credit Facility $ 1,500 Pacific Revolving Credit Facility 415 Other revolving credit facilities 535 Total availability under revolving credit facilities $ 2,450 Future Maturities The following table summarizes scheduled maturities of our debt for the years succeeding December 31, 2017 : (in millions) Total Debt Amortization of Debt Discount and Debt Issuance Cost, net 2018 $ 2,183 $ (42 ) 2019 1,359 (30 ) 2020 1,983 (8 ) 2021 345 (6 ) 2022 2,009 (7 ) Thereafter 660 (6 ) Total $ 8,539 $ (99 ) $ 8,440 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 principally based on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral. Long-term debt is primarily classified as Level 2 within the fair value hierarchy. December 31, (in millions) 2017 2016 Total debt at par value $ 8,539 $ 7,112 Unamortized discount and debt issuance cost, net (99 ) (104 ) Net carrying amount $ 8,440 $ 7,008 Fair value $ 8,700 $ 7,300 |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Lease Obligations | LEASE OBLIGATIONS We lease aircraft, airport terminals, maintenance facilities, ticket offices and other property and equipment from third parties. Rental expense for operating leases, which is recorded on a straight-line basis over the life of the lease term, totaled $1.3 billion for the years ended December 31, 2017 and 2016 and $1.2 billion for the year ended December 31, 2015. Amounts due under capital leases are recorded as liabilities, while assets acquired under capital leases are recorded as property and equipment. Amortization of assets recorded under capital leases is included in depreciation and amortization expense. Our airport terminal leases include contingent rents, which vary based upon facility usage, enplanements, aircraft weight and other factors. Many of our aircraft, facility and equipment leases include rental escalation clauses and/or renewal options. Our leases do not include residual value guarantees and we are not the primary beneficiary in or have other forms of variable interest with the lessor of the leased assets. As a result, we have not consolidated any of the entities that lease to us. The following tables summarize our minimum rental commitments under capital leases and noncancelable operating leases (including certain aircraft flown by regional carriers) with initial or remaining terms in excess of one year for the years succeeding December 31, 2017 : Capital Leases (in millions) Total 2018 $ 116 2019 92 2020 65 2021 41 2022 24 Thereafter 126 Total minimum lease payments 464 Less: amount of lease payments representing interest (70 ) Present value of future minimum capital lease payments 394 Less: current obligations under capital leases (97 ) Long-term capital lease obligations $ 297 Operating Leases (in millions) Delta Lease Payments (1) Contract Carrier Aircraft Lease Payments (2) Total 2018 $ 1,469 $ 266 $ 1,735 2019 1,322 267 1,589 2020 1,189 241 1,430 2021 983 173 1,156 2022 883 153 1,036 Thereafter 8,819 471 9,290 Total minimum lease payments $ 14,665 $ 1,571 $ 16,236 (1) Includes payments accounted for as construction obligations. (2) |
Airport Redevelopment
Airport Redevelopment | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Airport Redevelopment | AIRPORT REDEVELOPMENT New York-JFK Airport In 2015, we completed our redevelopment project at New York-JFK's Terminal 4 to facilitate convenient connections for our passengers and improve coordination with our SkyTeam alliance partners. Terminal 4 is operated by JFK International Air Terminal LLC ("IAT"), a private party, under its lease with the Port Authority of New York and New Jersey ("Port Authority"). In December 2010, we entered into a 33 -year agreement with IAT ("Sublease") to sublease space in Terminal 4. Also, in 2010, the Port Authority issued approximately $800 million principal amount of special project bonds to fund the majority of the project. We managed the project and bore the construction risk, including cost overruns. We recorded an asset for project costs (e.g., design, permitting, labor and other general construction costs), regardless of funding source, and a construction obligation equal to project costs funded by parties other than us. Our rental payments reduce the construction obligation and result in the recording of interest expense, calculated using the effective interest method. As of December 31, 2017, we have recorded $691 million as property and equipment and $744 million as the related construction obligation. We have an equity method investment in the entity which owns IAT, our sublessor at Terminal 4. The Sublease requires us to pay certain fixed management fees. We determined the investment is a variable interest entity and assessed whether we have a controlling financial interest in IAT. Our rights under the Sublease, with respect to management of Terminal 4, are consistent with rights granted to an anchor tenant under a standard airport lease. Accordingly, we do not consolidate the entity in which we have an investment in our Consolidated Financial Statements. Los Angeles International Airport During 2016, we announced plans to modernize, upgrade and connect Terminals 2 and 3 at Los Angeles International Airport (“LAX”) over the next seven years. A substantial majority of the project costs will be funded through the Regional Airports Improvement Corporation ("RAIC"), a California public benefit corporation, using an $800 million revolving credit facility provided by a group of lenders. The credit facility was executed during 2017. We have guaranteed the obligations of the RAIC under the credit facility. Because the RAIC remains in compliance with the terms of its credit facility, we have not recorded a liability on our Consolidated Balance Sheet as of December 31, 2017 . New York-LaGuardia Airport As part of the terminal redevelopment project at LaGuardia Airport, we are partnering with the Port Authority of New York and New Jersey (the “Port Authority”) to replace Terminals C and D with a new state-of-the-art terminal facility consisting of 37 gates across four concourses connected to a central headhouse. The terminal will feature a new, larger Delta Sky Club, wider concourses, more gate seating and 30 percent more concessions space than the existing terminals. The facility will also offer direct access between the parking garage and terminal with improved roadways and drop-off/pick-up areas. The design of the new terminal will integrate sustainable technologies and improved energy efficiency. Construction will be phased to limit passenger inconvenience and is expected to be completed by 2026. In connection with the redevelopment, during 2017, we entered into an amended and restated terminal lease with the Port Authority with a term through 2050. Pursuant to the lease agreement we will (1) fund (through debt issuance and existing cash) and undertake the design, management and construction of the terminal and certain off-premises supporting facilities, (2) receive a Port Authority contribution of $600 million |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We sponsor defined benefit and defined contribution pension plans, healthcare plans and disability and survivorship plans for eligible employees and retirees and their eligible family members. Defined Benefit Pension Plans. We sponsor defined benefit pension plans for eligible employees and retirees. These plans are closed to new entrants and frozen for future benefit accruals. The Pension Protection Act of 2006 allows commercial airlines to elect alternative funding rules ("Alternative Funding Rules") for defined benefit plans that are frozen. We elected the Alternative Funding Rules under which the unfunded liability for a frozen defined benefit plan may be amortized over a fixed 17-year period and is calculated using an 8.85% discount rate. We have no minimum funding requirements in 2018. However, in January 2018, we voluntarily contributed approximately $500 million to these plans. Defined Contribution Pension Plans. We sponsor several defined contribution plans. These plans generally cover different employee groups and employer contributions vary by plan. The costs associated with our defined contribution pension plans were $875 million , $733 million and $592 million for the years ended December 31, 2017, 2016 and 2015, respectively. Postretirement Healthcare Plans. We sponsor healthcare plans that include providing benefits to eligible retirees and their dependents who are under age 65 . We have generally eliminated company-paid post age 65 healthcare coverage, except for (1) subsidies available to a limited group of retirees and their dependents and (2) a group of retirees who retired prior to 1987. Benefits under these plans are funded from current assets and employee contributions. Postemployment Plans. We provide certain other welfare benefits to eligible former or inactive employees after employment but before retirement, primarily as part of the disability and survivorship plans. Substantially all employees are eligible for benefits under these plans in the event of death and/or disability. Benefit Obligations, Fair Value of Plan Assets and Funded Status Pension Benefits Other Postretirement and Postemployment Benefits December 31, December 31, (in millions) 2017 2016 2017 2016 Benefit obligation at beginning of period $ 20,859 $ 20,611 $ 3,379 $ 3,336 Service cost — — 87 68 Interest cost 853 917 138 147 Actuarial loss (gain) 1,068 411 183 115 Benefits paid, including lump sums and annuities (1,075 ) (1,071 ) (311 ) (318 ) Participant contributions — — 28 31 Settlements (9 ) (9 ) — — Benefit obligation at end of period (1) $ 21,696 $ 20,859 $ 3,504 $ 3,379 Fair value of plan assets at beginning of period $ 10,301 $ 9,374 $ 784 $ 884 Actual gain (loss) on plan assets 1,966 687 138 51 Employer contributions 3,561 1,320 254 154 Participant contributions — — 28 31 Benefits paid, including lump sums and annuities (1,075 ) (1,071 ) (338 ) (336 ) Settlements (9 ) (9 ) — — Fair value of plan assets at end of period $ 14,744 $ 10,301 $ 866 $ 784 Funded status at end of period $ (6,952 ) $ (10,558 ) $ (2,638 ) $ (2,595 ) (1) At the end of each year presented, our accumulated benefit obligations for our pension plans are equal to the benefit obligations shown above. During 2017 and 2016, net actuarial losses increased our benefit obligation due to the decrease in discount rates. These gains and losses are recorded in AOCI and reflected in the table below. A net actuarial loss of $277 million will be amortized from AOCI into net periodic benefit cost in 2018 . Amounts are generally amortized from AOCI over the expected future lifetime of plan participants. Balance Sheet Position Pension Benefits Other Postretirement and Postemployment Benefits December 31, December 31, (in millions) 2017 2016 2017 2016 Current liabilities $ (32 ) $ (30 ) $ (121 ) $ (125 ) Noncurrent liabilities (6,920 ) (10,528 ) (2,517 ) (2,470 ) Total liabilities $ (6,952 ) $ (10,558 ) $ (2,638 ) $ (2,595 ) Net actuarial loss $ (8,495 ) $ (8,515 ) $ (651 ) $ (570 ) Prior service credit — — 56 82 Total accumulated other comprehensive loss, pre-tax $ (8,495 ) $ (8,515 ) $ (595 ) $ (488 ) Net Periodic Cost Pension Benefits Other Postretirement and Postemployment Benefits Year Ended December 31, Year Ended December 31, (in millions) 2017 2016 2015 2017 2016 2015 Service cost $ — $ — $ — $ 87 $ 68 $ 62 Interest cost 853 917 884 138 147 141 Expected return on plan assets (1,143 ) (902 ) (879 ) (69 ) (74 ) (81 ) Amortization of prior service credit — — — (26 ) (26 ) (26 ) Recognized net actuarial loss 262 233 232 32 24 24 Settlements 3 3 3 — — — Net periodic cost (1) $ (25 ) $ 251 $ 240 $ 162 $ 139 $ 120 (1) See Note 1 for discussion on ASU No. 2017-07, "Compensation - Retirement Benefits (Topic 715)." Assumptions We used the following actuarial assumptions to determine our benefit obligations and our net periodic cost for the periods presented: December 31, Benefit Obligations (1) 2017 2016 Weighted average discount rate 3.69 % 4.20 % Year Ended December 31, Net Periodic Cost (1) 2017 2016 2015 Weighted average discount rate - pension benefit 4.14 % 4.57 % 4.13 % Weighted average discount rate - other postretirement benefit 4.19 % 4.53 % 4.13 % Weighted average discount rate - other postemployment benefit 4.14 % 4.50 % 4.13 % Weighted average expected long-term rate of return on plan assets 8.96 % 8.94 % 8.94 % Assumed healthcare cost trend rate (2) 7.00 % 6.50 % 7.00 % (1) Future employee compensation levels do not impact our frozen defined benefit pension plans or other postretirement plans and impact only a small portion of our other postemployment liability. (2) Healthcare cost trend rate at December 31, 2017 is assumed to decline gradually to 5.00% by 2026 and remain unchanged thereafter. Healthcare Cost Trend Rate. Assumed healthcare cost trend rates have an effect on the amounts reported for the other postretirement benefit plans. A 1% change in the healthcare cost trend rate used in measuring the plan benefit obligation for these plans would have the following effects: (in millions) 1% Increase 1% (Decrease) Increase (decrease) in total service and interest cost $ 1 $ (1 ) Increase (decrease) in the accumulated plan benefit obligation 9 (30 ) Expected Long-Term Rate of Return. Our expected long-term rate of return on plan assets is based primarily on plan-specific investment studies using historical market return and volatility data. Modest excess return expectations versus some public market indices are incorporated into the return projections based on the actively managed structure of the investment programs and their records of achieving such returns historically. We also expect to receive a premium for investing in less liquid private markets. We review our rate of return on plan assets assumptions annually. Our annual investment performance for one particular year does not, by itself, significantly influence our evaluation. The investment strategy for our defined benefit pension plan assets is to earn a long-term return that meets or exceeds our annualized return target while taking an acceptable level of risk and maintaining sufficient liquidity to pay current benefits and other cash obligations of the plan. This is achieved by investing in a globally diversified mix of public and private equity, fixed income, real assets, hedge funds and other assets and instruments. Our expected long-term rate of return on assets for net periodic pension benefit cost for the year ended December 31, 2017 was 8.96% . Life Expectancy . Changes in life expectancy may significantly change our benefit obligations and future expense. We use the Society of Actuaries ("SOA") published mortality data, other publicly available information and our own perspective of future longevity to develop our best estimate of life expectancy. The SOA publishes annual updated mortality tables for U.S. plans and updated improvement scale. Each year we consider updates by the SOA in setting our mortality assumptions for purposes of measuring pension and other postretirement and postemployment benefit obligations. Benefit Payments Benefit payments in the table below are based on the same assumptions used to measure the related benefit obligations. Actual benefit payments may vary significantly from these estimates. Benefits earned under our pension plans and certain postemployment benefit plans are expected to be paid from funded benefit plan trusts, while our other postretirement benefits are funded from current assets. The following table summarizes the benefit payments that are scheduled to be paid in the years ending December 31: (in millions) Pension Benefits Other Postretirement and Postemployment Benefits 2018 $ 1,170 $ 284 2019 1,177 291 2020 1,201 296 2021 1,220 297 2022 1,238 296 2023-2027 6,351 1,417 Plan Assets We have adopted and implemented investment policies for our defined benefit pension plans that incorporate strategic asset allocation mixes intended to best meet the plans' long-term obligations, while maintaining an appropriate level of risk and liquidity. These asset portfolios employ a diversified mix of investments, which are reviewed periodically. Active management strategies are utilized where feasible in an effort to realize investment returns in excess of market indices. Derivatives in the plans are primarily used to manage risk and gain asset class exposure while still maintaining liquidity. As part of these strategies, the plans are required to hold cash collateral associated with certain derivatives. Our investment strategies target a mix of 40 - 50% growth-seeking assets, 20 - 30% income-generating assets and 25 - 30% risk-diversifying assets. Risk diversifying assets include hedged mandates implementing long-short, market neutral and relative value strategies that invest primarily in publicly-traded equity, fixed income, foreign currency and commodity securities and are used to improve the impact of active management on the plans. Benefit Plan Assets Measured at Fair Value on a Recurring Basis Benefit Plan Assets. Benefit plan assets relate to our defined benefit pension plans and certain of our postemployment benefit plans. These investments are presented net of the related benefit obligation in pension, postretirement and related benefits on the Consolidated Balance Sheets. See Note 2 of the Notes to the Consolidated Financial Statements for a description of the levels within the fair value hierarchy and associated valuation techniques used to measure fair value. The following table shows our benefit plan assets by asset class. December 31, 2017 December 31, 2016 Valuation Technique (in millions) Level 1 Level 2 Total Level 1 Level 2 Total Equities and equity-related instruments $ 2,033 $ 13 $ 2,046 $ 2,021 $ 14 $ 2,035 (a) Delta common stock 801 — 801 386 — 386 (a) Cash equivalents 735 697 1,432 228 1,240 1,468 (a) Fixed income and fixed income-related instruments 17 3,648 3,665 8 1,190 1,198 (a)(b) Benefit plan assets $ 3,586 $ 4,358 $ 7,944 $ 2,643 $ 2,444 $ 5,087 Investments measured at net asset value ("NAV") (1) $ 7,378 $ 5,724 Total benefit plan assets $ 15,322 $ 10,811 (1) Investments that were measured at NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. Equities and Equity-Related Instruments. Investments include common stock and equity-related instruments. Common stock is valued at the closing price reported on the active market on which the individual securities are traded. Equity-related instruments include investments in securities traded on exchanges, including listed futures and options, which are valued at the last reported sale prices on the last business day of the year or, if not available, the last reported bid prices. Over-the-counter securities are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes. Delta Common Stock. In each of 2017 and 2016, we contributed $350 million of Delta common stock as a portion of the employer contribution to certain of its defined benefit pension plans. The Delta common stock investment is managed by an independent fiduciary. Cash Equivalents. These investments primarily consist of high-quality, short-term obligations that are a part of institutional money market mutual funds that are calculated using current market quotations or an appropriate substitute that reflects current