DELTA AIR LINES INC /DE/, 10-K filed on 2/11/2015
Annual Report
Document and Entity Information (USD $)
In Billions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Jan. 31, 2015
Jun. 30, 2014
Document and Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2014 
 
 
Document Fiscal Year Focus
2014 
 
 
Document Fiscal Period Focus
FY 
 
 
Entity Registrant Name
DELTA AIR LINES INC /DE/ 
 
 
Entity Central Index Key
0000027904 
 
 
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
 
 
$ 32.6 
Entity Common Stock, Shares Outstanding
 
824,271,663 
 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Current Assets:
 
 
Cash and cash equivalents
$ 2,088 
$ 2,844 
Short-term investments
1,217 
959 
Accounts receivable, net of an allowance for uncollectible accounts of $21 and $23 at December 31, 2014 and 2013, respectively
2,297 
1,609 
Hedge margin receivable
925 
3 
Fuel inventory
534 
706 
Expendable parts and supplies inventories, net of an allowance for obsolescence of $127 and $118 at December 31, 2014 and 2013, respectively
318 
357 
Hedge derivatives asset
1,078 
585 
Deferred income taxes, net
3,275 
1,736 
Prepaid expenses and other
733 
852 
Total current assets
12,465 
9,651 
Property and Equipment, Net:
 
 
Property and equipment, net of accumulated depreciation and amortization of $9,340 and $7,792 at December 31, 2014 and 2013, respectively
21,929 
21,854 
Other Assets:
 
 
Goodwill
9,794 
9,794 
Identifiable intangibles, net of accumulated amortization of $793 and $738 at December 31, 2014 and 2013, respectively
4,603 
4,658 
Deferred income taxes, net
4,320 
4,992 
Other noncurrent assets
1,010 
1,303 
Total other assets
19,727 
20,747 
Total assets
54,121 
52,252 
Current Liabilities:
 
 
Current maturities of long-term debt and capital leases
1,216 
1,547 
Air traffic liability
4,296 
4,122 
Accounts payable
2,622 
2,300 
Accrued salaries and related benefits
2,266 
1,926 
Hedge derivatives liability
2,772 
146 
Frequent flyer deferred revenue
1,580 
1,861 
Other accrued liabilities
2,127 
2,250 
Total current liabilities
16,879 
14,152 
Noncurrent Liabilities:
 
 
Long-term debt and capital leases
8,561 
9,795 
Pension, postretirement and related benefits
15,138 
12,392 
Frequent flyer deferred revenue
2,602 
2,559 
Other noncurrent liabilities
2,128 
1,711 
Total noncurrent liabilities
28,429 
26,457 
Commitments and Contingencies
   
   
Stockholders' Equity:
 
 
Common stock at $0.0001 par value; 1,500,000,000 shares authorized, 845,048,310 and 869,484,981 shares issued at December 31, 2014 and 2013, respectively
0 
0 
Additional paid-in capital
12,981 
13,982 
Retained earnings
3,456 
3,049 
Accumulated other comprehensive loss
(7,311)
(5,130)
Treasury stock, at cost, 19,790,077 and 18,041,848 shares at December 31, 2014 and 2013, respectively
(313)
(258)
Total stockholders' equity
8,813 
11,643 
Total liabilities and stockholders' equity
$ 54,121 
$ 52,252 
Consolidated Balance Sheets (Parentheticals) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Current Assets:
 
 
Allowance for uncollectible accounts
$ 21 
$ 23 
Allowance for obsolescence
127 
118 
Property, Plant and Equipment [Abstract]
 
 
Accumulated depreciation and amortization
9,340 
7,792 
Other Assets:
 
 
Accumulated amortization
$ 793 
$ 738 
Stockholders' Equity:
 
 
Common stock, par value
$ 0.0001 
$ 0.0001 
Common stock, shares authorized
1,500,000,000 
1,500,000,000 
Common stock, shares issued
845,048,310 
869,484,981 
Treasury Stock, at cost, shares
19,790,077 
18,041,848 
Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Passenger:
 
 
 
Mainline
$ 28,688 
$ 26,534 
$ 25,173 
Regional carriers
6,266 
6,408 
6,581 
Total passenger revenue
34,954 
32,942 
31,754 
Cargo
934 
937 
990 
Other
4,474 
3,894 
3,926 
Total operating revenue
40,362 
37,773 
36,670 
Operating Expense:
 
 
 
Aircraft fuel and related taxes
11,668 
9,397 
10,150 
Salaries and related costs
8,120 
7,720 
7,266 
Regional carrier expense
5,237 
5,669 
5,647 
Aircraft maintenance materials and outside repairs
1,828 
1,852 
1,955 
Depreciation and amortization
1,771 
1,658 
1,565 
Contracted services
1,749 
1,665 
1,566 
Passenger commissions and other selling expenses
1,700 
1,603 
1,590 
Landing fees and other rents
1,442 
1,410 
1,336 
Profit sharing
1,085 
506 
372 
Passenger service
810 
762 
732 
Aircraft rent
233 
209 
272 
Restructuring and other items
716 
402 
452 
Other
1,797 
1,520 
1,592 
Total operating expense
38,156 
34,373 
34,495 
Operating Income
2,206 
3,400 
2,175 
Other Expense:
 
 
 
Interest expense, net
(650)
(852)
(1,005)
Loss on extinguishment of debt
(268)
0 
(118)
Miscellaneous, net
(216)
(21)
(27)
Total other expense, net
(1,134)
(873)
(1,150)
Income Before Income Taxes
1,072 
2,527 
1,025 
Income Tax (Provision) Benefit
(413)
8,013 
(16)
Net Income
$ 659 
$ 10,540 
$ 1,009 
Basic Earnings Per Share
$ 0.79 
$ 12.41 
$ 1.20 
Diluted Earnings Per Share
$ 0.78 
$ 12.29 
$ 1.19 
Cash Dividends Declared Per Share
$ 0.30 
$ 0.12 
$ 0.00 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
 
 
 
Net Income
$ 659 
$ 10,540 
$ 1,009 
Net gain on foreign currency and interest rate derivatives
3 
482 
211 
Net change in pension and other benefit liabilities
(2,194)
2,984 
(2,019)
Net gain (loss) on investments
10 
(19)
(3)
Total Other Comprehensive (Loss) Income
(2,181)
3,447 
(1,811)
Comprehensive (Loss) Income
$ (1,522)
$ 13,987 
$ (802)
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Cash Flows From Operating Activities:
 
 
 
Net income
$ 659 
$ 10,540 
$ 1,009 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
1,771 
1,658 
1,565 
Amortization of debt discount, net
59 
154 
193 
Hedge derivative contracts
2,186 
(86)
(209)
Deferred income taxes
414 
(7,991)
17 
Pension, postretirement and postemployment expense less than payments
(723)
(624)
(208)
Restructuring and other items
758 
285 
184 
Extinguishment of debt
268 
0 
118 
Equity investment loss (earnings)
106 
(24)
0 
SkyMiles used pursuant to advance purchase under American Express Agreements
0 
(333)
(333)
Changes in certain assets and liabilities:
 
 
 
Receivables
(302)
90 
(116)
Restricted cash and cash equivalents
62 
231 
(51)
Fuel inventory
172 
(87)
(451)
Hedge margin
(922)
14 
14 
Prepaid expenses and other current assets
58 
28 
(134)
Air traffic liability
174 
426 
216 
Frequent flyer deferred revenue
(238)
(121)
(115)
Accounts payable and accrued liabilities
228 
213 
899 
Other, net
217 
131 
(122)
Net cash provided by operating activities
4,947 
4,504 
2,476 
Cash Flows From Investing Activities:
 
 
 
Flight equipment, including advance payments
(1,662)
(2,117)
(1,196)
Ground property and equipment, including technology
(587)
(451)
(772)
Purchase of Virgin Atlantic shares
0 
(360)
0 
Purchase of short-term investments
(1,795)
(959)
(958)
Redemption of short-term investments
1,533 
1,117 
1,019 
Other, net
48 
14 
(55)
Net cash used in investing activities
(2,463)
(2,756)
(1,962)
Cash Flows From Financing Activities:
 
 
 
Payments on long-term debt and capital lease obligations
(2,928)
(1,461)
(2,864)
Repurchase of common stock
(1,100)
(250)
0 
Cash dividends
(251)
(102)
0 
Proceeds from long-term obligations
1,020 
268 
1,965 
Other, net
19 
225 
144 
Net cash used in financing activities
(3,240)
(1,320)
(755)
Net (Decrease) Increase in Cash and Cash Equivalents
(756)
428 
(241)
Cash and cash equivalents at beginning of period
2,844 
2,416 
2,657 
Cash and cash equivalents at end of period
2,088 
2,844 
2,416 
Supplemental Disclosure of Cash Paid for Interest
560 
698 
834 
Non-Cash Transactions:
 
 
 
Flight equipment under capital leases
28 
67 
28 
Built-to-suit leased facilities
7 
114 
214 
American Express advance purchase of restricted SkyMiles
$ 0 
$ 285 
$ 0 
Consolidated Statements of Stockholders' Equity (Deficit) (USD $)
In Millions
Total
Common Stock
Additional Paid-In Capital
Retained Earnings (Accumulated Deficit)
Accumulated Other Comprehensive Loss
Treasury Stock
Stockholders' Equity (Deficit) Period Start at Dec. 31, 2011
$ (1,396)
$ 0 
$ 13,999 
$ (8,398)
$ (6,766)
$ (231)
Shares, Issued Period Start at Dec. 31, 2011
 
861 
 
 
 
16 
Net income
1,009 
 
 
1,009 
 
 
Other comprehensive income (loss)
(1,811)
 
 
 
(1,811)
 
Treasury Stock, Value, Acquired, Cost Method1
 
 
 
 
 
(3)
Shares of common stock issued and compensation expense associated with equity awards1
 
5 
 
 
 
 
Shares of common stock issued and compensation expense associated with equity awards1
51 
0 
 
 
 
 
Shares of common stock issued and compensation expense associated with equity awards1
 
 
54 
 
 
 
Shares of common stock issued and compensation expense associated with equity awards
 
 
 
 
 
0 
Stock options exercised
 
2 
 
 
 
 
Stock options exercised
16 
0 
 
 
 
 
Stock options exercised
 
 
16 
 
 
 
Stockholders' Equity (Deficit) Period End at Dec. 31, 2012
(2,131)
0 
14,069 
(7,389)
(8,577)
(234)
Shares, Issued Period End at Dec. 31, 2012
 
868 
 
 
 
16 
Net income
10,540 
 
 
10,540 
 
 
Dividends declared
(102)
 
 
(102)
 
 
Other comprehensive income (loss)
3,447 
 
 
 
3,447 
 
Treasury Stock, Value, Acquired, Cost Method1
 
 
 
 
 
(24)
Shares of common stock issued and compensation expense associated with equity awards1
 
5 
 
 
 
 
Shares of common stock issued and compensation expense associated with equity awards1
66 
0 
 
 
 
 
Shares of common stock issued and compensation expense associated with equity awards1
 
 
90 
 
 
 
Shares of common stock issued and compensation expense associated with equity awards1
 
 
 
 
 
2 
Stock options exercised
 
6 
 
 
 
 
Stock options exercised
73 
0 
 
 
 
 
Stock options exercised
 
 
73 
 
 
 
Stock purchased and retired
(10)
 
 
 
 
 
Stock purchased and retired
(250)
0 
(250)
 
 
 
Stockholders' Equity (Deficit) Period End at Dec. 31, 2013
11,643 
0 
13,982 
3,049 
(5,130)
(258)
Shares, Issued Period End at Dec. 31, 2013
 
869 
 
 
 
18 
Net income
659 
 
 
659 
 
 
Dividends declared
(252)
 
 
(252)
 
 
Other comprehensive income (loss)
(2,181)
 
 
 
(2,181)
 
Treasury Stock, Value, Acquired, Cost Method1
 
 
 
 
 
(55)
Shares of common stock issued and compensation expense associated with equity awards1
 
3 
 
 
 
 
Shares of common stock issued and compensation expense associated with equity awards1
26 
0 
 
 
 
 
Shares of common stock issued and compensation expense associated with equity awards1
 
 
81 
 
 
 
Shares of common stock issued and compensation expense associated with equity awards1
 
 
 
 
 
2 
Stock options exercised
 
2 
 
 
 
 
Stock options exercised
18 
0 
 
 
 
 
Stock options exercised
 
 
18 
 
 
 
Stock purchased and retired
(29)
 
 
 
 
 
Stock purchased and retired
(1,100)
0 
(1,100)
 
 
 
Stockholders' Equity (Deficit) Period End at Dec. 31, 2014
$ 8,813 
$ 0 
$ 12,981 
$ 3,456 
$ (7,311)
$ (313)
Shares, Issued Period End at Dec. 31, 2014
 
845 
 
 
 
20 
Consolidated Statements of Stockholders' Equity (Deficit) (Parentheticals)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Statement of Stockholders' Equity [Abstract]
 
 
 
weighted average price per treasury share withheld for taxes
$ 31.46 
$ 14.97 
$ 10.91 
Summary of Significant Accounting Policies
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.

As described in Note 4, we became the sole owner of Endeavor Air, Inc. ("Endeavor"), formerly Pinnacle Airlines, Inc., on May 1, 2013, pursuant to a confirmed plan of reorganization in the bankruptcy cases of Endeavor and its affiliates. Prior to this acquisition, Endeavor served as a regional carrier under a capacity purchase agreement where we purchased Endeavor's entire seat inventory and marketed it under the Delta tradename. Accordingly, Endeavor's passenger revenue was included in regional carriers passenger revenue in Delta's Consolidated Statements of Operations. All of the expenses Delta incurred under this arrangement were included in contract carrier arrangements expense. Subsequent to this acquisition, we have maintained this presentation and have re-titled contract carrier arrangements expense as regional carrier expense to reflect the inclusion of a wholly-owned regional carrier. This presentation aligns with the regional revenue presentation on the Consolidated Statements of Operations.

We reclassified certain prior period amounts, none of which were material, to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes.

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 May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers." While the standard supersedes existing revenue recognition guidance, it closely aligns with current GAAP. Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. It is effective for annual reporting periods beginning after December 15, 2016, including interim reporting periods, and early adoption is not permitted. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. We are currently evaluating the impact, if any, the adoption of this standard will have on our Consolidated Financial Statements.

Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income

In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income." The standard revises the reporting of items reclassified out of accumulated other comprehensive income and is effective for fiscal years beginning after December 15, 2012. We adopted this guidance in the March 2013 quarter and have presented amounts reclassified out of accumulated other comprehensive income in a note to the financial statements. For additional information, see Note 15.

Presentation of Comprehensive Income

In June 2011, the FASB issued ASU 2011-05, "Presentation of Comprehensive Income." The standard revises the presentation and prominence of the items reported in other comprehensive income and is effective retrospectively for fiscal years beginning after December 15, 2011. We adopted this standard in 2012 and have presented comprehensive income in our Consolidated Statements of Comprehensive (Loss) Income.

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 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 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 in our airline operations. 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) as 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 aircraft fuel prices, interest rates and foreign currency exchange rates impact our results of operations. In an effort to manage our exposure to these risks, we enter into derivative contracts and adjust our derivative portfolio as market conditions change. 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 record 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 based on market prices at the end of the reporting period for contracts settling in future periods.

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 other 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
Increases in jet 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 other 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 other 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.

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 contracting party 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 cash and cash equivalents or prepaid expenses and other, with the offsetting obligation in accounts payable. The hedge margin we provide to counterparties is recorded in hedge margin receivable. All cash flows associated with purchasing and settling hedge contracts are classified as operating cash flows.

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 frequent flyer program (the “SkyMiles Program”) offers incentives to travel on Delta. This program allows customers to earn mileage credits by flying on Delta, regional air carriers with which we have contract carrier agreements 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 two deliverables: (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 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 access to Delta SkyClub 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.

In December 2014, we amended our marketing agreements with American Express which increased the value we will receive under the agreements and extended the term to 2022. The amended agreements became effective January 1, 2015. The deliverables under the amended agreements are substantially similar to the previous agreement. We will account for the amended agreements consistent with the accounting method adopted in September 2013 that allocates the consideration received to the individual products and services delivered based on their relative selling prices. The increased value received under the amended agreements will increase the amount of deferred revenue for the travel component and increase the value of the other deliverables, which are recognized in other revenue as they are provided.

In September 2013, we modified our marketing agreements with American Express that required us to change the accounting method for recording SkyMiles sold. Under the previous method, the embedded premium or discount was allocated to the residual products or services in a combined transaction. The new method allocates consideration received based on the relative selling price of each product or service. 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, access to Delta Sky Club lounges and other benefits while traveling on Delta and (4) brand value. The impact of adopting the relative selling price method re-allocated a portion of the embedded discount to the travel component, lowering the deferral rate we use to record miles sold under the agreements and increasing revenue recognized on the remaining deliverables.

We recognize revenue as we deliver each sales element. We defer the travel deliverable (miles) 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

We have contract carrier agreements with third-party regional carriers ("Contract Carriers"), in addition to our wholly-owned subsidiary, Endeavor. In May 2013, Endeavor emerged from bankruptcy and we became its sole owner pursuant to a confirmed plan of reorganization. Our wholly-owned subsidiary, Comair, Inc. ("Comair") ceased operations in September 2012 (see Note 17).

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 all of our Contract Carrier agreements as regional carriers passenger revenue. We record expenses related to our Contract Carrier agreements, as regional carrier expense.

Cargo Revenue

Cargo revenue is recognized when we provide the transportation.

Other Revenue

Other revenue is primarily comprised of (1) the non-travel components of the sale of mileage credits discussed above, (2) baggage fee revenue, (3) other miscellaneous service revenue, including ticket change fees, (4) revenue from ancillary businesses, such as the aircraft maintenance and repair and staffing services we provide to third parties and (5) the sale of certain non-jet fuel products by our refinery to third parties.

Long-Lived Assets

The following table summarizes our property and equipment:
 
 
December 31,
(in millions, except for estimated useful life)
Estimated Useful Life
2014
2013
Flight equipment
21-30 years
$
24,313

$
23,373

Ground property and equipment
3-40 years
5,198

4,596

Flight and ground equipment under capital leases
Shorter of lease term or estimated useful life
1,141

1,296

Advance payments for equipment
 
617

381

Less: accumulated depreciation and amortization(1)
 
(9,340
)
(7,792
)
Total property and equipment, net
 
$
21,929

$
21,854



(1) Includes accumulated amortization for flight and ground equipment under capital leases in the amount of $767 million and $657 million at December 31, 2014 and 2013, 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 $1.7 billion, $1.6 billion and $1.5 billion for each of the years ended December 31, 2014, 2013 and 2012, 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 seven years. Included in the depreciation and amortization expense discussed above, we recorded $129 million, $110 million and $76 million for amortization of capitalized software for the years ended December 31, 2014, 2013 and 2012, respectively. The net book value of these assets totaled $411 million and $383 million at December 31, 2014 and 2013, respectively.

We record impairment losses on flight equipment and other long-lived assets used in operations when events and circumstances indicate the assets may be impaired and the estimated future cash flows generated by those assets are less than their carrying amounts. Factors which could cause 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. If the asset's carrying value exceeds its fair value calculated using the quantitative approach, we will record an impairment charge for the difference in fair value and carrying value.

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. 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. In evaluating goodwill for impairment, we estimate the fair value of our reporting unit by considering market capitalization and other factors if it is more likely than not that the fair value of our reporting unit is less than its carrying value. 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. Definite-lived intangible assets consist primarily of marketing 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) a combination of limited market transactions and the lease savings method for certain airport slots (which reflects potential lease savings from owning the slots rather than leasing them from another airline at market rates), (3) the royalty method for the Delta tradename (which assumes hypothetical royalties generated from using our tradename) or (4) 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 current and noncurrent deferred income taxes. A valuation allowance is recorded to reduce deferred tax assets when necessary. For additional information about our income taxes, see Note 13.

Manufacturers' Credits

We periodically receive credits in connection with the acquisition of aircraft and engines. These credits are deferred until the aircraft and engines are delivered, and then applied as a reduction to the cost of the related equipment.

Maintenance Costs

We record maintenance costs to aircraft maintenance materials and outside repairs. Maintenance costs are expensed as incurred, except for costs incurred under power-by-the-hour contracts, which are expensed based on actual hours flown. Power-by-the-hour contracts transfer certain risk to third-party service providers and fix the amount we pay per flight hour to the service provider in exchange for maintenance and repairs under a predefined maintenance program. Modifications that enhance the operating performance or extend the useful lives of airframes or engines are capitalized and amortized over the remaining estimated useful life of the asset or the remaining lease term, whichever is shorter.

Advertising Costs

We expense advertising costs as other selling expenses in the year incurred. Advertising expense was approximately $200 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Commissions

Passenger sales commissions are recognized in operating expense when the related revenue is recognized.
Segments
Segments
SEGMENTS

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, or decision making group, 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.
Our airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the United States and around the world and other ancillary airline services, including maintenance and repair services for third parties. 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.

Our refinery segment provides jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. Our refinery segment operates for the benefit of the airline segment.

Refinery Operations

Fuel expense is our single largest expense. In June 2012, we purchased an oil refinery as part of our strategy to mitigate the increasing cost of the refining margin we pay. At that time, global demand for jet fuel and related products had increased while jet fuel refining capacity had decreased in the U.S. (particularly in the Northeast), resulting in increases in the refining margin reflected in the prices we paid for jet fuel. Our wholly-owned subsidiaries, Monroe Energy, LLC, and MIPC, LLC (collectively, “Monroe”), acquired the Trainer refinery and related assets located near Philadelphia, Pennsylvania, from Phillips 66, which had shut down operations at the refinery. Monroe invested $180 million to acquire the refinery. Monroe received a $30 million grant from the Commonwealth of Pennsylvania. 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. The refinery, pipelines and terminal assets acquired were recorded at $180 million in property and equipment, net based on their respective fair values on the closing date of the transaction.

