Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2020

	Parent Issuer / Guarantor		Subsidiary Issuer / Guarantor		Non-Guarantor Subsidiaries		Eliminations		Consolidated
	(in thousands)
Operating Revenue	$	—	$	76,090	$	3,114	$	(3,222)	$	75,982
Operating Expenses:
Wages and benefits	—		19,494		—		—		19,494
Aircraft fuel, including taxes and delivery	—		14,544		—		—		14,544
Maintenance, materials and repairs	—		18,027		1,187		(550)		18,664
Aircraft and passenger servicing	—		5,140		—		—		5,140
Commissions and other selling	(25)		5,221		6		(1)		5,201
Aircraft rent	—		26,182		48		—		26,230
Other rentals and landing fees	—		14,175		9		(28)		14,156
Depreciation and amortization	—		35,726		1,008		—		36,734
Purchased services	39		25,184		296		(2,641)		22,878
Special items	—		17,489		—		—		17,489
Other	1,439		14,503		585		(2)		16,525
Total	1,453		195,685		3,139		(3,222)		197,055
Operating Loss	(1,453)		(119,595)		(25)		—		(121,073)
Nonoperating Income (Expense):
Undistributed net loss of subsidiaries	(95,952)		—		—		95,952		—
Other nonoperating special items	—		(7,011)		—		—		(7,011)
Interest expense and amortization of debt discounts and issuance costs	—		(11,596)		—		—		(11,596)
Interest income	1		1,941		—		—		1,942
Capitalized interest	—		831		—		—		831
Losses on fuel derivatives	—		(297)		—		—		(297)
Other, net	—		(6,380)		—		—		(6,380)
Total	(95,951)		(22,512)		—		95,952		(22,511)
Loss Before Income Taxes	(97,404)		(142,107)		(25)		95,952		(143,584)
Income tax benefit	(305)		(46,175)		(5)		—		(46,485)
Net Income	$	(97,099)	$	(95,932)	$	(20)	$	95,952	$	(97,099)
Comprehensive Loss	$	(110,228)	$	(109,061)	$	(20)	$	109,081	$	(110,228)

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)

Three months ended September 30, 2019

	Parent Issuer / Guarantor		Subsidiary Issuer / Guarantor		Non-Guarantor Subsidiaries		Eliminations		Consolidated
	(in thousands)
Operating Revenue	$	—	$	754,608	$	649	$	(106)	$	755,151
Operating Expenses:
Wages and benefits	—		182,862		—		—		182,862
Aircraft fuel, including taxes and delivery	—		138,586		—		—		138,586
Maintenance, materials and repairs	—		58,056		3,307		—		61,363
Aircraft and passenger servicing	—		41,762		—		—		41,762
Commissions and other selling	—		33,310		17		(36)		33,291
Aircraft rent	—		30,365		169		—		30,534
Depreciation and amortization	—		39,853		1,743		—		41,596
Other rentals and landing fees	—		33,345		—		—		33,345
Purchased services	70		32,803		263		(16)		33,120
Other	1,576		40,099		435		(54)		42,056
Total	1,646		631,041		5,934		(106)		638,515
Operating Income (Loss)	(1,646)		123,567		(5,285)		—		116,636
Nonoperating Income (Expense):
Undistributed net income of subsidiaries	81,379		—		—		(81,379)		—
Interest expense and amortization of debt discounts and issuance costs	—		(6,438)		—		—		(6,438)
Interest income	4		3,144		—		—		3,148
Capitalized interest	—		1,171		—		—		1,171
Losses on fuel derivatives	—		(4,553)		—		—		(4,553)
Other, net	(8)		(1,437)		—		—		(1,445)
Total	81,375		(8,113)		—		(81,379)		(8,117)
Income (Loss) Before Income Taxes	79,729		115,454		(5,285)		(81,379)		108,519
Income tax expense (benefit)	(347)		29,899		(1,109)		—		28,443
Net Income (Loss)	$	80,076	$	85,555	$	(4,176)	$	(81,379)	$	80,076
Comprehensive Income (Loss)	$	83,050	$	88,529	$	(4,176)	$	(84,353)	$	83,050

