XML 51 R34.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Fair Value Measurements (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2015
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 December 31, 2015, and December 31, 2014:
|  |  |  | 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, 2015 |  | (Level 1) |  | (Level 2) |  | (Level 3)
Assets |  | (in millions)
Cash equivalents |  |  |  |  |  |  |  |
Cash equivalents (a) |  | $ | 1,337 |  |  | $ | 1,337 |  |  | $ | — |  |  | $ | — |
Commercial paper |  | 200 |  |  | — |  |  | 200 |  |  | — |
Certificates of deposit |  | 13 |  |  | — |  |  | 13 |  |  | — |
Eurodollar Time Deposits |  | 33 |  |  | — |  |  | 33 |  |  | — |
Short-term investments: |  |  |  |  |  |  |  |
Treasury bills |  | 1,248 |  |  | 1,248 |  |  | — |  |  | — |
Certificates of deposit |  | 220 |  |  | — |  |  | 220 |  |  | — |
Interest rate derivatives (see Note 10) |  | 2 |  |  | — |  |  | 2 |  |  | — |
Fuel derivatives: |  |  |  |  |  |  |  |
Swap contracts (b) |  | 38 |  |  | — |  |  | 38 |  |  | — |
Swap contracts (c) |  | 931 |  |  | — |  |  | 931 |  |  | — |
Option contracts (b) |  | 10 |  |  | — |  |  | — |  |  | 10 |
Option contracts (c) |  | 956 |  |  | — |  |  | — |  |  | 956 |
Other available-for-sale securities |  | 93 |  |  | 66 |  |  | — |  |  | 27 |
Total assets |  | $ | 5,081 |  |  | $ | 2,651 |  |  | $ | 1,437 |  |  | $ | 993 |
Liabilities |  |  |  |  |  |  |  |
Fuel derivatives: |  |  |  |  |  |  |  |
Swap contracts (c) |  | $ | (774 | ) |  | $ | — |  |  | $ | (774 | ) |  | $ | — |
Option contracts (b) |  | (26 | ) |  | — |  |  | — |  |  | (26 | )
Option contracts (c) |  | (2,616 | ) |  | — |  |  | — |  |  | (2,616 | )
Interest rate derivatives (see Note 10) |  | (49 | ) |  | — |  |  | (49 | ) |  | — |
Total liabilities |  | $ | (3,465 | ) |  | $ | — |  |  | $ | (823 | ) |  | $ | (2,642 | )
(a) Cash equivalents are primarily composed of money market investments. (b) In the Consolidated Balance Sheet amounts are presented as a net asset. See Note 10. (c) In the Consolidated Balance Sheet amounts are presented as a net liability. See Note 10.
|  |  |  | 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, 2014 |  | (Level 1) |  | (Level 2) |  | (Level 3)
Assets |  | (in millions)
Cash equivalents |  |  |  |  |  |  |  |
Cash equivalents (a) |  | $ | 1,110 |  |  | $ | 1,110 |  |  | $ | — |  |  | $ | — |
Commercial paper |  | 70 |  |  | — |  |  | 70 |  |  | — |
Certificates of deposit |  | 4 |  |  | — |  |  | 4 |  |  | — |
Eurodollar Time Deposits |  | 98 |  |  | — |  |  | 98 |  |  | — |
Short-term investments: |  |  |  |  |  |  |  |
Treasury bills |  | 1,450 |  |  | 1,450 |  |  | — |  |  | — |
Certificates of deposit |  | 256 |  |  | — |  |  | 256 |  |  | — |
Interest rate derivatives (see Note 10) |  | 13 |  |  | — |  |  | 13 |  |  | — |
Fuel derivatives: |  |  |  |  |  |  |  |
Swap contracts (b) |  | 455 |  |  | — |  |  | 455 |  |  | — |
Option contracts (b) |  | 892 |  |  | — |  |  | — |  |  | 892 |
Other available-for-sale securities |  | 95 |  |  | 63 |  |  | — |  |  | 32 |
Total assets |  | $ | 4,443 |  |  | $ | 2,623 |  |  | $ | 896 |  |  | $ | 924 |
Liabilities |  |  |  |  |  |  |  |
Fuel derivatives: |  |  |  |  |  |  |  |
Swap contracts (b) |  | $ | (365 | ) |  | $ | — |  |  | $ | (365 | ) |  | $ | — |
Option contracts (b) |  | (1,983 | ) |  | — |  |  | — |  |  | (1,983 | )
Interest rate derivatives (see Note 10) |  | (61 | ) |  | — |  |  | (61 | ) |  | — |
Total liabilities |  | $ | (2,409 | ) |  | $ | — |  |  | $ | (426 | ) |  | $ | (1,983 | )
(a) Cash equivalents are primarily composed of money market investments. (b) In the Consolidated Balance Sheet amounts are presented as a net liability. See Note 10.