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, 2014, 2013 and 2012 was $5.1 billion, $5.4 billion and $1.1 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, 2014
 
 
 
 
 
 
Operating revenue:
$
40,217

$
6,959

 
 
 
$
40,362

Sales to airline segment
 
 
 
$
(1,313
)
(1) 
 
Exchanged products
 
 
 
(5,104
)
(2) 
 
Sales of refined products to third parties
 
 
 
(397
)
(3) 
 
Operating income(4)
2,110

96

 
 
 
2,206

Interest expense, net
650

—

 
 
 
650

Depreciation and amortization
1,745

26

 
 
 
1,771

Total assets, end of period
53,012

1,109

 
 
 
54,121

Capital expenditures
2,184

65

 
 
 
2,249

Year Ended December 31, 2013
 
 
 
 
 
 
Operating revenue:
$
37,773

$
7,003

 
 
 
$
37,773

Sales to airline segment
 
 
 
$
(1,156
)
(1) 
 
Exchanged products
 
 
 
(5,352
)
(2) 
 
Sales of refined products to third parties
 
 
 
(495
)
(3) 
 
Operating income (loss)(4)
3,516

(116
)
 
 
 
3,400

Interest expense, net
852

—

 
 
 
852

Depreciation and amortization
1,641

17

 
 
 
1,658

Total assets, end of period
51,080

1,172

 
 
 
52,252

Capital expenditures
2,516

52

 
 
 
2,568

Year Ended December 31, 2012
 
 
 
 
 
 
Operating revenue:
$
36,670

$
1,347

 
 
 
$
36,670

Sales to airline segment
 
 
 
$
(213
)
(1) 
 
Exchanged products
 
 
 
(1,121
)
(2) 
 
Sales of refined products to third parties
 
 
 
(13
)
(3) 
 
Operating income (loss)(4)
2,238

(63
)
 
 
 
2,175

Interest expense, net
1,005

—

 
 
 
1,005

Depreciation and amortization
1,561

4

 
 
 
1,565

Total assets, end of period
43,386

1,164

 
 
 
44,550

Capital expenditures
1,637

331

 
 
 
1,968


(1) 
Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location, which is New York Harbor, for jet fuel from the refinery.
(2) 
Represents value of products delivered under our strategic agreements, as discussed above, determined on a market price basis.
(3) 
Represents sales of refined products to third parties. These sales were at or near cost; accordingly, the margin on these sales is de minimis.
(4) 
Includes the impact of pricing arrangements between the airline segment and refinery segment with respect to the refinery's inventory price risk.
Fair Value Measurements
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 amount based on market expectations (including present value techniques, option-pricing and excess earnings models).

Assets (Liabilities) Measured at Fair Value on a Recurring Basis(1) 
(in millions)
December 31, 2014
Level 1
Level 2
Valuation
Technique
Cash equivalents
$
1,612

$
1,612

$
—

(a)
Short-term investments
 
 


U.S. government and agency securities
59

—

59

(a)
Asset- and mortgage-backed securities
392

—

392

(a)
Corporate obligations
749

—

749

(a)
Other fixed income securities
17

—

17

(a)
Restricted cash equivalents and investments
37

37

—

(a)
Long-term investments
118

90

28

(a)(b)
Hedge derivatives, net
 
 
 
 
Fuel hedge contracts
(1,848
)
(167
)
(1,681
)
(a)(b)
Interest rate contracts
(7
)
—

(7
)
(a)(b)
Foreign currency exchange contracts
73

—

73

(a)
(in millions)
December 31, 2013
Level 1
Level 2
Valuation
Technique
Cash equivalents
$
2,487

$
2,487

$
—

(a)
Short-term investments


 



U.S. government securities
959

959

—

(a)
Restricted cash equivalents and investments
118

118

—

(a)
Long-term investments
109

80

29

(a)(b)
Hedge derivatives, net
 
 
 
 
Fuel hedge contracts
314

16

298

(a)(b)
Interest rate contracts
(67
)
—

(67
)
(a)(b)
Foreign currency exchange contracts
257

—

257

(a)

(1) 
See Note 11, “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 primarily support letters of credit that relate to certain projected self-insurance obligations and airport commitments and generally consist of money market funds and time deposits. The fair value of these investments is based on a market approach using prices and other relevant information generated by market transactions involving identical or comparable assets.

Short-Term Investments. Short-term investments generally consist of U.S. government and agency securities, asset- and mortgage-backed securities, corporate obligations and other fixed income securities. The U.S. government securities designated as held-to-maturity are recorded at cost, which approximates fair value, while those that are designated as available-for-sale are valued based on quoted market prices. The fair values of our U.S. government agency securities, asset- and mortgage-backed securities, corporate obligations and other fixed term securities are based on a market approach using industry standard valuation techniques that incorporate observable inputs such as quoted interest rates, benchmark curves, credit ratings of the security and other observable information.

Long-Term Investments. Our long-term investments that are measured at fair value primarily consist of equity investments in Grupo Aeroméxico, S.A.B. de C.V., the parent company of Aeroméxico, and GOL Linhas Aéreas Inteligentes, S.A, the parent company of GOL. Shares of the parent companies of Aeroméxico and GOL are traded on public exchanges and we have valued our investments based on quoted market prices. The investments are classified in other noncurrent assets.

Hedge Derivatives. Our derivative contracts are generally negotiated with counterparties without going through a public exchange. Accordingly, our fair value assessments give consideration to the risk of counterparty default (as well as our own credit risk).

•
Fuel Contracts. Our fuel hedge portfolio consists of options, swaps and futures. The hedge contracts include crude oil, diesel fuel and jet fuel, as these commodities are highly correlated with the price of jet fuel that we consume. Option contracts are valued under an income approach using option pricing models based on data either readily observable in public markets, derived from public markets or provided by counterparties who regularly trade in public markets. Volatilities used in these valuations ranged from 26% to 57% depending on the maturity dates, underlying commodities and strike prices of the option contracts. Swap contracts are valued under an income approach using a discounted cash flow model based on data either readily observable or derived from public markets. Discount rates used in these valuations vary with the maturity dates of the respective contracts and are based on LIBOR. Futures contracts and options on futures contracts are traded on a public exchange and valued based on quoted market prices.

•
Interest Rate Contracts. Our interest rate derivatives consist of swap contracts and are valued primarily based on data readily observable in public markets.

•
Foreign Currency Exchange Contracts. Our foreign currency derivatives consist of Japanese yen and Canadian dollar forward contracts and are valued based on data readily observable in public markets.
Investments
Investments
INVESTMENTS

Short-Term Investments

During the September 2014 quarter, we modified our approach to managing short-term investments by investing $1.5 billion of cash reserves in externally managed investment accounts. These new investments are comprised of U.S. government and agency securities, asset- and mortgage-backed securities, corporate obligations and other fixed term securities.

Maturities for Short-Term Investments

The estimated fair values of short-term investments, which approximate cost at December 31, 2014, are shown below by contractual maturity. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to retire our investments without prepayment penalties.
(in millions)
Available-
For-Sale
December 31, 2014
 
Due in one year or less
$
175

Due after one year through three years
791

Due after three years through five years
163

Due after five years
88

Total
$
1,217



Other Investments

Endeavor

In May 2013, Endeavor emerged from bankruptcy and we became its sole owner pursuant to a confirmed plan of reorganization. Consideration for our acquisition of Endeavor totaled $30 million, primarily consisting of previous loans and advances we made to Endeavor. The primary assets acquired and liabilities assumed related to 16 CRJ-900 aircraft with a fair value of $270 million and related debt of $240 million on the date of acquisition. These aircraft and 169 other aircraft leased by Endeavor were already in service to Delta; accordingly, our total regional carrier fleet was unaffected by the acquisition.

Virgin Atlantic

In June 2013, we purchased a non-controlling 49% equity stake in Virgin Atlantic Limited, the parent company of Virgin Atlantic Airways, for $360 million. In addition, we entered into a collaborative arrangement with Virgin Atlantic on non-stop routes between the United Kingdom and North America. In September 2013, the U.S. Department of Transportation ("DOT") granted antitrust immunity on these routes. Effective January 1, 2014, we began our immunized collaborative arrangement, which allows for joint marketing and sales, coordinated pricing and revenue management, networking planning and scheduling and other coordinated activities with respect to operations on routes between North America and the United Kingdom. As a result of this relationship, our customers have increased access and frequencies to London's Heathrow airport from points in the U.S., primarily from our hub at New York's JFK airport.

We account for the investment under the equity method of accounting and recognize our portion of Virgin Atlantic's financial results in other expense in our Consolidated Statements of Operations. As part of the equity method of accounting, we allocated the investment in Virgin Atlantic to (1) our portion of their equity, (2) adjustments in the fair market value of assets and liabilities and (3) implied goodwill. Our share of Virgin Atlantic's equity was approximately $60 million; accordingly, the majority of the allocation was to the fair value of indefinite-lived intangible assets and implied goodwill.
Derivatives and Risk Management
Derivatives and Risk Management
DERIVATIVES AND RISK MANAGEMENT

Changes in aircraft fuel prices, interest rates and foreign currency exchange rates impact our results of operations. In an effort to manage our exposure to these risks, we enter into derivative contracts and adjust our derivative portfolio as market conditions change.

Aircraft Fuel Price Risk

Changes in aircraft fuel prices materially impact our results of operations. We actively manage our fuel price risk through a hedging program intended to reduce the financial impact from changes in the price of jet fuel. We utilize different contract and commodity types in this program and frequently test their economic effectiveness against our financial targets. We rebalance the hedge portfolio from time to time according to market conditions, which may result in locking in gains or losses on hedge contracts prior to their settlement dates. During the years ended December 31, 2014 and 2013, we recorded a $2.0 billion fuel hedge loss and a $493 million fuel hedge gain, 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. During 2014, we terminated our remaining interest rate swap agreements designated as cash flow hedges in connection with the extinguishment of the underlying debt.

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.

During the December 2014 quarter, we restructured certain foreign currency exchange contracts by re-hedging exposures at current market levels, resulting in an unrealized gain of $150 million. The gain on these contracts will be recognized during 2015 in accordance with their original contract settlement dates.

Hedge Position as of December 31, 2014
(in millions)
Notional Balance
Final Maturity Date
Hedge Derivatives Asset
Other Noncurrent Assets
Hedge Derivatives Liability
Other Noncurrent Liabilities
Hedge Derivatives, net
Designated as hedges
 
 
 
 
 
 
 
 
Interest rate contracts (fair value hedges)
$
416

U.S. dollars
August 2022
5

—

—

(12
)
(7
)
Foreign currency exchange contracts
77,576

Japanese yen
October 2017
25

49

(1
)
—

73

511

Canadian dollars
Not designated as hedges
 
 
 
 
 
 
 
 
Fuel hedge contracts
8,604

gallons - crude oil, diesel and jet fuel
December 2016
1,048

3

(2,771
)
(128
)
(1,848
)
Total derivative contracts
 
 
$
1,078

$
52

$
(2,772
)
$
(140
)
$
(1,782
)

Hedge Position as of December 31, 2013
(in millions)
Notional Balance
Final Maturity Date
Hedge Derivatives Asset
Other Noncurrent Assets
Hedge Derivatives Liability
Other Noncurrent Liabilities
Hedge Derivatives, net
Designated as hedges
 
 
 
 
 
 
 
 
Interest rate contracts (cash flow hedges)
$
477

U.S. dollars
May 2019
$
—

$
—

$
(17
)
$
(26
)
$
(43
)
Interest rate contract (fair value hedge)
$
445

U.S. dollars
August 2022
—

—

(2
)
(22
)
(24
)
Foreign currency exchange contracts
120,915

Japanese yen
August 2016
157

100

—

—

257

438

Canadian dollars
 
 
 
 
Not designated as hedges
 
 
 
 
 
 
 
 
Fuel hedge contracts
5,318

gallons - crude oil, diesel and jet fuel
March 2015
428

29

(127
)
(16
)
314

Total derivative contracts
 
 
$
585

$
129

$
(146
)
$
(64
)
$
504



Offsetting Assets and Liabilities

We have master netting arrangements with all of our counterparties giving us the right of setoff. We have elected not to offset the fair value positions recorded on our Consolidated Balance Sheets. The following table shows the potential net fair value positions had we elected to offset.
(in millions)
Hedge Derivatives Asset
Other Noncurrent Assets
Hedge Derivatives Liability
Other Noncurrent Liabilities
Hedge Derivatives, Net
December 31, 2014
 
 
 
 
 
Net derivative contracts
$
29

$
49

$
(1,723
)
$
(137
)
$
(1,782
)
December 31, 2013
 
 
 
 
 
Net derivative contracts
$
456

$
116

$
(19
)
$
(49
)
$
504


Designated Hedge Gains (Losses)

Gains (losses) related to our designated hedge contracts are as follows:
 
Effective Portion Reclassified from AOCI to Earnings
 
Effective Portion Recognized in Other Comprehensive Income (Loss)
 
Year Ended December 31,
(in millions)
2014
2013
2012
 
2014
2013
2012
Fuel hedge contracts
$
—

$
—

$
15

 
$
—

$
—

$
(15
)
Interest rate contracts
(31
)
—

(5
)
 
38

28

14

Foreign currency exchange contracts
158

135

(25
)
 
(34
)
133

212

Total designated
$
127

$
135

$
(15
)
 
$
4

$
161

$
211



As of December 31, 2014, we have recorded $174 million of net gains on cash flow hedge contracts in AOCI, which are scheduled to settle and be reclassified into earnings within the next 12 months.

Credit Risk

To manage credit risk associated with our aircraft fuel price, interest rate and foreign currency hedging programs, we evaluate counterparties based on several criteria including their credit ratings and limit our exposure to any one counterparty.

Our hedge contracts contain margin funding requirements. The margin funding requirements may cause us to post margin to counterparties or may cause counterparties to post margin to us as market prices in the underlying hedged items change. Due to the fair value position of our hedge contracts, we posted net margin of $925 million as of December 31, 2014 and received net margin of $65 million as of December 31, 2013.

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

We self-insure a portion of our losses from claims related to workers' compensation, environmental issues, property damage, medical insurance for employees and general liability. Losses are accrued based on an estimate of the aggregate liability for claims incurred, using independent actuarial reviews based on standard industry practices and our historical experience.
JFK Redevelopment
JFK Redevelopment
JFK REDEVELOPMENT

We are optimizing our international and trans-continental flight schedule and undertaking a redevelopment project at John F. Kennedy International Airport (“JFK”) to facilitate convenient connections for our passengers and improve coordination with our SkyTeam alliance partners. Prior to beginning the redevelopment project, we primarily operated domestic flights out of Terminal 2 and international flights out of Terminal 3 under leases with the Port Authority of New York and New Jersey (“Port Authority”), which operates JFK. In 2013, we completed construction on nine new international widebody gates at Terminal 4, Concourse B, and relocated our operations from Terminal 3 to our new facilities there. In 2014, we substantially completed the demolition of Terminal 3 and began work on the site for ramp paving in order to accommodate new aircraft parking. During 2013, we also announced that we would begin construction of another extension of Terminal 4, Concourse B, for an additional $180 million expansion project that added 11 more regional jet gates. This second extension was completed in January 2015 when we relocated the majority of our regional jet operations from Terminal 2 to Terminal 4. Terminal 4 is operated by JFK International Air Terminal LLC (“IAT”), a private party, under its lease with the Port Authority.

In December 2010, the Port Authority issued approximately $800 million principal amount of special project bonds to fund the majority of the project. Also in December 2010, we entered into a 33 year agreement with IAT (“Sublease”) to sublease space in Terminal 4. IAT is unconditionally obligated under its lease with the Port Authority to pay rentals from the revenues it receives from its operation and management of Terminal 4, including, among others, our rental payments under the Sublease, in an amount sufficient to pay principal and interest on the bonds. We do not guarantee payment of the bonds. The balance of the project costs will be provided by Port Authority passenger facility charges, Transportation Security Administration funding and our contributions. Our future rental payments will vary based on our share of total passenger and baggage counts at Terminal 4, the number of gates we occupy in Terminal 4, IAT's actual expenses of operating Terminal 4 and other factors.

We are responsible for the management and construction of the project and bear construction risk, including cost overruns. We record an asset for project costs as construction takes place, regardless of funding source. These costs include design fees, labor and construction permits, as well as physical construction costs such as paving, systems, utilities and other costs generally associated with construction projects. The project will also include capitalized interest, based on amounts we spend, calculated based on our weighted average incremental borrowing rate. The related construction obligation is recorded as a liability and is equal to project costs funded by parties other than us. Future rental payments will reduce the construction obligation and result in the recording of interest expense, calculated using the effective interest method. During the construction period, we are also incurring costs for construction site ground rental expense and remediation and abatement activities, which are expensed as incurred. As of December 31, 2014, we have recorded $739 million as a fixed asset, as if we owned the asset, and $733 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 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.
Intangible Assets
Intangible Assets
INTANGIBLE ASSETS

Indefinite-Lived Intangible Assets
 
Carrying Amount at December 31,
(in millions)
2014
2013
International routes and slots
$
2,287

$
2,287

Delta tradename
850

850

SkyTeam related assets
661

661

Domestic slots
622

622

Total
$
4,420

$
4,420



International Routes and Slots. Our international routes and slots are indefinite-lived intangible assets and primarily relate to Pacific route authorities and slots at Tokyo-Narita International Airport ("Narita"). This intangible asset supports Delta’s Narita hub activities and is essential to Delta's Pacific network.

Domestic Slots. Our domestic slots are indefinite-lived intangible assets and relate to our slots at Washington-Reagan National and New York-LaGuardia airports.

Changes to our operations could result in an impairment charge or a change from indefinite-lived to definite-lived in the period in which the changes occur or are projected to occur.

Definite-Lived Intangible Assets
 
December 31, 2014
 
December 31, 2013
(in millions)
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Marketing agreements
$
730

$
(648
)
 
$
730

$
(602
)
Contracts
193

(92
)
 
193

(83
)
Other
53

(53
)
 
53

(53
)
Total
$
976

$
(793
)
 
$
976

$
(738
)


Amortization expense was $55 million for the year ended December 31, 2014, and approximately $70 million for each of the years ended December 31, 2013 and 2012. The following table summarizes the estimated aggregate amortization expense for each of the five succeeding fiscal years:
Years Ending December 31,
(in millions)
 
2015
$
18

2016
18

2017
17

2018
17

2019
16

Long-Term Debt
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, 2014
2014
2013
Pacific Facilities(1)(2):
 
 
 
 
 
 
 
 
Pacific Term Loan B-1(3)
October 2018
3.25%
variable(6)
$
1,078

$
1,089

Pacific Term Loan B-2(3)
April 2016
2.41%
variable(6)
392

396

Pacific Revolving Facility
October 2017
undrawn
variable(6)
—

—

2011 Credit Facilities(1)(4):
 
 
 

 

 
 
Term Loan Facility(3)
April 2017
3.25%
variable(6)
1,327

1,341

Revolving Credit Facility
April 2016
undrawn
variable(6)
—

—

Other secured financing arrangements:
 
 

 
 
 
 
 
Certificates(5)(7)
2015
to
2023
4.75%
to
9.75%
3,226

3,834

Aircraft financings(5)(7)
2015
to
2026
0.62%
to
6.76%
2,988

3,787

Other financings(5)(8)
2015
to
2031
0.00%
to
5.25%
305

627

Other revolving credit facilities(1)
2015
to
2017
undrawn
variable(6)
—

—

Total secured debt
 
 
 
 
 
 
9,316

11,074

Other unsecured debt(5)
2015
to
2035
3.01%
to
9.00%
153

154

Total secured and unsecured debt
 
 
 
 
 
 
9,469

11,228

Unamortized discount, net
 
 
 
 
 
 
(90
)
(383
)
Total debt
 
 
 
 
 
 
9,379

10,845

Less: current maturities
 
 
 
 
 
 
(1,109
)
(1,449
)
Total long-term debt
 
 
 
 
 
 
$
8,270

$
9,396

 
(1) 
Guaranteed by substantially all of our domestic subsidiaries (the "Guarantors").
(2) 
Secured by a first lien on our Pacific route authorities and certain related assets.
(3) 
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.
(4) 
Secured by liens on certain of our and the Guarantors' assets, including accounts receivable, flight equipment, ground property and equipment, certain aircraft, spare engines and parts, certain non-Pacific international routes, domestic slots, real estate and certain investments. These assets also secure $250 million of certain fuel hedging obligations pari passu (i.e., on equal priority) with the term loan and revolver.
(5) 
Due in installments.
(6) 
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.
(7) 
Secured by aircraft.
(8) 
Primarily includes loans secured by spare parts, spare engines and real estate.

2014 Extinguishment and Financings

Debt Extinguishment. During 2014, we extinguished $1.6 billion of existing debt under our secured financing arrangements prior to scheduled maturity. We recorded losses of $268 million in connection with the early extinguishment of these debt obligations. The losses primarily relate to unamortized debt discounts resulting from fair value adjustments recorded in the 2008 purchase accounting of Northwest Airlines.

Aircraft Financings. During 2014, we entered into financing arrangements to borrow $1.1 billion, which are secured by 34 aircraft, to finance new aircraft and to refinance a portion of the debt extinguished prior to its maturity. These loans bear interest at a variable rate equal to LIBOR plus a specified margin and mature between 2018 and 2026.

Key Financial Covenants

Our credit 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. We were in compliance with the covenants in our financing agreements at December 31, 2014.
 
Pacific Facilities
2011 Credit Facilities
Minimum fixed charge coverage ratio (1)
1.20:1
1.20:1
Minimum unrestricted liquidity
 
 
Unrestricted cash and permitted investments
n/a
$1.0 billion
Unrestricted cash, permitted investments and undrawn revolving credit facilities
$2.0 billion
$2.0 billion
Minimum collateral coverage ratio (2)
1.60:1
1.67:1 (3)


(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 meets specified eligibility standards to (b) the sum of the aggregate outstanding obligations and certain other obligations.
(3) 
Excluding the non-Pacific international routes from the collateral for purposes of the calculation, the required minimum collateral coverage ratio is 0.75:1.

Availability Under Revolving Credit Facilities

The table below shows availability under revolving credit facilities, all of which were undrawn, as of December 31, 2014:
(in millions)
 
Revolving Credit Facility
$
1,225

Pacific Revolving Credit Facility
450

Other revolving credit facilities
228

Total availability under revolving credit facilities
$
1,903



Future Maturities

The following table summarizes scheduled maturities of our debt at December 31, 2014:
Years Ending December 31,
(in millions)
Total Secured and Unsecured Debt
Amortization of Debt Discount, net
 
2015
$
1,111

$
(19
)
 
2016
1,326

(21
)
 
2017
2,137

(19
)
 
2018
2,028

(15
)
 
2019
1,158

(12
)
 
Thereafter
1,709

(4
)
 
Total
$
9,469

$
(90
)
$
9,379



Fair Value of Debt

Market risk associated with our fixed and variable rate long-term debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. In the table below, the aggregate fair value of debt is based primarily on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral and is classified primarily as Level 2 within the fair value hierarchy.
 