market conditions. Fixed Income and Fixed Income-Related Instruments. Investments include corporate bonds, government bonds, collateralized mortgage obligations and other asset-backed securities. These investments are generally valued at the bid price or the average of the bid and ask price. Prices are based on pricing models, quoted prices of securities with similar characteristics, or broker quotes. Fixed income-related instruments include investments in securities traded on exchanges, including listed futures and options, which are valued at the last reported sale prices on the last business day of the year, or if not available, the last reported bid prices. Over-the-counter securities are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes. The following table summarizes investments measured at fair value based on NAV per share as a practical expedient: December 31, 2017 December 31, 2016 (in millions) Fair Value Redemption Frequency Redemption Notice Period Unfunded Commitments Fair Value Redemption Frequency Redemption Notice Period Unfunded Commitments Hedge funds and hedge fund-related strategies $ 4,768 (5) 2-120 Days $ — $ 3,308 (5) 4-120 Days $ — Commingled funds, private equity and private equity-related instruments 1,375 (1) (3) (4) 10-30 Days — 1,214 (1) (3) (4) 15-30 Days 525 Fixed income and fixed income-related instruments 311 (2) 3-15 Days — 270 (2) 5 Days — Real assets 924 (3) (4) N/A 94 698 (3) (4) N/A 529 Other — (1) 30 Days — 234 (2) 2 Days — Total investments measured at NAV $ 7,378 $ 94 $ 5,724 $ 1,054 (1) Monthly (2) Semi-monthly (3) Semi-annually (4) Annually (5) Various. Includes funds with weekly, monthly, semi-monthly, quarterly and custom redemption frequencies as well as funds with a redemption window following the anniversary of the initial investment. Hedge Funds and Hedge Fund-Related Strategies. These investments are primarily made through shares of limited partnerships or similar structures for which a liquid secondary market does not exist. These funds are typically valued monthly by third-party administrators that have been appointed by the funds' general partners. Commingled Funds, Private Equity and Private Equity-Related Instruments. Investments include commingled funds invested in common stock, as well as private equity and private equity-related instruments. Commingled funds are based on quoted market prices of the underlying assets owned by the fund. Private equity and private equity-related strategies are valued based on valuation models where one or more of the significant inputs into the model cannot be observed and which require the development of assumptions. Fixed Income and Fixed Income-Related Instruments. Investments include commingled funds invested in debt obligations. Commingled funds are based on quoted market prices of the underlying assets owned by the fund. Real Assets. These investments include real estate, energy, timberland, agriculture and infrastructure. The valuation of real assets requires significant judgment due to the absence of quoted market prices as well as the inherent lack of liquidity and the long-term nature of these assets. Investments are valued based on valuation models where one or more of the significant inputs into the model cannot be observed and which require the development of assumptions. Other. Primarily includes globally-diversified, risk-managed commingled funds consisting mainly of equity, fixed income and commodity exposures. On an annual basis we assess the potential for adjustments to the fair value of all investments. Certain of our investments are valued using NAV as a practical expedient due to the lag in the availability of data. This primarily applies to private equity, private equity-related strategies and real assets. We solicit valuation updates from the investment mangers and use their information and corroborating data from public markets to determine any needed fair value adjustments. Other We also sponsor defined benefit pension plans for eligible employees in certain foreign countries. These plans did not have a material impact on our Consolidated Financial Statements in any period presented. Profit Sharing Program Our broad-based employee profit sharing program provides that, for each year in which we have an annual pre-tax profit, as defined by the terms of the program, we will pay a specified portion of that profit to employees. In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items. For the years ended December 31, 2017 , 2016 and 2015 , we recorded expenses of $1.1 billion , $1.1 billion and $1.5 billion under the profit sharing program, respectively. Effective October 1, 2017, we aligned our profit sharing plans under a single formula. Under this formula, our profit sharing program pays 10% to all eligible employees for the first $2.5 billion of annual profit and 20% of annual profit above $2.5 billion. Prior to that time, the profit sharing program for pilots used this formula but for 2016 and the first nine months of 2017, the profit sharing program for merit, ground and flight attendant employees paid 10% of annual profit (as defined by the terms of the program) and, if we exceeded our prior-year results, the program paid 20% of the year-over-year increase in profit to eligible employees. For years prior to 2016, the profit sharing program for merit, ground and flight attendant employees paid according to the current formula. Going forward, all eligible employees will be paid profit sharing under the current formula. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Aircraft Purchase and Lease Commitments Our future aircraft purchase commitments totaled approximately $18.3 billion at December 31, 2017 : (in millions) Total 2018 $ 3,570 2019 3,370 2020 3,270 2021 3,880 2022 2,450 Thereafter 1,740 Total $ 18,280 Our future aircraft purchase commitments included the following aircraft at December 31, 2017 : Aircraft Type Purchase Commitments A321-200 93 A321-200neo 100 A330-900neo 25 A350-900 19 B-737-900ER 41 CS100 75 Total 353 During 2017, we entered into agreements with Airbus to place an expanded A321-200 order for 45 firm additional aircraft and to defer 10 of our A350-900 aircraft deliveries set for 2019-2020 by two to three years. We also entered into an agreement with Airbus to order 100 A321-200neo aircraft to start delivery in 2020 with the option to purchase an additional 100 A321-200neo aircraft. Contract Carrier Agreements We have contract carrier agreements with regional carriers expiring from 2018 to 2027 . Capacity Purchase Agreements . Most of our contract carriers operate for us under capacity purchase agreements. Under these agreements, the contract carriers operate some or all of their aircraft using our flight designator codes, and we control the scheduling, pricing, reservations, ticketing and seat inventories of those aircraft and retain the revenues associated with those flights. We pay those airlines an amount, as defined in the applicable agreement, which is based on a determination of their cost of operating those flights and other factors intended to approximate market rates for those services. The following table shows our minimum fixed obligations under our existing capacity purchase agreements with third-party regional carriers. The obligations set forth in the table contemplate minimum levels of flying by the contract carriers under the respective agreements and also reflect assumptions regarding certain costs associated with the minimum levels of flying such as the cost of fuel, labor, maintenance, insurance, catering, property tax and landing fees. Accordingly, our actual payments under these agreements could differ materially from the minimum fixed obligations set forth in the table below. (in millions) Amount (1) 2018 $ 1,772 2019 1,603 2020 1,320 2021 793 2022 723 Thereafter 1,975 Total $ 8,186 (1) These amounts exclude contract carrier payments accounted for as operating leases of aircraft, which are described in Note 7 . Revenue Proration Agreement . As of December 31, 2017 , a portion of our contract carrier agreement with SkyWest Airlines, Inc. is structured as a revenue proration agreement. This revenue proration agreement establishes a fixed dollar or percentage division of revenues for tickets sold to passengers traveling on connecting flight itineraries. 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 involved cannot be predicted with certainty, we believe that the resolution of current matters will not have a material adverse effect on our Consolidated Financial Statements. Credit Card Processing Agreements Our VISA/MasterCard and American Express credit card processing agreements provide that no cash reserve ("Reserve") is required, and no withholding of payment related to receivables collected will occur, except in certain circumstances, including when we do not maintain a required level of liquidity as outlined in the merchant processing agreements. In circumstances in which the credit card processor can establish a Reserve or withhold payments, the amount of the Reserve or payments that may be withheld would be equal to the potential liability of the credit card processor for tickets purchased with VISA/MasterCard or American Express credit cards, as applicable, that had not yet been used for travel. We did not have a Reserve or an amount withheld as of December 31, 2017 or 2016 . 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. 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 law 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 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. 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 December 31, 2017 , we had approximately 87,000 full-time equivalent employees. Approximately 19% of these employees were represented by unions. The following table shows our domestic airline employee groups that are represented by unions. Employee Group Approximate Number of Active Employees Represented Union Date on which Collective Bargaining Agreement Becomes Amendable Delta Pilots 13,234 ALPA December 31, 2019 Delta Flight Superintendents (Dispatchers) 420 PAFCA March 31, 2018 Endeavor Air Pilots 1,805 ALPA January 1, 2024 Endeavor Air Flight Attendants 1,160 AFA December 31, 2018 Endeavor Air Dispatchers 55 PAFCA December 31, 2018 In addition, 192 refinery employees of Monroe are represented by the United Steel Workers under an agreement that expires on February 28, 2019. This agreement is governed by the National Labor Relations Act , which generally allows either party to engage in self help upon the expiration of the agreement. Other |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income Tax Provision Our income tax provision consisted of the following: Year Ended December 31, (in millions) 2017 2016 2015 Current tax (provision) benefit: Federal $ (4 ) $ — $ (23 ) State and local 5 (28 ) (25 ) International (54 ) (12 ) (2 ) Deferred tax provision: Federal (1,911 ) (2,080 ) (2,409 ) State and local (160 ) (143 ) (172 ) Income tax provision $ (2,124 ) $ (2,263 ) $ (2,631 ) The following table presents the principal reasons for the difference between the effective tax rate and the U.S. federal statutory income tax rate: Year Ended December 31, 2017 2016 2015 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 1.8 1.8 1.8 Decrease in valuation allowance — — (0.2 ) Foreign tax rate differential (2.2 ) (2.0 ) — Tax Cuts and Jobs Act adjustment 2.6 — — Other — (0.7 ) 0.2 Effective income tax rate 37.2 % 34.1 % 36.8 % Following the enactment of the Tax Cuts and Jobs Act of 2017, we recorded a provisional tax expense estimate of $150 million resulting in a 2.6% increase in our effective tax rate. The provisional estimate includes recognition of tax expense related to certain of our undistributed foreign earnings and tax expense to decrease our federal net deferred tax asset to a 21% statutory tax rate. We are evaluating our share of undistributed earnings from certain of our foreign investments and will reflect the impact, if any, in 2018 when such impact is finalized. As a result of the Tax Cuts and Jobs Act of 2017, we assessed tax on $732 million of foreign earnings which would have otherwise been indefinitely reinvested outside the U.S. At December 31, 2016, we had $379 million of undistributed foreign earnings. Deferred Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. The following table shows significant components of our deferred tax assets and liabilities: December 31, (in millions) 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 1,440 $ 2,485 Pension, postretirement and other benefits 2,545 5,259 Alternative minimum tax credit carryforward 379 379 Deferred revenue 1,024 1,544 Other 746 1,075 Valuation allowance (19 ) (40 ) Total deferred tax assets $ 6,115 $ 10,702 Deferred tax liabilities: Depreciation $ 3,936 $ 5,701 Intangible assets 1,070 1,691 Other 174 246 Total deferred tax liabilities $ 5,180 $ 7,638 Net deferred tax assets $ 935 $ 3,064 At December 31, 2017 , we had $379 million of federal alternative minimum tax credit carryforwards. As a result of the Tax Cuts and Jobs Act of 2017, this credit becomes refundable to us if not used by 2021. We have $5.1 billion of federal pre-tax net operating loss carryforwards, which will not begin to expire until 2027 . Income Tax Allocation We consider all income sources, including other comprehensive income, in determining the amount of tax benefit allocated to continuing operations (the "Income Tax Allocation"). At the end of 2017, the Tax Cut and Jobs Act of 2017 reduced the statutory tax rate in the U.S. from 35% to 21% . GAAP requires that the tax expense related to tax law changes be recognized in current earnings, even when a portion of the related deferred tax asset originated through amounts recognized in AOCI. As a result, $700 million of income tax expense remains in AOCI, primarily related to pension obligations, and will not be recognized in net income until the pension obligations are fully extinguished, which will not occur for approximately 25 years. Other |
Equity and Equity Compensation
Equity and Equity Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity and Equity Compensation | EQUITY AND EQUITY COMPENSATION Equity We are authorized to issue 2.0 billion shares of capital stock, of which up to 1.5 billion may be shares of common stock, par value $0.0001 per share, and up to 500 million may be shares of preferred stock. Preferred Stock. We may issue preferred stock in one or more series. The Board of Directors is authorized (1) to fix the descriptions, powers (including voting powers), preferences, rights, qualifications, limitations and restrictions with respect to any series of preferred stock and (2) to specify the number of shares of any series of preferred stock. We have not issued any preferred stock. Treasury Stock. We generally withhold shares of Delta common stock to cover employees' portion of required tax withholdings when employee equity awards are issued or vest. These shares are valued at cost, which equals the market price of the common stock on the date of issuance or vesting. The weighted average cost of shares held in treasury was $21.19 and $19.40 as of December 31, 2017 and 2016 , respectively. Equity Compensation Our broad-based equity and cash compensation plan provides for grants of restricted stock, stock options, performance awards, including cash incentive awards and other equity-based awards (the "Plan"). Shares of common stock issued under the Plan may be made available from authorized, but unissued, common stock or common stock we acquire. If any shares of our common stock are covered by an award that expires, is canceled, forfeited or otherwise terminates without delivery of shares (including shares surrendered or withheld for payment of taxes related to an award), such shares will again be available for issuance under the Plan except for (i) any shares tendered in payment of an option, (ii) shares withheld to satisfy any tax withholding obligation with respect to the exercise of an option or stock appreciation right ("SAR") or (iii) shares covered by a stock-settled SAR or other awards that were not issued upon the settlement of the award. The Plan authorizes the issuance of up to 163 million shares of common stock. As of December 31, 2017 , there were 30 million shares available for future grants. We make long-term incentive awards annually to eligible employees under the Plan. Generally, awards vest over time, subject to the employee's continued employment. Equity compensation expense for these awards is recognized in salaries and related costs over the employee's requisite service period (generally, the vesting period of the award) and totaled $108 million , $105 million and $76 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. We record expense on a straight-line basis for awards with installment vesting. As of December 31, 2017 , unrecognized costs related to unvested shares and stock options totaled $82 million . We expect substantially all unvested awards to vest and recognize any forfeitures as they occur. Restricted Stock . Restricted stock is common stock that may not be sold or otherwise transferred for a period of time and is subject to forfeiture in certain circumstances. The fair value of restricted stock awards is based on the closing price of the common stock on the grant date. As of December 31, 2017 , there were 2.6 million unvested restricted stock awards. Stock Options. Stock options are granted with an exercise price equal to the closing price of Delta common stock on the grant date and generally have a 10-year term. We determine the fair value of stock options at the grant date using an option pricing model. As of December 31, 2017 , there were 1.9 million outstanding stock option awards with a weighted average exercise price of $38.59 , and 771 thousand were exercisable. Performance Awards. Performance awards are long-term incentive opportunities, which are payable in common stock and/or cash, and are generally contingent upon our achieving certain financial goals. Other. During 2017 and 2016, we recognized $21 million and $33 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table shows the components of accumulated other comprehensive loss: (in millions) Pension and Other Benefits Liabilities (2) Derivative Contracts Investments Total Balance at January 1, 2015 (net of tax effect of $1,279) $ (7,517 ) $ 222 $ (16 ) $ (7,311 ) Changes in value (net of tax effect of $41) 10 43 (45 ) 8 Reclassification into earnings (net of tax effect of $16) (1) 153 (125 ) — 28 Balance at December 31, 2015 (net of tax effect of $1,222) (7,354 ) 140 (61 ) (7,275 ) Changes in value (net of tax effect of $293) (482 ) (19 ) 42 (459 ) Reclassification into earnings (net of tax effect of $57) (1) 122 (24 ) — 98 Balance at December 31, 2016 (net of tax effect of $1,458) (7,714 ) 97 (19 ) (7,636 ) Changes in value (net of tax effect of $32) (264 ) (21 ) 148 (137 ) Reclassification into earnings (net of tax effect of $90) (1) 166 (6 ) (8 ) 152 Balance at December 31, 2017 (net of tax effect of $1,400) $ (7,812 ) $ 70 $ 121 $ (7,621 ) (1) Amounts reclassified from AOCI for pension and other benefits liabilities and for derivative contracts designated as foreign currency cash flow hedges are recorded in salaries and related costs and in passenger revenue, respectively, in the Consolidated Statements of Operations. The reclassification into earnings for investments relates to our investment in Grupo Aeroméxico and the related conversion to accounting under the equity method. The reclassification of the unrealized gain was recorded to non-operating expense in our Consolidates Statements of Operations. (2) Includes $700 million |
