Long-Term Debt (Tables)
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12 Months Ended |
Dec. 31, 2015 |
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| Debt Disclosure [Abstract] |
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| Schedule of debt instruments |
These covenants require us to maintain: | | | Minimum unrestricted liquidity | | Unrestricted cash, permitted investments and undrawn revolving credit facilities | $2.0 billion | Minimum collateral coverage ratio(1) | 1.60:1 |
| | (1) | Defined as the ratio of (a) certain of the collateral that meet specified eligibility standards to (b) the sum of the aggregate outstanding obligations under the 2015 Credit Facilities and certain other obligations. |
The Pacific 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. | | | Minimum fixed charge coverage ratio (1) | 1.20:1 | Minimum unrestricted liquidity | | Unrestricted cash, permitted investments and undrawn revolving credit facilities | $2.0 billion | Minimum collateral coverage ratio (2) | 1.60:1 |
| | (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 meet specified eligibility standards to (b) the sum of the aggregate outstanding obligations and certain other obligations. |
The following table summarizes our long-term debt: | | | | | | | | | | | | | | | Maturity | Interest Rate(s) Per Annum at | December 31, | (in millions) | Dates | December 31, 2015 | 2015 | 2014 | Pacific Facilities(1): | | | | | | | | | Pacific Term Loan B-1(2) | October 2018 | 3.25% | variable(4) | $ | 1,067 |
| $ | 1,078 |
| Pacific Term Loan B-2(2) | April 2016 | 2.67% | variable(4) | 388 |
| 392 |
| Pacific Revolving Credit Facility | 2017 | to | 2018 | undrawn | variable(4) | — |
| — |
| 2015 Credit Facilities(1): | | | | | | | | | Term Loan Facility(2) | August 2022 | 3.25% | variable(4) | 499 |
| — |
| Revolving Credit Facility | August 2020 | undrawn | variable(4) | — |
| — |
| 2011 Credit Facilities: | | | |
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| | | Term Loan Facility | n/a | n/a | n/a | — |
| 1,327 |
| Revolving Credit Facility | n/a | n/a | n/a | — |
| — |
| Financing arrangements secured by aircraft: | | |
| | | | | | Certificates(3) | 2016 | to | 2027 | 3.63% | to | 9.75% | 3,264 |
| 3,226 |
| Notes(3) | 2016 | to | 2027 | 0.83% | to | 6.76% | 2,564 |
| 2,988 |
| Other financings(3)(5) | 2016 | to | 2031 | 2.24% | to | 8.75% | 316 |
| 458 |
| Other revolving credit facilities(1) | 2016 | to | 2017 | undrawn | variable(4) | — |
| — |
| Total secured and unsecured debt | | | | | | | 8,098 |
| 9,469 |
| Unamortized discount and debt issue cost, net | | | | | | | (152 | ) | (206 | ) | Total debt | | | | | | | 7,946 |
| 9,263 |
| Less: current maturities | | | | | | | (1,415 | ) | (1,075 | ) | Total long-term debt | | | | | | | $ | 6,531 |
| $ | 8,188 |
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| | (1) | Guaranteed by substantially all of our domestic subsidiaries (the "Guarantors"). |
| | (2) | 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) | 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. |
| | (5) | Primarily includes loans secured by certain accounts receivable and real estate. |
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| Schedule of additional collateral on debt |
The details of the 2015-1 EETC, which is secured by 15 aircraft, are shown in the table below: | | | | | | | | (in millions) | Total Principal | Fixed Interest Rate | Issuance Date | Final Maturity Date | 2015-1 Class AA Certificates | $ | 313 |
| 3.625% | August 2015 | July 2027 | 2015-1 Class A Certificates | 69 |
| 3.875% | August 2015 | July 2027 | 2015-1 Class B Certificates | 118 |
| 4.250% | August 2015 | July 2023 | Total | $ | 500 |
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| Schedule of line of credit facilities |
The table below shows availability under revolving credit facilities, all of which were undrawn, as of December 31, 2015: | | | | | (in millions) | | Revolving Credit Facility | $ | 1,500 |
| Pacific Revolving Credit Facility | 450 |
| Other revolving credit facilities | 257 |
| Total availability under revolving credit facilities | $ | 2,207 |
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| Summary of scheduled maturities of debt |
The following table summarizes scheduled maturities of our debt for the years succeeding December 31, 2015: | | | | | | | | | | | | |
(in millions) | Total Debt | | Amortization of Debt Discount and Debt Issue Cost, net | | | 2016 | $ | 1,442 |
| | $ | (40 | ) | | | 2017 | 869 |
| | (39 | ) | | | 2018 | 2,061 |
| | (35 | ) | | | 2019 | 1,189 |
| | (22 | ) | | | 2020 | 456 |
| | (4 | ) | | | Thereafter | 2,081 |
| | (12 | ) | | | Total | $ | 8,098 |
| | $ | (152 | ) | | $ | 7,946 |
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| Schedule of estimated fair value of debt instruments |
he fair value of debt, shown below, is based primarily on reported market values, recently completed market transactions and estimates based on interest rates, maturities, credit risk and underlying collateral. Long-term debt is principally classified as Level 2 within the fair value hierarchy. | | | | | | | | | December 31, | (in millions) | 2015 | 2014 | Total debt at par value | $ | 8,098 |
| $ | 9,469 |
| Unamortized discount and debt issue cost, net | (152 | ) | (206 | ) | Net carrying amount | $ | 7,946 |
| $ | 9,263 |
| Fair value | $ | 8,400 |
| $ | 9,800 |
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