Company Quick10K Filing
Alaska Air Group
Price68.38 EPS6
Shares124 P/E11
MCap8,498 P/FCF5
Net Debt-16 EBIT1,094
TEV8,482 TEV/EBIT8
TTM 2019-12-31, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-14
10-K 2019-12-31 Filed 2020-02-12
10-Q 2019-09-30 Filed 2019-11-07
10-Q 2019-06-30 Filed 2019-08-06
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-02-15
10-Q 2018-09-30 Filed 2018-11-02
10-Q 2018-06-30 Filed 2018-08-08
10-Q 2018-03-31 Filed 2018-05-04
10-K 2017-12-31 Filed 2018-02-15
10-Q 2017-09-30 Filed 2017-11-02
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-05
10-K 2016-12-31 Filed 2017-02-28
10-Q 2016-09-30 Filed 2016-11-02
10-Q 2016-06-30 Filed 2016-08-02
10-Q 2016-03-31 Filed 2016-05-09
10-K 2015-12-31 Filed 2016-02-11
10-Q 2015-09-30 Filed 2015-11-04
10-Q 2015-06-30 Filed 2015-08-05
10-Q 2015-03-31 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-02-11
10-Q 2014-09-30 Filed 2014-11-05
10-Q 2014-06-30 Filed 2014-08-06
10-Q 2014-03-31 Filed 2014-05-09
10-K 2013-12-31 Filed 2014-02-13
10-Q 2013-09-30 Filed 2013-11-06
10-Q 2013-06-30 Filed 2013-08-07
10-Q 2013-03-31 Filed 2013-05-08
10-K 2012-12-31 Filed 2013-02-14
10-Q 2012-09-30 Filed 2012-11-07
10-Q 2012-06-30 Filed 2012-08-08
10-Q 2012-03-31 Filed 2012-05-03
10-K 2011-12-31 Filed 2012-02-21
10-Q 2011-09-30 Filed 2011-11-03
10-Q 2011-06-30 Filed 2011-08-04
10-Q 2011-03-31 Filed 2011-05-04
10-K 2010-12-31 Filed 2011-02-23
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-08-05 Filed 2010-08-05
10-Q 2010-03-31 Filed 2010-05-05
10-K 2010-02-18 Filed 2010-02-19
8-K 2020-07-23 Earnings, Regulation FD, Exhibits
8-K 2020-07-02 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2020-06-24
8-K 2020-06-24
8-K 2020-06-23
8-K 2020-06-22
8-K 2020-06-02
8-K 2020-05-07
8-K 2020-05-05
8-K 2020-04-22
8-K 2020-04-14
8-K 2020-04-06
8-K 2020-03-25
8-K 2020-03-16
8-K 2020-03-13
8-K 2020-03-06
8-K 2020-02-13
8-K 2020-01-28
8-K 2020-01-13
8-K 2020-01-06
8-K 2019-12-16
8-K 2019-10-24
8-K 2019-10-10
8-K 2019-09-04
8-K 2019-08-07
8-K 2019-07-25
8-K 2019-07-11
8-K 2019-06-13
8-K 2019-05-15
8-K 2019-04-25
8-K 2019-04-11
8-K 2019-03-14
8-K 2019-03-05
8-K 2019-02-13
8-K 2019-01-24
8-K 2019-01-14
8-K 2018-12-14
8-K 2018-11-27
8-K 2018-11-16
8-K 2018-10-25
8-K 2018-10-12
8-K 2018-09-17
8-K 2018-08-14
8-K 2018-07-26
8-K 2018-07-16
8-K 2018-06-19
8-K 2018-06-15
8-K 2018-05-15
8-K 2018-05-08
8-K 2018-05-04
8-K 2018-04-23
8-K 2018-04-13
8-K 2018-03-13
8-K 2018-02-15
8-K 2018-01-25
8-K 2018-01-22
8-K 2018-01-12
8-K 2018-01-12
8-K 2018-01-04
8-K 2015-09-11
8-K 2015-08-12
8-K 2015-07-23
8-K 2015-07-10
8-K 2015-06-15
8-K 2015-05-14
8-K 2015-05-07
8-K 2015-04-23
8-K 2015-04-09
8-K 2015-03-13
8-K 2015-03-03
8-K 2015-02-12
8-K 2015-01-22
8-K 2015-01-09