Segments and Geographic Informa
Segments and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | SEGMENTS AND GEOGRAPHIC INFORMATION Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker and is used in resource allocation and performance assessments. Our chief operating decision maker is considered to be our executive leadership team. Our executive leadership team regularly reviews discrete information for our two operating segments, which are determined by the products and services provided: our airline segment and our refinery segment. Airline Segment Our airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the U.S. and around the world and other ancillary airline services. This allows us to benefit from an integrated revenue pricing and route network. Our flight equipment forms one fleet, which is deployed through a single route scheduling system. When making resource allocation decisions, our chief operating decision maker evaluates flight profitability data, which considers aircraft type and route economics, but gives no weight to the financial impact of the resource allocation decision on an individual carrier basis. Our objective in making resource allocation decisions is to optimize our consolidated financial results. Refinery Segment In June 2012 , our wholly owned subsidiaries, Monroe Energy, LLC, and MIPC, LLC (collectively, "Monroe"), acquired the Trainer oil refinery and related assets located near Philadelphia, Pennsylvania, as part of our strategy to mitigate the cost of the refining margin reflected in the price of jet fuel. The acquisition included pipelines and terminal assets that allow the refinery to supply jet fuel to our airline operations throughout the Northeastern U.S., including our New York hubs at LaGuardia and JFK. We accounted for the refinery acquisition as a business combination. Our refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel as well as 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 years ended December 31, 2017 , 2016 and 2015 was $3.2 billion , $2.7 billion and $3.1 billion , respectively. Segment Reporting Segment results are prepared based on our internal accounting methods described below, with reconciliations to consolidated amounts in accordance with GAAP. Our segments are not designed to measure operating income or loss directly related to the products and services included in each segment on a stand-alone basis. (in millions) Airline Refinery Intersegment Sales/Other Consolidated Year Ended December 31, 2017 Operating revenue: $ 40,742 $ 5,039 $ 41,244 Sales to airline segment $ (886 ) (1) Exchanged products (3,240 ) (2) Sales of refined products (411 ) (3) Operating income 6,004 110 6,114 Interest expense (income), net 403 (7 ) 396 Depreciation and amortization 2,188 47 2,235 Total assets, end of period 51,165 2,127 53,292 Capital expenditures 3,743 148 3,891 Year Ended December 31, 2016 Operating revenue: $ 39,406 $ 3,843 $ 39,639 Sales to airline segment $ (695 ) (1) Exchanged products (2,658 ) (2) Sales of refined products (257 ) (3) Operating income (loss) (4) 7,077 (125 ) 6,952 Interest expense, net 386 2 388 Depreciation and amortization 1,862 40 1,902 Total assets, end of period 49,930 1,331 51,261 Capital expenditures 3,270 121 3,391 Year Ended December 31, 2015 Operating revenue: $ 40,398 $ 4,741 $ 40,704 Sales to airline segment $ (990 ) (1) Exchanged products (3,108 ) (2) Sales of refined products (337 ) (3) Operating income (4) 7,512 290 7,802 Interest expense, net 481 — 481 Depreciation and amortization 1,805 30 1,835 Total assets, end of period 51,785 1,349 53,134 Capital expenditures 2,853 92 2,945 (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 exchange agreements, as discussed above, determined on a market price basis. (3) 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 and refinery segments with respect to the refinery's inventory price risk. Geographic Information Operating revenue for the airline segment is recognized in a specific geographic region based on the origin, flight path and destination of each flight segment. The majority of the revenues of the refinery, consisting of fuel sales to the airline, have been eliminated in the Consolidated Financial Statements. The remaining operating revenue for the refinery segment is included in the domestic region. Our operating revenue by geographic region (as defined by the U.S. Department of Transportation) is summarized in the following table: Year Ended December 31, (in millions) 2017 2016 2015 Domestic $ 29,556 $ 28,108 $ 27,884 Atlantic 6,044 5,919 6,505 Pacific 2,730 2,939 3,503 Latin America 2,914 2,673 2,812 Total $ 41,244 $ 39,639 $ 40,704 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING The following table shows the balances and activity for restructuring charges: (in millions) 2017 2016 2015 Liability at beginning of period $ 333 $ 467 $ 504 Payments (103 ) (144 ) (127 ) Additional expenses and other 7 10 90 Liability at end of period $ 237 $ 333 $ 467 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE We calculate basic earnings per share by dividing the 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 our computation of basic and diluted earnings per share: Year Ended December 31, (in millions, except per share data) 2017 2016 2015 Net income $ 3,577 $ 4,373 $ 4,526 Basic weighted average shares outstanding 720 751 797 Dilutive effect of share-based awards 3 4 7 Diluted weighted average shares outstanding 723 755 804 Basic earnings per share $ 4.97 $ 5.82 $ 5.68 Diluted earnings per share $ 4.95 $ 5.79 $ 5.63 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) The following table summarizes our unaudited results of operations on a quarterly basis. The quarterly earnings per share amounts for a year will not add to the earnings per share for that year due to the weighting of shares used in calculating per share data. Three Months Ended, (in millions, except per share data) March 31 June 30 September 30 December 31 2017 Operating revenue $ 9,148 $ 10,791 $ 11,060 $ 10,245 Operating income 1,053 2,028 1,839 1,193 Net income 603 1,224 1,178 572 Basic earnings per share $ 0.83 $ 1.68 $ 1.64 $ 0.81 Diluted earnings per share $ 0.82 $ 1.68 $ 1.64 $ 0.80 2016 Operating revenue $ 9,251 $ 10,447 $ 10,483 $ 9,458 Operating income 1,540 2,423 1,969 1,020 Net income 946 1,546 1,259 622 Basic earnings per share $ 1.22 $ 2.04 $ 1.70 $ 0.85 Diluted earnings per share $ 1.21 $ 2.03 $ 1.69 $ 0.84 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Our 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 U.S. ("GAAP"). We do not consolidate the financial statements of any company in which we have an ownership interest of 50% or less. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity. We have marketing alliances with other airlines to enhance our access to domestic and international markets. These arrangements may include codesharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location and other marketing agreements. We have received antitrust immunity for certain marketing arrangements, which enables us to offer a more integrated route network and develop common sales, marketing and discount programs for customers. Some of our marketing arrangements provide for the sharing of revenues and expenses. Revenues and expenses associated with collaborative arrangements are presented on a gross basis in the applicable line items on our Consolidated Statements of Operations. We reclassified certain prior period amounts to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. |
Use of Estimates | Use of Estimates |
Recent Accounting Standards | Recent Accounting Standards Revenue from Contracts with Customers. In 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." Under this ASU and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. We will adopt the standard effective January 1, 2018 using the full retrospective approach. While the adoption of the new standard will not have a significant effect on earnings, the classification of certain revenues that are currently classified in other revenue will be reclassified to passenger revenue. These include baggage fees, administrative charges and other travel-related fees, all of which will be deemed part of the single performance obligation of providing passenger transportation. These revenues, which are approximately $2 billion annually, will be reclassified from the current presentation in other revenue to passenger revenue after adoption. In addition, the adoption of the new standard increases the rate used to account for frequent flyer miles. We currently analyze our standalone sales of mileage credits to other airlines and customers to establish the accounting value for frequent flyer miles. Considering the guidance in the new standard, we will change our valuation of a mileage credit to an analysis of the award redemption value. The new valuation considers the value a passenger receives by redeeming miles rather than paying cash for an award ticket. This change increases our frequent flyer liability by approximately $2 billion . The mileage deferral and redemption rates are approximately the same; therefore, assuming stable volume, there would not be a significant change in revenue recognized from the program for a given period. The adoption of the new standard will also reduce our air traffic liability by approximately $500 million . This change primarily results from estimating the tickets that will expire unused and recognizing revenue at the scheduled flight date rather than when the unused tickets expire. Leases. In 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet and is effective for interim and annual reporting periods beginning after December 15, 2018. We have not completed our assessment, but the adoption of this standard will have a significant impact on our Consolidated Balance Sheets. However, we do not expect the adoption to have a significant impact on the recognition, measurement or presentation of lease expenses within the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. Information about our undiscounted future lease payments and the timing of those payments is in Note 7 , "Lease Obligations." We will adopt this standard effective January 1, 2019. Statement of Cash Flows. In 2016, the FASB issued ASU Nos. 2016-15 and 2016-18 related to the classification of certain cash receipts and cash payments and the presentation of restricted cash within an entity's statement of cash flows, respectively. We will adopt the standards effective January 1, 2018. Financial Instruments. In 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10)." This standard makes several changes, including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. We will adopt the standard effective January 1, 2018. This standard does not apply to our investments in Grupo Aeroméxico and Virgin Atlantic, which are accounted for under the equity method. Our investments in GOL Linhas Aéreas Inteligentes, the parent company of VRG Linhas Aéreas (operating as GOL) and China Eastern are currently accounted for as available-for-sale with changes in fair value recognized in other comprehensive income. At the time of adoption, the balance in accumulated other comprehensive income/(loss) ("AOCI") related to equity investments will be reclassified to retained earnings. As of December 31, 2017, a net unrealized gain of $162 million related to these investments was recorded in AOCI on our Consolidated Balance Sheet. Our investment in Air France-KLM is currently accounted for at cost as our investment agreement restricts the sale or transfer of these shares for five years. Despite the restriction, upon adoption of ASU No. 2016-01, this investment will be accounted for at fair value with changes in fair value recognized in net income. Retirement Benefits. In 2017, the FASB issued ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715)." This standard requires an entity to report the service cost component in the same line item as other compensation costs. The other components of net (benefit) cost will be required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. In 2017, we recorded $50 million of non-service costs that will be reclassified to non-operating expense upon adoption. This standard is effective for interim and annual reporting periods beginning after December 15, 2017. We will adopt the standard effective January 1, 2018. Comprehensive Income . In February 2018, the FASB issued ASU No. 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220)." This standard provides financial statement preparers with an option to reclassify stranded tax effects within AOCI from retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The adoption of the standard may impact tax amounts stranded in AOCI related to our pension plans. See Note 11 of the Notes to the Consolidated Financial Statements for more information. |
Cash and Cash Equivalents | Short-term, highly liquid investments with maturities of three months or less when purchased are classified as cash and cash equivalents. |
Short-Term Investments | Investments with maturities of greater than three months, but not in excess of one year, when purchased are classified as short-term investments. 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. All short-term investments are classified as either available-for-sale or held-to-maturity, and realized gains and losses are recorded using the specific identification method. |
Accounts Receivable | Accounts Receivable Accounts receivable primarily consist of amounts due from credit card companies from the sale of passenger airline tickets, customers of our aircraft maintenance and cargo transportation services and other companies for the purchase of mileage credits under our frequent flyer program (the "SkyMiles program"). We provide an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical chargebacks, write-offs, bankruptcies and other specific analyses. Bad debt expense was not material in any period presented. |
Inventories | Inventories Spare Parts. Inventories of expendable parts related to flight equipment, which cannot be economically repaired, reconditioned or reused after removal from the aircraft, are carried at moving average cost and charged to operations as consumed. An allowance for obsolescence is provided over the remaining useful life of the related fleet. We also provide allowances for parts identified as excess or obsolete to reduce the carrying costs to the lower of cost or net realizable value. These parts are assumed to have an estimated residual value of 5% of the original cost. Refinery. |
Accounting for Refinery Related Buy/Sell Agreements | Accounting for Refinery Related Buy/Sell Agreements |
Derivatives | Derivatives Changes in 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 may enter into derivative contracts and adjust our derivative portfolio as market conditions change. We recognize derivative contracts at fair value on our Consolidated Balance Sheets. Not Designated as Accounting Hedges. We do not designate our fuel derivative contracts as accounting hedges. We recorded changes in the fair value of our fuel hedges in aircraft fuel and related taxes. These changes in fair value include settled gains and losses as well as mark-to-market adjustments ("MTM adjustments"). MTM adjustments are defined as fair value changes recorded in periods other than the settlement period. Such fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period. Designated as Cash Flow Hedges. For derivative contracts designated as cash flow hedges (interest rate contracts and foreign currency exchange contracts), the effective portion of the gain or loss on the derivative is reported as a component of AOCI and reclassified into earnings in the same period in which the hedged transaction affects earnings. The effective portion of the derivative represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. To the extent the change in the fair value of the hedge does not perfectly offset the change in the fair value of the hedged item, the ineffective portion of the hedge is immediately recognized in non-operating expense. Designated as Fair Value Hedges. For derivative contracts designated as fair value hedges (interest rate contracts), the gain or loss on the derivative is reported in earnings and an equivalent amount is reflected as a change in the carrying value of long-term debt and capital leases, with an offsetting loss or gain recognized in current earnings. We include the gain or loss on the hedged item in the same account as the offsetting loss or gain on the related derivative contract, resulting in no impact to our Consolidated Statements of Operations. The following table summarizes the risk each type of derivative contract is hedging and the classification of related gains and losses on our Consolidated Statements of Operations: Derivative Type Hedged Risk Classification of Gains and Losses Fuel hedge contracts Fluctuations in fuel prices Aircraft fuel and related taxes Interest rate contracts Increases in interest rates Interest expense, net Foreign currency exchange contracts Fluctuations in foreign currency exchange rates Passenger revenue The following table summarizes the accounting treatment of our derivative contracts: Impact of Unrealized Gains and Losses Accounting Designation Effective Portion Ineffective Portion Not designated as hedges Change in fair value of hedge is recorded in earnings Designated as cash flow hedges Market adjustments are recorded in AOCI Excess, if any, over effective portion of hedge is recorded in non-operating expense Designated as fair value hedges Market adjustments are recorded in long-term debt and capital leases Excess, if any, over effective portion of hedge is recorded in non-operating expense We perform, at least quarterly, an assessment of the effectiveness of our derivative contracts designated as hedges, including assessing the possibility of counterparty default. If we determine that a derivative is no longer expected to be highly effective, we discontinue hedge accounting prospectively and recognize subsequent changes in the fair value of the hedge in earnings. We believe our derivative contracts that continue to be designated as hedges, consisting of interest rate and foreign currency exchange contracts, will continue to be highly effective in offsetting changes in fair value or cash flow, respectively, attributable to the hedged risk. Cash flows associated with purchasing and settling hedge contracts generally are classified as operating cash flows. However, if a hedge contract includes a significant financing element at inception, cash flows associated with the hedge contract are recorded as financing cash flows. Hedge Margin. In accordance with our fuel, interest rate and foreign currency hedge contracts, we may require counterparties to fund the margin associated with our gain position and/or counterparties may require us to fund the margin associated with our loss position on these contracts. The amount of the margin, if any, is periodically adjusted based on the fair value of the hedge contracts. The margin requirements are intended to mitigate a party's exposure to the risk of counterparty default. We do not offset margin funded to counterparties or margin funded to us by counterparties against fair value amounts recorded for our hedge contracts. |
