Gross Amount of Recognized | Gross Amount of Cash Collateral | Net Amount Presented in Balance Sheet | ||||||||||||||||||
Assets | Liabilities | Offset | Assets | Liabilities | ||||||||||||||||
As of December 31, 2015 | ||||||||||||||||||||
Fuel derivatives | $ | — | $ | 5 | $ | — | $ | — | $ | 5 | ||||||||||
Interest rate derivatives | — | — | — | — | — | |||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Fuel derivatives | $ | — | $ | 102 | $ | 51 | $ | — | $ | 51 | ||||||||||
Interest rate derivatives | — | 1 | 1 | — | — |
Jet fuel swap agreements | Jet fuel collar agreements | Heating oil collar agreements | Total | |||||
First Quarter 2016 | —% | —% | —% | —% | ||||
Second Quarter 2016 | —% | —% | —% | —% | ||||
Third Quarter 2016 | 10% | —% | —% | 10% | ||||
Fourth Quarter 2016 | 10% | —% | —% | 10% |
December 31, 2015 | December 31, 2014 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
Public Debt | ||||||||||||||||
Floating rate enhanced equipment notes | ||||||||||||||||
Class G-1, due 2016 | $ | 16 | $ | 16 | $ | 35 | $ | 35 | ||||||||
Class G-2, due 2016 | 185 | 184 | 185 | 180 | ||||||||||||
Fixed rate special facility bonds, due through 2036 | 43 | 45 | 77 | 78 | ||||||||||||
6.75% convertible debentures due in 2039 | 86 | 405 | 86 | 283 | ||||||||||||
5.5% convertible debentures due in 2038 | — | — | 68 | 241 | ||||||||||||
Non-Public Debt | ||||||||||||||||
Fixed rate enhanced equipment notes, due through 2023 | 201 | 209 | 217 | 224 | ||||||||||||
Floating rate equipment notes, due through 2025 | 193 | 195 | 276 | 277 | ||||||||||||
Fixed rate equipment notes, due through 2026 | 964 | 1,042 | 1,119 | 1,211 | ||||||||||||
Total | $ | 1,688 | $ | 2,096 | $ | 2,063 | $ | 2,529 |
Aircraft Fuel Derivatives(1) | Interest Rate Swaps(2) | Total | ||||||||||
Balance of accumulated losses at December 31, 2012 | (1 | ) | (7 | ) | (8 | ) | ||||||
Reclassifications into earnings (net of $7 of taxes) | 6 | 5 | 11 | |||||||||
Change in fair value (net of $(2) of taxes) | (4 | ) | 1 | (3 | ) | |||||||
Balance of accumulated income (losses), at December 31, 2013 | 1 | (1 | ) | — | ||||||||
Reclassifications into earnings (net of $12 of taxes) | 18 | 1 | 19 | |||||||||
Change in fair value (net of $(52) of taxes) | (82 | ) | — | (82 | ) | |||||||
Balance of accumulated losses, at December 31, 2014 | $ | (63 | ) | $ | — | $ | (63 | ) | ||||
Reclassifications into earnings (net of $49 of taxes) | 77 | 1 | 78 | |||||||||
Change in fair value (net of $(11) of taxes) | (18 | ) | — | (18 | ) | |||||||
Balance of accumulated losses, at December 31, 2015 | (4 | ) | 1 | (3 | ) | |||||||
(1) Reclassified to aircraft fuel expense | ||||||||||||
(2) Reclassified to interest expense |
2015 | 2014 | |||||||||||||
Secured Debt | ||||||||||||||
Floating rate equipment notes, due through 2025(1) | $ | 193 | 3.7 | % | $ | 276 | 3.2 | % | ||||||
Floating rate enhanced equipment notes(2) | ||||||||||||||
Class G-1, due 2016 | 16 | 4.4 | % | 35 | 4.4 | % | ||||||||
Class G-2, due 2016 | 185 | 1.0 | % | 185 | 1.0 | % | ||||||||
Fixed rate enhanced equipment notes, due through 2023(3) | 201 | 4.5 | % | 217 | 4.5 | % | ||||||||
