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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Our income tax (provision) benefit consisted of



	Year Ended December 31,
(in millions)	2011			2010			2009
Current tax (provision) benefit	$	83		$	(7	)	15
Deferred tax (provision) benefit	(349		)	(265		)	850
Decrease (increase) in valuation allowance	351			257			(521		)
Income tax (provision) benefit	$	85		$	(15	)	$	344

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table presents the principal reasons for the difference between the effective tax rate and the U.S. federal statutory income tax rate:



	Year Ended December 31,
	2011		2010		2009
U.S. federal statutory income tax rate	35.0	%	35.0	%	(35.0	)%
State taxes	3.4		2.3		(1.8	)
(Decrease) increase in valuation allowance	(45.7	)	(42.3	)	32.9
Release of uncertain tax position reserve	(9.0	)	—		—
Income Tax Allocation⁽¹⁾	—		—		(20.2	)
Other, net	5.3		7.6		2.4
Effective income tax rate	(11.0	)%	2.6	%	(21.7	)%

⁽¹⁾

We consider all income sources, including other comprehensive income, in determining the amount of tax benefit allocated to continuing operations (the “Income Tax Allocation”). For the year ended December 31, 2009, as a result of the Income Tax Allocation, we recorded a non-cash income tax benefit of $321 million on the loss from continuing operations, with an offsetting non-cash income tax expense of $321 million in other comprehensive income.

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The following table shows significant components of our deferred tax assets and liabilities:



	December 31,
(in millions)	2011			2010
Deferred tax assets:
Net operating loss carryforwards	$	6,647		$	6,472
Pension, postretirement and other benefits	5,703			4,527
AMT credit carryforward	402			424
Deferred revenue	2,297			2,202
Rent expense	284			280
Reorganization items, net	395			674
Other	564			495
Valuation allowance	(10,705		)	(9,632		)
Total deferred tax assets	$	5,587		$	5,442
Deferred tax liabilities:
Depreciation	$	5,093		$	4,837
Debt valuation	206			330
Intangible assets	1,755			1,731
Fuel hedge derivatives	32			73
Other	68			40
Total deferred tax liabilities	$	7,154		$	7,011

The following table shows the current and noncurrent deferred tax assets (liabilities):



	December 31,
(in millions)	2011			2010
Current deferred tax assets, net	$	461		$	355
Noncurrent deferred tax liabilities, net	(2,028		)	(1,924		)
Total deferred tax liabilities, net	$	(1,567	)	$	(1,569	)

Summary of Income Tax Contingencies [Table Text Block]

The following table shows the amount of and changes to unrecognized tax benefits on our Consolidated Balance Sheets:



(in millions)	2011			2010			2009
Unrecognized tax benefits at beginning of period	$	89		$	66		$	29
Gross increases-tax positions in prior period	1			—			1
Gross decreases-tax positions in prior period	(3		)	(3		)	(1		)
Gross increases-tax positions in current period	1			29			40
Lapse of statute of limitations	(1		)	(2		)	—
Settlements	(65		)	(1		)	(3		)
Unrecognized tax benefits at end of period⁽¹⁾	$	22		$	89		$	66


⁽¹⁾	Unrecognized tax benefits on our Consolidated Balance Sheets as of December 31, 2011, 2010 and 2009, include tax benefits of $5 million, $72 million, and $47 million, respectively, which will affect the effective tax rate when recognized.

Summary of Valuation Allowance [Table Text Block]

The following table shows the balance of our valuation allowance and the associated activity:



(in millions)	2011			2010			2009
Valuation allowance at beginning of period	$	9,632		$	9,897		$	9,830
Income tax (provision) benefit	(351		)	(257		)	521
Other comprehensive income tax benefit (provision)	1,241			6			(308		)
Other	183			(14		)	(146		)
Valuation allowance at end of period⁽¹⁾	$	10,705		$	9,632		$	9,897


⁽¹⁾	At December 31, 2011, 2010 and 2009, $2.5 billion, $1.2 billion and $1.2 billion of these balances were recorded in accumulated other comprehensive loss on our Consolidated Balance Sheets, respectively.

- 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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- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

+ References+ Details