Long-Lived Assets | We capitalize certain internal and external costs incurred to develop and implement software and amortize those costs over an estimated useful life of three to 10 The following table summarizes our property and equipment: December 31, (in millions, except for estimated useful life) Estimated Useful Life 2017 2016 Flight equipment 20-32 years $ 30,688 $ 28,135 Ground property and equipment 3-40 years 7,665 6,581 Flight and ground equipment under capital leases Shorter of lease term or estimated useful life 1,147 1,056 Advance payments for equipment 1,160 1,059 Less: accumulated depreciation and amortization (1) (14,097 ) (12,456 ) Total property and equipment, net $ 26,563 $ 24,375 (1) Includes accumulated amortization for flight and ground equipment under capital leases in the amount of $668 million and $757 million at December 31, 2017 and 2016 , respectively. |
Impairment of Long-Lived Assets | We review flight equipment and other long-lived assets used in operations for impairment losses when events and circumstances indicate the assets may be impaired. Factors which could be indicators of impairment include, but are not limited to, (1) a decision to permanently remove flight equipment or other long-lived assets from operations, (2) significant changes in the estimated useful life, (3) significant changes in projected cash flows, (4) permanent and significant declines in fleet fair values and (5) changes to the regulatory environment. For long-lived assets held for sale, we discontinue depreciation and record impairment losses when the carrying amount of these assets is greater than the fair value less the cost to sell. To determine whether impairments exist for aircraft used in operations, we group assets at the fleet-type level (the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of capacity, passenger mile yield, fuel costs, labor costs and other relevant factors. If an impairment occurs, the impairment loss recognized is the amount by which the fleet's carrying amount exceeds its estimated fair value. We estimate aircraft fair values using published sources, appraisals and bids received from third parties, as available. |
Goodwill and Intangible Assets | Goodwill and Other Intangible Assets Our goodwill and identifiable intangible assets relate to the airline segment. We apply a fair value-based impairment test to the carrying value of goodwill and indefinite-lived intangible assets on an annual basis (as of October 1) and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. We assess the value of our goodwill and indefinite-lived assets under either a qualitative or quantitative approach. Under a qualitative approach, we consider various market factors, including the key assumptions listed below. We analyze these factors to determine if events and circumstances have affected the fair value of goodwill and indefinite-lived intangible assets. If we determine that it is more likely than not that the asset may be impaired, we use the quantitative approach to assess the asset's fair value and the amount of the impairment. Under a quantitative approach, we calculate the fair value of the asset using the key assumptions listed below. We value goodwill and indefinite-lived intangible assets primarily using market capitalization and income approach valuation techniques. These measurements include the following key assumptions: (1) forecasted revenues, expenses and cash flows, (2) terminal period revenue growth and cash flows, (3) an estimated weighted average cost of capital, (4) assumed discount rates depending on the asset and (5) a tax rate. These assumptions are consistent with those hypothetical market participants would use. Since we are required to make estimates and assumptions when evaluating goodwill and indefinite-lived intangible assets for impairment, actual transaction amounts may differ materially from these estimates. Changes in certain events and circumstances could result in impairment or a change from indefinite-lived to definite-lived. Factors which could cause impairment include, but are not limited to, (1) negative trends in our market capitalization, (2) reduced profitability resulting from lower passenger mile yields or higher input costs (primarily related to fuel and employees), (3) lower passenger demand as a result of weakened U.S. and global economies, (4) interruption to our operations due to a prolonged employee strike, terrorist attack or other reasons, (5) changes to the regulatory environment (e.g., diminished slot restrictions or additional Open Skies agreements), (6) competitive changes by other airlines and (7) strategic changes to our operations leading to diminished utilization of the intangible assets. Goodwill. When we evaluate goodwill for impairment using a quantitative approach, we estimate the fair value of the reporting unit by considering both market capitalization and projected discounted future cash flows (an income approach). If the reporting unit's fair value exceeds its carrying value, no further testing is required. If, however, the reporting unit's carrying value exceeds its fair value, we then determine the amount of the impairment charge, if any. We recognize an impairment charge if the carrying value of the reporting unit's goodwill exceeds its estimated fair value. Identifiable Intangible Assets. Indefinite-lived assets are not amortized and consist of routes, slots, the Delta tradename and assets related to SkyTeam and collaborative arrangements. Definite-lived intangible assets consist primarily of marketing and maintenance service agreements and are amortized on a straight-line basis or under the undiscounted cash flows method over the estimated economic life of the respective agreements. Costs incurred to renew or extend the term of an intangible asset are expensed as incurred. We assess our indefinite-lived assets under a qualitative or quantitative approach. We analyze market factors to determine if events and circumstances have affected the fair value of the indefinite-lived intangible assets. If we determine that it is more likely than not that the asset value may be impaired, we use the quantitative approach to assess the asset's fair value and the amount of the impairment. We perform the quantitative impairment test for indefinite-lived intangible assets by comparing the asset's fair value to its carrying value. Fair value is estimated based on (1) recent market transactions, where available, (2) the royalty method for the Delta tradename (which assumes hypothetical royalties generated from using our tradename) or (3) projected discounted future cash flows (an income approach). |
Goodwill | Goodwill. When we evaluate goodwill for impairment using a quantitative approach, we estimate the fair value of the reporting unit by considering both market capitalization and projected discounted future cash flows (an income approach). If the reporting unit's fair value exceeds its carrying value, no further testing is required. If, however, the reporting unit's carrying value exceeds its fair value, we then determine the amount of the impairment charge, if any. We recognize an impairment charge if the carrying value of the reporting unit's goodwill exceeds its estimated fair value. |
Identifiable Intangible Assets | Identifiable Intangible Assets. Indefinite-lived assets are not amortized and consist of routes, slots, the Delta tradename and assets related to SkyTeam and collaborative arrangements. Definite-lived intangible assets consist primarily of marketing and maintenance service agreements and are amortized on a straight-line basis or under the undiscounted cash flows method over the estimated economic life of the respective agreements. Costs incurred to renew or extend the term of an intangible asset are expensed as incurred. We assess our indefinite-lived assets under a qualitative or quantitative approach. We analyze market factors to determine if events and circumstances have affected the fair value of the indefinite-lived intangible assets. If we determine that it is more likely than not that the asset value may be impaired, we use the quantitative approach to assess the asset's fair value and the amount of the impairment. We perform the quantitative impairment test for indefinite-lived intangible assets by comparing the asset's fair value to its carrying value. Fair value is estimated based on (1) recent market transactions, where available, (2) the royalty method for the Delta tradename (which assumes hypothetical royalties generated from using our tradename) or (3) projected discounted future cash flows (an income approach). |
Income Taxes | Income Taxes We account for deferred income taxes under the liability method. We recognize deferred tax assets and liabilities based on the tax effects of temporary differences between the financial statement and tax basis of assets and liabilities, as measured by current enacted tax rates. Deferred tax assets and liabilities are recorded net as noncurrent deferred income taxes. A valuation allowance is recorded to reduce deferred tax assets when necessary. We periodically assess whether it is more likely than not that we will generate sufficient taxable income to realize our deferred income tax assets. We establish valuation allowances if it is not likely we will realize our deferred income tax assets. In making this determination, we consider all available positive and negative evidence and make certain assumptions. We consider, among other things, projected future taxable income, scheduled reversals of deferred tax liabilities, the overall business environment, our historical financial results and tax planning strategies. |
Fuel Card Obligation | Fuel Card Obligation We have a purchasing card with American Express for the purpose of buying jet fuel and crude oil. The card currently carries a maximum credit limit of $1.1 billion and must be paid monthly. At December 31, 2017 and December 31, 2016 , we had $1.1 billion and $431 million |
Retirement of Repurchased Shares | Retirement of Repurchased Shares We immediately retire shares repurchased pursuant to our share repurchase program. We allocate the share purchase price in excess of par value between APIC and retained earnings. |
Revenue Recognition | Passenger Tickets We record sales of passenger tickets in air traffic liability. Passenger revenue is recognized when we provide transportation or when the ticket expires unused, reducing the related air traffic liability. We periodically evaluate the estimated air traffic liability and record any adjustments in our Consolidated Statements of Operations. These adjustments relate primarily to refunds, exchanges, transactions with other airlines and other items for which final settlement occurs in periods subsequent to the sale of the related tickets at amounts other than the original sales price. Passenger Taxes and Fees We are required to charge certain taxes and fees on our passenger tickets, including U.S. federal transportation taxes, federal security charges, airport passenger facility charges and foreign arrival and departure taxes. These taxes and fees are assessments on the customer for which we act as a collection agent. Because we are not entitled to retain these taxes and fees, we do not include such amounts in passenger revenue. We record a liability when the amounts are collected and reduce the liability when payments are made to the applicable government agency or operating carrier. Frequent Flyer Program Our SkyMiles program offers incentives to travel on Delta. This program allows customers to earn mileage credits by flying on Delta, Delta Connection and airlines that participate in the SkyMiles program, as well as through participating companies such as credit card companies, hotels and car rental agencies. We sell mileage credits to non-airline businesses, customers and other airlines. Effective January 1, 2015, the SkyMiles program was modified from a model in which customers earn redeemable mileage credits based on distance traveled to a model based on ticket price. This award change did not affect the way we account for the program. The SkyMiles program includes two types of transactions that are considered revenue arrangements with multiple deliverables. As discussed below, these are (1) passenger ticket sales earning mileage credits and (2) the sale of mileage credits to participating companies with which we have marketing agreements. Mileage credits are a separate unit of accounting as they can be redeemed by customers in future periods for air travel on Delta and participating airlines, membership in our Sky Club and other program awards. Passenger Ticket Sales Earning Mileage Credits. Passenger ticket sales earning mileage credits under our SkyMiles program provide customers with (1) mileage credits earned and (2) air transportation. We value each deliverable on a standalone basis. Our estimate of the selling price of a mileage credit is based on an analysis of our sales of mileage credits to other airlines and customers, which is re-evaluated at least annually. We use established ticket prices to determine the estimated selling price of air transportation. We allocate the total amount collected from passenger ticket sales between the deliverables based on their relative selling prices. We defer revenue for the mileage credits related to passenger ticket sales when the credits are earned and recognize it as passenger revenue when miles are redeemed and services are provided. We record the air transportation portion of the passenger ticket sales in air traffic liability and recognize these amounts in passenger revenue when we provide transportation or when the ticket expires unused. Sale of Mileage Credits. Customers may earn mileage credits through participating companies such as credit card companies, hotels and car rental agencies with which we have marketing agreements to sell mileage credits. Our contracts to sell mileage credits under these marketing agreements have multiple deliverables, as defined below. Our most significant contract to sell mileage credits relates to our co-brand credit card relationship with American Express. Our agreements with American Express provide for joint marketing, grant certain benefits to Delta-American Express co-branded credit card holders ("Cardholders") and American Express Membership Rewards program participants and allow American Express to market using our customer database. Cardholders earn mileage credits for making purchases using co-branded cards, may check their first bag for free, are granted discounted access to Delta Sky Club lounges and receive other benefits while traveling on Delta. These benefits that we provide in the form of separate products and services under the SkyMiles agreements are referred to as "deliverables." Additionally, participants in the American Express Membership Rewards program may exchange their points for mileage credits under the SkyMiles program. As a result, we sell mileage credits at agreed-upon rates to American Express for provision to their customers under the co-brand credit card program and the Membership Rewards program. Our marketing agreements with American Express extend to 2022. We account for the agreements consistent with the accounting method that allocates the consideration received to the individual products and services delivered based on their relative selling prices. We determined our best estimate of the selling prices by considering discounted cash flow analysis using multiple inputs and assumptions, including: (1) the expected number of miles awarded and number of miles redeemed, (2) the rate at which we sell mileage credits to other airlines, (3) published rates on our website for baggage fees, discounted access to Delta Sky Club lounges and other benefits while traveling on Delta and (4) brand value. We recognize revenue as we deliver each sales element. We defer the travel deliverable (mileage credits) as part of frequent flyer deferred revenue and recognize passenger revenue as the mileage credits are used for travel. The revenue allocated to the remaining deliverables is recorded in other revenue. We recognize the revenue for these services as they are performed. Breakage. For mileage credits that we estimate are not likely to be redeemed ("breakage"), we recognize the associated value proportionally during the period in which the remaining mileage credits are expected to be redeemed. Management uses statistical models to estimate breakage based on historical redemption patterns. A change in assumptions as to the period over which mileage credits are expected to be redeemed, the actual redemption activity for mileage credits or the estimated fair value of mileage credits expected to be redeemed could have a material impact on our revenue in the year in which the change occurs and in future years. Regional Carriers Revenue Our regional carriers include both our contract carrier agreements with third-party regional carriers ("contract carriers") and Endeavor Air, Inc. ("Endeavor"), our wholly owned subsidiary. Our contract carrier agreements are structured as either (1) capacity purchase agreements where we purchase all or a portion of the contract carrier's capacity and are responsible for selling the seat inventory we purchase or (2) revenue proration agreements, which are based on a fixed dollar or percentage division of revenues for tickets sold to passengers traveling on connecting flight itineraries. We record revenue related to our contract carriers and Endeavor in regional carriers passenger revenue and the related expenses in regional carriers expense. Cargo Revenue Cargo revenue is recognized when we provide the transportation. Other Revenue |
Passenger Tickets | Passenger Tickets |
