Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)

Condensed Consolidating Statements of Operations and Comprehensive Loss

Three months ended March 31, 2020

	Parent Issuer / Guarantor			Subsidiary Issuer / Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Operating Revenue	$	—		$	559,162		$	3,890		$	(3,908	)	$	559,144
Operating Expenses:
Wages and benefits	—			188,254			—			—			188,254
Aircraft fuel, including taxes and delivery	—			113,478			—			—			113,478
Maintenance, materials and repairs	—			59,066			1,897			(554		)	60,409
Aircraft and passenger servicing	—			38,283			—			—			38,283
Commissions and other selling	19			26,700			42			(45		)	26,716
Aircraft rent	—			27,023			(19		)	—			27,004
Other rentals and landing fees	—			29,793			—			(27		)	29,766
Depreciation and amortization	—			37,477			1,972			—			39,449
Purchased services	90			37,096			321			(3,266		)	34,241
Special items	—			126,904			—			—			126,904
Other	1,346			40,732			674			(16		)	42,736
Total	1,455			724,806			4,887			(3,908		)	727,240
Operating Loss	(1,455		)	(165,644		)	(997		)	—			(168,096		)
Nonoperating Income (Expense):
Undistributed net loss of subsidiaries	(143,225		)	—			—			143,225			—
Interest expense and amortization of debt discounts and issuance costs	—			(6,795		)	—			—			(6,795		)
Interest income	3			3,017			—			—			3,020
Capitalized interest	—			831			—			—			831
Losses on fuel derivatives	—			(6,452		)	—			—			(6,452		)
Other, net	—			2,305			(1		)	—			2,304
Total	(143,222		)	(7,094		)	(1		)	143,225			(7,092		)
Loss Before Income Taxes	(144,677		)	(172,738		)	(998		)	143,225			(175,188		)
Income tax benefit	(305		)	(30,301		)	(210		)	—			(30,816		)
Net Income	$	(144,372	)	$	(142,437	)	$	(788	)	$	143,225		$	(144,372	)
Comprehensive Loss	$	(143,041	)	$	(141,106	)	$	(788	)	$	141,894		$	(143,041	)

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)

Three months ended March 31, 2019

	Parent Issuer / Guarantor			Subsidiary Issuer / Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Operating Revenue	$	—		$	656,090		$	792		$	(131	)	$	656,751
Operating Expenses:
Wages and benefits	—			175,065			—			—			175,065
Aircraft fuel, including taxes and delivery	—			126,104			—			—			126,104
Maintenance, materials and repairs	—			61,802			1,243			—			63,045
Aircraft and passenger servicing	—			38,900			—			—			38,900
Commissions and other selling	—			30,865			18			(47		)	30,836
Aircraft rent	—			30,367			29			—			30,396
Depreciation and amortization	—			36,492			1,659			—			38,151
Other rentals and landing fees	—			31,019			27			—			31,046
Purchased services	54			32,193			222			(16		)	32,453
Other	1,842			35,856			449			(68		)	38,079
Total	1,896			598,663			3,647			(131		)	604,075
Operating Income (Loss)	(1,896		)	57,427			(2,855		)	—			52,676
Nonoperating Income (Expense):
Undistributed net income of subsidiaries	37,849			—			—			(37,849		)	—
Interest expense and amortization of debt discounts and issuance costs	—			(7,514		)	(16		)	—			(7,530		)
Interest income	8			2,975			—			—			2,983
Capitalized interest	—			1,285			—			—			1,285
Gains on fuel derivatives	—			570			—			—			570
Other, net	—			(1,069		)	44			—			(1,025		)
Total	37,857			(3,753		)	28			(37,849		)	(3,717		)
Income (Loss) Before Income Taxes	35,961			53,674			(2,827		)	(37,849		)	48,959
Income tax expense (benefit)	(397		)	13,591			(593		)	—			12,601
Net Income (Loss)	$	36,358		$	40,083		$	(2,234	)	$	(37,849	)	$	36,358
Comprehensive Income (Loss)	$	38,619		$	42,344		$	(2,234	)	$	(40,110	)	$	38,619

