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Segments and Geographic Information
 12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segments and Geographic Information SEGMENTS AND GEOGRAPHIC INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker and is used in resource allocation and performance assessments. Our chief operating decision maker is considered to be our executive leadership team. Our executive leadership team regularly reviews discrete information for our two operating segments, which are determined by the products and services provided: our airline segment and our refinery segment.
Airline Segment

Our airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the U.S. and around the world and other ancillary airline services. This allows us to benefit from an integrated revenue pricing and route network. Our flight equipment forms one fleet, which is deployed through a single route scheduling system. When making resource allocation decisions, our chief operating decision maker evaluates flight profitability data, which considers aircraft type and route economics, but gives no weight to the financial impact of the resource allocation decision on an individual carrier basis. Our objective in making resource allocation decisions is to optimize our consolidated financial results.

Refinery Segment

In 2012, our wholly owned subsidiaries, Monroe Energy, LLC, and MIPC, LLC (collectively, "Monroe"), acquired the Trainer oil refinery and related assets located near Philadelphia, Pennsylvania, as part of our strategy to mitigate the cost of the refining margin reflected in the price of jet fuel. The acquisition included pipelines and terminal assets that allow the refinery to supply jet fuel to our airline operations throughout the Northeastern U.S., including our New York hubs at LaGuardia and JFK.

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 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 years ended December 31, 2018, 2017 and 2016 was $3.6 billion, $3.2 billion and $2.7 billion, respectively.

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
Year Ended December 31, 2018
 
 
 
 
 
 
Operating revenue:
$
43,890

$
5,458

 
 
 
$
44,438

Sales to airline segment
 
 
 
$
(962
)
(1) 
 
Exchanged products
 
 
 
(3,596
)
(2) 
 
Sales of refined products
 
 
 
(352
)
(3) 
 
Operating income
5,206

58

 
 
 
5,264

Interest expense (income), net
334

(23
)
 
 
 
311

Depreciation and amortization
2,262

67

 
 
 
2,329

Total assets, end of period
58,561

1,705

 
 
 
60,266

Capital expenditures
5,005

163

 
 
 
5,168

Year Ended December 31, 2017
 
 
 
 
 
 
Operating revenue:
$
40,636

$
5,039

 
 
 
$
41,138

Sales to airline segment
 
 
 
$
(886
)
(1) 
 
Exchanged products
 
 
 
(3,240
)
(2) 
 
Sales of refined products
 
 
 
(411
)
(3) 
 
Operating income
5,856

110

 
 
 
5,966

Interest expense (income), net
403

(7
)
 
 
 
396

Depreciation and amortization
2,175

47

 
 
 
2,222

Total assets, end of period
51,544

2,127

 
 
 
53,671

Capital expenditures
3,743

148

 
 
 
3,891

Year Ended December 31, 2016
 
 
 
 
 
 
Operating revenue:
$
39,217

$
3,843

 
 
 
$
39,450

Sales to airline segment
 
 
 
$
(695
)
(1) 
 
Exchanged products
 
 
 
(2,658
)
(2) 
 
Sales of refined products
 
 
 
(257
)
(3) 
 
Operating income (loss)(4)
7,121

(125
)
 
 
 
6,996

Interest expense, net
386

2

 
 
 
388

Depreciation and amortization
1,846

40

 
 
 
1,886

Total assets, end of period
50,519

1,331

 
 
 
51,850

Capital expenditures
3,270

121

 
 
 
3,391


(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.

Geographic Information

See Note 2, "Revenue Recognition," for information on revenues by geographic region.

Our tangible assets consist primarily of flight equipment, which is mobile across geographic markets. Accordingly, assets are not allocated to specific geographic regions.