Frequent Flyer Program | Frequent Flyer Program Our SkyMiles program offers incentives to travel on Delta. This program allows customers to earn mileage credits by flying on Delta, Delta Connection and airlines that participate in the SkyMiles program, as well as through participating companies such as credit card companies, hotels and car rental agencies. We sell mileage credits to non-airline businesses, customers and other airlines. Effective January 1, 2015, the SkyMiles program was modified from a model in which customers earn redeemable mileage credits based on distance traveled to a model based on ticket price. This award change did not affect the way we account for the program. The SkyMiles program includes two types of transactions that are considered revenue arrangements with multiple deliverables. As discussed below, these are (1) passenger ticket sales earning mileage credits and (2) the sale of mileage credits to participating companies with which we have marketing agreements. Mileage credits are a separate unit of accounting as they can be redeemed by customers in future periods for air travel on Delta and participating airlines, membership in our Sky Club and other program awards. Passenger Ticket Sales Earning Mileage Credits. Passenger ticket sales earning mileage credits under our SkyMiles program provide customers with (1) mileage credits earned and (2) air transportation. We value each deliverable on a standalone basis. Our estimate of the selling price of a mileage credit is based on an analysis of our sales of mileage credits to other airlines and customers, which is re-evaluated at least annually. We use established ticket prices to determine the estimated selling price of air transportation. We allocate the total amount collected from passenger ticket sales between the deliverables based on their relative selling prices. We defer revenue for the mileage credits related to passenger ticket sales when the credits are earned and recognize it as passenger revenue when miles are redeemed and services are provided. We record the air transportation portion of the passenger ticket sales in air traffic liability and recognize these amounts in passenger revenue when we provide transportation or when the ticket expires unused. Sale of Mileage Credits. Customers may earn mileage credits through participating companies such as credit card companies, hotels and car rental agencies with which we have marketing agreements to sell mileage credits. Our contracts to sell mileage credits under these marketing agreements have multiple deliverables, as defined below. Our most significant contract to sell mileage credits relates to our co-brand credit card relationship with American Express. Our agreements with American Express provide for joint marketing, grant certain benefits to Delta-American Express co-branded credit card holders ("Cardholders") and American Express Membership Rewards program participants and allow American Express to market using our customer database. Cardholders earn mileage credits for making purchases using co-branded cards, may check their first bag for free, are granted discounted access to Delta Sky Club lounges and receive other benefits while traveling on Delta. These benefits that we provide in the form of separate products and services under the SkyMiles agreements are referred to as "deliverables." Additionally, participants in the American Express Membership Rewards program may exchange their points for mileage credits under the SkyMiles program. As a result, we sell mileage credits at agreed-upon rates to American Express for provision to their customers under the co-brand credit card program and the Membership Rewards program. Our marketing agreements with American Express extend to 2022. We account for the agreements consistent with the accounting method that allocates the consideration received to the individual products and services delivered based on their relative selling prices. We determined our best estimate of the selling prices by considering discounted cash flow analysis using multiple inputs and assumptions, including: (1) the expected number of miles awarded and number of miles redeemed, (2) the rate at which we sell mileage credits to other airlines, (3) published rates on our website for baggage fees, discounted access to Delta Sky Club lounges and other benefits while traveling on Delta and (4) brand value. We recognize revenue as we deliver each sales element. We defer the travel deliverable (mileage credits) as part of frequent flyer deferred revenue and recognize passenger revenue as the mileage credits are used for travel. The revenue allocated to the remaining deliverables is recorded in other revenue. We recognize the revenue for these services as they are performed. Breakage. |
Regional Carriers Revenue | Regional Carriers Revenue |
Cargo Revenue | Cargo Revenue |
Manufacturers' Credits | Manufacturers' Credits |
Maintenance Costs | Maintenance Costs |
Advertising Costs | Advertising Costs |
Commissions | Commissions |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of information related to derivative contracts | The following table summarizes the risk each type of derivative contract is hedging and the classification of related gains and losses on our Consolidated Statements of Operations: Derivative Type Hedged Risk Classification of Gains and Losses Fuel hedge contracts Fluctuations in fuel prices Aircraft fuel and related taxes Interest rate contracts Increases in interest rates Interest expense, net Foreign currency exchange contracts Fluctuations in foreign currency exchange rates Passenger revenue The following table summarizes the accounting treatment of our derivative contracts: Impact of Unrealized Gains and Losses Accounting Designation Effective Portion Ineffective Portion Not designated as hedges Change in fair value of hedge is recorded in earnings Designated as cash flow hedges Market adjustments are recorded in AOCI Excess, if any, over effective portion of hedge is recorded in non-operating expense Designated as fair value hedges Market adjustments are recorded in long-term debt and capital leases Excess, if any, over effective portion of hedge is recorded in non-operating expense |
Summary of property and equipment | The following table summarizes our property and equipment: December 31, (in millions, except for estimated useful life) Estimated Useful Life 2017 2016 Flight equipment 20-32 years $ 30,688 $ 28,135 Ground property and equipment 3-40 years 7,665 6,581 Flight and ground equipment under capital leases Shorter of lease term or estimated useful life 1,147 1,056 Advance payments for equipment 1,160 1,059 Less: accumulated depreciation and amortization (1) (14,097 ) (12,456 ) Total property and equipment, net $ 26,563 $ 24,375 (1) Includes accumulated amortization for flight and ground equipment under capital leases in the amount of $668 million and $757 million at December 31, 2017 and 2016 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets (liabilities) measured at fair value on a recurring basis | Assets (Liabilities) Measured at Fair Value on a Recurring Basis (1) December 31, 2017 Valuation Technique (in millions) Total Level 1 Level 2 Cash equivalents $ 1,357 $ 1,357 $ — (a) Short-term investments U.S. government and agency securities 93 84 9 (a) Asset- and mortgage-backed securities 173 — 173 (a) Corporate obligations 467 — 467 (a) Other fixed income securities 92 — 92 (a) Restricted cash equivalents and investments 38 38 — (a) Long-term investments 513 485 28 (a) Hedge derivatives, net Fuel hedge contracts (66 ) (43 ) (23 ) (a)(b) Foreign currency exchange contracts (17 ) — (17 ) (a) December 31, 2016 Valuation Technique (in millions) Total Level 1 Level 2 Cash equivalents $ 2,279 $ 2,279 $ — (a) Short-term investments U.S. government securities 112 86 26 (a) Asset- and mortgage-backed securities 68 — 68 (a) Corporate obligations 295 — 295 (a) Other fixed income securities 12 — 12 (a) Restricted cash equivalents and investments 61 61 — (a) Long-term investments 139 115 24 (a) Hedge derivatives, net Fuel hedge contracts (324 ) (26 ) (298 ) (a)(b) Foreign currency exchange contracts 27 — 27 (a) (1) See Note 9 , "Employee Benefit Plans," for fair value of benefit plan assets. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of maturities for short-term investments | The estimated fair values of short-term investments, which approximate cost at December 31, 2017 , 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. (in millions) Available- For-Sale Due in one year or less $ 323 Due after one year through three years 465 Due after three years through five years 19 Due after five years 18 Total $ 825 |
Derivatives and Risk Manageme30
Derivatives and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of hedge positions | Hedge Position as of December 31, 2017 (in millions) Volume Final Maturity Date Hedge Derivatives Asset Other Noncurrent Assets Hedge Derivatives Liability Other Noncurrent Liabilities Hedge Derivatives, net Designated as hedges Foreign currency exchange contracts 23,512 Japanese yen November 2019 1 1 (13 ) (6 ) (17 ) 490 Canadian dollars May 2020 Not designated as hedges Fuel hedge contracts 249 gallons - crude oil and refined products May 2019 638 8 (694 ) (18 ) (66 ) Total derivative contracts $ 639 $ 9 $ (707 ) $ (24 ) $ (83 ) Hedge Position as of December 31, 2016 (in millions) Volume Final Maturity Date Hedge Derivatives Asset Other Noncurrent Assets Hedge Derivatives Liability Other Noncurrent Liabilities Hedge Derivatives, net Designated as hedges Foreign currency exchange contracts 54,853 Japanese yen February 2019 31 3 (4 ) (3 ) 27 335 Canadian dollars January 2019 Not designated as hedges Fuel hedge contracts (1) 197 gallons - crude oil and refined products January 2018 360 — (684 ) — (324 ) Total derivative contracts $ 391 $ 3 $ (688 ) $ (3 ) $ (297 ) (1) As discussed above, we early settled $455 million of our airline segment's 2016 fuel hedge positions and entered into hedges designed to offset and effectively neutralize our 2017 airline segment hedge positions. The dollar amounts shown above primarily represent the offsetting derivatives that were used to neutralize the 2016 and 2017 airline segment hedge portfolio. Offsetting Assets and Liabilities We have master netting arrangements with our counterparties giving us the right to offset hedge assets and liabilities. However, we have elected not to offset the fair value positions recorded on our Consolidated Balance Sheets. The following table shows the net fair value of our counterparty positions had we elected to offset. (in millions) Hedge Derivatives Asset Other Noncurrent Assets Hedge Derivatives Liability Other Noncurrent Liabilities Hedge Derivatives, Net December 31, 2017 Net derivative contracts $ — $ 1 $ (68 ) $ (16 ) $ (83 ) December 31, 2016 Net derivative contracts $ 29 $ 2 $ (326 ) $ (2 ) $ (297 ) |
Schedule of designated hedge gains (losses) | Gains (losses) related to our designated hedge contracts during the years ended December 31, 2017 , 2016 and 2015 are as follows: Effective Portion Reclassified from AOCI to Earnings Effective Portion Recognized in Other Comprehensive (Loss) Income (in millions) 2017 2016 2015 2017 2016 2015 Foreign currency exchange contracts 10 37 198 (43 ) (68 ) (130 ) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of indefinite-lived intangible assets | Indefinite-Lived Intangible Assets Carrying Value at December 31, (in millions) 2017 2016 International routes and slots $ 2,583 $ 2,563 Delta tradename 850 850 SkyTeam-related assets 661 661 Domestic slots 622 622 Total $ 4,716 $ 4,696 |
Schedule of definite-lived intangible assets | Definite-Lived Intangible Assets December 31, 2017 December 31, 2016 (in millions) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Marketing agreements $ 730 $ (677 ) $ 730 $ (667 ) Contracts 193 (115 ) 193 (108 ) Other 53 (53 ) 53 (53 ) Total $ 976 $ (845 ) $ 976 $ (828 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | The following table summarizes our long-term debt: Maturity Interest Rate(s) Per Annum at December 31, (in millions) Dates December 31, 2017 2017 2016 Pacific Facilities (1) : Pacific Term Loan B-1 (2) October 2018 3.99% variable (4) $ 1,048 $ 1,059 Pacific Revolving Credit Facility October 2018 undrawn variable (4) — — 2015 Credit Facilities (1) : Term Loan Facility (2) August 2022 4.07% variable (4) 490 495 Revolving Credit Facility August 2020 undrawn variable (4) — — Financing arrangements secured by aircraft: Certificates (3) 2018 to 2027 3.63% to 8.02% 2,380 2,777 Notes (3) 2018 to 2027 1.81% to 6.76% 1,961 2,488 Unsecured notes (5) 2020 to 2022 2.60% to 3.63% 2,450 — Other financings (3)(6) 2019 to 2030 0.00% to 8.75% 210 293 Other revolving credit facilities (1) 2018 to 2019 undrawn variable (4) — — Total secured and unsecured debt 8,539 7,112 Unamortized discount and debt issue cost, net (99 ) (104 ) Total debt 8,440 7,008 Less: current maturities (2,145 ) (1,009 ) Total long-term debt $ 6,295 $ 5,999 (1) Guaranteed by substantially all of our domestic subsidiaries (the "Guarantors"). (2) Borrowings must be repaid annually in an amount equal to 1% per year of the original principal amount (paid in equal quarterly installments), with the balance due on the final maturity date. (3) Due in installments. (4) Interest rate equal to LIBOR (generally subject to a floor) or another index rate, in each case plus a specified margin. Additionally, certain aircraft and other financings are comprised of variable rate debt. (5) Includes notes issued in March and December 2017. (6) Minimum unrestricted liquidity Unrestricted cash, permitted investments and undrawn revolving credit facilities $2.0 billion Minimum collateral coverage ratio (1) 1.60:1 (1) Minimum fixed charge coverage ratio (1) 1.20:1 Minimum unrestricted liquidity Unrestricted cash, permitted investments and undrawn revolving credit facilities $2.0 billion Minimum collateral coverage ratio (2) 1.60:1 (1) Defined as the ratio of (a) earnings before interest, taxes, depreciation, amortization and aircraft rent and other adjustments to net income to (b) the sum of gross cash interest expense (including the interest portion of our capitalized lease obligations) and cash aircraft rent expense, for the 12-month period ending as of the last day of each fiscal quarter. (2) Defined as the ratio of (a) certain of the collateral that meet specified eligibility standards to (b) the sum of the aggregate outstanding obligations and certain other obligations. |
Schedule of line of credit facilities | The table below shows availability under revolving credit facilities, all of which were undrawn, as of December 31, 2017 : (in millions) Revolving Credit Facility $ 1,500 Pacific Revolving Credit Facility 415 Other revolving credit facilities 535 Total availability under revolving credit facilities $ 2,450 |
Summary of scheduled maturities of debt | The following table summarizes scheduled maturities of our debt for the years succeeding December 31, 2017 : (in millions) Total Debt Amortization of Debt Discount and Debt Issuance Cost, net 2018 $ 2,183 $ (42 ) 2019 1,359 (30 ) 2020 1,983 (8 ) 2021 345 (6 ) 2022 2,009 (7 ) Thereafter 660 (6 ) Total $ 8,539 $ (99 ) $ 8,440 |
Schedule of estimated fair value of debt instruments | The fair value of debt, shown below, is principally based on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral. Long-term debt is primarily classified as Level 2 within the fair value hierarchy. December 31, (in millions) 2017 2016 Total debt at par value $ 8,539 $ 7,112 Unamortized discount and debt issuance cost, net (99 ) (104 ) Net carrying amount $ 8,440 $ 7,008 Fair value $ 8,700 $ 7,300 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of future minimum lease payments for capital leases | The following tables summarize our minimum rental commitments under capital leases and noncancelable operating leases (including certain aircraft flown by regional carriers) with initial or remaining terms in excess of one year for the years succeeding December 31, 2017 : Capital Leases (in millions) Total 2018 $ 116 2019 92 2020 65 2021 41 2022 24 Thereafter 126 Total minimum lease payments 464 Less: amount of lease payments representing interest (70 ) Present value of future minimum capital lease payments 394 Less: current obligations under capital leases (97 ) Long-term capital lease obligations $ 297 |
Schedule of future minimum rental payments for operating leases | Operating Leases (in millions) Delta Lease Payments (1) Contract Carrier Aircraft Lease Payments (2) Total 2018 $ 1,469 $ 266 $ 1,735 2019 1,322 267 1,589 2020 1,189 241 1,430 2021 983 173 1,156 2022 883 153 1,036 Thereafter 8,819 471 9,290 Total minimum lease payments $ 14,665 $ 1,571 $ 16,236 (1) Includes payments accounted for as construction obligations. (2) Represents the minimum lease obligations under our contract carrier agreements with Compass Airlines, LLC, ExpressJet Airlines, Inc., GoJet Airlines, LLC, Republic Airline, Inc. and SkyWest Airlines, Inc. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan [Abstract] | |
Schedule of benefit obligations, fair value of plan assets, and funded status | Benefit Obligations, Fair Value of Plan Assets and Funded Status Pension Benefits Other Postretirement and Postemployment Benefits December 31, December 31, (in millions) 2017 2016 2017 2016 Benefit obligation at beginning of period $ 20,859 $ 20,611 $ 3,379 $ 3,336 Service cost — — 87 68 Interest cost 853 917 138 147 Actuarial loss (gain) 1,068 411 183 115 Benefits paid, including lump sums and annuities (1,075 ) (1,071 ) (311 ) (318 ) Participant contributions — — 28 31 Settlements (9 ) (9 ) — — Benefit obligation at end of period (1) $ 21,696 $ 20,859 $ 3,504 $ 3,379 Fair value of plan assets at beginning of period $ 10,301 $ 9,374 $ 784 $ 884 Actual gain (loss) on plan assets 1,966 687 138 51 Employer contributions 3,561 1,320 254 154 Participant contributions — — 28 31 Benefits paid, including lump sums and annuities (1,075 ) (1,071 ) (338 ) (336 ) Settlements (9 ) (9 ) — — Fair value of plan assets at end of period $ 14,744 $ 10,301 $ 866 $ 784 Funded status at end of period $ (6,952 ) $ (10,558 ) $ (2,638 ) $ (2,595 ) (1) At the end of each year presented, our accumulated benefit obligations for our pension plans are equal to the benefit obligations shown above. |
Schedule of amounts recognized on balance sheet | Balance Sheet Position Pension Benefits Other Postretirement and Postemployment Benefits December 31, December 31, (in millions) 2017 2016 2017 2016 Current liabilities $ (32 ) $ (30 ) $ (121 ) $ (125 ) Noncurrent liabilities (6,920 ) (10,528 ) (2,517 ) (2,470 ) Total liabilities $ (6,952 ) $ (10,558 ) $ (2,638 ) $ (2,595 ) Net actuarial loss $ (8,495 ) $ (8,515 ) $ (651 ) $ (570 ) Prior service credit — — 56 82 Total accumulated other comprehensive loss, pre-tax $ (8,495 ) $ (8,515 ) $ (595 ) $ (488 ) |
Schedule of net periodic costs | Net Periodic Cost Pension Benefits Other Postretirement and Postemployment Benefits Year Ended December 31, Year Ended December 31, (in millions) 2017 2016 2015 2017 2016 2015 Service cost $ — $ — $ — $ 87 $ 68 $ 62 Interest cost 853 917 884 138 147 141 Expected return on plan assets (1,143 ) (902 ) (879 ) (69 ) (74 ) (81 ) Amortization of prior service credit — — — (26 ) (26 ) (26 ) Recognized net actuarial loss 262 233 232 32 24 24 Settlements 3 3 3 — — — Net periodic cost (1) $ (25 ) $ 251 $ 240 $ 162 $ 139 $ 120 (1) See Note 1 for discussion on ASU No. 2017-07, "Compensation - Retirement Benefits (Topic 715)." |
Schedule of assumptions used to determine benefit obligations and net periodic costs | We used the following actuarial assumptions to determine our benefit obligations and our net periodic cost for the periods presented: December 31, Benefit Obligations (1) 2017 2016 Weighted average discount rate 3.69 % 4.20 % Year Ended December 31, Net Periodic Cost (1) 2017 2016 2015 Weighted average discount rate - pension benefit 4.14 % 4.57 % 4.13 % Weighted average discount rate - other postretirement benefit 4.19 % 4.53 % 4.13 % Weighted average discount rate - other postemployment benefit 4.14 % 4.50 % 4.13 % Weighted average expected long-term rate of return on plan assets 8.96 % 8.94 % 8.94 % Assumed healthcare cost trend rate (2) 7.00 % 6.50 % 7.00 % (1) Future employee compensation levels do not impact our frozen defined benefit pension plans or other postretirement plans and impact only a small portion of our other postemployment liability. (2) Healthcare cost trend rate at December 31, 2017 is assumed to decline gradually to 5.00% by 2026 and remain unchanged thereafter. |
