Gross Amount of Recognized | Gross Amount of Cash Collateral | Net Amount Presented on Balance Sheet | ||||||||||||||||||
Assets | Liabilities | Offset | Assets | Liabilities | ||||||||||||||||
Fuel derivatives | ||||||||||||||||||||
As of December 31, 2016 | $ | 22 | $ | — | $ | — | $ | 22 | $ | — | ||||||||||
As of December 31, 2015 | $ | — | $ | 5 | $ | — | $ | — | $ | 5 |
Jet fuel swap agreements | Jet fuel collar agreements | Heating oil collar agreements | Total | |||||
First Quarter 2017 | 10% | —% | —% | 10% | ||||
Second Quarter 2017 | 10% | —% | —% | 10% | ||||
Third Quarter 2017 | 10% | —% | —% | 10% | ||||
Fourth Quarter 2017 | 10% | —% | —% | 10% |
December 31, 2016 | December 31, 2015 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
Public Debt | ||||||||||||||||
Floating rate enhanced equipment notes | ||||||||||||||||
Class G-1, due 2016 | $ | — | $ | — | $ | 16 | $ | 16 | ||||||||
Class G-2, due 2016 | — | — | 185 | 184 | ||||||||||||
Fixed rate special facility bonds, due through 2036 | 43 | 45 | 43 | 45 | ||||||||||||
6.75% convertible debentures due in 2039 | — | — | 86 | 405 | ||||||||||||
Non-Public Debt | ||||||||||||||||
Fixed rate enhanced equipment notes, due through 2023 | 850 | 915 | 201 | 209 | ||||||||||||
Floating rate equipment notes, due through 2025 | 173 | 179 | 193 | 195 | ||||||||||||
Fixed rate equipment notes, due through 2026 | 189 | 197 | 964 | 1,042 | ||||||||||||
Total | $ | 1,255 | $ | 1,336 | $ | 1,688 | $ | 2,096 |
Aircraft Fuel Derivatives(1) | Interest Rate Swaps(2) | Total | ||||||||||
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 | ) | ||||
Reclassifications into earnings (net of $(4) of taxes) | (5 | ) | (1 | ) | (6 | ) | ||||||
Change in fair value (net of $12 of taxes) | 22 | — | 22 | |||||||||
Balance of accumulated income, at December 31, 2016 | 13 | — | 13 | |||||||||
(1) Reclassified to aircraft fuel expense | ||||||||||||
(2) Reclassified to interest expense |
2016 | 2015 | |||||||||||||
Secured Debt | ||||||||||||||
Floating rate equipment notes, due through 2025(1) | $ | 173 | 4.2 | % | $ | 193 | 3.7 | % | ||||||
Floating rate enhanced equipment notes(2) | ||||||||||||||
Class G-1, due 2016 | — | — | % | 16 | 4.4 | % | ||||||||
Class G-2, due 2016 | — | — | % | 185 | 1.0 | % | ||||||||
Fixed rate enhanced equipment notes, due through 2023(3) | 189 | 4.5 | % | 201 | 4.5 | % | ||||||||
Fixed rate equipment notes, due through 2026 | 850 | 5.5 | % | 964 | 5.5 | % | ||||||||
Fixed rate specialty bonds, due through 2036(4) | 43 | 4.9 | % | 43 | 4.9 | % | ||||||||
Unsecured Debt | ||||||||||||||
6.75% convertible debentures due in 2039(5) | — | 86 | ||||||||||||
Capital Leases(6) | 140 | 4.3 | % | 155 | 4.1 | % | ||||||||
Total debt and capital lease obligations | 1,395 | 1,843 | ||||||||||||
Less: Current maturities | (189 | ) | (448 | ) | ||||||||||
Less: Debt acquisition cost(7) | (11 | ) | (16 | ) | ||||||||||
Long-term debt and capital lease obligations | $ | 1,195 | $ | 1,379 |
Year | Maturities | |||
2017 | $ | 185 | ||
2018 | 193 | |||
2019 | 215 | |||
2020 | 179 | |||
2021 | 164 | |||
Thereafter | 448 |
December 31, 2016 | December 31, 2015 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
Public Debt | ||||||||||||||||
