SHAREHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

Common Stock Repurchase

In August 2015, the Board of Directors authorized a $1 billion share repurchase program. As of March 31, 2021, the Company has repurchased 7.6 million shares for $544 million under this program. In March 2020, the Company suspended the share repurchase program indefinitely.

CARES Act Warrant Issuance

As additional taxpayer protection required under PSP 2, during the three months ended March 31, 2021 the Company granted the Treasury a total of 255,874 warrants to purchase Alaska Air Group (ALK) common stock at a strike price of $52.25, based on the closing price on December 24, 2020. The warrants are non-voting, freely transferable, may be settled as net shares or in cash at Alaska's option, and have a five-year term.

Total warrants outstanding are as follows as of March 31, 2021:

	Number of shares of ALK common stock	Strike Price
PSP 1	928,127	$	31.61
CARES Act loan warrants	427,080	31.61
PSP 2	255,874	52.25
Total	1,611,081

Subsequent to March 31, 2021, Alaska and Horizon received additional funding under PSP 2. As additional taxpayer protection, the Company granted 45,855 warrants to purchase ALK common stock at a strike price of $52.25, based on the closing price on December 24, 2020. Also subsequent to March 31, 2021, Alaska, Horizon, and McGee received a portion of total funding made available under PSP 3. The Company granted 88,395 warrants to purchase ALK common stock at a strike price of $66.39, based on the closing price on March 10, 2021. The warrants are non-voting, freely transferable, may be settled as net shares or in cash at Alaska's option, and have a five-year term.

Accumulated other comprehensive loss

Components of accumulated other comprehensive loss, net of tax (in millions):

	March 31, 2021		December 31, 2020
Related to marketable securities	$	11	$	23
Related to employee benefit plans	(492)		(498)
Related to interest rate derivatives	(13)		(19)
Total	$	(494)	$	(494)

Earnings Per Share (EPS)

EPS is calculated by dividing net income by the average number of common shares outstanding plus the number of additional common shares that would have been outstanding assuming the exercise of in-the-money stock options and restricted stock units, using the treasury-stock method. For the three months ended March 31, 2021 and 2020, anti-dilutive shares excluded from the calculation of EPS were not material.