Schedule of effect of one-percentage-point change in assumed healthcare cost trend rates | A 1% change in the healthcare cost trend rate used in measuring the plan benefit obligation for these plans would have the following effects: (in millions) 1% Increase 1% (Decrease) Increase (decrease) in total service and interest cost $ 1 $ (1 ) Increase (decrease) in the accumulated plan benefit obligation 9 (30 ) |
Schedule of expected benefit payments | The following table summarizes the benefit payments that are scheduled to be paid in the years ending December 31: (in millions) Pension Benefits Other Postretirement and Postemployment Benefits 2018 $ 1,170 $ 284 2019 1,177 291 2020 1,201 296 2021 1,220 297 2022 1,238 296 2023-2027 6,351 1,417 |
Schedule of benefit plan assets measured at fair value on recurring basis | The following table summarizes investments measured at fair value based on NAV per share as a practical expedient: December 31, 2017 December 31, 2016 (in millions) Fair Value Redemption Frequency Redemption Notice Period Unfunded Commitments Fair Value Redemption Frequency Redemption Notice Period Unfunded Commitments Hedge funds and hedge fund-related strategies $ 4,768 (5) 2-120 Days $ — $ 3,308 (5) 4-120 Days $ — Commingled funds, private equity and private equity-related instruments 1,375 (1) (3) (4) 10-30 Days — 1,214 (1) (3) (4) 15-30 Days 525 Fixed income and fixed income-related instruments 311 (2) 3-15 Days — 270 (2) 5 Days — Real assets 924 (3) (4) N/A 94 698 (3) (4) N/A 529 Other — (1) 30 Days — 234 (2) 2 Days — Total investments measured at NAV $ 7,378 $ 94 $ 5,724 $ 1,054 (1) Monthly (2) Semi-monthly (3) Semi-annually (4) Annually (5) Various. Includes funds with weekly, monthly, semi-monthly, quarterly and custom redemption frequencies as well as funds with a redemption window following the anniversary of the initial investment. December 31, 2017 December 31, 2016 Valuation Technique (in millions) Level 1 Level 2 Total Level 1 Level 2 Total Equities and equity-related instruments $ 2,033 $ 13 $ 2,046 $ 2,021 $ 14 $ 2,035 (a) Delta common stock 801 — 801 386 — 386 (a) Cash equivalents 735 697 1,432 228 1,240 1,468 (a) Fixed income and fixed income-related instruments 17 3,648 3,665 8 1,190 1,198 (a)(b) Benefit plan assets $ 3,586 $ 4,358 $ 7,944 $ 2,643 $ 2,444 $ 5,087 Investments measured at net asset value ("NAV") (1) $ 7,378 $ 5,724 Total benefit plan assets $ 15,322 $ 10,811 (1) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future aircraft purchase commitments | Our future aircraft purchase commitments totaled approximately $18.3 billion at December 31, 2017 : (in millions) Total 2018 $ 3,570 2019 3,370 2020 3,270 2021 3,880 2022 2,450 Thereafter 1,740 Total $ 18,280 Our future aircraft purchase commitments included the following aircraft at December 31, 2017 : Aircraft Type Purchase Commitments A321-200 93 A321-200neo 100 A330-900neo 25 A350-900 19 B-737-900ER 41 CS100 75 Total 353 |
Schedule of capacity purchase arrangements | Accordingly, our actual payments under these agreements could differ materially from the minimum fixed obligations set forth in the table below. (in millions) Amount (1) 2018 $ 1,772 2019 1,603 2020 1,320 2021 793 2022 723 Thereafter 1,975 Total $ 8,186 (1) These amounts exclude contract carrier payments accounted for as operating leases of aircraft, which are described in Note 7 |
Schedule of employees under collective bargaining agreements | The following table shows our domestic airline employee groups that are represented by unions. Employee Group Approximate Number of Active Employees Represented Union Date on which Collective Bargaining Agreement Becomes Amendable Delta Pilots 13,234 ALPA December 31, 2019 Delta Flight Superintendents (Dispatchers) 420 PAFCA March 31, 2018 Endeavor Air Pilots 1,805 ALPA January 1, 2024 Endeavor Air Flight Attendants 1,160 AFA December 31, 2018 Endeavor Air Dispatchers 55 PAFCA December 31, 2018 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision | Our income tax provision consisted of the following: Year Ended December 31, (in millions) 2017 2016 2015 Current tax (provision) benefit: Federal $ (4 ) $ — $ (23 ) State and local 5 (28 ) (25 ) International (54 ) (12 ) (2 ) Deferred tax provision: Federal (1,911 ) (2,080 ) (2,409 ) State and local (160 ) (143 ) (172 ) Income tax provision $ (2,124 ) $ (2,263 ) $ (2,631 ) |
Schedule of effective income tax rate reconciliation | The following table presents the principal reasons for the difference between the effective tax rate and the U.S. federal statutory income tax rate: Year Ended December 31, 2017 2016 2015 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 1.8 1.8 1.8 Decrease in valuation allowance — — (0.2 ) Foreign tax rate differential (2.2 ) (2.0 ) — Tax Cuts and Jobs Act adjustment 2.6 — — Other — (0.7 ) 0.2 Effective income tax rate 37.2 % 34.1 % 36.8 % |
Schedule of deferred taxes | The following table shows significant components of our deferred tax assets and liabilities: December 31, (in millions) 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 1,440 $ 2,485 Pension, postretirement and other benefits 2,545 5,259 Alternative minimum tax credit carryforward 379 379 Deferred revenue 1,024 1,544 Other 746 1,075 Valuation allowance (19 ) (40 ) Total deferred tax assets $ 6,115 $ 10,702 Deferred tax liabilities: Depreciation $ 3,936 $ 5,701 Intangible assets 1,070 1,691 Other 174 246 Total deferred tax liabilities $ 5,180 $ 7,638 Net deferred tax assets $ 935 $ 3,064 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive loss | The following table shows the components of accumulated other comprehensive loss: (in millions) Pension and Other Benefits Liabilities (2) Derivative Contracts Investments Total Balance at January 1, 2015 (net of tax effect of $1,279) $ (7,517 ) $ 222 $ (16 ) $ (7,311 ) Changes in value (net of tax effect of $41) 10 43 (45 ) 8 Reclassification into earnings (net of tax effect of $16) (1) 153 (125 ) — 28 Balance at December 31, 2015 (net of tax effect of $1,222) (7,354 ) 140 (61 ) (7,275 ) Changes in value (net of tax effect of $293) (482 ) (19 ) 42 (459 ) Reclassification into earnings (net of tax effect of $57) (1) 122 (24 ) — 98 Balance at December 31, 2016 (net of tax effect of $1,458) (7,714 ) 97 (19 ) (7,636 ) Changes in value (net of tax effect of $32) (264 ) (21 ) 148 (137 ) Reclassification into earnings (net of tax effect of $90) (1) 166 (6 ) (8 ) 152 Balance at December 31, 2017 (net of tax effect of $1,400) $ (7,812 ) $ 70 $ 121 $ (7,621 ) (1) Amounts reclassified from AOCI for pension and other benefits liabilities and for derivative contracts designated as foreign currency cash flow hedges are recorded in salaries and related costs and in passenger revenue, respectively, in the Consolidated Statements of Operations. The reclassification into earnings for investments relates to our investment in Grupo Aeroméxico and the related conversion to accounting under the equity method. The reclassification of the unrealized gain was recorded to non-operating expense in our Consolidates Statements of Operations. (2) Includes $700 million |
Segments and Geograhic Informat
Segments and Geograhic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of segments to consolidated amounts | Our operating revenue by geographic region (as defined by the U.S. Department of Transportation) is summarized in the following table: Year Ended December 31, (in millions) 2017 2016 2015 Domestic $ 29,556 $ 28,108 $ 27,884 Atlantic 6,044 5,919 6,505 Pacific 2,730 2,939 3,503 Latin America 2,914 2,673 2,812 Total $ 41,244 $ 39,639 $ 40,704 (in millions) Airline Refinery Intersegment Sales/Other Consolidated Year Ended December 31, 2017 Operating revenue: $ 40,742 $ 5,039 $ 41,244 Sales to airline segment $ (886 ) (1) Exchanged products (3,240 ) (2) Sales of refined products (411 ) (3) Operating income 6,004 110 6,114 Interest expense (income), net 403 (7 ) 396 Depreciation and amortization 2,188 47 2,235 Total assets, end of period 51,165 2,127 53,292 Capital expenditures 3,743 148 3,891 Year Ended December 31, 2016 Operating revenue: $ 39,406 $ 3,843 $ 39,639 Sales to airline segment $ (695 ) (1) Exchanged products (2,658 ) (2) Sales of refined products (257 ) (3) Operating income (loss) (4) 7,077 (125 ) 6,952 Interest expense, net 386 2 388 Depreciation and amortization 1,862 40 1,902 Total assets, end of period 49,930 1,331 51,261 Capital expenditures 3,270 121 3,391 Year Ended December 31, 2015 Operating revenue: $ 40,398 $ 4,741 $ 40,704 Sales to airline segment $ (990 ) (1) Exchanged products (3,108 ) (2) Sales of refined products (337 ) (3) Operating income (4) 7,512 290 7,802 Interest expense, net 481 — 481 Depreciation and amortization 1,805 30 1,835 Total assets, end of period 51,785 1,349 53,134 Capital expenditures 2,853 92 2,945 (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 exchange agreements, as discussed above, determined on a market price basis. (3) These sales were at or near cost; accordingly, the margin on these sales is de minimis. (4) |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserve and activity | The following table shows the balances and activity for restructuring charges: (in millions) 2017 2016 2015 Liability at beginning of period $ 333 $ 467 $ 504 Payments (103 ) (144 ) (127 ) Additional expenses and other 7 10 90 Liability at end of period $ 237 $ 333 $ 467 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table shows our computation of basic and diluted earnings per share: Year Ended December 31, (in millions, except per share data) 2017 2016 2015 Net income $ 3,577 $ 4,373 $ 4,526 Basic weighted average shares outstanding 720 751 797 Dilutive effect of share-based awards 3 4 7 Diluted weighted average shares outstanding 723 755 804 Basic earnings per share $ 4.97 $ 5.82 $ 5.68 Diluted earnings per share $ 4.95 $ 5.79 $ 5.63 |
Quarterly Financial Data (Una41
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The following table summarizes our unaudited results of operations on a quarterly basis. The quarterly earnings per share amounts for a year will not add to the earnings per share for that year due to the weighting of shares used in calculating per share data. Three Months Ended, (in millions, except per share data) March 31 June 30 September 30 December 31 2017 Operating revenue $ 9,148 $ 10,791 $ 11,060 $ 10,245 Operating income 1,053 2,028 1,839 1,193 Net income 603 1,224 1,178 572 Basic earnings per share $ 0.83 $ 1.68 $ 1.64 $ 0.81 Diluted earnings per share $ 0.82 $ 1.68 $ 1.64 $ 0.80 2016 Operating revenue $ 9,251 $ 10,447 $ 10,483 $ 9,458 Operating income 1,540 2,423 1,969 1,020 Net income 946 1,546 1,259 622 Basic earnings per share $ 1.22 $ 2.04 $ 1.70 $ 0.85 Diluted earnings per share $ 1.21 $ 2.03 $ 1.69 $ 0.84 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Ownership interest | 50.00% | |||
Increase in frequent flyer liability | $ 192,000,000 | $ 45,000,000 | $ (301,000,000) | |
Decrease in air traffic liability | (262,000,000) | (123,000,000) | (207,000,000) | |
Defined benefit plan non-service costs | 50,000,000 | |||
Depreciation and amortization expense related to property and equipment | 2,200,000,000 | 1,900,000,000 | 1,800,000,000 | |
Amortization of capitalized software | 189,000,000 | 160,000,000 | 148,000,000 | |
Net book value of capitalized software | 659,000,000 | 549,000,000 | ||
Fuel card obligation | 1,067,000,000 | 431,000,000 | ||
Advertising expense | 284,000,000 | $ 277,000,000 | $ 230,000,000 | |
Fuel Card Obligation | ||||
Purchasing card maximum limit | $ 1,100,000,000 | |||
Maximum | ||||
Spare parts, estimated residual value | 10.00% | |||
Minimum | ||||
Spare parts, estimated residual value | 5.00% | |||
Software and software development costs | Maximum | ||||
Estimated useful life | 10 years | |||
Software and software development costs | Minimum | ||||
Estimated useful life | 3 years | |||
GOL | ||||
Net unrealized gain on available-for-sale investments in AOCI | $ 162,000,000 | |||
Air France-KLM | ||||
Restriction period on sale or transfer of shares (in years) | 5 years | |||
ASU No. 2014-09 | Forecast | ||||
Expected increase in passenger revenue upon adoption of new accounting standard | $ 2,000,000,000 | |||
Expected decrease in other revenue upon adoption of new accounting standard | 2,000,000,000 | |||
Increase in frequent flyer liability | 2,000,000,000 | |||
Decrease in air traffic liability | $ 500,000,000 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Long-Lived Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation and amortization | $ (14,097) | $ (12,456) |
Total property and equipment, net | 26,563 | 24,375 |
Flight Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 30,688 | 28,135 |
Estimated useful life | 20-32 years | |
Flight Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 32 years | |
Flight Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 20 years | |
Ground Property and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,665 | 6,581 |
Estimated useful life | 3-40 years | |
Ground Property and Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Ground Property and Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Flight and Ground Equipment Under Capital Lease | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,147 | 1,056 |
Less: accumulated depreciation and amortization | $ (668) | (757) |
Estimated useful life | Shorter of lease term or estimated useful life | |
Advance Payments for Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,160 | $ 1,059 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurement (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | $ 1,357 | $ 2,279 |
Restricted cash equivalents and investments | 38 | 61 |
Fuel hedge contracts | (66) | (324) |
Foreign currency exchange contracts | (17) | 27 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 93 | 112 |
Asset- and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 173 | 68 |
Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 467 | 295 |
Other fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 92 | 12 |
Long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 513 | 139 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 1,357 | 2,279 |
Restricted cash equivalents and investments | 38 | 61 |
Fuel hedge contracts | (43) | (26) |
Foreign currency exchange contracts | 0 | 0 |
Level 1 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 84 | 86 |
Level 1 | Asset- and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 0 | 0 |
Level 1 | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 0 | 0 |
Level 1 | Other fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 0 | 0 |
Level 1 | Long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 485 | 115 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Restricted cash equivalents and investments | 0 | 0 |
Fuel hedge contracts | (23) | (298) |
Foreign currency exchange contracts | (17) | 27 |
Level 2 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 9 | 26 |
Level 2 | Asset- and mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 173 | 68 |
Level 2 | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 467 | 295 |
Level 2 | Other fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | 92 | 12 |
Level 2 | Long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments | $ 28 | $ 24 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Fuel hedge contracts | 12 Months Ended |
Dec. 31, 2017 | |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Expected volatility rate (percent) | 28.00% |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Expected volatility rate (percent) | 10.00% |
Investments - Schedule of Avail
Investments - Schedule of Available For Sale Debt Maturities (Details) $ in Millions | Dec. 31, 2017USD ($) |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity | |
Due in one year or less | $ 323 |
Due after one year through three years | 465 |
Due after three years through five years | 19 |
Due after five years | 18 |
Total | $ 825 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Purchase of equity investments | $ 1,245,000,000 | $ 0 | $ 500,000,000 |
Grupo Aeromexico | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase of equity investments | 622,000,000 | ||
Acquisition of equity investment from executed derivative contracts | $ 173,000,000 | ||
Equity method investment, ownership percentage | 49.00% | ||
Virgin Atlantic | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 49.00% | ||
GOL | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interests, ownership percentage | 9.00% | ||
Available-for-sale equity securities, accumulated gross unrealized gain | $ 56,000,000 | ||
GOL | Term loan facility | |||
Schedule of Equity Method Investments [Line Items] | |||
Guarantee borrowings on third party debt | $ 300,000,000 | ||
Guarantee borrowings on third party debt, term | 5 years | ||
China Eastern | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interests, ownership percentage | 3.00% | ||
Available-for-sale equity securities, accumulated gross unrealized gain | $ 106,000,000 | ||
Air France-KLM | |||
Schedule of Equity Method Investments [Line Items] | |||
Restriction period on sale or transfer of shares (in years) | 5 years | ||
Air France-KLM | Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interests, ownership percentage | 10.00% | ||
Purchase of cost method investment | $ 450,000,000 | ||
Republic Airways | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interests, ownership percentage | 17.00% |
Derivatives and Risk Manageme48
Derivatives and Risk Management - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Proceeds from derivative instruments | $ 20 | $ 291 | $ 429 |
Payments for derivative instruments | 244 | 451 | 71 |
Derivative losses | (7) | (342) | (1,366) |
Margin posted due to fair value position of hedge contracts | 43 | 38 | |
Fuel derivative | |||
Derivative [Line Items] | |||
Proceeds from derivative instruments | 300 | 300 | |
Payments for derivative instruments | 300 | 300 | |
Fuel hedge contracts | |||
Derivative [Line Items] | |||
Derivative losses | $ 81 | 366 | $ 741 |
Fuel hedge contracts | Airline | |||
Derivative [Line Items] | |||
Settlement of derivative contract | $ 455 |
Derivatives and Risk Manageme49
Derivatives and Risk Management - Hedge Position and Offsetting (Details) ¥ in Millions, gal in Millions, CAD in Millions, $ in Millions | Dec. 31, 2017JPY (¥)gal | Dec. 31, 2017CADgal | Dec. 31, 2017USD ($)gal | Dec. 31, 2016JPY (¥)gal | Dec. 31, 2016CADgal | Dec. 31, 2016USD ($)gal |
Derivatives, Fair Value [Line Items] | ||||||
Net derivative contracts, hedge derivatives, net | $ (83) | $ (297) | ||||
Hedge derivative asset | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Total derivative contracts, assets | 639 | 391 | ||||
Net derivative contracts, assets | 0 | 29 | ||||
Other noncurrent assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Total derivative contracts, assets | 9 | 3 | ||||
