XML 42 R24.htm IDEA: XBRL DOCUMENT v3.21.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2021, and December 31, 2020:
  Fair value measurements at reporting date using:
Quoted prices in active markets for identical assetsSignificant other observable inputsSignificant unobservable inputs
DescriptionJune 30, 2021(Level 1)(Level 2)(Level 3)
Assets(in millions)
Cash equivalents:    
Cash equivalents (a)$13,759 $13,759 $— $— 
Commercial paper90 — 90 — 
Time deposits275 — 275 — 
Short-term investments: 
Treasury bills2,150 2,150 — — 
Certificates of deposit1 — 1 — 
Time deposits600 — 600 — 
Fuel derivatives: 
Option contracts (b)502 — — 502 
Interest rate derivatives (see Note 4)1 — 1 — 
Other available-for-sale securities259 259 — — 
Total assets$17,637 $16,168 $967 $502 
Liabilities    
Interest rate derivatives (see Note 4)$(3)$— $(3)$— 
(a) Cash equivalents are primarily composed of money market investments.
(b) In the unaudited Condensed Consolidated Balance Sheet amounts are presented as an asset. See Note 4.
  Fair value measurements at reporting date using:
Quoted prices in active markets for identical assetsSignificant other observable inputsSignificant unobservable inputs
DescriptionDecember 31, 2020(Level 1)(Level 2)(Level 3)
Assets(in millions)
Cash equivalents:   
Cash equivalents (a)$10,663 $10,663 $— $— 
Commercial paper90 — 90 — 
Certificates of deposit10 — 10 — 
Time deposits300 — 300 — 
Short-term investments:    
Treasury bills1,800 1,800 — — 
Certificates of deposit46 — 46 — 
Time deposits425 — 425 — 
Fuel derivatives:    
Option contracts (b)134 — — 134 
Other available-for-sale securities259 259 — — 
Total assets$13,727 $12,722 $871 $134 
Liabilities    
Interest rate derivatives (see Note 4)$(6)$— $(6)$— 
(a) Cash equivalents are primarily composed of money market investments.
(b) In the unaudited Condensed Consolidated Balance Sheet amounts are presented as an asset. See Note 4.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation The following tables present the Company’s activity for items measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2021:
Fair value measurements using significant unobservable inputs (Level 3)
(in millions)Fuel derivatives
Balance at March 31, 2021$249 
Total gains for the period
Included in earnings12 (a)
Included in other comprehensive income250 
Settlements(9)
Balance at June 30, 2021$502 
The amount of total gains for the period
  included in earnings attributable to the
  change in unrealized gains or losses relating
  to assets still held at June 30, 2021
$12 (a)
The amount of total gains for the period
  included in other comprehensive income attributable to the
  change in unrealized gains or losses relating
  to assets still held at June 30, 2021
$246 
(a) Included in Other (gains) losses, net, within the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss).

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)Fuel derivatives
Balance at December 31, 2020$134 
Total gains for the period
Included in earnings10 (a)
Included in other comprehensive income367 
Settlements(9)
Balance at June 30, 2021$502 
The amount of total gains for the period
  included in earnings attributable to the
  change in unrealized gains or losses relating
  to assets still held at June 30, 2021
$10 (a)
The amount of total gains for the period
  included in other comprehensive income attributable to the
  change in unrealized gains or losses relating
  to assets still held at June 30, 2021
$360 

(a) Included in Other (gains) losses, net, within the unaudited Condensed Consolidated Statement of Comprehensive Income (Loss).
Fair Value Valuation Techniques The following table presents a range and weighted average of the unobservable inputs utilized in the fair value measurements of the Company’s fuel derivatives classified as Level 3 at June 30, 2021:
Quantitative information about Level 3 fair value measurements
 Valuation techniqueUnobservable inputPeriod (by year)RangeWeighted Average (a)
Fuel derivativesOption modelImplied volatilityThird quarter 2021
17-33%
26 %
Fourth quarter 2021
27-33%
29 %
2022
24-37%
30 %
2023
23-28%
25 %
Beyond 2023
23-25%
24 %
(a) Implied volatility weighted by the notional amount (barrels of fuel) that will settle in respective period.
Fair value, by Balance Sheet Grouping
The carrying amounts and estimated fair values of the Company’s short-term and long-term debt (including current maturities), as well as the applicable fair value hierarchy tier, at June 30, 2021, are presented in the table below. The fair values of the Company’s publicly held long-term debt are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, the Company has categorized these agreements as Level 2. All privately held debt agreements are categorized as Level 3. The Company has determined the estimated fair value of this debt to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes indicative pricing from counterparties and a discounted cash flow method to estimate the fair value of the Level 3 items.
(in millions)Carrying valueEstimated fair valueFair value level hierarchy
2.75% Notes due 2022
$300 $308 Level 2
Pass Through Certificates due 2022 - 6.24%
105 108 Level 2
4.75% Notes due 2023
1,250 1,342 Level 2
1.25% Convertible Notes due 2025
1,982 3,494 Level 2
5.25% Notes due 2025
1,550 1,770 Level 2
Term Loan Agreement payable through 2025 - 1.55%
106 106 Level 3
3.00% Notes due 2026
300 321 Level 2
Term Loan Agreement payable through 2026 - 1.31%
149 146 Level 3
3.45% Notes due 2027
300 326 Level 2
5.125% Notes due 2027
2,000 2,355 Level 2
7.375% Debentures due 2027
118 146 Level 2
Term Loan Agreement payable through 2028 - 1.55%
171 171 Level 3
2.625% Notes due 2030
500 513 Level 2
1.000% Payroll Support Program Loan due April 2030
976 956 Level 3
1.000% Payroll Support Program Loan due January 2031
566 542 Level 3
1.000% Payroll Support Program Loan due April 2031
526 500 Level 3
Schedule of Debt The following table details the liability component recognized related to the Convertible Notes as of June 30, 2021, and December 31, 2020:
(in millions)June 30, 2021December 31, 2020
Liability component:
Principal amount$2,300 $2,300 
Unamortized debt discount(318)(355)
Net carrying amount$1,982 $1,945