Spirit Airlines 2015 Annual Report Download - page 91

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Notes to Financial Statements—(Continued)
91
Fair Value Measurements as of December 31, 2014
Total Level
1Level
2Level
3
(in millions)
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 632.8 $ 632.8 $ — $ —
Jet fuel options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.8 — — 4.8
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 637.6 $ 632.8 $ — $ 4.8
Interest rate swaps $ 1.1 $ — $ 1.1 $ —
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.1 $ — $ 1.1 $ —
The Company had no transfers of assets or liabilities between any of the above levels during the years ended
December 31, 2015 or 2014.
The Company's Valuation Group is made up of individuals from the Company's Treasury and Corporate Accounting
departments. The Valuation Group is responsible for the Company's valuation policies, procedures and execution thereof. The
Company's Valuation Group reports to the Company's Chief Financial Officer and seeks approval for certain derivative
transactions from the Audit Committee. The Valuation Group compares the results of the Company's internally developed
valuation methods with counterparty reports at each balance sheet date and assesses the Company's valuation methods for
accuracy and identifies any needs for modification.
The following table presents the Company’s activity for assets and liabilities measured at gross fair value on a recurring
basis using significant unobservable inputs (Level 3):
Jet Fuel Options
(in thousands)
Balance at January 1, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 265
Total realized or unrealized gains (losses) included in earnings, net . . . . . . . . . . . . . 157
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
Settlements, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (422)
Balance at December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
Total realized or unrealized gains (losses) included in earnings, net . . . . . . . . . . . . . (4,876)
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,679
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
Settlements, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
Balance at December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,803
Total realized or unrealized gains (losses) included in earnings, net . . . . . . . . . . . . . (6,700)
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,474
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
Settlements, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (577)
Balance at December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ —
16. Operating Segments and Related Disclosures
The Company is managed as a single business unit that provides air transportation for passengers. Operating revenues by
geographic region as defined by the Department of Transportation (DOT) area are summarized below: