Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

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 March 31, 2023, and December 31, 2022:

			Fair value measurements at reporting date using:
			Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
Description	March 31, 2023		(Level 1)		(Level 2)		(Level 3)
Assets	(in millions)
Cash equivalents:
Cash equivalents (a)	$	7,497	$	7,497	$	—	$	—
Commercial paper	224		—		224		—
Certificates of deposit	13		—		13		—
Time deposits	625		—		625		—
Short-term investments:
Treasury bills	3,116		3,116		—		—
Certificates of deposit	150		—		150		—
Time deposits	49		—		49		—
Fuel derivatives:
Option contracts (b)	395		—		—		395
Interest rate derivatives (see Note 3)	13		—		13		—
Equity Securities	236		236		—		—
Total assets	$	12,318	$	10,849	$	1,074	$	395

(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 3.

			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, 2022		(Level 1)		(Level 2)		(Level 3)
Assets	(in millions)
Cash equivalents:
Cash equivalents (a)	$	9,040	$	9,040	$	—	$	—
Commercial paper	179		—		179		—
Certificates of deposit	23		—		23		—
Time deposits	250		—		250		—
Short-term investments:
Treasury bills	2,226		2,226		—		—
Certificates of deposit	124		—		124		—
Time deposits	450		—		450		—
Fuel derivatives:
Option contracts (b)	512		—		—		512
Interest rate derivatives (see Note 3)	14		—		14		—
Equity Securities	235		235		—		—
Total assets	$	13,053	$	11,501	$	1,040	$	512

(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 3.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents the Company’s activity for items measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2023:

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)	Fuel derivatives
Balance at December 31, 2022	$	512
Total gains (losses) for the period
Included in other comprehensive income	(163)
Purchases	104		(a)
Settlements	(58)
Balance at March 31, 2023	$	395
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 March 31, 2023	$	(145)

(a) 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 March 31, 2023:

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	Second quarter 2023	26-42%	35	%
			Third quarter 2023	32-43%	38	%
			Fourth quarter 2023	34-42%	38	%
			2024	31-42%	33	%
			2025	30-31%	30	%

(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 March 31, 2023, 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
1.25% Convertible Notes due 2025	1,611	1,831	Level 2
5.25% Notes due 2025	1,302	1,308	Level 2
3.00% Notes due 2026	300	281	Level 2
3.45% Notes due 2027	300	281	Level 2
5.125% Notes due 2027	1,727	1,727	Level 2
7.375% Debentures due 2027	113	121	Level 2
2.625% Notes due 2030	500	427	Level 2
1.000% PSP1 Loan due 2030	976	866	Level 3
1.000% PSP2 Loan due 2031	566	487	Level 3
1.000% PSP3 Loan due 2031	526	448	Level 3