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SEGMENTS
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
Refinery Operations

Our refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and from jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel, as well as non-jet fuel products. We use several counterparties to exchange the non-jet fuel products produced by the refinery for jet fuel consumed in our airline operations. The gross fair value of the products exchanged under these agreements during the three months ended March 31, 2023 and 2022 was $714 million and $809 million, respectively.
Segment Reporting

Segment results are prepared based on our internal accounting methods described below, with reconciliations to consolidated amounts in accordance with GAAP. Our segments are not designed to measure operating income or loss directly related to the products and services included in each segment on a stand-alone basis.

Financial information by segment
(in millions)AirlineRefineryIntersegment Sales/OtherConsolidated
Three Months Ended March 31, 2023
Operating revenue:$11,843 $2,352 $12,759 
Sales to airline segment$(596)
(1)
Exchanged products(714)
(2)
Sales of refined products(126)
Operating (loss)/income(499)222 
(3)
— (277)
Interest expense, net227 4 (4)227 
Depreciation and amortization564 23 (23)
(3)
564 
Total assets, end of period70,183 3,005 (54)73,134 
Net fair value obligations, end of period— (38)— (38)
Capital expenditures971 29 — 1,000 
Three Months Ended March 31, 2022
Operating revenue:$8,161 $2,313 $9,348 
Sales to airline segment$(291)
(1)
Exchanged products(809)
(2)
Sales of refined products(26)
Operating (loss)/income(836)53 
(3)
— (783)
Interest expense, net274 2 (2)274 
Depreciation and amortization506 23 (23)
(3)
506 
Total assets, end of period71,392 2,382 (26)73,748 
Net fair value obligations, end of period— (430)— (430)
Capital expenditures1,749 17 — 1,766 
(1)Represents transfers, valued on a market price basis, from the refinery to the airline segment for use in airline operations. We determine market price for jet fuel from the refinery by reference to the market index for the primary delivery location, which is New York Harbor.
(2)Represents value of products delivered under our exchange agreements, as discussed above, determined on a market price basis.
(3)Refinery segment operating results, including depreciation and amortization, are included within aircraft fuel and related taxes in our income statement.

Fair Value Obligations

The net fair value obligations presented in the table above are related to renewable fuel compliance costs and presented net of any related assets or fixed price purchase agreements. Their value is based on quoted market prices and other observable information and are therefore classified as Level 2 in the fair value hierarchy. Our obligation as of March 31, 2023 was calculated using the U.S. Environmental Protection Agency's ("EPA") Renewable Fuel Standard ("RFS") volume requirements, which were finalized in 2022 for 2021 and 2022 obligations, and proposed in 2022 for 2023 obligations. In March 2023, we settled a portion of our 2021 RINs obligation with the EPA. We expect to settle the remaining 2021 and our entire 2022 RINs obligation by the 2022 compliance deadline, which the EPA has not yet finalized.