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.