Fixed rate equipment notes, due through 2026 | 964 | 5.5 | % | 1,119 | 5.6 | % | ||||||||
Fixed rate special facility bonds, due through 2036(4) | 43 | 4.9 | % | 77 | 5.0 | % | ||||||||
Unsecured Debt | ||||||||||||||
6.75% convertible debentures due in 2039(5) | 86 | 86 | ||||||||||||
5.5% convertible debentures due in 2038(6) | — | 68 | ||||||||||||
Capital Leases(7) | 155 | 4.1 | % | 170 | 4.1 | % | ||||||||
Total debt and capital lease obligations | 1,843 | 2,233 | ||||||||||||
Less: Current maturities | (448 | ) | (265 | ) | ||||||||||
Long-term debt and capital lease obligations | $ | 1,395 | $ | 1,968 |
Year | Maturities | |||
2016 | $ | 448 | ||
2017 | 189 | |||
2018 | 196 | |||
2019 | 217 | |||
2020 | 180 | |||
Thereafter | 613 |
December 31, 2015 | December 31, 2014 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
Public Debt | ||||||||||||||||
Floating rate enhanced equipment notes | ||||||||||||||||
Class G-1, due 2016 | $ | 16 | $ | 16 | $ | 35 | $ | 35 | ||||||||
Class G-2, due 2016 | 185 | 184 | 185 | 180 | ||||||||||||
Fixed rate special facility bonds, due through 2036 | 43 | 45 | 77 | 78 | ||||||||||||
6.75% convertible debentures due in 2039 | 86 | 405 | 86 | 283 | ||||||||||||
5.5% convertible debentures due in 2038 | — | — | 68 | 241 | ||||||||||||
Non-Public Debt | ||||||||||||||||
Fixed rate enhanced equipment notes, due through 2023 | 201 | 209 | 217 | 224 | ||||||||||||
Floating rate equipment notes, due through 2025 | 193 | 195 | 276 | 277 | ||||||||||||
Fixed rate equipment notes, due through 2026 | 964 | 1,042 | 1,119 | 1,211 | ||||||||||||
Total | $ | 1,688 | $ | 2,096 | $ | 2,063 | $ | 2,529 |
Jet fuel swap agreements | Jet fuel collar agreements | Heating oil collar agreements | Total | |||||
First Quarter 2016 | —% | —% | —% | —% | ||||
Second Quarter 2016 | —% | —% | —% | —% | ||||
Third Quarter 2016 | 10% | —% | —% | 10% | ||||
Fourth Quarter 2016 | 10% | —% | —% | 10% |
As of December 31, | ||||||||
2015 | 2014 | |||||||
Fuel derivatives | ||||||||
Asset fair value recorded in prepaid expenses and other(1) | $ | — | $ | — | ||||
Liability fair value recorded in other accrued liabilities(1) | 5 | 102 | ||||||
Longest remaining term (months) | 12 | 12 | ||||||
Hedged volume (barrels, in thousands) | 900 | 2,808 | ||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | 4 | 102 | ||||||
Interest rate derivatives | ||||||||
Liability fair value recorded in other long term liabilities(2) | — | 1 | ||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | — | 1 |
2015 | 2014 | 2013 | ||||||||||
Fuel derivatives | ||||||||||||
Hedge effectiveness losses recognized in aircraft fuel expense | $ | 126 | $ | 30 | $ | 10 | ||||||
(Losses) gains on derivatives not qualifying for hedge accounting recognized in other expense | (1 | ) | 2 | — | ||||||||
Hedge losses on derivatives recognized in comprehensive income | 29 | 134 | 6 | |||||||||
Percentage of actual consumption economically hedged | 17 | % | 20 | % | 21 | % | ||||||
Interest rate derivatives | ||||||||||||
Hedge losses on derivatives recognized in interest expense | 1 | 1 | 8 | |||||||||
