(a) | Use of Estimates\u2014The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (\"GAAP\") requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. |
(b) | Revenue Recognition\u2014The Company presents Passenger revenue, Cargo revenue and Other operating revenue on its income statement. Passenger revenue is recognized when transportation is provided and Cargo revenue is recognized when shipments arrive at their destination. Other operating revenue is recognized as the related performance obligations are satisfied. |
Revenue by Geography. The Company further disaggregates revenue by geographic regions. |
2019 | 2018 | 2017 | ||||||||||
Domestic (U.S. and Canada) | $ | 26,960 | $ | 25,552 | $ | 23,114 | ||||||
Atlantic | 7,387 | 7,103 | 6,340 | |||||||||
Pacific | 5,132 | 5,188 | 4,914 | |||||||||
Latin America | 3,780 | 3,460 | 3,416 | |||||||||
Total | $ | 43,259 | $ | 41,303 | $ | 37,784 |
(c) | Ticket Taxes\u2014Certain governmental taxes are imposed on the Company's ticket sales through a fee included in ticket prices. The Company collects these fees and remits them to the appropriate government agency. These fees are recorded on a net basis and, as a result, are excluded from revenue. |
(d) | Frequent Flyer Accounting\u2014United's MileagePlus loyalty program builds customer loyalty by offering awards, benefits and services to program participants. Members in this program earn miles for travel on United, United Express, Star Alliance members and certain other airlines that participate in the program. Members can also earn miles by purchasing goods and services from our network of\u00a0non-airline\u00a0partners. We have contracts to sell miles to these partners with the terms extending from one to nine years. These partners include domestic and international credit card issuers, retail merchants, hotels, car rental companies and our participating airline partners. Miles can be redeemed for free (other than taxes and government-imposed fees), discounted or upgraded air travel and\u00a0non-travel\u00a0awards. |
\u2022 | MileagePlus miles awarded \u2013 United has a performance obligation to provide MileagePlus cardholders with miles to be used for air travel and non-travel award redemptions. The Company records Passenger revenue related to the travel awards when the transportation is provided and records Other revenue related to the non-travel awards when the goods or services are delivered. The Company records the cost associated with non-travel awards in Other operating revenue. |
\u2022 | Marketing \u2013 United has a performance obligation to provide Chase access to United's customer list and the use of United's brand. Marketing revenue is recorded to Other operating revenue as miles are delivered to Chase. |
\u2022 | Advertising \u2013 United has a performance obligation to provide advertising in support of the MileagePlus card in various customer contact points such as United's website, email promotions, direct mail campaigns, airport advertising and in-flight advertising. Advertising revenue is recorded to Other operating revenue as miles are delivered to Chase. |
\u2022 | Other travel-related benefits \u2013 United's performance obligations are comprised of various items such as waived bag fees, seat upgrades and lounge passes. Lounge passes are recorded to Other operating revenue as customers use the lounge passes. Bag fees and seat upgrades are recorded to Passenger revenue at the time of the associated travel. |
Twelve Months Ended December 31, | |||||||
2019 | 2018 | ||||||
Total Frequent flyer deferred revenue - beginning balance | $ | 5,005 | $ | 4,783 | |||
Total miles awarded | 2,621 | 2,451 | |||||
Travel miles redeemed (Passenger revenue) | (2,213 | ) | (2,068 | ) | |||
Non-travel miles redeemed (Other operating revenue) | (137 | ) | (161 | ) | |||
Total Frequent flyer deferred revenue - ending balance | $ | 5,276 | $ | 5,005 |
(e) | Cash and Cash Equivalents and Restricted Cash\u2014Highly liquid investments with a maturity of three months or less on their acquisition date are classified as cash and cash equivalents. |
UAL | United | ||||||||||||||||||||||||
At December\u00a031, | At December\u00a031, | ||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,762 | $ | 1,694 | $ | 1,482 | $ | 2,756 | $ | 1,688 | $ | 1,476 | |||||||||||||
Restricted cash included in Prepaid expenses and other | \u2014 | \u2014 | 18 | \u2014 | \u2014 | 18 | |||||||||||||||||||
Other assets: | |||||||||||||||||||||||||
Restricted cash | 106 | 105 | 91 | 106 | 105 | 91 | |||||||||||||||||||
Total cash, cash equivalents and restricted cash shown in the statement of consolidated cash flows | $ | 2,868 | $ | 1,799 | $ | 1,591 | $ | 2,862 | $ | 1,793 | $ | 1,585 |
(f) | Investments\u2014Debt investments are classified as available-for-sale and are stated at fair value. Realized gains and losses on sales of these investments are reflected in Miscellaneous, net in the consolidated statements of operations.\u00a0Unrealized gains and losses on available-for-sale securities are reflected as a component of accumulated other comprehensive income (loss). Equity investments with readily determinable fair values are measured at fair value. Equity investments without readily determinable fair values are measured using the equity method, or measured at cost with adjustments for observable changes in price or impairments (referred to as the measurement alternative). Changes in fair value are recorded in Unrealized gains (losses) on investments, net in the consolidated statements of operations. |
(g) | Accounts Receivable\u2014Accounts receivable primarily consist of amounts due from credit card companies, non-airline partners, and cargo transportation customers. We provide an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical write-offs and other specific analyses. Bad debt expense and write-offs were not material for the year ended December 31, 2019 and 2018. |
(h) | Aircraft Fuel, Spare Parts and Supplies\u2014The Company accounts for aircraft fuel, spare parts and supplies at average cost and provides an obsolescence allowance for aircraft spare parts with an assumed residual value of 10% of original cost. |
(i) | Property and Equipment\u2014The Company records additions to owned operating property and equipment at cost when acquired. Property under finance leases and the related obligation for future lease payments are recorded at an amount equal to the initial present value of those lease payments. Modifications that enhance the operating performance or extend the useful lives of airframes or engines are capitalized as property and equipment. It is the Company's policy to record contractual damages received related to delays in delivery of aircraft as a reduction of the cost of the related aircraft. |
\u00a0 | Estimated\u00a0Useful\u00a0Life\u00a0(in\u00a0years) | |
Aircraft, spare engines and related rotable parts | 25\u00a0to\u00a030 | |
Aircraft seats | 10 to 15 | |
Buildings | 25 to 45 | |
Other property and equipment | 3 to 15 | |
Computer software | 5 to 15 | |
Building improvements | 1 to 40 |
(j) | Long-Lived Asset Impairments\u2014The Company evaluates the carrying value of long-lived assets subject to amortization whenever events or changes in circumstances indicate that an impairment may exist. For purposes of this testing, the Company has generally identified the aircraft fleet type as the lowest level of identifiable cash flows. An impairment charge is recognized when the asset's carrying value exceeds its net undiscounted future cash flows and its fair market value. The amount of the charge is the difference between the asset's carrying value and fair market value. See Note 14 of this report for additional information related to impairments. |
(k) | Intangibles\u2014The Company has finite-lived and indefinite-lived intangible assets, including goodwill. Finite-lived intangible assets are amortized over their estimated useful lives. Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment on an annual basis as of October\u00a01, or more frequently if events or circumstances indicate that the asset may be impaired. See Note 14 of this report for additional information related to impairments. |
2019 | 2018 | |||||||||||||||
Gross\u00a0 Carrying Amount | Accumulated Amortization | Gross\u00a0 Carrying Amount | Accumulated Amortization | |||||||||||||
Goodwill | $ | 4,523 | $ | 4,523 | ||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||
Route authorities | $ | 1,150 | $ | 1,240 | ||||||||||||
Airport slots | 546 | 546 | ||||||||||||||
Tradenames and logos | 593 | 593 | ||||||||||||||
Alliances | 404 | 404 | ||||||||||||||
Total | $ | 2,693 | $ | 2,783 | ||||||||||||
Finite-lived intangible assets | ||||||||||||||||
Frequent flyer database | $ | 1,177 | $ | 931 | $ | 1,177 | $ | 884 | ||||||||
Hubs | 145 | 104 | 145 | 97 | ||||||||||||
Contracts | 120 | 111 | 120 | 106 | ||||||||||||
Other | 314 | 294 | 314 | 293 | ||||||||||||
Total | $ | 1,756 | $ | 1,440 | $ | 1,756 | $ | 1,380 |
(l) | Labor Costs\u2014The Company records expenses associated with new or amendable labor agreements when the amounts are probable and estimable. These include costs associated with lump sum cash payments that would be made in conjunction with the ratification of labor agreements. To the extent these upfront costs are in lieu of future pay increases, they would be capitalized and amortized over the term of the labor agreements. If not, these amounts would be expensed. |
(m) | Share-Based Compensation\u2014The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The resulting cost is recognized over the period during which an employee is required to provide service in exchange for the award, usually the vesting period. Obligations for cash-settled restricted stock units (\"RSUs\") are remeasured at fair value throughout the requisite service period at the close of the reporting period based upon UAL's stock price. In addition to the service requirement, certain RSUs have performance metrics that must be achieved prior to vesting. These awards are accrued based on the expected level of achievement at each reporting period. An adjustment is recorded each reporting period to adjust compensation expense based on the then current level of expected performance achievement for the performance-based awards. See Note 4 of this report for additional information on UAL's share-based compensation plans. |
(n) | Maintenance and Repairs\u2014The cost of maintenance and repairs, including the cost of minor replacements, is charged to expense as incurred, except for costs incurred under our power-by-the-hour (\"PBTH\") engine maintenance agreements. PBTH contracts transfer certain risk to third-party service providers and fix the amount we pay per flight hour or per cycle to the service provider in exchange for maintenance and repairs under a predefined maintenance program. Under PBTH agreements, the Company recognizes expense at a level rate per engine hour, unless the level of service effort and the related payments during the period are substantially consistent, in which case the Company recognizes expense based on the amounts paid. |
(o) | Advertising\u2014Advertising costs, which are included in Other operating expenses, are expensed as incurred. Advertising expenses were $212 million, $211 million and $217 million for the years ended December\u00a031, 2019, 2018 and 2017, respectively. |
(p) | Third-Party Business\u2014The Company has third-party business revenue that includes fuel sales, catering, ground handling, maintenance services and frequent flyer award non-travel redemptions. Third-party business revenue is recorded in Other operating revenue. The Company also incurs third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-travel mileage redemptions. The third-party business expenses are recorded in Other operating expenses, except for non-travel mileage redemption. Non-travel mileage redemption expenses are recorded to Other operating revenue. |
(q) | Uncertain Income Tax Positions\u2014The Company has recorded reserves for income taxes and associated interest that may become payable in future years. Although management believes that its positions taken on income tax matters are reasonable, the Company nevertheless has established tax and interest reserves in recognition that various taxing authorities may challenge certain of the positions taken by the Company, potentially resulting in additional liabilities for taxes and interest. The Company's uncertain tax position reserves are reviewed periodically and are adjusted as events occur that affect its estimates, such as the availability of new information, the lapsing of applicable statutes of limitation, the conclusion of tax audits, the measurement of additional estimated liability, the identification of new tax matters, the release of administrative tax guidance affecting its estimates of tax liabilities, or the rendering of relevant court decisions. The Company records penalties and interest relating to uncertain tax positions as part of income tax expense in its consolidated statements of operations. See Note 6 of this report for additional information on UAL's uncertain tax positions. |
(r) | Recently Issued Accounting Standards\u2014The Company adopted Financial Accounting Standards Board (\"FASB\") Accounting Standards Codification Topic 842, Leases (the \"New Lease Standard\"), effective January 1, 2019. The Company used the modified retrospective approach for all leases existing at or commencing after January 1, 2017 and elected the package of transition practical expedients for expired or existing contracts, which does not require reassessment of: (1) whether any of our contracts are or contain leases, (2) lease classification and (3) initial direct costs. The New Lease Standard prescribes that an entity should recognize a right-of-use asset and a lease liability for all leases at the commencement date of each lease and recognize expenses on their income statements similar to the prior FASB Accounting Standards Codification Topic 840, Leases (\"Topic 840\"). |
\u00a0 | As Reported | New Lease Standard Adjustments | As Adjusted | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Regional capacity purchase | $ | 2,601 | $ | 2,232 | $ | 48 | $ | 36 | $ | 2,649 | $ | 2,268 | |||||||||||
Landing fees and other rent | 2,359 | 2,240 | 90 | 70 | 2,449 | 2,310 | |||||||||||||||||
Depreciation and amortization | 2,240 | 2,149 | (75 | ) | (53 | ) | 2,165 | 2,096 | |||||||||||||||
Interest expense | (729 | ) | (671 | ) | 59 | 45 | (670 | ) | (626 | ) | |||||||||||||
Interest capitalized | 70 | 84 | (5 | ) | (10 | ) | 65 | 74 | |||||||||||||||
Income tax expense | 529 | 896 | (3 | ) | (16 | ) | 526 | 880 | |||||||||||||||
Net income | 2,129 | 2,144 | (7 | ) | (1 | ) | 2,122 | 2,143 | |||||||||||||||
Earnings per share, basic | 7.73 | 7.08 | (0.03 | ) | \u2014 | 7.70 | 7.08 | ||||||||||||||||
Earnings per share, diluted | 7.70 | 7.06 | (0.03 | ) | \u2014 | 7.67 | 7.06 |
December 31, 2018 | ||||||||||||
As Reported | New Lease Standard Adjustments | As Adjusted | ||||||||||
Receivables, less allowance for doubtful accounts | $ | 1,346 | $ | 80 | $ | 1,426 | ||||||
Prepaid expenses and other | 913 | (180 | ) | 733 | ||||||||
Flight equipment, owned and finance leases (a) | 32,636 | (37 | ) | 32,599 | ||||||||
Other property and equipment, owned and finance leases (a) | 7,930 | (1,041 | ) | 6,889 | ||||||||
Accumulated depreciation and amortization, owned and finance leases (a) | (13,414 | ) | 148 | (13,266 | ) | |||||||
Operating lease right-of-use assets | \u2014 | 5,262 | 5,262 | |||||||||
Current maturities of finance leases (a) | 149 | (26 | ) | 123 | ||||||||
Current maturities of operating leases | \u2014 | 719 | 719 | |||||||||
Other current liabilities | 619 | (66 | ) | 553 | ||||||||
Long-term obligations under finance leases (a) | 1,134 | (910 | ) | 224 | ||||||||
Long-term obligations under operating leases | \u2014 | 5,276 | 5,276 | |||||||||
Deferred income taxes | 814 | 14 | 828 | |||||||||
Other long-term liabilities | 1,832 | (822 | ) | 1,010 | ||||||||
Retained earnings | 6,668 | 47 | 6,715 |
\u00a0 | As Reported | New Lease Standard Adjustments | As Adjusted | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 6,181 | $ | 3,413 | $ | (17 | ) | $ | 61 | $ | 6,164 | $ | 3,474 | ||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||
Capital expenditures | (4,177 | ) | (3,998 | ) | 107 | 128 | (4,070 | ) | (3,870 | ) | |||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||
Proceeds from issuance of long-term debt | 1,740 | 2,765 | (146 | ) | (228 | ) | 1,594 | 2,537 | |||||||||||||||
Principal payments under finance leases | (134 | ) | (124 | ) | 55 | 40 | (79 | ) | (84 | ) |
Revenue by Geography. The Company further disaggregates revenue by geographic regions. |
2019 | 2018 | 2017 | ||||||||||
Domestic (U.S. and Canada) | $ | 26,960 | $ | 25,552 | $ | 23,114 | ||||||
Atlantic | 7,387 | 7,103 | 6,340 | |||||||||
Pacific | 5,132 | 5,188 | 4,914 | |||||||||
Latin America | 3,780 | 3,460 | 3,416 | |||||||||
Total | $ | 43,259 | $ | 41,303 | $ | 37,784 |
\u2022 | MileagePlus miles awarded \u2013 United has a performance obligation to provide MileagePlus cardholders with miles to be used for air travel and non-travel award redemptions. The Company records Passenger revenue related to the travel awards when the transportation is provided and records Other revenue related to the non-travel awards when the goods or services are delivered. The Company records the cost associated with non-travel awards in Other operating revenue. |
\u2022 | Marketing \u2013 United has a performance obligation to provide Chase access to United's customer list and the use of United's brand. Marketing revenue is recorded to Other operating revenue as miles are delivered to Chase. |
\u2022 | Advertising \u2013 United has a performance obligation to provide advertising in support of the MileagePlus card in various customer contact points such as United's website, email promotions, direct mail campaigns, airport advertising and in-flight advertising. Advertising revenue is recorded to Other operating revenue as miles are delivered to Chase. |
\u2022 | Other travel-related benefits \u2013 United's performance obligations are comprised of various items such as waived bag fees, seat upgrades and lounge passes. Lounge passes are recorded to Other operating revenue as customers use the lounge passes. Bag fees and seat upgrades are recorded to Passenger revenue at the time of the associated travel. |
Twelve Months Ended December 31, | |||||||
2019 | 2018 | ||||||
Total Frequent flyer deferred revenue - beginning balance | $ | 5,005 | $ | 4,783 | |||
Total miles awarded | 2,621 | 2,451 | |||||
Travel miles redeemed (Passenger revenue) | (2,213 | ) | (2,068 | ) | |||
Non-travel miles redeemed (Other operating revenue) | (137 | ) | (161 | ) | |||
Total Frequent flyer deferred revenue - ending balance | $ | 5,276 | $ | 5,005 |
UAL | United | ||||||||||||||||||||||||
At December\u00a031, | At December\u00a031, | ||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,762 | $ | 1,694 | $ | 1,482 | $ | 2,756 | $ | 1,688 | $ | 1,476 | |||||||||||||
Restricted cash included in Prepaid expenses and other | \u2014 | \u2014 | 18 | \u2014 | \u2014 | 18 | |||||||||||||||||||
Other assets: | |||||||||||||||||||||||||
Restricted cash | 106 | 105 | 91 | 106 | 105 | 91 | |||||||||||||||||||
Total cash, cash equivalents and restricted cash shown in the statement of consolidated cash flows | $ | 2,868 | $ | 1,799 | $ | 1,591 | $ | 2,862 | $ | 1,793 | $ | 1,585 |
UAL | United | ||||||||||||||||||||||||
At December\u00a031, | At December\u00a031, | ||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,762 | $ | 1,694 | $ | 1,482 | $ | 2,756 | $ | 1,688 | $ | 1,476 | |||||||||||||
Restricted cash included in Prepaid expenses and other | \u2014 | \u2014 | 18 | \u2014 | \u2014 | 18 | |||||||||||||||||||
Other assets: | |||||||||||||||||||||||||
Restricted cash | 106 | 105 | 91 | 106 | 105 | 91 | |||||||||||||||||||
Total cash, cash equivalents and restricted cash shown in the statement of consolidated cash flows | $ | 2,868 | $ | 1,799 | $ | 1,591 | $ | 2,862 | $ | 1,793 | $ | 1,585 |
\u00a0 | Estimated\u00a0Useful\u00a0Life\u00a0(in\u00a0years) | |
Aircraft, spare engines and related rotable parts | 25\u00a0to\u00a030 | |
Aircraft seats | 10 to 15 | |
Buildings | 25 to 45 | |
