2017 Form 10-K Financial Statement

#000009238018000031 Filed on February 07, 2018

View on sec.gov

Income Statement

Concept 2017 2016 Q4 2016 Q3
Revenue $21.17B $5.076B $5.139B
YoY Change 3.65% 1.99% -3.37%
Cost Of Revenue $5.368B $1.299B $1.304B
YoY Change 7.1% 14.35% 0.38%
Gross Profit $15.78B $3.776B $3.835B
YoY Change 3.28% -1.69% -4.58%
Gross Profit Margin 74.53% 74.39% 74.63%
Selling, General & Admin $8.306B $1.953B $2.167B
YoY Change 6.07% 0.98% 10.67%
% of Gross Profit 52.64% 51.72% 56.51%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.218B $318.0M $315.0M
YoY Change -0.25% 20.45% 22.57%
% of Gross Profit 7.72% 8.42% 8.21%
Operating Expenses $17.74B $2.931B $4.444B
YoY Change 5.8% 4.38% 8.58%
Operating Profit $3.407B $846.0M $695.0M
YoY Change -3.27% -17.54% -43.27%
Interest Expense $114.0M -$36.00M $31.00M
YoY Change -6.56% -79.89% 0.0%
% of Operating Profit 3.35% -4.26% 4.46%
Other Income/Expense, Net -$142.0M -$77.00M
YoY Change 97.22% -73.63%
Pretax Income $3.265B $809.0M $618.0M
YoY Change -5.36% -4.49% -33.76%
Income Tax -$92.00M $287.0M $230.0M
% Of Pretax Income -2.82% 35.48% 37.22%
Net Earnings $3.357B $522.0M $388.0M
YoY Change 53.78% -2.61% -33.56%
Net Earnings / Revenue 15.86% 10.28% 7.55%
Basic Earnings Per Share $5.58 $0.85 $0.63
Diluted Earnings Per Share $5.57 $0.84 $0.62
COMMON SHARES
Basic Shares Outstanding 601.0M shares 615.6M shares 618.0M shares
Diluted Shares Outstanding 603.0M shares 625.0M shares

Balance Sheet

Concept 2017 2016 Q4 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.273B $3.305B $3.446B
YoY Change -0.97% 8.33% 11.3%
Cash & Equivalents $1.495B $1.680B $1.966B
Short-Term Investments $1.778B $1.625B $1.480B
Other Short-Term Assets $460.0M $310.0M $214.0M
YoY Change 48.39% 64.89% -69.6%
Inventory $420.0M $337.0M $331.0M
Prepaid Expenses
Receivables $662.0M $546.0M $848.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $4.815B $4.498B $4.839B
YoY Change 7.05% 11.78% 5.82%
LONG-TERM ASSETS
Property, Plant & Equipment $18.54B $17.04B $16.55B
YoY Change 8.77% 9.25% 10.83%
Goodwill $970.0M $970.0M
YoY Change 0.0% 0.0%
Intangibles $426.0M $430.0M
YoY Change -8.19% -8.32%
Long-Term Investments
YoY Change
Other Assets $297.0M $774.0M $690.0M
YoY Change 15.12% 7.95% 0.44%
Total Long-Term Assets $20.30B $18.79B $18.21B
YoY Change 8.02% 8.68% 9.77%
TOTAL ASSETS
Total Short-Term Assets $4.815B $4.498B $4.839B
Total Long-Term Assets $20.30B $18.79B $18.21B
Total Assets $25.11B $23.29B $23.05B
YoY Change 7.83% 9.26% 8.91%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $347.0M $1.178B $1.021B
YoY Change 33.98% -0.84% -17.33%
Accrued Expenses $1.901B $1.985B $2.146B
YoY Change -6.22% -23.39% 4.73%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $348.0M $566.0M $972.0M
YoY Change -38.52% -11.15% 238.68%
Total Short-Term Liabilities $6.863B $6.844B $7.816B
YoY Change 0.28% -7.59% 10.33%
LONG-TERM LIABILITIES
Long-Term Debt $3.405B $2.946B $2.458B
YoY Change 15.58% 8.87% -3.42%
Other Long-Term Liabilities $3.082B $728.0M $661.0M
YoY Change 83.34% -4.21% -29.0%
Total Long-Term Liabilities $6.487B $728.0M $661.0M
YoY Change 40.2% -4.21% -29.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.863B $6.844B $7.816B
Total Long-Term Liabilities $6.487B $728.0M $661.0M
Total Liabilities $15.47B $7.572B $8.477B
YoY Change 4.2% -7.27% 5.76%
SHAREHOLDERS EQUITY
Retained Earnings $11.42B $10.96B
YoY Change 21.35% 22.81%
Common Stock $2.218B $2.210B
YoY Change 1.65% 3.37%
Preferred Stock
YoY Change
Treasury Stock (at cost) $4.872B $4.621B
YoY Change 53.11% 44.9%
Treasury Stock Shares 192.5M shares
Shareholders Equity $9.641B $7.784B $8.047B
YoY Change
Total Liabilities & Shareholders Equity $25.11B $23.29B $23.05B
YoY Change 7.83% 9.26% 8.91%

Cashflow Statement

Concept 2017 2016 Q4 2016 Q3
OPERATING ACTIVITIES
Net Income $3.357B $522.0M $388.0M
YoY Change 53.78% -2.61% -33.56%
Depreciation, Depletion And Amortization $1.218B $318.0M $315.0M
YoY Change -0.25% 20.45% 22.57%
Cash From Operating Activities $3.929B $709.0M $856.0M
YoY Change -8.48% 118.83% 2.39%
INVESTING ACTIVITIES
Capital Expenditures -$2.249B -$713.0M -$497.0M
YoY Change 4.75% -14.71% 89.69%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$126.0M -$5.000M
YoY Change 14.55%
Cash From Investing Activities -$2.408B -$839.0M -$584.0M
YoY Change 5.99% -11.31% 125.48%
FINANCING ACTIVITIES
Cash Dividend Paid $274.0M $62.00M
YoY Change 23.42% 26.53%
Common Stock Issuance & Retirement, Net $1.600B $250.0M
YoY Change -8.57% -50.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$1.706B -156.0M -$346.0M
YoY Change -11.33% -133.55% -43.19%
NET CHANGE
Cash From Operating Activities $3.929B 709.0M $856.0M
Cash From Investing Activities -$2.408B -839.0M -$584.0M
Cash From Financing Activities -$1.706B -156.0M -$346.0M
Net Change In Cash -$185.0M -286.0M -$74.00M
YoY Change -290.72% 82.17% 131.25%
FREE CASH FLOW
Cash From Operating Activities $3.929B $709.0M $856.0M
Capital Expenditures -$2.249B -$713.0M -$497.0M
Free Cash Flow $6.178B $1.422B $1.353B
YoY Change -4.07% 22.59% 23.22%

