Fuel

Fuel costs represented 29 percent and 30 percent of total operating expenses during the six months ended June 30, 2013 and 2012, respectively. The Company may enter into fuel hedge instruments from time to time; however, the Company has no unexpired hedge positions.

Derivative Activities

The Company had formally documented the relationship between the hedging instrument and the hedged item, as well as the risk management objective and strategy for the use of the hedging instrument. This documentation included linking the derivatives that were designated as fair value or cash flow hedges to specific assets or liabilities on the balance sheet, commitments or forecasted transactions. The Company assessed at the time a derivative contract was entered into, and at least quarterly thereafter, whether the derivative item was effective in offsetting the changes in fair value or cash flows. Any change in fair value resulting from ineffectiveness, as defined by authoritative accounting guidance related to derivatives and hedging, was recognized in current period earnings. For derivative instruments that were designated and qualified as cash flow hedges, the effective portion of the gain or loss on the derivative instrument was recorded in accumulated other comprehensive loss (AOCL) as a separate component of equity and reclassified into earnings in the period during which the hedge transaction affected earnings. Cash flows related to fuel derivatives are classified as operating activities in the Consolidated Statements of Cash Flows.



The Effects of Derivative Instruments Gains and Losses for the Three Months Ended June 30, 2013 and 2012
Derivatives in ASC 815-20 Cash Flow Hedging Relationships
	Amount of Loss Recognized in Other Comprehensive Income (OCI) on Derivatives (Effective Portion)
	2013		2012
Fuel Contracts	$	—	$	(2	)
Total derivatives	$	—	$	(2	)



		Amount of Gain Recognized from AOCL into Income (Effective Portion)
	Location of Gain Recognized	2013		2012
	from AOCL into Income	2013		2012
Fuel Contracts	Fuel expense	$	—	$	4
Total derivatives		$	—	$	4



		Amount of Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)^a
	Location of Loss Recognized	2013		2012
	in Income on Derivatives	2013		2012
Fuel Contracts	Fuel expense	$	—	$	(1	)
Total derivatives		$	—	$	(1	)

^aNo portion of the loss was excluded from the assessment of hedge effectiveness for the periods then ended.



The Effects of Derivative Instruments Gains and Losses for the Six Months Ended June 30, 2013 and 2012
Derivatives in ASC 815-20 Cash Flow Hedging Relationships
	Amount of Gain Recognized in Other Comprehensive Income (OCI) on Derivatives (Effective Portion)
	2013		2012
Fuel Contracts	$	—	$	7
Total derivatives	$	—	$	7



		Amount of Gain Recognized from AOCL into Income (Effective Portion)
	Location of Gain Recognized	2013		2012
	from AOCL into Income	2013		2012
Fuel Contracts	Fuel expense	$	—	$	25
Total derivatives		$	—	$	25



		Amount of Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)^a
	Location of Loss Recognized	2013		2012
	in Income on Derivatives	2013		2012
Fuel Contracts	Fuel expense	$	—	$	(3	)
Total derivatives		$	—	$	(3	)

^aNo portion of the loss was excluded from the assessment of hedge effectiveness for the periods then ended.

The Company utilized a market approach using the forward commodity price for the periods hedged to value its fuel-derivative swaps. As such, the fair values of these instruments were classified as Level 2 valuations under authoritative accounting guidance related to fair value measurements.