December 31,
(in millions)
2014
2013
Total debt at par value
$
9,469

$
11,228

Unamortized discount, net
(90
)
(383
)
Net carrying amount
$
9,379

$
10,845

Fair value
$
9,800

$
11,600

Lease Obligations
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 approximately $1.2 billion for the year ended December 31, 2014 and $1.1 billion for the years ended December 31, 2013 and 2012. 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, as of December 31, 2014, our minimum rental commitments under capital leases and noncancelable operating leases (including certain aircraft flown by Contract Carriers) with initial or remaining terms in excess of one year:

Capital Leases
Years Ending December 31,
(in millions)
Total
2015
$
157

2016
139

2017
97

2018
51

2019
33

Thereafter
42

Total minimum lease payments
519

Less: amount of lease payments representing interest
(121
)
Present value of future minimum capital lease payments
398

Less: current obligations under capital leases
(107
)
Long-term capital lease obligations
$
291



Operating Leases
Years Ending December 31,
(in millions)
Delta Lease Payments(1)
Contract Carrier Aircraft Lease Payments(2)
Total
2015
$
1,363

$
344

$
1,707

2016
1,187

306

1,493

2017
1,056

267

1,323

2018
881

239

1,120

2019
747

182

929

Thereafter
5,873

296

6,169

Total minimum lease payments
$
11,107

$
1,634

$
12,741


 
(1) 
Includes payments accounted for as construction obligations. See Note 6.
(2) 
Represents the minimum lease obligations under our Contract Carrier agreements with Compass Airlines, Inc., ExpressJet Airlines, Inc., GoJet Airlines, LLC, Shuttle America Corporation (“Shuttle America”) and SkyWest Airlines, Inc.
American Express Relationship
American Express Relationship
AMERICAN EXPRESS RELATIONSHIP

General. 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 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.

During the December 2014 quarter, we amended our agreements with American Express resulting in a modification of the terms of these agreements. The multi-year extended agreements became effective January 1, 2015. Previously, during 2013, we amended our agreements with American Express that modified the products and services provided under the agreements. The amendments changed certain mileage award redemptions and access to Sky Clubs, among other things. For a description of how these amendments changed our accounting, please see Note 1 under Frequent Flyer Program.

Advance Purchase of Restricted SkyMiles. In 2008, we entered into a multi-year extension of our American Express agreements and received $1.0 billion from American Express for an advance purchase of Restricted SkyMiles (the "prepayment"). The 2008 agreement provided that our obligations with respect to the prepayment would be satisfied as American Express uses the purchased miles over a specified future period (“SkyMiles Usage Period”), rather than by cash payments from us to American Express. Due to the SkyMiles Usage Period and other restrictions placed upon American Express regarding the timing and use of the SkyMiles, we classified the $1.0 billion prepayment we received as long-term debt.

In 2010, we amended our 2008 American Express agreement. The amendments, among other things, (1) provided that Cardholders could check their first bag for free on every Delta flight through June 2013 ("Baggage Fee Waiver Period"), (2) changed the SkyMiles Usage Period to a three-year period beginning in the December 2011 quarter from a two-year period beginning in the December 2010 quarter and (3) gave American Express the option to extend our agreements with them for one year.

During the SkyMiles Usage Period, American Express was drawing down on the prepayment instead of paying cash to Delta for SkyMiles used. As SkyMiles were used by American Express, we recognized the two separate revenue components of these SkyMiles consistent with our accounting policy discussed in Note 1. In December 2013, we and American Express amended this agreement to allow American Express to use these SkyMiles immediately and without restriction. As a result, in the December 2013 quarter, the remaining $285 million of the original $1.0 billion pre-payment was classified as frequent flyer deferred revenue with a portion related to the marketing component recorded within other accrued liabilities. As of December 31, 2014, there was no remaining deferred revenue or other accrued liabilities related to this prepayment.

Annual Sale of Unrestricted SkyMiles. In December 2011, we amended our American Express agreements to sell to American Express $675 million of unrestricted SkyMiles in each of the four years ending December 31, 2014. The December 2011 amendment also extended the Baggage Fee Waiver Period. The SkyMiles purchased pursuant to the December 2011 amendment may be used immediately by American Express. The usage of these SkyMiles is not restricted in any way. These annual purchases of SkyMiles were recorded as deferred revenue within current liabilities. The portion of each purchase of SkyMiles related to mileage credits redeemable for future travel was classified within frequent flyer deferred revenue and the portion related to the marketing component was classified within other accrued liabilities. The December 2011 amendment did not change the number of miles that we expected American Express to purchase from us over the four-year period; it only impacted the timing of those purchases.

Fuel Card Obligation. In December 2011, we obtained 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 $612 million and must be paid monthly. At December 31, 2014 and December 31, 2013, we had $561 million and $602 million, respectively, outstanding on this purchasing card, which was classified as a fuel card obligation within other accrued liabilities.
Employee Benefit Plans
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. Delta 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 estimate the funding under these plans will total at least $950 million in 2015, including $340 million of contributions above the minimum funding requirements.

Defined Contribution Pension Plans. Delta sponsors several defined contribution plans. These plans generally cover different employee groups and employer contributions vary by plan. The cost associated with our defined contribution pension plans is shown in the Net Periodic Cost table below.

Postretirement Healthcare Plans. We sponsor healthcare plans that provide 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. During 2012, we remeasured our postretirement healthcare obligation to account for changes to retiree medical benefits resulting from the final integration of wages and benefits following our merger with Northwest Airlines and the voluntary workforce reduction programs offered to eligible employees. As a result, we recorded $116 million of special termination benefits in restructuring and other items (see Note 17).

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)
2014
2013
 
2014
2013
Benefit obligation at beginning of period
$
19,060

$
21,489

 
$
3,205

$
3,582

Service cost
—

—

 
52

49

Interest cost
928

861

 
155

143

Actuarial loss (gain)
2,923

(2,212
)
 
338

(301
)
Benefits paid, including lump sums and annuities
(1,055
)
(1,078
)
 
(307
)
(313
)
Participant contributions
—

—

 
44

45

Benefit obligation at end of period(1)
$
21,856

$
19,060

 
$
3,487

$
3,205

 
 
 
 
 
 
Fair value of plan assets at beginning of period
$
8,937

$
8,196

 
$
1,043

$
1,004

Actual gain on plan assets
556

905

 
57

129

Employer contributions
917

914

 
160

191

Participant contributions
—

—

 
44

45

Benefits paid, including lump sums and annuities
(1,055
)
(1,078
)
 
(322
)
(326
)
Fair value of plan assets at end of period
$
9,355

$
8,937


$
982

$
1,043

 
 
 
 
 
 
Funded status at end of period
$
(12,501
)
$
(10,123
)
 
$
(2,505
)
$
(2,162
)

(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 2014, net actuarial losses increased our benefit obligation by $3.3 billion. This increase is primarily due to the decrease in discount rates from 2013 to 2014 and changes in life expectancy assumptions. These losses are recorded in AOCI and reflected in the table below. For additional information about life expectancy assumptions, see “Life Expectancy” below.

Estimated amounts that will be amortized from AOCI into net periodic benefit cost in 2015 are a net actuarial loss of $230 million. 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)
2014
2013
 
2014
2013
Current liabilities
$
(28
)
$
(22
)
 
$
(139
)
$
(139
)
Noncurrent liabilities
(12,473
)
(10,101
)
 
(2,366
)
(2,023
)
Total liabilities
$
(12,501
)
$
(10,123
)
 
$
(2,505
)
$
(2,162
)
 
 
 
 
 
 
Net actuarial loss
$
(8,409
)
$
(5,349
)
 
$
(465
)
$
(103
)
Prior service credit
—

—

 
135

161

Total accumulated other comprehensive income (loss), pre-tax
$
(8,409
)
$
(5,349
)
 
$
(330
)
$
58



Net Periodic Cost
 
Pension Benefits
 
Other Postretirement and
Postemployment Benefits
 
Year Ended December 31,
 
Year Ended December 31,
(in millions)
2014
2013
2012
 
2014
2013
2012
Service cost
$
—

$
—

$
—

 
$
52

$
49

$
56

Interest cost
928

861

930

 
155

143

164

Expected return on plan assets
(829
)
(734
)
(705
)
 
(84
)
(84
)
(77
)
Amortization of prior service credit
—

—

—

 
(26
)
(26
)
(21
)
Recognized net actuarial loss
134

221

143

 
4

25

23

Settlements
—

6

—

 
—

—

—

Special termination benefits
—

—

—

 
—

—

116

Net periodic cost
$
233

$
354

$
368

 
$
101

$
107

$
261

Defined contribution plan costs
551

490

426

 
—

—

—

Total cost
$
784

$
844

$
794

 
$
101

$
107

$
261



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)(2)
2014
2013
Weighted average discount rate
4.14
%
5.01
%
 
Year Ended December 31,
Net Periodic Cost(2)
2014
2013
2012
Weighted average discount rate - pension benefit
4.99
%
4.10
%
4.95
%
Weighted average discount rate - other postretirement benefit(3)
4.88
%
4.00
%
4.63
%
Weighted average discount rate - other postemployment benefit
5.00
%
4.13
%
4.88
%
Weighted average expected long-term rate of return on plan assets
8.94
%
8.94
%
8.94
%
Assumed healthcare cost trend rate(4)
7.00
%
7.00
%
7.00
%
 
(1) 
Our 2014 and 2013 benefit obligations are measured using a mortality table projected to 2022 and 2017, respectively.
(2) 
Future 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.
(3) 
Our assumptions reflect various remeasurements of certain portions of our obligations and represent the weighted average of the assumptions used for each measurement date.
(4) 
Assumed healthcare cost trend rate at December 31, 2014 is assumed to decline gradually to 5.00% by 2024 and remain level 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 accumulated plan benefit obligation for these plans, which provide benefits to eligible retirees and their dependents who are under age 65, at December 31, 2014, would have the following effects:
(in millions)
1% Increase
1% Decrease
Increase (decrease) in total service and interest cost
$
1

$
(2
)
Increase (decrease) in the accumulated plan benefit obligation
14

(28
)


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 asset assumptions annually. Our annual investment performance for one particular year does not, by itself, significantly influence our evaluation. Our actual historical annualized three and five year rate of return on plan assets for our defined benefit pension plans was approximately 11% and 9%, respectively, as of December 31, 2014. 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, 2014 was 9%.

Life Expectancy. We have historically utilized the Society of Actuaries' ("SOA") published mortality data in developing a best estimate of life expectancy. On October 27, 2014, the SOA published updated mortality tables for U.S. plans and an updated improvement scale, which both reflect improved longevity. Based on an evaluation of these new tables and our perspective of future longevity, we updated the mortality assumptions for purposes of measuring pension and other postretirement and postemployment benefit obligations at December 31, 2014. The improvement in life expectancy increases our benefit obligations and future expense as benefit payments are paid over an extended period of time.

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
2015
$
1,124

$
278

2016
1,133

272

2017
1,153

265

2018
1,173

256

2019
1,191

257

2020-2024
6,229

1,305



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 derivative investments, thus increasing the value of cash equivalents held at December 31, 2014 when compared to December 31, 2013. 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 derivatives. Delta has increased the allocation to risk-diversifying strategies 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 that are funded through trusts. The following table shows our benefit plan assets by asset class. These investments are presented net of the related benefit obligation in pension, postretirement and related benefits on the Consolidated Balance Sheets. See Note 3 for a description of the levels within the fair value hierarchy and associated valuation techniques used to measure fair value.
 
December 31, 2014
 
December 31, 2013
 
 
(in millions)
Level 1
Level 2
Level 3
Total
 
Level 1
Level 2
Level 3
Total
 
Valuation Technique
Equities and equity-related instruments
$
699

$
1,486

$
—

$
2,185

 
$
1,774

$
2,391

$
—

$
4,165

 
(a)
Fixed income and fixed income-related instruments
 
 
 

 
 
 
 


 
 
Sovereign fixed income
—

—

—

—
 
—

45

—

45

 
(a)(b)
Credit-related fixed income
—

470

124

594

 
—

525

59

584

 
(a)(b)
Other fixed income
18

617

—

635

 
—

870

—

870

 
(a)(b)
Private equity
—

—

1,213

1,213

 
—

—

1,366

1,366

 
(a)(b)
Real assets
—

—

663

663

 
—

—

688

688

 
(a)(b)
Hedge funds
31

—

2,214

2,245

 
—

—

552

552

 
(a)(b)
Cash equivalents
4

2,428

—

2,432

 
28

1,582

—

1,610

 
(a)
Other
—

—

384

384

 
—

—

—

—

 
(a)(b)
Total benefit plan assets
$
752

$
5,001

$
4,598

$
10,351

 
$
1,802

$
5,413

$
2,665

$
9,880

 
 


Equities and Equity-Related Instruments. Investments include common stock, commingled funds invested in 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. Commingled funds are valued using the net asset value divided by the number of shares outstanding, which is based on quoted market prices of the underlying assets owned by the fund. 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.

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.

Private Equity and Real Assets. Real assets include real estate, energy, timberland and agriculture. The valuation of private equity 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. We also assess the potential for adjustment to the fair value of these investments due to the lag in the availability of data. In these cases, we solicit preliminary valuation updates from the investment managers and use that information and corroborating data from public markets to determine any needed adjustments to estimate fair value.

Hedge Funds. Our hedge fund investments are primarily made through shares of limited partnerships or similar structures for which a liquid secondary market does not exist. Hedge funds are considered Level 3 assets. Hedge funds are valued monthly by a third-party administrator that has been appointed by the fund's general partner.

Cash Equivalents. These investments primarily consist of high-quality, short-term obligations that are a part of an institutional money market mutual fund. The fund’s market-based net asset value per share is calculated using current market quotations or an appropriate substitute that reflects current market conditions.

Other. Primarily globally-diversified, risk-managed commingled funds consisting mainly of equity, fixed income, and commodity exposures.

Changes in Level 3. The following table shows the changes in our benefit plan assets classified in Level 3:
(in millions)
Private Equity
Real Estate
Hedge Funds
Fixed Income
Other
Total
Balance at January 1, 2013
$
1,466

$
613

$
484

$
13

$
—

$
2,576

Actual return on plan assets:
 
 
 
 
 
 
Related to assets still held at the reporting date
98

61

49

2

—

210

Related to assets sold during the period
64

19

—

—

—

83

Purchases, sales and settlements, net
(262
)
(5
)
19

44

—

(204
)
Balance at December 31, 2013
1,366

688

552

59

—

2,665

Actual return on plan assets:
 
 
 
 
 
 
Related to assets still held at the reporting date
(116
)
(39
)
167

(17
)
(9
)
(14
)
Related to assets sold during the period
107

37

38

1

—

183

Purchases, sales and settlements, net
(144
)
(23
)
1,457

81

393

1,764

Balance at December 31, 2014
$
1,213

$
663

$
2,214

$
124

$
384

$
4,598



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 excluding profit sharing and special items, such as MTM adjustments and restructuring and other items. Our profit sharing program pays 10% to employees for the first $2.5 billion of annual profit and 20% of annual profit above $2.5 billion. For the years ended December 31, 2014, 2013 and 2012, we recorded expenses of $1.1 billion, $506 million and $372 million under the profit sharing program, respectively.
Commitments and Contingencies
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES

Aircraft Purchase and Lease Commitments

At December 31, 2014, future aircraft purchase commitments totaled approximately $14.0 billion and included 69 B-737-900ER, 45 A321-200, 25 A330-900neo, 25 A350-900, 18 B-787-8, 10 A330-300 and two CRJ-900 aircraft. We have obtained long-term financing commitments for a substantial portion of the purchase price of all of these aircraft, except for the 18 B-787-8 aircraft. Our purchase commitment for the 18 B-787-8 aircraft provides for certain aircraft substitution rights.
Years Ending December 31,
(in millions)
Total
2015
$
1,480

2016
1,970

2017
2,390

2018
2,230

2019
1,060

Thereafter
4,820

Total
$
13,950



In addition, we have agreements with Southwest Airlines and The Boeing Company to lease an additional 36 B-717-200 aircraft, which will be delivered during 2015.

Contract Carrier Agreements

We have contract carrier agreements with regional carriers expiring from 2016 to 2024.

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. 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.
Years Ending December 31,
(in millions)
Amount(1)
2015
$
2,220

2016
1,930

2017
1,720

2018
1,550

2019
1,430

Thereafter
2,370

Total
$
11,220


(1) 
These amounts exclude Contract Carrier payments accounted for as operating leases of aircraft, which are described in Note 9. The contingencies described below under “Contingencies Related to Termination of Contract Carrier Agreements” are also excluded from this table.

Revenue Proration Agreement. As of December 31, 2014, 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.

Contingencies Related to Termination of Contract Carrier Agreements

We have two agreements with Shuttle America that relate to its operation of Embraer 145 and Embraer 170/175 aircraft under capacity purchase agreements. The Embraer 145 aircraft were operated by Chautauqua Airlines at December 31, 2014 and assigned with our consent to Shuttle America in January 2015. By providing required advance notice, we may terminate the Embraer 145 agreement without cause at any time. Similarly, we may terminate the Embraer 170/175 agreement without cause at any time after January 2016. If we terminate either of the agreements without cause, Shuttle America has the right to (1) assign to us certain leased aircraft that the airline operates for us, provided we are able to continue the leases on the same terms the airline had prior to the assignment and (2) require us to purchase or lease certain of the aircraft the airline owns and operates for us at the time of the termination. If we are required to purchase aircraft owned by Shuttle America, the purchase price would be equal to the amount necessary to (1) reimburse Shuttle America for the equity it provided to purchase the aircraft and (2) repay in full any debt outstanding at such time that is not being assumed in connection with such purchase. If we are required to lease aircraft owned by Shuttle America, the lease would have (1) a rate equal to the aircraft-related debt payments of Shuttle America as if 90% of the aircraft was financed by Shuttle America and (2) other specified terms and conditions. Because these contingencies depend on our termination of the agreements without cause prior to their expiration dates, no obligation exists unless such termination occurs.

We estimate that the total fair values, determined as of December 31, 2014, of the aircraft Shuttle America could assign to us or require that we purchase if we terminate without cause our contract carrier agreement are approximately $111 million with respect to the Embraer 145 aircraft and $290 million with respect to the Embraer 170/175 aircraft. The actual amount we may be required to pay in these circumstances may be materially different from these estimates. If Shuttle America exercises this right, we must also pay Shuttle America 10% interest (compounded monthly) on the equity it provided when it purchased the aircraft. These equity amounts for the Embraer 145 and the Embraer 170/175 aircraft total $25 million and $52 million, respectively.

Venezuelan Currency Devaluation

As of December 31, 2014, we had $102 million of unrestricted cash on our Consolidated Balance Sheets primarily related to our 2013 Venezuelan ticket sales for which repatriation has been requested, but not yet authorized. While the cash is available for use in Venezuela, our ability to repatriate these funds has been limited due to Venezuelan government controls. Cash related to 2013 sales is stated at the official exchange rate of 6.3 bolivars per U.S. dollar. Until these funds can be repatriated, they are at risk of future devaluations.

In January 2014, the Venezuelan government affirmed the official exchange rate for 2013 sales and announced that some sectors of the economy, including airlines, will use the SICAD I reference rate of 11.7 bolivars per U.S. dollar for 2014 sales and repatriation requests. The SICAD I reference rate is a complementary currency auction system that was created by the Venezuelan government in 2013 for purposes of exchanging currency. At the time of the announcement, we recorded a $23 million charge in miscellaneous, net within other expense to reflect the devaluation of currency related to January 2014 sales that were denominated in bolivars. We are recording all sales subsequent to January 2014 at the then current SICAD I reference rate.

Legal Contingencies

We are involved in various legal proceedings related to employment practices, environmental issues, antitrust matters and other matters concerning our business. We record liabilities for losses from legal proceedings when we determine that it is probable that the outcome in a legal proceeding will be unfavorable and the amount of loss can be reasonably estimated. We cannot reasonably estimate the potential loss for certain legal proceedings because, for example, the litigation is in its early stages or the plaintiff does not specify the damages being sought. Although the outcome of the legal proceedings in which we are involved cannot be predicted with certainty, management believes that the resolution of these matters will not have a material adverse effect on our 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. There was no Reserve or amount withheld as of December 31, 2014 and 2013.

Other Contingencies

General Indemnifications

We are the lessee under many commercial real estate leases. It is common in these transactions for us, as the lessee, to agree to indemnify the lessor and the lessor's related parties for tort, environmental and other liabilities that arise out of or relate to our use or occupancy of the leased premises. This type of indemnity would typically make us responsible to indemnified parties for liabilities arising out of the conduct of, among others, contractors, licensees and invitees at, or in connection with, the use or occupancy of the leased premises. This indemnity often extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by either their sole or gross negligence or their willful misconduct.

Our aircraft and other equipment lease and financing agreements typically contain provisions requiring us, as the lessee or obligor, to indemnify the other parties to those agreements, including certain of those parties' related persons, against virtually any liabilities that might arise from the use or operation of the aircraft or other equipment.

We believe that our insurance would cover most of our exposure to liabilities and related indemnities associated with the commercial real estate leases and aircraft and other equipment lease and financing agreements described above. While our insurance does not typically cover environmental liabilities, we have certain insurance policies in place as required by applicable environmental laws.

Certain of our aircraft and other financing transactions include provisions that require us to make payments to preserve an expected economic return to the lenders if that economic return is diminished due to certain changes in 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 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, 2014, we had approximately 80,000 full-time equivalent employees. Approximately 18% 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
11,530
ALPA
December 31, 2015
Delta Flight Superintendents (Dispatchers)
380
PAFCA
March 31, 2018
Endeavor Air Pilots
1,300
ALPA
January 1, 2020
Endeavor Air Flight Attendants
1,000
AFA
December 31, 2018
Endeavor Air Dispatchers
60
DISTWU
December 31, 2018


In addition, 210 refinery employees of Monroe are represented by the United Steel Workers under an agreement that expires on February 28, 2015. 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. Formal negotiations toward a new or amended agreement have commenced.

Labor unions periodically engage in organizing efforts to represent various groups of our employees, including at our operating subsidiaries, that are not represented for collective bargaining purposes.

Other

We have certain contracts for goods and services that require us to pay a penalty, acquire inventory specific to us or purchase contract-specific equipment, as defined by each respective contract, if we terminate the contract without cause prior to its expiration date. Because these obligations are contingent on our termination of the contract without cause prior to its expiration date, no obligation would exist unless such a termination occurs.
Income Taxes
Income Taxes
INCOME TAXES

Income Tax (Provision) Benefit

Our income tax (provision) benefit consisted of the following:
 
Year Ended December 31,
(in millions)
2014
2013
2012
Current tax (provision) benefit:






Federal
$
21

$
24

$
—

State and local
(9
)
(3
)
15

International
(11
)
1

(14
)
Deferred tax (provision) benefit:






Federal
(424
)
7,197

(4
)
State and local
10

794

(13
)
Income tax (provision) benefit
$
(413
)
$
8,013

$
(16
)


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,
 
2014
2013
2012
U.S. federal statutory income tax rate
35.0
 %
35.0
 %
35.0
 %
State taxes, net of federal benefit
2.00

3.0

3.3

Decrease in valuation allowance
(2.40
)
(367.5
)
(40.8
)
Income tax allocation
—

12.7

—

Other
3.90

(0.4
)
4.0

Effective income tax rate
38.50
 %
(317.2
)%
1.5
 %

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)
2014
2013
Deferred tax assets:
 
 
Net operating loss carryforwards
$
4,782

$
6,024

Pension, postretirement and other benefits
6,033

4,982

Fuel derivatives MTM adjustments
777

—

AMT credit carryforward
357

378

Deferred revenue
1,824

1,965

Other
659

698

Valuation allowance
(46
)
(177
)
Total deferred tax assets
$
14,386

$
13,870

Deferred tax liabilities:
 
 
Depreciation
$
4,663

$
4,799

Intangible assets
1,684

1,704

Other
444

639

Total deferred tax liabilities
$
6,791

$
7,142

 
 
 
Net deferred tax assets
$
7,595

$
6,728


The following table shows our current and noncurrent deferred tax assets, net:
 
December 31,
(in millions)
2014
2013
Current deferred tax assets, net
$
3,275

$
1,736

Noncurrent deferred tax assets, net
4,320

4,992

Total deferred tax assets, net
$
7,595

$
6,728



The current and noncurrent components of our deferred tax balances are generally based on the balance sheet classification of the asset or liability creating the temporary difference. If the deferred tax asset or liability is not based on a component of our balance sheet, such as our net operating loss (“NOL”) carryforwards, the classification is presented based on the expected reversal date of the temporary difference. Our valuation allowance has been allocated between current and noncurrent based on the percentages of current and noncurrent deferred tax assets to total deferred tax assets.

