Chapter 11 Reorganization (Tables)

6 Months Ended

Jun. 30, 2013

Schedule Of Liabilities Subject To Compromise

The following table summarizes the components of liabilities subject to compromise included on the Condensed Consolidated Balance Sheet as of June 30, 2013 and December 31, 2012:



(in millions)
	June 30, 2013			December 31, 2012
Long-term debt	$	1,175		$	1,198
Estimated allowed claims on aircraft lease and debt obligations and facility lease and bond obligations	4,078			3,716
Pension and postretirement benefits	1,219			1,250
Accounts payable and other accrued liabilities	387			442
Other	(12		)	—
Total liabilities subject to compromise	$	6,847		$	6,606

Schedule of Liabilities Subject to Compromise, Debt

Long-term debt, including undersecured debt, classified as subject to compromise as of June 30, 2013 and December 31, 2012 consisted of (in millions):



	June 30, 2013		December 31, 2012
Secured variable and fixed rate indebtedness due through 2023 (effective rates from 1.00% - 10.00% at June 30, 2013)	$	149	$	172
6.00%—8.50% special facility revenue bonds due through 2036	186		186
6.25% senior convertible notes due 2014	460		460
9.00%—10.20% debentures due through 2021	214		214
7.88%—10.55% notes due through 2039	166		166
	$	1,175	$	1,198

Schedule Of Reorganization Items

The following table summarizes the components included in reorganization items, net on the Consolidated Statements of Operations for the three months and six months ended June 30, 2013 and June 30, 2012:



(in millions)
	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Aircraft and facility financing renegotiations and rejections^(1)(2)(3)	83		158		219		1,513
Professional fees	40		72		79		117
Other	1		—		(14	)	—
Total reorganization items, net	$	124	$	230	284		1,630

(1)

Amounts include allowed claims (claims approved by the Bankruptcy Court) and estimated allowed claims relating to the rejection or modification of financings related to aircraft. The Debtors record an estimated claim associated with the rejection or modification of a financing when the applicable motion is filed with the Bankruptcy Court to reject or modify such financing and the Debtors believe that it is probable the motion will be approved, and there is sufficient information to estimate the claim. Modifications of the financings related to certain aircraft remain subject to conditions, including reaching agreement on definitive documentation. See above, “Special Protection Applicable to Leases and Secured Financing of Aircraft and Aircraft Equipment,” for further information.

(2)

Amounts include allowed claims (claims approved by the Bankruptcy Court) and estimated allowed claims relating to entry of orders treating as unsecured claims with respect to facility agreements supporting certain issuances of special facility revenue bonds. The Debtors record an estimated claim associated with the treatment of claims with respect to facility agreements when the applicable motion is filed with the Bankruptcy Court and the Debtors believe that it is probable that the motion will be approved, and there is sufficient information to estimate the claim. See above, “Rejection of Executory Contracts,” for further information.

(3)

Pursuant to the Support Agreement, as defined and further described in Note 13 to the Condensed Consolidated Financial Statements, the Debtors agreed to allow certain post-petition unsecured claims on obligations. As a result, during the first six months of 2013, the Company recorded reorganization charges to adjust estimated allowed claim amounts previously recorded on rejected special facility revenue bonds of $143 million and allowed general unsecured claims related to the 1990 and 1994 series of special facility revenue bonds that financed certain improvements at John F. Kennedy International Airport, which is included in the table above.