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Segments
 9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segments SEGMENTS

Refinery Operations

Our refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. 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 and nine months ended September 30, 2017 was $910 million and $2.4 billion, respectively, compared to $734 million and $2.0 billion during the three and nine months ended September 30, 2016.
Segment Reporting

Segment results are prepared based on our internal accounting methods described below, with reconciliations to consolidated amounts in accordance with GAAP. Our segments are not designed to measure operating income or loss directly related to the products and services included in each segment on a stand-alone basis.
(in millions)
Airline
Refinery
 
Intersegment Sales/Other
 
Consolidated
Three Months Ended September 30, 2017
 
 
 
 
 
 
Operating revenue:
$
10,931

$
1,357

 
 
 
$
11,060

Sales to airline segment
 
 
 
$
(239
)
(1) 
 
Exchanged products
 
 
 
(910
)
(2) 
 
Sales of refined products
 
 
 
(79
)
(3) 
 
Operating income
1,802

37

 
—

 
1,839

Interest expense, net
100

—

 
—

 
100

Depreciation and amortization
563

11

 
—

 
574

Total assets, end of period
49,992

1,936

 
—

 
51,928

Capital expenditures
901

40

 
—

 
941

 
 
 
 
 
 
 
Three Months Ended September 30, 2016
 
 
 
 
 
 
Operating revenue:
$
10,473

$
971

 
 
 
$
10,483

Sales to airline segment
 
 
 
$
(173
)
(1) 
 
Exchanged products
 
 
 
(734
)
(2) 
 
Sales of refined products
 
 
 
(54
)
(3) 
 
Operating income (loss)
2,014

(45
)
 
—

 
1,969

Interest expense, net
94

1

 
—

 
95

Depreciation and amortization
464

10

 
—

 
474

Total assets, end of period
49,748

1,200

 
—

 
50,948

Capital expenditures
652

28

 
—

 
680

 
(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 exchange agreements, as discussed above, determined on a market price basis.
(3) 
These sales were at or near cost; accordingly, the margin on these sales is de minimis.


(in millions)
Airline
Refinery
 
Intersegment Sales/Other
 
Consolidated
Nine Months Ended September 30, 2017
 
 
 
 
 
 
Operating revenue:
$
30,742

$
3,624

 
 
 
$
30,999

Sales to airline segment
 
 
 
$
(622
)
(1) 
 
Exchanged products
 
 
 
(2,399
)
(2) 
 
Sales of refined products
 
 
 
(346
)
(3) 
 
Operating income
4,834

87

 
—

 
4,920

Interest expense, net
297

—

 
—

 
297

Depreciation and amortization
1,617

32

 
—

 
1,649

Capital expenditures
2,605

126

 
—

 
2,731

 
 
 
 
 
 
 
Nine Months Ended September 30, 2016
 
 
 
 
 
 
Operating revenue:
$
30,043

$
2,763

 
 
 
$
30,181

Sales to airline segment
 
 
 
$
(495
)
(1) 
 
Exchanged products
 
 
 
(2,005
)
(2) 
 
Sales of refined products
 
 
 
(125
)
(3) 
 
Operating income (loss)(4)
6,015

(83
)
 
—

 
5,932

Interest expense, net
293

2

 
—

 
295

Depreciation and amortization
1,402

28

 
—

 
1,430

Capital expenditures
2,536

61

 
—

 
2,597

(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 exchange agreements, as discussed above, determined on a market price basis.
(3) 
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 and refinery segments with respect to the refinery's inventory price risk.