Hedge gains on derivatives recognized in comprehensive income | — | — | 1 |
(1) | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty and prior to impact of collateral paid. |
(2) | Gross liability prior to impact of collateral posted. |
Gross Amount of Recognized | Gross Amount of Cash Collateral | Net Amount Presented in Balance Sheet | ||||||||||||||||||
Assets | Liabilities | Offset | Assets | Liabilities | ||||||||||||||||
As of December 31, 2015 | ||||||||||||||||||||
Fuel derivatives | $ | — | $ | 5 | $ | — | $ | — | $ | 5 | ||||||||||
Interest rate derivatives | — | — | — | — | — | |||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Fuel derivatives | $ | — | $ | 102 | $ | 51 | $ | — | $ | 51 | ||||||||||
Interest rate derivatives | — | 1 | 1 | — | — |
Shares | Weighted Average Grant Date Fair Value | ||||||
Nonvested at beginning of year | 3.8 | $ | 7.18 | ||||
Granted | 0.9 | 17.09 | |||||
Vested | (1.9 | ) | 6.77 | ||||
Forfeited | (0.3 | ) | 8.29 | ||||
Nonvested at end of year | 2.5 | $ | 10.94 |
Shares | Weighted Average Grant Date Fair Value | ||||||
Outstanding at beginning of year | 6.0 | $ | 12.38 | ||||
Exercised | (4.7 | ) | 12.63 | ||||
Forfeited | — | — | |||||
Expired | — | — | |||||
Outstanding at end of year | 1.3 | $ | 11.40 | ||||
Vested at end of year | 1.3 | $ | 11.40 |
2015 | 2014 | 2013 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 677 | $ | 401 | $ | 168 | ||||||
Effect of dilutive securities: | ||||||||||||
Interest on convertible debt, net of income taxes and profit sharing | 4 | 7 | 9 | |||||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ | 681 | $ | 408 | $ | 177 | ||||||
Denominator: | ||||||||||||
Weighted average shares outstanding for basic earnings per share | 315.1 | 294.7 | 282.8 | |||||||||
Effect of dilutive securities: | ||||||||||||
Employee stock options and restricted stock units | 2.8 | 2.4 | 2.1 | |||||||||
Convertible debt | 26.9 | 46.2 | 58.6 | |||||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 344.8 | 343.3 | 343.5 | |||||||||
Shares excluded from EPS calculation: | ||||||||||||
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | — | 6.9 | 13.8 |
As of December 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 147 | $ | — | $ | — | $ | 147 | ||||||||
Available-for-sale investment securities | 75 | 180 | — | 255 | ||||||||||||
Aircraft fuel derivatives | — | — | — | — | ||||||||||||
$ | 222 | $ | 180 | $ | — | $ | 402 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | — | 5 | — | 5 | ||||||||||||
Interest rate swap | — | — | — | — | ||||||||||||
$ | — | $ | 5 | $ | — | $ | 5 |
As of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 153 | $ | — | $ | — | $ | 153 | ||||||||
Available-for-sale investment securities | — | 125 | — | 125 | ||||||||||||
Aircraft fuel derivatives | $ | — | $ | — | $ | — | $ | — | ||||||||
$ | 153 | $ | 125 | $ | — | $ | 278 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | $ | — | $ | 102 | $ | — | $ | 102 | ||||||||
Interest rate swap | — | 1 | — | 1 | ||||||||||||
$ | — | $ | 103 | $ | — | $ | 103 |
2015 | 2014 | 2013 | ||||||||||
Deferred: | ||||||||||||
Federal | $ | 351 | $ | 192 | $ | 95 | ||||||
