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Segments
 9 Months Ended
Sep. 30, 2021
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 nine months ended September 30, 2021 was $629 million and $1.7 billion, respectively, compared to $249 million and $1.1 billion for the three and nine months ended September 30, 2020, 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.

Financial information by segment
(in millions)AirlineRefineryIntersegment Sales/OtherConsolidated
Three Months Ended September 30, 2021
Operating revenue:$8,282 $1,696 $9,154 
Sales to airline segment$(183)
(1)
Exchanged products(629)
(2)
Sales of refined products(12)
(3)
Operating income2,108 97 — 2,205 
Interest expense, net312 2 — 314 
Depreciation and amortization501 24 (24)
(4)
501 
Restructuring charges 33 — — 33 
Total assets, end of period70,771 2,012 — 72,783 
Net fair value obligations, end of period(5)
— (547)— (547)
Capital expenditures818 12 — 830 
Three Months Ended September 30, 2020
Operating revenue:$2,645 $669 $3,062 
Sales to airline segment$— 
(1)
Exchanged products(249)
(2)
Sales of refined products(3)
(3)
Operating loss(6,358)(28)— (6,386)
Interest expense, net288 3 — 291 
Depreciation and amortization545 25 (25)
(4)
545 
Restructuring charges5,345 — — 5,345 
Total assets, end of period77,558 1,518 — 79,076 
Net fair value obligations, end of period(5)
— (68)— (68)
Capital expenditures130 3 — 133 
(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.
(5)The fair values of these obligations, which are related to renewable fuel compliance costs, are based on quoted market prices and other observable information and are classified as Level 2 in the fair value hierarchy. At September 30, 2021 we had a gross fair value obligation of $625 million and related assets of $78 million. At September 30, 2020 we had a gross fair value obligation of $80 million and related assets of $12 million. We expect to use the assets in settling a portion of our obligations.
Financial information by segment
(in millions)AirlineRefineryIntersegment Sales/OtherConsolidated
Nine Months Ended September 30, 2021
Operating revenue:$18,240 $4,177 $20,429 
Sales to airline segment$(292)
(1)
Exchanged products(1,667)
(2)
Sales of refined products(29)
(3)
Operating income (loss)1,809 (186)— 1,623 
Interest expense, net1,009 5 — 1,014 
Depreciation and amortization1,494 72 (72)
(4)
1,494 
Restructuring charges(3)— — (3)
Capital expenditures1,994 35 — 2,029 
Nine Months Ended September 30, 2020
Operating revenue:$12,413 $2,366 $13,122 
Sales to airline segment$(214)
(1)
Exchanged products(1,144)
(2)
Sales of refined products(299)
(3)
Operating loss(11,498)(113)— (11,611)
Interest expense, net564 — — 564 
Depreciation and amortization1,813 74 (74)
(4)
1,813 
Restructuring charges7,798 — — 7,798 
Capital expenditures1,336 15 — 1,351 
(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.