XML 19 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
COMPREHENSIVE INCOME
 9 Months Ended
Sep. 30, 2018
Equity [Abstract]  
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME

Comprehensive income includes changes in the fair value of certain financial derivative instruments that qualify for hedge accounting, unrealized gains and losses on certain investments, and actuarial gains/losses arising from the Company’s postretirement benefit obligation. The differences between Net income and Comprehensive income for the three and nine months ended September 30, 2018 and 2017 were as follows:

 
Three months ended September 30,
(in millions)
2018
 
2017
NET INCOME
$
615

 
$
528

Unrealized gain on fuel derivative instruments, net of
  deferred taxes of $32 and $73
107

 
123

Unrealized gain on interest rate derivative instruments, net of
  deferred taxes of $- and $-
1

 
2

Other, net of deferred taxes of $1 and $2
6

 
2

Total other comprehensive income
$
114

 
$
127

COMPREHENSIVE INCOME
$
729

 
$
655


 
Nine months ended September 30,
(in millions)
2018
 
2017
NET INCOME
$
1,811

 
$
1,610

Unrealized gain on fuel derivative instruments, net of
  deferred taxes of $123 and $105
404

 
178

Unrealized gain on interest rate derivative instruments, net of
  deferred taxes of $1 and $2
5

 
5

Other, net of deferred taxes of $1 and $2
9

 
4

Total other comprehensive income
$
418

 
$
187

COMPREHENSIVE INCOME
$
2,229

 
$
1,797



A rollforward of the amounts included in AOCI is shown below for the three and nine months ended September 30, 2018:
(in millions)
Fuel derivatives
 
Interest rate derivatives
 
Defined benefit plan items
 
Other
 
Deferred tax
 
Accumulated other
comprehensive income (loss)
Balance at June 30, 2018
$
365

 
$
(2
)
 
$
(9
)
 
$
36

 
$
(92
)
 
$
298

Changes in fair value
159

 
—

 
—

 
7

 
(38
)
 
128

Reclassification to earnings
(20
)
 
1

 
—

 
—

 
5

 
(14
)
Balance at September 30, 2018
$
504

 
$
(1
)
 
$
(9
)
 
$
43

 
$
(125
)
 
$
412


(in millions)
Fuel derivatives
 
Interest rate derivatives
 
Defined benefit plan items
 
Other
 
Deferred tax
 
Accumulated other
comprehensive income (loss)
Balance at December 31, 2017
$
3

 
$
(7
)
 
$
(9
)
 
$
33

 
$
(8
)
 
$
12

ASU 2017-12 adoption adjustment (a)
(26
)
 
—

 
—

 
—

 
6

 
(20
)
ASU 2018-02 stranded AOCI adoption adjustment (b)
—

 
—

 
—

 
—

 
2

 
2

Changes in fair value
559

 
2

 
—

 
10

 
(132
)
 
439

Reclassification to earnings
(32
)
 
4

 
—

 
—

 
7

 
(21
)
Balance at September 30, 2018
$
504

 
$
(1
)
 
$
(9
)
 
$
43

 
$
(125
)
 
$
412


(a) The Company adopted the New Hedging Standard as of January 1, 2018. See Note 2 for further information on this adoption.
(b) The Company adopted the Reclassification of Certain Tax Effects from AOCI as of January 1, 2018, which allowed the Company to reclassify to Retained earnings any tax effects stranded in AOCI as a result of the Tax Cuts and Jobs Act enacted in December 2017.

The following tables illustrate the significant amounts reclassified out of each component of AOCI for the three and nine months ended September 30, 2018:

Three months ended September 30, 2018
(in millions)
 
Amounts reclassified from AOCI
 
Affected line item in the unaudited Condensed Consolidated Statement of
Comprehensive Income
AOCI components
 
 
Unrealized gain on fuel derivative instruments
 
$
(20
)
 
Fuel and oil expense
 
 
(5
)
 
Less: Tax expense
 
 
$
(15
)
 
Net of tax
Unrealized loss on interest rate derivative instruments
 
$
1

 
Interest expense
 
 
—

 
Less: Tax expense
 
 
$
1

 
Net of tax
 
 
 
 
 
Total reclassifications for the period
 
$
(14
)
 
Net of tax

Nine months ended September 30, 2018
(in millions)
 
Amounts reclassified from AOCI
 
Affected line item in the unaudited Condensed Consolidated Statement of
Comprehensive Income
AOCI components
 
 
Unrealized gain on fuel derivative instruments
 
$
(32
)
 
Fuel and oil expense
 
 
(8
)
 
Less: Tax Expense
 
 
$
(24
)
 
Net of tax
Unrealized loss on interest rate derivative instruments
 
$
4

 
Interest expense
 
 
1

 
Less: Tax Expense
 
 
$
3

 
Net of tax
 
 
 
 
 
Total reclassifications for the period
 
$
(21
)
 
Net of tax