Operating segment information is as follows (in millions):



	Three Months Ended September 30, 2014
	Alaska
	Mainline			Regional		Horizon			Consolidating			Air Group Adjusted^(a)			Special Items^(b)			Consolidated
Operating revenues
Passenger
Mainline	$	1,030		$	—	$	—		$	—		$	1,030		$	—		$	1,030
Regional	—			219		—			—			219			—			219
Total passenger revenues	1,030			219		—			—			1,249			—			1,249
CPA revenues	—			—		99			(99		)	—			—			—
Freight and mail	30			2		—			—			32			—			32
Other - net	161			22		1			—			184			—			184
Total operating revenues	1,221			243		100			(99		)	1,465			—			1,465

Operating expenses
Operating expenses, excluding fuel	605			162		85			(97		)	755			—			755
Economic fuel	338			52		—			—			390			4			394
Total operating expenses	943			214		85			(97		)	1,145			4			1,149

Nonoperating income (expense)
Interest income	5			—		—			—			5			—			5
Interest expense	(8		)	—		(4		)	—			(12		)	—			(12		)
Other	7			—		—			—			7			—			7
	4			—		(4		)	—			—			—			—
Income (loss) before income tax	$	282		$	29	$	11		$	(2	)	$	320		$	(4	)	$	316



	Three Months Ended September 30, 2013
	Alaska
	Mainline			Regional			Horizon			Consolidating			Air Group Adjusted^(a)			Special Items^(b)			Consolidated
Operating revenues
Passenger
Mainline	$	960		$	—		$	—		$	—		$	960		$	—		$	960
Regional	—			208			—			—			208			—			208
Total passenger revenues	960			208			—			—			1,168			—			1,168
CPA revenues	—			—			88			(88		)	—			—			—
Freight and mail	31			1			—			—			32			—			32
Other - net	145			19			1			—			165			192			357
Total operating revenues	1,136			228			89			(88		)	1,365			192			1,557

Operating expenses
Operating expenses, excluding fuel	588			144			80			(88		)	724			—			724
Economic fuel	337			46			—			—			383			(20		)	363
Total operating expenses	925			190			80			(88		)	1,107			(20		)	1,087

Nonoperating income (expense)
Interest income	5			—			—			—			5			—			5
Interest expense	(9		)	—			(4		)	—			(13		)	—			(13		)
Other	8			(8		)	1			—			1			—			1
	4			(8		)	(3		)	—			(7		)	—			(7		)
Income (loss) before income tax	$	215		$	30		$	6		$	—		$	251		$	212		$	463



	Nine Months Ended September 30, 2014
	Alaska
	Mainline			Regional			Horizon			Consolidating			Air Group Adjusted^(a)			Special Items^(b)			Consolidated
Operating revenues
Passenger
Mainline	$	2,858		$	—		$	—		$	—		$	2,858		$	—		$	2,858
Regional	—			605			—			—			605			—			605
Total passenger revenues	2,858			605			—			—			3,463			—			3,463
CPA revenues	—			—			277			(277		)	—			—			—
Freight and mail	84			4			—			—			88			—			88
Other - net	448			59			4			—			511			—			511
Total operating revenues	3,390			668			281			(277		)	4,062			—			4,062

Operating expenses
Operating expenses, excluding fuel	1,783			464			257			(274		)	2,230			—			2,230
Economic fuel	980			149			—			—			1,129			(17		)	1,112
Total operating expenses	2,763			613			257			(274		)	3,359			(17		)	3,342

Nonoperating income (expense)
Interest income	15			—			—			—			15			—			15
Interest expense	(25		)	(1		)	(10		)	—			(36		)	—			(36		)
Other	34			—			—			—			34			—			34
	24			(1		)	(10		)	—			13			—			13
Income (loss) before income tax	$	651		$	54		$	14		$	(3	)	$	716		$	17		$	733



	Nine Months Ended September 30, 2013
	Alaska
	Mainline			Regional			Horizon			Consolidating			Air Group Adjusted^(a)			Special Items^(b)			Consolidated
Operating revenues
Passenger
Mainline	$	2,651		$	—		$	—		$	—		$	2,651		$	—		$	2,651
Regional	—			582			—			—			582			—			582
Total passenger revenues	2,651			582			—			—			3,233			—			3,233
CPA revenues	—			—			274			(274		)	—			—			—
Freight and mail	85			3			—			—			88			—			88
Other - net	380			49			4			—			433			192			625
Total operating revenues	3,116			634			278			(274		)	3,754			192			3,946

Operating expenses
Operating expenses, excluding fuel	1,704			440			253			(274		)	2,123			—			2,123
Economic fuel	987			135			—			—			1,122			(7		)	1,115
Total operating expenses	2,691			575			253			(274		)	3,245			(7		)	3,238

Nonoperating income (expense)
Interest income	14			—			—			—			14			—			14
Interest expense	(30		)	—			(10		)	(2		)	(42		)	—			(42		)
Other	19			(9		)	1			—			11			—			11
	3			(9		)	(9		)	(2		)	(17		)	—			(17		)
Income (loss) before income tax	$	428		$	50		$	16		$	(2	)	$	492		$	199		$	691


^(a)	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 charges.


^(b)	Includes mark-to-market fuel-hedge accounting charges and accounting adjustments related to Special mileage plan revenue.

Total assets were as follows (in millions):



	September 30, 2014			December 31, 2013
Alaska^(a)	$	6,655		$	5,832
Horizon	836			840
Parent company	3,324			2,762
Elimination of inter-company accounts	(4,579		)	(3,596		)
Consolidated	$	6,236		$	5,838


^(a)	There are no assets associated with purchased capacity flying at Alaska.