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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2015, and December 31, 2014:

 
 
 
 
Fair value measurements at reporting date using:
 
 
 
 
Quoted prices in
active markets
for identical assets
 
Significant
other observable
inputs
 
Significant
unobservable
inputs
Description
 
December 31, 2015
 
(Level 1)
 
(Level 2)
 
(Level 3)
Assets
 
(in millions)
Cash equivalents
 
 
 
 
 
 
 
 
Cash equivalents (a)
 
$
1,337

 
$
1,337

 
$
—

 
$
—

Commercial paper
 
200

 
—

 
200

 
—

Certificates of deposit
 
13

 
—

 
13

 
—

Eurodollar Time Deposits
 
33

 
—

 
33

 
—

Short-term investments:
 
 
 
 
 
 
 
 
Treasury bills
 
1,248

 
1,248

 
—

 
—

Certificates of deposit
 
220

 
—

 
220

 
—

Interest rate derivatives (see Note 10)
 
2

 
—

 
2

 
—

Fuel derivatives:
 
 
 
 
 
 
 
 
Swap contracts (b)
 
38

 
—

 
38

 
—

Swap contracts (c)
 
931

 
—

 
931

 
—

Option contracts (b)
 
10

 
—

 
—

 
10

Option contracts (c)
 
956

 
—

 
—

 
956

Other available-for-sale securities
 
93

 
66

 
—

 
27

Total assets
 
$
5,081

 
$
2,651

 
$
1,437

 
$
993

Liabilities
 
 
 
 
 
 
 
 
Fuel derivatives:
 
 
 
 
 
 
 
 
Swap contracts (c)
 
$
(774
)
 
$
—

 
$
(774
)
 
$
—

Option contracts (b)
 
(26
)
 
—

 
—

 
(26
)
Option contracts (c)
 
(2,616
)
 
—

 
—

 
(2,616
)
Interest rate derivatives (see Note 10)
 
(49
)
 
—

 
(49
)
 
—

Total liabilities
 
$
(3,465
)
 
$
—

 
$
(823
)
 
$
(2,642
)

(a) Cash equivalents are primarily composed of money market investments.
(b) In the Consolidated Balance Sheet amounts are presented as a net asset. See Note 10.
(c) In the Consolidated Balance Sheet amounts are presented as a net liability. See Note 10.

 
 
 
 
Fair value measurements at reporting date using:
 
 
 
 
Quoted prices in
active markets
for identical assets
 
Significant
other observable
inputs
 
Significant
unobservable
inputs
Description
 
December 31, 2014
 
(Level 1)
 
(Level 2)
 
(Level 3)
Assets
 
(in millions)
Cash equivalents
 
 
 
 
 
 
 
 
Cash equivalents (a)
 
$
1,110

 
$
1,110

 
$
—

 
$
—

Commercial paper
 
70

 
—

 
70

 
—

Certificates of deposit
 
4

 
—

 
4

 
—

Eurodollar Time Deposits
 
98

 
—

 
98

 
—

Short-term investments:
 
 
 
 
 
 
 
 
Treasury bills
 
1,450

 
1,450

 
—

 
—

Certificates of deposit
 
256

 
—

 
256

 
—

Interest rate derivatives (see Note 10)
 
13

 
—

 
13

 
—

Fuel derivatives:
 
 
 
 
 
 
 
 
Swap contracts (b)
 
455

 
—

 
455

 
—

Option contracts (b)
 
892

 
—

 
—

 
892

Other available-for-sale securities
 
95

 
63

 
—

 
32

Total assets
 
$
4,443

 
$
2,623

 
$
896

 
$
924

Liabilities
 
 
 
 
 
 
 
 
Fuel derivatives:
 
 
 
 
 
 
 
 
Swap contracts (b)
 
$
(365
)
 
$
—

 
$
(365
)
 
$
—

Option contracts (b)
 
(1,983
)
 
—

 
—

 
(1,983
)
Interest rate derivatives (see Note 10)
 
(61
)
 
—

 
(61
)
 
