Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The table below presents disclosures about the fair value of financial assets and financial liabilities measured at fair value on a recurring basis in the Company’s financial statements as of December 31 (in millions):

	2012								2011
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	UAL
Cash and cash equivalents	$	4,770	$	4,770	$	—	$	—	$	6,246	$	6,246	$	—	$	—
Short-term investments:
Asset-backed securities		715		—		715		—		478		—		478		—
Corporate debt		537		—		537		—		515		—		515		—
Certificates of deposit placed through an account registry service (“CDARS”)		367		—		367		—		355		—		355		—
Auction rate securities		116		—		—		116		113		—		—		113
U.S. government and agency notes		12		—		12		—		22		—		22		—
Other fixed income securities		26		—		26		—		33		—		33		—
Enhanced equipment trust certificates (“EETC”)		63		—		—		63		60		—		—		60
Fuel derivatives, net		46		—		46		—		73		—		73		—
Foreign currency derivatives		—		—		—		—		(1)		—		(1)		—
Restricted cash		447		447		—		—		569		569		—		—
	United
Cash and cash equivalents	$	2,766	$	2,766	$	—	$	—	$	3,458	$	3,458	$	—	$	—
Short-term investments:
Asset-backed securities		16		—		16		—		29		—		29		—
Corporate debt		139		—		139		—		138		—		138		—
CDARS		139		—		139		—		87		—		87		—
U.S. government and agency notes		8		—		8		—		5		—		5		—
Other fixed income securities		24		—		24		—		16		—		16		—
EETC		63		—		—		63		60		—		—		60
Fuel derivatives, net		28		—		28		—		44		—		44		—
Restricted cash		337		337		—		—		433		433		—		—

	2012								2011
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	Continental
Cash and cash equivalents	$	1,999	$	1,999	$	—	$	—	$	2,782	$	2,782	$	—	$	—
Short-term investments:
Asset-backed securities		699		—		699		—		449		—		449		—
Corporate debt		398		—		398		—		377		—		377		—
CDARS		228		—		228		—		268		—		268		—
Auction rate securities		116		—		—		116		113		—		—		113
U.S. government and agency notes		4		—		4		—		17		—		17		—
Other fixed income securities		2		—		2		—		17		—		17		—
Fuel derivatives, net		18		—		18		—		29		—		29		—
Foreign currency derivatives		—		—		—		—		(1)		—		(1)		—
Restricted cash		110		110		—		—		135		135		—		—
Convertible debt derivative asset		268		—		—		268		193		—		—		193
Convertible debt option liability		(128)		—		—		(128)		(95)		—		—		(95)

Activity for "Level Three" Financial Assets and Financial Liabilities

The tables below present disclosures about the activity for “Level 3” financial assets and financial liabilities for the year ended December 31 (in millions):

	2012				2011
UAL (a)	Auction Rate Securities		EETC		Auction Rate Securities		EETC
Balance at January 1	$	113	$	60	$	119	$	66
Settlements		—		(5)		(10)		(4)
Gains reported in earnings		1		—		3		—
Reported in other comprehensive income (loss)		2		8		1		(2)
Balance at December 31	$	116	$	63	$	113	$	60

(a) For 2012 and 2011, United’s only Level 3 recurring measurements are the above EETC securities.

	2012						2011
Continental	Student Loan-Related Auction Rate Securities		Convertible Debt Supplemental Derivative Asset		Convertible Debt Conversion Option Liability		Student Loan-Related Auction Rate Securities		Convertible Debt Supplemental Derivative Asset		Convertible Debt Conversion Option Liability
Balance at January 1	$	113	$	193	$	(95)	$	119	$	286	$	(164)
Purchases, sales, issuances and settlements (net)		—		—		—		(10)		—		—
Gains and (losses):
Reported in earnings:
Realized		—		—		—		1		—		—
Unrealized		1		75		(33)		2		(93)		69
Reported in other comprehensive income		2		—		—		1		—		—
Balance at December 31	$	116	$	268	$	(128)	$	113	$	193	$	(95)

Carrying Values and Estimated Fair Values of Financial Instruments

The table below presents the carrying values and estimated fair values of financial instruments not presented in the tables above for the years ended December 31 (in millions):

	Fair Value of Debt by Fair Value Hierarchy Level
	2012										2011
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3				Total		Level 1		Level 2		Level 3
UAL debt	$	12,252	$	13,419	$	—	$	8,045	$	5,374	$	11,682	$	11,992	$	—	$	859	$	11,133
United debt		5,375		5,595		—		2,272		3,323		5,745		5,630		—		—		5,630
Continental debt		6,475		6,865		—		4,814		2,051		5,528		5,503		—		—		5,503

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information About Level 3 Fair Value Measurements as of December 31, 2012 ($ in millions)
Item	Fair Value at December 31, 2012			Valuation Technique	Unobservable Input	Range (Weighted Average)
Auction rate securities	$	116		Discounted Cash Flows	Credit risk premium (a)	1%
					Illiquidity premium (b)	5%
					Expected repayments (c)	Assumed repayment in years 2013 through 2036
EETC		63		Discounted Cash Flows	Structure credit risk (d)	6% - 7% (6%)
Convertible debt derivative asset		268		Binomial Lattice Model	Expected volatility (e) Own credit risk (f)	45% - 60% (48%) 7% - 9% (8%)
Convertible debt option liability		(128	)	Binomial Lattice Model	Expected volatility (e) Own credit risk (f)	45% - 60% (49%) 7% - 9% (8%)

(a) Represents the credit risk premium component of the discount rate that the Company has determined market participants would use in pricing the investments.

(b) Represents the illiquidity premium component of the discount rate that the Company has determined market participants would use in pricing the investments.

(c) Represents the estimated timing of principal repayments used in the discounted cash flow model.

(d) Represents the credit risk premium of the EETC structure above the risk-free rate that the Company has determined market participants would use in pricing the instruments.

(e) Represents the range in volatility estimates that the Company has determined market participants would use when pricing the instruments.

(f) Represents the range of Company-specific risk adjustments that the Company has determined market participants would use as a model input.

Fair Value Assets Measured On Nonrecurring Basis

The table below presents fair value measurements of nonfinancial assets at UAL and Continental that were performed during the years ended December 31 (in millions):

	2012				2011
	Fair Value		Loss		Fair Value		Loss
Airport slots	$	102	$	30	$	8	$	4