ALK 10Q Quarterly Report

Part I
Item 1. Condensed Consolidated Financial Statements
Note 1. General and Summary of Significant Accounting Policies
Note 2. Covid - 19 Pandemic
Note 3. Revenue
Note 4. Fair Value Measurements
Note 5. Long - Term Debt
Note 6. Employee Benefit Plans
Note 7. Commitments and Contingencies
Note 8. Shareholders' Equity
Note 9. Operating Segment Information
Note 10. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosure About Market Risk
Item 4. Controls and Procedures
Part II
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-4.1 aag-descriptionofcapit.htm
EX-4.2 alaskapsp-closingdatew.htm
EX-4.3 alaskapsp-promissoryno.htm
EX-10.1 alaskapsp-payrollsuppo.htm
EX-10.2 alaskapsp-joindertopsp.htm
EX-10.3 alaskapsp-warrantagree.htm
EX-10.4 termloanagreement-alas.htm
EX-10.5 formagmtdsusrevised05-.htm
EX-10.6 oprplanamended05-07x20.htm
EX-31.1 alk10-q12020ex311.htm
EX-31.2 alk10-q12020ex312.htm
EX-32.1 alk10-q12020ex321.htm
EX-32.2 alk10-q12020ex322.htm

Alaska Air Group Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
151296302011201420172021
Assets, Equity
2.41.91.41.00.50.02011201420172021
Rev, G Profit, Net Income
1.50.80.1-0.6-1.3-2.02011201420172021
Ops, Inv, Fin

alk-20200331
10-QFALSEMarch 31, 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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 10-Q
 

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020
 
OR

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from                      to                      

Commission File Number 1-8957
ALASKA AIR GROUP, INC.
 
Delaware91-1292054
(State of Incorporation)(I.R.S. Employer Identification No.)

Title of each className of each exchange on which registeredTicker Symbol
Common stock, $0.01 par value New York Stock ExchangeALK
 
19300 International Boulevard,Seattle,WA98188

Telephone:(206)392-5040

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer  Non-accelerated filer   
(Do not check if a smaller reporting company)
Smaller reporting company   Emerging growth company  

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.): Yes  No
 
The registrant has 122,585,372 common shares, par value $0.01, outstanding at April 30, 2020.

This document is also available on our website at http://investor.alaskaair.com.



ALASKA AIR GROUP, INC.
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2020

 TABLE OF CONTENTS


As used in this Form 10-Q, the terms “Air Group,” the “Company,” “our,” “we” and "us" refer to Alaska Air Group, Inc. and its subsidiaries, unless the context indicates otherwise. Alaska Airlines, Inc. and Horizon Air Industries, Inc. are referred to as “Alaska” and “Horizon” and together as our “airlines.”
 
2


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
 
Cautionary Note Regarding Forward-Looking Statements
In addition to historical information, this Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or the Company’s present expectations.

You should not place undue reliance on our forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond our control. Our forward-looking statements are based on the information currently available to us and speak only as of the date on which this report was filed with the SEC. We expressly disclaim any obligation to issue any updates or revisions to our forward-looking statements, even if subsequent events cause our expectations to change regarding the matters discussed in those statements. For a discussion of our risk factors, see Item 1A. "Risk Factors” of the Company’s annual report on Form 10-K for the year ended December 31, 2019, and as updated in our Form 8-K on May 5, 2020. The updated risk factors are also set forth herein in section Item 1A. "Risk Factors." Please consider our forward-looking statements in light of those risks as you read this report.

3


PART I 

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
ALASKA AIR GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in millions)March 31, 2020December 31, 2019
ASSETS      
Current Assets      
Cash and cash equivalents$811  $221  
Marketable securities1,314  1,300  
Total cash and marketable securities2,125  1,521  
Receivables - net279  323  
Inventories and supplies - net68  72  
Prepaid expenses and other current assets100  121  
Total Current Assets2,572  2,037  
Property and Equipment      
Aircraft and other flight equipment8,228  8,549  
Other property and equipment1,343  1,306  
Deposits for future flight equipment590  533  
 10,161  10,388  
Less accumulated depreciation and amortization3,307  3,486  
Total Property and Equipment - Net6,854  6,902  
Operating lease assets1,584  1,711  
Goodwill1,943  1,943  
Intangible assets - net110  122  
Other noncurrent assets300  278  
Other Assets3,937  4,054  
Total Assets$13,363  $12,993  


