Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 11, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | UAL | |
Entity Registrant Name | United Continental Holdings, Inc. | |
Entity Central Index Key | 100,517 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 317,285,583 | |
United Airlines, Inc. | ||
Document Information [Line Items] | ||
Entity Registrant Name | United Airlines, Inc. | |
Entity Central Index Key | 319,687 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,000 |
Statements of Consolidated Oper
Statements of Consolidated Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating revenue: | ||||
Passenger-Mainline | $ 7,017 | $ 7,254 | $ 19,119 | $ 20,153 |
Passenger-Regional | 1,586 | 1,706 | 4,577 | 4,903 |
Total passenger revenue | 8,603 | 8,960 | 23,696 | 25,056 |
Cargo | 224 | 235 | 626 | 706 |
Other operating revenue | 1,086 | 1,111 | 3,182 | 3,066 |
Total revenue | 9,913 | 10,306 | 27,504 | 28,828 |
Operating expense: | ||||
Salaries and related costs | 2,625 | 2,534 | 7,707 | 7,289 |
Aircraft fuel | 1,603 | 1,934 | 4,258 | 5,904 |
Regional capacity purchase | 572 | 572 | 1,645 | 1,725 |
Landing fees and other rent | 546 | 551 | 1,612 | 1,647 |
Depreciation and amortization | 503 | 469 | 1,473 | 1,343 |
Aircraft maintenance materials and outside repairs | 451 | 424 | 1,301 | 1,252 |
Distribution expenses | 345 | 366 | 987 | 1,026 |
Aircraft rent | 168 | 185 | 521 | 580 |
Special charges (Note 10) | 45 | 76 | 669 | 195 |
Other operating expenses | 1,431 | 1,296 | 3,998 | 3,782 |
Total operating expenses | 8,289 | 8,407 | 24,171 | 24,743 |
Operating income | 1,624 | 1,899 | 3,333 | 4,085 |
Nonoperating income (expense): | ||||
Interest expense | (150) | (164) | (466) | (504) |
Interest capitalized | 20 | 13 | 48 | 38 |
Interest income | 14 | 5 | 31 | 16 |
Miscellaneous, net (Note 10) | 2 | (147) | (11) | (321) |
Total other expense | (114) | (293) | (398) | (771) |
Income before income taxes | 1,510 | 1,606 | 2,935 | 3,314 |
Income tax expense (benefit) | 545 | (3,210) | 1,069 | (3,203) |
Net income | $ 965 | $ 4,816 | $ 1,866 | $ 6,517 |
Earnings per share, basic | $ 3.02 | $ 12.83 | $ 5.57 | $ 17.19 |
Earnings per share, diluted | $ 3.01 | $ 12.82 | $ 5.57 | $ 17.15 |
United Airlines, Inc. | ||||
Operating revenue: | ||||
Passenger-Mainline | $ 7,017 | $ 7,254 | $ 19,119 | $ 20,153 |
Passenger-Regional | 1,586 | 1,706 | 4,577 | 4,903 |
Total passenger revenue | 8,603 | 8,960 | 23,696 | 25,056 |
Cargo | 224 | 235 | 626 | 706 |
Other operating revenue | 1,086 | 1,111 | 3,182 | 3,066 |
Total revenue | 9,913 | 10,306 | 27,504 | 28,828 |
Operating expense: | ||||
Salaries and related costs | 2,625 | 2,534 | 7,707 | 7,289 |
Aircraft fuel | 1,603 | 1,934 | 4,258 | 5,904 |
Regional capacity purchase | 572 | 572 | 1,645 | 1,725 |
Landing fees and other rent | 546 | 551 | 1,612 | 1,647 |
Depreciation and amortization | 503 | 469 | 1,473 | 1,343 |
Aircraft maintenance materials and outside repairs | 451 | 424 | 1,301 | 1,252 |
Distribution expenses | 345 | 366 | 987 | 1,026 |
Aircraft rent | 168 | 185 | 521 | 580 |
Special charges (Note 10) | 45 | 76 | 669 | 195 |
Other operating expenses | 1,431 | 1,295 | 3,997 | 3,780 |
Total operating expenses | 8,289 | 8,406 | 24,170 | 24,741 |
Operating income | 1,624 | 1,900 | 3,334 | 4,087 |
Nonoperating income (expense): | ||||
Interest expense | (150) | (164) | (466) | (504) |
Interest capitalized | 20 | 13 | 48 | 38 |
Interest income | 14 | 5 | 31 | 16 |
Miscellaneous, net (Note 10) | 2 | (147) | (11) | (322) |
Total other expense | (114) | (293) | (398) | (772) |
Income before income taxes | 1,510 | 1,607 | 2,936 | 3,315 |
Income tax expense (benefit) | 545 | (3,169) | 1,069 | (3,163) |
Net income | $ 965 | $ 4,776 | $ 1,867 | $ 6,478 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 965 | $ 4,816 | $ 1,866 | $ 6,517 |
Other comprehensive income (loss), net change related to: | ||||
Fuel derivative financial instruments | 12 | (104) | 123 | 129 |
Employee benefit plans | (75) | (12) | (89) | 18 |
Investments and other | (1) | (6) | (1) | (2) |
Comprehensive income (loss) adjustments | (64) | (122) | 33 | 145 |
Total comprehensive income, net | 901 | 4,694 | 1,899 | 6,662 |
United Airlines, Inc. | ||||
Net income | 965 | 4,776 | 1,867 | 6,478 |
Other comprehensive income (loss), net change related to: | ||||
Fuel derivative financial instruments | 12 | (104) | 123 | 129 |
Employee benefit plans | (75) | (12) | (89) | 18 |
Investments and other | (1) | (6) | (1) | (1) |
Comprehensive income (loss) adjustments | (64) | (122) | 33 | 146 |
Total comprehensive income, net | $ 901 | $ 4,654 | $ 1,900 | $ 6,624 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 2,630 | $ 3,006 |
Short-term investments | 2,226 | 2,190 |
Receivables, less allowance for doubtful accounts (2016-$12; 2015-$18) | 1,481 | 1,128 |
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2016-$263; 2015-$235) | 842 | 738 |
Prepaid expenses and other | 791 | 766 |
Total current assets | 7,970 | 7,828 |
Operating property and equipment: Owned- | ||
Flight equipment | 25,093 | 23,728 |
Other property and equipment | 5,237 | 4,542 |
Operating property and equipment - owned, gross | 30,330 | 28,270 |
Less-Accumulated depreciation and amortization | (9,529) | (8,339) |
Operating property and equipment - owned, net | 20,801 | 19,931 |
Purchase deposits for flight equipment | 1,068 | 788 |
Capital leases- | ||
Flight equipment | 1,398 | 1,527 |
Other property and equipment | 337 | 332 |
Operating property and equipment - capital leases, gross | 1,735 | 1,859 |
Less-Accumulated amortization | (959) | (998) |
Operating property and equipment - capital leases, net | 776 | 861 |
Total property, plant, and equipment, net | 22,645 | 21,580 |
Other assets: | ||
Goodwill | 4,523 | 4,523 |
Intangibles, less accumulated amortization (2016-$1,212; 2015-$1,144) | 3,654 | 4,136 |
Deferred income taxes | 863 | 2,037 |
Restricted cash | 123 | 204 |
Other, net | 549 | 553 |
Other assets total | 9,712 | 11,453 |
Total assets | 40,327 | 40,861 |
Current liabilities: | ||
Advance ticket sales | 4,558 | 3,753 |
Accounts payable | 2,138 | 1,869 |
Frequent flyer deferred revenue | 2,168 | 2,117 |
Accrued salaries and benefits | 2,282 | 2,350 |
Current maturities of long-term debt | 969 | 1,224 |
Current maturities of capital leases | 124 | 135 |
Fuel derivative instruments | 4 | 124 |
Other | 1,010 | 842 |
Total current liabilities | 13,253 | 12,414 |
Long-term debt | 9,612 | 9,673 |
Long-term obligations under capital leases | 752 | 727 |
Other liabilities and deferred credits: | ||
Frequent flyer deferred revenue | 2,743 | 2,826 |
Postretirement benefit liability | 1,927 | 1,882 |
Pension liability | 1,220 | 1,488 |
Advanced purchase of miles | 574 | 1,010 |
Lease fair value adjustment, net | 299 | 359 |
Other | 1,508 | 1,516 |
Total Other liabilities and deferred credits | 8,271 | 9,081 |
Commitments and contingencies | ||
Stockholder's equity: | ||
Preferred stock | ||
Common stock | 4 | 4 |
Additional capital invested | 7,974 | 7,946 |
Retained earnings | 5,323 | 3,457 |
Stock held in treasury, at cost | (4,064) | (1,610) |
Accumulated other comprehensive loss | (798) | (831) |
Total stockholders' equity | 8,439 | 8,966 |
Total liabilities and stockholders' equity (deficit) | 40,327 | 40,861 |
United Airlines, Inc. | ||
Current assets: | ||
Cash and cash equivalents | 2,624 | 3,000 |
Short-term investments | 2,226 | 2,190 |
Receivables, less allowance for doubtful accounts (2016-$12; 2015-$18) | 1,481 | 1,128 |
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2016-$263; 2015-$235) | 842 | 738 |
Prepaid expenses and other | 840 | 813 |
Total current assets | 8,013 | 7,869 |
Operating property and equipment: Owned- | ||
Flight equipment | 25,093 | 23,728 |
Other property and equipment | 5,237 | 4,542 |
Operating property and equipment - owned, gross | 30,330 | 28,270 |
Less-Accumulated depreciation and amortization | (9,529) | (8,339) |
Operating property and equipment - owned, net | 20,801 | 19,931 |
Purchase deposits for flight equipment | 1,068 | 788 |
Capital leases- | ||
Flight equipment | 1,398 | 1,527 |
Other property and equipment | 337 | 332 |
Operating property and equipment - capital leases, gross | 1,735 | 1,859 |
Less-Accumulated amortization | (959) | (998) |
Operating property and equipment - capital leases, net | 776 | 861 |
Total property, plant, and equipment, net | 22,645 | 21,580 |
Other assets: | ||
Goodwill | 4,523 | 4,523 |
Intangibles, less accumulated amortization (2016-$1,212; 2015-$1,144) | 3,654 | 4,136 |
Deferred income taxes | 821 | 1,995 |
Restricted cash | 123 | 204 |
Other, net | 549 | 554 |
Other assets total | 9,670 | 11,412 |
Total assets | 40,328 | 40,861 |
Current liabilities: | ||
Advance ticket sales | 4,558 | 3,753 |
Accounts payable | 2,143 | 1,874 |
Frequent flyer deferred revenue | 2,168 | 2,117 |
Accrued salaries and benefits | 2,282 | 2,350 |
Current maturities of long-term debt | 969 | 1,224 |
Current maturities of capital leases | 124 | 135 |
Fuel derivative instruments | 4 | 124 |
Other | 1,009 | 840 |
Total current liabilities | 13,257 | 12,417 |
Long-term debt | 9,612 | 9,673 |
Long-term obligations under capital leases | 752 | 727 |
Other liabilities and deferred credits: | ||
Frequent flyer deferred revenue | 2,743 | 2,826 |
Postretirement benefit liability | 1,927 | 1,882 |
Pension liability | 1,220 | 1,488 |
Advanced purchase of miles | 574 | 1,010 |
Lease fair value adjustment, net | 299 | 359 |
Other | 1,509 | 1,516 |
Total Other liabilities and deferred credits | 8,272 | 9,081 |
Commitments and contingencies | ||
Stockholder's equity: | ||
Additional capital invested | 3,718 | 6,138 |
Retained earnings | 5,540 | 3,673 |
Accumulated other comprehensive loss | (798) | (831) |
Receivable from related parties | (25) | (17) |
Total stockholders' equity | 8,435 | 8,963 |
Total liabilities and stockholders' equity (deficit) | $ 40,328 | $ 40,861 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables, allowance for doubtful accounts | $ 12 | $ 18 |
Aircraft fuel, spare parts and supplies, obsolescence allowance | 263 | 235 |
Intangibles, accumulated amortization | $ 1,212 | $ 1,144 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common shares, authorized | 1,000,000,000 | 1,000,000,000 |
Common shares, outstanding | 317,905,672 | 364,609,108 |
United Airlines, Inc. | ||
Receivables, allowance for doubtful accounts | $ 12 | $ 18 |
Aircraft fuel, spare parts and supplies, obsolescence allowance | 263 | 235 |
Intangibles, accumulated amortization | $ 1,212 | $ 1,144 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common shares, authorized | 1,000 | 1,000 |