Other property and equipment | 3 to 15 | |
Computer software | 5 to 15 | |
Building improvements | 1 to 40 |
2019 | 2018 | |||||||||||||||
Gross\u00a0 Carrying Amount | Accumulated Amortization | Gross\u00a0 Carrying Amount | Accumulated Amortization | |||||||||||||
Goodwill | $ | 4,523 | $ | 4,523 | ||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||
Route authorities | $ | 1,150 | $ | 1,240 | ||||||||||||
Airport slots | 546 | 546 | ||||||||||||||
Tradenames and logos | 593 | 593 | ||||||||||||||
Alliances | 404 | 404 | ||||||||||||||
Total | $ | 2,693 | $ | 2,783 | ||||||||||||
Finite-lived intangible assets | ||||||||||||||||
Frequent flyer database | $ | 1,177 | $ | 931 | $ | 1,177 | $ | 884 | ||||||||
Hubs | 145 | 104 | 145 | 97 | ||||||||||||
Contracts | 120 | 111 | 120 | 106 | ||||||||||||
Other | 314 | 294 | 314 | 293 | ||||||||||||
Total | $ | 1,756 | $ | 1,440 | $ | 1,756 | $ | 1,380 |
\u00a0 | As Reported | New Lease Standard Adjustments | As Adjusted | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Regional capacity purchase | $ | 2,601 | $ | 2,232 | $ | 48 | $ | 36 | $ | 2,649 | $ | 2,268 | |||||||||||
Landing fees and other rent | 2,359 | 2,240 | 90 | 70 | 2,449 | 2,310 | |||||||||||||||||
Depreciation and amortization | 2,240 | 2,149 | (75 | ) | (53 | ) | 2,165 | 2,096 | |||||||||||||||
Interest expense | (729 | ) | (671 | ) | 59 | 45 | (670 | ) | (626 | ) | |||||||||||||
Interest capitalized | 70 | 84 | (5 | ) | (10 | ) | 65 | 74 | |||||||||||||||
Income tax expense | 529 | 896 | (3 | ) | (16 | ) | 526 | 880 | |||||||||||||||
Net income | 2,129 | 2,144 | (7 | ) | (1 | ) | 2,122 | 2,143 | |||||||||||||||
Earnings per share, basic | 7.73 | 7.08 | (0.03 | ) | \u2014 | 7.70 | 7.08 | ||||||||||||||||
Earnings per share, diluted | 7.70 | 7.06 | (0.03 | ) | \u2014 | 7.67 | 7.06 |
December 31, 2018 | ||||||||||||
As Reported | New Lease Standard Adjustments | As Adjusted | ||||||||||
Receivables, less allowance for doubtful accounts | $ | 1,346 | $ | 80 | $ | 1,426 | ||||||
Prepaid expenses and other | 913 | (180 | ) | 733 | ||||||||
Flight equipment, owned and finance leases (a) | 32,636 | (37 | ) | 32,599 | ||||||||
Other property and equipment, owned and finance leases (a) | 7,930 | (1,041 | ) | 6,889 | ||||||||
Accumulated depreciation and amortization, owned and finance leases (a) | (13,414 | ) | 148 | (13,266 | ) | |||||||
Operating lease right-of-use assets | \u2014 | 5,262 | 5,262 | |||||||||
Current maturities of finance leases (a) | 149 | (26 | ) | 123 | ||||||||
Current maturities of operating leases | \u2014 | 719 | 719 | |||||||||
Other current liabilities | 619 | (66 | ) | 553 | ||||||||
Long-term obligations under finance leases (a) | 1,134 | (910 | ) | 224 | ||||||||
Long-term obligations under operating leases | \u2014 | 5,276 | 5,276 | |||||||||
Deferred income taxes | 814 | 14 | 828 | |||||||||
Other long-term liabilities | 1,832 | (822 | ) | 1,010 | ||||||||
Retained earnings | 6,668 | 47 | 6,715 |
\u00a0 | As Reported | New Lease Standard Adjustments | As Adjusted | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 6,181 | $ | 3,413 | $ | (17 | ) | $ | 61 | $ | 6,164 | $ | 3,474 | ||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||
Capital expenditures | (4,177 | ) | (3,998 | ) | 107 | 128 | (4,070 | ) | (3,870 | ) | |||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||
Proceeds from issuance of long-term debt | 1,740 | 2,765 | (146 | ) | (228 | ) | 1,594 | 2,537 | |||||||||||||||
Principal payments under finance leases | (134 | ) | (124 | ) | 55 | 40 | (79 | ) | (84 | ) |
\u00a0 | As Reported | New Lease Standard Adjustments | As Adjusted | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Regional capacity purchase | $ | 2,601 | $ | 2,232 | $ | 48 | $ | 36 | $ | 2,649 | $ | 2,268 | |||||||||||
Landing fees and other rent | 2,359 | 2,240 | 90 | 70 | 2,449 | 2,310 | |||||||||||||||||
Depreciation and amortization | 2,240 | 2,149 | (75 | ) | (53 | ) | 2,165 | 2,096 | |||||||||||||||
Interest expense | (729 | ) | (671 | ) | 59 | 45 | (670 | ) | (626 | ) | |||||||||||||
Interest capitalized | 70 | 84 | (5 | ) | (10 | ) | 65 | 74 | |||||||||||||||
Income tax expense | 529 | 896 | (3 | ) | (16 | ) | 526 | 880 | |||||||||||||||
Net income | 2,129 | 2,144 | (7 | ) | (1 | ) | 2,122 | 2,143 | |||||||||||||||
Earnings per share, basic | 7.73 | 7.08 | (0.03 | ) | \u2014 | 7.70 | 7.08 | ||||||||||||||||
Earnings per share, diluted | 7.70 | 7.06 | (0.03 | ) | \u2014 | 7.67 | 7.06 |
December 31, 2018 | ||||||||||||
As Reported | New Lease Standard Adjustments | As Adjusted | ||||||||||
Receivables, less allowance for doubtful accounts | $ | 1,346 | $ | 80 | $ | 1,426 | ||||||
Prepaid expenses and other | 913 | (180 | ) | 733 | ||||||||
Flight equipment, owned and finance leases (a) | 32,636 | (37 | ) | 32,599 | ||||||||
Other property and equipment, owned and finance leases (a) | 7,930 | (1,041 | ) | 6,889 | ||||||||
Accumulated depreciation and amortization, owned and finance leases (a) | (13,414 | ) | 148 | (13,266 | ) | |||||||
Operating lease right-of-use assets | \u2014 | 5,262 | 5,262 | |||||||||
Current maturities of finance leases (a) | 149 | (26 | ) | 123 | ||||||||
Current maturities of operating leases | \u2014 | 719 | 719 | |||||||||
Other current liabilities | 619 | (66 | ) | 553 | ||||||||
Long-term obligations under finance leases (a) | 1,134 | (910 | ) | 224 | ||||||||
Long-term obligations under operating leases | \u2014 | 5,276 | 5,276 | |||||||||
Deferred income taxes | 814 | 14 | 828 | |||||||||
Other long-term liabilities | 1,832 | (822 | ) | 1,010 | ||||||||
Retained earnings | 6,668 | 47 | 6,715 |
\u00a0 | As Reported | New Lease Standard Adjustments | As Adjusted | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 6,181 | $ | 3,413 | $ | (17 | ) | $ | 61 | $ | 6,164 | $ | 3,474 | ||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||
Capital expenditures | (4,177 | ) | (3,998 | ) | 107 | 128 | (4,070 | ) | (3,870 | ) | |||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||
Proceeds from issuance of long-term debt | 1,740 | 2,765 | (146 | ) | (228 | ) | 1,594 | 2,537 | |||||||||||||||
Principal payments under finance leases | (134 | ) | (124 | ) | 55 | 40 | (79 | ) | (84 | ) |
2019 | 2018 (a) | 2017 (a) | ||||||||||
Earnings available to common stockholders | $ | 3,009 | $ | 2,122 | $ | 2,143 | ||||||
Basic weighted-average shares outstanding | 258.8 | 275.5 | 302.7 | |||||||||
Effect of employee stock awards | 1.1 | 1.2 | 0.9 | |||||||||
Diluted weighted-average shares outstanding | 259.9 | 276.7 | 303.6 | |||||||||
Earnings per share, basic | $ | 11.63 | $ | 7.70 | $ | 7.08 | ||||||
Earnings per share, diluted | $ | 11.58 | $ | 7.67 | $ | 7.06 |
2019 | 2018 (a) | 2017 (a) | ||||||||||
Earnings available to common stockholders | $ | 3,009 | $ | 2,122 | $ | 2,143 | ||||||
Basic weighted-average shares outstanding | 258.8 | 275.5 | 302.7 | |||||||||
Effect of employee stock awards | 1.1 | 1.2 | 0.9 | |||||||||
Diluted weighted-average shares outstanding | 259.9 | 276.7 | 303.6 | |||||||||
Earnings per share, basic | $ | 11.63 | $ | 7.70 | $ | 7.08 | ||||||
Earnings per share, diluted | $ | 11.58 | $ | 7.67 | $ | 7.06 |
2019 | 2018 | 2017 | ||||||||||
Compensation cost: | ||||||||||||
RSUs | $ | 98 | $ | 98 | $ | 63 | ||||||
Restricted stock | 1 | 2 | 8 | |||||||||
Stock options | 1 | 1 | 2 | |||||||||
Total | $ | 100 | $ | 101 | $ | 73 |
Unearned Compensation | Weighted-Average Remaining Period (in years) | |||||
RSUs | $ | 66 | 2.0 | |||
Stock options | 11 | 5.3 | ||||
Total | $ | 77 |
Liability Awards | Equity Awards | ||||||||||||||||
RSUs | RSUs | Weighted- Average Grant Price | Restricted\u00a0 Stock | Weighted- Average Grant Price | |||||||||||||
Outstanding at December 31, 2016 | 2.1 | 0.8 | $ | 51.67 | 0.5 | $ | 52.00 | ||||||||||
Granted | 0.6 | 1.0 | 71.68 | \u2014 | \u2014 | ||||||||||||
Vested | (0.7 | ) | (0.3 | ) | 51.81 | (0.2 | ) | 51.60 | |||||||||
Forfeited | (0.2 | ) | (0.1 | ) | 57.49 | \u2014 | \u2014 | ||||||||||
Outstanding at December 31, 2017 | 1.8 | 1.4 | 63.99 | 0.3 | 52.30 | ||||||||||||
Granted | 0.7 | 1.1 | 67.74 | \u2014 | \u2014 | ||||||||||||
Vested | (0.5 | ) | (0.5 | ) | 63.02 | (0.2 | ) | 53.24 | |||||||||
Forfeited | (0.1 | ) | (0.2 | ) | 67.34 | \u2014 | \u2014 | ||||||||||
Outstanding at December 31, 2018 | 1.9 | 1.8 | 66.29 | 0.1 | 51.17 | ||||||||||||
Granted | 0.1 | 1.1 | 86.72 | \u2014 | \u2014 | ||||||||||||
Vested | (0.5 | ) | (0.8 | ) | 64.85 | (0.1 | ) | 51.17 | |||||||||
Forfeited | (0.9 | ) | (0.1 | ) | 76.48 | \u2014 | \u2014 | ||||||||||
Outstanding at December 31, 2019 | 0.6 | 2.0 | 78.03 | \u2014 | \u2014 |
2019 | 2018 | 2017 | ||||||||||
Compensation cost: | ||||||||||||
RSUs | $ | 98 | $ | 98 | $ | 63 | ||||||
Restricted stock | 1 | 2 | 8 | |||||||||
Stock options | 1 | 1 | 2 | |||||||||
Total | $ | 100 | $ | 101 | $ | 73 |
Unearned Compensation | Weighted-Average Remaining Period (in years) | |||||
RSUs | $ | 66 | 2.0 | |||
Stock options | 11 | 5.3 | ||||
Total | $ | 77 |
Liability Awards | Equity Awards | ||||||||||||||||
RSUs | RSUs | Weighted- Average Grant Price | Restricted\u00a0 Stock | Weighted- Average Grant Price | |||||||||||||
Outstanding at December 31, 2016 | 2.1 | 0.8 | $ | 51.67 | 0.5 | $ | 52.00 | ||||||||||
Granted | 0.6 | 1.0 | 71.68 | \u2014 | \u2014 | ||||||||||||
Vested | (0.7 | ) | (0.3 | ) | 51.81 | (0.2 | ) | 51.60 | |||||||||
Forfeited | (0.2 | ) | (0.1 | ) | 57.49 | \u2014 | \u2014 | ||||||||||
Outstanding at December 31, 2017 | 1.8 | 1.4 | 63.99 | 0.3 | 52.30 | ||||||||||||
Granted | 0.7 | 1.1 | 67.74 | \u2014 | \u2014 | ||||||||||||
Vested | (0.5 | ) | (0.5 | ) | 63.02 | (0.2 | ) | 53.24 | |||||||||
Forfeited | (0.1 | ) | (0.2 | ) | 67.34 | \u2014 | \u2014 | ||||||||||
Outstanding at December 31, 2018 | 1.9 | 1.8 | 66.29 | 0.1 | 51.17 | ||||||||||||
Granted | 0.1 | 1.1 | 86.72 | \u2014 | \u2014 | ||||||||||||
Vested | (0.5 | ) | (0.8 | ) | 64.85 | (0.1 | ) | 51.17 | |||||||||
Forfeited | (0.9 | ) | (0.1 | ) | 76.48 | \u2014 | \u2014 | ||||||||||
Outstanding at December 31, 2019 | 0.6 | 2.0 | 78.03 | \u2014 | \u2014 |
Pension and Other Postretirement Liabilities | Investments and Other | Deferred Taxes | \u00a0 \u00a0 Total | |||||||||||||