State | 26 | 20 | 12 | |||||||||
Deferred income tax expense | 377 | 212 | 107 | |||||||||
Current: | ||||||||||||
Federal | 20 | 2 | — | |||||||||
State and other | 23 | 8 | 4 | |||||||||
Current income tax expense | 43 | 10 | 4 | |||||||||
Total income tax expense | $ | 420 | $ | 222 | $ | 111 |
2015 | 2014 | 2013 | ||||||||||
Income tax expense at statutory rate | $ | 384 | $ | 218 | $ | 98 | ||||||
Increase resulting from: | ||||||||||||
State income tax, net of federal benefit | 28 | 18 | 9 | |||||||||
Valuation Allowance, federal and state | — | (19 | ) | — | ||||||||
Other, net | 8 | 5 | 4 | |||||||||
Total income tax expense | $ | 420 | $ | 222 | $ | 111 |
2015 | 2014 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 15 | $ | 152 | ||||
Employee benefits | 39 | 41 | ||||||
Deferred revenue/gains | 104 | 102 | ||||||
Rent expense | 33 | 30 | ||||||
Terminal 5 lease | 36 | 32 | ||||||
Other | 32 | 27 | ||||||
Financial derivative instruments | 2 | 40 | ||||||
Deferred tax assets, net | 261 | 424 | ||||||
Deferred tax liabilities: | ||||||||
Accelerated depreciation | (1,334 | ) | (1,082 | ) | ||||
Deferred tax liabilities, net | (1,334 | ) | (1,082 | ) | ||||
Net deferred tax liability | $ | (1,073 | ) | $ | (658 | ) |
2015 | 2014 | 2013 | ||||||||||
Unrecognized tax benefits at January 1, | $ | 16 | $ | 11 | $ | 13 | ||||||
Increases for tax positions taken during a prior period | — | 2 | — | |||||||||
Increases for tax positions taken during the period | 6 | 4 | 2 | |||||||||
Decreases for tax positions taken during a prior period | (1 | ) | (1 | ) | — | |||||||
Decreases for settlement with tax authorities during the period | — | — | (4 | ) | ||||||||
Unrecognized tax benefits December 31, | $ | 21 | $ | 16 | $ | 11 |
Aircraft | Other | Total | ||||||||||
2016 | $ | 83 | $ | 87 | $ | 170 | ||||||
2017 | 79 | 72 | 151 | |||||||||
2018 | 77 | 66 | 143 | |||||||||
2019 | 59 | 63 | 122 | |||||||||
2020 | 53 | 56 | 109 | |||||||||
Thereafter | 163 | 445 | 608 | |||||||||
Total minimum operating lease payments | $ | 514 | $ | 789 | $ | 1,303 |
2015 | 2014 | |||||||
Available-for-sale securities | ||||||||
Time deposits | $ | 125 | $ | 125 | ||||
Commercial paper | 55 | — | ||||||
Treasury bills | 75 | — | ||||||
Total available-for-sale securities | 255 | 125 | ||||||
Held-to-maturity securities | ||||||||
Corporate bonds | 322 | 254 | ||||||
Treasury notes | 30 | — | ||||||
Time deposits | — | 48 | ||||||
Total held-to-maturity securities | 352 | 302 | ||||||
Total investment securities | $ | 607 | $ | 427 |
Property and Equipment Type | Estimated Useful Life | Residual Value | |||
Aircraft | 25 years | 20 | % | ||
In-flight entertainment systems | 5-10 years | 0 | % | ||
Aircraft parts | Fleet life | 10 | % | ||
Flight equipment leasehold improvements | Lower of lease term or economic life | 0 | % | ||
Ground property and equipment | 2-10 years | 0 | % | ||
Leasehold improvements—other | Lower of lease term or economic life | 0 | % | ||
Buildings on leased land | Lease term | 0 | % |
Property and Equipment Type | Estimated Useful Life | Residual Value | |||
