XML 23 R11.htm IDEA: XBRL DOCUMENT v3.25.3
FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
In determining fair value, there is a three-level hierarchy based on the reliability of the inputs used.

Level 1 refers to fair values based on quoted prices for identical instruments in active markets.

Level 2 refers to fair values estimated using significant other observable inputs such as similar instruments in active markets or quoted prices for identical or similar instrument in markets that are not active. Fair values for Level 2 instruments are determined using standard valuation models that incorporate inputs such as quoted prices for similar assets, interest rates, benchmark curves, credit ratings, and other observable inputs or market data.

Level 3 refers to fair values estimated using significant unobservable inputs for which there is little or no market data and that are significant to the fair value of the assets. Fair values for Level 3 instruments are determined using future cash flows and discount rates, which include information obtained from third-party valuation sources and other market sources, including recent offers from potential buyers.

Fair value of financial instruments measured on a recurring basis

As of September 30, 2025, cost basis and fair value for marketable securities were $1.5 billion. Differences in cost basis and fair value of marketable securities are primarily a result of changes in interest rates and general market conditions. The Company does not believe any unrealized losses are the result of credit quality based on its evaluation of industry and duration exposure, credit ratings of the securities, liquidity profiles, and other observable information as of September 30, 2025.

Fair values of financial instruments on the unaudited condensed consolidated balance sheets:
September 30, 2025
(in millions)Level 1Level 2
Level 3
Total
Marketable securities
U.S. government and agency securities$434 $— $— $434 
Equity mutual funds8 — — 8 
Asset-backed securities— 216 — 216 
Mortgage-backed securities— 201 — 201 
Corporate notes and bonds— 622 — 622 
Municipal securities and other— 13 — 13 
Total Marketable securities$442 $1,052 $— $1,494 

December 31, 2024
(in millions)Level 1Level 2Level 3Total
Marketable securities
U.S. government and agency securities$292 $— $— $292 
Equity mutual funds7 — — 7 
Asset-backed securities— 127 7 134 
Mortgage-backed securities— 112 — 112 
Corporate notes and bonds— 696 2 698 
Municipal securities and other
— 31 — 31 
Total Marketable securities$299 $966 $9 $1,274 
The fair value of interest rate swaps was not material as of September 30, 2025 and December 31, 2024.
Activity and maturities for marketable securities

Maturities for marketable securities:
September 30, 2025 (in millions)
Cost BasisFair Value
Due in one year or less$336 $336 
Due after one year through five years1,007 1,011 
Due after five years through ten years137 138 
Due after ten years2 2 
No maturity date5 7 
Total$1,487 $1,494 

Fair value of other financial instruments

The Company uses the following methods and assumptions to determine the fair value of financial instruments that are not recognized at fair value as described below.

Debt: The estimated fair value of fixed-rate Enhanced Equipment Trust Certificate (EETC) debt and certain variable rate debt is Level 2, while the estimated fair value of $723 million of certain variable-rate and fixed-rate debt, including Payroll Support Program (PSP) notes payable and Japanese Yen denominated debt, is classified as Level 3.

Fixed-rate debt on the unaudited condensed consolidated balance sheets and the estimated fair value of long-term fixed-rate debt:
(in millions)September 30, 2025December 31, 2024
Fixed-rate debt$2,771 $2,946 
Estimated fair value$2,738 $2,844 

Assets and liabilities measured at fair value on a nonrecurring basis

Certain assets and liabilities are recognized or disclosed at fair value on a nonrecurring basis, including property, plant and equipment, operating and finance lease assets, goodwill, and intangible assets. These assets are subject to fair valuation when there is evidence of impairment. No material impairments were recorded during the three and nine months ended September 30, 2025.