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OPERATING SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2016
Segment Reporting [Abstract] |
OPERATING SEGMENT INFORMATION | OPERATING SEGMENT INFORMATION Air Group has two operating airlines - Alaska and Horizon. Each is a regulated airline with separate management teams. To manage the two operating airlines and the revenues and expenses associated with the CPAs, management views the business in three operating segments: Alaska Mainline - The Boeing 737 part of Alaska's business. Alaska Regional - Alaska's shorter distance network. In this segment, Alaska Regional records actual on board passenger revenue and costs such as fuel, distribution costs, and payments made to Horizon, SkyWest and PenAir for the capacity purchased under CPAs. Additionally, Alaska Regional includes an allocation of corporate overhead such as IT, finance and other administrative costs incurred by Alaska on behalf of the regional operations. Horizon - Horizon operates regional aircraft. All of Horizon's capacity is sold to Alaska under a CPA. Expenses include those typically borne by regional airlines such as crew costs, ownership costs, station handling costs, and maintenance costs. Additionally, the following table reports “Air Group adjusted,” which is not a measure determined in accordance with GAAP. The Company's chief operating decision-makers and others in management use this measure to evaluate operational performance and determine resource allocations. Adjustments are further explained below in a reconciliation to consolidated GAAP results. Operating segment information is as follows (in millions):
| Three Months Ended September 30, 2016
| Alaska |  |  |  |  |  |  |  |  |  |
| Mainline |  | Regional |  | Horizon |  | Parent & Consolidating(a) |  | Air Group Adjusted(b) |  | Special Items(c) |  | Consolidated
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger |  |  |  |  |  |  |  |  |  |  |  |  |
Mainline | $ | 1,073 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,073 |  |  | $ | — |  |  | $ | 1,073 |
Regional | — |  |  | 249 |  |  | — |  |  | — |  |  | 249 |  |  | — |  |  | 249 |
Total passenger revenues | 1,073 |  |  | 249 |  |  | — |  |  | — |  |  | 1,322 |  |  | — |  |  | 1,322 |
CPA revenues | — |  |  | — |  |  | 109 |  |  | (109 | ) |  | — |  |  | — |  |  | — |
Freight and mail | 30 |  |  | 1 |  |  | — |  |  | — |  |  | 31 |  |  | — |  |  | 31 |
Other - net | 190 |  |  | 21 |  |  | 1 |  |  | 1 |  |  | 213 |  |  | — |  |  | 213 |
Total operating revenues | 1,293 |  |  | 271 |  |  | 110 |  |  | (108 | ) |  | 1,566 |  |  | — |  |  | 1,566 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding fuel | 727 |  |  | 202 |  |  | 99 |  |  | (109 | ) |  | 919 |  |  | 22 |  |  | 941 |
Economic fuel | 188 |  |  | 34 |  |  | — |  |  | — |  |  | 222 |  |  | 3 |  |  | 225 |
Total operating expenses | 915 |  |  | 236 |  |  | 99 |  |  | (109 | ) |  | 1,141 |  |  | 25 |  |  | 1,166 |
Nonoperating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | 7 |  |  | — |  |  | — |  |  | — |  |  | 7 |  |  | — |  |  | 7 |
Interest expense | (7 | ) |  | — |  |  | (2 | ) |  | (2 | ) |  | (11 | ) |  | — |  |  | (11 | )
Other | 5 |  |  | — |  |  | — |  |  | 1 |  |  | 6 |  |  | — |  |  | 6 |