Balance at December 31, 2016 | $ | (854 | ) | $ | (1 | ) | $ | 26 | $ | (829 | ) | |||||
Change in value | (306 | ) | (a) | (7 | ) | 74 | (239 | ) | ||||||||
Amounts reclassified to earnings | 58 | 2 | (21 | ) | 39 | |||||||||||
Reclassification of stranded tax effects | \u2014 | \u2014 | (118 | ) | (b) | (118 | ) | |||||||||
Balance at December 31, 2017 | (1,102 | ) | (6 | ) | (39 | ) | (1,147 | ) | ||||||||
Change in value | 377 | (a) | (5 | ) | (83 | ) | 289 | |||||||||
Amounts reclassified to earnings | 62 | \u2014 | (13 | ) | 49 | |||||||||||
Amounts reclassified to retained earnings (\"RE\") | \u2014 | 7 | (c) | (1 | ) | (c) | 6 | |||||||||
Balance at December 31, 2018 | (663 | ) | (4 | ) | (136 | ) | (803 | ) | ||||||||
Change in value | 105 | (a) | 7 | (24 | ) | 88 | ||||||||||
Amounts reclassified to earnings | (2 | ) | (1 | ) | \u2014 | (3 | ) | |||||||||
Balance at December 31, 2019 | $ | (560 | ) | $ | 2 | $ | (160 | ) | $ | (718 | ) |
Pension and Other Postretirement Liabilities | Investments and Other | Deferred Taxes | \u00a0 \u00a0 Total | |||||||||||||
Balance at December 31, 2016 | $ | (854 | ) | $ | (1 | ) | $ | 26 | $ | (829 | ) | |||||
Change in value | (306 | ) | (a) | (7 | ) | 74 | (239 | ) | ||||||||
Amounts reclassified to earnings | 58 | 2 | (21 | ) | 39 | |||||||||||
Reclassification of stranded tax effects | \u2014 | \u2014 | (118 | ) | (b) | (118 | ) | |||||||||
Balance at December 31, 2017 | (1,102 | ) | (6 | ) | (39 | ) | (1,147 | ) | ||||||||
Change in value | 377 | (a) | (5 | ) | (83 | ) | 289 | |||||||||
Amounts reclassified to earnings | 62 | \u2014 | (13 | ) | 49 | |||||||||||
Amounts reclassified to retained earnings (\"RE\") | \u2014 | 7 | (c) | (1 | ) | (c) | 6 | |||||||||
Balance at December 31, 2018 | (663 | ) | (4 | ) | (136 | ) | (803 | ) | ||||||||
Change in value | 105 | (a) | 7 | (24 | ) | 88 | ||||||||||
Amounts reclassified to earnings | (2 | ) | (1 | ) | \u2014 | (3 | ) | |||||||||
Balance at December 31, 2019 | $ | (560 | ) | $ | 2 | $ | (160 | ) | $ | (718 | ) |
UAL | 2019 | 2018 (a) | 2017 (a) | |||||||||
Income tax provision at statutory rate | $ | 822 | $ | 556 | $ | 1,058 | ||||||
State income taxes, net of federal income tax benefit | 50 | 29 | 30 | |||||||||
Foreign tax rate differential | (90 | ) | (84 | ) | (43 | ) | ||||||
Global intangible low-taxed income | 90 | 4 | \u2014 | |||||||||
Foreign income taxes | 1 | 2 | 3 | |||||||||
Nondeductible employee meals | 12 | 12 | 17 | |||||||||
Impact of Tax Act | \u2014 | (5 | ) | (189 | ) | |||||||
State rate change | \u2014 | 3 | 12 | |||||||||
Valuation allowance | (4 | ) | (3 | ) | (16 | ) | ||||||
Other, net | 24 | 12 | 8 | |||||||||
$ | 905 | $ | 526 | $ | 880 | |||||||
Current | $ | 23 | $ | 14 | $ | (77 | ) | |||||
Deferred | 882 | 512 | 957 | |||||||||
$ | 905 | $ | 526 | $ | 880 | |||||||
United | 2019 | 2018 (a) | 2017 (a) | |||||||||
Income tax provision at statutory rate | $ | 822 | $ | 557 | $ | 1,059 | ||||||
State income taxes, net of federal income tax | 50 | 29 | 30 | |||||||||
Foreign tax rate differential | (90 | ) | (84 | ) | (43 | ) | ||||||
Global intangible low-taxed income | 90 | 4 | \u2014 | |||||||||
Foreign income taxes | 1 | 2 | 3 | |||||||||
Nondeductible employee meals | 12 | 12 | 17 | |||||||||
Impact of Tax Act | \u2014 | (5 | ) | (206 | ) | |||||||
State rate change | \u2014 | 3 | 12 | |||||||||
Valuation allowance | (4 | ) | (3 | ) | (16 | ) | ||||||
Other, net | 24 | 12 | 8 | |||||||||
$ | 905 | $ | 527 | $ | 864 | |||||||
Current | $ | 23 | $ | 14 | $ | (77 | ) | |||||
Deferred | 882 | 513 | 941 | |||||||||
$ | 905 | $ | 527 | $ | 864 |
\u00a0 | UAL | United | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Deferred income tax asset (liability): | ||||||||||||||||
Federal and state net operating loss (\"NOL\") carryforwards | $ | 695 | $ | 398 | $ | 668 | $ | 371 | ||||||||
Deferred revenue | 1,287 | 1,232 | 1,287 | 1,232 | ||||||||||||
Employee benefits, including pension, postretirement and medical | 715 | 885 | 715 | 885 | ||||||||||||
Operating lease liabilities | 1,256 | 1,338 | 1,256 | 1,338 | ||||||||||||
Other | 165 | 229 | 165 | 229 | ||||||||||||
Less: Valuation allowance | (58 | ) | (59 | ) | (58 | ) | (59 | ) | ||||||||
Total deferred tax assets | $ | 4,060 | $ | 4,023 | $ | 4,033 | $ | 3,996 | ||||||||
Depreciation | $ | (4,011 | ) | $ | (2,929 | ) | $ | (4,011 | ) | $ | (2,929 | ) | ||||
Operating lease right-of-use asset | (1,061 | ) | (1,173 | ) | (1,061 | ) | (1,173 | ) | ||||||||
Intangibles | (724 | ) | (749 | ) | (724 | ) | (749 | ) | ||||||||
Total deferred tax liabilities | $ | (5,796 | ) | $ | (4,851 | ) | $ | (5,796 | ) | $ | (4,851 | ) | ||||
Net deferred tax liability | $ | (1,736 | ) | $ | (828 | ) | $ | (1,763 | ) | $ | (855 | ) |
UAL | 2019 | 2018 (a) | 2017 (a) | |||||||||
Income tax provision at statutory rate | $ | 822 | $ | 556 | $ | 1,058 | ||||||
State income taxes, net of federal income tax benefit | 50 | 29 | 30 | |||||||||
Foreign tax rate differential | (90 | ) | (84 | ) | (43 | ) | ||||||
Global intangible low-taxed income | 90 | 4 | \u2014 | |||||||||
Foreign income taxes | 1 | 2 | 3 | |||||||||
Nondeductible employee meals | 12 | 12 | 17 | |||||||||
Impact of Tax Act | \u2014 | (5 | ) | (189 | ) | |||||||
State rate change | \u2014 | 3 | 12 | |||||||||
Valuation allowance | (4 | ) | (3 | ) | (16 | ) | ||||||
Other, net | 24 | 12 | 8 | |||||||||
$ | 905 | $ | 526 | $ | 880 | |||||||
Current | $ | 23 | $ | 14 | $ | (77 | ) | |||||
Deferred | 882 | 512 | 957 | |||||||||
$ | 905 | $ | 526 | $ | 880 | |||||||
United | 2019 | 2018 (a) | 2017 (a) | |||||||||
Income tax provision at statutory rate | $ | 822 | $ | 557 | $ | 1,059 | ||||||
State income taxes, net of federal income tax | 50 | 29 | 30 | |||||||||
Foreign tax rate differential | (90 | ) | (84 | ) | (43 | ) | ||||||
Global intangible low-taxed income | 90 | 4 | \u2014 | |||||||||
Foreign income taxes | 1 | 2 | 3 | |||||||||
Nondeductible employee meals | 12 | 12 | 17 | |||||||||
Impact of Tax Act | \u2014 | (5 | ) | (206 | ) | |||||||
State rate change | \u2014 | 3 | 12 | |||||||||
Valuation allowance | (4 | ) | (3 | ) | (16 | ) | ||||||
Other, net | 24 | 12 | 8 | |||||||||
$ | 905 | $ | 527 | $ | 864 | |||||||
Current | $ | 23 | $ | 14 | $ | (77 | ) | |||||
Deferred | 882 | 513 | 941 | |||||||||
$ | 905 | $ | 527 | $ | 864 |
\u00a0 | UAL | United | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Deferred income tax asset (liability): | ||||||||||||||||
Federal and state net operating loss (\"NOL\") carryforwards | $ | 695 | $ | 398 | $ | 668 | $ | 371 | ||||||||
Deferred revenue | 1,287 | 1,232 | 1,287 | 1,232 | ||||||||||||
Employee benefits, including pension, postretirement and medical | 715 | 885 | 715 | 885 | ||||||||||||
Operating lease liabilities | 1,256 | 1,338 | 1,256 | 1,338 | ||||||||||||
Other | 165 | 229 | 165 | 229 | ||||||||||||
Less: Valuation allowance | (58 | ) | (59 | ) | (58 | ) | (59 | ) | ||||||||
Total deferred tax assets | $ | 4,060 | $ | 4,023 | $ | 4,033 | $ | 3,996 | ||||||||
Depreciation | $ | (4,011 | ) | $ | (2,929 | ) | $ | (4,011 | ) | $ | (2,929 | ) | ||||
Operating lease right-of-use asset | (1,061 | ) | (1,173 | ) | (1,061 | ) | (1,173 | ) | ||||||||
Intangibles | (724 | ) | (749 | ) | (724 | ) | (749 | ) | ||||||||
Total deferred tax liabilities | $ | (5,796 | ) | $ | (4,851 | ) | $ | (5,796 | ) | $ | (4,851 | ) | ||||
Net deferred tax liability | $ | (1,736 | ) | $ | (828 | ) | $ | (1,763 | ) | $ | (855 | ) |
Pension\u00a0Benefits | |||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||
Accumulated benefit obligation: | $ | 5,333 | $ | 4,448 | |||
Change in projected benefit obligation: | |||||||
Projected benefit obligation at beginning of year | $ | 5,396 | $ | 5,852 | |||
Service cost | 184 | 228 | |||||
Interest cost | 226 | 217 | |||||
Actuarial (gain) loss | 784 | (601 | ) | ||||
Gross benefits paid and settlements | (200 | ) | (292 | ) | |||
Other | 8 | (8 | ) | ||||
Projected benefit obligation at end of year | $ | 6,398 | $ | 5,396 | |||
Change in plan assets: | |||||||
Fair value of plan assets at beginning of year | $ | 3,827 | $ | 3,932 | |||
Actual (loss) return on plan assets | 684 | (215 | ) | ||||
Employer contributions | 649 | 413 | |||||
Gross benefits paid and settlements | (200 | ) | (292 | ) | |||
Other | 4 | (11 | ) | ||||
Fair value of plan assets at end of year | $ | 4,964 | $ | 3,827 | |||
Funded status\u2014Net amount recognized | $ | (1,434 | ) | $ | (1,569 | ) |
Pension\u00a0Benefits | |||||||
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||
Noncurrent asset | $ | 14 | $ | 13 | |||
Current liability | (2 | ) | (6 | ) | |||
Noncurrent liability | (1,446 | ) | (1,576 | ) | |||
Total liability | $ | (1,434 | ) | $ | (1,569 | ) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||||||
Net actuarial loss | $ | (1,652 | ) | $ | (1,382 | ) | |
Prior service cost | (4 | ) | (5 | ) | |||
Total accumulated other comprehensive loss | $ | (1,656 | ) | $ | (1,387 | ) | |
Other Postretirement Benefits | |||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||
Change in benefit obligation: | |||||||
Benefit obligation at beginning of year | $ | 1,391 | $ | 1,710 | |||
Service cost | 10 | 12 | |||||
Interest cost | 47 | 61 | |||||
Plan participants' contributions | 67 | 68 | |||||
Benefits paid | (180 | ) | (181 | ) | |||
Actuarial loss (gain) | 99 | (285 | ) | ||||
Plan amendments | (597 | ) | \u2014 | ||||
Other | 5 | 6 | |||||
Benefit obligation at end of year | $ | 842 | $ | 1,391 | |||
Change in plan assets: | |||||||
Fair value of plan assets at beginning of year | $ | 53 | $ | 54 | |||
Actual return on plan assets | 1 | 1 | |||||
Employer contributions | 111 | 111 | |||||
Plan participants' contributions | 67 | 68 | |||||
Benefits paid | (180 | ) | (181 | ) | |||
Fair value of plan assets at end of year | 52 | 53 | |||||
Funded status\u2014Net amount recognized | $ | (790 | ) | $ | (1,338 | ) |
Other Postretirement Benefits | |||||||
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||
Current liability | $ | (1 | ) | $ | (43 | ) | |
Noncurrent liability | (789 | ) | (1,295 | ) | |||
Total liability | $ | (790 | ) | $ | (1,338 | ) | |
Amounts recognized in accumulated other comprehensive income consist of: | |||||||
Net actuarial gain | $ | 403 | $ | 554 | |||
Prior service credit | 693 | 170 | |||||
Total accumulated other comprehensive income | $ | 1,096 | $ | 724 |
2019 | 2018 | ||||||
Projected benefit obligation | $ | 6,161 | $ | 5,196 | |||
Accumulated benefit obligation | 5,137 | 4,286 | |||||
Fair value of plan assets | 4,714 | 3,614 |
2019 | 2018 | 2017 | |||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||
Service cost | $ | 184 | $ | 10 | $ | 228 | $ | 12 | $ | 195 | $ | 13 | |||||||||||
Interest cost | 226 | 47 | 217 | 61 | 220 | 66 | |||||||||||||||||
Expected return on plan assets | (291 | ) | (1 | ) | (292 | ) | (2 | ) | (243 | ) | (2 | ) | |||||||||||
Amortization of unrecognized actuarial (gain) loss | 118 | (52 | ) | 130 | (32 | ) | 128 | (33 | ) | ||||||||||||||
Amortization of prior service credits | \u2014 | (73 | ) | \u2014 | (37 | ) | \u2014 | (37 | ) | ||||||||||||||
Other | 5 | \u2014 | 1 | \u2014 | 5 | \u2014 | |||||||||||||||||
Net periodic benefit cost (credit) | $ | 242 | $ | (69 | ) | $ | 284 | $ | 2 | $ | 305 | $ | 7 |
Pension Benefits | ||||||
Assumptions used to determine benefit obligations | 2019 | 2018 | ||||
Discount rate | 3.52 | % | 4.20 | % | ||
Rate of compensation increase | 3.89 | % | 3.89 | % | ||
Assumptions used to determine net expense | ||||||
Discount rate | 4.21 | % | 3.65 | % | ||
Expected return on plan assets | 7.40 | % | 7.31 | % | ||
Rate of compensation increase | 3.89 | % | 3.89 | % |
Other Postretirement Benefits | ||||||
Assumptions used to determine benefit obligations | 2019 | 2018 | ||||
Discount rate | 3.35 | % | 4.30 | % | ||
Assumptions used to determine net expense | ||||||
Discount rate | 4.30 | % | 3.63 | % | ||
Expected return on plan assets | 3.00 | % | 3.00 | % | ||
Health care cost trend rate assumed for next year | 6.00 | % | 6.00 | % | ||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate in 2033) | 5.00 | % | 5.00 | % |
\u00a0 | \u00a0Percent of Total | Expected Long-Term Rate of Return | |||
Equity securities | 30-45 | % | 10 | % | |
Fixed-income securities | 35-50 | \u00a0 | 5 | \u00a0 | |
Alternatives | 15-25 | \u00a0 | 7 | \u00a0 |
Level 1 | Unadjusted quoted prices in active markets for assets or liabilities identical to those to be reported at fair value | ||||||
Level 2 | Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities or market-corroborated inputs | ||||||
Level 3 | Unobservable inputs for which there is little or no market data and which require us to develop our own assumptions about how market participants would price the assets or liabilities |
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||
Pension Plan Assets: | Total | Level 1 | Level 2 | Level 3 | Assets Measured at NAV(a) | Total | Level 1 | Level 2 | Level 3 | Assets Measured at NAV(a) | |||||||||||||||||||||||||||||||
Equity securities funds | $ | 1,957 | $ | 47 | $ | 117 | $ | 71 | $ | 1,722 | $ | 1,457 | $ | 254 | $ | 106 | $ | 63 | $ | 1,034 | |||||||||||||||||||||
Fixed-income securities | 1,732 | \u2014 | 687 | 69 | 976 | 1,520 | \u2014 | 628 | 87 | 805 | |||||||||||||||||||||||||||||||
Alternatives | 776 | \u2014 | \u2014 | 205 | 571 | 596 | \u2014 | \u2014 | 134 | 462 | |||||||||||||||||||||||||||||||
Other investments | 499 | 466 | 21 | 12 | \u2014 | 254 | 224 | 17 | 13 | \u2014 | |||||||||||||||||||||||||||||||
Total | $ | 4,964 | $ | 513 | $ | 825 | $ | 357 | $ | 3,269 | $ | 3,827 | $ | 478 | $ | 751 | $ | 297 | $ | 2,301 | |||||||||||||||||||||
Other Postretirement Benefit Plan Assets: | |||||||||||||||||||||||||||||||||||||||||
Deposit administration fund | $ | 52 | $ | \u2014 | $ | \u2014 | $ | 52 | $ | \u2014 | $ | 53 | $ | \u2014 | $ | \u2014 | $ | 53 | $ | \u2014 |
2019 | 2018 | ||||||
Balance at beginning of year | $ | 350 | $ | 383 | |||
Actual return (loss) on plan assets: | |||||||
Sold during the year | 12 | 10 | |||||
Held at year end | (1 | ) | (21 | ) | |||
Purchases, sales, issuances and settlements (net) | 48 | (22 | ) | ||||
Balance at end of year | $ | 409 | $ | 350 |
Pension | Other Postretirement | ||||||
2020 | $ | 361 | $ | 53 | |||
2021 | 386 | 56 | |||||
2022 | 399 | 59 | |||||
2023 | 410 | 62 | |||||
2024 | 399 | 64 | |||||
Years 2025 \u2013 2029 | 2,219 | 328 |
Pension Fund | IAM National Pension Fund |
EIN/ Pension Plan Number | 51-6031295 - 002 |
Pension Protection Act Zone Status (2019 and 2018) | Red Zone (2019) and Green Zone (2018). Plans in the Green Zone are at least 80 percent funded. Plans in the Red Zone are less than 65% funded. The IAM National Pension Fund Board of Trustees voluntarily elected to place the fund in the Red Zone for 2019, although the fund was over 80% funded at the time, to protect the fund's participants' core retirement benefits and strengthen the fund's financial health over the long term. |
FIP/RP Status Pending/Implemented | A 10-year Rehabilitation Plan effective, January 1, 2022, was adopted on April 17, 2019 that requires the Company to make an additional contribution of 2.5% of the hourly contribution rate, compounded annually for the length of the Rehabilitation Plan, effective June 1, 2019. |
United's Contributions | $59 million, $52 million and $50 million in the years ended December 31, 2019, 2018 and 2017, respectively |
Surcharge Imposed | No |
Expiration Date of Collective Bargaining Agreement | N/A |
Pension\u00a0Benefits | |||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||
Accumulated benefit obligation: | $ | 5,333 | $ | 4,448 | |||
Change in projected benefit obligation: | |||||||
Projected benefit obligation at beginning of year | $ | 5,396 | $ | 5,852 | |||
Service cost | 184 | 228 | |||||
Interest cost | 226 | 217 | |||||
Actuarial (gain) loss | 784 | (601 | ) | ||||
Gross benefits paid and settlements | (200 | ) | (292 | ) | |||
Other | 8 | (8 | ) | ||||
Projected benefit obligation at end of year | $ | 6,398 | $ | 5,396 | |||
Change in plan assets: | |||||||
Fair value of plan assets at beginning of year | $ | 3,827 | $ | 3,932 | |||
Actual (loss) return on plan assets | 684 | (215 | ) | ||||
Employer contributions | 649 | 413 | |||||
Gross benefits paid and settlements | (200 | ) | (292 | ) | |||
Other | 4 | (11 | ) | ||||
Fair value of plan assets at end of year | $ | 4,964 | $ | 3,827 | |||
Funded status\u2014Net amount recognized | $ | (1,434 | ) | $ | (1,569 | ) |
Pension\u00a0Benefits | |||||||
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||
Noncurrent asset | $ | 14 | $ | 13 | |||
Current liability | (2 | ) | (6 | ) | |||
Noncurrent liability | (1,446 | ) | (1,576 | ) | |||
Total liability | $ | (1,434 | ) | $ | (1,569 | ) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||||||
Net actuarial loss | $ | (1,652 | ) | $ | (1,382 | ) | |
Prior service cost | (4 | ) | (5 | ) | |||
Total accumulated other comprehensive loss | $ | (1,656 | ) | $ | (1,387 | ) | |
Other Postretirement Benefits | |||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||
Change in benefit obligation: | |||||||
Benefit obligation at beginning of year | $ | 1,391 | $ | 1,710 | |||
Service cost | 10 | 12 | |||||
Interest cost | 47 | 61 | |||||
Plan participants' contributions | 67 | 68 | |||||
Benefits paid | (180 | ) | (181 | ) | |||
Actuarial loss (gain) | 99 | (285 | ) | ||||
Plan amendments | (597 | ) | \u2014 | ||||
Other | 5 | 6 | |||||
Benefit obligation at end of year | $ | 842 | $ | 1,391 | |||
Change in plan assets: | |||||||
Fair value of plan assets at beginning of year | $ | 53 | $ | 54 | |||
Actual return on plan assets | 1 | 1 | |||||
Employer contributions | 111 | 111 | |||||
Plan participants' contributions | 67 | 68 | |||||
Benefits paid | (180 | ) | (181 | ) | |||
Fair value of plan assets at end of year | 52 | 53 | |||||
Funded status\u2014Net amount recognized | $ | (790 | ) | $ | (1,338 | ) |
Pension\u00a0Benefits | |||||||
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||
Noncurrent asset | $ | 14 | $ | 13 | |||
Current liability | (2 | ) | (6 | ) | |||
Noncurrent liability | (1,446 | ) | (1,576 | ) | |||
Total liability | $ | (1,434 | ) | $ | (1,569 | ) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||||||
Net actuarial loss | $ | (1,652 | ) | $ | (1,382 | ) | |
Prior service cost | (4 | ) | (5 | ) | |||
Total accumulated other comprehensive loss | $ | (1,656 | ) | $ | (1,387 | ) | |
Other Postretirement Benefits | |||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||
Change in benefit obligation: | |||||||
Benefit obligation at beginning of year | $ | 1,391 | $ | 1,710 | |||
Service cost | 10 | 12 | |||||
Interest cost | 47 | 61 | |||||
Plan participants' contributions | 67 | 68 | |||||
Benefits paid | (180 | ) | (181 | ) | |||
Actuarial loss (gain) | 99 | (285 | ) | ||||
Plan amendments | (597 | ) | \u2014 | ||||
Other | 5 | 6 | |||||
Benefit obligation at end of year | $ | 842 | $ | 1,391 | |||
Change in plan assets: | |||||||
Fair value of plan assets at beginning of year | $ | 53 | $ | 54 | |||
Actual return on plan assets | 1 | 1 | |||||
Employer contributions | 111 | 111 | |||||
Plan participants' contributions | 67 | 68 | |||||
Benefits paid | (180 | ) | (181 | ) | |||
Fair value of plan assets at end of year | 52 | 53 | |||||
Funded status\u2014Net amount recognized | $ | (790 | ) | $ | (1,338 | ) |
Other Postretirement Benefits | |||||||
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||
Current liability | $ | (1 | ) | $ | (43 | ) | |
Noncurrent liability | (789 | ) | (1,295 | ) | |||
Total liability | $ | (790 | ) | $ | (1,338 | ) | |
Amounts recognized in accumulated other comprehensive income consist of: | |||||||
Net actuarial gain | $ | 403 | $ | 554 | |||
Prior service credit | 693 | 170 | |||||
Total accumulated other comprehensive income | $ | 1,096 | $ | 724 |
2019 | 2018 | ||||||
Projected benefit obligation | $ | 6,161 | $ | 5,196 | |||
Accumulated benefit obligation | 5,137 | 4,286 | |||||
Fair value of plan assets | 4,714 | 3,614 |
2019 | 2018 | 2017 | |||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||
Service cost | $ | 184 | $ | 10 | $ | 228 | $ | 12 | $ | 195 | $ | 13 | |||||||||||
Interest cost | 226 | 47 | 217 | 61 | 220 | 66 | |||||||||||||||||