At December 31, 2014, we had (1) $357 million of federal alternative minimum tax (“AMT”) credit carryforwards, which do not expire and (2) $12.0 billion of federal pre-tax NOL carryforwards, which will not begin to expire until 2024.

Valuation Allowance

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. We recorded a full valuation allowance in 2004 due to our cumulative loss position at that time, compounded by the negative industry-wide business trends and outlook.

At December 31, 2012, we retained an $11.0 billion valuation allowance against our net deferred tax assets. At December 31, 2013, we released substantially all of the valuation allowance against our net deferred income tax assets, resulting in an $8.3 billion benefit in our provision for income taxes. At December 31, 2013, we retained a valuation allowance of $177 million against certain state and local operating loss and credit carryforwards, due to limited carryforward periods.

At the end of 2014, we maintained a $46 million valuation allowance, primarily related to state net operating losses with limited expiration periods. During 2014, we continued our trend of sustained profitability, recording a pre-tax profit of $1.1 billion for the year. After considering all available positive and negative evidence, we released additional valuation allowance related to net operating losses and capital loss carryovers in the December 2014 quarter.

The following table shows the balance of our valuation allowance and the associated activity:
(in millions)
2014
2013
2012
Valuation allowance at beginning of period
$
177

$
10,963

$
10,705

Income tax provision
(9
)
(975
)
(432
)
Other comprehensive income tax benefit
(3
)
(1,186
)
690

Expirations
(91
)
—

—

Release of valuation allowance
(28
)
(8,310
)
—

Other
—

(315
)
—

Valuation allowance at end of period
$
46

$
177

$
10,963



At December 31, 2014, 2013 and 2012, we recorded $10 million, $13 million and $3.1 billion, respectively, of deferred income tax expense in AOCI on our Consolidated Balance Sheets.

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 2013, we released our tax valuation allowance, as discussed above, and settled all of our fuel derivatives designated as accounting hedges. As a result, an income tax benefit of $1.9 billion related to our valuation allowance release and an income tax expense of $321 million related to settlement of our fuel derivative was recognized in our Consolidated Statement of Operations. Income tax expense of $1.9 billion remains in AOCI, primarily related to pension obligations. This tax expense will not be recognized in net income until the pension obligations are fully extinguished, which is not expected to occur for at least 25 years .

Uncertain Tax Positions

The amount of and changes to our uncertain tax positions were not material in any of the years presented. The amount of unrecognized tax benefits at the end of 2014, 2013, and 2012 was $40 million, $37 million and $44 million, respectively. We accrue interest and penalties related to unrecognized tax benefits in interest expense and operating expense, respectively. Interest and penalties are not material in any period presented.

We are currently under audit by the IRS for the 2014 and 2013 tax years.
Equity and Equity Compensation
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 $15.82 and $14.31 as of December 31, 2014 and 2013, respectively.

Equity-Based 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 "2007 Plan"). Shares of common stock issued under the 2007 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 is canceled, forfeited or otherwise terminates without delivery of shares (including shares surrendered or withheld for payment of the exercise price of an award or taxes related to an award), such shares will again be available for issuance under the 2007 Plan. The 2007 Plan authorizes the issuance of up to 157 million shares of common stock. As of December 31, 2014, there were 27 million shares available for future grants.

We make long term incentive awards annually to eligible employees under the 2007 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 $81 million, $90 million and $54 million for the years ended December 31, 2014, 2013 and 2012, respectively. We record expense on a straight-line basis for awards with installment vesting. As of December 31, 2014, unrecognized costs related to unvested shares and stock options totaled $56 million. We expect substantially all unvested awards to vest.

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, 2014, there were five 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, 2014, there were seven million outstanding stock option awards with a weighted average exercise price of $12.88, and six million were exercisable.

Performance Shares. Performance shares are long-term incentive opportunities, which are payable in common stock or cash, and are generally contingent upon our achieving certain financial goals.

Other. There was no tax benefit recognized in equity in 2014, 2013 or 2012 related to equity-based compensation as our excess tax benefits have not reduced taxes payable. Therefore, we will not recognize an income tax benefit related to equity compensation until we exhaust our net operating losses. For more information regarding our income taxes, see Note 13.
Accumulated Other Comprehensive Loss
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
Derivative Contracts(3)
Investments
Total
Balance at January 1, 2012
$
(6,288
)
$
(474
)
(4
)
$
(6,766
)
Changes in value (net of tax effect of $0)
(2,168
)
196

(3
)
(1,975
)
Reclassification into earnings (net of tax effect of $0)(1)
149

15

—

164

Balance at December 31, 2012
(8,307
)
(263
)
(7
)
(8,577
)
Changes in value (net of tax effect of $0)
2,760

296

(19
)
3,037

Reclassification into earnings (net of tax effect of $321)(1)
224

186

—

410

Balance at December 31, 2013(2)
(5,323
)
219

(26
)
(5,130
)
Changes in value (net of tax effect of $1,276)
(2,267
)
83

10

(2,174
)
Reclassification into earnings (net of tax effect of $4)(1)
73

(80
)
—

(7
)
Balance at December 31, 2014(2)
$
(7,517
)
$
222

$
(16
)
$
(7,311
)
 
(1) 
Amounts reclassified from AOCI for pension and other benefits liabilities are recorded in salaries and related costs in the Consolidated Statements of Operations. Amounts reclassified from AOCI for derivative contracts designated as foreign currency cash flow hedges and interest rate cash flow hedges are recorded in passenger revenue and interest expense, net, respectively, in the Consolidated Statements of Operations. Amounts reclassified from AOCI for investments are recorded in interest income in the Consolidated Statements of Operations.
(2) 
Includes $1.9 billion of deferred income tax expense, primarily related to pension obligations, that will not be recognized in net income until the pension obligations are fully extinguished, which is not expected to occur for at least 25 years.
(3) 
Included $321 million of deferred income tax expense that remained in AOCI until December 2013 when all amounts in AOCI that related to derivative contracts designated as fuel cash flow hedges were recognized in the Consolidated Statement of Operations.
Geographic Information
Geographic Information
GEOGRAPHIC INFORMATION

Operating revenue for the airline segment is assigned to 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. For information regarding our segment information, see Note 2.

Our operating revenue by geographic region (as defined by the DOT) is summarized in the following table:
 
Year Ended December 31,
(in millions)
2014
2013
2012
Domestic
$
26,898

$
24,857

$
23,989

Atlantic
6,757

6,446

6,329

Pacific
3,948

4,086

4,198

Latin America
2,759

2,384

2,154

Total
$
40,362

$
37,773

$
36,670



Our tangible assets consist primarily of flight equipment, which is mobile across geographic markets. Accordingly, assets are not allocated to specific geographic regions.
Restructuring and Other Items
Restructuring and Other Items
RESTRUCTURING AND OTHER ITEMS

The following table shows amounts recorded in restructuring and other items on our Consolidated Statements of Operations:
 
Year Ended December 31,
(in millions)
2014
2013
2012
Fleet, facilities and other
$
758

$
402

$
293

Severance and related costs
71

—

237

Routes and slots
—

—

(78
)
Settlements
(113
)
—

—

Total restructuring and other items
$
716

$
402

$
452



Fleet, Facilities and Other. During the September 2014 quarter, we decided to retire our fleet of 16 B-747-400 aircraft over the next three years. Additionally, we continue to restructure our domestic fleet by replacing a significant portion of our 50-seat regional flying with more efficient and customer preferred CRJ-900 and B-717-200 aircraft and replacing older, less cost effective B-757-200 aircraft with B-737-900ER aircraft. Accordingly, we recorded restructuring charges of $758 million, $402 million and $293 million during 2014, 2013 and 2012, respectively. These restructuring charges include impairments, remaining lease payments and lease return costs for permanently grounded aircraft, the acceleration of aircraft depreciation and related equipment disposals.

As part of the accelerated retirement of our B-747-400 fleet, we recorded an impairment charge for the owned and capital leased aircraft. This impairment charge was calculated using Level 3 fair value inputs based primarily upon recent market transactions and existing market conditions. Also, we recorded a lease restructuring charge for the three B-747-400 aircraft under operating leases that were retired during the September 2014 quarter.

As we restructure our fleet and assess our fleet plans, we will continue to evaluate older, retiring aircraft and related equipment for changes in depreciable life, impairment and lease termination costs. The retirement of aircraft, when permanently removed from our fleet, will likely result in lease termination and other charges. The timing and amount of these charges will depend on a number of factors, including final negotiations with lessors, the timing of removing aircraft from service and ultimate disposition of aircraft included in the fleet restructuring program. We expect to benefit from reduced future maintenance cost and improved operational and fuel efficiency over the life of the new aircraft.

As an extension of our fleet restructuring initiative and our desire to reduce the number of regional jets in our network, we shut down the operations of Comair, a wholly-owned regional airline subsidiary, as of September 29, 2012. The restructuring charges in 2012 also include amounts associated with the closure of Comair.

Severance and Related Costs. In June 2014, we announced a voluntary retirement program for eligible U.S. employees. We recorded a $71 million charge in connection with this program and other programs related to our Pacific strategy.

During 2012, we recognized a severance charge of $237 million, which included $116 million of special termination benefits (see Note 11). We offered voluntary severance programs in which more than 2,000 employees elected to participate. These participants became eligible for retiree healthcare benefits. Also, we accrued $66 million in severance and related costs in 2012 to provide severance benefits to Comair's 1,700 employees, as we ceased operations at the carrier.

Gain on Slot Exchange. During December 2011, we closed transactions with US Airways where we received takeoff and landing rights (each a "slot pair") at LaGuardia in exchange for slot pairs at Reagan National. In approving these transactions, the DOT restricted our use of the exchanged slots. We recorded a $78 million deferred gain in December 2011, which we recognized in 2012 as the restrictions lapsed.

Settlements. During the year ended December 31, 2014, we settled outstanding litigation resulting in a favorable settlement of $67 million and received an unrelated insurance settlement of $46 million.

The following table shows the balances and activity for restructuring charges:
 
Severance and Related Costs
 
Lease Restructuring
(in millions)
2014
2013
2012
 
2014
2013
2012
Liability at beginning of period
$
—

$
49

$
46

 
$
168

$
77

$
64

Additional costs and expenses
71

—

126

 
349

114

45

Payments
(29
)
(46
)
(123
)
 
(55
)
(18
)
(32
)
Other
—

(3
)
—

 
—

(5
)
—

Liability at end of period
$
42

$
—

$
49

 
$
462

$
168

$
77

Earnings Per Share
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. 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)
2014
2013
2012
Net income
$
659

$
10,540

$
1,009

 
 
 
 
Basic weighted average shares outstanding
836

849

845

Dilutive effect of share-based awards
9

9

5

Diluted weighted average shares outstanding
845

858

850

 
 
 
 
Basic earnings per share
$
0.79

$
12.41

$
1.20

Diluted earnings per share
$
0.78

$
12.29

$
1.19

Quarterly Financial Data (Unaudited)
Quarterly Financial Information (Unaudited)
QUARTERLY FINANCIAL DATA (UNAUDITED)

The following table summarizes our unaudited results of operations on a quarterly basis. The quarterly earnings (loss) 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
2014
 
 
 
 
Operating revenue
$
8,916

$
10,621

$
11,178

$
9,647

Operating income (loss)
620

1,579

835

(828
)
Net income (loss)
213

801

357

(712
)
Basic earnings (loss) per share
$
0.25

$
0.95

$
0.43

$
(0.86
)
Diluted earnings (loss) per share
$
0.25

$
0.94

$
0.42

$
(0.86
)
2013
 
 
 
 
Operating revenue
$
8,500

$
9,707

$
10,490

$
9,076

Operating income
222

914

1,563

701

Net income
7

685

1,369

8,479

Basic earnings per share
$
0.01

$
0.81

$
1.61

$
10.02

Diluted earnings per share
$
0.01

$
0.80

$
1.59

$
9.89



The following special items are included in the results above:
 
Three Months Ended,
(in millions)
March 31
June 30
September 30
December 31
2014
 
 
 
 
MTM adjustments
$
(34
)
$
1

$
(347
)
$
(1,966
)
Restructuring and other
(49
)
(30
)
(570
)
(67
)
Loss on extinguishment of debt
(18
)
(111
)
(134
)
(5
)
Virgin Atlantic MTM adjustments
(8
)
—

(7
)
(119
)
Total loss
$
(109
)
$
(140
)
$
(1,058
)
$
(2,157
)
 
 
 
 
 
2013


 




Restructuring and other
$
(102
)
$
(34
)
$
(128
)
$
(160
)
MTM adjustments
24

(125
)
285

92

Release of tax valuation allowance
—

—

—

7,989

Total (loss) income
$
(78
)
$
(159
)
$
157

$
7,921

Summary of Significant Accounting Policies (Policies)
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.
Use of estimates 
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 
Recent Accounting Standards

Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers." While the standard supersedes existing revenue recognition guidance, it closely aligns with current GAAP. Under the new standard, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service. It is effective for annual reporting periods beginning after December 15, 2016, including interim reporting periods, and early adoption is not permitted. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. We are currently evaluating the impact, if any, the adoption of this standard will have on our Consolidated Financial Statements.

Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income

In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income." The standard revises the reporting of items reclassified out of accumulated other comprehensive income and is effective for fiscal years beginning after December 15, 2012. We adopted this guidance in the March 2013 quarter and have presented amounts reclassified out of accumulated other comprehensive income in a note to the financial statements. For additional information, see Note 15.

Presentation of Comprehensive Income

In June 2011, the FASB issued ASU 2011-05, "Presentation of Comprehensive Income." The standard revises the presentation and prominence of the items reported in other comprehensive income and is effective retrospectively for fiscal years beginning after December 15, 2011. We adopted this standard in 2012 and have presented comprehensive income in our Consolidated Statements of Comprehensive (Loss) Income.
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 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. Refined product, feedstock and blendstock inventories, all of which are finished goods, are carried at recoverable cost. We use jet fuel 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 in our airline operations. 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) as incurred and an applicable portion of manufacturing overhead.
Accounting for refinery related buy/sell agreements 
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 
Derivatives

Changes in aircraft fuel prices, interest rates and foreign currency exchange rates impact our results of operations. In an effort to manage our exposure to these risks, we enter into derivative contracts and adjust our derivative portfolio as market conditions change. 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 record 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 based on market prices at the end of the reporting period for contracts settling in future periods.

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 other 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
Increases in jet 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 other 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 other 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.

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 contracting party 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 cash and cash equivalents or prepaid expenses and other, with the offsetting obligation in accounts payable. The hedge margin we provide to counterparties is recorded in hedge margin receivable. All cash flows associated with purchasing and settling hedge contracts are classified as operating cash flows.

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 frequent flyer program (the “SkyMiles Program”) offers incentives to travel on Delta. This program allows customers to earn mileage credits by flying on Delta, regional air carriers with which we have contract carrier agreements 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 two deliverables: (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 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 access to Delta SkyClub 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.

In December 2014, we amended our marketing agreements with American Express which increased the value we will receive under the agreements and extended the term to 2022. The amended agreements became effective January 1, 2015. The deliverables under the amended agreements are substantially similar to the previous agreement. We will account for the amended agreements consistent with the accounting method adopted in September 2013 that allocates the consideration received to the individual products and services delivered based on their relative selling prices. The increased value received under the amended agreements will increase the amount of deferred revenue for the travel component and increase the value of the other deliverables, which are recognized in other revenue as they are provided.

In September 2013, we modified our marketing agreements with American Express that required us to change the accounting method for recording SkyMiles sold. Under the previous method, the embedded premium or discount was allocated to the residual products or services in a combined transaction. The new method allocates consideration received based on the relative selling price of each product or service. 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, access to Delta Sky Club lounges and other benefits while traveling on Delta and (4) brand value. The impact of adopting the relative selling price method re-allocated a portion of the embedded discount to the travel component, lowering the deferral rate we use to record miles sold under the agreements and increasing revenue recognized on the remaining deliverables.

We recognize revenue as we deliver each sales element. We defer the travel deliverable (miles) 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

We have contract carrier agreements with third-party regional carriers ("Contract Carriers"), in addition to our wholly-owned subsidiary, Endeavor. In May 2013, Endeavor emerged from bankruptcy and we became its sole owner pursuant to a confirmed plan of reorganization. Our wholly-owned subsidiary, Comair, Inc. ("Comair") ceased operations in September 2012 (see Note 17).

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 all of our Contract Carrier agreements as regional carriers passenger revenue. We record expenses related to our Contract Carrier agreements, as regional carrier expense.

Cargo Revenue

Cargo revenue is recognized when we provide the transportation.

Other Revenue

Other revenue is primarily comprised of (1) the non-travel components of the sale of mileage credits discussed above, (2) baggage fee revenue, (3) other miscellaneous service revenue, including ticket change fees, (4) revenue from ancillary businesses, such as the aircraft maintenance and repair and staffing services we provide to third parties and (5) the sale of certain non-jet fuel products by our refinery to third parties.
Passenger tickets 
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.

Frequent flyer program 
Frequent Flyer Program

Our frequent flyer program (the “SkyMiles Program”) offers incentives to travel on Delta. This program allows customers to earn mileage credits by flying on Delta, regional air carriers with which we have contract carrier agreements 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 two deliverables: (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 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 access to Delta SkyClub 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.

In December 2014, we amended our marketing agreements with American Express which increased the value we will receive under the agreements and extended the term to 2022. The amended agreements became effective January 1, 2015. The deliverables under the amended agreements are substantially similar to the previous agreement. We will account for the amended agreements consistent with the accounting method adopted in September 2013 that allocates the consideration received to the individual products and services delivered based on their relative selling prices. The increased value received under the amended agreements will increase the amount of deferred revenue for the travel component and increase the value of the other deliverables, which are recognized in other revenue as they are provided.

In September 2013, we modified our marketing agreements with American Express that required us to change the accounting method for recording SkyMiles sold. Under the previous method, the embedded premium or discount was allocated to the residual products or services in a combined transaction. The new method allocates consideration received based on the relative selling price of each product or service. 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, access to Delta Sky Club lounges and other benefits while traveling on Delta and (4) brand value. The impact of adopting the relative selling price method re-allocated a portion of the embedded discount to the travel component, lowering the deferral rate we use to record miles sold under the agreements and increasing revenue recognized on the remaining deliverables.

We recognize revenue as we deliver each sales element. We defer the travel deliverable (miles) 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.
Deferred revenue 
Passenger Ticket Sales Earning Mileage Credits. Passenger ticket sales earning mileage credits under our SkyMiles Program provide customers with two deliverables: (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 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 access to Delta SkyClub 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.

In December 2014, we amended our marketing agreements with American Express which increased the value we will receive under the agreements and extended the term to 2022. The amended agreements became effective January 1, 2015. The deliverables under the amended agreements are substantially similar to the previous agreement. We will account for the amended agreements consistent with the accounting method adopted in September 2013 that allocates the consideration received to the individual products and services delivered based on their relative selling prices. The increased value received under the amended agreements will increase the amount of deferred revenue for the travel component and increase the value of the other deliverables, which are recognized in other revenue as they are provided.

In September 2013, we modified our marketing agreements with American Express that required us to change the accounting method for recording SkyMiles sold. Under the previous method, the embedded premium or discount was allocated to the residual products or services in a combined transaction. The new method allocates consideration received based on the relative selling price of each product or service. 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, access to Delta Sky Club lounges and other benefits while traveling on Delta and (4) brand value. The impact of adopting the relative selling price method re-allocated a portion of the embedded discount to the travel component, lowering the deferral rate we use to record miles sold under the agreements and increasing revenue recognized on the remaining deliverables.

We recognize revenue as we deliver each sales element. We defer the travel deliverable (miles) 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 
Regional Carriers Revenue

We have contract carrier agreements with third-party regional carriers ("Contract Carriers"), in addition to our wholly-owned subsidiary, Endeavor. In May 2013, Endeavor emerged from bankruptcy and we became its sole owner pursuant to a confirmed plan of reorganization. Our wholly-owned subsidiary, Comair, Inc. ("Comair") ceased operations in September 2012 (see Note 17).

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 all of our Contract Carrier agreements as regional carriers passenger revenue. We record expenses related to our Contract Carrier agreements, as regional carrier expense.

Cargo revenue 
Cargo Revenue

Cargo revenue is recognized when we provide the transportation.
Long-lived assets 
Long-Lived Assets

The following table summarizes our property and equipment:
 
 
December 31,
(in millions, except for estimated useful life)
Estimated Useful Life
2014
2013
Flight equipment
21-30 years
$
24,313

$
23,373

Ground property and equipment
3-40 years
5,198

4,596

Flight and ground equipment under capital leases
Shorter of lease term or estimated useful life
1,141

1,296

Advance payments for equipment
 
617

381

Less: accumulated depreciation and amortization(1)
 
(9,340
)
(7,792
)
Total property and equipment, net
 
$
21,929

$
21,854



(1) Includes accumulated amortization for flight and ground equipment under capital leases in the amount of $767 million and $657 million at December 31, 2014 and 2013, 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 $1.7 billion, $1.6 billion and $1.5 billion for each of the years ended December 31, 2014, 2013 and 2012, 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 seven years. Included in the depreciation and amortization expense discussed above, we recorded $129 million, $110 million and $76 million for amortization of capitalized software for the years ended December 31, 2014, 2013 and 2012, respectively. The net book value of these assets totaled $411 million and $383 million at December 31, 2014 and 2013, respectively.

We record impairment losses on flight equipment and other long-lived assets used in operations when events and circumstances indicate the assets may be impaired and the estimated future cash flows generated by those assets are less than their carrying amounts. Factors which could cause 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.
Impairment of long-lived assets 
We record impairment losses on flight equipment and other long-lived assets used in operations when events and circumstances indicate the assets may be impaired and the estimated future cash flows generated by those assets are less than their carrying amounts. Factors which could cause 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. If the asset's carrying value exceeds its fair value calculated using the quantitative approach, we will record an impairment charge for the difference in fair value and carrying value.