| 5 |  |  | — |  |  | (2 | ) |  | (1 | ) |  | 2 |  |  | — |  |  | 2 |
Income (loss) before income tax | $ | 383 |  |  | $ | 35 |  |  | $ | 9 |  |  | $ | — |  |  | $ | 427 |  |  | $ | (25 | ) |  | $ | 402 |
| Three Months Ended September 30, 2015
| Alaska |  |  |  |  |  |  |  |  |  |
| Mainline |  | Regional |  | Horizon |  | Parent & Consolidating(a) |  | Air Group Adjusted(b) |  | Special Items(c) |  | Consolidated
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger |  |  |  |  |  |  |  |  |  |  |  |  |
Mainline | $ | 1,057 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,057 |  |  | $ | — |  |  | $ | 1,057 |
Regional | — |  |  | 240 |  |  | — |  |  | — |  |  | 240 |  |  | — |  |  | 240 |
Total passenger revenues | 1,057 |  |  | 240 |  |  | — |  |  | — |  |  | 1,297 |  |  | — |  |  | 1,297 |
CPA revenues | — |  |  | — |  |  | 105 |  |  | (105 | ) |  | — |  |  | — |  |  | — |
Freight and mail | 29 |  |  | 1 |  |  | — |  |  | — |  |  | 30 |  |  | — |  |  | 30 |
Other - net | 167 |  |  | 20 |  |  | 1 |  |  | — |  |  | 188 |  |  | — |  |  | 188 |
Total operating revenues | 1,253 |  |  | 261 |  |  | 106 |  |  | (105 | ) |  | 1,515 |  |  | — |  |  | 1,515 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding fuel | 667 |  |  | 181 |  |  | 93 |  |  | (104 | ) |  | 837 |  |  | — |  |  | 837 |
Economic fuel | 205 |  |  | 35 |  |  | — |  |  | — |  |  | 240 |  |  | 5 |  |  | 245 |
Total operating expenses | 872 |  |  | 216 |  |  | 93 |  |  | (104 | ) |  | 1,077 |  |  | 5 |  |  | 1,082 |
Nonoperating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | 5 |  |  | — |  |  | — |  |  | — |  |  | 5 |  |  | — |  |  | 5 |
Interest expense | (7 | ) |  | — |  |  | (3 | ) |  | — |  |  | (10 | ) |  | — |  |  | (10 | )
Other | 7 |  |  | — |  |  | — |  |  | 2 |  |  | 9 |  |  | — |  |  | 9 |
| 5 |  |  | — |  |  | (3 | ) |  | 2 |  |  | 4 |  |  | — |  |  | 4 |
Income (loss) before income tax | $ | 386 |  |  | $ | 45 |  |  | $ | 10 |  |  | $ | 1 |  |  | $ | 442 |  |  | $ | (5 | ) |  | $ | 437 |
| Nine Months Ended September 30, 2016
| Alaska |  |  |  |  |  |  |  |  |  |
| Mainline |  | Regional |  | Horizon |  | Parent & Consolidating(a) |  | Air Group Adjusted(b) |  | Special Items(c) |  | Consolidated
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger |  |  |  |  |  |  |  |  |  |  |  |  |
Mainline | 3,036 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,036 |  |  | $ | — |  |  | $ | 3,036 |
Regional | — |  |  | 682 |  |  | — |  |  | — |  |  | 682 |  |  | — |  |  | 682 |
Total passenger revenues | 3,036 |  |  | 682 |  |  | — |  |  | — |  |  | 3,718 |  |  | — |  |  | 3,718 |
CPA revenues | — |  |  | — |  |  | 322 |  |  | (322 | ) |  | — |  |  | — |  |  | — |
Freight and mail | 79 |  |  | 3 |  |  | — |  |  | — |  |  | 82 |  |  | — |  |  | 82 |
Other - net | 546 |  |  | 57 |  |  | 3 |  |  | 1 |  |  | 607 |  |  | — |  |  | 607 |
Total operating revenues | 3,661 |  |  | 742 |  |  | 325 |  |  | (321 | ) |  | 4,407 |  |  | — |  |  | 4,407 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding fuel | 2,107 |  |  | 580 |  |  | 305 |  |  | (322 | ) |  | 2,670 |  |  | 36 |  |  | 2,706 |
Economic fuel | 512 |  |  | 90 |  |  | — |  |  | — |  |  | 602 |  |  | (9 | ) |  | 593 |