Expected return on plan assets | (291 | ) | (1 | ) | (292 | ) | (2 | ) | (243 | ) | (2 | ) | |||||||||||
Amortization of unrecognized actuarial (gain) loss | 118 | (52 | ) | 130 | (32 | ) | 128 | (33 | ) | ||||||||||||||
Amortization of prior service credits | \u2014 | (73 | ) | \u2014 | (37 | ) | \u2014 | (37 | ) | ||||||||||||||
Other | 5 | \u2014 | 1 | \u2014 | 5 | \u2014 | |||||||||||||||||
Net periodic benefit cost (credit) | $ | 242 | $ | (69 | ) | $ | 284 | $ | 2 | $ | 305 | $ | 7 |
Pension Benefits | ||||||
Assumptions used to determine benefit obligations | 2019 | 2018 | ||||
Discount rate | 3.52 | % | 4.20 | % | ||
Rate of compensation increase | 3.89 | % | 3.89 | % | ||
Assumptions used to determine net expense | ||||||
Discount rate | 4.21 | % | 3.65 | % | ||
Expected return on plan assets | 7.40 | % | 7.31 | % | ||
Rate of compensation increase | 3.89 | % | 3.89 | % |
Other Postretirement Benefits | ||||||
Assumptions used to determine benefit obligations | 2019 | 2018 | ||||
Discount rate | 3.35 | % | 4.30 | % | ||
Assumptions used to determine net expense | ||||||
Discount rate | 4.30 | % | 3.63 | % | ||
Expected return on plan assets | 3.00 | % | 3.00 | % | ||
Health care cost trend rate assumed for next year | 6.00 | % | 6.00 | % | ||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate in 2033) | 5.00 | % | 5.00 | % |
\u00a0 | \u00a0Percent of Total | Expected Long-Term Rate of Return | |||
Equity securities | 30-45 | % | 10 | % | |
Fixed-income securities | 35-50 | \u00a0 | 5 | \u00a0 | |
Alternatives | 15-25 | \u00a0 | 7 | \u00a0 |
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||
Pension Plan Assets: | Total | Level 1 | Level 2 | Level 3 | Assets Measured at NAV(a) | Total | Level 1 | Level 2 | Level 3 | Assets Measured at NAV(a) | |||||||||||||||||||||||||||||||
Equity securities funds | $ | 1,957 | $ | 47 | $ | 117 | $ | 71 | $ | 1,722 | $ | 1,457 | $ | 254 | $ | 106 | $ | 63 | $ | 1,034 | |||||||||||||||||||||
Fixed-income securities | 1,732 | \u2014 | 687 | 69 | 976 | 1,520 | \u2014 | 628 | 87 | 805 | |||||||||||||||||||||||||||||||
Alternatives | 776 | \u2014 | \u2014 | 205 | 571 | 596 | \u2014 | \u2014 | 134 | 462 | |||||||||||||||||||||||||||||||
Other investments | 499 | 466 | 21 | 12 | \u2014 | 254 | 224 | 17 | 13 | \u2014 | |||||||||||||||||||||||||||||||
Total | $ | 4,964 | $ | 513 | $ | 825 | $ | 357 | $ | 3,269 | $ | 3,827 | $ | 478 | $ | 751 | $ | 297 | $ | 2,301 | |||||||||||||||||||||
Other Postretirement Benefit Plan Assets: | |||||||||||||||||||||||||||||||||||||||||
Deposit administration fund | $ | 52 | $ | \u2014 | $ | \u2014 | $ | 52 | $ | \u2014 | $ | 53 | $ | \u2014 | $ | \u2014 | $ | 53 | $ | \u2014 |
2019 | 2018 | ||||||
Balance at beginning of year | $ | 350 | $ | 383 | |||
Actual return (loss) on plan assets: | |||||||
Sold during the year | 12 | 10 | |||||
Held at year end | (1 | ) | (21 | ) | |||
Purchases, sales, issuances and settlements (net) | 48 | (22 | ) | ||||
Balance at end of year | $ | 409 | $ | 350 |
Pension | Other Postretirement | ||||||
2020 | $ | 361 | $ | 53 | |||
2021 | 386 | 56 | |||||
2022 | 399 | 59 | |||||
2023 | 410 | 62 | |||||
2024 | 399 | 64 | |||||
Years 2025 \u2013 2029 | 2,219 | 328 |
Pension Fund | IAM National Pension Fund |
EIN/ Pension Plan Number | 51-6031295 - 002 |
Pension Protection Act Zone Status (2019 and 2018) | Red Zone (2019) and Green Zone (2018). Plans in the Green Zone are at least 80 percent funded. Plans in the Red Zone are less than 65% funded. The IAM National Pension Fund Board of Trustees voluntarily elected to place the fund in the Red Zone for 2019, although the fund was over 80% funded at the time, to protect the fund's participants' core retirement benefits and strengthen the fund's financial health over the long term. |
FIP/RP Status Pending/Implemented | A 10-year Rehabilitation Plan effective, January 1, 2022, was adopted on April 17, 2019 that requires the Company to make an additional contribution of 2.5% of the hourly contribution rate, compounded annually for the length of the Rehabilitation Plan, effective June 1, 2019. |
United's Contributions | $59 million, $52 million and $50 million in the years ended December 31, 2019, 2018 and 2017, respectively |
Surcharge Imposed | No |
Expiration Date of Collective Bargaining Agreement | N/A |
2019 | 2018 | ||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,762 | $ | 2,762 | $ | \u2014 | $ | \u2014 | $ | 1,694 | $ | 1,694 | $ | \u2014 | $ | \u2014 | |||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||
Corporate debt | 1,045 | \u2014 | 1,045 | \u2014 | 1,023 | \u2014 | 1,023 | \u2014 | |||||||||||||||||||||||
Asset-backed securities | 690 | \u2014 | 690 | \u2014 | 746 | \u2014 | 746 | \u2014 | |||||||||||||||||||||||
U.S. government and agency notes | 124 | \u2014 | 124 | \u2014 | 108 | \u2014 | 108 | \u2014 | |||||||||||||||||||||||
Certificates of deposit placed through an account registry service (\"CDARS\") | 35 | \u2014 | 35 | \u2014 | 75 | \u2014 | 75 | \u2014 | |||||||||||||||||||||||
Other fixed-income securities | 95 | \u2014 | 95 | \u2014 | 116 | \u2014 | 116 | \u2014 | |||||||||||||||||||||||
Other investments measured at NAV | 193 | \u2014 | \u2014 | \u2014 | 188 | \u2014 | \u2014 | \u2014 | |||||||||||||||||||||||
Restricted cash | 106 | 106 | \u2014 | \u2014 | 105 | 105 | \u2014 | \u2014 | |||||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||||||||
Equity securities | 385 | 385 | \u2014 | \u2014 | 249 | 249 | \u2014 | \u2014 | |||||||||||||||||||||||
AVH Derivative Assets | 24 | \u2014 | \u2014 | 24 | 11 | \u2014 | \u2014 | 11 |
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
Long-term debt | $ | 14,552 | $ | 15,203 | $ | \u2014 | $ | 11,398 | $ | 3,805 | $ | 13,445 | $ | 13,450 | $ | \u2014 | $ | 9,525 | $ | 3,925 |
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, Equity securities 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, or (c) broker quotes obtained by third-party valuation services. |
Other investments measured at NAV | In accordance with the relevant accounting standards, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The investments measured using NAV are shares of mutual funds that invest in fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. The Company can redeem its shares at any time at NAV subject to a three-day settlement period. |
AVH Derivative Assets | Fair values are calculated using a Monte Carlo simulation approach. Unobservable inputs include expected volatility, expected dividend yield and control and acquisition premiums. |
Long-term 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 or assets. |
\u2022 | Republic Airways Holdings Inc. (\"Republic\"). United holds a 19% minority interest in Republic which the Company received in 2017 in consideration for its unsecured claim in Republic's bankruptcy case. Republic is the parent company of Republic Airline Inc. |
\u2022 | ManaAir, LLC (\"ManaAir\"). United holds a 49.9% minority ownership stake in ManaAir. ManaAir is the parent company of ExpressJet Airlines LLC. |
\u2022 | Champlain Enterprises, LLC (\"Champlain\"). United owns a 40% minority ownership stake in Champlain. Champlain does business as CommutAir. |
2019 | 2018 | ||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,762 | $ | 2,762 | $ | \u2014 | $ | \u2014 | $ | 1,694 | $ | 1,694 | $ | \u2014 | $ | \u2014 | |||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||
Corporate debt | 1,045 | \u2014 | 1,045 | \u2014 | 1,023 | \u2014 | 1,023 | \u2014 | |||||||||||||||||||||||
Asset-backed securities | 690 | \u2014 | 690 | \u2014 | 746 | \u2014 | 746 | \u2014 | |||||||||||||||||||||||
U.S. government and agency notes | 124 | \u2014 | 124 | \u2014 | 108 | \u2014 | 108 | \u2014 | |||||||||||||||||||||||
Certificates of deposit placed through an account registry service (\"CDARS\") | 35 | \u2014 | 35 | \u2014 | 75 | \u2014 | 75 | \u2014 | |||||||||||||||||||||||
Other fixed-income securities | 95 | \u2014 | 95 | \u2014 | 116 | \u2014 | 116 | \u2014 | |||||||||||||||||||||||
Other investments measured at NAV | 193 | \u2014 | \u2014 | \u2014 | 188 | \u2014 | \u2014 | \u2014 | |||||||||||||||||||||||
Restricted cash | 106 | 106 | \u2014 | \u2014 | 105 | 105 | \u2014 | \u2014 | |||||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||||||||
Equity securities | 385 | 385 | \u2014 | \u2014 | 249 | 249 | \u2014 | \u2014 | |||||||||||||||||||||||
AVH Derivative Assets | 24 | \u2014 | \u2014 | 24 | 11 | \u2014 | \u2014 | 11 |
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
Long-term debt | $ | 14,552 | $ | 15,203 | $ | \u2014 | $ | 11,398 | $ | 3,805 | $ | 13,445 | $ | 13,450 | $ | \u2014 | $ | 9,525 | $ | 3,925 |
(In millions) | At December\u00a031, | |||||||
2019 | 2018 | |||||||
Secured | ||||||||
Notes payable, fixed interest rates of 2.7% to 9.8% (weighted average rate of 3.95% as of December 31, 2019), payable through 2032 | $ | 9,615 | $ | 8,811 | ||||
Notes payable, floating interest rates of the London interbank offered rate (\"LIBOR\") plus 1.05% to 2.25%, payable through 2030 | 1,970 | 2,051 | ||||||
Term loan, LIBOR plus 1.75%, or alternative rate based on certain market rates plus 0.75%, due 2024 | 1,459 | 1,474 | ||||||
Unsecured | ||||||||
6% Senior Notes due 2020 (a) | 300 | 300 | ||||||
4.25% Senior Notes due 2022 (a) | 400 | 400 | ||||||
5% Senior Notes due 2024 (a) | 300 | 300 | ||||||
4.875% Senior Notes due 2025 (a) | 350 | \u2014 | ||||||
Other | 339 | 300 | ||||||
14,733 | 13,636 | |||||||
Less: unamortized debt discount, premiums and debt issuance costs | (181 | ) | (191 | ) | ||||
Less: current portion of long-term debt | (1,407 | ) | (1,230 | ) | ||||
Long-term debt, net | $ | 13,145 | $ | 12,215 |
2020 | $ | 1,407 | ||
2021 | 1,415 | |||
2022 | 1,765 | |||
2023 | 815 | |||
2024 | 3,122 | |||
After 2024 | 6,209 | |||
$ | 14,733 |
EETC Issuance Date | Class | Principal | Final expected distribution date | Stated interest rate | Total proceeds received from issuance of debt during 2019 and recorded as debt as of December 31, 2019 | Amounts returned to the holders of the Pass-Through Certificates (a) | Remaining proceeds from issuance of debt to be received in future periods | |||||||||||||||
September 2019 | AA | $ | 702 | May 2032 | 2.70% | $ | 513 | $ | \u2014 | $ | 189 | |||||||||||
September 2019 | A | 287 | May 2028 | 2.90% | 210 | \u2014 | 77 | |||||||||||||||
September 2019 | B | 232 | May 2028 | 3.50% | 170 | \u2014 | 62 | |||||||||||||||
February 2019 | AA | 717 | August 2031 | 4.15% | 651 | 66 | \u2014 | |||||||||||||||
February 2019 | A | 296 | August 2031 | 4.55% | 269 | 27 | \u2014 | |||||||||||||||
$ | 2,234 | $ | 1,813 | $ | 93 | $ | 328 |
Debt Instrument | Collateral, Covenants and Cross Default Provisions |
Various equipment notes and other notes payable | Secured by certain aircraft. The indentures contain events of default that are customary for aircraft financing, including in certain cases cross default to other related aircraft. |
Credit Agreement | Secured by certain of United's international route authorities, specified take-off and landing slots at certain airports and certain other assets. The Credit Agreement requires the Company to maintain at least $2.0 billion of unrestricted liquidity at all times, which includes unrestricted cash, short-term investments and any undrawn amounts under any revolving credit facility, and to maintain a minimum ratio of appraised value of collateral to the outstanding obligations under the Credit Agreement of 1.6 to 1.0 at all times. The Credit Agreement contains covenants that, among other things, restrict the ability of UAL and its restricted subsidiaries (as defined in the Credit Agreement) to incur additional indebtedness and to pay dividends on or repurchase stock, although, as of December 31, 2019, the Company had ample ability under these restrictions to repurchase stock under the Company's share repurchase programs. The Credit Agreement contains events of default customary for this type of financing, including a cross default and cross acceleration provision to certain other material indebtedness of the Company. |
6% Senior Notes due 2020 4.25% Senior Notes due 2022 5% Senior Notes due 2024 4.875% Senior Notes due 2025 | The indentures for these notes contain covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries (as defined in the indentures) to incur additional indebtedness and pay dividends on or repurchase stock, although the Company currently has ample ability under these restrictions to repurchase stock under the Company's share repurchase programs. |
(In millions) | At December\u00a031, | |||||||
2019 | 2018 | |||||||
Secured | ||||||||
Notes payable, fixed interest rates of 2.7% to 9.8% (weighted average rate of 3.95% as of December 31, 2019), payable through 2032 | $ | 9,615 | $ | 8,811 | ||||
Notes payable, floating interest rates of the London interbank offered rate (\"LIBOR\") plus 1.05% to 2.25%, payable through 2030 | 1,970 | 2,051 | ||||||
Term loan, LIBOR plus 1.75%, or alternative rate based on certain market rates plus 0.75%, due 2024 | 1,459 | 1,474 | ||||||
Unsecured | ||||||||
6% Senior Notes due 2020 (a) | 300 | 300 | ||||||
4.25% Senior Notes due 2022 (a) | 400 | 400 | ||||||
5% Senior Notes due 2024 (a) | 300 | 300 | ||||||
4.875% Senior Notes due 2025 (a) | 350 | \u2014 | ||||||
Other | 339 | 300 | ||||||
14,733 | 13,636 | |||||||
Less: unamortized debt discount, premiums and debt issuance costs | (181 | ) | (191 | ) | ||||
Less: current portion of long-term debt | (1,407 | ) | (1,230 | ) | ||||
Long-term debt, net | $ | 13,145 | $ | 12,215 |
2020 | $ | 1,407 | ||
2021 | 1,415 | |||
2022 | 1,765 | |||
2023 | 815 | |||
2024 | 3,122 | |||
After 2024 | 6,209 | |||
$ | 14,733 |
EETC Issuance Date | Class | Principal | Final expected distribution date | Stated interest rate | Total proceeds received from issuance of debt during 2019 and recorded as debt as of December 31, 2019 | Amounts returned to the holders of the Pass-Through Certificates (a) | Remaining proceeds from issuance of debt to be received in future periods | |||||||||||||||
September 2019 | AA | $ | 702 | May 2032 | 2.70% | $ | 513 | $ | \u2014 | $ | 189 | |||||||||||
September 2019 | A | 287 | May 2028 | 2.90% | 210 | \u2014 | 77 | |||||||||||||||
September 2019 | B | 232 | May 2028 | 3.50% | 170 | \u2014 | 62 | |||||||||||||||
February 2019 | AA | 717 | August 2031 | 4.15% | 651 | 66 | \u2014 | |||||||||||||||
February 2019 | A | 296 | August 2031 | 4.55% | 269 | 27 | \u2014 | |||||||||||||||
$ | 2,234 | $ | 1,813 | $ | 93 | $ | 328 |
Debt Instrument | Collateral, Covenants and Cross Default Provisions |
Various equipment notes and other notes payable | Secured by certain aircraft. The indentures contain events of default that are customary for aircraft financing, including in certain cases cross default to other related aircraft. |
Credit Agreement | Secured by certain of United's international route authorities, specified take-off and landing slots at certain airports and certain other assets. The Credit Agreement requires the Company to maintain at least $2.0 billion of unrestricted liquidity at all times, which includes unrestricted cash, short-term investments and any undrawn amounts under any revolving credit facility, and to maintain a minimum ratio of appraised value of collateral to the outstanding obligations under the Credit Agreement of 1.6 to 1.0 at all times. The Credit Agreement contains covenants that, among other things, restrict the ability of UAL and its restricted subsidiaries (as defined in the Credit Agreement) to incur additional indebtedness and to pay dividends on or repurchase stock, although, as of December 31, 2019, the Company had ample ability under these restrictions to repurchase stock under the Company's share repurchase programs. The Credit Agreement contains events of default customary for this type of financing, including a cross default and cross acceleration provision to certain other material indebtedness of the Company. |
6% Senior Notes due 2020 4.25% Senior Notes due 2022 5% Senior Notes due 2024 4.875% Senior Notes due 2025 | The indentures for these notes contain covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries (as defined in the indentures) to incur additional indebtedness and pay dividends on or repurchase stock, although the Company currently has ample ability under these restrictions to repurchase stock under the Company's share repurchase programs. |
2019 | 2018 | 2017 | ||||||||||
Operating lease cost | $ | 1,038 | $ | 1,213 | $ | 1,433 | ||||||
Variable and short-term lease cost | 2,548 | 2,569 | 2,209 | |||||||||
Amortization of finance lease assets | 68 | 75 | 77 | |||||||||
Interest on finance lease liabilities | 85 | 44 | 24 | |||||||||
Sublease income | (32 | ) | (38 | ) | (36 | ) | ||||||
Total lease cost | $ | 3,707 | $ | 3,863 | $ | 3,707 |
Operating Leases | Finance Leases | |||||||
2020 | $ | 920 | $ | 62 | ||||
2021 | 754 | 75 | ||||||
2022 | 591 | 49 | ||||||
2023 | 633 | 38 | ||||||
2024 | 626 | 35 | ||||||
After 2024 | 4,214 | 57 | ||||||
Minimum lease payments | 7,738 | 316 | ||||||
Imputed interest | (2,106 | ) | (50 | ) | ||||
Present value of minimum lease payments | 5,632 | 266 | ||||||
Less: current maturities of lease obligations | (686 | ) | (46 | ) | ||||
Long-term lease obligations | $ | 4,946 | $ | 220 |
2019 | 2018 | |||||
Weighted-average remaining lease term - operating leases | 11 years | 10 years | ||||
Weighted-average remaining lease term - finance leases | 6 years | 5 years | ||||
Weighted-average discount rate - operating leases | 5.2 | % | 5.2 | % | ||
Weighted-average discount rate - finance leases | 5.7 | % | 45.8 | % |
2019 | 2018 | 2017 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows for operating leases | $ | 902 | $ | 1,078 | $ | 1,451 | |||||
Operating cash flows for finance leases | 70 | 53 | 24 | ||||||||
Financing cash flows for finance leases | 151 | 79 | 84 |
2020 | $ | 2.9 | |
2021 | 2.9 | ||
2022 | 2.4 | ||
2023 | 1.5 | ||
2024 | 1.3 | ||
After 2024 | 4.7 | ||
$ | 15.7 |
2019 | 2018 | 2017 | ||||||||||
Operating lease cost | $ | 1,038 | $ | 1,213 | $ | 1,433 | ||||||
Variable and short-term lease cost | 2,548 | 2,569 | 2,209 | |||||||||
Amortization of finance lease assets | 68 | 75 | 77 | |||||||||
Interest on finance lease liabilities | 85 | 44 | 24 | |||||||||
Sublease income | (32 | ) | (38 | ) | (36 | ) | ||||||
Total lease cost | $ | 3,707 | $ | 3,863 | $ | 3,707 |
Operating Leases | Finance Leases | |||||||
2020 | $ | 920 | $ | 62 | ||||
2021 | 754 | 75 | ||||||
2022 | 591 | 49 | ||||||
2023 | 633 | 38 | ||||||
2024 | 626 | 35 | ||||||
After 2024 | 4,214 | 57 | ||||||
Minimum lease payments | 7,738 | 316 | ||||||
Imputed interest | (2,106 | ) | (50 | ) | ||||
Present value of minimum lease payments | 5,632 | 266 | ||||||
Less: current maturities of lease obligations | (686 | ) | (46 | ) | ||||
Long-term lease obligations | $ | 4,946 | $ | 220 |
2019 | 2018 | |||||
Weighted-average remaining lease term - operating leases | 11 years | 10 years | ||||
Weighted-average remaining lease term - finance leases | 6 years | 5 years | ||||
Weighted-average discount rate - operating leases | 5.2 | % | 5.2 | % | ||
Weighted-average discount rate - finance leases | 5.7 | % | 45.8 | % |
2019 | 2018 | 2017 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows for operating leases | $ | 902 | $ | 1,078 | $ | 1,451 | |||||
Operating cash flows for finance leases | 70 | 53 | 24 | ||||||||
Financing cash flows for finance leases | 151 | 79 | 84 |
2020 | $ | 2.9 | |
2021 | 2.9 | ||
2022 | 2.4 | ||
2023 | 1.5 | ||
2024 | 1.3 | ||
After 2024 | 4.7 | ||
$ | 15.7 |
2019 | 2018 | 2017 | ||||||||||
Operating lease cost | $ | 1,038 | $ | 1,213 | $ | 1,433 | ||||||
Variable and short-term lease cost | 2,548 | 2,569 | 2,209 | |||||||||
Amortization of finance lease assets | 68 | 75 | 77 | |||||||||
Interest on finance lease liabilities | 85 | 44 | 24 | |||||||||
Sublease income | (32 | ) | (38 | ) | (36 | ) | ||||||
Total lease cost | $ | 3,707 | $ | 3,863 | $ | 3,707 |
Operating Leases | Finance Leases | |||||||
2020 | $ | 920 | $ | 62 | ||||
2021 | 754 | 75 | ||||||
2022 | 591 | 49 | ||||||
2023 | 633 | 38 | ||||||
2024 | 626 | 35 | ||||||
After 2024 | 4,214 | 57 | ||||||
Minimum lease payments | 7,738 | 316 | ||||||
Imputed interest | (2,106 | ) | (50 | ) | ||||
Present value of minimum lease payments | 5,632 | 266 | ||||||
Less: current maturities of lease obligations | (686 | ) | (46 | ) | ||||