Common shares, issued | 1,000 | 1,000 |
Common shares, outstanding | 1,000 | 1,000 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities: | ||
Net cash provided by operating activities | $ 4,884 | $ 4,877 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (2,343) | (1,984) |
Purchases of short-term and other investments | (1,989) | (1,859) |
Proceeds from sale of short-term and other investments | 1,957 | 2,069 |
Decrease in restricted cash | 82 | 112 |
Proceeds from sale of property and equipment | 24 | 50 |
Investment in and loans to affiliates | (8) | (130) |
Other | (5) | 23 |
Net cash used in investing activities | (2,282) | (1,719) |
Cash Flows from Financing Activities: | ||
Repurchases of common stock | (2,442) | (710) |
Payments of long-term debt | (911) | (1,528) |
Proceeds from issuance of long-term debt | 510 | 613 |
Principal payments under capital leases | (95) | (80) |
Other, net | (40) | (28) |
Net cash used in financing activities | (2,978) | (1,733) |
Net (decrease) increase in cash and cash equivalents | (376) | 1,425 |
Cash and cash equivalents at beginning of the period | 3,006 | 2,002 |
Cash and cash equivalents at end of the period | 2,630 | 3,427 |
Investing and Financing Activities Not Affecting Cash: | ||
Property and equipment acquired through the issuance of debt | 115 | 797 |
Airport construction financing | 68 | 5 |
Operating lease conversions to capital lease | 12 | 285 |
Exchanges of certain convertible notes for common stock | 201 | |
United Airlines, Inc. | ||
Cash Flows from Operating Activities: | ||
Net cash provided by operating activities | 4,878 | 4,866 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (2,343) | (1,984) |
Purchases of short-term and other investments | (1,989) | (1,859) |
Proceeds from sale of short-term and other investments | 1,957 | 2,069 |
Decrease in restricted cash | 82 | 112 |
Proceeds from sale of property and equipment | 24 | 50 |
Investment in and loans to affiliates | (8) | (130) |
Other | (5) | 23 |
Net cash used in investing activities | (2,282) | (1,719) |
Cash Flows from Financing Activities: | ||
Dividend to UAL | (2,442) | (709) |
Payments of long-term debt | (911) | (1,528) |
Proceeds from issuance of long-term debt | 510 | 613 |
Principal payments under capital leases | (95) | (80) |
Other, net | (34) | (18) |
Net cash used in financing activities | (2,972) | (1,722) |
Net (decrease) increase in cash and cash equivalents | (376) | 1,425 |
Cash and cash equivalents at beginning of the period | 3,000 | 1,996 |
Cash and cash equivalents at end of the period | 2,624 | 3,421 |
Investing and Financing Activities Not Affecting Cash: | ||
Property and equipment acquired through the issuance of debt | 115 | 797 |
Airport construction financing | 68 | 5 |
Operating lease conversions to capital lease | $ 12 | $ 285 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2016 | |
Recently Issued Accounting Standards | NOTE 1 - RECENTLY ISSUED ACCOUNTING STANDARDS The Financial Accounting Standards Board (“FASB”) amended the FASB Accounting Standards Codification and created a new Topic 606, Revenue from Contracts with Customers Revenue Recognition, In February 2016, the FASB amended the FASB Accounting Standards Codification and created a new Topic 842, Leases Leases In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting 2016-09”) . 2016-09 In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments 2016-15”). Statement of Cash Flows 2016-15 The FASB issued Accounting Standards Update No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share | NOTE 2 - EARNINGS PER SHARE The computations of UAL’s basic and diluted earnings per share are set forth below (in millions, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic earnings per share: Earnings available to common stockholders $ 965 $ 4,816 $ 1,866 $ 6,517 Basic weighted-average shares outstanding 320 375 335 379 Earnings per share, basic $ 3.02 $ 12.83 $ 5.57 $ 17.19 Diluted earnings per share: Earnings available to common stockholders including the effect of dilutive securities $ 965 $ 4,816 $ 1,866 $ 6,517 Diluted shares outstanding: Basic weighted-average shares outstanding 320 375 335 379 Effect of employee stock awards 1 1 — 1 Diluted weighted-average shares outstanding 321 376 335 380 Earnings per share, diluted $ 3.01 $ 12.82 $ 5.57 $ 17.15 The number of antidilutive securities excluded from the computation of diluted earnings per share amounts was not material. In the three and nine months ended September 30, 2016, UAL repurchased 5 million and 48 million shares of UAL common stock in open market transactions, respectively, for $255 million and $2.4 billion, respectively. As of September 30, 2016, the Company had approximately $2 billion remaining to purchase shares under its existing share repurchase authority. UAL may repurchase shares through the open market, privately negotiated transactions, block trades or accelerated share repurchase transactions from time to time in accordance with applicable securities laws. UAL will repurchase shares of UAL common stock subject to prevailing market conditions, and may discontinue such repurchases at any time. See Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds” of this report for additional information. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) | NOTE 3 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The tables below present the components of the Company’s accumulated other comprehensive income (loss), net of tax (“AOCI”) (in millions): Deferred Taxes UAL (a) Pension and Fuel Investments Pension and Fuel Total Balance at June 30, 2016 $ (385) $ (41) $ 3 $ (146) $ (165) $ (734) Changes in value (124) (6) (2) 45 2 (85) Amounts reclassified to earnings 6 24 1 (2) (8) 21 Net change (118) 18 (1) 43 (6) (64) Balance at September 30, 2016 $ (503) $ (23) $ 2 $ (103) $ (171) (b) $ (798) Balance at December 31, 2015 $ (363) $ (215) $ 3 $ (154) $ (102) $ (831) Changes in value (157) (5) (2) 57 2 (105) Amounts reclassified to earnings 17 197 1 (6) (71) 138 Net change (140) 192 (1) 51 (69) 33 Balance at September 30, 2016 $ (503) $ (23) $ 2 $ (103) $ (171) (b) $ (798) Deferred Taxes UAL (a) Pension and Fuel Investments Pension and Fuel Total Balance at June 30, 2015 $ (442) $ (266) $ 11 $ (115) $ — (c) $ (812) Changes in value (10) (181) (6) (1) 82 (116) Amounts reclassified to earnings 8 150 — (9) (155) (6) Net change (2) (31) (6) (10) (73) (122) Balance at September 30, 2015 $ (444) $ (297) $ 5 $ (125) $ (73) $ (934) Balance at December 31, 2014 $ (472) $ (499) $ 7 $ (115) $ — (c) $ (1,079) Changes in value 3 (227) (1) (1) 82 (144) Amounts reclassified to earnings 25 429 (1) (9) (155) 289 Net change 28 202 (2) (10) (73) 145 Balance at September 30, 2015 $ (444) $ (297) $ 5 $ (125) $ (73) $ (934) Details about AOCI Components Amount Reclassified from AOCI to Income Affected Line Item in Three Months Ended Nine Months Ended 2016 2015 2016 2015 Fuel derivative contracts Reclassifications of losses into earnings $ 24 $ 150 $ 197 $ 429 Aircraft fuel Pension and other postretirement liabilities Amortization of unrecognized losses and prior service cost (credit) (d) 6 8 17 25 Salaries and related costs Investments and other Available-for-sale securities-reclassifications of gains into earnings 1 — 1 (1) Miscellaneous, net (a) UAL and United amounts are substantially the same except for an additional gain related to investments and other of $1 million at United for the nine months ended September 30, 2015. (b) Includes deferred income tax expense of $180 million that will remain in AOCI until all fuel derivatives which are designated for hedge accounting are settled. (c) Deferred tax balance was offset by the Company’s valuation allowance. (d) This AOCI component is included in the computation of net periodic pension and other postretirement costs (see Note 5 of this report for additional information). Prior to the release of the valuation allowance in the third quarter of 2015, the Company recorded $180 million of deferred income tax expense adjustments in AOCI related to losses on fuel hedges designated for hedge accounting. This deferred income tax expense of $180 million will remain in AOCI until all fuel derivatives which are designated for hedge accounting are settled. Currently, our fuel hedges that are designated for hedge accounting have settlement dates through December 2016. If we do not enter into and designate additional fuel derivative contracts for hedge accounting by the end of 2016, a non-cash income tax expense of $180 million will be recognized in the fourth quarter of 2016. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes | NOTE 4 - INCOME TAXES The Company’s effective tax rate for the three and nine months ended September 30, 2016 was 36% which represented a blend of federal, state and foreign taxes and the impact of certain nondeductible items. During 2015, after considering all positive and negative evidence, the Company concluded that its deferred income taxes would more likely than not be realized. The Company released substantially all of its valuation allowance in the third quarter of 2015, which resulted in a $3.2 billion benefit in its provision for income taxes. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Employee Benefit Plans | NOTE 5 - EMPLOYEE BENEFIT PLANS Defined Benefit Pension and Other Postretirement Benefit Plans. Pension Benefits Other Postretirement Benefits Three Months Ended Three Months Ended September 30, 2016 2015 2016 2015 Service cost $ 29 $ 31 $ 4 $ 5 Interest cost 50 50 22 20 Expected return on plan assets (54) (49) — — Amortization of unrecognized (gain) loss and prior service cost (credit) 19 21 (13) (13) Settlement loss 2 1 — — Curtailment gain — — (47) — Total $ 46 $ 54 $ (34) $ 12 Pension Benefits Other Postretirement Benefits Nine Months Ended Nine Months Ended September 30, 2016 2016 2015 2016 2015 Service cost $ 84 $ 93 $ 14 $ 15 Interest cost 151 150 66 61 Expected return on plan assets (162) (147) (1) (1) Amortization of unrecognized (gain) loss and prior service cost (credit) 57 65 (40) (40) Settlement loss 4 2 — — Curtailment gain — — (47) — Total $ 134 $ 163 $ (8) $ 35 During the three and nine months ended September 30, 2016, the Company contributed $240 million and $400 million, respectively, to its U.S. domestic tax-qualified defined benefit pension plans. Plan Curtailments. Share-Based Compensation. During 2016, UAL granted share-based compensation awards pursuant to the United Continental Holdings, Inc. 2008 Incentive Compensation Plan. These share-based compensation awards include approximately 0.4 million stock options, 0.4 million shares of restricted stock and 1.9 million restricted stock units (“RSUs”). The stock options vest in one-third increments over either (i) the first three anniversaries of the date of grant (for seven-year term options) or (ii) the fourth, fifth and sixth anniversaries of the date of grant (for ten-year term options). The restricted stock awards and the time-vested RSUs vest in one-third increments over the first three anniversaries of the date of grant. The time-vested RSUs are generally stock-settled for domestic employees and cash-settled for international employees based on the 20-day average closing price of UAL common stock immediately prior to the vesting date. The remainder of the RSUs are performance-based and vest based on the Company’s return on invested capital and the Company’s relative improvement in pre-tax margin for the three years ending December 31, 2018. If the applicable performance conditions are achieved, cash payments will be made after the end of the performance period based on the 20-day average closing price of UAL common stock immediately prior to the vesting date. The Company accounts for the performance-based RSUs as liability awards. The table below presents information related to share-based compensation (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Share-based compensation expense $ 23 $ 7 $ 36 $ 40 September 30, 2016 December 31, 2015 Unrecognized share-based compensation $ 79 $ 41 Profit Sharing Plans. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Financial Instruments and Fair Value Measurements | NOTE 6 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The table below presents disclosures about the financial assets and liabilities measured at fair value on a recurring basis in the Company’s financial statements (in millions): September 30, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 2,630 $ 2,630 $ — $ — $ 3,006 $ 3,006 $ — $ — Short-term investments: Corporate debt 861 — 861 — 891 — 891 — Asset-backed securities 764 — 764 — 710 — 710 — Certificates of deposit placed through an account registry service (“CDARS”) 252 — 252 — 281 — 281 — U.S. government and agency notes 97 — 97 — 72 — 72 — Auction rate securities — — — — 9 — — 9 Other fixed-income securities 50 — 50 — 26 — 26 — Other investments measured at NAV (a) 202 — — — 201 — — — Restricted cash 124 124 — — 206 206 — — Enhanced equipment trust certificates (“EETC”) 23 — — 23 26 — — 26 Fuel derivatives liability, net 4 — 4 — 124 — 124 — Foreign currency derivatives liability, net 1 — 1 — — — — — (a) In accordance with the relevant accounting standards, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The investments measured using NAV are shares of mutual funds that invest in fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. The Company can redeem its shares at any time at NAV subject to a three-day settlement period. Available-for-sale investment maturities Derivative instruments and investments presented in the tables above have the same fair value as their carrying value. 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 September 30, 2016 December 31, 2015 Carrying Fair Value Carrying Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Long-term debt $ 10,581 $ 11,218 $ — $ 8,359 $ 2,859 $ 10,897 $ 11,371 $ — $ 8,646 $ 2,725 Fair value of the financial instruments included in the tables above was determined as follows: Description Fair Value Methodology Cash and cash equivalents The carrying amounts approximate fair value because of the short-term maturity of these assets. Short-term investments and Fair value is based on (a) the trading prices of the investment or similar instruments, (b) an income approach, which uses valuation techniques to convert future amounts into a single present amount based on current market expectations about those future amounts when observable trading prices are not available, (c) internally-developed models of the expected future cash flows related to the securities, or (d) broker quotes obtained by third-party valuation services. Fuel derivatives Derivative contracts are privately negotiated contracts and are not exchange traded. Fair value measurements are estimated with option pricing models that employ observable inputs. Inputs to the valuation models include contractual terms, market prices, yield curves, fuel price curves and measures of volatility, among others. Foreign currency derivatives Fair value is determined with a formula utilizing observable inputs. Significant inputs to the valuation models include contractual terms, risk-free interest rates and forward exchange rates. Debt Fair values were based on either market prices or the discounted amount of future cash flows using our current incremental rate of borrowing for similar liabilities. |
Hedging Activities
Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
Hedging Activities | NOTE 7 - HEDGING ACTIVITIES Fuel Derivatives The Company may hedge a portion of its future fuel requirements to protect against increases in the price of fuel. The Company may restructure hedges in response to market conditions prior to their original settlement dates which may result in changes in hedge coverage levels and the potential recognition of gains or losses on such hedge contracts. As of September 30, 2016, the Company had hedged approximately 13% of its projected fuel requirements (126 million gallons) for the remainder of 2016 with commonly used financial hedge instruments based on aircraft fuel or crude oil. As of September 30, 2016, the Company had fuel hedges expiring through December 2016. As required, the Company assesses the effectiveness of each of its individual hedges on a quarterly basis. The Company also examines the effectiveness of its entire hedging program on a quarterly basis utilizing statistical analysis. This analysis involves utilizing regression and other statistical analyses that compare changes in the price of aircraft fuel to changes in the prices of the commodities used for hedging purposes. Upon proper qualification, the Company accounts for certain fuel derivative instruments as cash flow hedges. All derivatives designated as hedges that meet certain requirements are granted hedge accounting treatment. The types of instruments the Company utilizes that qualify for hedge accounting treatment typically include swaps, call options, collars (which consist of a purchased call option and a sold put option), four-way collars (a collar with a higher strike sold call option and a lower strike purchased put option) and other combinations of options. Generally, utilizing hedge accounting, all periodic changes in the fair value of derivatives designated as hedges that are considered to be effective are recorded in AOCI until the underlying fuel is consumed and recorded in fuel expense. The Company is exposed to the risk that its hedges may not be effective in offsetting changes in the cost of fuel and that its hedges may not continue to qualify for hedge accounting. Hedge ineffectiveness results when the change in the fair value of the derivative instrument exceeds the change in the value of the Company’s expected future cash outlay to purchase and consume fuel. To the extent that the periodic changes in the fair value of the derivatives are not effective, that ineffectiveness is classified as Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. The Company also uses certain combinations of derivative contracts that are economic hedges but do not qualify for hedge accounting under GAAP. Additionally, the Company may enter into contracts at different times and later combine those contracts into structures designated for hedge accounting. As with derivatives that qualify for hedge accounting, the economic hedges and individual contracts are part of the Company’s program to mitigate the adverse financial impact of potential increases in the price of fuel. The Company records changes in the fair value of these various contracts that are not designated for hedge accounting to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. If the Company settles a derivative prior to its contractual settlement date, then the cumulative gain or loss recognized in AOCI at the termination date remains in AOCI until the forecasted transaction occurs. In a situation where it becomes probable that a hedged forecasted transaction will not occur, any gains and/or losses that have been recorded to AOCI would be required to be immediately reclassified into earnings. All cash flows associated with purchasing and settling derivatives are classified as operating cash flows in the condensed statements of consolidated cash flows. In addition to cash flow hedges, the Company from time to time enters into fair value hedges related to its aircraft fuel inventory using derivatives such as swaps and futures contracts based on aircraft fuel. Under fair value hedge accounting, the Company records changes in the fair value of both the hedging derivative and the hedged aircraft fuel inventory as fuel expense. The Company records ineffectiveness on fair value hedges as Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. As of September 30, 2016, the Company did not have any fair value hedges. The Company records each derivative instrument as a derivative asset or liability (on a gross basis) in its consolidated balance sheets , The Company’s derivatives were reported in its consolidated balance sheets as follows (in millions): Classification Balance Sheet Location September 30, December 31, Derivatives designated as cash flow hedges Liabilities: Fuel contracts due within one year Fuel derivative instruments $ 4 $ 119 Derivatives not designated for hedge accounting Liabilities: Fuel contracts due within one year Fuel derivative instruments $ — $ 5 Total derivatives Total liabilities $ 4 $ 124 Derivative Credit Risk and Fair Value The Company is exposed to credit losses in the event of non-performance by counterparties to its derivative instruments. While the Company records derivative instruments on a gross basis, the Company monitors its net derivative position with each counterparty to monitor credit risk. Based on the fair value of our fuel derivative instruments, our counterparties may require us to post collateral when the price of the underlying commodity decreases, and we may require our counterparties to provide us with collateral when the price of the underlying commodity increases. The Company did not hold or post collateral as of September 30, 2016. The Company had on deposit $26 million of collateral with fuel derivative counterparties as of December 31, 2015. The collateral is recorded as Prepaid expenses