Special Charges

6 Months Ended

Jun. 30, 2023

Other Income and Expenses [Abstract]

For the three and six months ended June 30, operating and nonoperating special charges and unrealized (gains) losses on investments in the statements of consolidated operations consisted of the following (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Labor contract ratification bonuses	$	813	$	—	$	813	$	—
(Gains) losses on sale of assets and other special charges	46		112		60		104
Total operating special charges	859		112		873		104
Nonoperating unrealized (gains) losses on investments, net	(84)		40		(108)		40
Nonoperating debt extinguishment and modification fees	11		—		11		7
Total nonoperating special charges and unrealized (gains) losses on investments, net	(73)		40		(97)		47
Total operating and nonoperating special charges and unrealized (gains) losses on investments, net	786		152		776		151
Income tax benefit, net of valuation allowance	(194)		(10)		(197)		(10)
Total operating and nonoperating special charges and unrealized (gains) losses on investments, net of income taxes	$	592	$	142	$	579	$	141

2023

Labor contract ratification bonuses. During the three and six months ended June 30, 2023, the Company recorded $813 million of expense associated with the recently completed AIP with ALPA and ratified contracts with IAM. See Note 7 for additional information.

(Gains) losses on sale of assets and other special charges. During the three and six months ended June 30, 2023, the Company recorded $46 million and $60 million, respectively, of net charges primarily comprised of reserves for various legal matters,

accelerated depreciation related to certain of the Company's assets that will be retired early and other gains and losses on the sale of assets.

Nonoperating unrealized (gains) losses on investments, net. During the three and six months ended June 30, 2023, the Company recorded gains of $84 million and $108 million, respectively, primarily for the change in the market value of its investments in equity securities.

Nonoperating debt extinguishment and modification fees. During the three and six months ended June 30, 2023, the Company recorded $11 million of charges primarily related to the prepayment of $1.0 billion of the outstanding principal amount under a 2021 term loan facility.

2022

(Gains) losses on sale of assets and other special charges. During the three and six months ended June 30, 2022, the Company recorded $112 million and $104 million, respectively, of net charges primarily comprised of $94 million for various legal matters.

Nonoperating unrealized (gains) losses on investments, net. During the three and six months ended June 30, 2022, the Company recorded losses of $40 million, primarily related to the change in the market value of its investments in equity securities.

Nonoperating debt extinguishment and modification fees. During the six months ended June 30, 2022, the Company recorded $7 million of charges primarily related to the early redemption of $400 million of the outstanding principal amount of its 4.25% senior notes due 2022.