Condensed Consolidating Statements of Operations and Comprehensive Loss

Nine months ended September 30, 2020

	Parent Issuer / Guarantor		Subsidiary Issuer / Guarantor		Non-Guarantor Subsidiaries		Eliminations		Consolidated
	(in thousands)
Operating Revenue	$	—	$	694,755	$	10,347	$	(9,972)	$	695,130
Operating Expenses:
Aircraft fuel, including taxes and delivery	—		135,025		—		—		135,025
Wages and benefits	—		238,077		—		—		238,077
Aircraft rent	—		77,128		(8)		—		77,120
Maintenance materials and repairs	—		89,992		4,359		(1,284)		93,067
Aircraft and passenger servicing	—		46,459		—		—		46,459
Commissions and other selling	(6)		34,833		63		(46)		34,844
Depreciation and amortization	—		110,558		4,958		—		115,516
Other rentals and landing fees	—		57,672		9		(82)		57,599
Purchased services	189		84,516		849		(8,548)		77,006
Special items	—		147,570		30,837		—		178,407
Other	4,306		74,178		1,671		(12)		80,143
Total	4,489		1,096,008		42,738		(9,972)		1,133,263
Operating Loss	(4,489)		(401,253)		(32,391)		—		(438,133)
Nonoperating Income (Expense):
Undistributed net loss of subsidiaries	(344,832)		—		—		344,832		—
Other nonoperating special items	—		(7,011)		—		—		(7,011)
Interest expense and amortization of debt discounts and issuance costs	—		(26,612)				—		(26,612)
Interest income	4		7,724		—		—		7,728
Capitalized interest	—		2,583		—		—		2,583
Losses on fuel derivatives	—		(6,933)		—		—		(6,933)
Other, net	—		(2,910)		(5)		—		(2,915)
Total	(344,828)		(33,159)		(5)		344,832		(33,160)
Loss Before Income Taxes	(349,317)		(434,412)		(32,396)		344,832		(471,293)
Income tax benefit	(942)		(115,173)		(6,803)		—		(122,918)
Net Loss	$	(348,375)	$	(319,239)	$	(25,593)	$	344,832	$	(348,375)
Comprehensive Loss	$	(360,791)	$	(331,655)	$	(25,593)	$	357,248	$	(360,791)

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)

Nine months ended September 30, 2019

	Parent Issuer / Guarantor		Subsidiary Issuer / Guarantor		Non-Guarantor Subsidiaries		Eliminations		Consolidated
	(in thousands)
Operating Revenue	$	—	$	2,122,368	$	2,063	$	(340)	$	2,124,091
Operating Expenses:
Aircraft fuel, including taxes and delivery	—		405,290		—		—		405,290
Wages and benefits	—		537,997		—		—		537,997
Aircraft rent	—		91,564		209		—		91,773
Maintenance materials and repairs	—		176,131		6,408		—		182,539
Aircraft and passenger servicing	—		120,303		—		—		120,303
Commissions and other selling	11		96,655		58		(126)		96,598
Depreciation and amortization	—		114,254		5,020		—		119,274
Other rentals and landing fees	—		95,750		27		—		95,777
Purchased services	194		97,463		696		(47)		98,306
Other	4,714		112,159		1,335		(167)		118,041
Total	4,919		1,847,566		13,753		(340)		1,865,898
Operating Income (Loss)	(4,919)		274,802		(11,690)		—		258,193
Nonoperating Income (Expense):
Undistributed net income of subsidiaries	178,139		—		—		(178,139)		—
Interest expense and amortization of debt discounts and issuance costs	—		(21,252)		(16)		—		(21,268)
Interest income	25		9,180		—		—		9,205
Capitalized interest	—		3,713		—		—		3,713
Losses on fuel derivatives	—		(7,203)		—		—		(7,203)
Other, net	(8)		(5,538)		(7)		—		(5,553)
Total	178,156		(21,100)		(23)		(178,139)		(21,106)
Income (Loss) Before Income Taxes	173,237		253,702		(11,713)		(178,139)		237,087
Income tax expense (benefit)	(1,030)		66,309		(2,459)		—		62,820
Net Income (Loss)	$	174,267	$	187,393	$	(9,254)	$	(178,139)	$	174,267
Comprehensive Income (Loss)	$	177,294	$	190,420	$	(9,254)	$	(181,166)	$	177,294

Schedule of condensed consolidating balance sheets

Condensed Consolidating Balance Sheets

September 30, 2020

	Parent Issuer / Guarantor		Subsidiary Issuer / Guarantor		Non-Guarantor Subsidiaries		Eliminations		Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	9,452	$	518,402	$	9,148	$	—	$	537,002
Short-term investments	—		442,106		—		—		442,106
Accounts receivable, net	—		30,533		244		(671)		30,106
Income taxes receivable	—		67,758		—		—		67,758
Spare parts and supplies, net	—		36,621		—		—		36,621
Prepaid expenses and other	124		54,748		46		—		54,918
Total	9,576		1,150,168		9,438		(671)		1,168,511
Property and equipment at cost	—		2,912,019		68,125		—		2,980,144
Less accumulated depreciation and amortization	—		(831,355)		(27,571)		—		(858,926)
Property and equipment, net	—		2,080,664		40,554		—		2,121,218
Operating lease right-of-use assets	—		647,288		—		—		647,288
Long-term prepayments and other	50		146,101		468		—		146,619
Goodwill and other intangible assets, net	—		13,000		500		—		13,500
Intercompany receivable	—		569,107		—		(569,107)		—
Investment in consolidated subsidiaries	1,266,361		—		504		(1,266,865)		—
TOTAL ASSETS	$	1,275,987	$	4,606,328	$	51,464	$	(1,836,643)	$	4,097,136
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	947	$	93,885	$	1,999	$	(671)	$	96,160
Air traffic liability and current frequent flyer deferred revenue	—		509,326		6,098		—		515,424
Other accrued liabilities	—		132,545		189		—		132,734
Current maturities of long-term debt, less discount	—		114,810		—		—		114,810
Current maturities of finance lease obligations	—		21,618		—		—		21,618
Current maturities of operating leases	—		81,881		—		—		81,881
Total	947		954,065		8,286		(671)		962,627
Long-term debt	—		1,035,971		—		—		1,035,971
Intercompany payable	557,825		—		11,282		(569,107)		—
Other liabilities and deferred credits:
Noncurrent finance lease obligations	—		126,159		—		—		126,159
Noncurrent operating leases	—		524,172		—		—		524,172
Accumulated pension and other post-retirement benefit obligations	—		223,907		—		—		223,907
Other liabilities and deferred credits	—		77,748		1,101		—		78,849
Noncurrent frequent flyer deferred revenue	—		186,618		—		—		186,618
Deferred tax liabilities, net	—		241,618		—		—		241,618
Total	—		1,380,222		1,101		—		1,381,323
Shareholders’ equity	717,215		1,236,070		30,795		(1,266,865)		717,215
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,275,987	$	4,606,328	$	51,464	$	(1,836,643)	$	4,097,136

