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OPERATING SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Operating Segment Information OPERATING SEGMENT INFORMATION
 
Alaska Air Group has two operating airlines—Alaska and Horizon. Each is a regulated airline by the U.S. Department of Transportation’s Federal Aviation Administration. Alaska has CPAs for regional capacity with Horizon, as well as with third-party carriers SkyWest and PenAir, under which Alaska receives all passenger revenues.

Under U.S. General Accepted Accounting Principles, operating segments are defined as components of a business for which there is discrete financial information that is regularly assessed by the Chief Operating Decision Maker (CODM) in making resource allocation decisions. Financial performance for the operating airlines and CPAs is managed and reviewed by the Company's CODM as part of three reportable operating segments:
•Mainline - includes scheduled air transportation on Alaska's Boeing or Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Canada, Mexico, and Costa Rica.
•Regional - includes Horizon's and other third-party carriers’ scheduled air transportation for passengers across a shorter distance network within the U.S. under CPAs. This segment includes the actual revenues and expenses associated with regional flying, as well as an allocation of corporate overhead incurred by Air Group on behalf of the regional operations.
•Horizon - includes the capacity sold to Alaska under CPA. Expenses include those typically borne by regional airlines such as crew costs, ownership costs and maintenance costs.

The CODM makes resource allocation decisions for these reporting segments based on flight profitability data, aircraft type, route economics and other financial information.

The "Consolidating and Other" column reflects parent company activity, McGee Air Services, consolidating entries and other immaterial business units of the company. The “Air Group Adjusted” column represents a non-GAAP measure that is used by the Company CODM to evaluate performance and allocate resources. Adjustments are further explained below in reconciling to consolidated GAAP results.
Operating segment information is as follows (in millions):
Year Ended December 31, 2019
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues   
Passenger revenues6,750  1,345  —  —  8,095  —  8,095  
CPA revenues—  —  450  (450) —  —  —  
Mileage Plan other revenue419  46  —  —  465  —  465  
Cargo and other212  3  1  5  221  —  221  
Total Operating Revenues7,381  1,394  451  (445) 8,781  —  8,781  
Operating Expenses
Non-fuel operating expenses4,778  1,097  385  (464) 5,796  44  5,840  
Fuel expense1,589  295  —  —  1,884  (6) 1,878  
Total Operating Expenses6,367  1,392  385  (464) 7,680  38  7,718  
Non-operating Income (Expense)
Interest income66  —  —  (24) 42  —  42  
Interest expense(76) —  (28) 26  (78) —  (78) 
Interest capitalized15  —  —  —  15  —  15  
Other(26) —  —  —  (26) —  (26) 
Total Non-operating Income (Expense)(21) —  (28) 2  (47) —  (47) 
Income (Loss) Before Income Tax$993  $2  $38  $21  $1,054  $(38) $1,016  

Year Ended December 31, 2018
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues   
Passenger revenues6,474  1,157  —  —  7,631  —  7,631  
CPA revenues—  —  508  (508) —  —  —  
Mileage Plan other revenue397  37  —  —  434  —  434  
Cargo and other192  3  4  —  199  —  199  
Total Operating Revenues7,063  1,197  512  (508) 8,264  —  8,264  
Operating Expenses
Non-fuel operating expenses4,577  1,024  465  (513) 5,553  132  5,685  
Fuel expense1,652  262  —  —  1,914  22  1,936  
Total Operating Expenses6,229  1,286  465  (513) 7,467  154  7,621  
Non-operating Income (Expense)
Interest income53  —  —  (15) 38  —  38  
Interest expense(82) —  (22) 13  (91) —  (91) 
Interest capitalized16  —  2  —  18  —  18  
Other(12) (11) —  —  (23) —  (23) 
Total Non-operating Income (Expense)(25) (11) (20) (2) (58) —  (58) 
Income (Loss) Before Income Tax$809  $(100) $27  $3  $739  $(154) $585  
Year Ended December 31, 2017
MainlineRegionalHorizon
Consolidating & Other(a)
Air Group Adjusted(b)
Special Items(c)
Consolidated
Operating Revenues   
Passenger revenues6,278  1,023  —  —  7,301  —  7,301  
CPA revenues—  —  426  (426) —  —  —  
Mileage Plan other revenue387  31  —  —  418  —  418  
Cargo and other167  4  4  —  175  —  175  
Total Operating Revenues6,832  1,058  430  (426) 7,894  —  7,894  
Operating Expenses
Non-fuel operating expenses4,271  852  427  (427) 5,123  116  5,239  
Fuel expense1,282  172  —  —  1,454  (7) 1,447  
Total Operating Expenses5,553  1,024  427  (427) 6,577  109  6,686  
Non-operating Income (Expense)
Interest income39  —  —  (5) 34  —  34  
Interest expense(92) —  (13) 2  (103) —  (103) 
Interest capitalized15  —  2  —  17  —  17  
Other3  —  —  —  3  —  3  
Total Non-operating Income (Expense)(35) —  (11) (3) (49) —  (49) 
Income (Loss) Before Income Tax$1,244  $34  $(8) $(2) $1,268  $(109) $1,159  
(a)Includes consolidating entries, Parent Company, McGee Air Services, and other immaterial business units.
(b)The Air Group Adjusted column represents the financial information that is reviewed by management to assess performance of operations and determine capital allocations and excludes certain income and charges.
(c)Includes merger-related costs, mark-to-market fuel-hedge accounting adjustments, and other special items.


201920182017
Depreciation and amortization:
Mainline$337  $316  $308  
Horizon86  82  64  
Consolidated$423  $398  $372  
Capital expenditures:
Mainline$605  $571  $734  
Horizon91  389  292  
Consolidated$696  $960  $1,026  
Total assets at end of period:         
Mainline$19,207  $16,853  
Horizon1,266  1,229  
Consolidating & Other(7,480) (7,170) 
Consolidated$12,993  $10,912