Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

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

	March 31, 2013										December 31, 2012
	Total			Level 1		Level 2		Level 3			Total			Level 1		Level 2		Level 3
	UAL
Cash and cash equivalents	$	3,538		$	3,538	$	—	$	—		$	4,770		$	4,770	$	—	$	—
Short-term investments:
Asset-backed securities		762			—		762		—			715			—		715		—
Corporate debt		540			—		540		—			537			—		537		—
Certificates of deposit placed through an account registry service (“CDARS”)		399			—		399		—			367			—		367		—
Auction rate securities		108			—		—		108			116			—		—		116
U.S. government and agency notes		10			—		10		—			12			—		12		—
Other fixed income securities		33			—		33		—			26			—		26		—
Enhanced equipment trust certificates (“EETC”)		61			—		—		61			63			—		—		63
Fuel derivatives, net		73			—		73		—			46			—		46		—
Restricted cash		435			435		—		—			447			447		—		—
	United
Cash and cash equivalents	$	3,532		$	3,532	$	—	$	—		$	4,765		$	4,765	$	—	$	—
Short-term investments:
Asset-backed securities		762			—		762		—			715			—		715		—
Corporate debt		540			—		540		—			537			—		537		—
CDARS		399			—		399		—			367			—		367		—
Auction rate securities		108			—		—		108			116			—		—		116
U.S. government and agency notes		10			—		10		—			12			—		12		—
Other fixed income securities		33			—		33		—			26			—		26		—
EETC		61			—		—		61			63			—		—		63
Fuel derivatives, net		73			—		73		—			46			—		46		—
Restricted cash		435			435		—		—			447			447		—		—
Convertible debt derivative asset		413			—		—		413			268			—		—		268
Convertible debt option liability		(209	)		—		—		(209	)		(128	)		—		—		(128	)

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 (in millions):

	Three Months Ended March 31,
	2013						2012
UAL	Auction Rate Securities			EETC			Auction Rate Securities			EETC
Balance at January 1	$	116		$	63		$	113		$	60
Settlements		(10	)		(2	)		—			(2	)
Gains (losses):
Reported in earnings—realized		2			—			—			—
Reported in earnings—unrealized		1			—			(1	)		—
Reported in other comprehensive income (loss)		(1	)		—			—			4
Balance at March 31	$	108		$	61		$	112		$	62

	Three Months Ended March 31,
	2013											2012
United	Auction Rate Securities			Convertible Debt Supplemental Derivative Asset		Convertible Debt Conversion Option Liability			EETC			Auction Rate Securities			Convertible Debt Supplemental Derivative Asset		Convertible Debt Conversion Option Liability			EETC
Balance at January 1	$	116		$	268	$	(128	)	$	63		$	113		$	193	$	(95	)	$	60
Purchases, sales, issuances and settlements (net)		(10	)		—		—			(2	)		—			—		—			(2	)
Gains and (losses):
Reported in earnings:
Realized		2			—		—			—			—			—		—			—
Unrealized		1			145		(81	)		—			(1	)		38		(24	)		—
Reported in other comprehensive income (loss)		(1	)		—		—			—			—			—		—			4
Balance at March 31	$	108		$	413	$	(209	)	$	61		$	112		$	231	$	(119	)	$	62

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 (in millions):

	Fair Value of Debt by Fair Value Hierarchy Level
	March 31, 2013										December 31, 2012
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
			Total		Level 1		Level 2		Level 3				Total		Level 1		Level 2		Level 3
UAL debt	$	11,261	$	13,020	$	—	$	8,028	$	4,992	$	12,252	$	13,419	$	—	$	8,045	$	5,374
United debt		10,862		11,745		—		6,753		4,992		11,850		12,460		—		7,086		5,374

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information About Level 3 Fair Value Measurements (in millions)
Item	Fair Value at March 31, 2013			Valuation Technique	Unobservable Input	Range (Weighted Average)
Auction rate securities	$	108		Discounted Cash Flows	Credit risk premium (a) Illiquidity premium (b)	1% 5%
					Expected repayments (c)	Assumed repayment in years 2013 through 2036
EETC		61		Discounted Cash Flows	Structure credit risk (d)	6%
Convertible debt derivative asset		413		Binomial Lattice Model	Expected volatility (e) Own credit risk (f)	45% - 60% (47%) 6%
Convertible debt option liability		(209	)	Binomial Lattice Model	Expected volatility (e) Own credit risk (f)	45% - 60% (47%) 6%

(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.