Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

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 September 30, 2022, and December 31, 2021:

			Fair value measurements at reporting date using:
			Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
Description	September 30, 2022		(Level 1)		(Level 2)		(Level 3)
Assets	(in millions)
Cash equivalents:
Cash equivalents (a)	$	10,088	$	10,088	$	—	$	—
Commercial paper	315		—		315		—
Certificates of deposit	15		—		15		—
Time deposits	25		—		25		—
Short-term investments:
Treasury bills	2,424		2,424		—		—
Certificates of deposit	131		—		131		—
Time deposits	675		—		675		—
Fuel derivatives:
Option contracts (b)	565		—		—		565
Interest rate derivatives (see Note 4)	14		—		14		—
Equity Securities	216		216		—		—
Total assets	$	14,468	$	12,728	$	1,175	$	565
Liabilities
Fuel derivatives:
Option contracts (b)	$	(29)	$	—	$	—	$	(29)

(a) Cash equivalents are primarily composed of money market investments.

(b) In the unaudited Condensed Consolidated Balance Sheet amounts are presented as a net asset. See Note 4.

			Fair value measurements at reporting date using:
			Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
Description	December 31, 2021		(Level 1)		(Level 2)		(Level 3)
Assets	(in millions)
Cash equivalents:
Cash equivalents (a)	$	12,340	$	12,340	$	—	$	—
Commercial paper	90		—		90		—
Time deposits	50		—		50		—
Short-term investments:
Treasury bills	2,399		2,399		—		—
Time deposits	625		—		625		—
Fuel derivatives:
Option contracts (b)	696		—		—		696
Equity Securities	288		288		—		—
Total assets	$	16,488	$	15,027	$	765	$	696
Liabilities
Interest rate derivatives (see Note 4)	$	(4)	$	—	$	(4)	$	—

(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 nine months ended September 30, 2022:

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)	Fuel derivatives
Balance at June 30, 2022	$	1,127
Total gains (losses) for the period
Included in earnings	38		(a)
Included in other comprehensive income	(462)
Purchases	52		(b)
Settlements	(219)
Balance at September 30, 2022	$	536
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 September 30, 2022	$	21	(a)
The amount of total losses for the period   included in other comprehensive income attributable to the   change in unrealized gains or losses relating   to assets still held at September 30, 2022	$	(395)

(a) Included in Other (gains) losses, net, within the unaudited Condensed Consolidated Statement of Comprehensive Income.

(b) The purchase of fuel derivatives is recorded gross based on the structure of the derivative instrument and whether a contract with multiple derivatives was purchased as a single instrument or separate instruments.

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)	Fuel derivatives
Balance at December 31, 2021	$	696
Total gains for the period
Included in earnings	23		(a)
Included in other comprehensive income	571
Purchases	25		(b)
Settlements	(779)
Balance at September 30, 2022	$	536
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 September 30, 2022	$	11	(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 September 30, 2022	$	94

(a) Included in Other (gains) losses, net, within the unaudited Condensed Consolidated Statement of Comprehensive Income.

(b) The purchase of fuel derivatives is recorded gross based on the structure of the derivative instrument and whether a contract with multiple derivatives was purchased as a single instrument or separate instruments.

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 September 30, 2022:

Quantitative information about Level 3 fair value measurements
	Valuation technique	Unobservable input	Period (by year)	Range	Weighted Average (a)
Fuel derivatives	Option model	Implied volatility	Fourth quarter 2022	33-59%	47	%
			2023	42-56%	50	%
			2024	36-48%	41	%

(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 September 30, 2022, 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 value		Estimated fair value		Fair value level hierarchy
2.75% Notes due November 2022	$	300	$	300	Level 2
1.25% Convertible Notes due 2025	1,611		1,851		Level 2
5.25% Notes due 2025	1,332		1,334		Level 2
3.00% Notes due 2026	300		275		Level 2
3.45% Notes due 2027	300		271		Level 2
5.125% Notes due 2027	1,801		1,766		Level 2
7.375% Debentures due 2027	114		120		Level 2
2.625% Notes due 2030	500		403		Level 2
1.000% PSP1 due 2030	976		829		Level 3
1.000% PSP2 due 2031	566		463		Level 3
1.000% PSP3 due 2031	526		422		Level 3