Aircraft | 25 years | 20 | % | ||
In-flight entertainment systems | 5-10 years | 0 | % | ||
Aircraft parts | Fleet life | 10 | % | ||
Flight equipment leasehold improvements | Lower of lease term or economic life | 0 | % | ||
Ground property and equipment | 2-10 years | 0 | % | ||
Leasehold improvements—other | Lower of lease term or economic life | 0 | % | ||
Buildings on leased land | Lease term | 0 | % |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
2015 | ||||||||||||||||
Operating revenues | $ | 1,523 | $ | 1,612 | $ | 1,687 | $ | 1,594 | ||||||||
Operating income | 253 | 282 | 351 | 330 | ||||||||||||
Net income | 137 | 152 | 198 | 190 | ||||||||||||
Basic earnings per share | $ | 0.44 | $ | 0.48 | $ | 0.63 | $ | 0.60 | ||||||||
Diluted earnings per share | $ | 0.40 | $ | 0.44 | $ | 0.58 | $ | 0.56 | ||||||||
2014(1) | ||||||||||||||||
Operating revenues | $ | 1,349 | $ | 1,493 | $ | 1,529 | $ | 1,446 | ||||||||
Operating income | 41 | 141 | 164 | 169 | ||||||||||||
Net income | 4 | 230 | 79 | 88 | ||||||||||||
Basic earnings per share | $ | 0.01 | $ | 0.79 | $ | 0.27 | $ | 0.29 | ||||||||
Diluted earnings per share | $ | 0.01 | $ | 0.68 | $ | 0.24 | $ | 0.26 |
Aircraft Fuel Derivatives(1) | Interest Rate Swaps(2) | Total | ||||||||||
Balance of accumulated losses at December 31, 2012 | (1 | ) | (7 | ) | (8 | ) | ||||||
Reclassifications into earnings (net of $7 of taxes) | 6 | 5 | 11 | |||||||||
Change in fair value (net of $(2) of taxes) | (4 | ) | 1 | (3 | ) | |||||||
Balance of accumulated income (losses), at December 31, 2013 | 1 | (1 | ) | — | ||||||||
Reclassifications into earnings (net of $12 of taxes) | 18 | 1 | 19 | |||||||||
Change in fair value (net of $(52) of taxes) | (82 | ) | — | (82 | ) | |||||||
Balance of accumulated losses, at December 31, 2014 | $ | (63 | ) | $ | — | $ | (63 | ) | ||||
Reclassifications into earnings (net of $49 of taxes) | 77 | 1 | 78 | |||||||||
Change in fair value (net of $(11) of taxes) | (18 | ) | — | (18 | ) | |||||||
Balance of accumulated losses, at December 31, 2015 | (4 | ) | 1 | (3 | ) | |||||||
(1) Reclassified to aircraft fuel expense | ||||||||||||
(2) Reclassified to interest expense |
2015 | 2014 | 2013 | ||||||||||
Deferred: | ||||||||||||
Federal | $ | 351 | $ | 192 | $ | 95 | ||||||
State | 26 | 20 | 12 | |||||||||
Deferred income tax expense | 377 | 212 | 107 | |||||||||
Current: | ||||||||||||
Federal | 20 | 2 | — | |||||||||
State and other | 23 | 8 | 4 | |||||||||
Current income tax expense | 43 | 10 | 4 | |||||||||
Total income tax expense | $ | 420 | $ | 222 | $ | 111 |
2015 | 2014 | |||||||||||||
Secured Debt | ||||||||||||||
Floating rate equipment notes, due through 2025(1) | $ | 193 | 3.7 | % | $ | 276 | 3.2 | % | ||||||
Floating rate enhanced equipment notes(2) | ||||||||||||||
Class G-1, due 2016 | 16 | 4.4 | % | 35 | 4.4 | % | ||||||||
Class G-2, due 2016 | 185 | 1.0 | % | 185 | 1.0 | % | ||||||||
Fixed rate enhanced equipment notes, due through 2023(3) | 201 | 4.5 | % | 217 | 4.5 | % | ||||||||
Fixed rate equipment notes, due through 2026 | 964 | 5.5 | % | 1,119 | 5.6 | % | ||||||||
