SHAREHOLDER'S EQUITY

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

SHAREHOLDER'S EQUITY

SHAREHOLDERS' EQUITY

Dividends

In March 2020, the Company suspended the payment of dividends indefinitely. Prior to the suspension, the Company paid dividends of $45 million to shareholders of record during 2020. These restrictions ended on October 1, 2022.

Common Stock Repurchase

In August 2015, the Board of Directors authorized a $1 billion share repurchase program. The Company repurchased 7.6 million shares for $544 million under this program. In March 2020, subject to restrictions under the Coronavirus Aid, Relief, and Economic Securities (CARES) Act, the Company suspended the share repurchase program indefinitely. These restrictions ended on October 1, 2022. The Company announced plans to resume share repurchases in 2023. The program has remaining authorization of $456 million. Prior to the suspension, the Company repurchased $31 million, or 538,078 shares, in 2020.

At December 31, 2022, the Company held 9,349,944 shares in treasury. Management does not anticipate retiring common shares held in treasury for the foreseeable future.

CARES Act Warrant Issuance

As additional taxpayer protection required under the PSP programs under the CARES Act, the Company granted the Treasury a total of 1,455,437 warrants to purchase ALK common stock in 2020 and 2021. An additional 427,080 warrants were issued in conjunction with a draw on the CARES Act Loan in 2020. These warrants are non-voting, freely transferable, may be settled as net shares or in cash at the Company's option, and have a five-year term.

The value of the warrants was estimated using the Black-Scholes option pricing model. The total fair value of the warrants of $30 million, recorded in stockholders' equity at issuance.

Total warrants outstanding are as follows as of December 31, 2022:

	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	305,499	52.25
PSP 3	221,812	66.39
Outstanding December 31, 2022	1,882,518

Accumulated Other Comprehensive Loss (AOCL)

A roll forward of the amounts included in accumulated other comprehensive loss, net of tax (in millions), is shown below for the twelve months ended December 31, 2022:

	Marketable Securities		Employee Benefit Plan		Interest Rate Derivatives		Total
Balance at December 31, 2019, net of tax effect of $150	$	9	$	(469)	$	(5)	$	(465)
Reclassifications into earnings, net of tax effect of ($5)	(11)		23		2		14
Change in value, net of tax effect of $15	25		(52)		(16)		(43)
Balance at December 31, 2020, net of tax effect of $160	$	23	$	(498)	$	(19)	$	(494)
Reclassifications into earnings, net of tax effect of ($6)	(4)		25		—		21
Change in value, net of tax effect of ($71)	(23)		221		13		211
Balance at December 31, 2021, net of tax effect of $83	$	(4)	$	(252)	$	(6)	$	(262)
Reclassifications into earnings, net of tax effect of ($4)	6		2		—		8
Change in value, net of tax effect of $43	(82)		(69)		17		(134)
Balance at December 31, 2022, net of tax effect of $122	$	(80)	$	(319)	$	11	$	(388)