Southwest Airlines 2015 Annual Report Download - page 114

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All cash flows associated with purchasing and selling fuel derivatives are classified as Other operating
cash flows in the Consolidated Statement of Cash Flows. The following table presents the location of
all assets and liabilities associated with the Company’s hedging instruments within the Consolidated
Balance Sheet:
Asset derivatives Liability derivatives
(in millions)
Balance Sheet
location
Fair value
at
12/31/2015
Fair value
at
12/31/2014
Fair value
at
12/31/2015
Fair value
at
12/31/2014
Derivatives designated as hedges*
Fuel derivative contracts
(gross)
Prepaid expenses and
other current assets $ 2 $ — $ — $ —
Fuel derivative contracts
(gross) Other assets 2———
Fuel derivative contracts
(gross) Accrued liabilities 107 — 526 —
Fuel derivative contracts
(gross)
Other noncurrent
liabilities 55 — 658 643
Interest rate derivative
contracts Other assets 2 13 — —
Interest rate derivative
contracts
Other noncurrent
liabilities — — 49 61
Total derivatives designated as hedges $ 168 $ 13 $ 1,233 $ 704
Derivatives not designated as hedges*
Fuel derivative contracts
(gross)
Prepaid expenses and
other current assets $ 39 $ — $ 26 $ —
Fuel derivative contracts
(gross) Other assets 5———
Fuel derivative contracts
(gross) Accrued liabilities 1,395 1,190 1,854 1,432
Fuel derivative contracts
(gross)
Other noncurrent
liabilities 330 157 352 273
Total derivatives not designated as hedges $ 1,769 $ 1,347 $ 2,232 $ 1,705
Total derivatives $ 1,937 $ 1,360 $ 3,465 $ 2,409
* Represents the position of each trade before consideration of offsetting positions with each counterparty and
does not include the impact of cash collateral deposits provided to or received from counterparties. See
discussion of credit risk and collateral following in this Note.
106