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. 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. In evaluating goodwill for impairment, we estimate the fair value of our reporting unit by considering market capitalization and other factors if it is more likely than not that the fair value of our reporting unit is less than its carrying value. 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. Definite-lived intangible assets consist primarily of marketing 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) a combination of limited market transactions and the lease savings method for certain airport slots (which reflects potential lease savings from owning the slots rather than leasing them from another airline at market rates), (3) the royalty method for the Delta tradename (which assumes hypothetical royalties generated from using our tradename) or (4) projected discounted future cash flows (an income approach). We recognize an impairment charge if the asset's carrying value exceeds its estimated fair value.
Goodwill 
Goodwill. In evaluating goodwill for impairment, we estimate the fair value of our reporting unit by considering market capitalization and other factors if it is more likely than not that the fair value of our reporting unit is less than its carrying value. 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.

Intangible assets 
Identifiable Intangible Assets. Indefinite-lived assets are not amortized and consist of routes, slots, the Delta tradename and assets related to SkyTeam. Definite-lived intangible assets consist primarily of marketing 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.
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 current and noncurrent deferred income taxes. A valuation allowance is recorded to reduce deferred tax assets when necessary. For additional information about our income taxes, see Note 13.
Manufacturers' credits 
Manufacturers' Credits

We periodically receive credits in connection with the acquisition of aircraft and engines. These credits are deferred until the aircraft and engines are delivered, and then applied as a reduction to the cost of the related equipment.
Maintenance costs 
Maintenance Costs

We record maintenance costs to aircraft maintenance materials and outside repairs. Maintenance costs are expensed as incurred, except for costs incurred under power-by-the-hour contracts, which are expensed based on actual hours flown. Power-by-the-hour contracts transfer certain risk to third-party service providers and fix the amount we pay per flight hour to the service provider in exchange for maintenance and repairs under a predefined maintenance program. Modifications that enhance the operating performance or extend the useful lives of airframes or engines are capitalized and amortized over the remaining estimated useful life of the asset or the remaining lease term, whichever is shorter.
Advertising costs 
Advertising Costs

We expense advertising costs as other selling expenses in the year incurred. Advertising expense was approximately $200 million for the years ended December 31, 2014, 2013 and 2012, respectively.
Commissions 
Commissions

Passenger sales commissions are recognized in operating expense when the related revenue is recognized.
Summary of Significant Accounting Policies (Tables)
Schedule of derivative contracts, classification of related gains (losses) on consolidate 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
Increases in jet 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 other 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 other 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
2014
2013
Flight equipment
21-30 years
$
24,313

$
23,373

Ground property and equipment
3-40 years
5,198

4,596

Flight and ground equipment under capital leases
Shorter of lease term or estimated useful life
1,141

1,296

Advance payments for equipment
 
617

381

Less: accumulated depreciation and amortization(1)
 
(9,340
)
(7,792
)
Total property and equipment, net
 
$
21,929

$
21,854



(1) Includes accumulated amortization for flight and ground equipment under capital leases in the amount of $767 million and $657 million at December 31, 2014 and 2013, respectively.
Segments (Tables)
Reconciliation of Segments to Consolidated Amounts
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, 2014
 
 
 
 
 
 
Operating revenue:
$
40,217

$
6,959

 
 
 
$
40,362

Sales to airline segment
 
 
 
$
(1,313
)
(1) 
 
Exchanged products
 
 
 
(5,104
)
(2) 
 
Sales of refined products to third parties
 
 
 
(397
)
(3) 
 
Operating income(4)
2,110

96

 
 
 
2,206

Interest expense, net
650

—

 
 
 
650

Depreciation and amortization
1,745

26

 
 
 
1,771

Total assets, end of period
53,012

1,109

 
 
 
54,121

Capital expenditures
2,184

65

 
 
 
2,249

Year Ended December 31, 2013
 
 
 
 
 
 
Operating revenue:
$
37,773

$
7,003

 
 
 
$
37,773

Sales to airline segment
 
 
 
$
(1,156
)
(1) 
 
Exchanged products
 
 
 
(5,352
)
(2) 
 
Sales of refined products to third parties
 
 
 
(495
)
(3) 
 
Operating income (loss)(4)
3,516

(116
)
 
 
 
3,400

Interest expense, net
852

—

 
 
 
852

Depreciation and amortization
1,641

17

 
 
 
1,658

Total assets, end of period
51,080

1,172

 
 
 
52,252

Capital expenditures
2,516

52

 
 
 
2,568

Year Ended December 31, 2012
 
 
 
 
 
 
Operating revenue:
$
36,670

$
1,347

 
 
 
$
36,670

Sales to airline segment
 
 
 
$
(213
)
(1) 
 
Exchanged products
 
 
 
(1,121
)
(2) 
 
Sales of refined products to third parties
 
 
 
(13
)
(3) 
 
Operating income (loss)(4)
2,238

(63
)
 
 
 
2,175

Interest expense, net
1,005

—

 
 
 
1,005

Depreciation and amortization
1,561

4

 
 
 
1,565

Total assets, end of period
43,386

1,164

 
 
 
44,550

Capital expenditures
1,637

331

 
 
 
1,968


(1) 
Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price by reference to the market index for the primary delivery location, which is New York Harbor, for jet fuel from the refinery.
(2) 
Represents value of products delivered under our strategic agreements, as discussed above, determined on a market price basis.
(3) 
Represents sales of refined products to third parties. These sales were at or near cost; accordingly, the margin on these sales is de minimis.
(4) 
Includes the impact of pricing arrangements between the airline segment and refinery segment with respect to the refinery's inventory price risk.
Fair Value Measurements (Tables)
Schedule of Assets (Liabilities) Measured at Fair Value on a Recurring Basis
Assets (Liabilities) Measured at Fair Value on a Recurring Basis(1) 
(in millions)
December 31, 2014
Level 1
Level 2
Valuation
Technique
Cash equivalents
$
1,612

$
1,612

$
—

(a)
Short-term investments
 
 


U.S. government and agency securities
59

—

59

(a)
Asset- and mortgage-backed securities
392

—

392

(a)
Corporate obligations
749

—

749

(a)
Other fixed income securities
17

—

17

(a)
Restricted cash equivalents and investments
37

37

—

(a)
Long-term investments
118

90

28

(a)(b)
Hedge derivatives, net
 
 
 
 
Fuel hedge contracts
(1,848
)
(167
)
(1,681
)
(a)(b)
Interest rate contracts
(7
)
—

(7
)
(a)(b)
Foreign currency exchange contracts
73

—

73

(a)
(in millions)
December 31, 2013
Level 1
Level 2
Valuation
Technique
Cash equivalents
$
2,487

$
2,487

$
—

(a)
Short-term investments


 



U.S. government securities
959

959

—

(a)
Restricted cash equivalents and investments
118

118

—

(a)
Long-term investments
109

80

29

(a)(b)
Hedge derivatives, net
 
 
 
 
Fuel hedge contracts
314

16

298

(a)(b)
Interest rate contracts
(67
)
—

(67
)
(a)(b)
Foreign currency exchange contracts
257

—

257

(a)

(1) 
See Note 11, “Employee Benefit Plans,” for fair value of benefit plan assets.

Investments - Short Term Investments (Tables)
Investments Classified by Contractual Maturity Date
The estimated fair values of short-term investments, which approximate cost at December 31, 2014, are shown below by contractual maturity. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to retire our investments without prepayment penalties.
(in millions)
Available-
For-Sale
December 31, 2014
 
Due in one year or less
$
175

Due after one year through three years
791

Due after three years through five years
163

Due after five years
88

Total
$
1,217

Derivatives and Risk Management (Tables)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value 

Hedge Position as of December 31, 2014
(in millions)
Notional Balance
Final Maturity Date
Hedge Derivatives Asset
Other Noncurrent Assets
Hedge Derivatives Liability
Other Noncurrent Liabilities
Hedge Derivatives, net
Designated as hedges
 
 
 
 
 
 
 
 
Interest rate contracts (fair value hedges)
$
416

U.S. dollars
August 2022
5

—

—

(12
)
(7
)
Foreign currency exchange contracts
77,576

Japanese yen
October 2017
25

49

(1
)
—

73

511

Canadian dollars
Not designated as hedges
 
 
 
 
 
 
 
 
Fuel hedge contracts
8,604

gallons - crude oil, diesel and jet fuel
December 2016
1,048

3

(2,771
)
(128
)
(1,848
)
Total derivative contracts
 
 
$
1,078

$
52

$
(2,772
)
$
(140
)
$
(1,782
)

Hedge Position as of December 31, 2013
(in millions)
Notional Balance
Final Maturity Date
Hedge Derivatives Asset
Other Noncurrent Assets
Hedge Derivatives Liability
Other Noncurrent Liabilities
Hedge Derivatives, net
Designated as hedges
 
 
 
 
 
 
 
 
Interest rate contracts (cash flow hedges)
$
477

U.S. dollars
May 2019
$
—

$
—

$
(17
)
$
(26
)
$
(43
)
Interest rate contract (fair value hedge)
$
445

U.S. dollars
August 2022
—

—

(2
)
(22
)
(24
)
Foreign currency exchange contracts
120,915

Japanese yen
August 2016
157

100

—

—

257

438

Canadian dollars
 
 
 
 
Not designated as hedges
 
 
 
 
 
 
 
 
Fuel hedge contracts
5,318

gallons - crude oil, diesel and jet fuel
March 2015
428

29

(127
)
(16
)
314

Total derivative contracts
 
 
$
585

$
129

$
(146
)
$
(64
)
$
504



Offsetting Assets and Liabilities

We have master netting arrangements with all of our counterparties giving us the right of setoff. We have elected not to offset the fair value positions recorded on our Consolidated Balance Sheets. The following table shows the potential net fair value positions had we elected to offset.
(in millions)
Hedge Derivatives Asset
Other Noncurrent Assets
Hedge Derivatives Liability
Other Noncurrent Liabilities
Hedge Derivatives, Net
December 31, 2014
 
 
 
 
 
Net derivative contracts
$
29

$
49

$
(1,723
)
$
(137
)
$
(1,782
)
December 31, 2013
 
 
 
 
 
Net derivative contracts
$
456

$
116

$
(19
)
$
(49
)
$
504


Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance 
Gains (losses) related to our designated hedge contracts are as follows:
 
Effective Portion Reclassified from AOCI to Earnings
 
Effective Portion Recognized in Other Comprehensive Income (Loss)
 
Year Ended December 31,
(in millions)
2014
2013
2012
 
2014
2013
2012
Fuel hedge contracts
$
—

$
—

$
15

 
$
—

$
—

$
(15
)
Interest rate contracts
(31
)
—

(5
)
 
38

28

14

Foreign currency exchange contracts
158

135

(25
)
 
(34
)
133

212

Total designated
$
127

$
135

$
(15
)
 
$
4

$
161

$
211

Intangible Assets (Tables)
Indefinite-Lived Intangible Assets 
 
Carrying Amount at December 31,
(in millions)
2014
2013
International routes and slots
$
2,287

$
2,287

Delta tradename
850

850

SkyTeam related assets
661

661

Domestic slots
622

622

Total
$
4,420

$
4,420

Definite-Lived Intangible Assets 
 
December 31, 2014
 
December 31, 2013
(in millions)
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Marketing agreements
$
730

$
(648
)
 
$
730

$
(602
)
Contracts
193

(92
)
 
193

(83
)
Other
53

(53
)
 
53

(53
)
Total
$
976

$
(793
)
 
$
976

$
(738
)
Schedule of Estimated Future Aggregate Amortization Expense 
The following table summarizes the estimated aggregate amortization expense for each of the five succeeding fiscal years:
Years Ending December 31,
(in millions)
 
2015
$
18

2016
18

2017
17

2018
17

2019
16

Long-Term Debt (Tables)
Schedule of long-term debt instruments 
The following table summarizes our long-term debt:
 
Maturity
Interest Rate(s) Per Annum at
December 31,
(in millions)
Dates
December 31, 2014
2014
2013
Pacific Facilities(1)(2):
 
 
 
 
 
 
 
 
Pacific Term Loan B-1(3)
October 2018
3.25%
variable(6)
$
1,078

$
1,089

Pacific Term Loan B-2(3)
April 2016
2.41%
variable(6)
392

396

Pacific Revolving Facility
October 2017
undrawn
variable(6)
—

—

2011 Credit Facilities(1)(4):
 
 
 

 

 
 
Term Loan Facility(3)
April 2017
3.25%
variable(6)
1,327

1,341

Revolving Credit Facility
April 2016
undrawn
variable(6)
—

—

Other secured financing arrangements:
 
 

 
 
 
 
 
Certificates(5)(7)
2015
to
2023
4.75%
to
9.75%
3,226

3,834

Aircraft financings(5)(7)
2015
to
2026
0.62%
to
6.76%
2,988

3,787

Other financings(5)(8)
2015
to
2031
0.00%
to
5.25%
305

627

Other revolving credit facilities(1)
2015
to
2017
undrawn
variable(6)
—

—

Total secured debt
 
 
 
 
 
 
9,316

11,074

Other unsecured debt(5)
2015
to
2035
3.01%
to
9.00%
153

154

Total secured and unsecured debt
 
 
 
 
 
 
9,469

11,228

Unamortized discount, net
 
 
 
 
 
 
(90
)
(383
)
Total debt
 
 
 
 
 
 
9,379

10,845

Less: current maturities
 
 
 
 
 
 
(1,109
)
(1,449
)
Total long-term debt
 
 
 
 
 
 
$
8,270

$
9,396

 
(1) 
Guaranteed by substantially all of our domestic subsidiaries (the "Guarantors").
(2) 
Secured by a first lien on our Pacific route authorities and certain related assets.
(3) 
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.
(4) 
Secured by liens on certain of our and the Guarantors' assets, including accounts receivable, flight equipment, ground property and equipment, certain aircraft, spare engines and parts, certain non-Pacific international routes, domestic slots, real estate and certain investments. These assets also secure $250 million of certain fuel hedging obligations pari passu (i.e., on equal priority) with the term loan and revolver.
(5) 
Due in installments.
(6) 
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.
(7) 
Secured by aircraft.
(8) 
Primarily includes loans secured by spare parts, spare engines and real estate.
Our credit 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. We were in compliance with the covenants in our financing agreements at December 31, 2014.
 
Pacific Facilities
2011 Credit Facilities
Minimum fixed charge coverage ratio (1)
1.20:1
1.20:1
Minimum unrestricted liquidity
 
 
Unrestricted cash and permitted investments
n/a
$1.0 billion
Unrestricted cash, permitted investments and undrawn revolving credit facilities
$2.0 billion
$2.0 billion
Minimum collateral coverage ratio (2)
1.60:1
1.67:1 (3)


(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 meets specified eligibility standards to (b) the sum of the aggregate outstanding obligations and certain other obligations.
(3) 
Excluding the non-Pacific international routes from the collateral for purposes of the calculation, the required minimum collateral coverage ratio is 0.75:1.
Schedule of line of credit facilities 
The table below shows availability under revolving credit facilities, all of which were undrawn, as of December 31, 2014:
(in millions)
 
Revolving Credit Facility
$
1,225

Pacific Revolving Credit Facility
450

Other revolving credit facilities
228

Total availability under revolving credit facilities
$
1,903

Summary of scheduled maturities of debt 
The following table summarizes scheduled maturities of our debt at December 31, 2014:
Years Ending December 31,
(in millions)
Total Secured and Unsecured Debt
Amortization of Debt Discount, net
 
2015
$
1,111

$
(19
)
 
2016
1,326

(21
)
 
2017
2,137

(19
)
 
2018
2,028

(15
)
 
2019
1,158

(12
)
 
Thereafter
1,709

(4
)
 
Total
$
9,469

$
(90
)
$
9,379

Schedule of carrying amounts and fair values of debt 
In the table below, the aggregate fair value of debt is based primarily on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral and is classified primarily as Level 2 within the fair value hierarchy.
 
December 31,
(in millions)
2014
2013
Total debt at par value
$
9,469

$
11,228

Unamortized discount, net
(90
)
(383
)
Net carrying amount
$
9,379

$
10,845

Fair value
$
9,800

$
11,600

Lease Obligations (Tables)
Schedule of future minimum lease payments for capital leases 
Capital Leases
Years Ending December 31,
(in millions)
Total
2015
$
157

2016
139

2017
97

2018
51

2019
33

Thereafter
42

Total minimum lease payments
519

Less: amount of lease payments representing interest
(121
)
Present value of future minimum capital lease payments
398

Less: current obligations under capital leases
(107
)
Long-term capital lease obligations
$
291

Schedule of future minimum rental payments for operating leases 
Operating Leases
Years Ending December 31,
(in millions)
Delta Lease Payments(1)
Contract Carrier Aircraft Lease Payments(2)
Total
2015
$
1,363

$
344

$
1,707

2016
1,187

306

1,493

2017
1,056

267

1,323

2018
881

239

1,120

2019
747

182

929

Thereafter
5,873

296

6,169

Total minimum lease payments
$
11,107

$
1,634

$
12,741

Employee Benefit Plans (Tables)
Schedule of defined benefit plans disclosures 
Benefit Obligations, Fair Value of Plan Assets and Funded Status
 
Pension Benefits
 
Other Postretirement and Postemployment Benefits
 
December 31,
 
December 31,
(in millions)
2014
2013
 
2014
2013
Benefit obligation at beginning of period
$
19,060

$
21,489

 
$
3,205

$
3,582

Service cost
—

—

 
52

49

Interest cost
928

861

 
155

143

Actuarial loss (gain)
2,923

(2,212
)
 
338

(301
)
Benefits paid, including lump sums and annuities
(1,055
)
(1,078
)
 
(307
)
(313
)
Participant contributions
—

—

 
44

45

Benefit obligation at end of period(1)
$
21,856

$
19,060

 
$
3,487

$
3,205

 
 
 
 
 
 
Fair value of plan assets at beginning of period
$
8,937

$
8,196

 
$
1,043

$
1,004

Actual gain on plan assets
556

905

 
57

129

Employer contributions
917

914

 
160

191

Participant contributions
—

—

 
44

45

Benefits paid, including lump sums and annuities
(1,055
)
(1,078
)
 
(322
)
(326
)
Fair value of plan assets at end of period
$
9,355

$
8,937


$
982

$
1,043

 
 
 
 
 
 
Funded status at end of period
$
(12,501
)
$
(10,123
)
 
$
(2,505
)
$
(2,162
)

(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 in balance sheet 
Balance Sheet Position
 
Pension Benefits
 
Other Postretirement and Postemployment Benefits
 
December 31,
 
December 31,
(in millions)
2014
2013
 
2014
2013
Current liabilities
$
(28
)
$
(22
)
 
$
(139
)
$
(139
)
Noncurrent liabilities
(12,473
)
(10,101
)
 
(2,366
)
(2,023
)
Total liabilities
$
(12,501
)
$
(10,123
)
 
$
(2,505
)
$
(2,162
)
 
 
 
 
 
 
Net actuarial loss
$
(8,409
)
$
(5,349
)
 
$
(465
)
$
(103
)
Prior service credit
—

—

 
135

161

Total accumulated other comprehensive income (loss), pre-tax
$
(8,409
)
$
(5,349
)
 
$
(330
)
$
58

Schedule of net benefit costs 
Net Periodic Cost
 
Pension Benefits
 
Other Postretirement and
Postemployment Benefits
 
Year Ended December 31,
 
Year Ended December 31,
(in millions)
2014
2013
2012
 
2014
2013
2012
Service cost
$
—

$
—

$
—

 
$
52

$
49

$
56

Interest cost
928

861

930

 
155

143

164

Expected return on plan assets
(829
)
(734
)
(705
)
 
(84
)
(84
)
(77
)
Amortization of prior service credit
—

—

—

 
(26
)
(26
)
(21
)
Recognized net actuarial loss
134

221

143

 
4

25

23

Settlements
—

6

—

 
—

—

—

Special termination benefits
—

—

—

 
—

—

116

Net periodic cost
$
233

$
354

$
368

 
$
101

$
107

$
261

Defined contribution plan costs
551

490

426

 
—

—

—

Total cost
$
784

$
844

$
794

 
$
101

$
107

$
261

Schedule of assumptions used 
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)(2)
2014
2013
Weighted average discount rate
4.14
%
5.01
%
 
Year Ended December 31,
Net Periodic Cost(2)
2014
2013
2012
Weighted average discount rate - pension benefit
4.99
%
4.10
%
4.95
%
Weighted average discount rate - other postretirement benefit(3)
4.88
%
4.00
%
4.63
%
Weighted average discount rate - other postemployment benefit
5.00
%
4.13
%
4.88
%
Weighted average expected long-term rate of return on plan assets
8.94
%
8.94
%
8.94
%
Assumed healthcare cost trend rate(4)
7.00
%
7.00
%
7.00
%
 
(1) 
Our 2014 and 2013 benefit obligations are measured using a mortality table projected to 2022 and 2017, respectively.
(2) 
Future 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.
(3) 
Our assumptions reflect various remeasurements of certain portions of our obligations and represent the weighted average of the assumptions used for each measurement date.
(4) 
Assumed healthcare cost trend rate at December 31, 2014 is assumed to decline gradually to 5.00% by 2024 and remain level thereafter.


