Segments

6 Months Ended

Jun. 30, 2020

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 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 six months ended June 30, 2020 was $65 million and $895 million, respectively, compared to $1.1 billion and $1.8 billion, respectively for the three and six months ended June 30, 2019.

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 June 30, 2020
Operating revenue:	$	1,176	$	513				$	1,468
Sales to airline segment					$	(3)	(1)
Exchanged products					(65)		(2)
Sales of refined products					(153)		(3)
Operating loss	(4,701)		(114)		—			(4,815)
Interest expense (income), net	196		(2)		—			194
Depreciation and amortization	591		25		(25)		(4)	591
Restructuring charges	2,454		—		—			2,454
Total assets, end of period	70,707		1,554		—			72,261
Capital expenditures	281		1		—			282
Three Months Ended June 30, 2019
Operating revenue:	$	12,496	$	1,501				$	12,536
Sales to airline segment					$	(307)	(1)
Exchanged products					(1,078)		(2)
Sales of refined products					(76)		(3)
Operating income	2,091		37		—			2,128
Interest expense (income), net	84		(9)		—			75
Depreciation and amortization	713		25		(25)		(4)	713
Total assets, end of period	60,685		1,833		—			62,518
Capital expenditures	1,552		8		—			1,560

⁽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⁾Refinery segment operating results, including depreciation and amortization, are included within aircraft fuel and related taxes in our income statement.

(in millions)	Airline		Refinery		Intersegment Sales/Other			Consolidated
Six Months Ended June 30, 2020
Operating revenue:	$	9,768	$	1,697				$	10,060
Sales to airline segment					$	(214)	(1)
Exchanged products					(895)		(2)
Sales of refined products					(296)		(3)
Operating loss	(5,140)		(85)		—			(5,225)
Interest expense (income), net	277		(4)		—			273
Depreciation and amortization	1,268		49		(49)		(4)	1,268
Restructuring charges	2,454		—		—			2,454
Capital expenditures	1,206		12		—			1,218
Six Months Ended June 30, 2019
Operating revenue:	$	22,920	$	2,785				$	23,008
Sales to airline segment					$	(578)	(1)
Exchanged products					(1,811)		(2)
Sales of refined products					(308)		(3)
Operating income	3,145		3		—			3,148
Interest expense (income), net	177		(19)		—			158
Depreciation and amortization	1,328		48		(48)		(4)	1,328
Capital expenditures	2,902		18		—			2,920

⁽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⁾Refinery segment operating results, including depreciation and amortization, are included within aircraft fuel and related taxes in our income statement.