and other on the Company’s balance sheets. We have master trading agreements with all of our fuel hedging counterparties that allow us to net our fuel hedge derivative positions. We have elected not to net the fair value positions recorded on our consolidated balance sheets. The following table shows the potential net fair value positions (including fuel derivatives and related collateral) had we elected to offset. The table reflects offset at the counterparty level (in millions): September 30, December 31, Fuel derivative instruments, net of collateral $ (4) $ (98) The following tables present the impact of derivative instruments and their location within the Company’s unaudited statements of consolidated operations (in millions): Derivatives designated as cash flow hedges Amount of Loss in AOCI on Derivatives (Effective Portion) Loss Reclassified from AOCI into Fuel Expense Amount of Loss Three Months Ended Three Months Ended Three Months Ended 2016 2015 2016 2015 2016 2015 Fuel contracts $ (6) $ (181) $ (24) $ (150) $ — $ — Derivatives designated as cash flow hedges Amount of Loss in AOCI on Derivatives (Effective Portion) Loss Reclassified from Fuel Expense Amount of Loss Nine Months Ended Nine Months Ended Nine Months Ended 2016 2015 2016 2015 2016 2015 Fuel contracts $ (5) $ (227) $ (197) $ (429) $ — $ — Derivatives not designated for hedge accounting Fuel contracts Three Months Ended Nine Months Ended 2016 2015 2016 2015 Amount of loss recognized in Nonoperating income (expense): Miscellaneous, net $ — $ (67) $ — $ (69) Foreign Currency Derivatives The Company generates revenues and incurs expenses in numerous foreign currencies. Changes in foreign currency exchange rates impact the Company’s results of operations through changes in the dollar value of foreign currency-denominated operating revenues and expenses. Some of the Company’s more significant foreign currency exposures include the Canadian dollar, Chinese renminbi, European euro, British pound and Japanese yen. At times, the Company uses derivative financial instruments, such as options, collars and forward contracts, to hedge its exposure to foreign currency. At September 30, 2016, the Company had foreign currency derivative contracts in place to hedge both European euro denominated sales and Japanese yen denominated sales. The notional amount of the hedges equates to 16% of the Company’s projected European euro denominated net cash inflows for the remainder of 2016; and 18% of the Company’s projected Japanese yen denominated net cash inflows for the remainder of 2016. Net cash relates primarily to passenger ticket sales inflows, partially offset by expenses paid in local currencies. At September 30, 2016, the fair value of the Company’s foreign currency derivatives was a liability of $1 million. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies | NOTE 8 - COMMITMENTS AND CONTINGENCIES Commitments. Aircraft Type Number of Firm Commitments (a) Airbus A350-1000 35 Boeing 737NG/737 MAX 172 Boeing 777-300ER 14 Boeing 787-8/-9/-10 21 (a) United also has options and purchase rights for additional aircraft. The aircraft listed in the table above are scheduled for delivery through 2024. For the remainder of 2016, United expects to take delivery of seven Boeing 737NG aircraft and one Boeing 777-300ER The table below summarizes United’s commitments as of September 30, 2016, which primarily relate to the acquisition of aircraft and related spare engines, aircraft improvements and include other commitments primarily to acquire information technology services and assets. Any new firm aircraft orders, including through the exercise of purchase options and purchase rights, will increase the total future capital commitments of the Company. (in billions) Last three months of 2016 $ 1.2 2017 4.5 2018 4.1 2019 3.3 2020 2.6 After 2020 6.9 $ 22.6 As of September 30, 2016, United had $1.7 billion in financing available through EETC transactions for the financing of all of its aircraft deliveries scheduled for the remainder of 2016 and first half of 2017. See Note 9 of this report for additional information on aircraft financing. The Company has also secured backstop financing commitments from certain of its aircraft manufacturers for a limited number of its future aircraft deliveries, subject to certain customary conditions. Financing may be necessary to satisfy the Company’s capital commitments for its firm order aircraft and other related capital expenditures. Facility and Other Operating Leases. (In millions) Facility and Other Operating Leases Last three months of 2016 $ 200 2017 1,156 2018 1,024 2019 954 2020 1,083 After 2020 7,450 $ 11,867 Guarantees. In the Company’s financing transactions that include loans, the Company typically agrees to reimburse lenders for any reduced returns with respect to the loans due to any change in capital requirements and, in the case of loans in which the interest rate is based on the London Interbank Offered Rate (“LIBOR”), for certain other increased costs that the lenders incur in carrying these loans as a result of any change in law, subject, in most cases, to obligations of the lenders to take certain limited steps to mitigate the requirement for, or the amount of, such increased costs. At September 30, 2016, the Company had $2.5 billion of floating rate debt and $97 million of fixed rate debt, with remaining terms of up to 12 years, that are subject to these increased cost provisions. In several financing transactions involving loans or leases from non-U.S. entities, with remaining terms of up to 12 years and an aggregate balance of $2.6 billion, the Company bears the risk of any change in tax laws that would subject loan or lease payments thereunder to non-U.S. entities to withholding taxes, subject to customary exclusions. As of September 30, 2016, United is the guarantor of $171 million of aircraft mortgage debt issued by one of United’s regional carriers. The aircraft mortgage debt is subject to similar increased cost provisions as described above for the Company’s debt and the Company would potentially be responsible for those costs under the guarantees. Labor Negotiations. In January 2016, United’s pilots, represented by the Air Line Pilots Association, International, agreed to extend their contract through January 31, 2019. Increases in the pay and benefits resulting from new pilot agreements could activate United pilot contract clauses requiring the Company to match contract terms. In March 2016, the Company’s dispatchers, represented by the Professional Airline Flight Control Association, agreed to extend their current contract through 2021. In April 2016, the fleet service, passenger service, storekeeper and other employees represented by the Int’l Association of Machinists and Aerospace Workers (“IAM”) ratified seven new contracts with the Company which extended the contracts through 2021. In August 2016, United’s flight attendants, represented by the AFA, ratified a five-year joint collective bargaining agreement through 2021. In September 2016, the Company reached a tentative agreement with the Int’l Brotherhood of Teamsters (the “IBT”) for a six-year joint collective bargaining agreement with its technicians and related employees. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt | NOTE 9 - DEBT As of September 30, 2016, a substantial portion of the Company’s assets, principally aircraft, route authorities, airport slots and loyalty program intangible assets, was pledged under various loan and other agreements. As of September 30, 2016, UAL and United were in compliance with their debt covenants. As of September 30, 2016, United had its entire capacity of $1.35 billion available under the revolving credit facility of the Company’s 2013 Credit and Guaranty Agreement (the “Credit Agreement”). EETCs . EETC Date Class Principal Final expected Stated Total debt recorded Remaining September 2016 AA $ 637 October 2028 2.875% $ — $ 637 September 2016 A 283 October 2028 3.10% — 283 June 2016 AA 729 July 2028 3.10% 222 507 June 2016 A 324 July 2028 3.45% 99 225 $ 1,973 $ 321 $ 1,652 In 2016, United borrowed approximately $272 million aggregate principal amount from various financial institutions to finance the purchase of several aircraft delivered in 2016. The notes evidencing these borrowings, which are secured by the related aircraft, mature in 2028 and have interest rates comprised of LIBOR plus a specified margin. 4.5% Convertible Notes due 2015. 6% Notes due 2026. 6% Notes due 2028. |
Special Items
Special Items | 9 Months Ended |
Sep. 30, 2016 | |
Special Items | NOTE 10 - SPECIAL ITEMS For the three and nine months ended September 30, special items consisted of the following (in millions): Three Months Ended Nine Months Ended Operating: 2016 2015 2016 2015 Labor agreement costs $ 14 $ — $ 124 $ — Severance and benefit costs 13 28 27 103 Impairment of intangible asset related to Newark Liberty International Airport (“Newark”) slots — — 412 — Cleveland airport lease restructuring — — 74 — (Gains) losses on sale of assets and other special charges 18 48 32 92 Special charges 45 76 669 195 Nonoperating and income taxes: Losses on extinguishment of debt and other — 61 (1) 195 Income tax benefit related to special charges (16) — (241) — Total special charges, net of tax 29 137 427 390 Income tax valuation allowance release (Note 4) — (3,218) — (3,218) Total special items $ 29 $ (3,081) $ 427 $ (2,828) The fleet service, passenger service, storekeeper and other employees represented by the IAM ratified seven new contracts with the Company which extended the contracts through 2021. The Company also reached a tentative agreement with the IBT. During the three and nine months ended September 30, 2016, the Company recorded $61 million ($39 million net of taxes) and $171 million ($109 million net of taxes), respectively, of special charges primarily for payments to be made in conjunction with the IAM and IBT agreements described above. Also, as part of the recently ratified contract with the AFA, the Company amended two of its flight attendant postretirement medical plans. The amendments triggered curtailment accounting, resulting in the recognition of a one-time $47 million gain ($30 million net of taxes) for accelerated recognition of a prior service credit. During the three and nine months ended September 30, 2016, the Company recorded $13 million ($8 million net of taxes) and $27 million ($17 million net of taxes), respectively, of severance and benefit costs. During the three and nine months ended September 30, 2015, the Company recorded $28 million and $103 million, respectively, of severance and benefit costs. The