Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Components Of Provision For Income Taxes


2011	UAL			United			Continental Successor			Continental Predecessor
Current	$	11		$	3		$	—
Deferred		(6	)		—			(6	)

	$	5		$	3		$	(6	)


2010
Current	$	10		$	—		$	2		$	1
Deferred		(10	)		(12	)		(6	)		—

	$	—		$	(12	)	$	(4	)	$	1


2009
Current	$	(1	)	$	—					$	1
Deferred		(16	)		(16	)					(158	)

	$	(17	)	$	(16	)				$	(157	)

Income Tax Provision Differed From Amounts Computed At The Statutory Federal Income Tax Rate


Year Ended December 31, 2011	UAL			United			Continental Successor			Continental Predecessor
Income tax provision at statutory rate	$	298		$	100		$	199
State income taxes, net of federal income tax benefit		(19	)		(25	)		8
Nondeductible acquisition costs		(17	)		(8	)		(9	)
Nondeductible employee meals		12			7			5
Nondeductible interest expense		13			13			—
Derivative market adjustment		—			—			10
Nondeductible compensation		9			5			5
Valuation allowance		(294	)		(92	)		(223	)
Other, net		3			3			(1	)

	$	5		$	3		$	(6	)


Year Ended December 31, 2010
Income tax provision at statutory rate	$	87		$	135		$	(35	)	$	155
State income taxes, net of federal income tax benefit		24			24			1			8
Nondeductible acquisition costs		45			31			14			—
Nondeductible employee meals		8			7			1			3
Nondeductible interest expense		12			12			—			—
Change in tax law — Medicare Part D Subsidy		119			119			—			—
Nondeductible compensation		13			1			12			—
Goodwill credit		(22	)		(22	)		—			—
Valuation allowance		(290	)		(322	)		9			(166	)
Tax benefit resulting from intraperiod tax allocation		—			—			(6	)		—
Other, net		4			3			—			1

	$	—		$	(12	)	$	(4	)	$	1



Income tax provision at statutory rate	$	(234	)	$	(225	)				$	(154	)
State income taxes, net of federal income tax benefit		5			6						(9	)
Nondeductible employee meals		6			6						4
Nondeductible interest expense		12			12						—
Medicare Part D Subsidy		(7	)		(7	)					—
Valuation allowance		190			182						158
Share-based compensation		7			7						—
Tax benefit resulting from intraperiod tax allocation		—			—						(158	)
Other, net		4			3						2

	$	(17	)	$	(16	)				$	(157	)

Components Of Deferred Tax Assets And Liabilities


	UAL						United						Continental
	December 31,						December 31,						December 31,
	2011			2010			2011			2010			2011			2010
Deferred income tax asset (liability):
Federal and state net operating loss ("NOL") carryforwards	$	2,911		$	3,429		$	2,024		$	2,217		$	835		$	1,179
Frequent flyer deferred revenue		2,386			2,358			1,487			1,609			903			752
Employee benefits, including pension, postretirement and medical		1,897			1,741			1,275			1,272			703			551
Lease fair value adjustment		376			504			—			—			376			504
AMT credit carryforwards		268			268			263			263			5			5
Restructuring charges		50			69			50			69			—			—
Other assets		1,201			1,031			510			388			581			495
Less: Valuation allowance		(4,137	)		(4,171	)		(2,614	)		(2,624	)		(1,434	)		(1,384	)

Total deferred tax assets	$	4,952		$	5,229		$	2,995		$	3,194		$	1,969		$	2,102

Depreciation, capitalized interest and other	$	(3,860	)	$	(4,091	)	$	(2,303	)	$	(2,463	)	$	(1,554	)	$	(1,625	)
Intangibles		(1,627	)		(1,699	)		(833	)		(849	)		(795	)		(850	)
Other liabilities		(453	)		(433	)		(218	)		(240	)		(173	)		(186	)

Total deferred tax liabilities	$	(5,940	)	$	(6,223	)	$	(3,354	)	$	(3,552	)	$	(2,522	)	$	(2,661	)

Net deferred tax liability	$	(988	)	$	(994	)	$	(359	)	$	(358	)	$	(553	)	$	(559	)

Reconciliation Of Unrecognized Tax Benefits


	2011			2010		2009
Balance at January 1,	$	32		$	16	$	20
Increase due to Continental's uncertain tax positions at the Merger closing date		—			6		—
Increase in unrecognized tax benefits as a result of tax positions taken during the current period		1			10		1
Decrease in unrecognized tax benefits as a result of tax positions taken during a prior period		(9	)		—		(5	)
Decrease in unrecognized tax benefits relating to settlements with taxing authorities		—			—		—

Balance at December 31,	$	24		$	32	$	16

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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