Fixed rate special facility bonds, due through 2036(4) | 43 | 4.9 | % | 77 | 5.0 | % | ||||||||
Unsecured Debt | ||||||||||||||
6.75% convertible debentures due in 2039(5) | 86 | 86 | ||||||||||||
5.5% convertible debentures due in 2038(6) | — | 68 | ||||||||||||
Capital Leases(7) | 155 | 4.1 | % | 170 | 4.1 | % | ||||||||
Total debt and capital lease obligations | 1,843 | 2,233 | ||||||||||||
Less: Current maturities | (448 | ) | (265 | ) | ||||||||||
Long-term debt and capital lease obligations | $ | 1,395 | $ | 1,968 |
2015 | 2014 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 15 | $ | 152 | ||||
Employee benefits | 39 | 41 | ||||||
Deferred revenue/gains | 104 | 102 | ||||||
Rent expense | 33 | 30 | ||||||
Terminal 5 lease | 36 | 32 | ||||||
Other | 32 | 27 | ||||||
Financial derivative instruments | 2 | 40 | ||||||
Deferred tax assets, net | 261 | 424 | ||||||
Deferred tax liabilities: | ||||||||
Accelerated depreciation | (1,334 | ) | (1,082 | ) | ||||
Deferred tax liabilities, net | (1,334 | ) | (1,082 | ) | ||||
Net deferred tax liability | $ | (1,073 | ) | $ | (658 | ) |
As of December 31, | ||||||||
2015 | 2014 | |||||||
Fuel derivatives | ||||||||
Asset fair value recorded in prepaid expenses and other(1) | $ | — | $ | — | ||||
Liability fair value recorded in other accrued liabilities(1) | 5 | 102 | ||||||
Longest remaining term (months) | 12 | 12 | ||||||
Hedged volume (barrels, in thousands) | 900 | 2,808 | ||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | 4 | 102 | ||||||
Interest rate derivatives | ||||||||
Liability fair value recorded in other long term liabilities(2) | — | 1 | ||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | — | 1 |
2015 | 2014 | 2013 | ||||||||||
Fuel derivatives | ||||||||||||
Hedge effectiveness losses recognized in aircraft fuel expense | $ | 126 | $ | 30 | $ | 10 | ||||||
(Losses) gains on derivatives not qualifying for hedge accounting recognized in other expense | (1 | ) | 2 | — | ||||||||
Hedge losses on derivatives recognized in comprehensive income | 29 | 134 | 6 | |||||||||
Percentage of actual consumption economically hedged | 17 | % | 20 | % | 21 | % | ||||||
Interest rate derivatives | ||||||||||||
Hedge losses on derivatives recognized in interest expense | 1 | 1 | 8 | |||||||||
Hedge gains on derivatives recognized in comprehensive income | — | — | 1 |
(1) | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty and prior to impact of collateral paid. |
(2) | Gross liability prior to impact of collateral posted |
2015 | 2014 | 2013 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 677 | $ | 401 | $ | 168 | ||||||
Effect of dilutive securities: | ||||||||||||
Interest on convertible debt, net of income taxes and profit sharing | 4 | 7 | 9 | |||||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ | 681 | $ | 408 | $ | 177 | ||||||
Denominator: | ||||||||||||
Weighted average shares outstanding for basic earnings per share | 315.1 | 294.7 | 282.8 | |||||||||
Effect of dilutive securities: | ||||||||||||
Employee stock options and restricted stock units | 2.8 | 2.4 | 2.1 | |||||||||
Convertible debt | 26.9 | 46.2 | 58.6 | |||||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 344.8 | 343.3 | 343.5 | |||||||||