Floating rate enhanced equipment notes | ||||||||||||||||
Class G-1, due 2016 | $ | — | $ | — | $ | 16 | $ | 16 | ||||||||
Class G-2, due 2016 | — | — | 185 | 184 | ||||||||||||
Fixed rate special facility bonds, due through 2036 | 43 | 45 | 43 | 45 | ||||||||||||
6.75% convertible debentures due in 2039 | — | — | 86 | 405 | ||||||||||||
Non-Public Debt | ||||||||||||||||
Fixed rate enhanced equipment notes, due through 2023 | 850 | 915 | 201 | 209 | ||||||||||||
Floating rate equipment notes, due through 2025 | 173 | 179 | 193 | 195 | ||||||||||||
Fixed rate equipment notes, due through 2026 | 189 | 197 | 964 | 1,042 | ||||||||||||
Total | $ | 1,255 | $ | 1,336 | $ | 1,688 | $ | 2,096 |
Jet fuel swap agreements | Jet fuel collar agreements | Heating oil collar agreements | Total | |||||
First Quarter 2017 | 10% | —% | —% | 10% | ||||
Second Quarter 2017 | 10% | —% | —% | 10% | ||||
Third Quarter 2017 | 10% | —% | —% | 10% | ||||
Fourth Quarter 2017 | 10% | —% | —% | 10% |
As of December 31, | ||||||||
2016 | 2015 | |||||||
Fuel derivatives | ||||||||
Asset fair value recorded in prepaid expense and other(1) | $ | 22 | $ | — | ||||
Liability fair value recorded in other accrued liabilities(1) | — | 5 | ||||||
Longest remaining term (months) | 12 | 12 | ||||||
Hedged volume (barrels, in thousands) | 1,920 | 900 | ||||||
Estimated amount of existing (gains) losses expected to be reclassified into earnings in the next 12 months | (22 | ) | 4 |
2016 | 2015 | 2014 | ||||||||||
Fuel derivatives | ||||||||||||
Hedge effectiveness (gains) losses recognized in aircraft fuel expense | $ | (9 | ) | $ | 126 | $ | 30 | |||||
(Gains) losses on derivatives not qualifying for hedge accounting recognized in other expense | — | 1 | (2 | ) | ||||||||
Hedge (gains) losses on derivatives recognized in comprehensive income | (34 | ) | 29 | 134 | ||||||||
Percentage of actual consumption economically hedged | 12 | % | 17 | % | 20 | % |
(1) | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty and prior to impact of collateral paid. |
Gross Amount of Recognized | Gross Amount of Cash Collateral | Net Amount Presented on Balance Sheet | ||||||||||||||||||
Assets | Liabilities | Offset | Assets | Liabilities | ||||||||||||||||
Fuel derivatives | ||||||||||||||||||||
As of December 31, 2016 | $ | 22 | $ | — | $ | — | $ | 22 | $ | — | ||||||||||
As of December 31, 2015 | $ | — | $ | 5 | $ | — | $ | — | $ | 5 |
Shares | Weighted Average Grant Date Fair Value | |||||
Nonvested at beginning of year | 2.5 | $10.94 | ||||
Granted | 0.7 | 22.95 | ||||
Vested | (1.4 | ) | 9.34 | |||
Forfeited | — | — | ||||
Nonvested at end of year | 1.8 | $16.77 | ||||
Shares | Weighted Average Grant Date Fair Value | |||||
Outstanding at beginning of year | 1.3 | $11.40 | ||||
Exercised | (0.9 | ) | 11.65 | |||
Forfeited | — | — | ||||
Expired | — | — | ||||
Outstanding at end of year | 0.4 | $10.90 | ||||
Vested at end of year | 0.4 | $10.90 |
2016 | 2015 | 2014 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 759 | $ | 677 | $ | 401 | ||||||
Effect of dilutive securities: | ||||||||||||
Interest on convertible debt, net of income taxes and profit sharing | 2 | 4 | 7 | |||||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ | 761 | $ | 681 | $ | 408 | ||||||
Denominator: | ||||||||||||