Net derivative contracts, assets | 1 | 2 | ||||
Hedge derivative liability | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Total derivative contracts, liabilities | (707) | (688) | ||||
Net derivative contracts, liabilities | (68) | (326) | ||||
Other noncurrent liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Total derivative contracts, liabilities | (24) | (3) | ||||
Net derivative contracts, liabilities | (16) | (2) | ||||
Foreign currency exchange contract | Designated as hedging instrument | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Foreign currency exchange contracts | (17) | 27 | ||||
Foreign currency exchange contract | Designated as hedging instrument | Hedge derivative asset | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Foreign currency exchange contracts, assets | 1 | 31 | ||||
Foreign currency exchange contract | Designated as hedging instrument | Other noncurrent assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Foreign currency exchange contracts, assets | 1 | 3 | ||||
Foreign currency exchange contract | Designated as hedging instrument | Hedge derivative liability | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Foreign currency exchange contracts, liabilities | (13) | (4) | ||||
Foreign currency exchange contract | Designated as hedging instrument | Other noncurrent liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Foreign currency exchange contracts, liabilities | $ (6) | $ (3) | ||||
Foreign currency exchange contract | Cash flow hedging | Designated as hedging instrument | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, notional amount | ¥ 23,512 | CAD 490 | ¥ 54,853 | CAD 335 | ||
Fuel hedge contracts | Not designated as hedging instrument | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, nonmonetary notional amount | gal | 249 | 249 | 249 | 197 | 197 | 197 |
Fuel hedge contracts, hedge derivatives, net | $ (66) | $ (324) | ||||
Fuel hedge contracts | Not designated as hedging instrument | Hedge derivative asset | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fuel hedge contracts, assets | 638 | 360 | ||||
Fuel hedge contracts | Not designated as hedging instrument | Other noncurrent assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fuel hedge contracts, assets | 8 | 0 | ||||
Fuel hedge contracts | Not designated as hedging instrument | Hedge derivative liability | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fuel hedge contracts, liabilities | (694) | (684) | ||||
Fuel hedge contracts | Not designated as hedging instrument | Other noncurrent liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fuel hedge contracts, liabilities | $ (18) | $ 0 |
Derivatives and Risk Manageme50
Derivatives and Risk Management - Designated Hedge Gain (Loss) (Details) - Foreign currency exchange contract - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective portion reclassified from AOCI to earnings | $ 10 | $ 37 | $ 198 |
Effective portion recognized in other comprehensive income (loss) | $ (43) | $ (68) | $ (130) |
Intangible Assets - Indefinite-
Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Indefinite-lived Intangible Assets | ||
Indefinite-lived intangible assets | $ 4,716 | $ 4,696 |
International routes and slots | ||
Indefinite-lived Intangible Assets | ||
Indefinite-lived intangible assets | 2,583 | 2,563 |
Delta tradename | ||
Indefinite-lived Intangible Assets | ||
Indefinite-lived intangible assets | 850 | 850 |
SkyTeam-related assets | ||
Indefinite-lived Intangible Assets | ||
Indefinite-lived intangible assets | 661 | 661 |
Domestic slots | ||
Indefinite-lived Intangible Assets | ||
Indefinite-lived intangible assets | $ 622 | $ 622 |
Intangible Assets - Definite-Li
Intangible Assets - Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets | ||
Definite-lived intangible assets, gross carrying value | $ 976 | $ 976 |
Accumulated amortization | (845) | (828) |
Marketing agreements | ||
Finite-Lived Intangible Assets | ||
Definite-lived intangible assets, gross carrying value | 730 | 730 |
Accumulated amortization | (677) | (667) |
Contracts | ||
Finite-Lived Intangible Assets | ||
Definite-lived intangible assets, gross carrying value | 193 | 193 |
Accumulated amortization | (115) | (108) |
Other | ||
Finite-Lived Intangible Assets | ||
Definite-lived intangible assets, gross carrying value | 53 | 53 |
Accumulated amortization | $ (53) | $ (53) |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets | |||
Intangible assets, amortization expense | $ 17 | $ 17 | $ 18 |
Estimated amortization in 2018 | 16 | ||
Estimated amortization in 2019 | 16 | ||
Estimated amortization in 2020 | 16 | ||
Estimated amortization in 2021 | 16 | ||
Estimated amortization in 2022 | $ 16 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Total secured and unsecured debt | $ 8,539 | $ 7,112 |
Unamortized discount and debt issuance cost, net | (99) | (104) |
Total debt | 8,440 | 7,008 |
Less: current maturities | (2,145) | (1,009) |
Total long-term debt | $ 6,295 | 5,999 |
Annual repayment required as percentage of original principal amount | 1.00% | |
Pacific Term Loan B-1 | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Oct. 31, 2018 | |
Debt instrument, interest rate, stated percentage | 3.99% | |
Secured debt | $ 1,048 | 1,059 |
Pacific Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Oct. 31, 2018 | |
Line of credit outstanding | $ 0 | 0 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Aug. 31, 2022 | |
Debt instrument, interest rate, stated percentage | 4.07% | |
Secured debt | $ 490 | 495 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Aug. 31, 2020 | |
Line of credit outstanding | $ 0 | 0 |
Certificates | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date range, start | Jan. 1, 2018 | |
Debt instrument, maturity date range, end | Dec. 31, 2027 | |
Secured debt | $ 2,380 | 2,777 |
Certificates | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 8.02% | |
Certificates | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.63% | |
Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date range, start | Jan. 1, 2018 | |
Debt instrument, maturity date range, end | Dec. 31, 2027 | |
Secured debt | $ 1,961 | 2,488 |
Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 6.76% | |
Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.81% | |
Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date range, start | Jan. 1, 2020 | |
Debt instrument, maturity date range, end | Dec. 31, 2022 | |
Unsecured debt | $ 2,450 | 0 |
Unsecured Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.63% | |
Unsecured Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.60% | |
Other Financings | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date range, start | Jan. 1, 2019 | |
Debt instrument, maturity date range, end | Dec. 31, 2030 | |
Other debt | $ 210 | 293 |
Other Financings | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 8.75% | |
Other Financings | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.00% | |
Other Revolving Credit Facilities | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date range, start | Jan. 1, 2018 | |
Debt instrument, maturity date range, end | Dec. 31, 2019 | |
Line of credit outstanding | $ 0 | $ 0 |
Long-Term Debt - Unsecured Debt
Long-Term Debt - Unsecured Debt Offerings Narrative (Details) - Unsecured Debt - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 450,000,000 | $ 2,000,000,000 |
2.875% Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 1,000,000,000 | |
Debt instrument, stated interest rate (percent) | 2.875% | |
3.625% Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 1,000,000,000 | |
Debt instrument, stated interest rate (percent) | 3.625% | |
2.600% Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate (percent) | 2.60% |
Long-Term Debt - Key Financial
Long-Term Debt - Key Financial Covenants (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Pacific Facilities | |
Debt Instrument [Line Items] | |
Minimum fixed charge coverage ratio | 1.20 |
Minimum unrestricted liquidity, unrestricted cash, permitted investments and undrawn revolving credit facilities | $ 2 |
Minimum collateral coverage ratio | 1.60 |
2015 Credit Facilities | |
Debt Instrument [Line Items] | |
Minimum unrestricted liquidity, unrestricted cash, permitted investments and undrawn revolving credit facilities | $ 2 |
Minimum collateral coverage ratio | 1.60 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facilities (Details) $ in Millions | Dec. 31, 2017USD ($) |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | $ 2,450 |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | 1,500 |
Pacific Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | 415 |
Other Revolving Credit Facilities | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | $ 535 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term Debt, Fiscal Year Maturity | ||
2,018 | $ 2,183 | |
2,019 | 1,359 | |
2,020 | 1,983 | |
2,021 | 345 | |
2,022 | 2,009 | |
Thereafter | 660 | |
Total | 8,539 | $ 7,112 |
Amortization of Debt Discount and Debt Issuance Cost, net | ||
2,018 | (42) | |
2,019 | (30) | |
2,020 | (8) | |
2,021 | (6) | |
2,022 | (7) | |
Thereafter | (6) | |
Total | (99) | (104) |
Long-term debt | $ 8,440 | $ 7,008 |
Long-Term Debt - Schedule of Fa
Long-Term Debt - Schedule of Fair Value of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Total debt at par value | $ 8,539 | $ 7,112 |
Unamortized discount and debt issuance cost, net | (99) | (104) |
Net carrying amount | 8,440 | 7,008 |
Fair value | $ 8,700 | $ 7,300 |
Lease Obligations - Future Mini
Lease Obligations - Future Minimum Lease Payments for Capital Leases (Details) $ in Millions | Dec. 31, 2017USD ($) |
Capital Leases, Future Minimum Payments Due | |
2,018 | $ 116 |
2,019 | 92 |
2,020 | 65 |
2,021 | 41 |
2,022 | 24 |
Thereafter | 126 |
Total minimum lease payments | 464 |
Less: amount of lease payments representing interest | (70) |
Present value of future minimum capital lease payments | 394 |
Less: current obligations under capital leases | (97) |
Long-term capital lease obligations | $ 297 |
Lease Obligations - Future Mi61
Lease Obligations - Future Minimum Rental Payments for Operating Leases (Details) $ in Millions | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due | |
2,018 | $ 1,735 |
2,019 | 1,589 |
2,020 | 1,430 |
2,021 | 1,156 |
2,022 | 1,036 |
Thereafter | 9,290 |
Total minimum lease payments | 16,236 |
Delta Lease Payments | |
Operating Leases, Future Minimum Payments Due | |
2,018 | 1,469 |
2,019 | 1,322 |
2,020 | 1,189 |
2,021 | 983 |
2,022 | 883 |
Thereafter | 8,819 |
Total minimum lease payments | 14,665 |
Contract Carrier Aircraft Lease Payments | |
Operating Leases, Future Minimum Payments Due | |
2,018 | 266 |
2,019 | 267 |
2,020 | 241 |
2,021 | 173 |
2,022 | 153 |
Thereafter | 471 |
Total minimum lease payments | $ 1,571 |
Lease Obligations - Narrative (
Lease Obligations - Narrative (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Operating leases, rent expense | $ 1.3 | $ 1.3 | $ 1.2 |
Airport Redevelopment - Narrati
Airport Redevelopment - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2010USD ($) | Dec. 31, 2017USD ($)concourseterminal_gate | Dec. 31, 2016 | |
Agreements and Obligations [Line Items] | |||
Special project bonds face amount | $ 800 | ||
Construction in progress, gross | $ 691 | ||
Construction obligation | 744 | ||
Financial Guarantee | Revolving Credit Facility | |||
Agreements and Obligations [Line Items] | |||
Aggregate commitments guaranteed | $ 800 | ||
JFK International Air Terminal LLC | |||
Agreements and Obligations [Line Items] | |||
Lease agreement, term | 33 years | ||
LAX Redevelopment Project | |||
Agreements and Obligations [Line Items] | |||
Redevelopment project, term | 7 years | ||
LaGuardia Airport Redevelopment Project | |||
Agreements and Obligations [Line Items] | |||
Number of new gates in redeveloped terminal | terminal_gate | 37 | ||
Number of new concourses in redeveloped terminal | concourse | 4 | ||
Increase in concessions space (percent) | 30.00% | ||
Port Authority contribution to redevelopment project | $ 600 |
Employee Benefit Plans - Benefi
Employee Benefit Plans - Benefit Obligations, Fair Value of Plan Assets and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit obligation, beginning of period | $ 20,859 | $ 20,611 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 853 | 917 | 884 |
Actuarial loss (gain) | 1,068 | 411 | |
Benefits paid, including lump sums and annuities | (1,075) | (1,071) | |
Participant contributions | 0 | 0 | |
Settlements | (9) | (9) | |
Benefit obligation, end of period | 21,696 | 20,859 | 20,611 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of plan assets, beginning of period | 10,301 | 9,374 | |
Actual gain (loss) on plan assets | 1,966 | 687 | |
Employer contributions | 3,561 | 1,320 | |
Participant contributions | 0 | 0 | |
Benefits paid, including lump sums and annuities | (1,075) | (1,071) | |
Settlements | (9) | (9) | |
Fair value of plan assets, end of period | 14,744 | 10,301 | 9,374 |
Defined Benefit Plan, Funded Status of Plan | |||
Funded status at end of period | (6,952) | (10,558) | |
Other Postretirement and Postemployment Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit obligation, beginning of period | 3,379 | 3,336 | |
Service cost | 87 | 68 | 62 |
Interest cost | 138 | 147 | 141 |
Actuarial loss (gain) | 183 | 115 | |
Benefits paid, including lump sums and annuities | (311) | (318) | |
Participant contributions | 28 | 31 | |
Settlements | 0 | 0 | |
Benefit obligation, end of period | 3,504 | 3,379 | 3,336 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair value of plan assets, beginning of period | 784 | 884 | |
Actual gain (loss) on plan assets | 138 | 51 | |
Employer contributions | 254 | 154 | |
Participant contributions | 28 | 31 | |
Benefits paid, including lump sums and annuities | (338) | (336) | |
Settlements | 0 | 0 | |
Fair value of plan assets, end of period | 866 | 784 | $ 884 |
Defined Benefit Plan, Funded Status of Plan | |||
Funded status at end of period | $ (2,638) | $ (2,595) |
Employee Benefit Plans - Balanc
Employee Benefit Plans - Balance Sheet Position (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Pension and Other Postretirement Defined Benefit Plans, Liabilities | ||
Noncurrent liabilities | $ (9,810) | $ (13,378) |
Pension Benefits | ||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | ||
Current liabilities | (32) | (30) |
Noncurrent liabilities | (6,920) | (10,528) |
Total liabilities | (6,952) | (10,558) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | ||
Net actuarial loss | (8,495) | (8,515) |
Prior service credit | 0 | 0 |
Total accumulated other comprehensive loss, pre-tax | (8,495) | (8,515) |
Other Postretirement and Postemployment Benefits | ||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | ||
Current liabilities | (121) | (125) |
Noncurrent liabilities | (2,517) | (2,470) |
Total liabilities | (2,638) | (2,595) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | ||
Net actuarial loss | (651) | (570) |
Prior service credit | 56 | 82 |
Total accumulated other comprehensive loss, pre-tax | $ (595) | $ (488) |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 853 | 917 | 884 |
Expected return on plan assets | (1,143) | (902) | (879) |
Amortization of prior service credit | 0 | 0 | 0 |
Recognized net actuarial loss | 262 | 233 | 232 |
Settlements | 3 | 3 | 3 |
Net periodic cost | (25) | 251 | 240 |
Other Postretirement and Postemployment Benefits | |||
Defined Benefit Plan Disclosure | |||
Service cost | 87 | 68 | 62 |
Interest cost | 138 | 147 | 141 |
Expected return on plan assets | (69) | (74) | (81) |
Amortization of prior service credit | (26) | (26) | (26) |
Recognized net actuarial loss | 32 | 24 | 24 |
Settlements | 0 | 0 | 0 |
Net periodic cost | $ 162 | $ 139 | $ 120 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used to Determine Benefit Obligation and Net Periodic Cost (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure | |||
Weighted average discount rate (percent) | 3.69% | 4.20% | |
Weighted average expected long-term rate of return on plan assets (percent) | 8.96% | 8.94% | 8.94% |
Assumed healthcare cost and trend rate (percent) | 7.00% | 6.50% | 7.00% |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Weighted average discount rate (percent) | 4.14% | 4.57% | 4.13% |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure | |||
Weighted average discount rate (percent) | 4.19% | 4.53% | 4.13% |
Other Postemployment Benefits | |||
Defined Benefit Plan Disclosure | |||
Weighted average discount rate (percent) | 4.14% | 4.50% | 4.13% |
Employee Benefit Plans - Health
Employee Benefit Plans - Healthcare Cost Trend Rates (Details) - Other Postretirement Benefits $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates | |
Effect of 1% increase on total service and interest cost | $ 1 |
Effect of 1% decrease on total service and interest cost | (1) |
Effect of 1% increase on the accumulated plan benefit obligation | 9 |
Effect of 1% decrease on the accumulated plan benefit obligation | $ (30) |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity | |
2,018 | $ 1,170 |
2,019 | 1,177 |
2,020 | 1,201 |
2,021 | 1,220 |
2,022 | 1,238 |
2023-2027 | 6,351 |
Other Postretirement and Postemployment Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity | |
2,018 | 284 |
2,019 | 291 |
2,020 | 296 |
2,021 | 297 |
2,022 | 296 |
2023-2027 | $ 1,417 |
Employee Benefit Plans - Bene70
Employee Benefit Plans - Benefit Plan Assets Measured at Fair Value on Recurring Basis(Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Equities and equity-related instruments | Common Stock | ||
Defined Benefit Plan, Funded Status of Plan | ||
Employer contributions | $ 350 | $ 350 |
Fair Value, Measurements, Recurring | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 15,322 | 10,811 |
Investments measured at net asset value (NAV) | 7,378 | 5,724 |
Benefit plan assets | 7,944 | 5,087 |
Fair Value, Measurements, Recurring | Equities and equity-related instruments | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 2,046 | 2,035 |
Investments measured at net asset value (NAV) | 1,375 | 1,214 |
Fair Value, Measurements, Recurring | Equities and equity-related instruments | Common Stock | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 801 | 386 |
Fair Value, Measurements, Recurring | Cash equivalents | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 1,432 | 1,468 |
Fair Value, Measurements, Recurring | Fixed income and fixed income-related instruments | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 3,665 | 1,198 |
Investments measured at net asset value (NAV) | 311 | 270 |
Fair Value, Measurements, Recurring | Level 1 | ||
Defined Benefit Plan, Funded Status of Plan | ||
Benefit plan assets | 3,586 | 2,643 |
Fair Value, Measurements, Recurring | Level 1 | Equities and equity-related instruments | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 2,033 | 2,021 |
Fair Value, Measurements, Recurring | Level 1 | Equities and equity-related instruments | Common Stock | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 801 | 386 |
Fair Value, Measurements, Recurring | Level 1 | Cash equivalents | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 735 | 228 |