4


CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in millions, except share amounts)March 31, 2020December 31, 2019
LIABILITIES AND SHAREHOLDERS' EQUITY      
Current Liabilities      
Accounts payable$119  $146  
Accrued wages, vacation and payroll taxes316  470  
Air traffic liability1,110  900  
Other accrued liabilities382  431  
Deferred revenue478  750  
Current portion of operating lease liabilities266  269  
Current portion of long-term debt1,059  235  
Total Current Liabilities3,730  3,201  
Long-Term Debt, Net of Current Portion1,203  1,264  
Noncurrent Liabilities      
Long-term operating lease liabilities, net of current portion1,375  1,439  
Deferred income taxes665  715  
Deferred revenue1,545  1,240  
Obligation for pension and postretirement medical benefits577  571  
Other liabilities253  232  
 4,415  4,197  
Commitments and Contingencies
Shareholders' Equity      
Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none issued or outstanding    
Common stock, $0.01 par value, Authorized: 400,000,000 shares, Issued: 2020 - 131,934,957 shares; 2019 - 131,812,173 shares, Outstanding: 2020 - 122,585,013 shares; 2019 - 123,000,307 shares1  1  
Capital in excess of par value314  305  
Treasury stock (common), at cost: 2020 - 9,349,944 shares; 2019 - 8,811,866 shares(674) (643) 
Accumulated other comprehensive loss(482) (465) 
Retained earnings4,856  5,133  
 4,015  4,331  
Total Liabilities and Shareholders' Equity$13,363  $12,993  

5


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended March 31,
(in millions, except per share amounts)20202019
Operating Revenues      
Passenger revenue$1,481  $1,716  
Mileage Plan other revenue109  110  
Cargo and other46  50  
Total Operating Revenues1,636  1,876  
Operating Expenses
Wages and benefits612  557  
Variable incentive pay7  35  
Aircraft fuel, including hedging gains and losses384  420  
Aircraft maintenance115  120  
Aircraft rent81  83  
Landing fees and other rentals131  132  
Contracted services72  72  
Selling expenses55  72  
Depreciation and amortization108  106  
Food and beverage service49  49  
Third-party regional carrier expense37  41  
Other143  138  
Special items - merger-related costs 3  26  
Special items - impairment charges and other160    
Total Operating Expenses1,957  1,851  
Operating Income (Loss)(321) 25  
Nonoperating Income (Expense)
Interest income9  9  
Interest expense(13) (22) 
Interest capitalized3  4  
Other—net5  (10) 
Total Nonoperating Income (Expense)4  (19) 
Income (Loss) Before Income Tax(317) 6  
Income tax (benefit) expense (85) 2  
Net Income (Loss)$(232) $4  
Basic Earnings (Loss) Per Share:$(1.89) $0.03  
Diluted Earnings (Loss) Per Share:$(1.87) $0.03  
Shares used for computation:
Basic122.818  123.291  
Diluted124.123  123.915  

6


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS (unaudited)
Three Months Ended March 31,
(in millions)20202019
Net Income (Loss)$(232) $4  
Other Comprehensive Income (Loss):
Related to marketable securities:
Unrealized holding gain (loss) arising during the period(1) 14  
Reclassification of (gain) loss into Other - net nonoperating income (expense)(3) 2  
Income tax effect1  (4) 
Total(3) 12  
Related to employee benefit plans:
Reclassification of net pension expense into Wages and benefits and Other - net nonoperating income (expense)7  8  
Income tax effect(2) (2) 
Total5  6  
Related to interest rate derivative instruments:
Unrealized holding gain (loss) arising during the period(25) (5) 
Reclassification of loss into Aircraft rent1  1  
Income tax effect5  1  
Total(19) (3) 
Other Comprehensive Income (Loss)(17) 15  
Comprehensive Income (Loss)$(249) $19  




7


CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited)