Weighted average shares outstanding for basic earnings per share | 326.5 | 315.1 | 294.7 | |||||||||
Effect of dilutive securities: | ||||||||||||
Employee stock options and restricted stock units | 2.1 | 2.8 | 2.4 | |||||||||
Convertible debt | 13.6 | 26.9 | 46.2 | |||||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 342.2 | 344.8 | 343.3 | |||||||||
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 |
As of December 31, 2016 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 313 | $ | — | $ | — | $ | 313 | ||||||||
Available-for-sale investment securities | 115 | 220 | — | 335 | ||||||||||||
Aircraft fuel derivatives | — | 22 | — | 22 |
As of December 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 147 | $ | — | $ | — | $ | 147 | ||||||||
Available-for-sale investment securities | 75 | 180 | — | 255 | ||||||||||||
Aircraft fuel derivatives | $ | — | $ | (5 | ) | $ | — | $ | (5 | ) |
2016 | 2015 | 2014 | ||||||||||
Deferred: | ||||||||||||
Federal | $ | 245 | $ | 351 | $ | 192 | ||||||
State | 25 | 26 | 20 | |||||||||
Deferred income tax expense | 270 | 377 | 212 | |||||||||
Current: | ||||||||||||
Federal | 129 | 20 | 2 | |||||||||
State | 26 | 16 | 6 | |||||||||
Foreign | 32 | 7 | 2 | |||||||||
Current income tax expense | 187 | 43 | 10 | |||||||||
Total income tax expense | $ | 457 | $ | 420 | $ | 222 |
2016 | 2015 | 2014 | ||||||||||
Income tax expense at statutory rate | $ | 425 | $ | 384 | $ | 218 | ||||||
Increase resulting from: | ||||||||||||
State income tax, net of federal benefit | 34 | 28 | 18 | |||||||||
Valuation Allowance, federal and state | — | — | (19 | ) | ||||||||
Other, net | (2 | ) | 8 | 5 | ||||||||
Total income tax expense | $ | 457 | $ | 420 | $ | 222 |
2016 | 2015 | |||||||
Deferred tax assets: | ||||||||
Deferred revenue/gains | 121 | 104 | ||||||
Employee benefits | 41 | 39 | ||||||
Terminal 5 lease | 38 | 36 | ||||||
Rent expense | 34 | 33 | ||||||
Other | 8 | 49 | ||||||
Deferred tax assets, net | 242 | 261 | ||||||
Deferred tax liabilities: | ||||||||
Accelerated depreciation | (1,596 | ) | (1,334 | ) | ||||
Deferred tax liabilities | (1,596 | ) | (1,334 | ) | ||||
Net deferred tax liability | $ | (1,354 | ) | $ | (1,073 | ) |
2016 | 2015 | 2014 | ||||||||||
Unrecognized tax benefits at January 1, | $ | 21 | $ | 16 | $ | 11 | ||||||
Increases for tax positions taken during a prior period | 10 | — | 2 | |||||||||
Increases for tax positions taken during the period | 5 | 6 | 4 | |||||||||
Decreases for tax positions taken during a prior period | (4 | ) | (1 | ) | (1 | ) | ||||||
Decreases for settlement with tax authorities during the period | (6 | ) | — | — | ||||||||
Unrecognized tax benefits December 31, | $ | 26 | $ | 21 | $ | 16 |
Aircraft | Other | Total | ||||||||||
2017 | $ | 74 | $ | 97 | $ | 171 | ||||||
2018 | 76 | 90 | 166 | |||||||||
2019 | 61 | 82 | 143 | |||||||||
2020 | 59 | 64 | 123 | |||||||||
2021 | 51 | 57 | 108 | |||||||||
Thereafter | 183 | 420 | 603 | |||||||||
Total minimum operating lease payments | $ | 504 | $ | 810 | $ | 1,314 |
2016 | 2015 | |||||||
Available-for-sale securities | ||||||||
Time deposits | $ | 160 | $ | 125 | ||||
Treasury bills | 115 | 75 | ||||||
Commercial paper | 60 | 55 | ||||||
Total available-for-sale securities | 335 | 255 | ||||||