Schedule of effect of one-percentage-point change in assumed health care cost trend rates 
A 1% change in the healthcare cost trend rate used in measuring the accumulated plan benefit obligation for these plans, which provide benefits to eligible retirees and their dependents who are under age 65, at December 31, 2014, would have the following effects:
(in millions)
1% Increase
1% Decrease
Increase (decrease) in total service and interest cost
$
1

$
(2
)
Increase (decrease) in the accumulated plan benefit obligation
14

(28
)
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
2015
$
1,124

$
278

2016
1,133

272

2017
1,153

265

2018
1,173

256

2019
1,191

257

2020-2024
6,229

1,305

Fair value, assets measured on recurring basis 
 
December 31, 2014
 
December 31, 2013
 
 
(in millions)
Level 1
Level 2
Level 3
Total
 
Level 1
Level 2
Level 3
Total
 
Valuation Technique
Equities and equity-related instruments
$
699

$
1,486

$
—

$
2,185

 
$
1,774

$
2,391

$
—

$
4,165

 
(a)
Fixed income and fixed income-related instruments
 
 
 

 
 
 
 


 
 
Sovereign fixed income
—

—

—

—
 
—

45

—

45

 
(a)(b)
Credit-related fixed income
—

470

124

594

 
—

525

59

584

 
(a)(b)
Other fixed income
18

617

—

635

 
—

870

—

870

 
(a)(b)
Private equity
—

—

1,213

1,213

 
—

—

1,366

1,366

 
(a)(b)
Real assets
—

—

663

663

 
—

—

688

688

 
(a)(b)
Hedge funds
31

—

2,214

2,245

 
—

—

552

552

 
(a)(b)
Cash equivalents
4

2,428

—

2,432

 
28

1,582

—

1,610

 
(a)
Other
—

—

384

384

 
—

—

—

—

 
(a)(b)
Total benefit plan assets
$
752

$
5,001

$
4,598

$
10,351

 
$
1,802

$
5,413

$
2,665

$
9,880

 
 
Fair value, assets measured on recurring basis, unobservable input reconciliation 
The following table shows the changes in our benefit plan assets classified in Level 3:
(in millions)
Private Equity
Real Estate
Hedge Funds
Fixed Income
Other
Total
Balance at January 1, 2013
$
1,466

$
613

$
484

$
13

$
—

$
2,576

Actual return on plan assets:
 
 
 
 
 
 
Related to assets still held at the reporting date
98

61

49

2

—

210

Related to assets sold during the period
64

19

—

—

—

83

Purchases, sales and settlements, net
(262
)
(5
)
19

44

—

(204
)
Balance at December 31, 2013
1,366

688

552

59

—

2,665

Actual return on plan assets:
 
 
 
 
 
 
Related to assets still held at the reporting date
(116
)
(39
)
167

(17
)
(9
)
(14
)
Related to assets sold during the period
107

37

38

1

—

183

Purchases, sales and settlements, net
(144
)
(23
)
1,457

81

393

1,764

Balance at December 31, 2014
$
1,213

$
663

$
2,214

$
124

$
384

$
4,598

Commitments and Contingencies (Tables)
Aircraft purchase and lease commitments [Table Text Block] 
Years Ending December 31,
(in millions)
Total
2015
$
1,480

2016
1,970

2017
2,390

2018
2,230

2019
1,060

Thereafter
4,820

Total
$
13,950

Airline capacity purchase arrangements 
Accordingly, our actual payments under these agreements could differ materially from the minimum fixed obligations set forth in the table below.
Years Ending December 31,
(in millions)
Amount(1)
2015
$
2,220

2016
1,930

2017
1,720

2018
1,550

2019
1,430

Thereafter
2,370

Total
$
11,220


(1) 
These amounts exclude Contract Carrier payments accounted for as operating leases of aircraft, which are described in Note 9. The contingencies described below under “Contingencies Related to Termination of Contract Carrier Agreements” are also excluded from this table.
Employees Under Collective Bargaining Agreements 
Employee Group
Approximate Number of Active Employees Represented
Union
Date on which Collective Bargaining Agreement Becomes Amendable
Delta Pilots
11,530
ALPA
December 31, 2015
Delta Flight Superintendents (Dispatchers)
380
PAFCA
March 31, 2018
Endeavor Air Pilots
1,300
ALPA
January 1, 2020
Endeavor Air Flight Attendants
1,000
AFA
December 31, 2018
Endeavor Air Dispatchers
60
DISTWU
December 31, 2018
Income Taxes (Tables)
Income tax benefit (provision) 
Our income tax (provision) benefit consisted of the following:
 
Year Ended December 31,
(in millions)
2014
2013
2012
Current tax (provision) benefit:






Federal
$
21

$
24

$
—

State and local
(9
)
(3
)
15

International
(11
)
1

(14
)
Deferred tax (provision) benefit:






Federal
(424
)
7,197

(4
)
State and local
10

794

(13
)
Income tax (provision) benefit
$
(413
)
$
8,013

$
(16
)
Effective income tax rate reconcillation 
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,
 
2014
2013
2012
U.S. federal statutory income tax rate
35.0
 %
35.0
 %
35.0
 %
State taxes, net of federal benefit
2.00

3.0

3.3

Decrease in valuation allowance
(2.40
)
(367.5
)
(40.8
)
Income tax allocation
—

12.7

—

Other
3.90

(0.4
)
4.0

Effective income tax rate
38.50
 %
(317.2
)%
1.5
 %

Deferred taxes 
The following table shows significant components of our deferred tax assets and liabilities:
 
December 31,
(in millions)
2014
2013
Deferred tax assets:
 
 
Net operating loss carryforwards
$
4,782

$
6,024

Pension, postretirement and other benefits
6,033

4,982

Fuel derivatives MTM adjustments
777

—

AMT credit carryforward
357

378

Deferred revenue
1,824

1,965

Other
659

698

Valuation allowance
(46
)
(177
)
Total deferred tax assets
$
14,386

$
13,870

Deferred tax liabilities:
 
 
Depreciation
$
4,663

$
4,799

Intangible assets
1,684

1,704

Other
444

639

Total deferred tax liabilities
$
6,791

$
7,142

 
 
 
Net deferred tax assets
$
7,595

$
6,728


The following table shows our current and noncurrent deferred tax assets, net:
 
December 31,
(in millions)
2014
2013
Current deferred tax assets, net
$
3,275

$
1,736

Noncurrent deferred tax assets, net
4,320

4,992

Total deferred tax assets, net
$
7,595

$
6,728

Summary of valuation allowance and associated activity 
The following table shows the balance of our valuation allowance and the associated activity:
(in millions)
2014
2013
2012
Valuation allowance at beginning of period
$
177

$
10,963

$
10,705

Income tax provision
(9
)
(975
)
(432
)
Other comprehensive income tax benefit
(3
)
(1,186
)
690

Expirations
(91
)
—

—

Release of valuation allowance
(28
)
(8,310
)
—

Other
—

(315
)
—

Valuation allowance at end of period
$
46

$
177

$
10,963

Accumulated Other Comprehensive Loss (Tables)
Schedule of accumulated other comprehensive loss
The following table shows the components of accumulated other comprehensive loss:
(in millions)
Pension and Other Benefits Liabilities
Derivative Contracts(3)
Investments
Total
Balance at January 1, 2012
$
(6,288
)
$
(474
)
(4
)
$
(6,766
)
Changes in value (net of tax effect of $0)
(2,168
)
196

(3
)
(1,975
)
Reclassification into earnings (net of tax effect of $0)(1)
149

15

—

164

Balance at December 31, 2012
(8,307
)
(263
)
(7
)
(8,577
)
Changes in value (net of tax effect of $0)
2,760

296

(19
)
3,037

Reclassification into earnings (net of tax effect of $321)(1)
224

186

—

410

Balance at December 31, 2013(2)
(5,323
)
219

(26
)
(5,130
)
Changes in value (net of tax effect of $1,276)
(2,267
)
83

10

(2,174
)
Reclassification into earnings (net of tax effect of $4)(1)
73

(80
)
—

(7
)
Balance at December 31, 2014(2)
$
(7,517
)
$
222

$
(16
)
$
(7,311
)
 
(1) 
Amounts reclassified from AOCI for pension and other benefits liabilities are recorded in salaries and related costs in the Consolidated Statements of Operations. Amounts reclassified from AOCI for derivative contracts designated as foreign currency cash flow hedges and interest rate cash flow hedges are recorded in passenger revenue and interest expense, net, respectively, in the Consolidated Statements of Operations. Amounts reclassified from AOCI for investments are recorded in interest income in the Consolidated Statements of Operations.
(2) 
Includes $1.9 billion of deferred income tax expense, primarily related to pension obligations, that will not be recognized in net income until the pension obligations are fully extinguished, which is not expected to occur for at least 25 years.
(3) 
Included $321 million of deferred income tax expense that remained in AOCI until December 2013 when all amounts in AOCI that related to derivative contracts designated as fuel cash flow hedges were recognized in the Consolidated Statement of Operations.
Geographic Information (Tables)
Operating revenue by geographic region
 
Year Ended December 31,
(in millions)
2014
2013
2012
Domestic
$
26,898

$
24,857

$
23,989

Atlantic
6,757

6,446

6,329

Pacific
3,948

4,086

4,198

Latin America
2,759

2,384

2,154

Total
$
40,362

$
37,773

$
36,670

Restructuring and Other Items (Tables)
Schedule of amounts recorded on consolidated statements of operations 
The following table shows amounts recorded in restructuring and other items on our Consolidated Statements of Operations:
 
Year Ended December 31,
(in millions)
2014
2013
2012
Fleet, facilities and other
$
758

$
402

$
293

Severance and related costs
71

—

237

Routes and slots
—

—

(78
)
Settlements
(113
)
—

—

Total restructuring and other items
$
716

$
402

$
452

Schedule of restructuring charges 
The following table shows the balances and activity for restructuring charges:
 
Severance and Related Costs
 
Lease Restructuring
(in millions)
2014
2013
2012
 
2014
2013
2012
Liability at beginning of period
$
—

$
49

$
46

 
$
168

$
77

$
64

Additional costs and expenses
71

—

126

 
349

114

45

Payments
(29
)
(46
)
(123
)
 
(55
)
(18
)
(32
)
Other
—

(3
)
—

 
—

(5
)
—

Liability at end of period
$
42

$
—

$
49

 
$
462

$
168

$
77

Earnings Per Share (Tables)
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)
2014
2013
2012
Net income
$
659

$
10,540

$
1,009

 
 
 
 
Basic weighted average shares outstanding
836

849

845

Dilutive effect of share-based awards
9

9

5

Diluted weighted average shares outstanding
845

858

850

 
 
 
 
Basic earnings per share
$
0.79

$
12.41

$
1.20

Diluted earnings per share
$
0.78

$
12.29

$
1.19

Quarterly Financial Data (Unaudited) (Tables)
Schedule of quarterly financial information
 
Three Months Ended,
(in millions, except per share data)
March 31
June 30
September 30
December 31
2014
 
 
 
 
Operating revenue
$
8,916

$
10,621

$
11,178

$
9,647

Operating income (loss)
620

1,579

835

(828
)
Net income (loss)
213

801

357

(712
)
Basic earnings (loss) per share
$
0.25

$
0.95

$
0.43

$
(0.86
)
Diluted earnings (loss) per share
$
0.25

$
0.94

$
0.42

$
(0.86
)
2013
 
 
 
 
Operating revenue
$
8,500

$
9,707

$
10,490

$
9,076

Operating income
222

914

1,563

701

Net income
7

685

1,369

8,479

Basic earnings per share
$
0.01

$
0.81

$
1.61

$
10.02

Diluted earnings per share
$
0.01

$
0.80

$
1.59

$
9.89



The following special items are included in the results above:
 
Three Months Ended,
(in millions)
March 31
June 30
September 30
December 31
2014
 
 
 
 
MTM adjustments
$
(34
)
$
1

$
(347
)
$
(1,966
)
Restructuring and other
(49
)
(30
)
(570
)
(67
)
Loss on extinguishment of debt
(18
)
(111
)
(134
)
(5
)
Virgin Atlantic MTM adjustments
(8
)
—

(7
)
(119
)
Total loss
$
(109
)
$
(140
)
$
(1,058
)
$
(2,157
)
 
 
 
 
 
2013


 




Restructuring and other
$
(102
)
$
(34
)
$
(128
)
$
(160
)
MTM adjustments
24

(125
)
285

92

Release of tax valuation allowance
—

—

—

7,989

Total (loss) income
$
(78
)
$
(159
)
$
157

$
7,921

Summary of Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment [Line Items]
 
 
Less: accumulated depreciation and amortization
$ (9,340)
$ (7,792)
Total property and equipment, net
21,929 
21,854 
Flight Equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
24,313 
23,373 
Estimated useful life
21-30 years 
 
Ground Property and Equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
5,198 
4,596 
Estimated useful life
3-40 years 
 
Flight and Ground Equipment Under Capital Lease
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
1,141 
1,296 
Less: accumulated depreciation and amortization
(767)
(657)
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
$ 617 
$ 381 
Maximum |
Flight Equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Estimated useful life
P30Y 
 
Maximum |
Ground Property and Equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Estimated useful life
P40Y 
 
Minimum |
Flight Equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Estimated useful life
P21Y 
 
Minimum |
Ground Property and Equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Estimated useful life
P3Y 
 
Summary of Significant Accounting Policies - Narrative (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Ownership interest
50.00% 
 
 
Accumulated depreciation and amortization
$ 9,340,000,000 
$ 7,792,000,000 
 
Depreciation and amortization expense related to property and equipment
1,700,000,000 
1,600,000,000 
1,500,000,000 
Amortization of capitalized software
129,000,000 
110,000,000 
76,000,000 
Net book value of capitalized software
411,000,000 
383,000,000 
 
Advertising expense
$ 200,000,000 
$ 200,000,000 
$ 200,000,000 
Minimum
 
 
 
Spare parts, estimated residual value
5.00% 
 
 
Maximum
 
 
 
Spare parts, estimated residual value
10.00% 
 
 
Software and software development costs |
Minimum
 
 
 
Estimated useful life
3 years 
 
 
Software and software development costs |
Maximum
 
 
 
Estimated useful life
7 years 
 
 
Segments - Schedule of Segment Reporting Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total operating revenue
$ 9,647 
$ 11,178 
$ 10,621 
$ 8,916 
$ 9,076 
$ 10,490 
$ 9,707 
$ 8,500 
$ 40,362 
$ 37,773 
$ 36,670 
Operating income (loss)
(828)
835 
1,579 
620 
701 
1,563 
914 
222 
2,206 
3,400 
2,175 
Interest expense, net
 
 
 
 
 
 
 
 
650 
852 
1,005 
Depreciation and amortization
 
 
 
 
 
 
 
 
1,771 
1,658 
1,565 
Total assets
54,121 
 
 
 
52,252 
 
 
 
54,121 
52,252 
44,550 
Capital expenditures
 
 
 
 
 
 
 
 
2,249 
2,568 
1,968 
Airline
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total operating revenue
 
 
 
 
 
 
 
 
40,217 
37,773 
36,670 
Operating income (loss)
 
 
 
 
 
 
 
 
2,110 1
3,516 1
2,238 1
Interest expense, net
 
 
 
 
 
 
 
 
650 
852 
1,005 
Depreciation and amortization
 
 
 
 
 
 
 
 
1,745 
1,641 
1,561 
Total assets
53,012 
 
 
 
51,080 
 
 
 
53,012 
51,080 
43,386 
Capital expenditures
 
 
 
 
 
 
 
 
2,184 
2,516 
1,637 
Refinery
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total operating revenue
 
 
 
 
 
 
 
 
6,959 
7,003 
1,347 
Operating income (loss)
 
 
 
 
 
 
 
 
96 1
(116)1
(63)1
Interest expense, net
 
 
 
 
 
 
 
 
0 
0 
0 
Depreciation and amortization
 
 
 
 
 
 
 
 
26 
17 
4 
Total assets
1,109 
 
 
 
1,172 
 
 
 
1,109 
1,172 
1,164 
Capital expenditures
 
 
 
 
 
 
 
 
65 
52 
331 
Intersegment Sales/Other |
Sales to airline segment
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total operating revenue
 
 
 
 
 
 
 
 
(1,313)2
(1,156)2
(213)2
Intersegment Sales/Other |
Exchanged products
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total operating revenue
 
 
 
 
 
 
 
 
(5,104)3
(5,352)3
(1,121)3
Intersegment Sales/Other |
Sales of refined products to third parties
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total operating revenue
 
 
 
 
 
 
 
 
$ (397)4
$ (495)4
$ (13)4
Segments - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Jun. 30, 2012
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Date of refinery purchase
 
 
 
 
 
 
 
 
Jun. 22, 2012 
 
 
 
Refinery, purchase price
 
 
 
 
 
 
 
 
 
 
 
$ 180 
Grants receivable
 
 
 
 
 
 
 
 
 
 
 
30 
Total operating revenue
9,647 
11,178 
10,621 
8,916 
9,076 
10,490 
9,707 
8,500 
40,362 
37,773 
36,670 
 
Exchanged products |
Intersegment Eliminations
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Total operating revenue
 
 
 
 
 
 
 
 
$ (5,104)1
$ (5,352)1
$ (1,121)1
 
Fair Value Measurements - Schedule of Fair Value Measurement (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
$ 1,612 
$ 2,487 
Restricted cash equivalents and investments
37 
118 
Fuel hedge contracts
(1,848)
314 
Interest rate contracts
(7)
(67)
Foreign currency exchange contracts
73 
257 
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
1,612 
2,487 
Restricted cash equivalents and investments
37 
118 
Fuel hedge contracts
(167)
16 
Interest rate contracts
0 
0 
Foreign currency exchange contracts
0 
0 
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
0 
0 
Restricted cash equivalents and investments
0 
0 
Fuel hedge contracts
(1,681)
298 
Interest rate contracts
(7)
(67)
Foreign currency exchange contracts
73 
257 
Short-term investments |
U.S. government and agency securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
59 
959 
Short-term investments |
U.S. government and agency securities |
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
0 
959 
Short-term investments |
U.S. government and agency securities |
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
59 
0 
Short-term investments |
Asset- and mortgage-backed securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
392 
 
Short-term investments |
Asset- and mortgage-backed securities |
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
0 
 
Short-term investments |
Asset- and mortgage-backed securities |
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
392 
 
Short-term investments |
Corporate obligations
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
749 
 
Short-term investments |
Corporate obligations |
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
0 
 
Short-term investments |
Corporate obligations |
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
749 
 
Short-term investments |
Other fixed income securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
17 
 
Short-term investments |
Other fixed income securities |
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
0 
 
Short-term investments |
Other fixed income securities |
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
17 
 
Long-term investments
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
118 
109 
Long-term investments |
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
90 
80 
Long-term investments |
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
$ 28 
$ 29 
Fair Value Measurements - Narrative (Details)
12 Months Ended
Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Significant valuation assumptions
Volatilities used in these valuations ranged from 26% to 57% depending on the maturity dates, underlying commodities and strike prices of the option contracts. 
Derivative [Member] |
Minimum
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Assumed volatilities in valuation of fuel contracts
26.00% 
Derivative [Member] |
Maximum
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Assumed volatilities in valuation of fuel contracts
57.00% 
Investments - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 0 Months Ended 3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
May 31, 2013
Endeavor
May 31, 2013
Endeavor
aircraft
Jun. 30, 2013
Virgin Atlantic
Sep. 30, 2014
Externally Managed Investment Accounts [Member]
Equity Method Investments [Line Items]
 
 
 
 
 
 
 
Short-term investments
$ 1,217 
$ 959 
 
 
 
 
$ 1,500 
Acquisition of Endeavor
 
 
 
30 
 
 
 
Number of aircraft acquired
 
 
 
 
16 
 
 
Fair value of assets acquired
 
 
 
270 
 
 
 
Aircraft debt assumed
 
 
 
240 
 
 
 
Number of aircraft leased by Endeavor
 
 
 
 
169 
 
 
Noncontrolling Interest, Ownership Percentage by Parent
 
 
 
 
 
49.00% 
 
Payments to Acquire Equity Method Investments
0 
360 
0 
 
 
360 
 
Equity method investments
 
 
 
 
 
$ 60 
 
Investments - Schedule of Available For Sale Debt Maturities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
 
Due in one year or less
$ 175 
Due after one year through three years
791 
Due after three years through five years
163 
Due after five years
88 
Total
$ 1,217 
Derivatives and Risk Management - Schedule of Derivative Instruments of Financial Position (Details)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
Dec. 31, 2014
Hedge derivative asset
USD ($)
Dec. 31, 2013
Hedge derivative asset
USD ($)
Dec. 31, 2014
Other noncurrent assets
USD ($)
Dec. 31, 2013
Other noncurrent assets
USD ($)
Dec. 31, 2014
Hedge derivative liability
USD ($)
Dec. 31, 2013
Hedge derivative liability
USD ($)
Dec. 31, 2014
Other noncurrent liabilities
USD ($)
Dec. 31, 2013
Other noncurrent liabilities
USD ($)
Dec. 31, 2014
Designated as hedging instrument
USD ($)
Dec. 31, 2013
Designated as hedging instrument
USD ($)
Dec. 31, 2014
Designated as hedging instrument
Hedge derivative asset
USD ($)
Dec. 31, 2013
Designated as hedging instrument
Hedge derivative asset
USD ($)
Dec. 31, 2014
Designated as hedging instrument
Other noncurrent assets
USD ($)
Dec. 31, 2013
Designated as hedging instrument
Other noncurrent assets
USD ($)
Dec. 31, 2014
Designated as hedging instrument
Hedge derivative liability
USD ($)
Dec. 31, 2013
Designated as hedging instrument
Hedge derivative liability
USD ($)
Dec. 31, 2014
Designated as hedging instrument
Other noncurrent liabilities
USD ($)
Dec. 31, 2013
Designated as hedging instrument
Other noncurrent liabilities
USD ($)
Dec. 31, 2014
Not designated as hedging instrument
USD ($)
Dec. 31, 2013
Not designated as hedging instrument
USD ($)
Dec. 31, 2014
Not designated as hedging instrument
Hedge derivative asset
USD ($)
Dec. 31, 2013
Not designated as hedging instrument
Hedge derivative asset
USD ($)
Dec. 31, 2014
Not designated as hedging instrument
Other noncurrent assets
USD ($)
Dec. 31, 2013
Not designated as hedging instrument
Other noncurrent assets
USD ($)
Dec. 31, 2014
Not designated as hedging instrument
Hedge derivative liability
USD ($)
Dec. 31, 2013
Not designated as hedging instrument
Hedge derivative liability
USD ($)
Dec. 31, 2014
Not designated as hedging instrument
Other noncurrent liabilities
USD ($)
Dec. 31, 2013
Not designated as hedging instrument
Other noncurrent liabilities
USD ($)
Dec. 31, 2014
Interest rate contract
Fair value hedging
Designated as hedging instrument
USD ($)
Dec. 31, 2013
Interest rate contract
Fair value hedging
Designated as hedging instrument
USD ($)
Dec. 31, 2013
Interest rate contract
Cash flow hedging
Designated as hedging instrument
USD ($)
Dec. 31, 2014
Foreign exchange contract
Cash flow hedging
Designated as hedging instrument
CAD ($)
Dec. 31, 2014
Foreign exchange contract
Cash flow hedging
Designated as hedging instrument
JPY (¥)
Dec. 31, 2013
Foreign exchange contract
Cash flow hedging
Designated as hedging instrument
CAD ($)
Dec. 31, 2013
Foreign exchange contract
Cash flow hedging
Designated as hedging instrument
JPY (¥)
Dec. 31, 2014
Fuel hedge contract
Not designated as hedging instrument
gal
Dec. 31, 2013
Fuel hedge contract
Not designated as hedging instrument
gal
Derivatives, Fair Value [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, notional balance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 416 
$ 445 
$ 477 
$ 511 
¥ 77,576 
$ 438 
¥ 120,915 
 
 
Derivative, nonmonetary notional balance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8,604,000,000 
5,318,000,000 
Derivative, final maturity date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aug. 31, 2022 
Aug. 31, 2022 
May 31, 2019 
Oct. 05, 2017 
Oct. 05, 2017 
Aug. 31, 2016 
Aug. 31, 2016 
Dec. 31, 2016 
Mar. 31, 2015 
Interest rate contracts (cash flow hedges), assets
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts (cash flow hedges), liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(17)
 
(26)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts (cash flow hedges), hedge derivatives, net
 
 
 
 
 
 
 
 
 
 
 