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

Nine months ended September 30, 2020

	Parent Issuer / Guarantor		Subsidiary Issuer / Guarantor		Non- Guarantor Subsidiaries		Eliminations		Consolidated
	(in thousands)
Net Cash Provided By (Used In) Operating Activities	$	4,111	$	(177,272)	$	(321)	$	—	$	(173,482)
Cash Flows From Investing Activities:
Net payments to affiliates	(7,850)		(24,921)		(66)		32,837		—
Additions to property and equipment, including pre-delivery deposits	—		(94,565)		(7,210)		—		(101,775)
Proceeds from the sale and sale leaseback of aircraft and aircraft related equipment	—		114,000		—		—		114,000
Purchases of investments	—		(408,955)		—		—		(408,955)
Sales of investments	—		214,469		—		—		214,469
Net cash used in investing activities	(7,850)		(199,972)		(7,276)		32,837		(182,261)
Cash Flows From Financing Activities:
Long-term borrowings	—		602,264		—		—		602,264
Repayments of long-term debt and finance lease obligations	—		(64,686)		—		—		(64,686)
Debt issuance costs	—		(3,506)		—		—		(3,506)
Dividend payments	(5,514)		—		—		—		(5,514)
Net payments from affiliates	24,987		—		7,850		(32,837)		—
Repurchases of common stock	(7,510)		—		—		—		(7,510)
Other	—		(1,359)		—		—		(1,359)
Net cash provided by financing activities	11,963		532,713		7,850		(32,837)		519,689
Net increase (decrease) in cash and cash equivalents	8,224		155,469		253		—		163,946
Cash, cash equivalents, & restricted cash - Beginning of Period	1,228		362,933		8,895		—		373,056
Cash, cash equivalents, & restricted cash - End of Period	$	9,452	$	518,402	$	9,148	$	—	$	537,002

Condensed Consolidating Statements of Cash Flows

Nine months ended September 30, 2019

	Parent Issuer / Guarantor		Subsidiary Issuer / Guarantor		Non- Guarantor Subsidiaries		Eliminations		Consolidated
	(in thousands)
Net Cash Provided By (Used In) Operating Activities	$	(587)	$	462,734	$	(5,252)	$	—	$	456,895
Cash Flows From Investing Activities:
Net payments to affiliates	(10,350)		(75,273)		—		85,623		—
Additions to property and equipment, including pre-delivery deposits	—		(274,786)		(5,502)		—		(280,288)
Proceeds from the sale and sale leaseback of aircraft and aircraft related equipment	—		9,045		—		—		9,045
Purchases of investments	—		(265,705)		—		—		(265,705)
Sales of investments	—		267,464		—		—		267,464
Other	—		(6,275)		—		—		(6,275)
Net cash used in investing activities	(10,350)		(345,530)		(5,502)		85,623		(275,759)
Cash Flows From Financing Activities:
Long-term borrowings	—		227,889		—		—		227,889
Repayments of long-term debt and finance lease obligations	—		(95,350)		(6)		—		(95,356)
Debt issuance costs	—		(1,162)		—		—		(1,162)
Dividend payments	(17,206)		—		—		—		(17,206)
Net payments from affiliates	75,273		—		10,350		(85,623)		—
Repurchases of Common Stock	(50,690)		—		—		—		(50,690)
Other	—		(1,026)		—		—		(1,026)
Net cash provided by financing activities	7,377		130,351		10,344		(85,623)		62,449
Net increase (decrease) in cash and cash equivalents	(3,560)		247,555		(410)		—		243,585
Cash, cash equivalents, & restricted cash - Beginning of Period	5,154		255,279		8,144		—		268,577
Cash, cash equivalents, & restricted cash - End of Period	$	1,594	$	502,834	$	7,734	$	—	$	512,162