Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2016

Accumulated Other Comprehensive Income (Loss)

NOTE 6 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The tables below present the components of the Company’s accumulated other comprehensive income (loss) (“AOCI”), net of tax (in millions):

								Deferred Taxes
	Pension and Other Postretirement Liabilities			Fuel Derivatives Contracts		Investments and Other		Pension and Other Postretirement Liabilities		Fuel Derivative Contracts			Total
Balance at December 31, 2013	$	699		$	11	$	13	$	(115)	$	—	(c)	$	608
Other comprehensive loss before reclassifications (a)		(1,106)	(b)		(599)		—		—		—			(1,705)
Amounts reclassified from accumulated other comprehensive income (a)		(65)			89		(6)		—		—			18
Net current-period other comprehensive income (loss)		(1,171)			(510)		(6)		—		—			(1,687)
Balance at December 31, 2014	$	(472)		$	(499)	$	7	$	(115)	$	—	(c)	$	(1,079)
Other comprehensive income (loss) before reclassifications		78	(b)		(320)		(4)		(28)		115			(159)
Amounts reclassified from accumulated other comprehensive income		31			604		—		(11)		(217)			407
Net current-period other comprehensive income (loss)		109			284		(4)		(39)		(102)			248
Balance at December 31, 2015	$	(363)		$	(215)	$	3	$	(154)	$	(102)		$	(831)
Other comprehensive income (loss) before reclassifications		(517)	(b)		(4)		—		186		1			(334)
Amounts reclassified from accumulated other comprehensive income		26			217		(1)		(8)		102			336
Net current-period other comprehensive income (loss)		(491)			213		(1)		178		103			2
Balance at December 31, 2016	$	(854)		$	(2)	$	2	$	24	$	1		$	(829)

Details about AOCI Components	Amount Reclassified from AOCI to Income						Affected Line Item in the Statement Where Net Income is Presented
	Year Ended December 31,
	2016		2015		2014
Fuel derivative contracts
Fuel contracts-reclassifications of losses into earnings	$	217	$	604	$	89		Aircraft fuel
Pension and Postretirement liabilities
Amortization of unrecognized (gains) losses and prior service cost and the effect of curtailments and settlements (d)		26		31		(65)		Salaries and related costs
Investments and other
Available-for-sale securities—reclassifications of gains into earnings		(1)		—		(6)		Miscellaneous, net

(a) Income tax expense for these items was offset by the Company’s valuation allowance.

(b) Prior service credits increased by $30 million, $0 million and $3 million and actuarial gains (losses) increased (decreased) by approximately $560 million, $78 million and $(1.1) billion for 2016, 2015 and 2014, respectively.

(c) Deferred tax balance was offset by the Company’s valuation allowance.

(d) This AOCI component is included in the computation of net periodic pension and other postretirement costs (see Note 8 of this report for additional information).

Prior to the release of the deferred income tax valuation allowance in the third quarter of 2015, the Company recorded approximately $465 million of valuation allowance adjustments in AOCI. Subsequent to the release of the deferred income tax valuation allowance in 2015, the $465 million debit remained within AOCI, of which $180 million related to losses on fuel hedges designated for hedge accounting and $285 million related to pension and other postretirement liabilities. Accounting rules required the adjustments to remain in AOCI as long as the Company had fuel derivatives designated for cash flow hedge accounting and the Company continues to provide pension and postretirement benefits. In 2016, we settled all of our fuel hedges and have not entered into any new fuel derivative contracts for hedge accounting. Accordingly, the Company reclassified the $180 million to income tax expense in 2016.