(43)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts (fair value hedges), assets
 
 
 
 
 
 
 
 
 
 
 
 
5 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts (fair value hedges), liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
(2)
(12)
(22)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts (fair value hedges), hedge derivatives, net
 
 
 
 
 
 
 
 
 
 
(7)
(24)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange contracts, assets
 
 
 
 
 
 
 
 
 
 
 
 
25 
157 
49 
100 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange contracts, liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
73 
257 
 
 
 
 
 
 
 
 
73 
257 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fuel contracts, assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,048 
428 
3 
29 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fuel contracts, liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2,771)
(127)
(128)
(16)
 
 
 
 
 
 
 
 
 
Fuel contracts, hedge derivatives, net
(1,848)
314 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1,848)
314 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total derivative contracts, assets
 
 
1,078 
585 
52 
129 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total derivative contracts, liabilities
 
 
 
 
 
 
(2,772)
(146)
(140)
(64)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net derivative contracts, hedge derivatives, net
(1,782)
504 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net derivative contracts, assets
 
 
29 
456 
49 
116 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net derivative contracts, liabilities
 
 
 
 
 
 
$ (1,723)
$ (19)
$ (137)
$ (49)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives and Risk Management - Schedule of Designated Hedge Gain (Loss) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Effective portion reclassified from AOCI to earnings
$ 127 
$ 135 
$ (15)
Effective portion recognized in other comprehensive income (loss)
4 
161 
211 
Fuel hedge contract
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Effective portion reclassified from AOCI to earnings
0 
0 
15 
Effective portion recognized in other comprehensive income (loss)
0 
0 
(15)
Interest rate contract
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Effective portion reclassified from AOCI to earnings
(31)
0 
(5)
Effective portion recognized in other comprehensive income (loss)
38 
28 
14 
Foreign exchange contract
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Effective portion reclassified from AOCI to earnings
158 
135 
(25)
Effective portion recognized in other comprehensive income (loss)
$ (34)
$ 133 
$ 212 
Derivatives and Risk Management - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Derivative [Line Items]
 
 
 
Derivative, gain (loss), net
$ (2,186)
$ 86 
$ 209 
Unrealized gain on foreign currency exchange contracts
150 
 
 
Cash flow hedge gain to be reclassified within twelve months
174 
 
 
Derivative, collateral, right to reclaim cash
925 
 
 
Derivative, collateral, obligation to return cash
 
(65)
 
Fuel hedge contract
 
 
 
Derivative [Line Items]
 
 
 
Derivative, gain (loss), net
$ (2,000)
$ 493 
 
JFK Redevelopment - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Y
JFK Redevelopment [Abstract]
 
Estimated Cost Of Project
$ 180 
Special Project Bonds Face Amount
800 
Term of agreement to sublease space
33 
Construction in Progress, Gross
739 
Construction obligation
$ 733 
Intangible Assets - Indefinite-Lived Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
$ 4,420 
$ 4,420 
International routes and slots
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
2,287 
2,287 
Delta tradename
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
850 
850 
SkyTeam related assets
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
661 
661 
Domestic slots
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
$ 622 
$ 622 
Intangible Assets - Definite-Lived Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Definite-Lived Intangible Assets [Line Items]
 
 
Definite-Lived Intangible Assets, Gross Carrying Amount
$ 976 
$ 976 
Accumulated Amortization
(793)
(738)
Marketing agreements
 
 
Definite-Lived Intangible Assets [Line Items]
 
 
Definite-Lived Intangible Assets, Gross Carrying Amount
730 
730 
Accumulated Amortization
(648)
(602)
Contracts
 
 
Definite-Lived Intangible Assets [Line Items]
 
 
Definite-Lived Intangible Assets, Gross Carrying Amount
193 
193 
Accumulated Amortization
(92)
(83)
Other
 
 
Definite-Lived Intangible Assets [Line Items]
 
 
Definite-Lived Intangible Assets, Gross Carrying Amount
53 
53 
Accumulated Amortization
$ (53)
$ (53)
Intangible Assets - Schedule of Definite-Lived Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
 
2015 amortization expense
$ 18 
2016 amortization expense
18 
2017 amortization expense
17 
2018 amortization expense
17 
2019 amortization expense
$ 16 
Intangible Assets - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
Intangible assets, amortization expense
$ 55 
$ 70 
$ 70 
Long-Term Debt (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Rate
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Secured debt
$ 9,316 
$ 11,074 
Long-term debt, gross
9,469 
11,228 
Unamortized discount, net
(90)
(383)
Long-term debt
9,379 
10,845 
Long-term debt, current maturities
(1,109)
(1,449)
Long-term debt, excluding current maturities
8,270 
9,396 
Pacific Term Loan B-1
 
 
Debt Instrument [Line Items]
 
 
Debt instrument, maturity date
Oct. 31, 2018 
 
Debt instrument, interest rate, stated percentage
3.25% 1 2 3
 
Secured debt
1,078 1 2 3 4
1,089 1 2 3 4
Pacific Term Loan B-2
 
 
Debt Instrument [Line Items]
 
 
Debt instrument, maturity date
Apr. 30, 2016 
 
Debt instrument, interest rate, stated percentage
2.41% 1 2 3
 
Secured debt
392 1 2 3 4
396 1 2 3 4
Pacific Revolving Facility
 
 
Debt Instrument [Line Items]
 
 
Debt instrument, maturity date
Oct. 31, 2017 
 
Line of credit facility, amount outstanding
0 2 3
0 2 3
Term Loan Facility
 
 
Debt Instrument [Line Items]
 
 
Debt instrument, maturity date
Apr. 30, 2017 
 
Debt instrument, interest rate, stated percentage
3.25% 1 2 5
 
Secured debt
1,327 1 2 4 5
1,341 1 2 4 5
Revolving Credit Facility
 
 
Debt Instrument [Line Items]
 
 
Debt instrument, maturity date
Apr. 30, 2016 
 
Line of credit facility, amount outstanding
0 2 5
0 2 5
Certificates
 
 
Debt Instrument [Line Items]
 
 
Secured debt
3,226 6 7
3,834 6 7
Debt instrument, maturity date range, start
Jan. 01, 2015 
 
Debt instrument, maturity date range, end
Dec. 31, 2023 
 
Debt instrument, interest rate, stated percentage rate range, minimum
4.75% 
 
Debt instrument, interest rate, stated percentage rate range, maximum
9.75% 
 
Aircraft financings
 
 
Debt Instrument [Line Items]
 
 
Secured debt
2,988 6 7
3,787 6 7
Debt instrument, maturity date range, start
Jan. 01, 2015 
 
Debt instrument, maturity date range, end
Dec. 31, 2026 
 
Debt instrument, interest rate, stated percentage rate range, minimum
0.62% 
 
Debt instrument, interest rate, stated percentage rate range, maximum
6.76% 
 
Other secured financings
 
 
Debt Instrument [Line Items]
 
 
Secured debt
305 7 8
627 7 8
Debt instrument, maturity date range, start
Jan. 01, 2015 
 
Debt instrument, maturity date range, end
Dec. 31, 2031 
 
Debt instrument, interest rate, stated percentage rate range, minimum
0.00% 
 
Debt instrument, interest rate, stated percentage rate range, maximum
5.25% 
 
Bank revolving credit facilities
 
 
Debt Instrument [Line Items]
 
 
Line of credit facility, amount outstanding
0 2
0 2
Debt instrument, maturity date range, start
Jan. 01, 2015 
 
Debt instrument, maturity date range, end
Dec. 31, 2017 
 
Other unsecured debt
 
 
Debt Instrument [Line Items]
 
 
Debt instrument, maturity date range, start
Jan. 01, 2015 
 
Debt instrument, maturity date range, end
Dec. 31, 2035 
 
Debt instrument, interest rate, stated percentage rate range, minimum
3.01% 
 
Debt instrument, interest rate, stated percentage rate range, maximum
9.00% 
 
Other unsecured debt
$ 153 7
$ 154 7
Long-Term Debt - Key Financial Covenants (Details) (USD $)
In Billions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
2012 Pacific facilities
 
Debt Instrument [Line Items]
 
Covenant terms, minimum fixed charge coverage ratio
1.20 1
Covenant terms, minimum unrestricted liquidity, unrestricted cash, permitted investments and undrawn revolving credit facilities
$ 2.0 
Covenant terms, minimum collateral coverage ratio
1.60 2
2011 credit facilities
 
Debt Instrument [Line Items]
 
Covenant terms, minimum fixed charge coverage ratio
1.20 1
Covenant terms, minimum unrestricted liquidity, unrestricted cash and permitted investments
1.0 
Covenant terms, minimum unrestricted liquidity, unrestricted cash, permitted investments and undrawn revolving credit facilities
$ 2.0 
Covenant terms, minimum collateral coverage ratio
1.67 2 3
Collateral excluding non-Pacific international routes |
2011 credit facilities
 
Debt Instrument [Line Items]
 
Covenant terms, minimum collateral coverage ratio
0.75 2 3
Long-Term Debt - Line of Credit Facilities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Line of Credit Facility [Line Items]
 
Line of credit facility, current borrowing capacity
$ 1,903 
Revolving Credit Facility
 
Line of Credit Facility [Line Items]
 
Line of credit facility, current borrowing capacity
1,225 
Pacific Revolving Credit Facility
 
Line of Credit Facility [Line Items]
 
Line of credit facility, current borrowing capacity
450 
Bank revolving credit facilities
 
Line of Credit Facility [Line Items]
 
Line of credit facility, current borrowing capacity
$ 228 
Long-Term Debt - Schedule of Maturities of Long-Term Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Debt Disclosure [Abstract]
 
 
Long-term debt, maturities, repayments of principal in next twelve months
$ 1,111 
 
Debt instrument, amortization discount (premium), net year one
(19)
 
Long-term debt, maturities, repayments of principal in year two
1,326 
 
Debt instrument, amortization discount (premium), net year two
(21)
 
Long-term debt, maturities, repayments of principal in year three
2,137 
 
Debt instrument, amortization discount (premium), net year three
(19)
 
Long-term debt, maturities, repayments of principal in year four
2,028 
 
Debt instrument, amortization discount (premium), net fear four
(15)
 
Long-term debt, maturities, repayments of principal in year five
1,158 
 
Debt instrument, amortization discount (premium), net year five
(12)
 
Long-term debt, maturities, repayments of principal after year five
1,709 
 
Debt instrument, amortization discount (premium), net after year five
(4)
 
Long-term debt, gross
9,469 
11,228 
Amortized of debt discount, net
(90)
(383)
Long-term debt
$ 9,379 
$ 10,845 
Long-Term Debt - Schedule of Fair Value of Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Debt Disclosure [Abstract]
 
 
Total debt at par value
$ 9,469 
$ 11,228 
Unamortized discount, net
(90)
(383)
Net carrying amount
9,379 
10,845 
Debt instrument, fair value disclosure
$ 9,800 
$ 11,600 
Long-Term Debt - Narrative (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Rate
Dec. 31, 2013
Dec. 31, 2012
Debt Instrument [Line Items]
 
 
 
Annual repayment required as percentage of original principal amount
1.00% 
 
 
Line of credit facility, current borrowing capacity
$ 250,000,000 
 
 
Extinguishment of debt, amount
1,600,000,000 
 
 
Loss on extinguishment of debt
268,000,000 
0 
118,000,000 
Debt instrument, face amount
$ 1,100,000,000 
 
 
Debt Instrument, collateral
34 
 
 
Debt Instrument, Covenant Description
0.75:1 
 
 
London Interbank Offered Rate (LIBOR)
 
 
 
Debt Instrument [Line Items]
 
 
 
Debt instrument, maturity date range, start
Jan. 01, 2018 
 
 
Debt instrument, maturity date range, end
Dec. 31, 2026 
 
 
Lease Obligations - Schedule of Future Minimum Lease Payments for Capital Leases (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Leases [Abstract]
 
Capital leases, future minimum payments due in 2015
$ 157 
Capital leases, future minimum payments due in 2016
139 
Capital leases, future minimum payments due in 2017
97 
Capital leases, future minimum payments due in 2018
51 
Capital leases, future minimum payments due in 2019
33 
Capital leases, future minimum payments due thereafter
42 
Capital leases, future minimum payments due
519 
Capital leases, future minimum payments, interest included in payments
(121)
Capital leases, future minimum payments, present value of net minimum payments
398 
Capital lease obligations, current
(107)
Capital lease obligations, noncurrent
$ 291 
Lease Obligations - Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Operating Leased Assets [Line Items]
 
Operating leases, future minimum payments due in 2015
$ 1,707 
Operating leases, future minimum payments due in 2016
1,493 
Operating leases, future minimum payments due in 2017
1,323 
Operating leases, future minimum payments due in 2018
1,120 
Operating leases, future minimum payments due in 2019
929 
Operating leases, future minimum payments due thereafter
6,169 
Total minimum lease payments
12,741 
Contract Carrier
 
Operating Leased Assets [Line Items]
 
Operating leases, future minimum payments due in 2015
344 1
Operating leases, future minimum payments due in 2016
306 1
Operating leases, future minimum payments due in 2017
267 1
Operating leases, future minimum payments due in 2018
239 1
Operating leases, future minimum payments due in 2019
182 1
Operating leases, future minimum payments due thereafter
296 1
Total minimum lease payments
1,634 1
Mainline [Member]
 
Operating Leased Assets [Line Items]
 
Operating leases, future minimum payments due in 2015
1,363 2
Operating leases, future minimum payments due in 2016
1,187 2
Operating leases, future minimum payments due in 2017
1,056 2
Operating leases, future minimum payments due in 2018
881 2
Operating leases, future minimum payments due in 2019
747 2
Operating leases, future minimum payments due thereafter
5,873 2
Total minimum lease payments
$ 11,107 2
Lease Obligations - Narrative (Details) (USD $)
In Billions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Leases [Abstract]
 
 
 
Operating leases, rent expense
$ 1.2 
$ 1.1 
$ 1.1 
American Express Relationship - Narrative (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Debt instrument, face amount
$ 1,100,000,000 
 
 
American Express advance purchase of restricted SkyMiles
0 
285,000,000 
0 
Deferred revenue, additions
675,000,000 
675,000,000 
675,000,000 
Fuel card obligation
561,000,000 
602,000,000 
 
American Express advance purchase of skymiles
 
 
 
Debt instrument, face amount
1,000,000,000 
 
 
American Express advance purchase of restricted SkyMiles
 
285,000,000 
 
Fuel card obligation
 
 
 
Line of credit facility, maximum borrowing capacity
$ 612,000,000 
 
 
Employee Benefit Plans - Fair Value of Plan Assets and Funded Status (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Defined benefit plan, actuarial losses (gains)
$ 3,300 
 
 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets Period Start
9,880 
 
 
Defined Benefit Plan, Fair Value of Plan Assets period End
10,351 
 
 
Pension Benefits
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Defined benefit plan, benefit obligation period start
19,060 1
21,489 
 
Defined benefit plan, service cost
0 
0 
0 
Defined benefit plan, interest cost
928 
861 
930 
Defined benefit plan, actuarial losses (gains)
2,923 
(2,212)
 
Defined benefit plan, benefits paid, including lump sum and annuities
(1,055)
(1,078)
 
Defined benefit plan, participant contributions
0 
0 
 
Defined benefit plan, benefit obligation period end
21,856 1
19,060 1
21,489 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets Period Start
8,937 
8,196 
 
Defined Benefit Plan, Actual Return on Plan Assets
556 
905 
 
Defined Benefit Plan, Contributions by Employer
917 
914 
 
Defined benefit plan, participant contributions
0 
0 
 
Defined benefit plan, benefits paid, including lump sum and annuities
(1,055)
(1,078)
 
Defined Benefit Plan, Fair Value of Plan Assets period End
9,355 
8,937 
8,196 
Defined Benefit Plan, Funded Status of Plan [Abstract]
 
 
 
Defined Benefit Plan, Funded Status of Plan
(12,501)
(10,123)
 
Other Postretirement and Postemployment Benefits
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Defined benefit plan, benefit obligation period start
3,205 1
3,582 
 
Defined benefit plan, service cost
52 
49 
56 
Defined benefit plan, interest cost
155 
143 
164 
Defined benefit plan, actuarial losses (gains)
338 
(301)
 
Defined benefit plan, benefits paid, including lump sum and annuities
(307)
(313)
 
Defined benefit plan, participant contributions
44 
45 
 
Defined benefit plan, benefit obligation period end
3,487 1
3,205 1
3,582 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Defined Benefit Plan, Fair Value of Plan Assets Period Start
1,043 
1,004 
 
Defined Benefit Plan, Actual Return on Plan Assets
57 
129 
 
Defined Benefit Plan, Contributions by Employer
160 
191 
 
Defined benefit plan, participant contributions
44 
45 
 
Defined benefit plan, benefits paid, including lump sum and annuities
(307)
(313)
 
Defined Benefit Plan, Fair Value of Plan Assets, Period Increase (Decrease)
(322)
(326)
 
Defined Benefit Plan, Fair Value of Plan Assets period End
982 
1,043 
1,004 
Defined Benefit Plan, Funded Status of Plan [Abstract]
 
 
 
Defined Benefit Plan, Funded Status of Plan
$ (2,505)
$ (2,162)
 
Employee Benefit Plans - Balance Sheet Position (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract]
 
 
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent
$ (15,138)
$ (12,392)
Pension Benefits
 
 
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract]
 
 
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities
(28)
(22)
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent
(12,473)
(10,101)
Pension and Other Postretirement Defined Benefit Plans, Liabilities
(12,501)
(10,123)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract]
 
 
Pension and other postretirement benefit plans, accumulated other comprehensive income (loss), net actuarial loss, before tax
(8,409)
(5,349)
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax
0 
0 
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax
(8,409)
(5,349)
Other Postretirement and Postemployment Benefits
 
 
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract]
 
 
Pension and Other Postretirement Defined Benefit Plans, Current Liabilities
(139)
(139)
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent
(2,366)
(2,023)
Pension and Other Postretirement Defined Benefit Plans, Liabilities
(2,505)
(2,162)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract]
 
 
Pension and other postretirement benefit plans, accumulated other comprehensive income (loss), net actuarial loss, before tax
(465)
(103)
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax
135 
161 
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax
$ (330)
$ 58 
Employee Benefit Plans - Net Periodic Cost (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Pension Benefits
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined benefit plan, service cost
$ 0 
$ 0 
$ 0 
Defined benefit plan, interest cost
928 
861 
930 
Defined Benefit Plan, Expected Return on Plan Assets
(829)
(734)
(705)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)
0 
0 
0 
Defined Benefit Plan, Amortization of Gains (Losses)
134 
221 
143 
Defined Benefit Plan, Recognized Net (Gain) Loss Due to Settlements
0 
6 
0 
Defined benefit plan, other costs
0 
0 
0 
Defined Benefit Plan, Net Periodic Benefit Cost
233 
354 
368 
Defined Contribution Plan, Cost Recognized
551 
490 
426 
Defined Benefit Plan Cost Benefit
784 
844 
794 
Other Postretirement and Postemployment Benefits
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined benefit plan, service cost
52 
49 
56 
Defined benefit plan, interest cost
155 
143 
164 
Defined Benefit Plan, Expected Return on Plan Assets
(84)
(84)
(77)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)
(26)
(26)
(21)
Defined Benefit Plan, Amortization of Gains (Losses)
4 
25 
23 
Defined Benefit Plan, Recognized Net (Gain) Loss Due to Settlements
0 
0 
0 
Defined benefit plan, other costs
0 
0 
116 
Defined Benefit Plan, Net Periodic Benefit Cost
101 
107 
261 
Defined Contribution Plan, Cost Recognized
0 
0 
0 
Defined Benefit Plan Cost Benefit
$ 101 
$ 107 
$ 261 
Employee Benefit Plans - Schedule of Assumptions Used (Details)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate
4.14% 1 2
5.01% 1 2
 
Defined benefit plan, assumptions used calculating net periodic benefit cost, expected long-term return on assets
9.00% 
 
 
Pension Benefits
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate
4.99% 1
4.10% 1
4.95% 1
Other Postretirement and Postemployment Benefits
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate
4.88% 1 3
4.00% 1 3
4.63% 1 3
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year
7.00% 1 4
7.00% 1 4
7.00% 1 4
Other Pension Plans, Postretirement or Supplemental Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate
5.00% 1
4.13% 1
4.88% 1
Defined benefit plan, assumptions used calculating net periodic benefit cost, expected long-term return on assets
8.94% 1
8.94% 1
8.94% 1
Employee Benefit Plans - Schedule of Health Care Cost Trend Rates (Details) (Other Postretirement and Postemployment Benefits, USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Other Postretirement and Postemployment Benefits
 
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract]
 
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components
$ 1 
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components
(2)
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation
14 
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation
$ (28)
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Pension Benefits
 
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
 
Defined Benefit Plan, Expected Future Benefit Payments in Year One
$ 1,124 
Defined Benefit Plan, Expected Future Benefit Payments in Year Two
1,133 
Defined Benefit Plan, Expected Future Benefit Payments in Year Three
1,153 
Defined Benefit Plan, Expected Future Benefit Payments in Year Four
1,173 
Defined Benefit Plan, Expected Future Benefit Payments in Year Five
1,191 
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter
6,229 
Other Postretirement and Postemployment Benefits
 
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
 
Defined Benefit Plan, Expected Future Benefit Payments in Year One
278 
Defined Benefit Plan, Expected Future Benefit Payments in Year Two
272 
Defined Benefit Plan, Expected Future Benefit Payments in Year Three
265 
Defined Benefit Plan, Expected Future Benefit Payments in Year Four
256 
Defined Benefit Plan, Expected Future Benefit Payments in Year Five
257 
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter
$ 1,305 
Employee Benefit Plans - Schedule of Benefits Measured at Fair Value (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
$ 10,351 
$ 9,880 
Level 1
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
752 
1,802 
Level 2
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
5,001 
5,413 
Level 3
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
4,598 
2,665 
Equities and equity-related instruments
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
2,185 
4,165 
Equities and equity-related instruments |
Level 1
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
699 
1,774 
Equities and equity-related instruments |
Level 2
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
1,486 
2,391 
Equities and equity-related instruments |
Level 3
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Sovereign fixed income
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
45 
Sovereign fixed income |
Level 1
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Sovereign fixed income |
Level 2
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
45 
Sovereign fixed income |
Level 3
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Credit-related fixed income
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
594 
584 
Credit-related fixed income |
Level 1
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Credit-related fixed income |
Level 2
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
470 
525 
Credit-related fixed income |
Level 3
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
124 
59 
Other fixed income
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
635 
870 
Other fixed income |
Level 1
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
18 
0 
Other fixed income |
Level 2
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
617 
870 
Other fixed income |
Level 3
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Private equity
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
1,213 
1,366 
Private equity |
Level 1
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Private equity |
Level 2
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Private equity |
Level 3
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
1,213 
1,366 
Real assets
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
663 
688 
Real assets |
Level 1
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Real assets |
Level 2
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Real assets |
Level 3
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
663 
688 
Hedge Funds
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
2,245 
552 
Hedge Funds |
Level 1
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
31 
0 
Hedge Funds |
Level 2
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Hedge Funds |
Level 3
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
2,214 
552 
Cash equivalents
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
2,432 
1,610 
Cash equivalents |
Level 1
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
4 
28 
Cash equivalents |
Level 2
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
2,428 
1,582 
Cash equivalents |
Level 3
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Other
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
384 
0 
Other |
Level 1
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Other |
Level 2
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
0 
0 
Other |
Level 3
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Fair Value of Plan Assets
$ 384 
$ 0 
Employee Benefit Plans - Schedule of Assets Measured, Unobservable Input Reconciliation (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Private Equity
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
$ 1,213 
$ 1,366 
$ 1,466 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(144)
(262)
 