Total operating expenses | 2,619 |  |  | 670 |  |  | 305 |  |  | (322 | ) |  | 3,272 |  |  | 27 |  |  | 3,299 |
Nonoperating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | 19 |  |  | — |  |  | 1 |  |  | — |  |  | 20 |  |  | — |  |  | 20 |
Interest expense | (23 | ) |  | — |  |  | (7 | ) |  | (3 | ) |  | (33 | ) |  | — |  |  | (33 | )
Other | 15 |  |  | — |  |  | — |  |  | 4 |  |  | 19 |  |  | — |  |  | 19 |
| 11 |  |  | — |  |  | (6 | ) |  | 1 |  |  | 6 |  |  | — |  |  | 6 |
Income (loss) before income tax | $ | 1,053 |  |  | $ | 72 |  |  | $ | 14 |  |  | $ | 2 |  |  | $ | 1,141 |  |  | $ | (27 | ) |  | $ | 1,114 |
| Nine Months Ended September 30, 2015
| Alaska |  |  |  |  |  |  |  |  |  |
| Mainline |  | Regional |  | Horizon |  | Parent & Consolidating(a) |  | Air Group Adjusted(b) |  | Special Items(c) |  | Consolidated
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger |  |  |  |  |  |  |  |  |  |  |  |  |
Mainline | $ | 2,977 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,977 |  |  | $ | — |  |  | $ | 2,977 |
Regional | — |  |  | 638 |  |  | — |  |  | — |  |  | 638 |  |  | — |  |  | 638 |
Total passenger revenues | 2,977 |  |  | 638 |  |  | — |  |  | — |  |  | 3,615 |  |  | — |  |  | 3,615 |
CPA revenues | — |  |  | — |  |  | 303 |  |  | (303 | ) |  | — |  |  | — |  |  | — |
Freight and mail | 79 |  |  | 4 |  |  | — |  |  | — |  |  | 83 |  |  | — |  |  | 83 |
Other - net | 465 |  |  | 55 |  |  | 3 |  |  | — |  |  | 523 |  |  | — |  |  | 523 |
Total operating revenues | 3,521 |  |  | 697 |  |  | 306 |  |  | (303 | ) |  | 4,221 |  |  | — |  |  | 4,221 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses, excluding fuel | 1,951 |  |  | 514 |  |  | 274 |  |  | (302 | ) |  | 2,437 |  |  | — |  |  | 2,437 |
Economic fuel | 641 |  |  | 101 |  |  | — |  |  | — |  |  | 742 |  |  | (1 | ) |  | 741 |
Total operating expenses | 2,592 |  |  | 615 |  |  | 274 |  |  | (302 | ) |  | 3,179 |  |  | (1 | ) |  | 3,178 |
Nonoperating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | 15 |  |  | — |  |  | — |  |  | 1 |  |  | 16 |  |  | — |  |  | 16 |
Interest expense | (21 | ) |  | — |  |  | (8 | ) |  | (3 | ) |  | (32 | ) |  | — |  |  | (32 | )
Other | 21 |  |  | — |  |  | — |  |  | 5 |  |  | 26 |  |  | — |  |  | 26 |
| 15 |  |  | — |  |  | (8 | ) |  | 3 |  |  | 10 |  |  | — |  |  | 10 |
Income (loss) before income tax | $ | 944 |  |  | $ | 82 |  |  | $ | 24 |  |  | $ | 2 |  |  | $ | 1,052 |  |  | $ | 1 |  |  | $ | 1,053 |
(a) | Includes consolidating entries, Parent Company, and other immaterial business units.
(b) | The adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocations and does not include certain income and charges.
(c) | Includes mark-to-market fuel-hedge accounting charges, and other special items described previously.
Total assets were as follows (in millions):
| September 30, 2016 |  | December 31, 2015
Alaska(a) | $ | 10,949 |  |  | $ | 8,127 |
Horizon | 716 |  |  | 717 |
Parent company | 5,479 |  |  | 4,734 |
Elimination of inter-company accounts | (8,445 | ) |  | (7,048 | )
Consolidated | $ | 8,699 |  |  | $ | 6,530 |
(a) | There are no assets associated with capacity purchase flying at Alaska.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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