Held-to-maturity securities | ||||||||
Treasury notes | 283 | 30 | ||||||
Corporate bonds | 10 | 322 | ||||||
Total held-to-maturity securities | 293 | 352 | ||||||
TOTAL INVESTMENT SECURITIES | $ | 628 | $ | 607 |
2016 | 2015 | |||||||
Available-for-sale securities | ||||||||
Time deposits | $ | 160 | $ | 125 | ||||
Treasury bills | 115 | 75 | ||||||
Commercial paper | 60 | 55 | ||||||
Total available-for-sale securities | 335 | 255 | ||||||
Held-to-maturity securities | ||||||||
Treasury notes | 283 | 30 | ||||||
Corporate bonds | 10 | 322 | ||||||
Total held-to-maturity securities | 293 | 352 | ||||||
TOTAL INVESTMENT SECURITIES | $ | 628 | $ | 607 |
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 | |||||||||||||
2016 | ||||||||||||||||
Operating revenues | $ | 1,616 | $ | 1,643 | $ | 1,732 | $ | 1,641 | ||||||||
Operating income | 349 | 313 | 354 | 296 | ||||||||||||
Net income (1) | 207 | 181 | 199 | 172 | ||||||||||||
Basic earnings per share (1) | $ | 0.64 | $ | 0.56 | $ | 0.61 | $ | 0.51 | ||||||||
Diluted earnings per share (1) | $ | 0.61 | $ | 0.53 | $ | 0.58 | $ | 0.50 | ||||||||
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 |
Aircraft Fuel Derivatives(1) | Interest Rate Swaps(2) | Total | ||||||||||
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 | ) | ||||
Reclassifications into earnings (net of $(4) of taxes) | (5 | ) | (1 | ) | (6 | ) | ||||||
Change in fair value (net of $12 of taxes) | 22 | — | 22 | |||||||||
Balance of accumulated income, at December 31, 2016 | 13 | — | 13 | |||||||||
(1) Reclassified to aircraft fuel expense | ||||||||||||
(2) Reclassified to interest expense |
2016 | 2015 | 2014 | ||||||||||
Deferred: | ||||||||||||
Federal | $ | 245 | $ | 351 | $ | 192 | ||||||
State | 25 | 26 | 20 | |||||||||
Deferred income tax expense | 270 | 377 | 212 | |||||||||
Current: | ||||||||||||
Federal | 129 | 20 | 2 | |||||||||
State | 26 | 16 | 6 | |||||||||
Foreign | 32 | 7 | 2 | |||||||||
Current income tax expense | 187 | 43 | 10 | |||||||||
Total income tax expense | $ | 457 | $ | 420 | $ | 222 |
2016 | 2015 | |||||||||||||
Secured Debt | ||||||||||||||
Floating rate equipment notes, due through 2025(1) | $ | 173 | 4.2 | % | $ | 193 | 3.7 | % | ||||||
Floating rate enhanced equipment notes(2) | ||||||||||||||
Class G-1, due 2016 | — | — | % | 16 | 4.4 | % | ||||||||
Class G-2, due 2016 | — | — | % | 185 | 1.0 | % | ||||||||
Fixed rate enhanced equipment notes, due through 2023(3) | 189 | 4.5 | % | 201 | 4.5 | % | ||||||||
Fixed rate equipment notes, due through 2026 | 850 | 5.5 | % | 964 | 5.5 | % | ||||||||
Fixed rate specialty bonds, due through 2036(4) | 43 | 4.9 | % | 43 | 4.9 | % | ||||||||
Unsecured Debt | ||||||||||||||
6.75% convertible debentures due in 2039(5) | — | 86 | ||||||||||||
Capital Leases(6) | 140 | 4.3 | % | 155 | 4.1 | % | ||||||||
Total debt and capital lease obligations | 1,395 | 1,843 | ||||||||||||
Less: Current maturities | (189 | ) | (448 | ) | ||||||||||
Less: Debt acquisition cost(7) | (11 | ) | (16 | ) | ||||||||||
Long-term debt and capital lease obligations | $ | 1,195 | $ | 1,379 |
2016 | 2015 | |||||||
Deferred tax assets: | ||||||||
Deferred revenue/gains | 121 | 104 | ||||||
Employee benefits | 41 | 39 | ||||||