Fair Value, Measurements, Recurring | Level 1 | Fixed income and fixed income-related instruments | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 17 | 8 |
Fair Value, Measurements, Recurring | Level 2 | ||
Defined Benefit Plan, Funded Status of Plan | ||
Benefit plan assets | 4,358 | 2,444 |
Fair Value, Measurements, Recurring | Level 2 | Equities and equity-related instruments | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 13 | 14 |
Fair Value, Measurements, Recurring | Level 2 | Equities and equity-related instruments | Common Stock | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Cash equivalents | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | 697 | 1,240 |
Fair Value, Measurements, Recurring | Level 2 | Fixed income and fixed income-related instruments | ||
Defined Benefit Plan, Funded Status of Plan | ||
Fair value of plan assets | $ 3,648 | $ 1,190 |
Employee Benefit Plans - Invest
Employee Benefit Plans - Investments Measured at NAV (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Hedge funds and hedge fund-related strategies | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Redemption Notice Period | 120 days | 120 days |
Hedge funds and hedge fund-related strategies | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Redemption Notice Period | 2 days | 4 days |
Commingled funds, private equity and private equity-related instruments | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Redemption Notice Period | 30 days | 30 days |
Commingled funds, private equity and private equity-related instruments | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Redemption Notice Period | 10 days | 15 days |
Fixed income and fixed income-related instruments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Redemption Notice Period | 5 days | |
Fixed income and fixed income-related instruments | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Redemption Notice Period | 15 days | |
Fixed income and fixed income-related instruments | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Redemption Notice Period | 3 days | |
Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Redemption Notice Period | 30 days | 2 days |
Fair Value, Measurements, Recurring | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value | $ 7,378 | $ 5,724 |
Unfunded Commitments | 94 | 1,054 |
Fair Value, Measurements, Recurring | Hedge funds and hedge fund-related strategies | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value | 4,768 | 3,308 |
Unfunded Commitments | 0 | 0 |
Fair Value, Measurements, Recurring | Commingled funds, private equity and private equity-related instruments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value | 1,375 | 1,214 |
Unfunded Commitments | 0 | 525 |
Fair Value, Measurements, Recurring | Fixed income and fixed income-related instruments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value | 311 | 270 |
Unfunded Commitments | 0 | 0 |
Fair Value, Measurements, Recurring | Real assets | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value | 924 | 698 |
Unfunded Commitments | 94 | 529 |
Fair Value, Measurements, Recurring | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value | 0 | 234 |
Unfunded Commitments | $ 0 | $ 0 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 01, 2017 | |
Defined Benefit Plan Disclosure | ||||||
Discount rate for amortization of unfunded liability for frozen defined benefit plan (percent) | 8.85% | |||||
Estimated funding by employer in next fiscal year | $ 500,000,000 | $ 500,000,000 | ||||
Defined contribution plan costs | $ 875,000,000 | $ 733,000,000 | $ 592,000,000 | |||
Assumed healthcare plan pre age | 65 years | |||||
Assumed healthcare plan post age | 65 years | |||||
Amount of net actuarial loss that will be amortized from AOCI in next fiscal year | $ 277,000,000 | $ 277,000,000 | ||||
Ultimate healthcare cost trend rate (percent) | 5.00% | 5.00% | ||||
Percent change assumed In healthcare cost trend metric | 1.00% | |||||
Weighted average expected long-term rate of return on plan assets (percent) | 8.96% | 8.94% | 8.94% | |||
Profit sharing | $ 1,065,000,000 | $ 1,115,000,000 | $ 1,490,000,000 | |||
Percent of threshold amount for profit sharing payout | 10.00% | |||||
Profit sharing threshold | $ 2,500,000,000 | |||||
Percent of amount above threshold for profit sharing payout | 20.00% | |||||
Delta Pilots | ||||||
Defined Benefit Plan Disclosure | ||||||
Percent of threshold amount for profit sharing payout | 10.00% | 10.00% | ||||
Profit sharing threshold | $ 2,500,000,000 | $ 2,500,000,000 | ||||
Percent of amount above threshold for profit sharing payout | 20.00% | 20.00% | ||||
Merit, Ground, Flight Attendant Employees | ||||||
Defined Benefit Plan Disclosure | ||||||
Percent of annual pre-tax profit for profit sharing payout | 10.00% | 10.00% | ||||
Percent of year-over-year increase in annual pre-tax profit for profit sharing payout | 20.00% | 20.00% | ||||
Growth-seeking assets | Maximum | ||||||
Defined Benefit Plan Disclosure | ||||||
Plan assets, target allocations (percent) | 50.00% | 50.00% | ||||
Growth-seeking assets | Minimum | ||||||
Defined Benefit Plan Disclosure | ||||||
Plan assets, target allocations (percent) | 40.00% | 40.00% | ||||
Income-generating assets | Maximum | ||||||
Defined Benefit Plan Disclosure | ||||||
Plan assets, target allocations (percent) | 30.00% | 30.00% | ||||
Income-generating assets | Minimum | ||||||
Defined Benefit Plan Disclosure | ||||||
Plan assets, target allocations (percent) | 20.00% | 20.00% | ||||
Risk-diversifying assets | Maximum | ||||||
Defined Benefit Plan Disclosure | ||||||
Plan assets, target allocations (percent) | 30.00% | 30.00% | ||||
Risk-diversifying assets | Minimum | ||||||
Defined Benefit Plan Disclosure | ||||||
Plan assets, target allocations (percent) | 25.00% | 25.00% |
Commitments and Contingencies -
Commitments and Contingencies - Aircraft Purchase Commitments and Contract Carrier Agreements (Details) $ in Millions | Dec. 31, 2017USD ($)aircraft |
Future aircraft purchase commitments | |
Unrecorded Unconditional Purchase Obligation | |
2,018 | $ 3,570 |
2,019 | 3,370 |
2,020 | 3,270 |
2,021 | 3,880 |
2,022 | 2,450 |
Thereafter | 1,740 |
Total | $ 18,280 |
Aircraft purchase commitments, minimum quantity required | aircraft | 353 |
Future aircraft purchase commitments | A321-200 | |
Unrecorded Unconditional Purchase Obligation | |
Aircraft purchase commitments, minimum quantity required | aircraft | 93 |
Future aircraft purchase commitments | A321-200neo | |
Unrecorded Unconditional Purchase Obligation | |
Aircraft purchase commitments, minimum quantity required | aircraft | 100 |
Future aircraft purchase commitments | A330-900neo | |
Unrecorded Unconditional Purchase Obligation | |
Aircraft purchase commitments, minimum quantity required | aircraft | 25 |
Future aircraft purchase commitments | A350-900 | |
Unrecorded Unconditional Purchase Obligation | |
Aircraft purchase commitments, minimum quantity required | aircraft | 19 |
Future aircraft purchase commitments | B-737-900ER | |
Unrecorded Unconditional Purchase Obligation | |
Aircraft purchase commitments, minimum quantity required | aircraft | 41 |
Future aircraft purchase commitments | CS100 | |
Unrecorded Unconditional Purchase Obligation | |
Aircraft purchase commitments, minimum quantity required | aircraft | 75 |
Airline capacity purchase arrangements | |
Unrecorded Unconditional Purchase Obligation | |
2,018 | $ 1,772 |
2,019 | 1,603 |
2,020 | 1,320 |
2,021 | 793 |
2,022 | 723 |
Thereafter | 1,975 |
Total | $ 8,186 |
Commitments and Contingencies74
Commitments and Contingencies - Aircraft Purchase Commitments Narrative (Details) - Future aircraft purchase commitments | 12 Months Ended |
Dec. 31, 2017aircraft | |
A321-200 | |
Unrecorded Unconditional Purchase Obligation | |
Expanded agreement for additional aircraft | 45 |
A350-900 | |
Unrecorded Unconditional Purchase Obligation | |
Number of aircraft with deferred delivery | 10 |
A321-200neo | |
Unrecorded Unconditional Purchase Obligation | |
Expanded agreement for additional aircraft | 100 |
Option agreement for future purchase of additional aircraft | 100 |
Minimum | A350-900 | |
Unrecorded Unconditional Purchase Obligation | |
Period of deferment | 2 years |
Maximum | A350-900 | |
Unrecorded Unconditional Purchase Obligation | |
Period of deferment | 3 years |
Commitments and Contingencies75
Commitments and Contingencies - Employee Under Collective Bargaining Agreements (Details) | Dec. 31, 2017employee |
Other Commitments [Line Items] | |
Entity number of employees | 87,000 |
Delta Pilots - Represented by Unions | |
Other Commitments [Line Items] | |
Entity number of employees | 13,234 |
Delta Flight Superintendents (Dispatchers) - Represented by Unions | |
Other Commitments [Line Items] | |
Entity number of employees | 420 |
Endeavor Air Pilots - Represented by Unions | |
Other Commitments [Line Items] | |
Entity number of employees | 1,805 |
Endeavor Air Flight Attendants - Represented by Unions | |
Other Commitments [Line Items] | |
Entity number of employees | 1,160 |
Endeavor Air Dispatchers - Represented by Unions | |
Other Commitments [Line Items] | |
Entity number of employees | 55 |
Commitments and Contingencies76
Commitments and Contingencies - Employees Under Collective Bargaining Agreements Narrative (Details) | Dec. 31, 2017employee |
Other Commitments [Line Items] | |
Entity number of employees | 87,000 |
Percentage of employees represented by unions under collective bargaining agreements | 19.00% |
Refinery Employees | |
Other Commitments [Line Items] | |
Entity number of employees | 192 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax (provision) benefit: | |||
Federal | $ (4) | $ 0 | $ (23) |
State and local | 5 | (28) | (25) |
International | (54) | (12) | (2) |
Deferred tax provision: | |||
Federal | (1,911) | (2,080) | (2,409) |
State and local | (160) | (143) | (172) |
Income Tax (Provision) Benefit | $ (2,124) | $ (2,263) | $ (2,631) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Effective Income Tax Rate Reconciliation, Percent | ||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |
State taxes, net of federal benefit | 1.80% | 1.80% | 1.80% | |
Decrease in valuation allowance | 0.00% | 0.00% | (0.20%) | |
Foreign tax rate differential | (2.20%) | (2.00%) | 0.00% | |
Tax Cuts and Jobs Act adjustment | 2.60% | 2.60% | 0.00% | 0.00% |
Other | 0.00% | (0.70%) | 0.20% | |
Effective income tax rate | 37.20% | 34.10% | 36.80% |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 1,440 | $ 2,485 |
Pension, postretirement and other benefits | 2,545 | 5,259 |
Alternative minimum tax credit carryforward | 379 | 379 |
Deferred revenue | 1,024 | 1,544 |
Other | 746 | 1,075 |
Valuation allowance | (19) | (40) |
Total deferred tax assets | 6,115 | 10,702 |
Deferred tax liabilities: | ||
Depreciation | 3,936 | 5,701 |
Intangible assets | 1,070 | 1,691 |
Other | 174 | 246 |
Total deferred tax liabilities | 5,180 | 7,638 |
Net deferred tax assets | $ 935 | $ 3,064 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||||
Provisional tax expense estimate as a result of enactment of Tax Cuts and Jobs Act | $ 150 | |||
Increase in effective tax rate due to Tax Cuts and Jobs Act (percent) | 2.60% | 2.60% | 0.00% | 0.00% |
Foreign earnings on which tax assessed | $ 732 | $ 732 | ||
Undistributed earnings of foreign subsidiaries | $ 379 | |||
AMT credit carryforwards | 379 | 379 | $ 379 | |
Operating loss carryforwards | $ 5,100 | $ 5,100 | ||
Operating loss carryforwards, expiration dates | Jan. 1, 2027 | |||
Deferred income taxes, pension obligation | $ 700 | |||
Pension obligation, time frame for extinguishment | 25 years |
Equity and Equity Compensation
Equity and Equity Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Capital stock, shares authorized | 2,000,000,000 | ||
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 | |
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized | 500,000,000 | ||
Treasury stock acquired, weighted average cost per share (usd per share) | $ 21.19 | $ 19.40 | |
Number of shares authorized for issuance under the Plan (shares) | 163,000,000 | ||
Capital shares reserved for future issuance (shares) | 30,000,000 | ||
Share-based compensation | $ 108 | $ 105 | $ 76 |
Compensation cost not yet recognized | $ 82 | ||
Unvested restricted stock awards (shares) | 2,600,000 | ||
Outstanding stock option awards (shares) | 1,900,000 | ||
Outstanding stock option awards exercisable, weighted average exercise price (usd per share) | $ 38.59 | ||
Number of exercisable stock option awards (shares) | 771,000 | ||
Excess tax benefits | $ 21 | $ 33 |
Accumulated Other Comprehensi82
Accumulated Other Comprehensive Loss - Schedule of AOCI Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | $ 12,287 | $ 10,850 | $ 8,813 |
Change in value (net of tax effect) | (137) | (459) | 8 |
Reclassification into earnings (net of tax effect) | 152 | 98 | 28 |
Ending balance | 13,910 | 12,287 | 10,850 |
AOCI beginning balance, tax effect | (1,458) | (1,222) | (1,279) |
Changes in value, tax effect | (32) | (293) | 41 |
Reclassifications into earnings, tax effect | 90 | 57 | 16 |
AOCI ending balance, tax effect | (1,400) | (1,458) | (1,222) |
Deferred income taxes, pension obligation | 700 | ||
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | (7,636) | (7,275) | (7,311) |
Ending balance | (7,621) | (7,636) | (7,275) |
Pension and Other Benefits Liabilities | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | (7,714) | (7,354) | (7,517) |
Change in value (net of tax effect) | (264) | (482) | 10 |
Reclassification into earnings (net of tax effect) | 166 | 122 | 153 |
Ending balance | (7,812) | (7,714) | (7,354) |
Deferred income taxes, pension obligation | 700 | ||
Derivative Contracts | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | 97 | 140 | 222 |
Change in value (net of tax effect) | (21) | (19) | 43 |
Reclassification into earnings (net of tax effect) | (6) | (24) | (125) |
Ending balance | 70 | 97 | 140 |
Investments | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance | (19) | (61) | (16) |
Change in value (net of tax effect) | 148 | 42 | (45) |
Reclassification into earnings (net of tax effect) | (8) | 0 | 0 |
Ending balance | $ 121 | $ (19) | $ (61) |
Segments and Geographic Infor83
Segments and Geographic Information - Schedule of Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information, Profit (Loss) | |||||||||||
Operating revenue | $ 10,245 | $ 11,060 | $ 10,791 | $ 9,148 | $ 9,458 | $ 10,483 | $ 10,447 | $ 9,251 | $ 41,244 | $ 39,639 | $ 40,704 |
Operating income (loss) | 1,193 | $ 1,839 | $ 2,028 | $ 1,053 | 1,020 | $ 1,969 | $ 2,423 | $ 1,540 | 6,114 | 6,952 | 7,802 |
Interest expense (income), net | 396 | 388 | 481 | ||||||||
Depreciation and amortization | 2,235 | 1,902 | 1,835 | ||||||||
Total assets | 53,292 | 51,261 | 53,292 | 51,261 | 53,134 | ||||||
Capital expenditures | 3,891 | 3,391 | 2,945 | ||||||||
Operating Segments | Airline | |||||||||||
Segment Reporting Information, Profit (Loss) | |||||||||||
Operating revenue | 40,742 | 39,406 | 40,398 | ||||||||
Operating income (loss) | 6,004 | 7,077 | 7,512 | ||||||||
Interest expense (income), net | 403 | 386 | 481 | ||||||||
Depreciation and amortization | 2,188 | 1,862 | 1,805 | ||||||||
Total assets | 51,165 | 49,930 | 51,165 | 49,930 | 51,785 | ||||||
Capital expenditures | 3,743 | 3,270 | 2,853 | ||||||||
Operating Segments | Refinery | |||||||||||
Segment Reporting Information, Profit (Loss) | |||||||||||
Operating revenue | 5,039 | 3,843 | 4,741 | ||||||||
Operating income (loss) | 110 | (125) | 290 | ||||||||
Interest expense (income), net | (7) | 2 | 0 | ||||||||
Depreciation and amortization | 47 | 40 | 30 | ||||||||
Total assets | $ 2,127 | $ 1,331 | 2,127 | 1,331 | 1,349 | ||||||
Capital expenditures | 148 | 121 | 92 | ||||||||
Intersegment Sales/Other | Sales to airline segment | |||||||||||
Segment Reporting Information, Profit (Loss) | |||||||||||
Operating revenue | (886) | (695) | (990) | ||||||||
Intersegment Sales/Other | Exchanged products | |||||||||||
Segment Reporting Information, Profit (Loss) | |||||||||||
Operating revenue | (3,240) | (2,658) | (3,108) | ||||||||
Intersegment Sales/Other | Sales of refined products | |||||||||||
Segment Reporting Information, Profit (Loss) | |||||||||||
Operating revenue | $ (411) | $ (257) | $ (337) |
Segments and Geographic Infor84
Segments and Geographic Information - Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||||||||||
Operating revenue | $ 10,245 | $ 11,060 | $ 10,791 | $ 9,148 | $ 9,458 | $ 10,483 | $ 10,447 | $ 9,251 | $ 41,244 | $ 39,639 | $ 40,704 |
Domestic | |||||||||||
Revenues | |||||||||||
Operating revenue | 29,556 | 28,108 | 27,884 | ||||||||
Atlantic | |||||||||||
Revenues | |||||||||||
Operating revenue | 6,044 | 5,919 | 6,505 | ||||||||
Pacific | |||||||||||
Revenues | |||||||||||
Operating revenue | 2,730 | 2,939 | 3,503 | ||||||||
Latin America | |||||||||||
Revenues | |||||||||||
Operating revenue | $ 2,914 | $ 2,673 | $ 2,812 |
Segments and Geographic Infor85
Segments and Geographic Information - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||||||||||
Number of operating segments | segment | 2 | ||||||||||
Operating revenue | $ (10,245) | $ (11,060) | $ (10,791) | $ (9,148) | $ (9,458) | $ (10,483) | $ (10,447) | $ (9,251) | $ (41,244) | $ (39,639) | $ (40,704) |
Intersegment Sales/Other | Exchanged products | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Operating revenue | $ 3,240 | $ 2,658 | $ 3,108 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Balances and Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve | |||
Liability at beginning of period | $ 333 | $ 467 | $ 504 |
Payments | (103) | (144) | (127) |
Additional expenses and other | 7 | 10 | 90 |
Liability at end of period | $ 237 | $ 333 | $ 467 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 572 | $ 1,178 | $ 1,224 | $ 603 | $ 622 | $ 1,259 | $ 1,546 | $ 946 | $ 3,577 | $ 4,373 | $ 4,526 |
Basic weighted average shares outstanding (shares) | 720 | 751 | 797 | ||||||||
Dilutive effect of share-based awards (shares) | 3 | 4 | 7 | ||||||||
Diluted weighted average shares outstanding (shares) | 723 | 755 | 804 | ||||||||
Basic earnings per share (usd per share) | $ 0.81 | $ 1.64 | $ 1.68 | $ 0.83 | $ 0.85 | $ 1.70 | $ 2.04 | $ 1.22 | $ 4.97 | $ 5.82 | $ 5.68 |
Diluted earnings per share (usd per share) | $ 0.80 | $ 1.64 | $ 1.68 | $ 0.82 | $ 0.84 | $ 1.69 | $ 2.03 | $ 1.21 | $ 4.95 | $ 5.79 | $ 5.63 |
Quarterly Financial Data (Una88
Quarterly Financial Data (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenue | $ 10,245 | $ 11,060 | $ 10,791 | $ 9,148 | $ 9,458 | $ 10,483 | $ 10,447 | $ 9,251 | $ 41,244 | $ 39,639 | $ 40,704 |
Operating income | 1,193 | 1,839 | 2,028 | 1,053 | 1,020 | 1,969 | 2,423 | 1,540 | 6,114 | 6,952 | 7,802 |
Net Income | $ 572 | $ 1,178 | $ 1,224 | $ 603 | $ 622 | $ 1,259 | $ 1,546 | $ 946 | $ 3,577 | $ 4,373 | $ 4,526 |
Basic earnings per share (usd per share) | $ 0.81 | $ 1.64 | $ 1.68 | $ 0.83 | $ 0.85 | $ 1.70 | $ 2.04 | $ 1.22 | $ 4.97 | $ 5.82 | $ 5.68 |
Diluted earnings per share (usd per share) | $ 0.80 | $ 1.64 | $ 1.68 | $ 0.82 | $ 0.84 | $ 1.69 | $ 2.03 | $ 1.21 | $ 4.95 | $ 5.79 | $ 5.63 |