(in millions)Common Stock OutstandingCommon StockCapital in Excess of Par ValueTreasury StockAccumulated Other Comprehensive Income (Loss)Retained EarningsTotal
Balances at December 31, 2019123.0001305(643) (465) 5,133  4,331  
Net loss—  —  —  —  —  (232) (232) 
Other comprehensive income (loss)—  —  —  —  (17) —  (17) 
Common stock repurchase(0.538) —    (31) —  —  (31) 
Stock-based compensation—  —  9—  —  —  9  
Cash dividend declared
($0.375 per share)
—  —  —  —  —  (45) (45) 
Stock issued for employee stock purchase plan  —    —  —  —    
Stock issued under stock plans0.123—    —  —  —    
Balances at March 31, 2020122.585  1  314  (674) (482) 4,856  4,015  



(in millions)Common Stock OutstandingCommon StockCapital in Excess of Par ValueTreasury StockAccumulated Other Comprehensive Income (Loss)Retained EarningsTotal
Balances at December 31, 2018123.194  $1  $232  $(568) $(448) $4,534  $3,751  
Cumulative effect of accounting changes(a)
—  —  —  —    3  3  
Net income—  —  —  —  —  4  4  
Other comprehensive income (loss)—  —  —  —  15  —  15  
Common stock repurchase(0.215) —    (13) —  —  (13) 
Stock-based compensation—  —  12  —  —  —  12  
Cash dividend declared
($0.35 per share)
—  —  —  —  —  (43) (43) 
Stock issued for employee stock purchase plan0.391  —  20  —  —  —  20  
Stock issued under stock plans0.134  —  (3) —  —  —  (3) 
Balances at March 31, 2019123.504  $1  $261  $(581) $(433) $4,498  $3,746  

(a)Represents the opening balance sheet adjustment recorded as a result of the adoption of the new lease accounting standard.








8


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Three Months Ended March 31,
(in millions)20202019
Cash flows from operating activities:      
Net income (Loss)$(232) $4  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization108  106  
Stock-based compensation and other9  11  
Special items - impairment charges and other160    
Changes in certain assets and liabilities:
Changes in deferred tax provision(44) 2  
Increase in air traffic liability210  328  
Increase in deferred revenue33  41  
Other - net(211) (24) 
Net cash provided by operating activities33  468  
Cash flows used in investing activities:      
Property and equipment additions:      
Aircraft and aircraft purchase deposits(57) (53) 
Other flight equipment(35) (29) 
Other property and equipment(27) (33) 
Total property and equipment additions, including capitalized interest(119) (115) 
Purchases of marketable securities(527) (351) 
Sales and maturities of marketable securities511  275  
Other investing activities8  5  
Net cash used in investing activities(127) (186) 
Cash flows from financing activities:      
Proceeds from issuance of debt825  254  
Long-term debt payments(60) (393) 
Common stock repurchases(31) (13) 
Dividends paid(45) (43) 
Other financing activities(5) 24  
Net cash provided by (used in) financing activities684  (171) 
Net increase (decrease) in cash, cash equivalents, and restricted cash590  111  
Cash, cash equivalents, and restricted cash at beginning of year232  114  
Cash, cash equivalents, and restricted cash at end of the period$822  $225  
Cash paid during the period for:
Interest (net of amount capitalized)$9  $18  
Income taxes    
Reconciliation of cash, cash equivalents, and restricted cash at end of the period
Cash and cash equivalents$811  $215  
Restricted cash included in Prepaid expenses and other current assets11  10  
Total cash, cash equivalents, and restricted cash at end of the period$822  $225  

9


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTE 1. GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Basis of Presentation
 
The condensed consolidated financial statements include the accounts of Air Group, or the Company, and its primary subsidiaries, Alaska and Horizon. The condensed consolidated financial statements also include McGee Air Services, a ground services subsidiary of Alaska. The Company conducts substantially all of its operations through these subsidiaries. All significant intercompany balances and transactions have been eliminated. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. Consistent with these requirements, this Form 10-Q does not include all the information required by GAAP for complete financial statements. It should be read in conjunction with the consolidated financial statements and accompanying notes in the Form 10-K for the year ended December 31, 2019. In the opinion of management, all adjustments have been made that are necessary to fairly present the Company’s financial position as of March 31, 2020 and the results of operations for the three months ended March 31, 2020 and 2019. Such adjustments were of a normal recurring nature.