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CapitalizedComputerSoftwareAmortization1
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CY2017 us-gaap Capitalized Computer Software Amortization1
CapitalizedComputerSoftwareAmortization1
168000000 USD
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0 USD
CY2016 us-gaap Capitalized Computer Software Impairments1
CapitalizedComputerSoftwareImpairments1
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CY2017 us-gaap Capitalized Computer Software Impairments1
CapitalizedComputerSoftwareImpairments1
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CY2017Q4 us-gaap Capitalized Computer Software Net
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171000000 USD
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CY2016Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2017Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2016 us-gaap Cash And Cash Equivalents Period Increase Decrease
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1.00
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CY2017Q4 us-gaap Common Stock Shares Issued
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847000000 USD
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114000000 USD
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69000000 USD
CY2017 us-gaap Current State And Local Tax Expense Benefit
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72000000 USD
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3410000000 USD
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3693000000 USD
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CY2017 us-gaap Deferred State And Local Income Tax Expense Benefit
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400000000 USD
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274000000 USD
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451000000 USD
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309000000 USD
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3374000000 USD
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2358000000 USD
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CY2017Q4 us-gaap Defined Benefit Plan Accumulated Other Comprehensive Income Net Gains Losses Before Tax
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4000000 USD
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0.0425
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0.0365
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256000000 USD
CY2017Q4 us-gaap Defined Benefit Plan Benefit Obligation
DefinedBenefitPlanBenefitObligation
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32000000 USD
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37000000 USD
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5000000 USD
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101000000 USD
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12000000 USD
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11000000 USD
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10000000 USD
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0.0708
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0.0708
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0.0708
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11000000 USD
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18000000 USD
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25000000 USD
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32000000 USD
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11000000 USD
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13000000 USD
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18000000 USD
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0.0519
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2028
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945000000 USD
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937000000 USD
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1000000000 USD
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1190000000 USD
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1015000000 USD
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1221000000 USD
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1218000000 USD
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444000000 USD
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283000000 USD
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805000000 USD
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57000000 USD
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0.63
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235000000 USD
CY2017 us-gaap Dividends Cash
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285000000 USD
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3.30
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0.80
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1.30
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0.63
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0.85
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3.58
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0.57
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1.24
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0.84
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3.19
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5.80
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3.27
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0.79
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1.28
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0.62
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0.84
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3.55
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0.57
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1.23
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0.84
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3.18
CY2017 us-gaap Earnings Per Share Diluted
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5.79
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0.35
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0.21
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35000000 USD
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P1Y9M3D
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0 USD
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221000000 USD
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94000000 USD
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1649000000 USD
CY2016Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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258000000 USD
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209000000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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87000000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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89000000 USD
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56000000 USD
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13000000 USD
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12000000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
12000000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
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12000000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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13000000 USD
CY2016Q4 us-gaap Flight Equipment Gross
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20275000000 USD
CY2017Q4 us-gaap Flight Equipment Gross
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21368000000 USD
CY2016Q4 us-gaap Frequent Flier Liability Current
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1400000000 USD
CY2017Q4 us-gaap Frequent Flier Liability Current
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1600000000 USD
CY2015 us-gaap Fuel Costs
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3616000000 USD
CY2016 us-gaap Fuel Costs
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3647000000 USD
CY2017 us-gaap Fuel Costs
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3940000000 USD
CY2015 us-gaap Gain Loss On Components Excluded From Assessment Of Price Risk Fair Value Hedge Effectiveness
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124000000 USD
CY2016Q4 us-gaap Goodwill
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970000000 USD
CY2017Q4 us-gaap Goodwill
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970000000 USD
CY2015 us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
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0 USD
CY2016 us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
ImpairmentOfIntangibleAssetsIndefinitelivedExcludingGoodwill
21000000 USD
CY2017 us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
ImpairmentOfIntangibleAssetsIndefinitelivedExcludingGoodwill
0 USD
CY2015 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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3479000000 USD
CY2016Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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816000000 USD
CY2016 us-gaap Gain Loss On Components Excluded From Assessment Of Price Risk Fair Value Hedge Effectiveness
GainLossOnComponentsExcludedFromAssessmentOfPriceRiskFairValueHedgeEffectiveness
153000000 USD
CY2017 us-gaap Gain Loss On Components Excluded From Assessment Of Price Risk Fair Value Hedge Effectiveness
GainLossOnComponentsExcludedFromAssessmentOfPriceRiskFairValueHedgeEffectiveness
135000000 USD
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1660000000 USD
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:16px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-style:italic;font-weight:bold;">Concentration Risk</font></div><div style="line-height:120%;text-indent:16px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Approximately </font><font style="font-family:Times New Roman;font-size:11pt;color:#000000;font-style:normal;font-weight:normal;text-decoration:none;">83 percent</font><font style="font-family:inherit;font-size:11pt;"> of the Company&#8217;s full-time equivalent Employees are unionized and are covered by collective-bargaining agreements. A small percentage of the Company's unionized Employees, including its Mechanics and Material Specialists, are in discussions on labor agreements. Those unionized Employee groups in discussions represent approximately </font><font style="font-family:inherit;font-size:11pt;">4.9 percent</font><font style="font-family:inherit;font-size:11pt;"> of the Company&#8217;s full-time equivalent Employees as of </font><font style="font-family:inherit;font-size:11pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:11pt;">. </font></div><div style="line-height:120%;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">The Company attempts to minimize its concentration risk with regards to its cash, cash equivalents, and its investment portfolio. This is accomplished by diversifying and limiting amounts among different counterparties, the type of investment, and the amount invested in any individual security or money market fund.</font></div><div style="line-height:120%;text-align:justify;text-indent:41px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">To manage risk associated with financial derivative instruments held, the Company selects and will periodically review counterparties based on credit ratings, limits its exposure to a single counterparty, and monitors the market position of the program and its relative market position with each counterparty. The Company also has agreements with counterparties containing early termination rights and/or bilateral collateral provisions whereby security is required if market risk exposure exceeds a specified threshold amount or credit ratings fall below certain levels. Collateral deposits provided to or held from counterparties serve to decrease, but not totally eliminate, the credit risk associated with the Company&#8217;s hedging program. See </font><font style="font-family:inherit;font-size:11pt;">Note 10</font><font style="font-family:inherit;font-size:11pt;"> for further information.</font></div><div style="line-height:120%;text-align:justify;text-indent:41px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">As of </font><font style="font-family:Times New Roman;font-size:11pt;color:#000000;font-style:normal;font-weight:normal;text-decoration:none;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:11pt;">, the Company operated an all-Boeing fleet, all of which are variations of the Boeing 737. If the Company was unable to acquire additional aircraft or associated aircraft parts from Boeing, or Boeing was unable or unwilling to make timely deliveries of aircraft or to provide adequate support for its products, the Company&#8217;s operations would be materially adversely impacted. In addition, the Company would be materially adversely impacted in the event of a mechanical or regulatory issue associated with the Boeing 737 aircraft type, whether as a result of downtime for part or all of the Company&#8217;s fleet, increased maintenance costs, or because of a negative perception by the flying public. The Company is also dependent on sole suppliers for aircraft engines and certain other aircraft parts and would, therefore, also be materially adversely impacted in the event of the unavailability of, or a mechanical or regulatory issue associated with, engines and other parts.</font></div><div style="line-height:120%;text-align:justify;text-indent:41px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">The Company has historically entered into agreements with some of its co-brand, payment, and loyalty partners that contain exclusivity aspects which place certain confidential restrictions on the Company from entering into certain arrangements with other payment and loyalty partners. These arrangements generally extend for the terms of the agreements, none of which currently extend beyond </font><font style="font-family:inherit;font-size:11pt;">May 2022</font><font style="font-family:inherit;font-size:11pt;">. The Company believes the financial benefits generated by the exclusivity aspects of these arrangements outweigh the risks involved with such agreements.</font></div></div>

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