Merger and Integration-Related Costs and Special Items (Tables)

12 Months Ended

Dec. 31, 2012

One-Time Adjustment to Decrease Frequent Flyer Deferred Revenue and Increase Special Revenue

This modification resulted in the following one-time adjustment to decrease frequent flyer deferred revenue and increase special revenue in accordance with ASU 2009-13 for the year ended December 31, 2011 as follows (in millions):

	UAL		United		Continental
Special revenue item	$	107	$	88	$	19

Components of Integration and Merger-Related Costs and Special Items

For the years ended December 31, Merger and integration-related costs and special items classified as special charges in the statements of consolidated operations consisted of the following (in millions):

2012	UAL		United		Continental Successor
Integration-related costs	$	739	$	569	$	170
Labor agreement costs		475		312		163
Voluntary severance and benefits		125		125		—
Intangible asset impairment		30		—		30
Gains on sale of assets and other special charges, net		(46)		(22)		(24)
Total	$	1,323	$	984	$	339
2011	UAL		United		Continental Successor
Integration-related costs	$	517	$	360	$	157
Termination of maintenance service contract		58		58		—
Intangible asset impairment		4		—		4
Other		13		15		(2)
Total	$	592	$	433	$	159
2010	UAL		United		Continental Successor		Continental Predecessor
Merger costs:
Merger-related costs	$	144	$	114	$	30	$	10
Salary and severance-related		249		111		138		—
Integration-related costs		171		138		33		19
		564		363		201		29
Aircraft impairments		136		136		—		6
Goodwill impairment credit		(64)		(64)		—		—
Intangible asset impairment		29		29		—		—
Other		4		4		—		12
Total	$	669	$	468	$	201	$	47

Accrual Activity

Activity related to the accruals for severance and medical costs and future lease payments on permanently grounded aircraft and unused facilities is as follows (in millions):

	Severance/   Medical Costs		Permanently     Grounded Aircraft		Unused     Facilities
UAL
Balance at December 31, 2009	$	45	$	83	$	—
Liability assumed due to Merger, October 1, 2010		3		—		33
Accrual		155		(3)		—
Payments		(101)		(39)		(26)
Balance at December 31, 2010		102		41		7
Accrual		21		5		—
Payments		(68)		(15)		(3)
Balance at December 31, 2011		55		31		4
Accrual		170		(1)		(2)
Payments		(160)		(25)		(1)
Balance at December 31, 2012	$	65	$	5	$	1
United
Balance at December 31, 2009	$	45	$	83	$	—
Accrual		74		(3)		—
Payments		(77)		(39)		—
Balance at December 31, 2010		42		41		—
Accrual		28		5		—
Payments		(42)		(15)		—
Balance at December 31, 2011		28		31		—
Accrual		152		(1)		—
Payments		(141)		(25)		—
Balance at December 31, 2012	$	39	$	5	$	—
Continental
Balance at December 31, 2009	$	14	$	2	$	26
Accrual (a)		84		(1)		9
Payments (a)		(38)		(1)		(28)
Balance at December 31, 2010		60		—		7
Accrual		(7)		—		—
Payments		(26)		—		(3)
Balance at December 31, 2011		27		—		4
Accrual		18		—		(2)
Payments		(19)		—		(1)
Balance at December 31, 2012	$	26	$	—	$	1

(a) Continental accrual and payment amounts for 2010 represent both Predecessor and Successor periods. Total accrual and payments in the Predecessor period were $11 million and $17 million, respectively. Total accrual and payments in the Successor period were $81 million and $50 million, respectively.