severance and benefit costs relate to a voluntary early-out program for the Company’s flight attendants and other severance agreements. In 2014, more than 2,500 flight attendants elected to voluntarily separate from the Company for a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through the end of 2016. In April 2016, the Federal Aviation Administration (“FAA”) announced that it will designate Newark as a Level 2 schedule-facilitated airport under the International Air Transport Association Worldwide Slot Guidelines effective October 30, 2016. The designation was associated with an updated demand and capacity analysis of Newark by the FAA. In the second quarter of 2016, the Company determined that the FAA’s action impaired the entire value of its Newark slots because the slots will no longer be the mechanism that governs take-off and landing rights. Accordingly, the Company recorded a $412 million special charge ($264 million net of taxes) to write off the intangible asset. The Newark slots served as part of the collateral for the term loans under the Company’s Credit Agreement and under the Second Amended and Restated Co-Branded Card Marketing Services Agreement with Chase Bank USA, N.A. (the “Chase Agreement”). The Credit Agreement and the Chase Agreement have been amended to remove the Newark slots as collateral with no replacement collateral required. During the nine months ended September 30, 2016, the City of Cleveland agreed to amend the lease, which runs through 2029, associated with certain excess airport terminal space (principally Terminal D) and related facilities at Hopkins International Airport. The Company recorded an accrual for remaining payments under the lease for facilities that the Company no longer uses and will continue to incur costs under the lease without economic benefit to the Company. This liability was measured and recorded at its fair value when the Company ceased its right to use such facilities leased to it pursuant to the lease. The Company recorded a net charge of $74 million ($47 million net of taxes) related to the amended lease. During the three and nine months ended September 30, 2016, the Company recorded gains and losses on sale of assets and other special charges of $18 million ($12 million net of taxes) and $32 million ($20 million net of taxes), respectively. During the three and nine months ended September 30, 2015, the Company recorded $48 million and $92 million, respectively, for integration costs, impairment of assets and other special gains and losses. During the nine months ended September 30, 2016, the Company recorded $8 million ($5 million net of taxes) of losses due to exchange rate changes in Venezuela applicable to funds held in local currency and recorded a $9 million ($6 million net of taxes) gain on the sale of an affiliate. During the third quarter of 2015, the Company recorded $61 million of losses due to exchange rate changes in Venezuela applicable to funds held in local currency. During the nine months ended September 30, 2015, the Company recorded a charge of $134 million due to the write-off of the unamortized non-cash debt discount related to the extinguishment of the 2026 Notes and 2028 Notes. Both of the charges were recorded as part of Nonoperating income (expense): Miscellaneous, net. Accruals The accrual balance for severance and benefits was $34 million as of September 30, 2016, compared to $110 million as of September 30, 2015. The severance-related accrual as of September 30, 2016 is expected to be mostly paid through 2016. The following is a reconciliation of severance accrual activity for the period: Severance and Balance at December 31, 2015 $ 27 Accrual 27 Payments (20) Balance at September 30, 2016 $ 34 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Computation of Earnings Per Share | The computations of UAL’s basic and diluted earnings per share are set forth below (in millions, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic earnings per share: Earnings available to common stockholders $ 965 $ 4,816 $ 1,866 $ 6,517 Basic weighted-average shares outstanding 320 375 335 379 Earnings per share, basic $ 3.02 $ 12.83 $ 5.57 $ 17.19 Diluted earnings per share: Earnings available to common stockholders including the effect of dilutive securities $ 965 $ 4,816 $ 1,866 $ 6,517 Diluted shares outstanding: Basic weighted-average shares outstanding 320 375 335 379 Effect of employee stock awards 1 1 — 1 Diluted weighted-average shares outstanding 321 376 335 380 Earnings per share, diluted $ 3.01 $ 12.82 $ 5.57 $ 17.15 |
Accumulated Other Comprehensi18
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | The tables below present the components of the Company’s accumulated other comprehensive income (loss), net of tax (“AOCI”) (in millions): Deferred Taxes UAL (a) Pension and Fuel Investments Pension and Fuel Total Balance at June 30, 2016 $ (385) $ (41) $ 3 $ (146) $ (165) $ (734) Changes in value (124) (6) (2) 45 2 (85) Amounts reclassified to earnings 6 24 1 (2) (8) 21 Net change (118) 18 (1) 43 (6) (64) Balance at September 30, 2016 $ (503) $ (23) $ 2 $ (103) $ (171) (b) $ (798) Balance at December 31, 2015 $ (363) $ (215) $ 3 $ (154) $ (102) $ (831) Changes in value (157) (5) (2) 57 2 (105) Amounts reclassified to earnings 17 197 1 (6) (71) 138 Net change (140) 192 (1) 51 (69) 33 Balance at September 30, 2016 $ (503) $ (23) $ 2 $ (103) $ (171) (b) $ (798) Deferred Taxes UAL (a) Pension and Fuel Investments Pension and Fuel Total Balance at June 30, 2015 $ (442) $ (266) $ 11 $ (115) $ — (c) $ (812) Changes in value (10) (181) (6) (1) 82 (116) Amounts reclassified to earnings 8 150 — (9) (155) (6) Net change (2) (31) (6) (10) (73) (122) Balance at September 30, 2015 $ (444) $ (297) $ 5 $ (125) $ (73) $ (934) Balance at December 31, 2014 $ (472) $ (499) $ 7 $ (115) $ — (c) $ (1,079) Changes in value 3 (227) (1) (1) 82 (144) Amounts reclassified to earnings 25 429 (1) (9) (155) 289 Net change 28 202 (2) (10) (73) 145 Balance at September 30, 2015 $ (444) $ (297) $ 5 $ (125) $ (73) $ (934) Details about AOCI Components Amount Reclassified from AOCI to Income Affected Line Item in Three Months Ended Nine Months Ended 2016 2015 2016 2015 Fuel derivative contracts Reclassifications of losses into earnings $ 24 $ 150 $ 197 $ 429 Aircraft fuel Pension and other postretirement liabilities Amortization of unrecognized losses and prior service cost (credit) (d) 6 8 17 25 Salaries and related costs Investments and other Available-for-sale securities-reclassifications of gains into earnings 1 — 1 (1) Miscellaneous, net (a) UAL and United amounts are substantially the same except for an additional gain related to investments and other of $1 million at United for the nine months ended September 30, 2015. (b) Includes deferred income tax expense of $180 million that will remain in AOCI until all fuel derivatives which are designated for hedge accounting are settled. (c) Deferred tax balance was offset by the Company’s valuation allowance. (d) This AOCI component is included in the computation of net periodic pension and other postretirement costs (see Note 5 of this report for additional information). |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Components of Net Periodic Benefit Cost | The Company’s net periodic benefit cost includes the following components (in millions): Pension Benefits Other Postretirement Benefits Three Months Ended Three Months Ended September 30, 2016 2015 2016 2015 Service cost $ 29 $ 31 $ 4 $ 5 Interest cost 50 50 22 20 Expected return on plan assets (54) (49) — — Amortization of unrecognized (gain) loss and prior service cost (credit) 19 21 (13) (13) Settlement loss 2 1 — — Curtailment gain — — (47) — Total $ 46 $ 54 $ (34) $ 12 Pension Benefits Other Postretirement Benefits Nine Months Ended Nine Months Ended September 30, 2016 2016 2015 2016 2015 Service cost $ 84 $ 93 $ 14 $ 15 Interest cost 151 150 66 61 Expected return on plan assets (162) (147) (1) (1) Amortization of unrecognized (gain) loss and prior service cost (credit) 57 65 (40) (40) Settlement loss 4 2 — — Curtailment gain — — (47) — Total $ 134 $ 163 $ (8) $ 35 |
Share-Based Compensation Expense | The table below presents information related to share-based compensation (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Share-based compensation expense $ 23 $ 7 $ 36 $ 40 September 30, 2016 December 31, 2015 Unrecognized share-based compensation $ 79 $ 41 |
Financial Instruments and Fai20
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents disclosures about the financial assets and liabilities measured at fair value on a recurring basis in the Company’s financial statements (in millions): September 30, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 2,630 $ 2,630 $ — $ — $ 3,006 $ 3,006 $ — $ — Short-term investments: Corporate debt 861 — 861 — 891 — 891 — Asset-backed securities 764 — 764 — 710 — 710 — Certificates of deposit placed through an account registry service (“CDARS”) 252 — 252 — 281 — 281 — U.S. government and agency notes 97 — 97 — 72 — 72 — Auction rate securities — — — — 9 — — 9 Other fixed-income securities 50 — 50 — 26 — 26 — Other investments measured at NAV (a) 202 — — — 201 — — — Restricted cash 124 124 — — 206 206 — — Enhanced equipment trust certificates (“EETC”) 23 — — 23 26 — — 26 Fuel derivatives liability, net 4 — 4 — 124 — 124 — Foreign currency derivatives liability, net 1 — 1 — — — — — |
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 September 30, 2016 December 31, 2015 Carrying Fair Value Carrying Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Long-term debt $ 10,581 $ 11,218 $ — $ 8,359 $ 2,859 $ 10,897 $ 11,371 $ — $ 8,646 $ 2,725 |
Hedging Activities (Tables)
Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Description of Derivative Instruments | The Company’s derivatives were reported in its consolidated balance sheets as follows (in millions): Classification Balance Sheet Location September 30, December 31, Derivatives designated as cash flow hedges Liabilities: Fuel contracts due within one year Fuel derivative instruments $ 4 $ 119 Derivatives not designated for hedge accounting Liabilities: Fuel contracts due within one year Fuel derivative instruments $ — $ 5 Total derivatives Total liabilities $ 4 $ 124 |
Offsetting Liabilities | The following table shows the potential net fair value positions (including fuel derivatives and related collateral) had we elected to offset. The table reflects offset at the counterparty level (in millions): September 30, December 31, Fuel derivative instruments, net of collateral $ (4) $ (98) |
Schedule of Losses on Derivative Instruments | The following tables present the impact of derivative instruments and their location within the Company’s unaudited statements of consolidated operations (in millions): Derivatives designated as cash flow hedges Amount of Loss in AOCI on Derivatives (Effective Portion) Loss Reclassified from AOCI into Fuel Expense Amount of Loss Three Months Ended Three Months Ended Three Months Ended 2016 2015 2016 2015 2016 2015 Fuel contracts $ (6) $ (181) $ (24) $ (150) $ — $ — Derivatives designated as cash flow hedges Amount of Loss in AOCI on Derivatives (Effective Portion) Loss Reclassified from Fuel Expense Amount of Loss Nine Months Ended Nine Months Ended Nine Months Ended 2016 2015 2016 2015 2016 2015 Fuel contracts $ (5) $ (227) $ (197) $ (429) $ — $ — |
Schedule of Derivative Instruments not Designated as Hedges Losses | Derivatives not designated for hedge accounting Fuel contracts Three Months Ended Nine Months Ended 2016 2015 2016 2015 Amount of loss recognized in Nonoperating income (expense): Miscellaneous, net $ — $ (67) $ — $ (69) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Commitments to Purchase Aircrafts | The table below summarizes United’s commitments as of September 30, 2016, which primarily relate to the acquisition of aircraft and related spare engines, aircraft improvements and include other commitments primarily to acquire information technology services and assets. Any new firm aircraft orders, including through the exercise of purchase options and purchase rights, will increase the total future capital commitments of the Company. (in billions) Last three months of 2016 $ 1.2 2017 4.5 2018 4.1 2019 3.3 2020 2.6 After 2020 6.9 $ 22.6 |
Future Minimum Lease Payments for Capital and Operating Leases | The table below summarizes the Company’s scheduled future minimum lease payments under facility operating leases having initial or remaining noncancelable lease terms of more than one year. (In millions) Facility and Other Operating Leases Last three months of 2016 $ 200 2017 1,156 2018 1,024 2019 954 2020 1,083 After 2020 7,450 $ 11,867 |
Aircraft Type | |
Schedule of Commitments to Purchase Aircrafts | As of September 30, 2016, United had firm commitments and options to purchase aircraft from The Boeing Company (“Boeing”) and Airbus S.A.S. (“Airbus”) presented in the table below: Aircraft Type Number of Firm Commitments (a) Airbus A350-1000 35 Boeing 737NG/737 MAX 172 Boeing 777-300ER 14 Boeing 787-8/-9/-10 21 (a) United also has options and purchase rights for additional aircraft. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Details of Pass Through Trusts | Certain details of the pass-through trusts with proceeds received from issuance of debt in 2016 are as follows (in millions, except stated interest rate): EETC Date Class Principal Final expected Stated Total debt recorded Remaining September 2016 AA $ 637 October 2028 2.875% $ — $ 637 September 2016 A 283 October 2028 3.10% — 283 June 2016 AA 729 July 2028 3.10% 222 507 June 2016 A 324 July 2028 3.45% 99 225 $ 1,973 $ 321 $ 1,652 |
Special Items (Tables)
Special Items (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Components of Special Items | For the three and nine months ended September 30, special items consisted of the following (in millions): Three Months Ended Nine Months Ended Operating: 2016 2015 2016 2015 Labor agreement costs $ 14 $ — $ 124 $ — Severance and benefit costs 13 28 27 103 Impairment of intangible asset related to Newark Liberty International Airport (“Newark”) slots — — 412 — Cleveland airport lease restructuring — — 74 — (Gains) losses on sale of assets and other special charges 18 48 32 92 Special charges 45 76 669 195 Nonoperating and income taxes: Losses on extinguishment of debt and other — 61 (1) 195 Income tax benefit related to special charges (16) — (241) — Total special charges, net of tax 29 137 427 390 Income tax valuation allowance release (Note 4) — (3,218) — (3,218) Total special items $ 29 $ (3,081) $ 427 $ (2,828) |
Schedule of Severance Related Accruals | The following is a reconciliation of severance accrual activity for the period: Severance and Balance at December 31, 2015 $ 27 Accrual 27 Payments (20) Balance at September 30, 2016 $ 34 |
Recently Issued Accounting St25
Recently Issued Accounting Standards - Additional Information (Detail) - Recently Issued Accounting Standards $ in Millions | Sep. 30, 2016USD ($) |
Pension Benefits | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Pension plan investments measured at net asset value per share | $ 1,900 |
Short-term Investments | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Investments in certain entities that calculate net asset value per share included in short-term investments | $ 202 |
Computation of Earnings Per Sha
Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic earnings per share: | ||||
Earnings available to common stockholders | $ 965 | $ 4,816 | $ 1,866 | $ 6,517 |
Basic weighted-average shares outstanding | 320 | 375 | 335 | 379 |
Earnings per share, basic | $ 3.02 | $ 12.83 | $ 5.57 | $ 17.19 |
Diluted earnings per share: | ||||
Earnings available to common stockholders including the effect of dilutive securities | $ 965 | $ 4,816 | $ 1,866 | $ 6,517 |
Diluted shares outstanding: | ||||
Basic weighted-average shares outstanding | 320 | 375 | 335 | 379 |
Effect of employee stock awards | 1 | 1 | 1 | |
Diluted weighted-average shares outstanding | 321 | 376 | 335 | 380 |
Earnings per share, diluted | $ 3.01 | $ 12.82 | $ 5.57 | $ 17.15 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($)shares | Sep. 30, 2016USD ($)shares | |
Earnings Loss Per Share [Line Items] | ||
Amount remaining under repurchase programs | $ 2,000 | $ 2,000 |
Open Market Repurchase Program | ||
Earnings Loss Per Share [Line Items] | ||
Number of shares repurchased | shares | 5 | 48 |
Repurchases of common stock | $ 255 | $ 2,400 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning Balance | $ 8,966 | ||||||
Comprehensive income (loss) adjustments | $ (64) | $ (122) | 33 | $ 145 | |||
Ending Balance | 8,439 | 8,439 | |||||
Pension and Other Postretirement Liabilities | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning Balance | [1] | (385) | (442) | (363) | (472) | ||
Changes in value | [1] | (124) | (10) | (157) | 3 | ||
Amounts reclassified to earnings | [1] | 6 | 8 | 17 | 25 | ||
Comprehensive income (loss) adjustments | [1] | (118) | (2) | (140) | 28 | ||
Ending Balance | [1] | (503) | (444) | (503) | (444) | ||
Derivative Contracts | Fuel | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning Balance | [1] | (41) | (266) | (215) | (499) | ||
Changes in value | [1] | (6) | (181) | (5) | (227) | ||
Amounts reclassified to earnings | [1] | 24 | 150 | 197 | 429 | ||
Comprehensive income (loss) adjustments | [1] | 18 | (31) | 192 | 202 | ||
Ending Balance | [1] | (23) | (297) | (23) | (297) | ||
Investments and Other | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning Balance | [1] | 3 | 11 | 3 | 7 | ||
Changes in value | [1] | (2) | (6) | (2) | (1) | ||
Amounts reclassified to earnings | [1] | 1 | 1 | (1) | |||
Comprehensive income (loss) adjustments | [1] | (1) | (6) | (1) | (2) | ||
Ending Balance | [1] | 2 | 5 | 2 | 5 | ||
Pension and Other Postretirement Deferred Taxes | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning Balance | [1] | (146) | (115) | (154) | (115) | ||
Changes in value | [1] | 45 | (1) | 57 | (1) | ||
Amounts reclassified to earnings | [1] | (2) | (9) | (6) | (9) | ||
Comprehensive income (loss) adjustments | [1] | 43 | (10) | 51 | (10) | ||
Ending Balance | [1] | (103) | (125) | (103) | (125) | ||
Derivative Contracts Deferred Taxes | Fuel | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning Balance | [1] | (165) | (102) | ||||
Changes in value | [1] | 2 | 82 | 2 | 82 | ||
Amounts reclassified to earnings | [1] | (8) | (155) | (71) | (155) | ||
Comprehensive income (loss) adjustments | [1] | (6) | (73) | (69) | (73) | ||
Ending Balance | [1] | (171) | [2] | (73) | (171) | [2] | (73) |
Accumulated Other Comprehensive Income (Loss) | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Beginning Balance | [1] | (734) | (812) | (831) | (1,079) | ||
Changes in value | [1] | (85) | (116) | (105) | (144) | ||
Amounts reclassified to earnings | [1] | 21 | (6) | 138 | 289 | ||
Comprehensive income (loss) adjustments | [1] | (64) | (122) | 33 | 145 | ||
Ending Balance | [1] | $ (798) | $ (934) | $ (798) | $ (934) | ||
[1] | UAL and United amounts are substantially the same except for an additional gain related to investments and other of $1 million at United for the nine months ended September 30, 2015. | ||||||
[2] | Includes deferred income tax expense of $180 million that will remain in AOCI until all fuel derivatives which are designated for hedge accounting are settled. |
Details about Accumulated Other
Details about Accumulated Other Comprehensive Income Components (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Salaries And Related Costs | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Amortization of unrecognized losses and prior service cost (credit) | [1] | $ 6 | $ 8 | $ 17 | $ 25 |
Miscellaneous, Net | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Available-for-sale securities-reclassifications of gains into earnings | 1 | 1 | (1) | ||
Fuel Oil Contract | Aircraft Fuel | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassifications of losses into earnings | $ 24 | $ 150 | $ 197 | $ 429 | |
[1] | This AOCI component is included in the computation of net periodic pension and other postretirement costs (see Note 5 of this report for additional information). |
Details about Accumulated Oth30
Details about Accumulated Other Comprehensive Income Components (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2015 | |
United Airlines, Inc. | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Additional gain related to investments and other | $ 1 | |
Fuel | Designated as Hedging Instrument | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Deferred income tax expense | $ 180 | |
Fuel | Designated as Hedging Instrument | Pension and Other Postretirement Deferred Taxes | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Deferred income tax expense | $ 180 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - Fuel - Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Deferred income tax expense | $ 180 | |
Scenario Forecast | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Deferred income tax expense | $ 180 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Taxes [Line Items] | ||||
Effective income tax rate | 36.00% | 36.00% | ||