Real Estate
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
663 
688 
613 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
(23)
(5)
 
Hedge Funds
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
2,214 
552 
484 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
1,457 
19 
 
Fixed Income Funds [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
124 
59 
13 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
81 
44 
 
Other benefit plan assets [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
384 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
393 
0 
 
Total
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
4,598 
2,665 
2,576 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements
1,764 
(204)
 
Related to assets still held at the reporting date |
Private Equity
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
(116)
98 
 
Related to assets still held at the reporting date |
Real Estate
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
(39)
61 
 
Related to assets still held at the reporting date |
Hedge Funds
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
167 
49 
 
Related to assets still held at the reporting date |
Fixed Income Funds [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
(17)
2 
 
Related to assets still held at the reporting date |
Other benefit plan assets [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
(9)
0 
 
Related to assets still held at the reporting date |
Total
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
(14)
210 
 
Related to assets sold during the period |
Private Equity
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
107 
64 
 
Related to assets sold during the period |
Real Estate
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
37 
19 
 
Related to assets sold during the period |
Hedge Funds
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
38 
0 
 
Related to assets sold during the period |
Fixed Income Funds [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
1 
0 
 
Related to assets sold during the period |
Other benefit plan assets [Member]
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
0 
0 
 
Related to assets sold during the period |
Total
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)
$ 183 
$ 83 
 
Employee Benefit Plans - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2014
Rate
Dec. 31, 2013
Mar. 31, 2010
Dec. 31, 2014
Total funding under pension plans
Dec. 31, 2014
Contribution above minimum funding requirement
Dec. 31, 2014
Other Postretirement and Postemployment Benefits
Dec. 31, 2013
Other Postretirement and Postemployment Benefits
Dec. 31, 2012
Other Postretirement and Postemployment Benefits
Dec. 31, 2014
Minimum
Growth-seeking assets
Rate
Dec. 31, 2014
Minimum
Income-generating assets
Rate
Dec. 31, 2014
Minimum
Risk-diversifying assets
Rate
Dec. 31, 2014
Maximum
Growth-seeking assets
Rate
Dec. 31, 2014
Maximum
Income-generating assets
Rate
Dec. 31, 2014
Maximum
Risk-diversifying assets
Rate
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plan, other information
8.85% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plan, estimated future employer contributions in next fiscal year
 
 
 
$ 950 
$ 340 
 
 
 
 
 
 
 
 
 
Assumed Health care plan pre age
65 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assumed Health care plan post age
65 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plan, other costs
 
 
 
 
 
0 
0 
116 
 
 
 
 
 
 
Defined Benefit Plan, Actuarial Gain (Loss)
(3,300)
 
 
 
 
(338)
301 
 
 
 
 
 
 
 
Pension and other postretirement benefit plans, amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year
(230)
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plan, description of direction and pattern of change for assumed health care cost trend rate
0.05 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized three year rate of return on plan assets
11.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized five year rate of return on plan assets
9.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plan, assumptions used calculating net periodic benefit cost, expected long-term return on assets
9.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Benefit Plan, Target Plan Asset Allocations
 
 
 
 
 
 
 
 
40.00% 
20.00% 
25.00% 
50.00% 
30.00% 
30.00% 
Deferred compensation cash-based arrangements, liability, current
$ 1,100 
$ 506 
$ 372 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies - Aircraft Purchase and Lease Commitments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Capital addition purchase commitments
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
Unrecorded Unconditional Purchase Obligation, due in 2015
$ 1,480 
Unrecorded Unconditional Purchase Obligation, due in 2016
1,970 
Unrecorded Unconditional Purchase Obligation, due in 2017
2,390 
Unrecorded Unconditional Purchase Obligation, due in 2018
2,230 
Unrecorded Unconditional Purchase Obligation, due in 2019
1,060 
Unrecorded Unconditional Purchase Obligation, due Thereafter
4,820 
Aircraft purchase commitments, total
13,950 
Airline capacity purchase arrangements
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
Unrecorded Unconditional Purchase Obligation, due in 2015
2,220 1
Unrecorded Unconditional Purchase Obligation, due in 2016
1,930 1
Unrecorded Unconditional Purchase Obligation, due in 2017
1,720 1
Unrecorded Unconditional Purchase Obligation, due in 2018
1,550 1
Unrecorded Unconditional Purchase Obligation, due in 2019
1,430 1
Unrecorded Unconditional Purchase Obligation, due Thereafter
2,370 1
Aircraft purchase commitments, total
$ 11,220 1
Commitments and Contingencies - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Contract carriers expiration dates
2016 to 2024 
 
Terms of aircraft lease
the lease would have (1) a rate equal to the aircraft-related debt payments of Shuttle America as if 90% of the aircraft was financed by Shuttle America and (2) other specified terms and conditions 
 
Rate of interest on the equity to be paid on exercising put right
10.00% 
 
Required cash reserve for credit card agreements
$ 0 
$ 0 
Percentage of employees represented by unions under collective bargaining agreements
18.00% 
 
All employees
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Entity number of employees
80,000 
 
Refinery employees
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Entity number of employees
210 
 
Venezuelan bolívar fuerte
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Asset, Reporting Currency Denominated, Value
102 
 
Official exchange rate set by government
6.3 
 
Foreign Currency Exchange Rate, Translation
11.7 
 
Foreign currency transactions loss
23 
 
Capital addition purchase commitments
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Aircraft purchase commitments, total
13,950 
 
B-737-900
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Unrecorded unconditional purchase obligation, minimum quantity required
69 
 
A321-200
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Unrecorded unconditional purchase obligation, minimum quantity required
45 
 
A330-900 NEO
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Unrecorded unconditional purchase obligation, minimum quantity required
25 
 
A350-900
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Unrecorded unconditional purchase obligation, minimum quantity required
25 
 
B-737-800
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Unrecorded unconditional purchase obligation, minimum quantity required
18 
 
A330-300
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Unrecorded unconditional purchase obligation, minimum quantity required
10 
 
CRJ-900
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Unrecorded unconditional purchase obligation, minimum quantity required
2 
 
B-717-200
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Other aircraft commitments
36 
 
EMB-145
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Aircraft put right
111 
 
Equity amount to be paid on exercise of put right
25 
 
Embraer 170/175
 
 
Unrecorded Unconditional Purchase Obligation [Line Items]
 
 
Aircraft put right
290 
 
Equity amount to be paid on exercise of put right
$ 52 
 
Commitments and Contingencies - Employee Under Collective Bargaining Agreements (Details)
12 Months Ended
Dec. 31, 2014
employee
Delta Pilots
 
Entity number of employees
11,530 
Union
ALPA 
Date on which Collective Bargaining Agreement Becomes Amendable
Dec. 31, 2015 
Delta Flight Superintendents (Dispatchers)
 
Entity number of employees
380 
Union
PAFCA 
Date on which Collective Bargaining Agreement Becomes Amendable
Mar. 31, 2018 
Endeavor Air Pilots
 
Entity number of employees
1,300 
Union
ALPA 
Date on which Collective Bargaining Agreement Becomes Amendable
Jan. 01, 2020 
Endeavor Air Flight Attendants
 
Entity number of employees
1,000 
Union
AFA 
Date on which Collective Bargaining Agreement Becomes Amendable
Dec. 31, 2018 
Endeavor Air Dispatchers
 
Entity number of employees
60 
Union
DISTWU 
Date on which Collective Bargaining Agreement Becomes Amendable
Dec. 31, 2018 
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
 
 
Required cash reserve for credit card agreements
$ 0 
$ 0 
Required Amount of Withholding of Payments for Credit Card Agreements
0 
0 
Cash Reserve for Credit Card Processing Agreements
0 
0 
Amount Withheld for Credit Card Processing Agreements
$ 0 
$ 0 
Income Taxes - Income Tax Benefit (Provision) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Tax Disclosure [Abstract]
 
 
 
Federal
$ 21 
$ 24 
$ 0 
State and local
(9)
(3)
15 
International
(11)
1 
(14)
Federal
(424)
7,197 
(4)
State and local
10 
794 
(13)
Income Tax (Provision) Benefit
$ (413)
$ 8,013 
$ (16)
Income Taxes - Effective Income Tax Rate Reconciliation (Details)
12 Months Ended
Dec. 31, 2014
Rate
Dec. 31, 2013
Rate
Dec. 31, 2012
Rate
Income Tax Disclosure [Abstract]
 
 
 
U.S. federal statutory income tax rate
35.00% 
35.00% 
35.00% 
State taxes, net of federal benefit
2.00% 
3.00% 
3.30% 
Decrease in valuation allowance
(2.40%)
(367.50%)
(40.80%)
Income tax allocation
0.00% 
12.70% 
0.00% 
Other Adjustments
3.90% 
(0.40%)
4.00% 
Effective Income Tax Rate
38.50% 
(317.20%)
1.50% 
Income Taxes - Deferred Taxes (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Components of Deferred Tax Assets [Abstract]
 
 
 
 
Net operating loss carryforwards
$ 4,782 
$ 6,024 
 
 
Pension, postretirement and other benefits
6,033 
4,982 
 
 
Fuel derivatives MTM adjustments
777 
0 
 
 
AMT credit carryforward
357 
378 
 
 
Deferred revenue
1,824 
1,965 
 
 
Other
659 
698 
 
 
Valuation allowance
(46)
(177)
(10,963)
(10,705)
Total deferred tax assets
14,386 
13,870 
 
 
Components of Deferred Tax Liabilities [Abstract]
 
 
 
 
Depreciation
4,663 
4,799 
 
 
Intangible assets
1,684 
1,704 
 
 
Other
444 
639 
 
 
Total deferred tax liabilities
6,791 
7,142 
 
 
Income Tax Disclosure [Abstract]
 
 
 
 
Deferred income taxes, net
3,275 
1,736 
 
 
Noncurrent deferred tax assets, net
4,320 
4,992 
 
 
Total deferred tax assets, net
$ 7,595 
$ 6,728 
 
 
Income Taxes - Valuation Allowance (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2014
Income tax provision
Dec. 31, 2013
Income tax provision
Dec. 31, 2012
Income tax provision
Dec. 31, 2014
Other comprehensive income tax benefit
Dec. 31, 2013
Other comprehensive income tax benefit
Dec. 31, 2012
Other comprehensive income tax benefit
Dec. 31, 2014
Expirations
Dec. 31, 2013
Expirations
Dec. 31, 2012
Expirations
Dec. 31, 2014
Release of valuation allowance
Dec. 31, 2013
Release of valuation allowance
Dec. 31, 2012
Release of valuation allowance
Dec. 31, 2014
Other
Dec. 31, 2013
Other
Dec. 31, 2012
Other
Valuation Allowance [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Valuation allowance at beginning of period
$ 46 
$ 177 
$ 10,963 
$ 10,705 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (decrease) in valuation allowance
 
 
 
 
(9)
(975)
(432)
(3)
(1,186)
690 
(91)
0 
0 
(28)
(8,310)
0 
0 
(315)
0 
Valuation allowance at end of period
$ 46 
$ 177 
$ 10,963 
$ 10,705 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes - Narrative (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Valuation Allowance [Line Items]
 
 
 
 
AMT credit carryforward
$ 357,000,000 
$ 378,000,000 
 
 
Operating loss carryforwards
12,000,000,000 
 
 
 
Operating loss carryforwards, expiration dates
Jan. 01, 2024 
 
 
 
Valuation allowance
46,000,000 
177,000,000 
10,963,000,000 
10,705,000,000 
Income before income taxes
1,072,000,000 
2,527,000,000 
1,025,000,000 
 
Accumulated other comprehensive income valuation allowance net of tax
10,000,000 
13,000,000 
3,100,000,000 
 
Income tax benefit related to tax allocation
1,900,000,000 
 
 
 
Deferred Income Taxes
1,900,000,000 
 
 
 
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Pensions
25 years 
 
 
 
Income tax expense related to tax allocation
321,000,000 
 
 
 
Unrecognized tax benefits
40,000,000 
37,000,000 
44,000,000 
 
Release of valuation allowance
 
 
 
 
Valuation Allowance [Line Items]
 
 
 
 
Increase (decrease) in valuation allowance
$ (28,000,000)
$ (8,310,000,000)
$ 0 
 
Equity and Equity Compensation - Narrative (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
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
$ 0.0001 
$ 0.0001 
 
Preferred stock, shares authorized
500,000,000 
 
 
Treasury stock acquired, weighted average cost per share
$ 15.82 
$ 14.31 
 
Share-based compensation arrangement by share-based payment award, number of shares authorized
157,000,000 
 
 
Common Stock, capital shares reserved for future issuance
27,000,000 
 
 
Share-based compensation
$ 81 
$ 90 
$ 54 
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized
56 
 
 
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number
5,000,000 
 
 
Share-based compensation arrangement by share-based payment award, options, outstanding, number
7,000,000 
 
 
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted average exercise price
$ 12.88 
 
 
Share-based compensation arrangement by share-based payment award, options, exercisable, number
6,000,000 
 
 
Employee service share-based compensation, tax benefit from compensation expense
$ 0 
$ 0 
$ 0 
Accumulated Other Comprehensive Loss (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Accumulated other comprehensive income (loss), pension and other benefits liabilities, beginning balance
$ (5,323)1
$ (8,307)
$ (6,288)
Accumulated other comprehensive income (loss), derivative contracts, beginning balance
219 1 2
(263)2
(474)2
Accumulated other comprehensive income (loss), investments, beginning balance
(26)1
(7)
(4)
Accumulated other comprehensive income (loss), total, beginning balance
(5,130)
(8,577)
(6,766)
Changes in value (net of tax effect of $0), pension and other benefits liabilities
(2,267)
2,760 
(2,168)
Changes in value (net of tax effect of $0), derivative contracts
83 2
296 2
196 2
Changes in value (net of tax effect of $0), investments
10 
(19)
(3)
Changes in value (net of tax effect of $0), total
(2,174)
3,037 
(1,975)
Reclassification into earnings (net of tax effect), pension and other benefits liabilities
73 3
224 3
149 3
Reclassification into earnings (net of tax effect), derivative contracts
(80)2
186 2 3
15 2 3
Reclassification into earnings (net of tax effect), investments
0 3
0 3
0 3
Reclassification into earnings (net of tax effect), total
(7)3
410 3
164 3
Accumulated other comprehensive income (loss), pension and other benefits liabilities, ending balance
(7,517)1
(5,323)1
(8,307)
Accumulated other comprehensive income (loss), derivative contracts, ending balance
222 1 2
219 1 2
(263)2
Accumulated other comprehensive income (loss), investments, ending balance
(16)1
(26)1
(7)
Accumulated other comprehensive income (loss), total, ending balance
(7,311)
(5,130)
(8,577)
Other Comprehensive Income (Loss), Tax
1,276 
0 
0 
Non cash income tax expense recorded in other comprehensive income
$ 4 
$ 321 
$ 0 
Accumulated Other Comprehensive Loss - Narrative (Details) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
 
Deferred Income Taxes
$ 1,900,000,000 
 
 
Non cash income tax expense recorded in other comprehensive income
$ 4,000,000 
$ 321,000,000 
$ 0 
Geographic Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating revenue
$ 9,647 
$ 11,178 
$ 10,621 
$ 8,916 
$ 9,076 
$ 10,490 
$ 9,707 
$ 8,500 
$ 40,362 
$ 37,773 
$ 36,670 
Domestic
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
26,898 
24,857 
23,989 
Atlantic
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
6,757 
6,446 
6,329 
Pacific
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
3,948 
4,086 
4,198 
Latin America
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
$ 2,759 
$ 2,384 
$ 2,154 
Restructuring and Other Items - Schedule of Amounts Recorded on Consolidated Statements of Operations (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring and other items
$ 716 
$ 402 
$ 452 
Fleet, facilities and other
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring and other items
758 
402 
293 
Severance and related costs
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring and other items
71 
0 
237 
Routes and slots
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring and other items
0 
0 
(78)
Settlements
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring and other items
$ (113)
$ 0 
$ 0 
Restructuring and Other Items - Schedule of Restructuring Charges (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Severance and related costs
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Liability at beginning of period
$ 0 
$ 49 
$ 46 
Additional costs and expenses
71 
0 
126 
Payments
(29)
(46)
(123)
Other
0 
(3)
0 
Liability at end of period
42 
0 
49 
Lease restructuring
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Liability at beginning of period
168 
77 
64 
Additional costs and expenses
349 
114 
45 
Payments
(55)
(18)
(32)
Other
0 
(5)
0 
Liability at end of period
$ 462 
$ 168 
$ 77 
Restructuring and Other Items - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 3 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Fleet, facilities and other
Dec. 31, 2013
Fleet, facilities and other
Dec. 31, 2012
Fleet, facilities and other
Dec. 31, 2014
Severance and related costs
Dec. 31, 2013
Severance and related costs
Dec. 31, 2012
Severance and related costs
Dec. 31, 2012
Comair employee severance
Dec. 31, 2014
Routes and slots
Dec. 31, 2013
Routes and slots
Dec. 31, 2012
Routes and slots
Dec. 31, 2014
Favorable settlement of outstanding litigation
Dec. 31, 2014
Insurance settlement
Dec. 31, 2012
Delta employee severance
Severance and related costs
employee
Dec. 31, 2012
Comair employee severance
Severance and related costs
employee
Dec. 31, 2014
Other postretirement and postemployment benefits
Dec. 31, 2013
Other postretirement and postemployment benefits
Dec. 31, 2012
Other postretirement and postemployment benefits
Sep. 30, 2014
B-747-400
aircraft
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of aircraft designated for retirement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16 
Fleet retirement, time horizon
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 years 
Restructuring and other items
$ 716 
$ 402 
$ 452 
$ 758 
$ 402 
$ 293 
$ 71 
$ 0 
$ 237 
$ 66 
$ 0 
$ 0 
$ (78)
$ 67 
$ 46 
 
 
 
 
 
 
Number of aircraft retired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 
Defined benefit plan, other costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 0 
$ 116 
 
Entity number of employees (more than 2,000 for voluntary severance programs)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,000 
1,700 
 
 
 
 
Earnings Per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net income
$ (712)
$ 357 
$ 801 
$ 213 
$ 8,479 
$ 1,369 
$ 685 
$ 7 
$ 659 
$ 10,540 
$ 1,009 
Basic weighted average shares outstanding
 
 
 
 
 
 
 
 
836 
849 
845 
Dilutive effect of share-based awards
 
 
 
 
 
 
 
 
9 
9 
5 
Diluted weighted average shares outstanding
 
 
 
 
 
 
 
 
845 
858 
850 
Basic earnings (loss) per share
$ (0.86)
$ 0.43 
$ 0.95 
$ 0.25 
$ 10.02 
$ 1.61 
$ 0.81 
$ 0.01 
$ 0.79 
$ 12.41 
$ 1.20 
Diluted earnings (loss) per share
$ (0.86)
$ 0.42 
$ 0.94 
$ 0.25 
$ 9.89 
$ 1.59 
$ 0.80 
$ 0.01 
$ 0.78 
$ 12.29 
$ 1.19 
Quarterly Financial Data (Unaudited) - Quarterly Financial Information (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Operating revenue
$ 9,647 
$ 11,178 
$ 10,621 
$ 8,916 
$ 9,076 
$ 10,490 
$ 9,707 
$ 8,500 
$ 40,362 
$ 37,773 
$ 36,670 
Operating income (loss)
(828)
835 
1,579 
620 
701 
1,563 
914 
222 
2,206 
3,400 
2,175 
Net Income
(712)
357 
801 
213 
8,479 
1,369 
685 
7 
659 
10,540 
1,009 
Basic earnings (loss) per share
$ (0.86)
$ 0.43 
$ 0.95 
$ 0.25 
$ 10.02 
$ 1.61 
$ 0.81 
$ 0.01 
$ 0.79 
$ 12.41 
$ 1.20 
Diluted earnings (loss) per share
$ (0.86)
$ 0.42 
$ 0.94 
$ 0.25 
$ 9.89 
$ 1.59 
$ 0.80 
$ 0.01 
$ 0.78 
$ 12.29 
$ 1.19 
Quarterly financial information, quarterly charges and credits, amount affecting comparability
$ (2,157)
$ (1,058)
$ (140)
$ (109)
$ 7,921 
$ 157 
$ (159)
$ (78)
 
 
 
Quarterly Financial Data (Unaudited) - Special Items (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Quarterly Financial Information [Line Items]
 
 
 
 
 
 
 
 
Quarterly financial information, quarterly charges and credits, amount affecting comparability
$ (2,157)
$ (1,058)
$ (140)
$ (109)
$ 7,921 
$ 157 
$ (159)
$ (78)
MTM adjustments
 
 
 
 
 
 
 
 
Quarterly Financial Information [Line Items]
 
 
 
 
 
 
 
 
Quarterly financial information, quarterly charges and credits, amount affecting comparability
(1,966)
(347)
1 
(34)
92 
285 
(125)
24 
Restructuring and other
 
 
 
 
 
 
 
 
Quarterly Financial Information [Line Items]
 
 
 
 
 
 
 
 
Quarterly financial information, quarterly charges and credits, amount affecting comparability
(67)
(570)
(30)
(49)
(160)
(128)
(34)
(102)
Loss on extingushment of debt
 
 
 
 
 
 
 
 
Quarterly Financial Information [Line Items]
 
 
 
 
 
 
 
 
Quarterly financial information, quarterly charges and credits, amount affecting comparability
(5)
(134)
(111)
(18)
 
 
 
 
Virgin Atlantic MTM adjustment
 
 
 
 
 
 
 
 
Quarterly Financial Information [Line Items]
 
 
 
 
 
 
 
 
Quarterly financial information, quarterly charges and credits, amount affecting comparability
(119)
(7)
0 
(8)
 
 
 
 
Release of tax valuation allowance
 
 
 
 
 
 
 
 
Quarterly Financial Information [Line Items]
 
 
 
 
 
 
 
 
Quarterly financial information, quarterly charges and credits, amount affecting comparability
 
 
 
 
$ 7,989 
$ 0 
$ 0 
$ 0