Terminal 5 lease | 38 | 36 | ||||||
Rent expense | 34 | 33 | ||||||
Other | 8 | 49 | ||||||
Deferred tax assets, net | 242 | 261 | ||||||
Deferred tax liabilities: | ||||||||
Accelerated depreciation | (1,596 | ) | (1,334 | ) | ||||
Deferred tax liabilities | (1,596 | ) | (1,334 | ) | ||||
Net deferred tax liability | $ | (1,354 | ) | $ | (1,073 | ) |
As of December 31, | ||||||||
2016 | 2015 | |||||||
Fuel derivatives | ||||||||
Asset fair value recorded in prepaid expense and other(1) | $ | 22 | $ | — | ||||
Liability fair value recorded in other accrued liabilities(1) | — | 5 | ||||||
Longest remaining term (months) | 12 | 12 | ||||||
Hedged volume (barrels, in thousands) | 1,920 | 900 | ||||||
Estimated amount of existing (gains) losses expected to be reclassified into earnings in the next 12 months | (22 | ) | 4 |
2016 | 2015 | 2014 | ||||||||||
Fuel derivatives | ||||||||||||
Hedge effectiveness (gains) losses recognized in aircraft fuel expense | $ | (9 | ) | $ | 126 | $ | 30 | |||||
(Gains) losses on derivatives not qualifying for hedge accounting recognized in other expense | — | 1 | (2 | ) | ||||||||
Hedge (gains) losses on derivatives recognized in comprehensive income | (34 | ) | 29 | 134 | ||||||||
Percentage of actual consumption economically hedged | 12 | % | 17 | % | 20 | % |
(1) | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty and prior to impact of collateral paid. |
2016 | 2015 | 2014 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 759 | $ | 677 | $ | 401 | ||||||
Effect of dilutive securities: | ||||||||||||
Interest on convertible debt, net of income taxes and profit sharing | 2 | 4 | 7 | |||||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ | 761 | $ | 681 | $ | 408 | ||||||
Denominator: | ||||||||||||
Weighted average shares outstanding for basic earnings per share | 326.5 | 315.1 | 294.7 | |||||||||
Effect of dilutive securities: | ||||||||||||
Employee stock options and restricted stock units | 2.1 | 2.8 | 2.4 | |||||||||
Convertible debt | 13.6 | 26.9 | 46.2 | |||||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 342.2 | 344.8 | 343.3 | |||||||||
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 |
2016 | 2015 | 2014 | ||||||||||
Income tax expense at statutory rate | $ | 425 | $ | 384 | $ | 218 | ||||||
Increase resulting from: | ||||||||||||
State income tax, net of federal benefit | 34 | 28 | 18 | |||||||||
Valuation Allowance, federal and state | — | — | (19 | ) | ||||||||
Other, net | (2 | ) | 8 | 5 | ||||||||
Total income tax expense | $ | 457 | $ | 420 | $ | 222 |
As of December 31, 2016 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 313 | $ | — | $ | — | $ | 313 | ||||||||
Available-for-sale investment securities | 115 | 220 | — | 335 | ||||||||||||
Aircraft fuel derivatives | — | 22 | — | 22 |
As of December 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | $ | 147 | $ | — | $ | — | $ | 147 | ||||||||
Available-for-sale investment securities | 75 | 180 | — | 255 | ||||||||||||
Aircraft fuel derivatives | $ | — | $ | (5 | ) | $ | — | $ | (5 | ) |
Aircraft | Other | Total | ||||||||||
2017 | $ | 74 | $ | 97 | $ | 171 | ||||||
2018 | 76 | 90 | 166 | |||||||||
2019 | 61 | 82 | 143 | |||||||||
2020 | 59 | 64 | 123 | |||||||||
2021 | 51 | 57 | 108 | |||||||||
