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Derivatives and Risk Management (Tables)
 9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of hedge positions
Hedge Position as of September 30, 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)
1,872

U.S. dollars
April 2028
$
7

$
75

$
—

$
—

$
82

Not designated as hedges
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
397

Euros
December 2020
9

12

—

—

21

Fuel hedge contracts
14

gallons - crude oil and refined products
July 2020
47

—

(25
)
—

22

Total derivative contracts
 
 
$
63

$
87

$
(25
)
$
—

$
125


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
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)
September 30, 2019
December 31, 2018
 
September 30, 2019
December 31, 2018
Current maturities of long-term debt and finance leases
$
(20
)
$
(11
)
 
$
7

$
7

Long-term debt and finance leases
$
(1,759
)
$
(1,870
)
 
$
75

$
(8
)
Schedule of offsetting assets 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
September 30, 2019
 
 
 
 
 
Net derivative contracts
$
38

$
87

$
—

$
—

$
125

December 31, 2018
 
 
 
 
 
Net derivative contracts
$
35

$
—

$
(13
)
$
(9
)
$
13
Schedule of offsetting liabilities 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
September 30, 2019
 
 
 
 
 
Net derivative contracts
$
38

$
87

$
—

$
—

$
125

December 31, 2018
 
 
 
 
 
Net derivative contracts
$
35

$
—

$
(13
)
$
(9
)
$
13
Schedule of derivative gains (losses)

Designated Hedge Gains (Losses)

Gains (losses) related to our foreign currency exchange contracts designated as hedges are as follows:
 
Gain (Loss) Reclassified from AOCI to Earnings
 
Gain (Loss) Recognized in Other Comprehensive Income
(in millions)
2019
2018
 
2019
2018
Three Months Ended September 30,
 
 
 
 
 
Foreign currency exchange contracts (1)
$
—

$
(1
)
 
$
—

$
4

Nine Months Ended September 30,
 
 
 
 
 
Foreign currency exchange contracts (1)
$
—

$
(4
)
 
$
—

$
4



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


Not Designated Hedge Gains (Losses)

Gains (losses) related to our foreign currency exchange 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 September 30,
 
 
 
 
 
Foreign currency exchange contracts
 
Unrealized gain/(loss) on investments, net
 
$
18

$
(19
)
Fuel hedge contracts
 
Aircraft fuel and related taxes
 
31

7

Total
 
 
 
$
49

$
(12
)
Nine Months Ended September 30,
 
 
 
 
 
Foreign currency exchange contracts
 
Unrealized gain/(loss) on investments, net
 
$
25

$
(12
)
Fuel hedge contracts
 
Aircraft fuel and related taxes
 
(5
)
(85
)
Total
 
 
 
$
20

$
(97
)