| Segments
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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 |
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 |
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 |
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(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. |
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• | 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. |
(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). |
(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. |
• | 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. |
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(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 |
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(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 | ) |
(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 |
(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 |
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 |
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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 |
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 | ) |
Years Ending December 31, (in millions) | |||
2015 | $ | 18 | |
2016 | 18 | ||
2017 | 17 | ||
2018 | 17 | ||
2019 | 16 |
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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. |
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. |
(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 |
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 |
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 |
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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 |
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. |
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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. |
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 |
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 |
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. |
(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 | ) |
(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 |
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 |
(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 |
|
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 |
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. |
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 |
|
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 | ) |
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 | % |
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 |
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 |
(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 |
|
|
(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. |
|
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 |
|
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 |
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 |
|
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 |
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 |
|
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 |
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 |
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 |
|
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 |
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 |
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 |
|
(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. |
|
(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. |
|
(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 |
|
(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 | ) |
(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 |
(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 |
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 |
|
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 |
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 | ) |
Years Ending December 31, (in millions) | |||
2015 | $ | 18 | |
2016 | 18 | ||
2017 | 17 | ||
2018 | 17 | ||
2019 | 16 |
|
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. |
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. |
(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 |
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 |
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 |
|
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 |
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 |
|
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. |
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 |
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 |
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. |
(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 | ) |
(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 |
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 |
(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 |
|
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 |
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. |
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 |
|
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 | ) |
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 | % |
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 |
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 |
(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 |
|
(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. |
|
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 |
|
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 |
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 |
|
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 |
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 |
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