XML 43 R23.htm IDEA: XBRL DOCUMENT v3.3.1.900
Restructuring and Other Items
 12 Months Ended
Dec. 31, 2015
Restructuring and Related Activities [Abstract]  
Restructuring and Other Items
RESTRUCTURING AND OTHER

The following table shows amounts recorded in restructuring and other on our Consolidated Statements of Operations:
 
Year Ended December 31,
(in millions)
2015
2014
2013
Fleet and other
$
35

$
758

$
402

Severance and related costs
—

71

—

Settlements
—

(113
)
—

Total restructuring and other
$
35

$
716

$
402



Fleet and Other. We continue to restructure our domestic fleet by replacing a portion of our 50-seat regional fleet 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. The restructuring charges recorded during 2015 include remaining lease payments and lease return costs for permanently grounded aircraft. In previous years, the restructuring charges also included impairments, the acceleration of aircraft depreciation and related equipment disposals.

During 2014, we decided to retire our fleet of 16 B-747-400 aircraft over the next three years. As part of the accelerated retirement, 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 2014.

Severance and Related Costs. During 2015, we announced a voluntary retirement program for eligible U.S. employees and an involuntary merit restructuring initiative. We recognized a $51 million charge in salaries and related costs in our Consolidated Statement of Operations in connection with these programs. During 2014, we announced a voluntary retirement program for eligible U.S. employees. We recorded a $71 million charge in restructuring and other in our Consolidated Statement of Operations in connection with this program and other programs related to our Pacific strategy.

Settlements. During 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)
2015
2014
2013
 
2015
2014
2013
Liability at beginning of period
$
42

$
—

$
49

 
$
462

$
168

$
77

Additional costs and expenses
51

71

—

 
41

349

114

Payments
(41
)
(29
)
(46
)
 
(86
)
(55
)
(18
)
Other
—

—

(3
)
 
(2
)
—

(5
)
Liability at end of period
$
52

$
42

$
—

 
$
415

$
462

$
168