Income tax benefit associated with valuation allowance release | $ 3,218 | $ 3,218 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 29 | $ 31 | $ 84 | $ 93 |
Interest cost | 50 | 50 | 151 | 150 |
Expected return on plan assets | (54) | (49) | (162) | (147) |
Amortization of unrecognized (gain) loss and prior service cost (credit) | 19 | 21 | 57 | 65 |
Settlement loss | 2 | 1 | 4 | 2 |
Total | 46 | 54 | 134 | 163 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 4 | 5 | 14 | 15 |
Interest cost | 22 | 20 | 66 | 61 |
Expected return on plan assets | (1) | (1) | ||
Amortization of unrecognized (gain) loss and prior service cost (credit) | (13) | (13) | (40) | (40) |
Curtailment gain | (47) | (47) | ||
Total | $ (34) | $ 12 | $ (8) | $ 35 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer contribution to tax-qualified defined benefit pension plans | $ 240 | $ 400 | |
Postretirement Medical Plan | Flight Attendant Postretirement Medical Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Curtailment gain recognition of prior service credit | $ 47 | $ 47 | |
Defined benefit plan, discount rate | 3.43% | 3.43% | 4.52% |
Increase in projected benefit obligation of the plans | $ 49 | ||
Increase in other comprehensive loss due to actuarial loss | $ (96) | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of pre-tax earnings paid for profit sharing plan | 5.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of pre-tax earnings paid for profit sharing plan | 20.00% | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, other than options, awards granted | 1.9 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, other than options, awards granted | 0.4 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation, vesting period | 3 years | ||
Share-Based Compensation, vesting date | Dec. 31, 2018 | ||
Number of days used to compute performance period average closing price of restricted stock units | 20 days | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, options, awards granted | 0.4 | ||
Employee Stock Option | First three anniversaries of the date of grant (seven-year term option) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation, options vesting percentage | 33.33% | ||
Share-Based Compensation, vesting period | 3 years | ||
Share-Based Compensation, options term | 7 years | ||
Employee Stock Option | Fourth, fifth and sixth anniversaries of the date of grant (ten-year term option) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation, options vesting percentage | 33.33% | ||
Share-Based Compensation, vesting period | 3 years | ||
Share-Based Compensation, options term | 10 years |
Share-Based Compensation Expens
Share-Based Compensation Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Share-based compensation expense | $ 23 | $ 7 | $ 36 | $ 40 | |
Unrecognized share-based compensation | $ 79 | $ 79 | $ 41 |
Financial Assets and Liabilitie
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 2,630 | $ 3,006 | |
Restricted cash | 124 | 206 | |
Enhanced equipment trust certificates ("EETC") | 23 | 26 | |
Corporate Debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 861 | 891 | |
Asset-backed Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 764 | 710 | |
CDARS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 252 | 281 | |
U.S. Government and Agency Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 97 | 72 | |
Auction Rate Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 9 | ||
Other Fixed Income Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 50 | 26 | |
Other Investments Measured At NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | [1] | 202 | 201 |
Fuel Derivatives Liability, Net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives, net | 4 | 124 | |
Foreign Currency Derivatives Liability , Net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives, net | 1 | ||
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 2,630 | 3,006 | |
Restricted cash | 124 | 206 | |
Level 2 | Corporate Debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 861 | 891 | |
Level 2 | Asset-backed Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 764 | 710 | |
Level 2 | CDARS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 252 | 281 | |
Level 2 | U.S. Government and Agency Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 97 | 72 | |
Level 2 | Other Fixed Income Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 50 | 26 | |
Level 2 | Fuel Derivatives Liability, Net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives, net | 4 | 124 | |
Level 2 | Foreign Currency Derivatives Liability , Net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives, net | 1 | ||
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Enhanced equipment trust certificates ("EETC") | $ 23 | 26 | |
Level 3 | Auction Rate Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | $ 9 | ||
[1] | In accordance with the relevant accounting standards, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The investments measured using NAV are shares of mutual funds that invest in fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. The Company can redeem its shares at any time at NAV subject to a three-day settlement period. |
Financial Assets and Liabilit37
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Redeemable shares, settlement period | 3 days |
Financial Instruments and Fai38
Financial Instruments and Fair Value Measurements - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016 | |
EETC | |
Fair Value [Line Items] | |
Available-for-sale securities remaining maturities | 2,019 |
Asset-backed Securities | Minimum | |
Fair Value [Line Items] | |
Available-for-sale securities remaining maturities | 1 year |
Asset-backed Securities | Maximum | |
Fair Value [Line Items] | |
Available-for-sale securities remaining maturities | 33 years |
Corporate Debt | Minimum | |
Fair Value [Line Items] | |
Available-for-sale securities remaining maturities | 1 year |
Corporate Debt | Maximum | |
Fair Value [Line Items] | |
Available-for-sale securities remaining maturities | 6 years |
CDARS | Maximum | |
Fair Value [Line Items] | |
Available-for-sale securities remaining maturities | 1 year |
U.S. Government and Other Securities | Minimum | |
Fair Value [Line Items] | |
Available-for-sale securities remaining maturities | 1 year |
U.S. Government and Other Securities | Maximum | |
Fair Value [Line Items] | |
Available-for-sale securities remaining maturities | 3 years |
Carrying Values and Estimated F
Carrying Values and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 10,581 | $ 10,897 |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 11,218 | 11,371 |
Estimate of Fair Value, Fair Value Disclosure | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 8,359 | 8,646 |
Estimate of Fair Value, Fair Value Disclosure | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | $ 2,859 | $ 2,725 |
Hedging Activities - Additional
Hedging Activities - Additional Information (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2016USD ($)gal | Dec. 31, 2015USD ($) | |
Derivatives And Hedging Activities [Line Items] | ||
Percentage of projection for hedging financial instruments for the remainder of 2016 | 13.00% | |
Volume of fuel hedging for the remainder of 2016 | gal | 126,000,000 | |
Fuel hedges expiration date | 2016-12 | |
Cash Flow Hedging | ||
Derivatives And Hedging Activities [Line Items] | ||
Percentage of projection of European euro for hedging financial instruments for remainder of 2016 | 16.00% | |
Fair value of derivative liability | $ 4 | $ 124 |
Percentage of projection of Japanese yen for hedging financial instruments for remainder of 2016 | 18.00% | |
Foreign Currency Derivatives Liability , Net | ||
Derivatives And Hedging Activities [Line Items] | ||
Fair value of derivative liability | $ 1 | |
Fuel Derivative Instruments | ||
Derivatives And Hedging Activities [Line Items] | ||
Fuel hedge collateral deposits | $ 26 |
Description of Derivative Instr
Description of Derivative Instruments (Detail) - Cash Flow Hedging - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, liabilities | $ 4 | $ 124 |
Designated as Hedging Instrument | Fuel Derivative Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, liabilities | $ 4 | 119 |
Not Designated as Hedging Instrument | Fuel Derivative Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, liabilities | $ 5 |
Offsetting Liabilities (Detail)
Offsetting Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fuel Derivative Instruments | ||
Offsetting Asset and Liabilities [Line Items] | ||
Potential net fair value positions elected to offset | $ (4) | $ (98) |
Schedule of Losses on Derivativ
Schedule of Losses on Derivative Instruments (Detail) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Recognized in AOCI on Derivatives (Effective Portion) | $ (6) | $ (181) | $ (5) | $ (227) |
Loss Reclassified from AOCI into Fuel Expense | (24) | (150) | (197) | (429) |
Amount of Loss Recognized in Nonoperating income (expense): Miscellaneous, net (Ineffective Portion) | $ 0 | $ 0 | $ 0 | $ 0 |
Schedule of Derivative Instrume
Schedule of Derivative Instruments not Designated as Hedges Losses (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of loss recognized in Nonoperating income (expense): Miscellaneous, net | $ (67) | $ (69) |
Schedule of Commitments to Purc
Schedule of Commitments to Purchase Aircrafts (Detail) - United Airlines, Inc. - Capital Addition Purchase Commitments | Sep. 30, 2016Aircraft | [1] |
Airbus A350-1000 Aircraft | ||
Long-term Purchase Commitment [Line Items] | ||
Number of new aircraft committed to purchase | 35 | |
Boeing 737NG/737 MAX Aircraft | ||
Long-term Purchase Commitment [Line Items] | ||
Number of new aircraft committed to purchase | 172 | |
Boeing 777-300ER Aircraft | ||
Long-term Purchase Commitment [Line Items] | ||
Number of new aircraft committed to purchase | 14 | |
Boeing 787-8/-9/-10 Aircraft | ||
Long-term Purchase Commitment [Line Items] | ||
Number of new aircraft committed to purchase | 21 | |
[1] | United also has options and purchase rights for additional aircraft. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 9 Months Ended | ||||
Oct. 17, 2016 | Sep. 30, 2016USD ($)EmployeeAircraft | Aug. 31, 2016 | Mar. 31, 2016Contract | Jan. 31, 2016 | Sep. 30, 2016USD ($)EmployeeAircraftContract | |
Aircraft Mortgage Debt | ||||||
Commitments and Contingencies [Line Items] | ||||||
Guarantor obligations, maximum exposure | $ 171,000,000 | $ 171,000,000 | ||||
Floating Rate Debt | ||||||
Commitments and Contingencies [Line Items] | ||||||
Debt instrument principal amount | 2,500,000,000 | 2,500,000,000 | ||||