In preparing these statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities, as well as the reported amounts of revenues and expenses, including impairment charges. Due to the impacts of the COVID-19 pandemic on the Company's business, these estimates and assumptions are more judgmental than they would be otherwise given the uncertainty of the future demand for air travel, among other considerations. Further, due to seasonal variations in the demand for air travel, the volatility of aircraft fuel prices, changes in global economic conditions, changes in the competitive environment and other factors, operating results for the three months ended March 31, 2020 are not necessarily indicative of operating results for the entire year.

Recently Adopted Accounting Pronouncement

In June 2016, the Financial Accounting Standards Board issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The ASU requires the use of an "expected credit loss model" on certain financial instruments. The ASU also amends the impairment model for available-for-sale debt securities, and requires the estimation of credit losses to be recorded as allowances instead of reductions to amortized cost. The ASU was effective for the Company beginning January 1, 2020, and was adopted prospectively, but it did not have a significant impact on the Company's financial statements and disclosures.

NOTE 2. COVID-19 PANDEMIC

The public health and economic crises resulting from the outbreak of the novel coronavirus (COVID-19) in the first quarter of 2020 has had an unprecedented impact on the Company. Travel restrictions, event cancellations and social distancing guidelines implemented throughout the country drove significant declines in demand beginning in February, and adversely impacted March revenues. It is likely that the financial impact to the second quarter will be more significant than the first quarter, and it is uncertain when, and at what rate, demand for air travel will return.

In response to the COVID-19 pandemic, the Company implemented a "Peace-of-Mind" waiver, which allows travelers to book tickets for travel for a specified period of time that can be changed or canceled without incurring change fees. Cancellations and postponement of travel exceeded new bookings in March, and had a material impact on passenger revenues, air traffic liability, and cash position. Refer to Note 3 for further discussion.

The Company has also taken decisive action to reduce costs and preserve cash and liquidity. During the quarter, the Company implemented a company-wide hiring freeze, reduced salaries of senior management, suspended annual pay increases and solicited voluntary leaves of absence. In addition to these payroll saving measures, the Company has actively negotiated with vendor partners to reduce contractual minimums and spending in line with the reduction in demand.

With demand dramatically depressed, the Company has significantly reduced its planned flying capacity through at least June 2020. As a result, many aircraft have been parked or removed from service. As of March 31, 2020, the Company had decided to park 146 Mainline aircraft and 13 Horizon aircraft, and suspend flying for eight SkyWest aircraft. Of these aircraft, 12 Airbus aircraft were deemed permanently parked and have been removed from the operating fleet. An additional ten Mainline aircraft were identified for parking subsequent to March 31, 2020.

10


Valuation of long-lived assets

The Company reviews its long-lived assets for impairment whenever events or changes indicate that the total carrying amount of an asset or asset group may not be recoverable. Given the temporary and permanent parking described above, the Company performed impairment tests on certain long-lived assets as of March 31, 2020.

The Company determined there were no indicators of impairment on long-lived assets outside of flight equipment. To determine if impairment exists, a recoverability test is performed comparing the sum of estimated undiscounted future cash flows expected to be directly generated by the assets to the asset carrying value. Assets are grouped at the individual fleet level, which is the lowest level for which identifiable cash flows are available. The Company developed estimates of future cash flows utilizing historical results, adjusted for the current operating environment, including the impact of parked aircraft. All individual fleets passed the recoverability test, except for the Q400 fleet and the permanently parked Airbus aircraft.

The Company recorded an impairment charge of $83 million for the 12 permanently parked Airbus aircraft, comprised of operating lease right of use assets, estimable return costs, and related leasehold improvements. To determine the total impairment charge for the Q400 fleet, the Company obtained fair market values from published pricing guides and evaluated recent sales. As a result of the analysis, the Company recorded an impairment charge of $58 million reflecting the amount for which carrying value exceeded fair value of the Q400 fleet. The Company also recorded an additional impairment of $4 million relating to two Q400 aircraft which are parked and held-for-sale.

A summary of the impairment charges recorded for aircraft and other flight equipment in the condensed consolidated statement of operations for the three months ended March 31, 2020 is as follows (in millions):
Airbus AircraftQ400 AircraftTotal Impairment
Aircraft and other flight equipment, net$11  $58  $69  
Operating lease assets62    62  
Inventory and supplies - net 2    2  
Prepaid expenses and other current assets  4  4  
Other accrued liabilities8