Fair Value Assets And Liabilities 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 2015 and 2014:
| Fair value measurements using significant unobservable inputs (Level 3)
| Fuel |  | Other |  |
(in millions) | derivatives |  | securities |  | Total
Balance at December 31, 2014 | $ | (1,091 | ) |  | $ | 32 |  |  | $ | (1,059 | )
Total losses (realized or unrealized) |  |  |  |  |  |  |  |
Included in earnings | (646 | ) |  | (1 | ) |  | (647 | )
Included in other comprehensive income | (858 | ) |  | — |  |  | (858 | )
Purchases | 750 |  | (a) | — |  |  | 750 |
Sales | (196 | ) | (a) | (4 | ) |  | (200 | )
Settlements | 365 |  |  | — |  |  | 365 |
Balance at December 31, 2015 | $ | (1,676 | ) |  | $ | 27 |  |  | $ | (1,649 | )
The amount of total losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2015 | $ | (428 | ) |  | $ | — |  |  | $ | (428 | )
(a) The purchase and sale of fuel derivatives are recorded gross based on the structure of the derivative instrument and whether a contract with multiple derivatives is purchased as a single instrument or separate instruments.
| Fair value measurements using significant unobservable inputs (Level 3)
| Fuel |  | Other |  |
(in millions) | derivatives |  | securities |  | Total
Balance at December 31, 2013 | $ | 172 |  |  | $ | 44 |  |  | $ | 216 |
Total gains or (losses) (realized or unrealized) |  |  |  |  |  |  |  |
Included in earnings | (439 | ) |  | — |  |  | (439 | )
Included in other comprehensive income | (1,091 | ) |  | 3 |  |  | (1,088 | )
Purchases | 403 |  | (a) | — |  |  | 403 |
Sales | (155 | ) | (a) | (15 | ) |  | (170 | )
Settlements | 19 |  |  | — |  |  | 19 |
Balance at December 31, 2014 | $ | (1,091 | ) |  | $ | 32 |  |  | $ | (1,059 | )
The amount of total losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2014 | $ | (450 | ) |  | $ | — |  |  | $ | (450 | )
(a) The purchase and sale of fuel derivatives are recorded gross based on the structure of the derivative instrument and whether a contract with multiple derivatives is purchased as a single instrument or separate instruments.
Fair Value Valuation Techniques | The following table presents a range of the unobservable inputs utilized in the fair value measurements of the Company’s fuel derivatives classified as Level 3 at December 31, 2015:
Quantitative information about Level 3 fair value measurements
| Valuation technique | Unobservable input | Period (by year) | Range
Fuel derivatives | Option model | Implied volatility | 2016 | 26-47%
|  |  | 2017 | 25-37%
|  |  | 2018 | 16-31%
Fair value, by Balance Sheet Grouping |
(in millions) | Carrying value |  | Estimated fair value |  | Fair value level hierarchy
5.75% Notes due 2016 | $ | 307 |  |  | $ | 319 |  |  | Level 2
5.25% Convertible Senior Notes due 2016 | 111 |  |  | 324 |  |  | Level 2
5.125% Notes due 2017 | 309 |  |  | 321 |  |  | Level 2
French Credit Agreements due 2018 - 1.53% | 25 |  |  | 25 |  |  | Level 3
Fixed-rate 737 Aircraft Notes payable through 2018 - 7.02% | 17 |  |  | 17 |  |  | Level 3
2.75% Notes due 2019 | 303 |  |  | 307 |  |  | Level 2
Term Loan Agreement due 2019 - 6.315% | 143 |  |  | 147 |  |  | Level 3
Term Loan Agreement due 2019 - 4.84% | 36 |  |  | 37 |  |  | Level 3
2.65% Notes due 2020 | 494 |  |  | 493 |  |  | Level 2
Term Loan Agreement due 2020 - 5.223% | 329 |  |  | 323 |  |  | Level 3
Floating-rate 737 Aircraft Notes payable through 2020 | 257 |  |  | 253 |  |  | Level 3
Pass Through Certificates due 2022 - 6.24% | 340 |  |  | 382 |  |  | Level 2
7.375% Debentures due 2027 | 132 |  |  | 154 |  |  | Level 2

X
- Definition This element represents, for the fair value measurement of assets and liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating gains or losses included in earnings (or changes in net assets) (2) purchases, sales, issuances, and settlements (net); and (3) transfers in and out of Level 3. + References No definition available. + Details
Name: | luv_FairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock
Namespace Prefix: | luv_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, applied during the period to each separate class of assets, liabilities, and financial instruments classified in shareholders' equity that are measured on a recurring and/or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration