Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 13, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
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 | 372,810,266 | |
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, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating revenue: | ||||
Passenger-Mainline | $ 7,254 | $ 7,414 | $ 20,153 | $ 20,410 |
Passenger-Regional | 1,706 | 1,900 | 4,903 | 5,269 |
Total passenger revenue | 8,960 | 9,314 | 25,056 | 25,679 |
Cargo | 235 | 237 | 706 | 678 |
Other operating revenue | 1,111 | 1,012 | 3,066 | 3,231 |
Total revenue | 10,306 | 10,563 | 28,828 | 29,588 |
Operating expense: | ||||
Salaries and related costs | 2,534 | 2,344 | 7,289 | 6,684 |
Aircraft fuel | 1,934 | 3,127 | 5,904 | 9,145 |
Regional capacity purchase | 572 | 597 | 1,725 | 1,747 |
Landing fees and other rent | 551 | 567 | 1,647 | 1,706 |
Depreciation and amortization | 469 | 422 | 1,343 | 1,248 |
Aircraft maintenance materials and outside repairs | 424 | 435 | 1,252 | 1,364 |
Distribution expenses | 366 | 375 | 1,026 | 1,039 |
Aircraft rent | 185 | 222 | 580 | 668 |
Special charges (Note 10) | 76 | 43 | 195 | 264 |
Other operating expenses | 1,296 | 1,240 | 3,782 | 3,975 |
Total operating expenses | 8,407 | 9,372 | 24,743 | 27,840 |
Operating income | 1,899 | 1,191 | 4,085 | 1,748 |
Nonoperating income (expense): | ||||
Interest expense | (164) | (186) | (504) | (559) |
Interest capitalized | 13 | 13 | 38 | 40 |
Interest income | 5 | 8 | 16 | 17 |
Miscellaneous, net (Note 10) | (147) | (106) | (321) | (141) |
Total other expense | (293) | (271) | (771) | (643) |
Income before income taxes | 1,606 | 920 | 3,314 | 1,105 |
Income tax expense (benefit) | (3,210) | (4) | (3,203) | 1 |
Net income | $ 4,816 | $ 924 | $ 6,517 | $ 1,104 |
Earnings per share, basic | $ 12.83 | $ 2.50 | $ 17.19 | $ 2.98 |
Earnings per share, diluted | $ 12.82 | $ 2.37 | $ 17.15 | $ 2.84 |
United Airlines, Inc. | ||||
Operating revenue: | ||||
Passenger-Mainline | $ 7,254 | $ 7,414 | $ 20,153 | $ 20,410 |
Passenger-Regional | 1,706 | 1,900 | 4,903 | 5,269 |
Total passenger revenue | 8,960 | 9,314 | 25,056 | 25,679 |
Cargo | 235 | 237 | 706 | 678 |
Other operating revenue | 1,111 | 1,012 | 3,066 | 3,231 |
Total revenue | 10,306 | 10,563 | 28,828 | 29,588 |
Operating expense: | ||||
Salaries and related costs | 2,534 | 2,344 | 7,289 | 6,684 |
Aircraft fuel | 1,934 | 3,127 | 5,904 | 9,145 |
Regional capacity purchase | 572 | 597 | 1,725 | 1,747 |
Landing fees and other rent | 551 | 567 | 1,647 | 1,706 |
Depreciation and amortization | 469 | 422 | 1,343 | 1,248 |
Aircraft maintenance materials and outside repairs | 424 | 435 | 1,252 | 1,364 |
Distribution expenses | 366 | 375 | 1,026 | 1,039 |
Aircraft rent | 185 | 222 | 580 | 668 |
Special charges (Note 10) | 76 | 43 | 195 | 264 |
Other operating expenses | 1,295 | 1,245 | 3,780 | 3,972 |
Total operating expenses | 8,406 | 9,377 | 24,741 | 27,837 |
Operating income | 1,900 | 1,186 | 4,087 | 1,751 |
Nonoperating income (expense): | ||||
Interest expense | (164) | (187) | (504) | (564) |
Interest capitalized | 13 | 13 | 38 | 40 |
Interest income | 5 | 8 | 16 | 17 |
Miscellaneous, net (Note 10) | (147) | (91) | (322) | (121) |
Total other expense | (293) | (257) | (772) | (628) |
Income before income taxes | 1,607 | 929 | 3,315 | 1,123 |
Income tax expense (benefit) | (3,169) | (4) | (3,163) | 1 |
Net income | $ 4,776 | $ 933 | $ 6,478 | $ 1,122 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Net income | $ 4,816 | $ 924 | $ 6,517 | $ 1,104 | |
Other comprehensive income (loss), net change related to: | |||||
Fuel derivative financial instruments | (104) | (120) | 129 | (95) | |
Employee benefit plans | (12) | (82) | 18 | (121) | |
Investments and other | (6) | 1 | (2) | (4) | |
Comprehensive income (loss) adjustments | [1] | (122) | (201) | 145 | (220) |
Total comprehensive income, net | 4,694 | 723 | 6,662 | 884 | |
United Airlines, Inc. | |||||
Net income | 4,776 | 933 | 6,478 | 1,122 | |
Other comprehensive income (loss), net change related to: | |||||
Fuel derivative financial instruments | (104) | (120) | 129 | (95) | |
Employee benefit plans | (12) | (82) | 18 | (121) | |
Investments and other | (6) | 1 | (1) | (4) | |
Comprehensive income (loss) adjustments | (122) | (201) | 146 | (220) | |
Total comprehensive income, net | $ 4,654 | $ 732 | $ 6,624 | $ 902 | |
[1] | UAL and United amounts are substantially the same except for additional gains related to investments and other of $1 million at United for the nine months ended September 30, 2015. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 3,427 | $ 2,002 | |
Short-term investments | 2,172 | 2,382 | |
Receivables, less allowance for doubtful accounts (2015-$18; 2014-$22) | 1,513 | 1,146 | |
Fuel hedge collateral deposits | 156 | 577 | |
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2015-$226; 2014-$169) | 704 | 666 | |
Deferred income taxes | 1,306 | 591 | |
Prepaid expenses and other | 819 | 774 | |
Total current assets | 10,097 | 8,138 | |
Operating property and equipment: Owned- | |||
Flight equipment | 23,231 | 21,107 | |
Other property and equipment | 4,342 | 4,016 | |
Operating property and equipment - owned, gross | 27,573 | 25,123 | |
Less-Accumulated depreciation and amortization | (8,038) | (7,079) | |
Operating property and equipment - owned, net | 19,535 | 18,044 | |
Purchase deposits for flight equipment | 736 | 706 | |
Capital leases- | |||
Flight equipment | 1,562 | 1,272 | |
Other property and equipment | 331 | 331 | |
Operating property and equipment - capital leases, gross | 1,893 | 1,603 | |
Less-Accumulated amortization | (988) | (886) | |
Operating property and equipment - capital leases, net | 905 | 717 | |
Total property, plant, and equipment, net | 21,176 | 19,467 | |
Other assets: | |||
Goodwill | 4,523 | 4,523 | |
Intangibles, less accumulated amortization (2015-$1,120; 2014-$1,049) | 4,193 | 4,284 | |
Deferred income taxes | 846 | ||
Restricted cash | 206 | 276 | |
Other, net | 828 | 665 | |
Other assets total | 10,596 | 9,748 | |
Total assets | 41,869 | 37,353 | |
Current liabilities: | |||
Advance ticket sales | 4,492 | 3,701 | |
Frequent flyer deferred revenue | 2,138 | 2,058 | |
Accounts payable | 2,082 | 1,882 | |
Accrued salaries and benefits | 2,187 | 1,818 | |
Current maturities of long-term debt | 1,312 | 1,313 | |
Current maturities of capital leases | 137 | 110 | |
Fuel derivative instruments | 329 | 694 | |
Other | 811 | 932 | |
Total current liabilities | 13,488 | 12,508 | |
Long-term debt | 9,910 | 10,121 | |
Long-term obligations under capital leases | 762 | 571 | |
Other liabilities and deferred credits: | |||
Frequent flyer deferred revenue | 2,796 | 2,879 | |
Postretirement benefit liability | 1,918 | 1,933 | |
Pension liability | 1,511 | 2,226 | |
Advanced purchase of miles | 1,070 | 1,217 | |
Deferred income taxes | 1,591 | ||
Lease fair value adjustment, net | 380 | 466 | |
Other | 1,479 | 1,445 | |
Total Other liabilities and deferred credits | $ 9,154 | $ 11,757 | |
Commitments and contingencies | |||
Stockholder's equity: | |||
Preferred stock | $ 0 | $ 0 | |
Common stock | 4 | 4 | |
Additional capital invested | 7,941 | 7,721 | |
Retained earnings (deficit) | 2,634 | (3,883) | |
Stock held in treasury, at cost | (1,090) | (367) | |
Accumulated other comprehensive income (loss) | [1] | (934) | (1,079) |
Total stockholders' equity | 8,555 | 2,396 | |
Total liabilities and stockholders' equity (deficit) | 41,869 | 37,353 | |
United Airlines, Inc. | |||
Current assets: | |||
Cash and cash equivalents | 3,421 | 1,996 | |
Short-term investments | 2,172 | 2,382 | |
Receivables, less allowance for doubtful accounts (2015-$18; 2014-$22) | 1,513 | 1,146 | |
Fuel hedge collateral deposits | 156 | 577 | |
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2015-$226; 2014-$169) | 704 | 666 | |
Deferred income taxes | 1,304 | 591 | |
Prepaid expenses and other | 867 | 823 | |
Total current assets | 10,137 | 8,181 | |
Operating property and equipment: Owned- | |||
Flight equipment | 23,231 | 21,107 | |
Other property and equipment | 4,342 | 4,016 | |
Operating property and equipment - owned, gross | 27,573 | 25,123 | |
Less-Accumulated depreciation and amortization | (8,038) | (7,079) | |
Operating property and equipment - owned, net | 19,535 | 18,044 | |
Purchase deposits for flight equipment | 736 | 706 | |
Capital leases- | |||
Flight equipment | 1,562 | 1,272 | |
Other property and equipment | 331 | 331 | |
Operating property and equipment - capital leases, gross | 1,893 | 1,603 | |
Less-Accumulated amortization | (988) | (886) | |
Operating property and equipment - capital leases, net | 905 | 717 | |
Total property, plant, and equipment, net | 21,176 | 19,467 | |
Other assets: | |||
Goodwill | 4,523 | 4,523 | |
Intangibles, less accumulated amortization (2015-$1,120; 2014-$1,049) | 4,193 | 4,284 | |
Deferred income taxes | 807 | ||
Restricted cash | 206 | 276 | |
Other, net | 828 | 1,377 | |
Other assets total | 10,557 | 10,460 | |
Total assets | 41,870 | 38,108 | |
Current liabilities: | |||
Advance ticket sales | 4,492 | 3,701 | |
Frequent flyer deferred revenue | 2,138 | 2,058 | |
Accounts payable | 2,086 | 1,886 | |
Accrued salaries and benefits | 2,187 | 1,818 | |
Current maturities of long-term debt | 1,312 | 1,313 | |
Current maturities of capital leases | 137 | 110 | |
Fuel derivative instruments | 329 | 694 | |
Other | 811 | 933 | |
Total current liabilities | 13,492 | 12,513 | |
Long-term debt | 9,910 | 10,120 | |
Long-term obligations under capital leases | 762 | 571 | |
Other liabilities and deferred credits: | |||
Frequent flyer deferred revenue | 2,796 | 2,879 | |
Postretirement benefit liability | 1,918 | 1,933 | |
Pension liability | 1,511 | 2,226 | |
Advanced purchase of miles | 1,070 | 1,217 | |
Deferred income taxes | 1,591 | ||
Lease fair value adjustment, net | 380 | 466 | |
Other | 1,479 | 1,957 | |
Total Other liabilities and deferred credits | $ 9,154 | $ 12,269 | |
Commitments and contingencies | |||
Stockholder's equity: | |||
Common stock | $ 0 | $ 0 | |
Additional capital invested | 6,652 | 7,347 | |
Retained earnings (deficit) | 2,850 | (3,628) | |
Accumulated other comprehensive income (loss) | (933) | (1,079) | |
Receivable from related parties | (17) | (5) | |
Total stockholders' equity | 8,552 | 2,635 | |
Total liabilities and stockholders' equity (deficit) | $ 41,870 | $ 38,108 | |
[1] | UAL and United amounts are substantially the same except for additional gains related to investments and other of $1 million at United for the nine months ended September 30, 2015. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables, allowance for doubtful accounts | $ 18 | $ 22 |
Aircraft fuel, spare parts and supplies, obsolescence allowance | 226 | 169 |
