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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021, and December 31, 2020:

												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 11)						$	(4)					$	—					$	(4)					$	—

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

(b) In the Consolidated Balance Sheet amounts are presented as an asset. See Note 11.

												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, 2020						(Level 1)						(Level 2)						(Level 3)
Assets						(in millions)
Cash equivalents:
Cash equivalents (a)						$	10,663					$	10,663					$	—					$	—
Commercial paper						90						—						90						—
Certificates of deposit						10						—						10						—
Time deposits						300						—						300						—
Short-term investments:
Treasury bills						1,800						1,800						—						—
Certificates of deposit						46						—						46						—
Time deposits						425						—						425						—
Fuel derivatives:
Option contracts (b)						134						—						—						134
Equity Securities						259						259						—						—
Total assets						$	13,727					$	12,722					$	871					$	134
Liabilities
Interest rate derivatives (see Note 11)						$	(6)					$	—					$	(6)					$	—

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

(b) In the Consolidated Balance Sheet amounts are presented as an asset. See Note 11.

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 2021 and 2020:

Fair value measurements using significant unobservable inputs (Level 3)
(in millions)			Fuel derivatives
Balance at December 31, 2020			$	134
Total gains for the period
Included in earnings			7			(a)
Included in other comprehensive income			609
Purchases			41			(b)
Sales			(7)			(b)
Settlements			(88)
Balance at December 31, 2021			$	696
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 December 31, 2021			$	541

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

(b) The purchase and sale 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, 2019			$	110
Total losses for the period
Included in earnings			(40)			(a)
Included in other comprehensive loss			(65)
Purchases			129			(b)
Balance at December 31, 2020			$	134
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, 2020			$	(15)		(a)
The amount of total losses for the period included in other comprehensive loss attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2020			$	(41)

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

(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 December 31, 2021:

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						2022						21-53%						41		%
																		2023						29-40%						34		%
																		2024						26-33%						28		%

(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 December 31, 2021, 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 2022			$	300					$	305					Level 2
			Pass Through Certificates due 2022 - 6.24%			71						73						Level 2
			4.75% Notes due 2023			1,250						1,311						Level 2
			1.25% Convertible Notes due 2025			1,842						2,802						Level 2
			5.25% Notes due 2025			1,550						1,724						Level 2
			3.00% Notes due 2026			300						314						Level 2
			3.45% Notes due 2027			300						321						Level 2
			5.125% Notes due 2027			2,000						2,294						Level 2
			7.375% Debentures due 2027			116						140						Level 2
			2.625% Notes due 2030			500						499						Level 2
			1.000% Payroll Support Program Loan due April 2030			976						958						Level 3
			1.000% Payroll Support Program Loan due January 2031			566						548						Level 3
			1.000% Payroll Support Program Loan due April 2031			526						507						Level 3

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.

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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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/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

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-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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