XML 53 R9.htm IDEA: XBRL DOCUMENT
v3.10.0.1

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | 6 Months Ended
--- | ---
Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract] |
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Revenue Recognition and Retirement Benefits Accounting Standards In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." The Company adopted the new standard as of January 1, 2018, utilizing a full retrospective transition method. Adoption of the new standard resulted in changes to accounting policies for revenue recognition related to frequent flyer activity, certain ancillary revenues such as change fees, air traffic liabilities, and sales and marketing expenses. As a result of adoption, the Company also changed certain financial statement line item disclosure captions. See Note 3 for a discussion of the impact of this standard. Although less significant, in March 2017 the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715)," which requires the Company to present the service cost component of net periodic benefit cost as Wages and benefits in the statement of operations. The Company adopted the new standard as of January 1, 2018, utilizing a full retrospective transition method. Under this new standard, all components of net periodic benefit cost are presented in Nonoperating income (expense), except service cost, which remains in Wages and benefits. Certain line item captions on the balance sheet and statement of operations changed as a result of the newly implemented standards. Accordingly, historical financial information presented below as reported has been presented using the new captions. The cumulative impact to retained earnings at January 1, 2016 as a result of the new revenue recognition standard was $171 million. Below are the impacts of these newly adopted accounting standards to the financial statements. Condensed consolidated statement of operations for the three and six months ended June 30, 2017 (in millions):
| Three Months Ended June 30, 2017 |  | Six Months Ended June 30, 2017
|  |  | Adjustments |  |  |  |  |  | Adjustments |  |
| As Reported |  | Revenue Recognition |  | Retirement Benefits |  | As Adjusted |  | As Reported |  | Revenue Recognition |  | Retirement Benefits |  | As Adjusted
Operating Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger Revenue | $ | 1,807 |  |  | $ | 138 |  |  | $ | — |  |  | $ | 1,945 |  |  | $ | 3,291 |  |  | $ | 256 |  |  | $ | — |  |  | $ | 3,547 |
Mileage plan other revenue | 128 |  |  | (19 | ) |  | — |  |  | 109 |  |  | 247 |  |  | (38 | ) |  | — |  |  | 209 |
Cargo and other revenue | 167 |  |  | (119 | ) |  | — |  |  | 48 |  |  | 313 |  |  | (227 | ) |  | — |  |  | 86 |
Total Operating Revenue | 2,102 |  |  | — |  |  | — |  |  | 2,102 |  |  | 3,851 |  |  | (9 | ) |  | — |  |  | 3,842 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wages and benefits | 469 |  |  | — |  |  | 1 |  |  | 470 |  |  | 917 |  |  | — |  |  | 3 |  |  | 920 |
Selling expenses | 97 |  |  | 5 |  |  | — |  |  | 102 |  |  | 178 |  |  | 7 |  |  | — |  |  | 185 |
Special items—merger-related costs | 24 |  |  | — |  |  | — |  |  | 24 |  |  | 64 |  |  | (1 | ) |  | — |  |  | 63 |
All other operating expenses | 1,019 |  |  | — |  |  | — |  |  | 1,019 |  |  | 2,030 |  |  | — |  |  | — |  |  | 2,030 |
Total Operating Expenses | 1,609 |  |  | 5 |  |  | 1 |  |  | 1,615 |  |  | 3,189 |  |  | 6 |  |  | 3 |  |  | 3,198 |
Operating Income | 493 |  |  | (5 | ) |  | (1 | ) |  | 487 |  |  | 662 |  |  | (15 | ) |  | (3 | ) |  | 644 |
Nonoperating Income (Expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other—net | (1 | ) |  | — |  |  | 1 |  |  | — |  |  | (4 | ) |  | — |  |  | 3 |  |  | (1 | )
All other nonoperating income (expense) | (13 | ) |  | — |  |  | — |  |  | (13 | ) |  | (27 | ) |  | — |  |  | — |  |  | (27 | )
| (14 | ) |  | — |  |  | 1 |  |  | (13 | ) |  | (31 | ) |  | — |  |  | 3 |  |  | (28 | )
Income (loss) before income tax | 479 |  |  | (5 | ) |  | — |  |  | 474 |  |  | 631 |  |  | (15 | ) |  | — |  |  | 616 |
Income tax expense (benefit) | 183 |  |  | (2 | ) |  | — |  |  | 181 |  |  | 236 |  |  | (6 | ) |  | — |  |  | 230 |
Net Income (Loss) | $ | 296 |  |  | $ | (3 | ) |  | $ | — |  |  | $ | 293 |  |  | $ | 395 |  |  | $ | (9 | ) |  | $ | — |  |  | $ | 386 |
Condensed consolidated statement of cash flows for the six months ended June 30, 2017 (in millions):
| Six Months Ended June 30, 2017
| As Reported |  | Adjustments - Revenue Recognition |  | As Adjusted
Cash flows from operating activities: |  |  |  |  |
Net income | $ | 395 |  |  | $ | (9 | ) |  | $ | 386 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Depreciation and amortization | 180 |  |  | — |  |  | 180 |
Stock-based compensation and other | 25 |  |  | — |  |  | 25 |
Changes in certain assets and liabilities: |  |  |  |  |
Changes in deferred tax provision | 132 |  |  | (5 | ) |  | 127 |
Increase in air traffic liability | 406 |  |  | (22 | ) |  | 384 |
Increase in deferred revenue | 15 |  |  | 54 |  |  | 69 |
Other—net | (69 | ) |  | (18 | ) |  | (87 | )
Net cash provided by operating activities | 1,084 |  |  | — |  |  | 1,084 |
Net cash used in investing activities | (971 | ) |  | — |  |  | (971 | )
Net cash used in financing activities | (243 | ) |  | — |  |  | (243 | )
Net increase (decrease) in cash and cash equivalents | (130 | ) |  | — |  |  | (130 | )
Cash and cash equivalents at beginning of year | 328 |  |  | — |  |  | 328 |
Cash and cash equivalents at end of the period | $ | 198 |  |  | $ | — |  |  | $ | 198 |

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

X
- Definition The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
Name: | us-gaap_NewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration