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Financial Derivative Instruments (Tables)
12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions The following table provides information about the Company’s volume of fuel hedging on an economic basis:
Maximum fuel hedged as of
December 31, 2021Derivative underlying commodity type as of
Period (by year)(gallons in millions) (a)December 31, 2021
20221,220 WTI crude oil and Brent crude oil
2023769 WTI crude oil and Brent crude oil
2024358 WTI crude oil
(a) Due to the types of derivatives utilized by the Company and different price levels of those contracts, these volumes represent the maximum economic hedge in place and may vary significantly as market prices and the Company's flight schedule fluctuate.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value The following table presents the location of all assets and liabilities associated with the Company’s derivative instruments within the Consolidated Balance Sheet:
  Asset derivativesLiability derivatives
 Balance SheetFair value atFair value atFair value atFair value at
(in millions)location12/31/202112/31/202012/31/202112/31/2020
Derivatives designated as hedges (a)    
Fuel derivative contracts (gross)Prepaid expenses and other current assets$409 $$— $— 
Fuel derivative contracts (gross)Other assets287 121 — — 
Interest rate derivative contractsOther noncurrent liabilities— — 
Total derivatives designated as hedges$696 $130 $$
Derivatives not designated as hedges (a)     
Fuel derivative contracts (gross)Prepaid expenses and other current assets$— $$— $— 
Total derivatives $696 $134 $$
(a) Represents the position of each trade before consideration of offsetting positions with each counterparty and does not include the impact of cash collateral deposits provided to or received from counterparties. See discussion of credit risk and collateral following in this Note.
Offsetting Assets
In addition, the Company had the following amounts associated with fuel derivative instruments and hedging activities in its Consolidated Balance Sheet:
 Balance SheetDecember 31,December 31,
(in millions)location20212020
Cash collateral deposits held from counterparties for fuel contracts - currentOffset against Prepaid expenses and other current assets$80 $
Cash collateral deposits held from counterparties for fuel contracts - noncurrentOffset against Other assets95 31 
Receivable from third parties for fuel contractsAccounts and other receivables— 
The Company has the following recognized financial assets and financial liabilities resulting from those transactions that meet the scope of the disclosure requirements as necessitated by applicable accounting guidance for balance sheet offsetting:
Offsetting of derivative assets
(in millions)
(i)(ii)(iii) = (i) + (ii)(i)(ii)(iii) = (i) + (ii)
December 31, 2021December 31, 2020
DescriptionBalance Sheet locationGross amounts of recognized assetsGross amounts offset in the Balance SheetNet amounts of assets presented in the Balance SheetGross amounts of recognized assetsGross amounts offset in the Balance SheetNet amounts of assets presented in the Balance Sheet
Fuel derivative contractsPrepaid expenses and other current assets$409 $(80)$329 $13 $(3)$10 
Fuel derivative contractsOther assets$287 $(95)$192 (a)$121 $(31)$90 (a)
(a) The net amounts of derivative assets and liabilities are reconciled to the individual line item amounts presented in the Consolidated Balance Sheet in Note 16.
Offsetting Liabilities
Offsetting of derivative liabilities
(in millions)
(i)(ii)(iii) = (i) + (ii)(i)(ii)(iii) = (i) + (ii)
December 31, 2021December 31, 2020
DescriptionBalance Sheet locationGross amounts of recognized liabilitiesGross amounts offset in the Balance SheetNet amounts of liabilities presented in the Balance SheetGross amounts of recognized liabilitiesGross amounts offset in the Balance SheetNet amounts of liabilities presented in the Balance Sheet
Fuel derivative contractsPrepaid expenses and other current assets$80 $(80)$— $$(3)$— 
Fuel derivative contractsOther assets$95 $(95)$— (a)$31 $(31)$— (a)
Interest rate derivative contractsOther noncurrent liabilities$$— $$$— $

(a) The net amounts of derivative assets and liabilities are reconciled to the individual line item amounts presented in the Consolidated Balance Sheet in Note 16.
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following tables present the impact of derivative instruments and their location within the Consolidated Statement of Income (Loss) for the years ended December 31, 2021 and 2020:
Location and amount recognized in income on cash flow and fair value hedging relationships
Year ended December 31, 2021Year ended December 31, 2020
(in millions)Fuel and oilOther (gains)/losses, netOther operating expensesFuel and oilOther (gains)/losses, netInterest expense
Total$$$$70 $39 $
Loss on cash flow hedging relationships
Commodity contracts:
Amount of loss reclassified from AOCI into income— 70 39 — 
Interest contracts:
Amount of loss reclassified from AOCI into income— — — — 
Impact of fair value hedging relationships:
Interest contracts:
Hedged items— — — — — 11 
Derivatives designated as hedging instruments— — — — — (6)

Derivatives designated and qualified in cash flow hedging relationships
 (Gain) Loss recognized in AOCI on derivatives, net of tax
 Year ended
 December 31,
(in millions)2021 2020
Fuel derivative contracts$(461)$80 
Interest rate derivatives(2)26 
Total$(463) $106 
Derivative Instruments, Gain (Loss)
Derivatives not designated as hedges
 (Gain) Loss recognized in income on derivatives 
  
 Year ended
 December 31,Location of (gain) loss recognized in income on derivatives
(in millions)20212020
Fuel derivative contracts$(13)$Other (gains) losses, net
Interest rate derivatives— 28 Other (gains) losses, net
Total$(13)$29 
Premiums Paid for Fuel Derivative Contracts The following table presents the impact
of premiums paid for fuel derivative contracts and their location within the Consolidated Statement of Income (Loss) during the period the contract settles:


 Premium expense recognized in income on derivatives  
  
 Year ended December 31,Location of premium expense recognized in income on derivatives
 
(in millions)202120202019
Fuel derivative contracts designated as hedges$57 $64 $95 Fuel and oil
Fuel derivative contracts not designated as hedges$43 $34 $— Other (gains) losses, net
Fair Values of Fuel Derivatives, Amounts Posted as Collateral, and Collateral Posting Threshold Amounts
The following table provides the fair values of fuel derivatives, amounts posted as collateral, and applicable collateral posting threshold amounts as of December 31, 2021, at which such postings are triggered:
 Counterparty (CP) 
(in millions)ABCDEFGOther (a)Total
Fair value of fuel derivatives$160 $90 $162 $78 $77 $55 $59 $15 $696 
Cash collateral held from CP175 — — — — — — — 175 
Letters of credit (LC)— — — — — — — — 
Option to substitute LC for cashN/AN/A
(b)
(b)
(b)
N/A(b)  
If credit rating is investment
grade, fair value of fuel
derivative level at which:
      
Cash is provided to CP
>(100)
>(50)
>(75)
>(125)
>(40)
>(65)
>(100)
  
Cash is received from CP
>0(c)
>150(c)
>250(c)
>125(c)
>100(c)
>70(c)
>100(c)
  
If credit rating is non-investment
grade, fair value of fuel derivative
level at which:
      
Cash is received from CP
 (d)
 (d)
 (d)
 (d)
 (d)
 (d)
(d)
  

(a) Individual counterparties with fair value of fuel derivatives <$10 million.
(b) The Company has the option to substitute letters of credit for 100 percent of cash collateral requirement.
(c) Thresholds may vary based on changes in credit ratings within investment grade.
(d) Cash collateral is provided at 100 percent of fair value of fuel derivative contracts.