Segments

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segments

SEGMENTS

Refinery Operations

We own and operate an oil refinery as part of our strategy to reduce the cost of the refining margin we pay. The refinery's production consists of jet fuel, as well as gasoline, diesel and other refined products ("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 three months endedMarch 31, 2015 and 2014 was $782 million and $1.0 billion, respectively.

Segment Reporting

Segment results are prepared based on our internal accounting policies described below, with reconciliations to consolidated amounts in accordance with GAAP.

(in millions)	Airline		Refinery			Intersegment Sales/Other				Consolidated
Three Months Ended March 31, 2015
Operating revenue:	$	9,314	$	1,140						$	9,388
Sales to airline segment						$	(233	)	(1)
Exchanged products						(782		)	(2)
Sales of refined products to third parties						(51		)	(3)
Operating income(4)	1,312		86			—				1,398
Interest expense, net	131		—			—				131
Depreciation and amortization	463		7			—				470
Total assets, end of period	52,696		1,056			—				53,752
Capital expenditures	579		7			—				586
Three Months Ended March 31, 2014
Operating revenue:	$	8,916	$	1,463						$	8,916
Sales to airline segment						$	(249	)	(1)
Exchanged products						(1,003		)	(2)
Sales of refined products to third parties						(211		)	(3)
Operating income (loss)(4)	661		(41		)	—				620
Interest expense, net	186		—			—				186
Depreciation and amortization	437		5			—				442
Total assets, end of period	51,016		1,151			—				52,167
Capital expenditures	592		22			—				614

⁽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 exchange agreements with third parties, 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.