Thereafter | 183 | 420 | 603 | |||||||||
Total minimum operating lease payments | $ | 504 | $ | 810 | $ | 1,314 |
Year | Maturities | |||
2017 | $ | 185 | ||
2018 | 193 | |||
2019 | 215 | |||
2020 | 179 | |||
2021 | 164 | |||
Thereafter | 448 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
2016 | ||||||||||||||||
Operating revenues | $ | 1,616 | $ | 1,643 | $ | 1,732 | $ | 1,641 | ||||||||
Operating income | 349 | 313 | 354 | 296 | ||||||||||||
Net income (1) | 207 | 181 | 199 | 172 | ||||||||||||
Basic earnings per share (1) | $ | 0.64 | $ | 0.56 | $ | 0.61 | $ | 0.51 | ||||||||
Diluted earnings per share (1) | $ | 0.61 | $ | 0.53 | $ | 0.58 | $ | 0.50 | ||||||||
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 |
2016 | 2015 | 2014 | ||||||||||
Domestic | $ | 4,751 | $ | 4,521 | $ | 4,093 | ||||||
Caribbean & Latin America | 1,881 | 1,895 | 1,724 | |||||||||
Total | $ | 6,632 | $ | 6,416 | $ | 5,817 |
Shares | Weighted Average Grant Date Fair Value | |||||
Nonvested at beginning of year | 2.5 | $10.94 | ||||
Granted | 0.7 | 22.95 | ||||
Vested | (1.4 | ) | 9.34 | |||
Forfeited | — | — | ||||
Nonvested at end of year | 1.8 | $16.77 | ||||
Shares | Weighted Average Grant Date Fair Value | |||||
Outstanding at beginning of year | 1.3 | $11.40 | ||||
Exercised | (0.9 | ) | 11.65 | |||
Forfeited | — | — | ||||
Expired | — | — | ||||
Outstanding at end of year | 0.4 | $10.90 | ||||
Vested at end of year | 0.4 | $10.90 |
Balance at beginning of period | Additions Charged to Costs and Expenses | Deductions | Balance at end of period | |||||||||||||
Year Ended December 31,2016 | ||||||||||||||||
Allowance for doubtful accounts | 6 | $ | — | $ | 1 | (1) | $ | 5 | ||||||||
Allowance for obsolete inventory parts | 10 | 2 | — | (2) | 12 | |||||||||||
Total | $ | 16 | $ | 2 | $ | 1 | $ | 17 | ||||||||
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 |
(1) | Uncollectible accounts written off, net of recoveries. |
(2) | Inventory scrapped. |
(3) | Attributable to recognition and write-off of deferred tax assets. |
2016 | 2015 | 2014 | ||||||||||
Domestic | $ | 4,751 | $ | 4,521 | $ | 4,093 | ||||||
Caribbean & Latin America | 1,881 | 1,895 | 1,724 | |||||||||
Total | $ | 6,632 | $ | 6,416 | $ | 5,817 |
2016 | 2015 | |||||||
Available-for-sale securities | ||||||||
Time deposits | $ | 160 | $ | 125 | ||||
Treasury bills | 115 | 75 | ||||||
Commercial paper | 60 | 55 | ||||||
Total available-for-sale securities | 335 | 255 | ||||||
Held-to-maturity securities | ||||||||
Treasury notes | 283 | 30 | ||||||
Corporate bonds | 10 | 322 | ||||||
Total held-to-maturity securities | 293 | 352 | ||||||
TOTAL INVESTMENT SECURITIES | $ | 628 | $ | 607 |
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 | % |
2016 | 2015 | 2014 | ||||||||||
Unrecognized tax benefits at January 1, | $ | 21 | $ | 16 | $ | 11 | ||||||
Increases for tax positions taken during a prior period | 10 | — | 2 | |||||||||
Increases for tax positions taken during the period | 5 | 6 | 4 | |||||||||
Decreases for tax positions taken during a prior period | (4 | ) | (1 | ) | (1 | ) | ||||||
Decreases for settlement with tax authorities during the period | (6 | ) | — | — | ||||||||
Unrecognized tax benefits December 31, | $ | 26 | $ | 21 | $ | 16 |