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Derivatives and Risk Management (Tables)
 3 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of hedge positions Hedge Position as of March 31, 2019
(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 contracts (fair value hedges)
1,883

U.S. dollars
April 2028
$
1

$
28

$
(2
)
$
(3
)
$
24

Foreign currency exchange contracts
4,328

Japanese yen
November 2019
1

—

—

—

1

Not designated as hedges
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
397

Euros
December 2020
10

—

—

(3
)
7

Fuel hedge contracts
195

gallons - crude oil and refined products
December 2019
51

—

(44
)
—

7

Total derivative contracts
 
 
$
63

$
28

$
(46
)
$
(6
)
$
39


Hedge Position as of December 31, 2018
(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 contracts (fair value hedges)
1,893

U.S. dollars
April 2028
$
—

$
8

$
(7
)
$
—

$
1

Foreign currency exchange contracts
6,934

Japanese yen
November 2019
1

—

—

—

1

Not designated as hedges
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
397

Euros
December 2020
13

—

—

(17
)
(4
)
Fuel hedge contracts
219

gallons - crude oil and refined products
December 2019
30

—

(15
)
—

15

Total derivative contracts
 
 
$
44

$
8

$
(22
)
$
(17
)
$
13


Balance Sheet Location of Hedged Item in Fair Value Hedges
 
Carrying Amount of Hedge Instruments
 
Cumulative Amount of Fair Value Hedge Adjustments
(in millions)
March 31, 2019
December 31, 2018
 
March 31, 2019
December 31, 2018
Current maturities of long-term debt and finance leases
$
(16
)
$
(11
)
 
$
1

$
7

Long-term debt and finance leases
$
(1,878
)
$
(1,870
)
 
$
(25
)
$
(8
)


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 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
March 31, 2019
 
 
 
 
 
Net derivative contracts
$
21

$
28

$
(5
)
$
(5
)
$
39

December 31, 2018
 
 
 
 
 
Net derivative contracts
$
35

$
—

$
(13
)
$
(9
)
$
13
Schedule of balance sheet location of hedged item in Fair Value Hedges Balance Sheet Location of Hedged Item in Fair Value Hedges
 
Carrying Amount of Hedge Instruments
 
Cumulative Amount of Fair Value Hedge Adjustments
(in millions)
March 31, 2019
December 31, 2018
 
March 31, 2019
December 31, 2018
Current maturities of long-term debt and finance leases
$
(16
)
$
(11
)
 
$
1

$
7

Long-term debt and finance leases
$
(1,878
)
$
(1,870
)
 
$
(25
)
$
(8
)
Schedule of designated hedge gains (losses) Designated Hedge Gains (Losses)

Gains (losses) related to our foreign currency exchange contracts are as follows:
 
Gains/(Losses) Reclassified from AOCI to Earnings(1)
 
Gains/(Losses) Recognized in Other Comprehensive Income
(in millions)
2019
2018
 
2019
2018
Three Months Ended March 31,
 
 
 
 
 
Foreign currency exchange contracts
$
—

$
(4
)
 
$
1

$
1



(1) 
Earnings on our foreign currency exchange contracts are recorded in passenger revenue in the income statement.

Not Designated Hedge Gains (Losses)

Gains (losses) related to our cross currency swap and fuel contracts are as follows:
 
 
Location of Gain (Loss) Recognized in Income
 
Amount of Gain (Loss) Recognized in Income
(in millions)
 
 
 
2019
2018
Three Months Ended March 31,
 
 
 
 
 
Foreign currency exchange contracts
 
Unrealized gain on investments, net
 
$
11

$
(16
)
Fuel hedge contracts
 
Aircraft fuel and related taxes
 
(54
)
2

Total
 
 
 
$
(43
)
$
(14
)