XML 38 R20.htm IDEA: XBRL DOCUMENT v3.7.0.1
Derivatives and Risk Management (Tables)
 6 Months Ended
Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of hedge positions Hedge Position as of June 30, 2017
(in millions)
Volume
Final Maturity Date
Prepaid Expenses and Other
Other Noncurrent Assets
Other Accrued Liabilities
Other Noncurrent Liabilities
Hedge Derivatives, net
Designated as hedges
 
 
 
 
 
 
 
 
Interest rate contract (fair value hedge)
332

U.S. dollars
August 2022
$
—

$
1

$
(5
)
$
—

$
(4
)
Foreign currency exchange contracts
44,493

Japanese yen
November 2019
11

—

(12
)
(6
)
(7
)
532

Canadian dollars
April 2020
Not designated as hedges
 
 
 
 
 
 
 
 
Fuel hedge contracts (1)
231

gallons - crude oil, diesel and jet fuel
December 2018
152

—

(355
)
—

(203
)
Total derivative contracts
 
 
$
163

$
1

$
(372
)
$
(6
)
$
(214
)
(1) 
As discussed above, during 2016, we entered into fuel hedges designed to offset and effectively neutralize our 2017 airline segment hedge positions. The dollar amounts shown above primarily represent the offsetting derivatives that were used to neutralize the 2017 airline segment hedge portfolio.

Hedge Position as of December 31, 2016
(in millions)
Volume
Final Maturity Date
Prepaid Expenses and Other
Other Noncurrent Assets
Other Accrued Liabilities
Other Noncurrent Liabilities
Hedge Derivatives, net
Designated as hedges
 
 
 
 
 
 
 
 
Interest rate contract (fair value hedge)
349

U.S. dollars
August 2022
$
2

$
4

$
—

$
—

$
6

Foreign currency exchange contracts
54,853

Japanese yen
February 2019
31

3

(4
)
(3
)
27

335

Canadian dollars
January 2019
Not designated as hedges
 
 
 
 
 
 
 
 
Fuel hedge contracts (1)
197

gallons - crude oil, diesel and jet fuel
January 2018
360

—

(684
)
—

(324
)
Total derivative contracts
 
 
$
393

$
7

$
(688
)
$
(3
)
$
(291
)
(1) 
As discussed above, we early settled $455 million of our airline segment's 2016 fuel hedge positions and entered into hedges designed to offset and effectively neutralize our 2017 airline segment hedge positions. The dollar amounts shown above primarily represent the offsetting derivatives that were used to neutralize the 2016 and 2017 airline segment hedge portfolio.

Offsetting Assets and Liabilities

We have master netting arrangements with our counterparties giving us the right to offset hedge assets and liabilities. However, we have elected not to offset the fair value positions recorded on our Consolidated Balance Sheets. The following table shows the net fair value positions by counterparty had we elected to offset.
(in millions)
Prepaid Expenses and Other
Other Noncurrent Assets
Other Accrued Liabilities
Other Noncurrent Liabilities
Hedge Derivatives, net
June 30, 2017
 
 
 
 
 
Net derivative contracts
$
7

$
1

$
(216
)
$
(6
)
$
(214
)
December 31, 2016
 
 
 
 
 
Net derivative contracts
$
31

$
6

$
(326
)
$
(2
)
$
(291
)
Schedule of designated hedge gains (losses) Gains (losses) related to our foreign currency exchange contracts are as follows:
 
Effective Portion Reclassified from AOCI to Earnings
 
Effective Portion Recognized in Other Comprehensive Income
(in millions)
2017
2016
 
2017
2016
Three Months Ended June 30,
 
 
 
 
 
Foreign currency exchange contracts
$
4

$
12

 
$
(8
)
$
(63
)
Six Months Ended June 30,
 
 
 
 
 
Foreign currency exchange contracts
$
11

$
36

 
$
(33
)
$
(145
)