United Airlines 2010 Annual Report Download - page 135

NOTE 12—FAIR VALUE MEASUREMENTS
Fair Value Information. Accounting standards require us to use valuation techniques to measure fair value
that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are
prioritized as follows:
Level 1—Observable inputs such as quoted prices for identical assets or liabilities in active markets
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
The table below presents disclosures about the fair value of financial assets and financial liabilities
measured at fair value on a recurring basis in the Company’s financial statements as of December 31 (in
millions):
2010 2009
Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
UAL
Cash and cash equivalents ............ $8,069 $8,069 $— $— $3,061 $3,061 $— $—
EETC ............................ 66 — — 66 51 — — 51
Short-term investments:
Auction rate securities ........... 119 — — 119 — — — —
CDARS ...................... 45 45 — — — — — —
Asset-backed securities .......... 258 258 — — — — — —
Corporate debt ................. 135 135 — — — — — —
U.S. government and agency
notes ....................... 39 39 — — — — — —
Other fixed income securities ..... 15 15 — — — — — —
Current fuel derivative instruments
asset ........................... 375 — 375 — 138 — 138 —
Foreign currency derivatives .......... (7) — (7) — — — — —
Restricted cash ..................... 160 160 — — — — — —
Current fuel derivative instruments
liability ......................... — — — — (5) — (5) —
United
Cash and cash equivalents ............ $4,665 $4,665 $— $— $3,061 $3,061 $— $—
EETC ............................ 66 — — 66 51 — — 51
Current fuel derivative instruments
asset ........................... 277 — 277 — 138 — 138 —
Current fuel derivative instruments
liability ......................... — — — — (5) — (5) —
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