Long-term lease obligations | $ | 4,946 | $ | 220 |
Operating Leases | Finance Leases | |||||||
2020 | $ | 920 | $ | 62 | ||||
2021 | 754 | 75 | ||||||
2022 | 591 | 49 | ||||||
2023 | 633 | 38 | ||||||
2024 | 626 | 35 | ||||||
After 2024 | 4,214 | 57 | ||||||
Minimum lease payments | 7,738 | 316 | ||||||
Imputed interest | (2,106 | ) | (50 | ) | ||||
Present value of minimum lease payments | 5,632 | 266 | ||||||
Less: current maturities of lease obligations | (686 | ) | (46 | ) | ||||
Long-term lease obligations | $ | 4,946 | $ | 220 |
2019 | 2018 | |||||
Weighted-average remaining lease term - operating leases | 11 years | 10 years | ||||
Weighted-average remaining lease term - finance leases | 6 years | 5 years | ||||
Weighted-average discount rate - operating leases | 5.2 | % | 5.2 | % | ||
Weighted-average discount rate - finance leases | 5.7 | % | 45.8 | % |
2019 | 2018 | 2017 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows for operating leases | $ | 902 | $ | 1,078 | $ | 1,451 | |||||
Operating cash flows for finance leases | 70 | 53 | 24 | ||||||||
Financing cash flows for finance leases | 151 | 79 | 84 |
2020 | $ | 2.9 | |
2021 | 2.9 | ||
2022 | 2.4 | ||
2023 | 1.5 | ||
2024 | 1.3 | ||
After 2024 | 4.7 | ||
$ | 15.7 |
Scheduled Aircraft Deliveries | |||||||||
Aircraft Type | Number of Firm Commitments (a) | 2020 | After 2020 | ||||||
Airbus A321XLR | 50 | \u2014 | 50 | ||||||
Airbus A350 | 45 | \u2014 | 45 | ||||||
Boeing 737 MAX | 171 | 44 | 127 | ||||||
Boeing 777-300ER | 2 | 2 | \u2014 | ||||||
Boeing 787 | 16 | 15 | 1 | ||||||
Embraer E175 | 20 | 20 | \u2014 |
2020 | $ | 6.9 | ||
2021 | 4.3 | |||
2022 | 2.0 | |||
2023 | 1.0 | |||
2024 | 1.2 | |||
After 2024 | 11.3 | |||
$ | 26.7 |
Scheduled Aircraft Deliveries | |||||||||
Aircraft Type | Number of Firm Commitments (a) | 2020 | After 2020 | ||||||
Airbus A321XLR | 50 | \u2014 | 50 | ||||||
Airbus A350 | 45 | \u2014 | 45 | ||||||
Boeing 737 MAX | 171 | 44 | 127 | ||||||
Boeing 777-300ER | 2 | 2 | \u2014 | ||||||
Boeing 787 | 16 | 15 | 1 | ||||||
Embraer E175 | 20 | 20 | \u2014 |
2020 | $ | 6.9 | ||
2021 | 4.3 | |||
2022 | 2.0 | |||
2023 | 1.0 | |||
2024 | 1.2 | |||
After 2024 | 11.3 | |||
$ | 26.7 |
Operating: | 2019 | 2018 | 2017 | |||||||||
Impairment of assets | $ | 171 | $ | 377 | $ | 25 | ||||||
Severance and benefit costs | 16 | 41 | 116 | |||||||||
Termination of an engine maintenance service agreement | \u2014 | 64 | \u2014 | |||||||||
(Gains) losses on sale of assets and other special charges | 59 | 5 | 35 | |||||||||
Total operating special charges | 246 | 487 | 176 | |||||||||
Nonoperating unrealized (gains) losses on investments | (153 | ) | 5 | \u2014 | ||||||||
Total special charges and unrealized (gains) losses on investments | 93 | 492 | 176 | |||||||||
Income tax benefit | (21 | ) | (110 | ) | (63 | ) | ||||||
Income tax adjustments (Note 6) | \u2014 | (5 | ) | (189 | ) | |||||||
Total special charges and unrealized (gains) losses on investments, net of income taxes and income tax adjustments | $ | 72 | $ | 377 | $ | (76 | ) |
Operating: | 2019 | 2018 | 2017 | |||||||||
Impairment of assets | $ | 171 | $ | 377 | $ | 25 | ||||||
Severance and benefit costs | 16 | 41 | 116 | |||||||||
Termination of an engine maintenance service agreement | \u2014 | 64 | \u2014 | |||||||||
(Gains) losses on sale of assets and other special charges | 59 | 5 | 35 | |||||||||
Total operating special charges | 246 | 487 | 176 | |||||||||
Nonoperating unrealized (gains) losses on investments | (153 | ) | 5 | \u2014 | ||||||||
Total special charges and unrealized (gains) losses on investments | 93 | 492 | 176 | |||||||||
Income tax benefit | (21 | ) | (110 | ) | (63 | ) | ||||||
Income tax adjustments (Note 6) | \u2014 | (5 | ) | (189 | ) | |||||||
Total special charges and unrealized (gains) losses on investments, net of income taxes and income tax adjustments | $ | 72 | $ | 377 | $ | (76 | ) |
Quarter Ended | ||||||||||||||||
(In millions, except per share amounts) | March\u00a031 | June\u00a030 | September\u00a030 | December\u00a031 | ||||||||||||
2019 | ||||||||||||||||
Operating revenue | $ | 9,589 | $ | 11,402 | $ | 11,380 | $ | 10,888 | ||||||||
Income from operations | 495 | 1,472 | 1,473 | 861 | ||||||||||||
Net income | 292 | 1,052 | 1,024 | 641 | ||||||||||||
Basic earnings per share | 1.09 | 4.03 | 4.01 | 2.54 | ||||||||||||
Diluted earnings per share | 1.09 | 4.02 | 3.99 | 2.53 | ||||||||||||
2018 | ||||||||||||||||
Operating revenue | $ | 9,032 | $ | 10,777 | $ | 11,003 | $ | 10,491 | ||||||||
Income from operations (a) | 262 | 1,145 | 1,187 | 635 | ||||||||||||
Net income (a) | 145 | 683 | 833 | 461 | ||||||||||||
Basic earnings per share (a) | 0.51 | 2.48 | 3.06 | 1.70 | ||||||||||||
Diluted earnings per share (a) | 0.51 | 2.48 | 3.05 | 1.69 |
Quarter Ended | ||||||||||||||||
March\u00a031 | June\u00a030 | September\u00a030 | December\u00a031 | |||||||||||||
2019 | ||||||||||||||||
Impairment of assets | 8 | 61 | \u2014 | 102 | ||||||||||||
Severance and benefit costs | 6 | 6 | 2 | 2 | ||||||||||||
(Gains) losses on sale of assets and other special charges | 4 | 4 | 25 | 26 | ||||||||||||
Total operating special charges | 18 | 71 | 27 | 130 | ||||||||||||
Nonoperating unrealized (gains) losses on investments | (17 | ) | (34 | ) | (21 | ) | (81 | ) | ||||||||
Total special charges and unrealized (gains) losses on investments | 1 | 37 | 6 | 49 | ||||||||||||
Income tax benefit related to special charges and unrealized (gains) losses on investments | \u2014 | (8 | ) | (2 | ) | (11 | ) | |||||||||
Total special charges and unrealized (gains) losses on investments, net of income tax | 1 | 29 | 4 | 38 | ||||||||||||
2018 | ||||||||||||||||
Impairment of assets | $ | 23 | $ | 111 | $ | 11 | $ | 232 | ||||||||
Termination of an engine maintenance service agreement | \u2014 | \u2014 | \u2014 | 64 | ||||||||||||
Severance and benefit costs | 14 | 11 | 9 | 7 | ||||||||||||
(Gains) losses on sale of assets and other special charges | 3 | 7 | (3 | ) | (2 | ) | ||||||||||
Total operating special charges | 40 | 129 | 17 | 301 | ||||||||||||
Nonoperating unrealized (gains) losses on investments | (45 | ) | 135 | (29 | ) | (56 | ) | |||||||||
Total special charges and unrealized (gains) losses on investments | (5 | ) | 264 | (12 | ) | 245 | ||||||||||
Income tax benefit related to special charges and unrealized (gains) losses on investments | 1 | (59 | ) | 3 | (55 | ) | ||||||||||
Income tax adjustments | \u2014 | \u2014 | \u2014 | (5 | ) | |||||||||||
Total special charges and unrealized (gains) losses on investments, net of income tax | $ | (4 | ) | $ | 205 | $ | (9 | ) | $ | 185 |
Quarter Ended | ||||||||||||||||
(In millions, except per share amounts) | March\u00a031 | June\u00a030 | September\u00a030 | December\u00a031 | ||||||||||||
2019 | ||||||||||||||||
Operating revenue | $ | 9,589 | $ | 11,402 | $ | 11,380 | $ | 10,888 | ||||||||
Income from operations | 495 | 1,472 | 1,473 | 861 | ||||||||||||
Net income | 292 | 1,052 | 1,024 | 641 | ||||||||||||
Basic earnings per share | 1.09 | 4.03 | 4.01 | 2.54 | ||||||||||||
Diluted earnings per share | 1.09 | 4.02 | 3.99 | 2.53 | ||||||||||||
2018 | ||||||||||||||||
Operating revenue | $ | 9,032 | $ | 10,777 | $ | 11,003 | $ | 10,491 | ||||||||
Income from operations (a) | 262 | 1,145 | 1,187 | 635 | ||||||||||||
Net income (a) | 145 | 683 | 833 | 461 | ||||||||||||
Basic earnings per share (a) | 0.51 | 2.48 | 3.06 | 1.70 | ||||||||||||
Diluted earnings per share (a) | 0.51 | 2.48 | 3.05 | 1.69 |
Quarter Ended | ||||||||||||||||
March\u00a031 | June\u00a030 | September\u00a030 | December\u00a031 | |||||||||||||
2019 | ||||||||||||||||
Impairment of assets | 8 | 61 | \u2014 | 102 | ||||||||||||
Severance and benefit costs | 6 | 6 | 2 | 2 | ||||||||||||
(Gains) losses on sale of assets and other special charges | 4 | 4 | 25 | 26 | ||||||||||||
Total operating special charges | 18 | 71 | 27 | 130 | ||||||||||||
Nonoperating unrealized (gains) losses on investments | (17 | ) | (34 | ) | (21 | ) | (81 | ) | ||||||||
Total special charges and unrealized (gains) losses on investments | 1 | 37 | 6 | 49 | ||||||||||||
Income tax benefit related to special charges and unrealized (gains) losses on investments | \u2014 | (8 | ) | (2 | ) | (11 | ) | |||||||||
Total special charges and unrealized (gains) losses on investments, net of income tax | 1 | 29 | 4 | 38 | ||||||||||||
2018 | ||||||||||||||||
Impairment of assets | $ | 23 | $ | 111 | $ | 11 | $ | 232 | ||||||||
Termination of an engine maintenance service agreement | \u2014 | \u2014 | \u2014 | 64 | ||||||||||||
Severance and benefit costs | 14 | 11 | 9 | 7 | ||||||||||||
(Gains) losses on sale of assets and other special charges | 3 | 7 | (3 | ) | (2 | ) | ||||||||||
Total operating special charges | 40 | 129 | 17 | 301 | ||||||||||||
Nonoperating unrealized (gains) losses on investments | (45 | ) | 135 | (29 | ) | (56 | ) | |||||||||
Total special charges and unrealized (gains) losses on investments | (5 | ) | 264 | (12 | ) | 245 | ||||||||||
Income tax benefit related to special charges and unrealized (gains) losses on investments | 1 | (59 | ) | 3 | (55 | ) | ||||||||||
Income tax adjustments | \u2014 | \u2014 | \u2014 | (5 | ) | |||||||||||
Total special charges and unrealized (gains) losses on investments, net of income tax | $ | (4 | ) | $ | 205 | $ | (9 | ) | $ | 185 |
(In millions) \u00a0 Description | Balance\u00a0at Beginning\u00a0of Period | Additions Charged\u00a0to Costs and Expenses | Deductions | Other | Balance\u00a0at End of Period | ||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||
2019 | $ | 8 | $ | 17 | $ | 16 | $ | \u2014 | $ | 9 | |||||||||
2018 | 7 | 17 | 16 | \u2014 | 8 | ||||||||||||||
2017 | 10 | 20 | 23 | \u2014 | 7 | ||||||||||||||
Obsolescence allowance\u2014spare parts: | |||||||||||||||||||
2019 | $ | 412 | $ | 76 | $ | 63 | $ | \u2014 | $ | 425 | |||||||||
2018 | 354 | 73 | 15 | \u2014 | 412 | ||||||||||||||
2017 | 295 | 75 | 17 | 1 | 354 | ||||||||||||||
Valuation allowance for deferred tax assets: | |||||||||||||||||||
2019 | $ | 59 | $ | \u2014 | $ | 1 | $ | \u2014 | $ | 58 | |||||||||
2018 | 63 | 2 | 6 | \u2014 | 59 | ||||||||||||||
2017 | 68 | 11 | 27 | 11 | 63 |