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

March 31, 2020

	Parent Issuer / Guarantor		Subsidiary Issuer / Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	354	$	591,450		$	8,805		$	—		$	600,609
Short-term investments	—		213,974			—			—			213,974
Accounts receivable, net	—		28,991			2,341			(747		)	30,585
Income taxes receivable	—		99,665			—			—			99,665
Spare parts and supplies, net	—		38,481			—			—			38,481
Prepaid expenses and other	132		45,779			222			—			46,133
Total	486		1,018,340			11,368			(747		)	1,029,447
Property and equipment at cost	—		2,997,359			98,334			—			3,095,693
Less accumulated depreciation and amortization	—		(772,372		)	(24,586		)	—			(796,958		)
Property and equipment, net	—		2,224,987			73,748			—			2,298,735
Operating lease right-of-use assets	—		611,693			—			—			611,693
Long-term prepayments and other	50		182,895			410			—			183,355
Goodwill and other intangible assets, net	—		13,000			500			—			13,500
Intercompany receivable	—		573,580			—			(573,580		)	—
Investment in consolidated subsidiaries	1,486,632		—			504			(1,487,136		)	—
TOTAL ASSETS	$	1,487,168	$	4,624,495		$	86,530		$	(2,061,463	)	$	4,136,730
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	504	$	147,510		$	5,043		$	(747	)	$	152,310
Air traffic liability and current frequent flyer deferred revenue	—		618,126			5,615			—			623,741
Other accrued liabilities	—		138,205			150			—			138,355
Current maturities of long-term debt, less discount	—		59,794			—			—			59,794
Current maturities of finance lease obligations	—		22,045			—			—			22,045
Current maturities of operating leases	—		79,718			—			—			79,718
Total	504		1,065,398			10,808			(747		)	1,075,963
Long-term debt	—		757,221			—			—			757,221
Intercompany payable	562,298		—			11,282			(573,580		)	—
Other liabilities and deferred credits:
Noncurrent finance lease obligations	—		137,059			—			—			137,059
Noncurrent operating leases	—		495,500			—			—			495,500
Accumulated pension and other post-retirement benefit obligations	—		199,964			—			—			199,964
Other liabilities and deferred credits	—		78,808			1,103			—			79,911
Noncurrent frequent flyer deferred revenue	—		172,281			—			—			172,281
Deferred tax liabilities, net	—		294,465			—			—			294,465
Total	—		1,378,077			1,103			—			1,379,180
Shareholders’ equity	924,366		1,423,799			63,337			(1,487,136		)	924,366
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,487,168	$	4,624,495		$	86,530		$	(2,061,463	)	$	4,136,730

Condensed Consolidating Balance Sheets

December 31, 2019

	Parent Issuer / Guarantor		Subsidiary Issuer / Guarantor			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,228	$	362,933		$	8,895		$	—		$	373,056
Short-term investments	—		245,599			—			—			245,599
Accounts receivable, net	—		95,141			3,188			(949		)	97,380
Income taxes receivable, net	—		64,192			—			—			64,192
Spare parts and supplies, net	—		37,630			—			—			37,630
Prepaid expenses and other	90		56,743			16			—			56,849
Total	1,318		862,238			12,099			(949		)	874,706
Property and equipment at cost	—		2,987,222			92,094			—			3,079,316
Less accumulated depreciation and amortization	—		(739,930		)	(22,614		)	—			(762,544		)
Property and equipment, net	—		2,247,292			69,480			—			2,316,772
Operating lease right-of-use assets	—		632,545			—			—			632,545
Long-term prepayments and other	—		182,051			387			—			182,438
Goodwill and other intangible assets, net	—		119,663			500			—			120,163
Intercompany receivable	—		550,075			—			(550,075		)	—
Investment in consolidated subsidiaries	1,619,949		—			504			(1,620,453		)	—
TOTAL ASSETS	$	1,621,267	$	4,593,864		$	82,970		$	(2,171,477	)	$	4,126,624
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	529	$	139,764		$	9,404		$	(949	)	$	148,748
Air traffic liability and current frequent flyer deferred revenue	—		600,851			5,833			—			606,684
Other accrued liabilities	—		161,125			305			—			161,430
Current maturities of long-term debt, less discount	—		53,273			—			—			53,273
Current maturities of finance lease obligations	—		21,857			—			—			21,857
Current maturities of operating leases	—		83,224			—			—			83,224
Total	529		1,060,094			15,542			(949		)	1,075,216
Long-term debt	—		547,254			—			—			547,254
Intercompany payable	538,942		—			11,133			(550,075		)	—
Other liabilities and deferred credits:												0
Noncurrent finance lease obligations	—		141,861			—			—			141,861
Noncurrent operating leases	—		514,685			—			—			514,685
Accumulated pension and other post-retirement benefit obligations	—		203,596			—			—			203,596
Other liabilities and deferred credits	—		96,338			1,096			—			97,434
Noncurrent frequent flyer deferred revenue	—		175,218			—			—			175,218
Deferred tax liabilities, net	—		289,564			—			—			289,564
Total	—		1,421,262			1,096			—			1,422,358
Shareholders’ equity	1,081,796		1,565,254			55,199			(1,620,453		)	1,081,796
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,621,267	$	4,593,864		$	82,970		$	(2,171,477	)	$	4,126,624