—

Total liabilities
 
$
(2,409
)
 
$
—

 
$
(426
)
 
$
(1,983
)

(a) Cash equivalents are primarily composed of money market investments.
(b) In the Consolidated Balance Sheet amounts are presented as a net liability. See Note 10.
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation
The following tables present the Company’s activity for items measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for 2015 and 2014:

 
Fair value measurements using significant
unobservable inputs (Level 3)
 
Fuel
 
Other
 
 
(in millions)
derivatives
 
securities
 
Total
Balance at December 31, 2014
$
(1,091
)

$
32


$
(1,059
)
Total losses (realized or unrealized)
 

 
 

 
 

Included in earnings
(646
)
 
(1
)
 
(647
)
Included in other comprehensive income
(858
)
 
—

 
(858
)
Purchases
750

(a)
—

 
750

Sales
(196
)
(a)
(4
)
 
(200
)
Settlements
365

 
—

 
365

Balance at December 31, 2015
$
(1,676
)
 
$
27

 
$
(1,649
)
The amount of total losses for the period
  included in earnings attributable to the
  change in unrealized gains or losses relating
  to assets still held at December 31, 2015
$
(428
)
 
$
—

 
$
(428
)

(a) The purchase and sale of fuel derivatives are recorded gross based on the structure of the derivative instrument and
whether a contract with multiple derivatives is purchased as a single instrument or separate instruments.

 
Fair value measurements using significant
unobservable inputs (Level 3)
 
Fuel
 
Other
 
 
(in millions)
derivatives
 
securities
 
Total
Balance at December 31, 2013
$
172

 
$
44

 
$
216

Total gains or (losses) (realized or unrealized)
 

 
 

 
 

Included in earnings
(439
)
 
—

 
(439
)
Included in other comprehensive income
(1,091
)
 
3

 
(1,088
)
Purchases
403

(a)
—

 
403

Sales
(155
)
(a)
(15
)
 
(170
)
Settlements
19

 
—

 
19

Balance at December 31, 2014
$
(1,091
)

$
32


$
(1,059
)
The amount of total losses for the period
  included in earnings attributable to the
  change in unrealized gains or losses relating
  to assets still held at December 31, 2014
$
(450
)
 
$
—

 
$
(450
)

(a) The purchase and sale of fuel derivatives are recorded gross based on the structure of the derivative instrument and
whether a contract with multiple derivatives is purchased as a single instrument or separate instruments.
Fair Value Valuation Techniques
The following table presents a range of the unobservable inputs utilized in the fair value measurements of the Company’s fuel derivatives classified as Level 3 at December 31, 2015:

Quantitative information about Level 3 fair value measurements
 
Valuation technique
Unobservable input
Period (by year)
Range
Fuel derivatives
Option model
Implied volatility
2016
26-47%
 
 
 
2017
25-37%
 
 
 
2018
16-31%
Fair value, by Balance Sheet Grouping
(in millions)
 Carrying value
 
Estimated fair value
 
Fair value level hierarchy
5.75% Notes due 2016
$
307

 
$
319

 
Level 2
5.25% Convertible Senior Notes due 2016
111

 
324

 
Level 2
5.125% Notes due 2017
309

 
321

 
Level 2
French Credit Agreements due 2018 - 1.53%
25

 
25

 
Level 3
Fixed-rate 737 Aircraft Notes payable through 2018 - 7.02%
17

 
17

 
Level 3
2.75% Notes due 2019
303

 
307

 
Level 2
Term Loan Agreement due 2019 - 6.315%
143

 
147

 
Level 3
Term Loan Agreement due 2019 - 4.84%
36

 
37

 
Level 3
2.65% Notes due 2020
494

 
493

 
Level 2
Term Loan Agreement due 2020 - 5.223%
329

 
323

 
Level 3
Floating-rate 737 Aircraft Notes payable through 2020
257

 
253

 
Level 3
Pass Through Certificates due 2022 - 6.24%
340

 
382

 
Level 2
7.375% Debentures due 2027
132

 
154

 
Level 2