Shares excluded from EPS calculation: | ||||||||||||
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | — | 6.9 | 13.8 |
2015 | 2014 | 2013 | ||||||||||
Income tax expense at statutory rate | $ | 384 | $ | 218 | $ | 98 | ||||||
Increase resulting from: | ||||||||||||
State income tax, net of federal benefit | 28 | 18 | 9 | |||||||||
Valuation Allowance, federal and state | — | (19 | ) | — | ||||||||
Other, net | 8 | 5 | 4 | |||||||||
Total income tax expense | $ | 420 | $ | 222 | $ | 111 |
As of December 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 147 | $ | — | $ | — | $ | 147 | ||||||||
Available-for-sale investment securities | 75 | 180 | — | 255 | ||||||||||||
Aircraft fuel derivatives | — | — | — | — | ||||||||||||
$ | 222 | $ | 180 | $ | — | $ | 402 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | — | 5 | — | 5 | ||||||||||||
Interest rate swap | — | — | — | — | ||||||||||||
$ | — | $ | 5 | $ | — | $ | 5 |
As of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 153 | $ | — | $ | — | $ | 153 | ||||||||
Available-for-sale investment securities | — | 125 | — | 125 | ||||||||||||
Aircraft fuel derivatives | $ | — | $ | — | $ | — | $ | — | ||||||||
$ | 153 | $ | 125 | $ | — | $ | 278 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | $ | — | $ | 102 | $ | — | $ | 102 | ||||||||
Interest rate swap | — | 1 | — | 1 | ||||||||||||
$ | — | $ | 103 | $ | — | $ | 103 |
Aircraft | Other | Total | ||||||||||
2016 | $ | 83 | $ | 87 | $ | 170 | ||||||
2017 | 79 | 72 | 151 | |||||||||
2018 | 77 | 66 | 143 | |||||||||
2019 | 59 | 63 | 122 | |||||||||
2020 | 53 | 56 | 109 | |||||||||
Thereafter | 163 | 445 | 608 | |||||||||
Total minimum operating lease payments | $ | 514 | $ | 789 | $ | 1,303 |
Year | Maturities | |||
2016 | $ | 448 | ||
2017 | 189 | |||
2018 | 196 | |||
2019 | 217 | |||
2020 | 180 | |||
Thereafter | 613 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
2015 | ||||||||||||||||
Operating revenues | $ | 1,523 | $ | 1,612 | $ | 1,687 | $ | 1,594 | ||||||||
Operating income | 253 | 282 | 351 | 330 | ||||||||||||
Net income | 137 | 152 | 198 | 190 | ||||||||||||
Basic earnings per share | $ | 0.44 | $ | 0.48 | $ | 0.63 | $ | 0.60 | ||||||||
Diluted earnings per share | $ | 0.40 | $ | 0.44 | $ | 0.58 | $ | 0.56 | ||||||||
2014(1) | ||||||||||||||||
Operating revenues | $ | 1,349 | $ | 1,493 | $ | 1,529 | $ | 1,446 | ||||||||
Operating income | 41 | 141 | 164 | 169 | ||||||||||||
Net income | 4 | 230 | 79 | 88 | ||||||||||||
Basic earnings per share | $ | 0.01 | $ | 0.79 | $ | 0.27 | $ | 0.29 | ||||||||
Diluted earnings per share | $ | 0.01 | $ | 0.68 | $ | 0.24 | $ | 0.26 |
2015 | 2014 | 2013 | ||||||||||
Domestic | $ | 4,521 | $ | 4,093 | $ | 3,886 | ||||||
Caribbean & Latin America | 1,895 | 1,724 | 1,555 | |||||||||
Total | $ | 6,416 | $ | 5,817 | $ | 5,441 |
Shares | Weighted Average Grant Date Fair Value | ||||||
Nonvested at beginning of year | 3.8 | $ | 7.18 | ||||
Granted | 0.9 | 17.09 | |||||
Vested | (1.9 | ) | 6.77 | ||||
Forfeited | (0.3 | ) | 8.29 | ||||
Nonvested at end of year | 2.5 | $ | 10.94 |
