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Derivatives and Risk Management (Tables) | 3 Months Ended
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Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of hedge positions | Hedge Position as of March 31, 2019
(in millions) | Volume |  | Final Maturity Date | Prepaid Expenses and Other | Other Noncurrent Assets | Other Accrued Liabilities | Other Noncurrent Liabilities | Hedge Derivatives, net
Designated as hedges |  |  |  |  |  |  |  |
Interest rate contracts (fair value hedges) | 1,883 |  | U.S. dollars | April 2028 | $ | 1 |  | $ | 28 |  | $ | (2 | ) | $ | (3 | ) | $ | 24 |
Foreign currency exchange contracts | 4,328 |  | Japanese yen | November 2019 | 1 |  | — |  | — |  | — |  | 1 |
Not designated as hedges |  |  |  |  |  |  |  |
Foreign currency exchange contracts | 397 |  | Euros | December 2020 | 10 |  | — |  | — |  | (3 | ) | 7 |
Fuel hedge contracts | 195 |  | gallons - crude oil and refined products | December 2019 | 51 |  | — |  | (44 | ) | — |  | 7 |
Total derivative contracts |  |  | $ | 63 |  | $ | 28 |  | $ | (46 | ) | $ | (6 | ) | $ | 39 |
Hedge Position as of December 31, 2018
(in millions) | Volume |  | Final Maturity Date | Prepaid Expenses and Other | Other Noncurrent Assets | Other Accrued Liabilities | Other Noncurrent Liabilities | Hedge Derivatives, net
Designated as hedges |  |  |  |  |  |  |  |
Interest rate contracts (fair value hedges) | 1,893 |  | U.S. dollars | April 2028 | $ | — |  | $ | 8 |  | $ | (7 | ) | $ | — |  | $ | 1 |
Foreign currency exchange contracts | 6,934 |  | Japanese yen | November 2019 | 1 |  | — |  | — |  | — |  | 1 |
Not designated as hedges |  |  |  |  |  |  |  |
Foreign currency exchange contracts | 397 |  | Euros | December 2020 | 13 |  | — |  | — |  | (17 | ) | (4 | )
Fuel hedge contracts | 219 |  | gallons - crude oil and refined products | December 2019 | 30 |  | — |  | (15 | ) | — |  | 15 |
Total derivative contracts |  |  | $ | 44 |  | $ | 8 |  | $ | (22 | ) | $ | (17 | ) | $ | 13 |
Balance Sheet Location of Hedged Item in Fair Value Hedges
| Carrying Amount of Hedge Instruments |  | Cumulative Amount of Fair Value Hedge Adjustments
(in millions) | March 31, 2019 | December 31, 2018 |  | March 31, 2019 | December 31, 2018
Current maturities of long-term debt and finance leases | $ | (16 | ) | $ | (11 | ) |  | $ | 1 |  | $ | 7 |
Long-term debt and finance leases | $ | (1,878 | ) | $ | (1,870 | ) |  | $ | (25 | ) | $ | (8 | )
Offsetting Assets and Liabilities We have master netting arrangements with our counterparties giving us the right to offset hedge assets and liabilities. However, we have elected not to offset the fair value positions recorded on our balance sheets. The following table shows the net fair value positions by counterparty had we elected to offset.
(in millions) | Prepaid Expenses and Other | Other Noncurrent Assets | Other Accrued Liabilities | Other Noncurrent Liabilities | Hedge Derivatives, net
March 31, 2019 |  |  |  |  |
Net derivative contracts | $ | 21 |  | $ | 28 |  | $ | (5 | ) | $ | (5 | ) | $ | 39 |
December 31, 2018 |  |  |  |  |
Net derivative contracts | $ | 35 |  | $ | — |  | $ | (13 | ) | $ | (9 | ) | $ | 13 |
Schedule of balance sheet location of hedged item in Fair Value Hedges | Balance Sheet Location of Hedged Item in Fair Value Hedges
| Carrying Amount of Hedge Instruments |  | Cumulative Amount of Fair Value Hedge Adjustments
(in millions) | March 31, 2019 | December 31, 2018 |  | March 31, 2019 | December 31, 2018
Current maturities of long-term debt and finance leases | $ | (16 | ) | $ | (11 | ) |  | $ | 1 |  | $ | 7 |
Long-term debt and finance leases | $ | (1,878 | ) | $ | (1,870 | ) |  | $ | (25 | ) | $ | (8 | )
Schedule of designated hedge gains (losses) | Designated Hedge Gains (Losses) Gains (losses) related to our foreign currency exchange contracts are as follows:
| Gains/(Losses) Reclassified from AOCI to Earnings(1) |  | Gains/(Losses) Recognized in Other Comprehensive Income
(in millions) | 2019 | 2018 |  | 2019 | 2018
Three Months Ended March 31, |  |  |  |  |
Foreign currency exchange contracts | $ | — |  | $ | (4 | ) |  | $ | 1 |  | $ | 1 |
(1) | Earnings on our foreign currency exchange contracts are recorded in passenger revenue in the income statement.
Not Designated Hedge Gains (Losses) Gains (losses) related to our cross currency swap and fuel contracts are as follows:
|  | Location of Gain (Loss) Recognized in Income |  | Amount of Gain (Loss) Recognized in Income
(in millions) |  |  |  | 2019 | 2018
Three Months Ended March 31, |  |  |  |  |
Foreign currency exchange contracts |  | Unrealized gain on investments, net |  | $ | 11 |  | $ | (16 | )
Fuel hedge contracts |  | Aircraft fuel and related taxes |  | (54 | ) | 2 |
Total |  |  |  | $ | (43 | ) | $ | (14 | )

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