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

Three months ended March 31, 2020

	Parent Issuer / Guarantor			Subsidiary Issuer / Guarantor			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net Cash Provided By (Used In) Operating Activities	$	(976	)	$	50,724		$	(2,861	)	$	—		$	46,887
Cash Flows From Investing Activities:
Net payments to affiliates	(9,000		)	(22,126		)	—			31,126			—
Additions to property and equipment, including pre-delivery deposits	—			(40,616		)	(6,229		)	—			(46,845		)
Purchases of investments	—			(48,133		)	—			—			(48,133		)
Sales of investments	—			80,218			—			—			80,218
Net cash used in investing activities	(9,000		)	(30,657		)	(6,229		)	31,126			(14,760		)
Cash Flows From Financing Activities:
Long-term borrowings	—			235,000			—			—			235,000
Repayments of long-term debt and finance lease obligations	—			(25,320		)	—			—			(25,320		)
Dividend payments	(5,514		)	—			—			—			(5,514		)
Net payments from affiliates	22,126			—			9,000			(31,126		)	—
Repurchases of common stock	(7,510		)	—			—			—			(7,510		)
Other	—			(1,230		)	—			—			(1,230		)
Net cash provided by financing activities	9,102			208,450			9,000			(31,126		)	195,426
Net increase (decrease) in cash and cash equivalents	(874		)	228,517			(90		)	—			227,553
Cash, cash equivalents, & restricted cash - Beginning of Period	1,228			362,933			8,895			—			373,056
Cash, cash equivalents, & restricted cash - End of Period	$	354		$	591,450		$	8,805		$	—		$	600,609

Condensed Consolidating Statements of Cash Flows

Three months ended March 31, 2019

	Parent Issuer / Guarantor			Subsidiary Issuer / Guarantor			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net Cash Provided By (Used In) Operating Activities	$	(670	)	$	152,752		$	(1,402	)	$	—		$	150,680
Cash Flows From Investing Activities:
Net payments to affiliates	(4,250		)	(20,920		)	—			25,170			—
Additions to property and equipment, including pre-delivery deposits	—			(71,978		)	(2,283		)	—			(74,261		)
Proceeds from the sale and sale leaseback of aircraft and aircraft related equipment	—			2,780			—			—			2,780
Purchases of investments	—			(71,454		)	—			—			(71,454		)
Sales of investments	—			137,286			—			—			137,286
Other	—			(6,275		)	—			—			(6,275		)
Net cash used in investing activities	(4,250		)	(30,561		)	(2,283		)	25,170			(11,924		)
Cash Flows From Financing Activities:
Repayments of long-term debt and finance lease obligations	—			(24,352		)	(2		)	—			(24,354		)
Dividend payments	(5,811		)	—			—			—			(5,811		)
Net payments from affiliates	20,920			—			4,250			(25,170		)	—
Repurchases of Common Stock	(11,086		)	—			—			—			(11,086		)
Other	—			(982		)	—			—			(982		)
Net cash provided by (used in) financing activities	4,023			(25,334		)	4,248			(25,170		)	(42,233		)
Net increase (decrease) in cash and cash equivalents	(897		)	96,857			563			—			96,523
Cash, cash equivalents, & restricted cash - Beginning of Period	5,154			255,279			8,144			—			268,577
Cash, cash equivalents, & restricted cash - End of Period	$	4,257		$	352,136		$	8,707		$	—		$	365,100