Intangibles, accumulated amortization | $ 1,120 | $ 1,049 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common shares, authorized | 1,000,000,000 | 1,000,000,000 |
Common shares, outstanding | 373,729,883 | 374,525,916 |
United Airlines, Inc. | ||
Receivables, allowance for doubtful accounts | $ 18 | $ 22 |
Aircraft fuel, spare parts and supplies, obsolescence allowance | 226 | 169 |
Intangibles, accumulated amortization | $ 1,120 | $ 1,049 |
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, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities: | ||
Net cash provided by operating activities | $ 4,877 | $ 2,732 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (1,984) | (1,345) |
Purchases of short-term and other investments | (1,859) | (2,859) |
Proceeds from sale of short-term and other investments | 2,069 | 2,388 |
Investment in affiliates | (130) | |
Decrease in restricted cash | 112 | 79 |
Proceeds from sale of property and equipment | 50 | 73 |
Other, net | 23 | 34 |
Net cash used in investing activities | (1,719) | (1,630) |
Cash Flows from Financing Activities: | ||
Payments of long-term debt | (1,528) | (2,001) |
Repurchases of common stock | (710) | (220) |
Proceeds from issuance of long-term debt | 613 | 1,177 |
Principal payments under capital leases | (80) | (81) |
Other, net | (28) | (80) |
Net cash used in financing activities | (1,733) | (1,205) |
Net increase (decrease) in cash and cash equivalents | 1,425 | (103) |
Cash and cash equivalents at beginning of the period | 2,002 | 3,220 |
Cash and cash equivalents at end of the period | 3,427 | 3,117 |
Investing and Financing Activities Not Affecting Cash: | ||
Property and equipment acquired through the issuance of debt | 797 | 757 |
Operating lease conversions to capital lease | 285 | 8 |
Airport construction financing | 5 | 14 |
Conversion of convertible notes to UAL common stock | 201 | 202 |
United Airlines, Inc. | ||
Cash Flows from Operating Activities: | ||
Net cash provided by operating activities | 4,866 | 2,623 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (1,984) | (1,345) |
Purchases of short-term and other investments | (1,859) | (2,859) |
Proceeds from sale of short-term and other investments | 2,069 | 2,388 |
Investment in affiliates | (130) | |
Decrease in restricted cash | 112 | 79 |
Proceeds from sale of property and equipment | 50 | 73 |
Other, net | 23 | 34 |
Net cash used in investing activities | (1,719) | (1,630) |
Cash Flows from Financing Activities: | ||
Payments of long-term debt | (1,528) | (2,001) |
Dividend to UAL | (709) | (120) |
Proceeds from issuance of long-term debt | 613 | 1,177 |
Principal payments under capital leases | (80) | (81) |
Other, net | (18) | (71) |
Net cash used in financing activities | (1,722) | (1,096) |
Net increase (decrease) in cash and cash equivalents | 1,425 | (103) |
Cash and cash equivalents at beginning of the period | 1,996 | 3,214 |
Cash and cash equivalents at end of the period | 3,421 | 3,111 |
Investing and Financing Activities Not Affecting Cash: | ||
Property and equipment acquired through the issuance of debt | 797 | 757 |
Operating lease conversions to capital lease | 285 | 8 |
Airport construction financing | $ 5 | 14 |
Transfer of UAL subsidiaries to United | 186 | |
Conversion of convertible notes to UAL common stock | $ 156 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Significant Accounting Policies | NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Recently Issued Accounting Standards. Revenue from Contracts with Customers Revenue Recognition, The FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. 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, 2015 | |
Earnings Per Share | NOTE 2 - EARNINGS PER SHARE The table below represents the computation of UAL’s basic and diluted earnings per share amounts and the number of securities that have been excluded from the computation of diluted earnings per share amounts because they were antidilutive (in millions, except per share amounts): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Basic earnings per share: Earnings available to common stockholders $ 4,816 $ 924 $ 6,517 $ 1,104 Basic weighted-average shares outstanding 375 370 379 370 Earnings per share, basic $ 12.83 $ 2.50 $ 17.19 $ 2.98 Diluted earnings per share: Earnings available to common stockholders $ 4,816 $ 924 $ 6,517 $ 1,104 Effect of convertible notes — 7 — 20 Earnings available to common stockholders including the effect of dilutive securities $ 4,816 $ 931 $ 6,517 $ 1,124 Diluted shares outstanding: Basic weighted-average shares outstanding 375 370 379 370 Effect of convertible notes — 22 — 24 Effect of employee stock awards 1 1 1 1 Diluted weighted-average shares outstanding 376 393 380 395 Earnings per share, diluted $ 12.82 $ 2.37 $ 17.15 $ 2.84 Potentially dilutive shares excluded from diluted per share amounts: Restricted stock and stock options — 1 — 1 In January 2015, the holders of substantially all of the remaining $202 million principal amount of United’s 4.5% Convertible Notes due 2015 (the “4.5% Convertible Notes”) exercised their conversion option resulting in the issuance of 11 million shares of UAL common stock. There is no convertible debt outstanding as of September 30, 2015. In 2014, UAL’s Board of Directors authorized a share repurchase program to acquire up to $1 billion of UAL’s common stock (the “2014 Program”). On July 21, 2015, UAL’s Board of Directors authorized a new $3 billion share repurchase program, which the Company expects to complete by December 31, 2017 (the “2015 Program”). UAL spent $262 million and $712 million to repurchase approximately 4.6 million and 11.9 million shares of UAL common stock in open market transactions in the three and nine months ended September 30, 2015, respectively. As of September 30, 2015, the Company had completed purchases under the 2014 Program and had $2.97 billion remaining to spend under the 2015 Program. On October 22, 2015, UAL expects to enter into agreements under which it will repurchase approximately $300 million of shares of UAL common stock through an accelerated share repurchase program. The specific number of shares that UAL expects ultimately to repurchase under this accelerated share repurchase program will be determined based on a calculation period not to exceed approximately three months. 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 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, 2015 | |
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): UAL (a) Pension and Derivative Investments Pension and Derivative Total Balance at June 30, 2015 $ (442) $ (266) $ 11 $ (115) $ — $ (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) $ — (b) $ (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) UAL (a) Pension and Derivative Investments Pension and Derivative Total Balance at June 30, 2014 $ 660 $ 36 $ 8 $ (115) $ — $ 589 Changes in value (c) (66) (120) 3 — — (183) Amounts reclassified to earnings (c) (16) — (2) — — (18) Net change (82) (120) 1 — — (201) Balance at September 30, 2014 $ 578 $ (84) $ 9 $ (115) $ — $ 388 Balance at December 31, 2013 $ 699 $ 11 $ 13 $ (115) $ — $ 608 Changes in value (c) (71) (99) 4 — — (166) Amounts reclassified to earnings (c) (50) 4 (8) — — (54) Net change (121) (95) (4) — — (220) Balance at September 30, 2014 $ 578 $ (84) $ 9 $ (115) $ — $ 388 Details about AOCI Components Amount Reclassified Affected Line Item in Three Months Ended Nine Months Ended 2015 2014 2015 2014 Derivatives designated as cash flow hedges Fuel contracts-reclassifications of (gains) losses into earnings $ 150 $ — $ 429 $ 4 Aircraft fuel Amortization of pension and post-retirement items Amortization of unrecognized (gains) losses and prior service cost (credit) (d) 8 (16) 25 (50) Salaries and related costs Investments and other Available for sale securities-reclassifications of gains into earnings — (2) (1) (8) Miscellaneous, net (a) UAL and United amounts are substantially the same except for additional gains related to investments and other of $1 million at United for the nine months ended September 30, 2015. (b) Deferred tax balance was offset by the Company’s valuation allowance. (c) Income tax expense for these items 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). |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes | NOTE 4 - INCOME TAXES The Company’s income tax benefit was $3.2 billion for both the third quarter of 2015 and nine months ended September 30, 2015. This compares to an income tax benefit of $4 million in the third quarter of 2014 and a $1 million tax provision for the nine months ended September 30, 2014. A discrete tax benefit of $3.1 billion for the reduction to the U.S. net federal deferred tax asset valuation allowance and an approximately $100 million tax benefit related to a reduction to the net state deferred tax asset valuation allowance was included in the income tax benefit for the third quarter of 2015 and nine months ended September 30, 2015. During 2015, the Company recorded a pre-tax profit of $3.3 billion for the nine months ended September 30, 2015. Additionally, during the third quarter of 2015, after considering all positive and negative evidence and the four sources of taxable income, the Company concluded that its deferred income tax assets are more likely than not to be realized. In evaluating the likelihood of utilizing the Company’s net federal and state deferred tax assets, the significant relevant factors that the Company considered are: (1) its recent history and forecasted profitability; (2) growth in the U.S. and global economies; and (3) future impact of taxable temporary differences. Therefore, the Company released almost all of its valuation allowance in the third quarter of 2015, resulting in a $3.2 billion benefit in its provision for income taxes. Additionally, during the current year, the Company expects there will be other reductions of the U.S. federal and state valuation allowances in the normal course as the Company recognizes U.S. taxable income. This taxable income will reduce the deferred tax asset on Net Operating Losses (“NOLs”) and will result in a reduction of the valuation allowances. The Company expects it will retain a valuation allowance of approximately $82 million against certain state and local NOLs and credit carryforwards at the end of the year. The Company expects these NOLs and credits will expire unused due to limited carryforward periods. The ability to recognize the remaining valuation allowance against these state NOLs and credits will be evaluated on a quarterly basis to determine if there are any significant events or any prudent and feasible tax planning strategies that would affect the Company's ability to utilize these deferred tax assets. The Company’s effective tax rates differ from the federal statutory rate of 35% primarily because of the impact of changes to existing valuation allowances. The change in the effective tax rate each period is impacted by a number of factors, including the relative mix of domestic and state income tax expense in the U.S., adjustments to the valuation allowances, and discrete items. After 2015, the Company anticipated its effective tax rate will be approximately 37%, which reflects a more normalized rate based upon the Company's relative mix of domestic, foreign and state income tax expense. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Employee Benefit Plans | NOTE 5 - EMPLOYEE BENEFIT PLANS Defined Benefit Pension and Other Postretirement Benefit Plans. Pension Benefits Other Postretirement Three Months Ended Three Months Ended 2015 2014 2015 2014 Service cost $ 31 $ 24 $ 5 $ 5 Interest cost 50 50 20 22 Expected return on plan assets (49) (45) — (1) Amortization of unrecognized (gain) loss and prior service cost (credit) 21 3 (13) (19) Settlement (gain) loss 1 (1) — — Total $ 54 $ 31 $ 12 $ 7 Pension Benefits Other Postretirement Nine Months Ended Nine Months Ended 2015 2014 2015 2014 Service cost $ 93 $ 73 $ 15 $ 14 Interest cost 150 151 61 66 Expected return on plan assets (147) (134) (1) (2) Amortization of unrecognized (gain) loss and prior service cost (credit) 65 8 (40) (58) Settlement (gain) loss 2 (1) — — Total $ 163 $ 97 $ 35 $ 20 During the nine months ended September 30, 2015, the Company contributed $800 million to its U.S. domestic tax-qualified defined benefit pension plans. Share-Based Compensation. The table below presents information related to share-based compensation (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Share-based compensation expense $ 7 $ 23 $ 40 $ 69 September 30, 2015 December 31, 2014 Unrecognized share-based compensation $ 48 $ 62 Profit Sharing Plans. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Financial Instruments and Fair Value Measurements | NOTE 6 - FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The table below presents disclosures about the financial assets and financial liabilities measured at fair value on a recurring basis in the Company’s financial statements (in millions): September 30, 2015 December 31, 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 UAL Cash and cash equivalents $ 3,427 $ 3,427 $ — $ — $ 2,002 $ 2,002 $ — $ — Short-term investments: Asset-backed securities 673 — 673 — 901 — 901 — Corporate debt 908 — 908 — 876 — 876 — Certificates of deposit placed through an account registry service (“CDARS”) 301 — 301 — 256 — 256 — Auction rate securities 16 — — 16 26 — — 26 U.S. government and agency notes 49 — 49 — 68 — 68 — Other fixed income securities 225 — 225 — 255 — 255 — Enhanced equipment trust certificates (“EETC”) 26 — — 26 28 — — 28 Fuel derivatives liability, net (312) — (312) — (717) — (717) — Foreign currency derivatives asset, net 2 — 2 — 2 — 2 — Restricted cash 208 208 — — 320 320 — — United Cash and cash equivalents $ 3,421 $ 3,421 $ — $ — $ 1,996 $ 1,996 $ — $ — Short-term investments: Asset-backed securities 673 — 673 — 901 — 901 — Corporate debt 908 — 908 — 876 — 876 — CDARS 301 — 301 — 256 — 256 — Auction rate securities 16 — — 16 26 — — 26 U.S. government and agency notes 49 — 49 — 68 — 68 — Other fixed income securities 225 — 225 — 255 — 255 — EETC 26 — — 26 28 — — 28 Fuel derivatives liability, net (312) — (312) — (717) — (717) — Foreign currency derivatives asset, net 2 — 2 — 2 — 2 — Restricted cash 208 208 — — 320 320 — — Convertible debt derivative asset — — — — 712 — — 712 Convertible debt derivative option liability — — — — (511) — — (511) United’s debt-related derivatives presented in the tables above related to (a) supplemental indentures that provided that United’s convertible debt was convertible into shares of UAL common stock upon the terms and conditions specified in the indentures, and (b) the embedded conversion options in United’s convertible debt that were required to be separated and accounted for as though they were free-standing derivatives as a result of the United debt becoming convertible into the common stock of a different reporting entity. The derivatives described above related to the 4.5% Convertible Notes. Gains (losses) on these derivatives were recorded in Nonoperating income (expense): Miscellaneous, net in United’s statements of consolidated operations. These derivatives along with their gains (losses) were reported in United’s separate financial statements and were eliminated in consolidation for UAL. In January 2015, the holders of substantially all of the remaining $202 million principal amount of the 4.5% Convertible Notes exercised their conversion option resulting in the issuance of 11 million shares of UAL common stock. The derivative assets and liabilities associated with the 4.5% Convertible Notes were settled in connection with the retirement of the related convertible debt, and the final accounting did not materially impact UAL’s or United’s statements of consolidated operations. 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, 2015 December 31, 2014 Carrying Fair Value Carrying Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 UAL debt $ 11,222 $ 11,575 $ — $ 8,437 $ 3,138 $ 11,434 $ 12,386 $ — $ 8,568 $ 3,818 United debt 11,222 11,575 — 8,437 3,138 11,433 12,386 — 8,568 3,818 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 Restricted cash 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, 2015 | |
Hedging Activities | NOTE 7 - HEDGING ACTIVITIES Fuel Derivatives The Company routinely hedges a portion of its expected aircraft 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, 2015, the Company had hedged approximately 23% and 17% of its projected fuel requirements (221 million gallons and 652 million gallons, respectively) for the remainder of 2015 and 2016, respectively, with commonly used financial hedge instruments based on aircraft fuel or crude oil. As of September 30, 2015, the Company had fuel hedges expiring through December 2016. 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. Instruments that qualify for hedge accounting treatment typically include swaps, call options, collars (which consist of a purchased call option and a sold put option) and four-way collars (a collar with a higher strike sold call option and a lower strike purchased put option). Generally, utilizing hedge accounting, all periodic changes in fair value of the 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 cash flow hedge exceeds the change in the value of the Company’s expected future cash outlay to purchase 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. 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 Assets: Fuel contracts due within one year Receivables $ 6 $ — Fuel contracts with maturities greater than one year Other assets: Other, net 7 — Total assets $ 13 $ — Liabilities: Fuel contracts due within one year Fuel derivative instruments $ 217 $ 450 Fuel contracts with maturities greater than one year Other liabilities and deferred credits: Other — 27 Total liabilities $ 217 $ 477 Derivatives not designated for hedge accounting Assets: Fuel contracts due within one year Receivables $ 4 $ 6 Fuel contracts with maturities greater than one year Other assets: Other, net — — Total assets $ 4 $ 6 Liabilities: Fuel contracts due within one year Fuel derivative instruments $ 112 $ 244 Fuel contracts with maturities greater than one year Other liabilities and deferred credits: Other — 2 Total liabilities $ 112 $ 246 Total derivatives Assets: Fuel contracts due within one year Receivables $ 10 $ 6 Fuel contracts with maturities greater than one year Other assets: Other, net 7 — Total assets $ 17 $ 6 Liabilities: Fuel contracts due within one year Fuel derivative instruments $ 329 $ 694 Fuel contracts with maturities greater than one year Other liabilities and deferred credits: Other — 29 Total liabilities $ 329 $ 723 Derivative Credit Risk and Fair Value The Company is exposed to credit losses in the event of nonperformance 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 posted $156 million and $577 million of collateral with fuel derivative counterparties as of September 30, 2015 and December 31, 2014, respectively. The collateral is recorded as Fuel hedge collateral deposits on the Company’s balance sheet. 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 $ (238 ) $ (209 ) Other liabilities and deferred credits: Other — (30 ) Hedge derivatives liabilities, net $ (238 ) $ (239 ) 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 Loss Amount of Loss Three Months Ended Three Months Ended Three Months Ended 2015 2014 2015 2014 2015 2014 Fuel contracts $ (181 ) $ (120 ) $ (150 ) $ — $ — $ (8 ) Derivatives designated as cash flow hedges Amount of Loss Loss Amount of Loss Nine Months Ended Nine Months Ended Nine Months Ended 2015 2014 2015 2014 2015 2014 Fuel contracts $ (227 ) $ (99 ) $ (429 ) $ (4 ) $ — $ (4 ) Derivatives not designated for hedge accounting Fuel contracts Three Months Ended Nine Months Ended 2015 2014 2015 2014 Amount of loss recognized in Nonoperating income (expense): Miscellaneous, net $ (67 ) $ (102 ) $ (69 ) $ (103 ) 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. The Company does not enter into derivative instruments for non-risk management purposes. At September 30, 2015, the Company had foreign currency derivative contracts in place to hedge European euro denominated sales. The notional amount of the hedges equates to 36% and 21% of the Company’s projected European euro denominated net cash inflows for the remainder of 2015 and 2016, respectively. Net cash relates primarily to passenger ticket sales inflows partially offset by expenses paid in local currencies. At September 30, 2015, the fair value of the Company’s foreign currency derivatives was an asset of $2 million. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies | NOTE 8 - COMMITMENTS AND CONTINGENCIES Commitments. Aircraft Type Number of Firm Airbus A350-1000 35 Boeing 737NG/737 MAX 9 117 Boeing 777-300ER 10 Boeing 787-8/-9/-10 33 Embraer E175 10 (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 2015, United expects to take delivery of two Boeing 737NG aircraft and three Boeing 787-9 aircraft. As of September 30, 2015, United has 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. See Note 9 of this report for additional information on aircraft financing. The table below summarizes United’s commitments as of September 30, 2015, 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 2015 $ 0.6 2016 3.0 2017 2.3 2018 2.3 2019 3.1 After 2019 10.7 $ 22.0 Aircraft Operating Leases. In September 2015, United entered into an amendment to the capacity purchase agreement (“CPA”) with SkyWest Airlines, Inc. (“SkyWest”), a wholly-owned subsidiary of SkyWest, Inc., to operate 18 new Embraer E175 aircraft under the United Express brand. SkyWest will purchase all of these 76-seat aircraft directly from the manufacturer with deliveries in 2016 and 2017. In October 2015, United also entered into an amendment to the CPA with Mesa Air Group, Inc. and Mesa Airlines, Inc. (“Mesa”), a wholly-owned subsidiary of Mesa Air Group, Inc., pursuant to which Mesa will operate under the United Express brand an additional 15 new 76-seat Embraer E175 aircraft, with deliveries in 2015 and 2016. Of the 15 aircraft, United will assign its purchase obligations to Mesa with respect to 10 Embraer E175 aircraft at the time of each aircraft’s delivery, subject to certain conditions. Mesa will purchase the remaining five aircraft directly from Embraer; however, United has agreed that United will, under certain conditions, purchase these five aircraft directly from Embraer. The table below summarizes the Company’s anticipated future payments through the end of the terms of our CPAs, excluding variable pass-through costs such as fuel and landing fees, among others. In addition, the table below summarizes the Company’s scheduled future minimum lease payments under aircraft operating leases having initial or remaining noncancelable lease terms of more than one year and includes aircraft rent or ownership costs under CPAs, including estimated commitments under the SkyWest CPA amendment for the operation of 18 new Embraer E175 aircraft. (In millions) Capacity Purchase Aircraft Operating Last three months of 2015 $ 460 $ 291 2016 1,836 1,322 2017 1,725 1,292 2018 1,332 1,068 2019 1,103 868 After 2019 5,314 3,095 $ 11,770 $ 7,936 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, 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, 2015, the Company had $2.6 billion of floating rate debt and $124 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. The Company has agreements with financial institutions that process customer credit card transactions for the sale of air travel and other services. Under certain of the Company’s credit card processing agreements, the financial institutions in certain circumstances have the right to require that the Company maintain a reserve equal to a portion of advance ticket sales that has been processed by that financial institution, but for which the Company has not yet provided the air transportation. Such financial institutions may require additional cash or other collateral reserves to be established or additional withholding of payments related to receivables collected if the Company does not maintain certain minimum levels of unrestricted cash, cash equivalents and short term investments (collectively, “Unrestricted Liquidity”). The Company’s current level of Unrestricted Liquidity is substantially in excess of these minimum levels. In September 2015, United amended and extended its Merchant Services Bankcard Agreement with JPMorgan Chase Bank, N.A. (“JPMorgan”) and Paymentech LLC. Effective with the amended Merchant Services Bankcard Agreement, the Company’s $25 million restricted cash with JPMorgan was returned to United. In addition, the minimum levels of Unrestricted Liquidity that this financial institution required United to maintain were reduced. Labor Negotiations. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt | NOTE 9 - DEBT As of September 30, 2015, a substantial portion of the Company’s assets, principally aircraft, route authorities and loyalty program intangible assets, was pledged under various loan and other agreements. As of September 30, 2015, the Company was in compliance with its debt covenants. As of September 30, 2015, United had its entire capacity of $1.35 billion available under the revolving credit facility of the Company’s 2013 Credit and Guaranty Agreement. 4.5% Convertible Notes due 2015. 6% Notes due 2026. 6% Notes due 2028. In the second quarter of 2015, the Company recorded a nonoperating special charge of $128 million for the extinguishment of the 2026 Notes and the 2028 Notes. The nonoperating special charge is related to the write off of unamortized non-cash debt discounts. See Note 10 of this report for additional information. EETCs. EETC Date Class Principal Final Stated Total debt Proceeds Remaining August 2014 A $ 823 September 2026 3.75% $ 823 $ 711 $ — August 2014 B 238 September 2022 4.625% 238 206 — $ 1,061 $ 1,061 $ 917 $ — In 2015, United borrowed approximately $480 million aggregate principal amount from various financial institutions to finance the purchase of several aircraft delivered in 2015. The notes evidencing these borrowings, which are secured by the related aircraft, have maturity dates ranging from 2025 to 2027 and interest rates comprised of the London Interbank Offered Rate plus a specified margin. The table below presents contractual principal payments at September 30, 2015 under then-outstanding long-term debt agreements in each of the next five calendar years (in millions): UAL and United Last three months of 2015 $ 388 2016 1,213 2017 802 2018 1,339 2019 1,767 After 2019 5,687 $ 11,196 |
Special Items
Special Items | 9 Months Ended |
Sep. 30, 2015 | |
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: 2015 2014 2015 2014 Severance and benefits $ 28 $ 6 $ 103 $ 58 Integration-related costs 15 28 47 79 Costs associated with permanently grounding Embraer ERJ 135 aircraft — — — 66 (Gains) losses on sale of assets and other special charges 33 9 45 61 Special charges 76 43 195 264 Nonoperating: Loss on extinguishment of debt and Venezuela currency loss 61 — 195 21 Income tax benefit — (3) — (4) Total operating and nonoperating special charges, net of income taxes 137 40 390 281 Income tax valuation allowance release (Note 4) (3,218) — (3,218) — Total special items $ (3,081) $ 40 $ (2,828) $ 281 During the three and nine months ended September 30, 2015, the Company recorded $28 million and $103 million, respectively, of severance and benefits primarily related to a voluntary early-out program for its flight attendants. In 2014, more than 2,500 flight attendants elected to voluntarily separate from the Company and will receive 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. Integration-related costs include compensation costs related primarily to systems integration and training for employees. During the three and nine months ended September 30, 2015, the Company recorded $33 million and $45 million, respectively, for losses on the sale of one aircraft, the impairment of several engines held for sale and discontinued internal software projects. During the third quarter of 2015, the Company recorded a $61 million foreign exchange loss related to its cash holdings in Venezuela. The Venezuelan government has maintained currency controls and fixed official exchange rates (i.e. Sistema Complementario de Administracion de Divisas (“SICAD”), and Sistema Marginal de Divisas (“SIMADI”)) for many years. Previously, airlines were permitted to use the more favorable SICAD rate (currently 13.5 Venezuelan bolivars to one U.S. dollar) if repatriating profits and for payments of local goods and services in Venezuela. During 2015, many of the payments for local goods and services have transitioned to utilizing the SIMADI rate (currently 200 Venezuelan bolivars to one U.S. dollar) or have been required to be paid in U.S. dollars. Furthermore, the Venezuelan government has not permitted the exchange and repatriations of local currency since mid-2014. As a result, the Company has decided to change the exchange rate from historical SICAD rates to a combination of SIMADI and SICAD rates based on projections of future cash payments. Including this adjustment, the Company’s resulting cash balance held in Venezuelan bolivars at September 30, 2015 is approximately $15 million. During the nine months ended September 30, 2015, the Company recorded $134 million of losses as part of Nonoperating income (expense): Miscellaneous, net due to the write-off of the unamortized non-cash debt discount related to the extinguishment of the 2026 Notes and the 2028 Notes. During the nine months ended September 30, 2014, the Company recorded $58 million of severance and benefits primarily related to reductions of management and front-line employees, including from Hopkins International Airport (“Cleveland”), as part of its cost savings initiatives. The Company reduced its average daily departures from Cleveland by over 60 percent during the second quarter of 2014. The Company is currently evaluating its options regarding its long-term contractual commitments at Cleveland. The capacity reductions at Cleveland may result in further special charges, which could be significant, related to our contractual commitments. During the nine months ended September 30, 2014, the Company recorded $66 million for the permanent grounding of 21 of the Company’s Embraer ERJ 135 regional aircraft under lease through 2018, which included an accrual for remaining lease payments and an amount for maintenance return conditions. The Company decided to permanently ground these 21 Embraer ERJ 135 aircraft as a result of new Embraer E175 regional jet deliveries, the impact of pilot shortages at regional carriers and fuel prices. During the nine months ended September 30, 2014, the Company recorded $33 million for charges related primarily to the impairment of its flight equipment held for disposal associated with its Boeing 737-300 and 737-500 fleets and incurred losses on sales of aircraft and other assets and other special losses totaling $28 million. During the nine months ended September 30, 2014, the Company recorded $21 million of losses due to exchange rate changes in Venezuela applicable to funds held in local currency. Accruals The accrual balance for severance and benefits was $110 million as of September 30, 2015, compared to $70 million as of September 30, 2014. The severance-related accrual as of September 30, 2015 is expected to be mostly paid through 2015. The following is a reconciliation of severance accrual activity for the period: Severance and Balance at December 31, 2014 $ 109 Accrual 103 Payments (102) Balance at September 30, 2015 $ 110 |
Significant Accounting Polici17
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards. Revenue from Contracts with Customers Revenue Recognition, The FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. 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 (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Computation of Earnings Per Share | The table below represents the computation of UAL’s basic and diluted earnings per share amounts and the number of securities that have been excluded from the computation of diluted earnings per share amounts because they were antidilutive (in millions, except per share amounts): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Basic earnings per share: Earnings available to common stockholders $ 4,816 $ 924 $ 6,517 $ 1,104 Basic weighted-average shares outstanding 375 370 379 370 Earnings per share, basic $ 12.83 $ 2.50 $ 17.19 $ 2.98 Diluted earnings per share: Earnings available to common stockholders $ 4,816 $ 924 $ 6,517 $ 1,104 Effect of convertible notes — 7 — 20 Earnings available to common stockholders including the effect of dilutive securities $ 4,816 $ 931 $ 6,517 $ 1,124 Diluted shares outstanding: Basic weighted-average shares outstanding 375 370 379 370 Effect of convertible notes — 22 — 24 Effect of employee stock awards 1 1 1 1 Diluted weighted-average shares outstanding 376 393 380 395 Earnings per share, diluted $ 12.82 $ 2.37 $ 17.15 $ 2.84 Potentially dilutive shares excluded from diluted per share amounts: Restricted stock and stock options — 1 — 1 |
Accumulated Other Comprehensi19
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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): UAL (a) Pension and Derivative Investments Pension and Derivative Total Balance at June 30, 2015 $ (442) $ (266) $ 11 $ (115) $ — $ (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) $ — (b) $ (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) UAL (a) Pension and Derivative Investments Pension and Derivative Total Balance at June 30, 2014 $ 660 $ 36 $ 8 $ (115) $ — $ 589 Changes in value (c) (66) (120) 3 — — (183) Amounts reclassified to earnings (c) (16) — (2) — — (18) Net change (82) (120) 1 — — (201) Balance at September 30, 2014 $ 578 $ (84) $ 9 $ (115) $ — $ 388 Balance at December 31, 2013 $ 699 $ 11 $ 13 $ (115) $ — $ 608 Changes in value (c) (71) (99) 4 — — (166) Amounts reclassified to earnings (c) (50) 4 (8) — — (54) Net change (121) (95) (4) — — (220) Balance at September 30, 2014 $ 578 $ (84) $ 9 $ (115) $ — $ 388 Details about AOCI Components Amount Reclassified Affected Line Item in Three Months Ended Nine Months Ended 2015 2014 2015 2014 Derivatives designated as cash flow hedges Fuel contracts-reclassifications of (gains) losses into earnings $ 150 $ — $ 429 $ 4 Aircraft fuel Amortization of pension and post-retirement items Amortization of unrecognized (gains) losses and prior service cost (credit) (d) 8 (16) 25 (50) Salaries and related costs Investments and other Available for sale securities-reclassifications of gains into earnings — (2) (1) (8) Miscellaneous, net (a) UAL and United amounts are substantially the same except for additional gains related to investments and other of $1 million at United for the nine months ended September 30, 2015. (b) Deferred tax balance was offset by the Company’s valuation allowance. (c) Income tax expense for these items 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, 2015 | |
Components of Net Periodic Benefit Cost | The Company’s net periodic benefit cost includes the following components (in millions): Pension Benefits Other Postretirement Three Months Ended Three Months Ended 2015 2014 2015 2014 Service cost $ 31 $ 24 $ 5 $ 5 Interest cost 50 50 20 22 Expected return on plan assets (49) (45) — (1) Amortization of unrecognized (gain) loss and prior service cost (credit) 21 3 (13) (19) Settlement (gain) loss 1 (1) — — Total $ 54 $ 31 $ 12 $ 7 Pension Benefits Other Postretirement Nine Months Ended Nine Months Ended 2015 2014 2015 2014 Service cost $ 93 $ 73 $ 15 $ 14 Interest cost 150 151 61 66 Expected return on plan assets (147) (134) (1) (2) Amortization of unrecognized (gain) loss and prior service cost (credit) 65 8 (40) (58) Settlement (gain) loss 2 (1) — — Total $ 163 $ 97 $ 35 $ 20 |
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, 2015 2014 2015 2014 Share-based compensation expense $ 7 $ 23 $ 40 $ 69 September 30, 2015 December 31, 2014 Unrecognized share-based compensation $ 48 $ 62 |
Financial Instruments and Fai21
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents disclosures about the financial assets and financial liabilities measured at fair value on a recurring basis in the Company’s financial statements (in millions): September 30, 2015 December 31, 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 UAL Cash and cash equivalents $ 3,427 $ 3,427 $ — $ — $ 2,002 $ 2,002 $ — $ — Short-term investments: Asset-backed securities 673 — 673 — 901 — 901 — Corporate debt 908 — 908 — 876 — 876 — Certificates of deposit placed through an account registry service (“CDARS”) 301 — 301 — 256 — 256 — Auction rate securities 16 — — 16 26 — — 26 U.S. government and agency notes 49 — 49 — 68 — 68 — Other fixed income securities 225 — 225 — 255 — 255 — Enhanced equipment trust certificates (“EETC”) 26 — — 26 28 — — 28 Fuel derivatives liability, net (312) — (312) — (717) — (717) — Foreign currency derivatives asset, net 2 — 2 — 2 — 2 — Restricted cash 208 208 — — 320 320 — — United Cash and cash equivalents $ 3,421 $ 3,421 $ — $ — $ 1,996 $ 1,996 $ — $ — Short-term investments: Asset-backed securities 673 — 673 — 901 — 901 — Corporate debt 908 — 908 — 876 — 876 — CDARS 301 — 301 — 256 — 256 — Auction rate securities 16 — — 16 26 — — 26 U.S. government and agency notes 49 — 49 — 68 — 68 — Other fixed income securities 225 — 225 — 255 — 255 — EETC 26 — — 26 28 — — 28 Fuel derivatives liability, net (312) — (312) — (717) — (717) — Foreign currency derivatives asset, net 2 — 2 — 2 — 2 — Restricted cash 208 208 — — 320 320 — — Convertible debt derivative asset — — — — 712 — — 712 Convertible debt derivative option liability — — — — (511) — — (511) |
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, 2015 December 31, 2014 Carrying Fair Value Carrying Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 UAL debt $ 11,222 $ 11,575 $ — $ 8,437 $ 3,138 $ 11,434 $ 12,386 $ — $ 8,568 $ 3,818 United debt 11,222 11,575 — 8,437 3,138 11,433 12,386 — 8,568 3,818 |
Hedging Activities (Tables)
Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Assets: Fuel contracts due within one year Receivables $ 6 $ — Fuel contracts with maturities greater than one year Other assets: Other, net 7 — Total assets $ 13 $ — Liabilities: Fuel contracts due within one year Fuel derivative instruments $ 217 $ 450 Fuel contracts with maturities greater than one year Other liabilities and deferred credits: Other — 27 Total liabilities $ 217 $ 477 Derivatives not designated for hedge accounting Assets: Fuel contracts due within one year Receivables $ 4 $ 6 Fuel contracts with maturities greater than one year Other assets: Other, net — — Total assets $ 4 $ 6 Liabilities: Fuel contracts due within one year Fuel derivative instruments $ 112 $ 244 Fuel contracts with maturities greater than one year Other liabilities and deferred credits: Other — 2 Total liabilities $ 112 $ 246 Total derivatives Assets: Fuel contracts due within one year Receivables $ 10 $ 6 Fuel contracts with maturities greater than one year Other assets: Other, net 7 — Total assets $ 17 $ 6 Liabilities: Fuel contracts due within one year Fuel derivative instruments $ 329 $ 694 Fuel contracts with maturities greater than one year Other liabilities and deferred credits: Other — 29 Total liabilities $ 329 $ 723 |
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 $ (238 ) $ (209 ) Other liabilities and deferred credits: Other — (30 ) Hedge derivatives liabilities, net $ (238 ) $ (239 ) |
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 Loss Amount of Loss Three Months Ended Three Months Ended Three Months Ended 2015 2014 2015 2014 2015 2014 Fuel contracts $ (181 ) $ (120 ) $ (150 ) $ — $ — $ (8 ) Derivatives designated as cash flow hedges Amount of Loss Loss Amount of Loss Nine Months Ended Nine Months Ended Nine Months Ended 2015 2014 2015 2014 2015 2014 Fuel contracts $ (227 ) $ (99 ) $ (429 ) $ (4 ) $ — $ (4 ) |
Schedule of Derivative Instruments not Designated as Hedges Losses | Derivatives not designated for hedge accounting Fuel contracts Three Months Ended Nine Months Ended 2015 2014 2015 2014 Amount of loss recognized in Nonoperating income (expense): Miscellaneous, net $ (67 ) $ (102 ) $ (69 ) $ (103 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Commitments to Purchase Aircrafts | The table below summarizes United’s commitments as of September 30, 2015, 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 2015 $ 0.6 2016 3.0 2017 2.3 2018 2.3 2019 3.1 After 2019 10.7 $ 22.0 |
Summary of Scheduled Future Minimum Lease Payments Under Aircraft Operating Leases and Capacity Purchase Agreements | The table below summarizes the Company’s anticipated future payments through the end of the terms of our CPAs, excluding variable pass-through costs such as fuel and landing fees, among others. In addition, the table below summarizes the Company’s scheduled future minimum lease payments under aircraft operating leases having initial or remaining noncancelable lease terms of more than one year and includes aircraft rent or ownership costs under CPAs, including estimated commitments under the SkyWest CPA amendment for the operation of 18 new Embraer E175 aircraft. (In millions) Capacity Purchase Aircraft Operating Last three months of 2015 $ 460 $ 291 2016 1,836 1,322 2017 1,725 1,292 2018 1,332 1,068 2019 1,103 868 After 2019 5,314 3,095 $ 11,770 $ 7,936 |
Aircraft Type | |
Schedule of Commitments to Purchase Aircrafts | As of September 30, 2015, United had firm commitments and options to purchase aircraft from The Boeing Company (“Boeing”), Embraer S.A. (“Embraer”) and Airbus S.A.S. (“Airbus”) presented in the table below: Aircraft Type Number of Firm Airbus A350-1000 35 Boeing 737NG/737 MAX 9 117 Boeing 777-300ER 10 Boeing 787-8/-9/-10 33 Embraer E175 10 (a) United also has options and purchase rights for additional aircraft. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Details of Pass Through Trusts | Certain details of the pass-through trusts with proceeds received from issuance of debt in 2015 are as follows (in millions, except stated interest rate): EETC Date Class Principal Final Stated Total debt Proceeds Remaining August 2014 A $ 823 September 2026 3.75% $ 823 $ 711 $ — August 2014 B 238 September 2022 4.625% 238 206 — $ 1,061 $ 1,061 $ 917 $ — |
Contractual Principal Payments | The table below presents contractual principal payments at September 30, 2015 under then-outstanding long-term debt agreements in each of the next five calendar years (in millions): UAL and United Last three months of 2015 $ 388 2016 1,213 2017 802 2018 1,339 2019 1,767 After 2019 5,687 $ 11,196 |
Special Items (Tables)
Special Items (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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: 2015 2014 2015 2014 Severance and benefits $ 28 $ 6 $ 103 $ 58 Integration-related costs 15 28 47 79 Costs associated with permanently grounding Embraer ERJ 135 aircraft — — — 66 (Gains) losses on sale of assets and other special charges 33 9 45 61 Special charges 76 43 195 264 Nonoperating: Loss on extinguishment of debt and Venezuela currency loss 61 — 195 21 Income tax benefit — (3) — (4) Total operating and nonoperating special charges, net of income taxes 137 40 390 281 Income tax valuation allowance release (Note 4) (3,218) — (3,218) — Total special items $ (3,081) $ 40 $ (2,828) $ 281 |
Schedule of Severance Related Accruals | The following is a reconciliation of severance accrual activity for the period: Severance and Balance at December 31, 2014 $ 109 Accrual 103 Payments (102) Balance at September 30, 2015 $ 110 |
Significant Accounting Polici26
Significant Accounting Policies - Additional Information (Detail) $ in Millions | Sep. 30, 2015USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |
Total unamortized debt issuance costs | $ 180 |
Short-term Investments | |
Summary Of Significant Accounting Policies [Line Items] | |
Investments in certain entities that calculate net asset value per share included in short-term investments | $ 200 |
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, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Basic earnings per share: | ||||
Earnings available to common stockholders | $ 4,816 | $ 924 | $ 6,517 | $ 1,104 |
Basic weighted-average shares outstanding | 375 | 370 | 379 | 370 |
Earnings per share, basic | $ 12.83 | $ 2.50 | $ 17.19 | $ 2.98 |
Diluted earnings per share: | ||||
Earnings available to common stockholders | $ 4,816 | $ 924 | $ 6,517 | $ 1,104 |
Effect of convertible notes | 7 | 20 | ||
Earnings available to common stockholders including the effect of dilutive securities | $ 4,816 | $ 931 | $ 6,517 | $ 1,124 |
Diluted shares outstanding: | ||||
Basic weighted-average shares outstanding | 375 | 370 | 379 | 370 |
Effect of convertible notes | 22 | 24 | ||
Effect of employee stock awards | 1 | 1 | 1 | 1 |
Diluted weighted-average shares outstanding | 376 | 393 | 380 | 395 |
Earnings per share, diluted | $ 12.82 | $ 2.37 | $ 17.15 | $ 2.84 |
Restricted Stock And Stock Options | ||||
Potentially dilutive shares excluded from diluted per share amounts: | ||||
Potentially dilutive shares excluded from diluted per share amounts | 1 | 1 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - USD ($) shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jan. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Oct. 22, 2015 | Jul. 21, 2015 | Dec. 31, 2014 | |
Earnings Loss Per Share [Line Items] | |||||||
Share repurchase program authorized amount | $ 3,000,000,000 | $ 1,000,000,000 | |||||
Payments for repurchases of common stock | $ 710,000,000 | $ 220,000,000 | |||||
Share repurchase program remaining authorized amount | $ 2,970,000,000 | $ 2,970,000,000 | |||||
Share repurchase program completion date | Dec. 31, 2017 | ||||||
Open Market Repurchases | |||||||
Earnings Loss Per Share [Line Items] | |||||||
Payments for repurchases of common stock | $ 262,000,000 | $ 712,000,000 | |||||
Number of shares repurchased | 4.6 | 11.9 | |||||
Subsequent Event | |||||||
Earnings Loss Per Share [Line Items] | |||||||
Agreement to repurchase through an accelerated share repurchase program | $ 300,000,000 | ||||||
Unsecured Debt | 4.5% Convertible Notes Due 2015 | |||||||
Earnings Loss Per Share [Line Items] | |||||||
Long-term Debt, Gross | $ 202,000,000 | $ 202,000,000 | $ 202,000,000 | ||||
Debt instrument stated interest rate | 4.50% | 4.50% | 4.50% | ||||
Common stock issued in exchange for convertible notes | 11 | 11 | |||||
Debt instrument maturity year | 2,015 | ||||||
Convertible debt outstanding | $ 0 | $ 0 |
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, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | [1] | $ (812) | $ 589 | $ (1,079) | $ 608 | |||
Changes in value | [1] | (116) | (183) | [2] | (144) | (166) | [2] | |
Amounts reclassified to earnings | [1] | (6) | (18) | [2] | 289 | (54) | [2] | |
Comprehensive income (loss) adjustments | [1] | (122) | (201) | 145 | (220) | |||
Ending Balance | [1] | (934) | 388 | (934) | 388 | |||
Pension and Other Postretirement Liabilities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | [1] | (442) | 660 | (472) | 699 | |||
Changes in value | [1] | (10) | (66) | [2] | 3 | (71) | [2] | |
Amounts reclassified to earnings | [1] | 8 | (16) | [2] | 25 | (50) | [2] | |
Comprehensive income (loss) adjustments | [1] | (2) | (82) | 28 | (121) | |||
Ending Balance | [1] | (444) | 578 | (444) | 578 | |||
Derivative Contracts | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | [1] | (266) | 36 | (499) | 11 | |||
Changes in value | [1] | (181) | (120) | [2] | (227) | (99) | [2] | |
Amounts reclassified to earnings | [1] | 150 | 429 | 4 | [2] | |||
Comprehensive income (loss) adjustments | [1] | (31) | (120) | 202 | (95) | |||
Ending Balance | [1] | (297) | (84) | (297) | (84) | |||
Investments and Other | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | [1] | 11 | 8 | 7 | 13 | |||
Changes in value | [1] | (6) | 3 | [2] | (1) | 4 | [2] | |
Amounts reclassified to earnings | [1] | (2) | [2] | (1) | (8) | [2] | ||
Comprehensive income (loss) adjustments | [1] | (6) | 1 | (2) | (4) | |||
Ending Balance | [1] | 5 | 9 | 5 | 9 | |||
Pension and Other Postretirement Deferred Taxes | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | [1] | (115) | (115) | (115) | (115) | |||
Changes in value | [1] | (1) | (1) | |||||
Amounts reclassified to earnings | [1] | (9) | (9) | |||||
Comprehensive income (loss) adjustments | [1] | (10) | (10) | |||||
Ending Balance | [1] | (125) | (115) | (125) | (115) | |||
Derivative Contracts Deferred Taxes | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | [1] | 0 | 0 | 0 | [3] | 0 | ||
Changes in value | [1] | 82 | 82 | |||||
Amounts reclassified to earnings | [1] | (155) | (155) | |||||
Comprehensive income (loss) adjustments | [1] | (73) | (73) | |||||
Ending Balance | [1] | $ (73) | $ 0 | $ (73) | $ 0 | |||
[1] | UAL and United amounts are substantially the same except for additional gains related to investments and other of $1 million at United for the nine months ended September 30, 2015. | |||||||
[2] | Income tax expense for these items was offset by the Company's valuation allowance. | |||||||
[3] | Deferred tax balance was offset by the Company's valuation allowance. |
Details about Accumulated Other
Details about Accumulated Other Comprehensive Income Components (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Salaries And Related Costs | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Amortization of unrecognized (gains) losses and prior service cost (credit) | [1] | $ 8 | $ (16) | $ 25 | $ (50) |
Miscellaneous, Net | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Available for sale securities-reclassifications of gains into earnings | $ (2) | (1) | (8) | ||
Fuel Oil Contract | Cash Flow Hedging | Aircraft Fuel | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Fuel contracts-reclassifications of (gains) losses into earnings | $ 150 | $ 429 | $ 4 | ||
[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). |
Components of Accumulated Oth31
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax (Parenthetical) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
United Airlines, Inc. | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Additional gains related to investments and other | $ 1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | $ (3,210) | $ (4) | $ (3,203) | $ 1 | ||
Release of valuation allowance | 3,200 | 3,200 | ||||
Pre-tax profit | 1,606 | $ 920 | $ 3,314 | $ 1,105 | ||
Federal statutory income tax rate | 35.00% | |||||
Scenario Forecast | ||||||
Income Taxes [Line Items] | ||||||
Effective income tax rate | 37.00% | |||||
Federal | ||||||
Income Taxes [Line Items] | ||||||
Release of valuation allowance | 3,100 | $ 3,100 | ||||
State | ||||||
Income Taxes [Line Items] | ||||||
Release of valuation allowance | $ 100 | $ 100 | ||||
State | Scenario Forecast | ||||||
Income Taxes [Line Items] | ||||||
Release of valuation allowance | $ 82 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 31 | $ 24 | $ 93 | $ 73 |
Interest cost | 50 | 50 | 150 | 151 |
Expected return on plan assets | (49) | (45) | (147) | (134) |
Amortization of unrecognized (gain) loss and prior service cost (credit) | 21 | 3 | 65 | 8 |
Settlement (gain) loss | 1 | (1) | 2 | (1) |
Total | 54 | 31 | 163 | 97 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5 | 5 | 15 | 14 |
Interest cost | 20 | 22 | 61 | 66 |
Expected return on plan assets | (1) | (1) | (2) | |
Amortization of unrecognized (gain) loss and prior service cost (credit) | (13) | (19) | (40) | (58) |
Total | $ 12 | $ 7 | $ 35 | $ 20 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)shares | |
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] | |
Number of days used to compute performance period average closing price of restricted stock units | 20 days |
Share-Based Compensation, award granted | 0.3 |
Share-Based Compensation, vesting period | 3 years |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-Based Compensation, award granted | 0.2 |
Share-Based Compensation, vesting period | 3 years |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of days used to compute performance period average closing price of restricted stock units | 20 days |
Share-Based Compensation, vesting period | 3 years |
Share-Based Compensation, vesting date | Dec. 31, 2017 |
Vesting Based On ROIC and Pre-Tax Margin | Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-Based Compensation, award granted | 0.6 |
Pension Benefits | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employer contribution to tax-qualified defined benefit pension plans | $ | $ 800 |
Share-Based Compensation Expens
Share-Based Compensation Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | |||||
Share-based compensation expense | $ 7 | $ 23 | $ 40 | $ 69 | |
Unrecognized share-based compensation | $ 48 | $ 48 | $ 62 |
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, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 3,427 | $ 2,002 |
Restricted cash | 208 | 320 |
United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 3,421 | 1,996 |
Restricted cash | 208 | 320 |
Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 673 | 901 |
Asset-backed Securities | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 673 | 901 |
Corporate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 908 | 876 |
Corporate Debt | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 908 | 876 |
CDARS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 301 | 256 |
CDARS | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 301 | 256 |
Auction Rate Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 16 | 26 |
Auction Rate Securities | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 16 | 26 |
U.S. Government and Agency Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 49 | 68 |
U.S. Government and Agency Notes | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 49 | 68 |
Other Fixed Income Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 225 | 255 |
Other Fixed Income Securities | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 225 | 255 |
EETC | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
EETC | 26 | 28 |
EETC | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
EETC | 26 | 28 |
Fuel Derivatives Liability, Net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | (312) | (717) |
Fuel Derivatives Liability, Net | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | (312) | (717) |
Foreign Currency Derivatives Asset, Net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | 2 | 2 |
Foreign Currency Derivatives Asset, Net | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | 2 | 2 |
Convertible Debt Derivative Asset | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt derivative asset | 712 | |
Convertible Debt Derivative Option Liability | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt derivative option liability | (511) | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 3,427 | 2,002 |
Restricted cash | 208 | 320 |
Level 1 | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 3,421 | 1,996 |
Restricted cash | 208 | 320 |
Level 2 | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 673 | 901 |
Level 2 | Asset-backed Securities | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 673 | 901 |
Level 2 | Corporate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 908 | 876 |
Level 2 | Corporate Debt | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 908 | 876 |
Level 2 | CDARS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 301 | 256 |
Level 2 | CDARS | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 301 | 256 |
Level 2 | U.S. Government and Agency Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 49 | 68 |
Level 2 | U.S. Government and Agency Notes | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 49 | 68 |
Level 2 | Other Fixed Income Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 225 | 255 |
Level 2 | Other Fixed Income Securities | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 225 | 255 |
Level 2 | Fuel Derivatives Liability, Net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | (312) | (717) |
Level 2 | Fuel Derivatives Liability, Net | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | (312) | (717) |
Level 2 | Foreign Currency Derivatives Asset, Net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | 2 | 2 |
Level 2 | Foreign Currency Derivatives Asset, Net | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | 2 | 2 |
Level 3 | Auction Rate Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 16 | 26 |
Level 3 | Auction Rate Securities | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 16 | 26 |
Level 3 | EETC | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
EETC | 26 | 28 |
Level 3 | EETC | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
EETC | $ 26 | 28 |
Level 3 | Convertible Debt Derivative Asset | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt derivative asset | 712 | |
Level 3 | Convertible Debt Derivative Option Liability | United Airlines, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt derivative option liability | $ (511) |
Financial Instruments and Fai37
Financial Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 9 Months Ended |
Jan. 31, 2015 | Sep. 30, 2015 | |
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 | 40 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 | 7 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 | |
EETC | Maximum | ||
Fair Value [Line Items] | ||
Available-for-sale securities maturity, year | 2,019 | |
Unsecured Debt | 4.5% Convertible Notes Due 2015 | ||
Fair Value [Line Items] | ||
Debt instrument stated interest rate | 4.50% | 4.50% |
Debt instrument principal amount | $ 202 | $ 202 |
Common stock issued in exchange for convertible notes | 11 | 11 |
Carrying Values and Estimated F
Carrying Values and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 11,222 | $ 11,434 |
Carrying (Reported) Amount, Fair Value Disclosure | United Airlines, Inc. | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 11,222 | 11,433 |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 11,575 | 12,386 |
Estimate of Fair Value, Fair Value Disclosure | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 8,437 | 8,568 |
Estimate of Fair Value, Fair Value Disclosure | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 3,138 | 3,818 |
Estimate of Fair Value, Fair Value Disclosure | United Airlines, Inc. | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 11,575 | 12,386 |
Estimate of Fair Value, Fair Value Disclosure | United Airlines, Inc. | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | 8,437 | 8,568 |
Estimate of Fair Value, Fair Value Disclosure | United Airlines, Inc. | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt fair value | $ 3,138 | $ 3,818 |
Hedging Activities - Additional
Hedging Activities - Additional Information (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2015USD ($)gal | Dec. 31, 2014USD ($) | |
Derivatives And Hedging Activities [Line Items] | ||
Fuel hedges expiration date | 2016-12 | |
Fuel hedge collateral deposits | $ 156 | $ 577 |
Fair value of derivative asset | $ 17 | 6 |
Cash Flow Hedging | ||
Derivatives And Hedging Activities [Line Items] | ||
Percentage of projection of European euro for hedging financial instruments for remainder of 2015 | 36.00% | |
Percentage of projection of European euro for hedging financial instruments for 2016 | 21.00% | |
Foreign Currency Derivatives Asset, Net | ||
Derivatives And Hedging Activities [Line Items] | ||
Fair value of derivative asset | $ 2 | |
2015 Projected | ||
Derivatives And Hedging Activities [Line Items] | ||
Percentage of projection for hedging financial instruments | 23.00% | |
Volume of fuel hedging | gal | 221,000,000 | |
2016 Projected | ||
Derivatives And Hedging Activities [Line Items] | ||
Percentage of projection for hedging financial instruments | 17.00% | |
Volume of fuel hedging | gal | 652,000,000 | |
Fuel Derivative Instruments | ||
Derivatives And Hedging Activities [Line Items] | ||
Fuel hedge collateral deposits | $ 156 | $ 577 |
Description of Derivative Instr
Description of Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, assets | $ 17 | $ 6 |
Fuel contracts, liabilities | 329 | 723 |
Fuel Derivative Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, liabilities | 329 | 694 |
Receivables | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, assets | 10 | 6 |
Other, net | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, assets | 7 | |
Other | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, liabilities | 29 | |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, assets | 13 | |
Fuel contracts, liabilities | 217 | 477 |
Designated as Hedging Instrument | Cash Flow Hedging | Fuel Derivative Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, liabilities | 217 | 450 |
Designated as Hedging Instrument | Cash Flow Hedging | Receivables | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, assets | 6 | |
Designated as Hedging Instrument | Cash Flow Hedging | Other, net | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, assets | 7 | |
Designated as Hedging Instrument | Cash Flow Hedging | Other | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, liabilities | 27 | |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, assets | 4 | 6 |
Fuel contracts, liabilities | 112 | 246 |
Not Designated as Hedging Instrument | Fuel Derivative Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, liabilities | 112 | 244 |
Not Designated as Hedging Instrument | Receivables | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, assets | $ 4 | 6 |
Not Designated as Hedging Instrument | Other | ||
Derivatives, Fair Value [Line Items] | ||
Fuel contracts, liabilities | $ 2 |
Offsetting Liabilities (Detail)
Offsetting Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Offsetting Asset and Liabilities [Line Items] | ||
Potential net fair value positions elected to offset | $ (238) | $ (239) |
Other | ||
Offsetting Asset and Liabilities [Line Items] | ||
Potential net fair value positions elected to offset | (30) | |
Fuel Derivative Instruments | ||
Offsetting Asset and Liabilities [Line Items] | ||
Potential net fair value positions elected to offset | $ (238) | $ (209) |
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, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Recognized in AOCI on Derivatives (Effective Portion) | $ (181) | $ (120) | $ (227) | $ (99) |
Loss Reclassified from AOCI into Income (Fuel Expense) (Effective Portion) | $ (150) | $ (429) | (4) | |
Amount of Loss Recognized in Nonoperating income (expense): Miscellaneous, net (Ineffective Portion) | $ (8) | $ (4) |
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, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of loss recognized in Nonoperating income (expense): Miscellaneous, net | $ (67) | $ (102) | $ (69) | $ (103) |
Schedule of Commitments to Purc
Schedule of Commitments to Purchase Aircrafts (Detail) - United Airlines, Inc. - Capital Addition Purchase Commitments | Sep. 30, 2015Aircraft | [1] |
Airbus A350-1000 Aircraft | ||
Long-term Purchase Commitment [Line Items] | ||
Number of new aircraft committed to purchase | 35 | |
Boeing 737NG/737 MAX 9 Aircraft | ||
Long-term Purchase Commitment [Line Items] | ||
Number of new aircraft committed to purchase | 117 | |
Boeing 777-300ER Aircraft | ||
Long-term Purchase Commitment [Line Items] | ||
Number of new aircraft committed to purchase | 10 | |
Boeing 787-8/-9/-10 Aircraft | ||
Long-term Purchase Commitment [Line Items] | ||
Number of new aircraft committed to purchase | 33 | |
Embraer E175 Aircraft | ||
Long-term Purchase Commitment [Line Items] | ||
Number of new aircraft committed to purchase | 10 | |
[1] | United also has options and purchase rights for additional aircraft. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) Employee in Thousands, $ in Millions | 9 Months Ended | |
Sep. 30, 2015USD ($)EmployeeAircraftArtificat | Jun. 30, 2015Aircraft | |
Tax-exempt special facilities revenue bonds | ||
Commitments and Contingencies [Line Items] | ||
Guarantor obligations, maximum exposure | $ | $ 2,000 | |
Operating leases obligations | $ | 1,500 | |
Capital leases obligations | $ | 295 | |
Floating Rate Debt | ||
Commitments and Contingencies [Line Items] | ||
Debt instrument principal amount | $ | 2,600 | |
Fixed Rate Debt | ||
Commitments and Contingencies [Line Items] | ||
Debt instrument principal amount | $ | 124 | |
Loans And Leases From Non U S Entities | ||
Commitments and Contingencies [Line Items] | ||
Debt instrument principal amount | $ | $ 2,600 | |
Minimum | Tax-exempt special facilities revenue bonds | ||
Commitments and Contingencies [Line Items] | ||
Debt instrument maturity year | 2,015 | |
Maximum | ||
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 | |
Maximum | Loans And Leases From Non U S Entities | ||
Commitments and Contingencies [Line Items] | ||
Debt instrument, remaining terms (years) | 12 years | |
United Airlines, Inc. | ||
Commitments and Contingencies [Line Items] | ||
Number of employees | Employee | 84 | |
Percentage of employees represented by various U.S. labor organizations | 80.00% | |
United Airlines, Inc. | Minimum | ||
Commitments and Contingencies [Line Items] | ||
Debt instrument maturity year | 2,025 | |
United Airlines, Inc. | Maximum | ||
Commitments and Contingencies [Line Items] | ||
Debt instrument maturity year | 2,027 | |
JP Morgan | ||
Commitments and Contingencies [Line Items] | ||
Restricted cash | $ | $ 25 | |
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 | 2 | |
Capital Addition Purchase Commitments | United Airlines, Inc. | Boeing 787-9 | ||
Commitments and Contingencies [Line Items] | ||
Number of aircraft expected to be delivered | 3 | |
Capital Addition Purchase Commitments | AerCap Holdings N.V. | A319 aircraft | ||
Commitments and Contingencies [Line Items] | ||
Number of used aircraft expected to be delivered over the next two years beginning in early 2016 | 11 | |
Capital Addition Purchase Commitments | AerCap Holdings N.V. | Maximum | A319 aircraft | ||
Commitments and Contingencies [Line Items] | ||
Number of used aircraft expected to be delivered over the next five years | 14 | |
Capital Addition Purchase Commitments | SkyWest | Embraer E175 Aircraft | Capacity Purchase Arrangement | ||
Commitments and Contingencies [Line Items] | ||
Number of aircraft operated | 18 | |
Capital Addition Purchase Commitments | SkyWest | Minimum | Embraer E175 Aircraft | Capacity Purchase Arrangement | ||
Commitments and Contingencies [Line Items] | ||
New aircraft, scheduled delivery date | 2,016 | |
Capital Addition Purchase Commitments | SkyWest | Maximum | Embraer E175 Aircraft | Capacity Purchase Arrangement | ||
Commitments and Contingencies [Line Items] | ||
New aircraft, scheduled delivery date | 2,017 | |
Capital Addition Purchase Commitments | Mesa | Embraer E175 Aircraft | Capacity Purchase Arrangement | ||
Commitments and Contingencies [Line Items] | ||
Number of aircraft to be acquired | 15 | |
Capital Addition Purchase Commitments | Mesa | Embraer E175 Aircraft | Capacity Purchase Arrangement | At the time of each aircraft's delivery, subject to certain conditions | ||
Commitments and Contingencies [Line Items] | ||
Number of aircraft to be acquired | 10 | |
Capital Addition Purchase Commitments | Mesa | Embraer E175 Aircraft | Capacity Purchase Arrangement | Aircrafts directly purchased from Embraer | ||
Commitments and Contingencies [Line Items] | ||
Number of aircraft to be acquired | Artificat | 5 | |
Capital Addition Purchase Commitments | Mesa | Minimum | Embraer E175 Aircraft | Capacity Purchase Arrangement | ||
Commitments and Contingencies [Line Items] | ||
New aircraft, scheduled delivery date | 2,015 | |
Capital Addition Purchase Commitments | Mesa | Maximum | Embraer E175 Aircraft | Capacity Purchase Arrangement | ||
Commitments and Contingencies [Line Items] | ||
New aircraft, scheduled delivery date | 2,016 |
Schedule of Acquisition of Airc
Schedule of Acquisition of Aircrafts and Related Spare Engines (Detail) $ in Billions | Sep. 30, 2015USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Last three months of 2015 | $ 0.6 |
2,016 | 3 |
2,017 | 2.3 |
2,018 | 2.3 |
2,019 | 3.1 |
After 2,019 | 10.7 |
Total commitments | $ 22 |
Summary of Scheduled Future Min
Summary of Scheduled Future Minimum Lease Payments Under Aircraft Operating Leases (Detail) $ in Millions | Sep. 30, 2015USD ($) |
Capacity Purchase Agreements | |
Commitments and Contingencies Disclosure [Line Items] | |
Last three months of 2015 | $ 460 |
2,016 | 1,836 |
2,017 | 1,725 |
2,018 | 1,332 |
2,019 | 1,103 |
After 2,019 | 5,314 |
Contractual Obligation, Total | 11,770 |
Aircraft Operating Leases | |
Commitments and Contingencies Disclosure [Line Items] | |
Last three months of 2015 | 291 |
2,016 | 1,322 |
2,017 | 1,292 |
2,018 | 1,068 |
2,019 | 868 |
After 2,019 | 3,095 |
Operating leases obligations | $ 7,936 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | May. 01, 2015 | Apr. 01, 2015 | Jan. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Unsecured Debt | 4.5% Convertible Notes Due 2015 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument stated interest rate | 4.50% | 4.50% | |||||
Long-term Debt, Gross | $ 202 | $ 202 | |||||
Common stock issued in exchange for convertible notes | 11 | 11 | |||||
Debt instrument maturity year | 2,015 | ||||||
United Airlines, Inc. | |||||||
Debt Instrument [Line Items] | |||||||
Borrowed principal amount | $ 480 | ||||||
United Airlines, Inc. | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument maturity year | 2,025 | ||||||
United Airlines, Inc. | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument maturity year | 2,027 | ||||||
United Airlines, Inc. | 6% Notes due 2026 and 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Write off of unamortized discount | $ 128 | ||||||
United Airlines, Inc. | Unsecured Debt | 4.5% Convertible Notes Due 2015 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument stated interest rate | 4.50% | ||||||
Long-term Debt, Gross | $ 202 | $ 202 | |||||
Common stock issued in exchange for convertible notes | 11 | ||||||
Debt instrument maturity year | 2,015 | ||||||
United Airlines, Inc. | Unsecured Debt | 6% Notes Due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument stated interest rate | 6.00% | ||||||
Debt instrument maturity year | 2,026 | ||||||
Debt purchased and retired | $ 303 | $ 18 | |||||
United Airlines, Inc. | Unsecured Debt | 6% Notes Due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument stated interest rate | 6.00% | ||||||
Debt instrument maturity year | 2,028 | ||||||
Debt purchased and retired | $ 298 | $ 13 | |||||
United Airlines, Inc. | 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) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ||
Proceeds received from issuance of debt | $ 613 | $ 1,177 |
EETC | ||
Debt Instrument [Line Items] | ||
Total debt recorded | 1,061 | |
Proceeds received from issuance of debt | 917 | |
Remaining proceeds from issuance of debt to be received in future periods | 0 | |
EETC | August 2014 | ||
Debt Instrument [Line Items] | ||
Principal | 1,061 | |
United Airlines, Inc. | ||
Debt Instrument [Line Items] | ||
Principal | 480 | |
Proceeds received from issuance of debt | 613 | $ 1,177 |
United Airlines, Inc. | Class A Pass Through Certificates | August 2014 | ||
Debt Instrument [Line Items] | ||
Principal | $ 823 | |
Final expected distribution date | 2026-09 | |
Stated interest rate | 3.75% | |
Total debt recorded | $ 823 | |
Proceeds received from issuance of debt | 711 | |
Remaining proceeds from issuance of debt to be received in future periods | 0 | |
United Airlines, Inc. | Class B Pass Through Certificates | August 2014 | ||
Debt Instrument [Line Items] | ||
Principal | $ 238 | |
Final expected distribution date | 2022-09 | |
Stated interest rate | 4.625% | |
Total debt recorded | $ 238 | |
Proceeds received from issuance of debt | 206 | |
Remaining proceeds from issuance of debt to be received in future periods | $ 0 |
Contractual Principal Payments
Contractual Principal Payments (Detail) - UAL and United $ in Millions | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | |
Last three months of 2015 | $ 388 |
2,016 | 1,213 |
2,017 | 802 |
2,018 | 1,339 |
2,019 | 1,767 |
After 2,019 | 5,687 |
Long-term debt | $ 11,196 |
Components of Special Items (De
Components of Special Items (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating: | ||||
Severance and benefits | $ 28 | $ 6 | $ 103 | $ 58 |
Integration-related costs | 15 | 28 | 47 | 79 |
Costs associated with permanently grounding Embraer ERJ 135 aircraft | 66 | |||
(Gains) losses on sale of assets and other special charges | 33 | 9 | 45 | 61 |
Special charges | 76 | 43 | 195 | 264 |
Nonoperating: | ||||
Loss on extinguishment of debt and Venezuela currency loss | 61 | 195 | 21 | |
Income tax benefit | (3) | (4) | ||
Total operating and nonoperating special charges, net of income taxes | 137 | 40 | 390 | 281 |
Income tax valuation allowance release (Note 4) | (3,218) | (3,218) | ||
Total special items | $ (3,081) | $ 40 | $ (2,828) | $ 281 |
Special Items - Additional Info
Special Items - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014 | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($)Aircraft | Dec. 31, 2014USD ($)Attendant | |
Special Charges [Line Items] | ||||||
Severance and benefits | $ 28,000,000 | $ 6,000,000 | $ 103,000,000 | $ 58,000,000 | ||
(Gains) losses on sale of assets and other special charges | 33,000,000 | 9,000,000 | $ 45,000,000 | 61,000,000 | ||
Venezuela local currency loss | $ 61,000,000 | 21,000,000 | ||||
Foreign currency exchange rate per US dollar, description | 200 Venezuelan bolivars to one U.S. dollar | |||||
Foreign currency exchange rate | 200 | 200 | ||||
Loss on extinguishment of debt and other, net | $ 134,000,000 | |||||
Costs associated with permanently grounding Embraer ERJ 135 aircraft | $ 66,000,000 | |||||
Number of leased aircraft | Aircraft | 21 | |||||
Lease expiry year | 2,018 | |||||
Accrual severance and benefit | $ 110,000,000 | $ 70,000,000 | $ 110,000,000 | $ 70,000,000 | ||
Severance-related accrual expected payment date | 2,015 | |||||
Venezuelan bolivars | ||||||
Special Charges [Line Items] | ||||||
Unrestricted cash balance held as Venezuelan bolivars | $ 15,000,000 | $ 15,000,000 | ||||
Cleveland | ||||||
Special Charges [Line Items] | ||||||
Severance and benefits | 58,000,000 | |||||
Weighted Average | Cleveland | ||||||
Special Charges [Line Items] | ||||||
Percentage of flight reductions in average daily departures from Cleveland | 60.00% | |||||
Boeing 737-300 and 737-500 fleets | ||||||
Special Charges [Line Items] | ||||||
(Gains) losses on sale of assets and other special charges | 28,000,000 | |||||
Impairment of assets held for disposal | $ 33,000,000 | |||||
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 | |||||
Scenario, Previously Reported [Member] | ||||||
Special Charges [Line Items] | ||||||
Foreign currency exchange rate per US dollar, description | 13.5 Venezuelan bolivars to one U.S. dollar | |||||
Foreign currency exchange rate | 13.5 | 13.5 |
Schedule of Severance Related A
Schedule of Severance Related Accruals (Detail) - Severance and Benefits $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Schedule Of Accrual Activity [Line Items] | |
Beginning Balance | $ 109 |
Accrual | 103 |
Payments | (102) |
Ending Balance | $ 110 |