Fixed Rate Debt | ||||||
Commitments and Contingencies [Line Items] | ||||||
Debt instrument principal amount | 97,000,000 | 97,000,000 | ||||
Loans And Leases From Non U S Entities | ||||||
Commitments and Contingencies [Line Items] | ||||||
Debt instrument principal amount | 2,600,000,000 | 2,600,000,000 | ||||
Tax-exempt special facilities revenue bonds | ||||||
Commitments and Contingencies [Line Items] | ||||||
Guarantor obligations, maximum exposure | 1,900,000,000 | 1,900,000,000 | ||||
Operating leases obligations | 1,400,000,000 | 1,400,000,000 | ||||
Capital leases obligations | $ 376,000,000 | $ 376,000,000 | ||||
Minimum | Tax-exempt special facilities revenue bonds | ||||||
Commitments and Contingencies [Line Items] | ||||||
Debt instrument maturity year | 2,017 | |||||
Maximum | ||||||
Commitments and Contingencies [Line Items] | ||||||
Debt instrument, remaining terms (years) | 12 years | |||||
Maximum | Loans And Leases From Non U S Entities | ||||||
Commitments and Contingencies [Line Items] | ||||||
Debt instrument, remaining terms (years) | 12 years | |||||
Maximum | Tax-exempt special facilities revenue bonds | ||||||
Commitments and Contingencies [Line Items] | ||||||
Debt instrument maturity year | 2,038 | |||||
Air Line Pilots Association International | ||||||
Commitments and Contingencies [Line Items] | ||||||
Service contract extended year | Jan. 31, 2019 | |||||
Professional Airline Flight Control Association | ||||||
Commitments and Contingencies [Line Items] | ||||||
Service contract extended year | 2,021 | |||||
Int'1 Association of Machinists | ||||||
Commitments and Contingencies [Line Items] | ||||||
Service contract extended year | 2,021 | 2,021 | ||||
Number of new contracts extended | Contract | 7 | 7 | ||||
United And The Association Of Flight Attendants | ||||||
Commitments and Contingencies [Line Items] | ||||||
Contract period | 5 years | |||||
Int'1 Brotherhood of Teamsters | ||||||
Commitments and Contingencies [Line Items] | ||||||
Contract period | 6 years | |||||
Metropolitan Washington Airports Authority | Subsequent Event | ||||||
Commitments and Contingencies [Line Items] | ||||||
Lease extension term | 7 years | |||||
Operating lease expiration year | 2,024 | |||||
United Airlines, Inc. | ||||||
Commitments and Contingencies [Line Items] | ||||||
Borrowed principal amount | $ 272,000,000 | $ 272,000,000 | ||||
Debt instrument maturity year | 2,028 | |||||
Number of employees | Employee | 87,500 | 87,500 | ||||
Percentage of employees represented by various U.S. labor organizations | 80.00% | |||||
United Airlines, Inc. | EETC | ||||||
Commitments and Contingencies [Line Items] | ||||||
Borrowed principal amount | $ 1,700,000,000 | $ 1,700,000,000 | ||||
Debt instrument principal amount | $ 321,000,000 | $ 321,000,000 | ||||
Capital Addition Purchase Commitments | United Airlines, Inc. | ||||||
Commitments and Contingencies [Line Items] | ||||||
New aircraft, scheduled delivery date | 2,024 | |||||
Capital Addition Purchase Commitments | United Airlines, Inc. | Boeing 737NG | ||||||
Commitments and Contingencies [Line Items] | ||||||
Number of aircraft expected to be delivered in the remainder of 2016 | Aircraft | 7 | 7 | ||||
Capital Addition Purchase Commitments | United Airlines, Inc. | Boeing 777-300ER Aircraft | ||||||
Commitments and Contingencies [Line Items] | ||||||
Number of aircraft expected to be delivered in the remainder of 2016 | Aircraft | 1 | 1 |
Schedule of Acquisition of Airc
Schedule of Acquisition of Aircrafts and Related Spare Engines (Detail) $ in Billions | Sep. 30, 2016USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Last three months of 2016 | $ 1.2 |
2,017 | 4.5 |
2,018 | 4.1 |
2,019 | 3.3 |
2,020 | 2.6 |
After 2,020 | 6.9 |
Total commitments | $ 22.6 |
Future Minimum Lease Payments f
Future Minimum Lease Payments for Capital and Operating Leases (Detail) - Facility and Other Operating Leases $ in Millions | Sep. 30, 2016USD ($) |
Operating Leased Assets [Line Items] | |
Last three months of 2016 | $ 200 |
2,017 | 1,156 |
2,018 | 1,024 |
2,019 | 954 |
2,020 | 1,083 |
After 2,020 | 7,450 |
Operating leases obligations | $ 11,867 |
Debt - Additional Information (
Debt - Additional Information (Detail) - United Airlines, Inc. - USD ($) shares in Millions, $ in Millions | May 01, 2015 | Apr. 01, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Sep. 30, 2016 |
Debt Instrument [Line Items] | |||||
Borrowed principal amount | $ 272 | ||||
Debt instrument maturity year | 2,028 | ||||
Unsecured Debt | 4.5% Convertible Notes Due 2015 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity year | 2,015 | ||||
Debt instrument stated interest rate | 4.50% | ||||
Long-term Debt, Gross | $ 202 | ||||
Common stock issued in exchange for convertible notes | 11 | ||||
Unsecured Debt | 6% Notes Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity year | 2,026 | ||||
Debt instrument stated interest rate | 6.00% | ||||
Debt purchased and retired | $ 303 | $ 18 | |||
Unsecured Debt | 6% Notes Due 2028 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity year | 2,028 | ||||
Debt instrument stated interest rate | 6.00% | ||||
Debt purchased and retired | $ 298 | $ 13 | |||
Secured Debt | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Available under revolving credit facility | $ 1,350 |
Details of Pass Through Trusts
Details of Pass Through Trusts (Detail) - United Airlines, Inc. $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Class AA Pass Through Certificates | September Twenty Sixteen [Member] | |
Debt Instrument [Line Items] | |
Principal | $ 637 |
Final expected distribution date | 2028-10 |
Stated interest rate | 2.875% |
Remaining proceeds from issuance of debt to be received in future periods | $ 637 |
Class AA Pass Through Certificates | June 2016 | |
Debt Instrument [Line Items] | |
Principal | $ 729 |
Final expected distribution date | 2028-07 |
Stated interest rate | 3.10% |
Total debt recorded | $ 222 |
Remaining proceeds from issuance of debt to be received in future periods | 507 |
Class A Pass Through Certificates | September Twenty Sixteen [Member] | |
Debt Instrument [Line Items] | |
Principal | $ 283 |
Final expected distribution date | 2028-10 |
Stated interest rate | 3.10% |
Remaining proceeds from issuance of debt to be received in future periods | $ 283 |
Class A Pass Through Certificates | June 2016 | |
Debt Instrument [Line Items] | |
Principal | $ 324 |
Final expected distribution date | 2028-07 |
Stated interest rate | 3.45% |
Total debt recorded | $ 99 |
Remaining proceeds from issuance of debt to be received in future periods | 225 |
EETC | |
Debt Instrument [Line Items] | |
Principal | 1,973 |
Total debt recorded | 321 |
Remaining proceeds from issuance of debt to be received in future periods | $ 1,652 |
Components of Special Items (De
Components of Special Items (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating: | ||||
Labor agreement costs | $ 14 | $ 124 | ||
Severance and benefit costs | 13 | $ 28 | 27 | $ 103 |
Cleveland airport lease restructuring | 74 | |||
(Gains) losses on sale of assets and other special charges | 18 | 48 | 32 | 92 |
Special charges | 45 | 76 | 669 | 195 |
Nonoperating and income taxes: | ||||
Losses on extinguishment of debt and other | 61 | (1) | 195 | |
Income tax benefit related to special charges | (16) | (241) | ||
Total special charges, net of tax | 29 | 137 | 427 | 390 |
Income tax valuation allowance release (Note 4) | (3,218) | (3,218) | ||
Total special items | $ 29 | $ (3,081) | 427 | $ (2,828) |
Newark Liberty International Airport | ||||
Operating: | ||||
Impairment of intangible asset related to Newark Liberty International Airport ("Newark") slots | $ 412 |
Special Items - Additional Info
Special Items - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2016Contract | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Contractplan | Sep. 30, 2015USD ($) | Dec. 31, 2014Attendant | Dec. 31, 2015USD ($) | |
Special Charges [Line Items] | |||||||
Labor agreement costs | $ 14,000,000 | $ 124,000,000 | |||||
Severance and benefits costs | 13,000,000 | $ 28,000,000 | 27,000,000 | $ 103,000,000 | |||
Severance and benefits costs net of tax | 8,000,000 | 17,000,000 | |||||
Charge related to the amended lease | $ 74,000,000 | ||||||
Lease maturity year | 2,029 | ||||||
(Gains) losses on sale of assets and other special charges | 18,000,000 | 48,000,000 | $ 32,000,000 | 92,000,000 | |||
(Gains) losses on sale of assets and other special charges net of tax | 12,000,000 | 20,000,000 | |||||
Venezuela local currency loss | 61,000,000 | 8,000,000 | |||||
Venezuela local currency loss net of tax | 5,000,000 | ||||||
Sale of an affiliate | 9,000,000 | ||||||
Sale of an affiliate net of tax | 6,000,000 | ||||||
Write off of unamortized discount | 134,000,000 | ||||||
Accrual severance and benefit | 34,000,000 | $ 110,000,000 | $ 34,000,000 | $ 110,000,000 | |||
Severance-related accrual expected payment date | 2,016 | ||||||
Newark Liberty International Airport | |||||||
Special Charges [Line Items] | |||||||
Impairment of indefinite-lived intangible assets | $ 412,000,000 | ||||||
Impairment of indefinite-lived intangible assets, net of tax benefits | $ 264,000,000 | ||||||
Flight Attendant Postretirement Medical Plan | Postretirement Medical Plan | |||||||
Special Charges [Line Items] | |||||||
Number of plans amended | plan | 2 | ||||||
Curtailment gain recognition of prior service credit | 47,000,000 | $ 47,000,000 | |||||
Curtailment gain recognition of prior service credit,net of tax | $ 30,000,000 | ||||||
Int'1 Association of Machinists | |||||||
Special Charges [Line Items] | |||||||
Number of new contracts extended | Contract | 7 | 7 | |||||
Service contract extended year | 2,021 | 2,021 | |||||
Labor agreement costs | 61,000,000 | $ 171,000,000 | |||||
Labor agreement costs net of tax | $ 39,000,000 | 109,000,000 | |||||
Lease Amendment Charges | |||||||
Special Charges [Line Items] | |||||||
Charge related to the amended lease | 74,000,000 | ||||||
Charge related to the amended lease net of tax | $ 47,000,000 | ||||||
Voluntary early out program | |||||||
Special Charges [Line Items] | |||||||
Number of positions eliminated | Attendant | 2,500 | ||||||
Voluntary early out program | Maximum | |||||||
Special Charges [Line Items] | |||||||
Severance payment per participant | $ 100,000 |
Schedule of Severance Related A
Schedule of Severance Related Accruals (Detail) - Severance and Benefits $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Schedule Of Accrual Activity [Line Items] | |
Beginning Balance | $ 27 |
Accrual | 27 |
Payments | (20) |
Ending Balance | $ 34 |