Shares | Weighted Average Grant Date Fair Value | ||||||
Outstanding at beginning of year | 6.0 | $ | 12.38 | ||||
Exercised | (4.7 | ) | 12.63 | ||||
Forfeited | — | — | |||||
Expired | — | — | |||||
Outstanding at end of year | 1.3 | $ | 11.40 | ||||
Vested at end of year | 1.3 | $ | 11.40 |
Balance at beginning of period | Additions Charged to Costs and Expenses | Deductions | Balance at end of period | |||||||||||||
Year Ended December 31, 2015 | ||||||||||||||||
Allowance for doubtful accounts | 6 | $ | 4 | $ | 4 | (1) | $ | 6 | ||||||||
Allowance for obsolete inventory parts | 8 | 2 | — | (2) | 10 | |||||||||||
Total | $ | 14 | $ | 6 | $ | 4 | $ | 16 | ||||||||
Year Ended December 31, 2014 | ||||||||||||||||
Allowance for doubtful accounts | $ | 6 | $ | 3 | $ | 3 | (1) | $ | 6 | |||||||
Allowance for obsolete inventory parts | 6 | 2 | — | (2) | 8 | |||||||||||
Valuation allowance for deferred tax assets | 20 | — | 20 | (3) | — | |||||||||||
Total | $ | 32 | $ | 5 | $ | 23 | $ | 14 | ||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Allowance for doubtful accounts | $ | 7 | $ | 3 | $ | 4 | (1) | $ | 6 | |||||||
Allowance for obsolete inventory parts | 5 | 1 | — | (2) | 6 | |||||||||||
Valuation allowance for deferred tax assets | 20 | — | — | (3) | 20 | |||||||||||
Total | $ | 32 | $ | 5 | $ | 5 | $ | 32 |
(1) | Uncollectible accounts written off, net of recoveries. |
(2) | Inventory scrapped. |
(3) | Attributable to recognition and write-off of deferred tax assets. |
2015 | 2014 | 2013 | ||||||||||
Domestic | $ | 4,521 | $ | 4,093 | $ | 3,886 | ||||||
Caribbean & Latin America | 1,895 | 1,724 | 1,555 | |||||||||
Total | $ | 6,416 | $ | 5,817 | $ | 5,441 |
2015 | 2014 | |||||||
Available-for-sale securities | ||||||||
Time deposits | $ | 125 | $ | 125 | ||||
Commercial paper | 55 | — | ||||||
Treasury bills | 75 | — | ||||||
Total available-for-sale securities | 255 | 125 | ||||||
Held-to-maturity securities | ||||||||
Corporate bonds | 322 | 254 | ||||||
Treasury notes | 30 | — | ||||||
Time deposits | — | 48 | ||||||
Total held-to-maturity securities | 352 | 302 | ||||||
Total investment securities | $ | 607 | $ | 427 |
Property and Equipment Type | Estimated Useful Life | Residual Value | |||
Aircraft | 25 years | 20 | % | ||
In-flight entertainment systems | 5-10 years | 0 | % | ||
Aircraft parts | Fleet life | 10 | % | ||
Flight equipment leasehold improvements | Lower of lease term or economic life | 0 | % | ||
Ground property and equipment | 2-10 years | 0 | % | ||
Leasehold improvements—other | Lower of lease term or economic life | 0 | % | ||
Buildings on leased land | Lease term | 0 | % |
2015 | 2014 | 2013 | ||||||||||
Unrecognized tax benefits at January 1, | $ | 16 | $ | 11 | $ | 13 | ||||||
Increases for tax positions taken during a prior period | — | 2 | — | |||||||||
Increases for tax positions taken during the period | 6 | 4 | 2 | |||||||||
Decreases for tax positions taken during a prior period | (1 | ) | (1 | ) | — | |||||||
Decreases for settlement with tax authorities during the period | — | — | (4 | ) | ||||||||
Unrecognized tax benefits December 31, | $ | 21 | $ | 16 | $ | 11 |