United Airlines 2011 Annual Report Download - page 128

Table of Contents
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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 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
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):
 
       

Cash and cash equivalents $6,246 $6,246 $ — $— $8,069 $8,069 $ — $ —
Short-term investments:
Auction rate securities 113 — — 113 119 — — 119
CDARS 355 — 355 — 45 — 45 —
Asset-backed securities 478 — 478 — 258 — 258 —
Corporate debt 515 — 515 — 135 — 135 —
U.S. government and agency notes 22 — 22 — 39 — 39 —
Other fixed income securities 33 — 33 — 15 — 15 —
EETC 60 — — 60 66 — — 66
Fuel derivatives, net 73 — 73 — 375 — 375 —
Foreign currency derivatives (1) — (1) — (7) — (7) —
Restricted cash 569 569 — — 387 387 — —

Cash and cash equivalents $ 3,458 $ 3,458 $ — $— $4,665 $4,665 $ — $ —
Short-term investments:
CDARS 87 — 87 — — — — —
Asset-backed securities 29 — 29 — — — — —
Corporate debt 138 — 138 — — — — —
U.S. government and agency notes 5 — 5 — — — — —
Other fixed income securities 16 — 16 — — — — —
EETC 60 — — 60 66 — — 66
Fuel derivatives, net 44 — 44 — 277 — 277 —
Restricted cash 433 433 — — 227 227 — —

Cash and cash equivalents $2,782 $2,782 $ — $— $ 3,398 $ 3,398 $ — $ —
Short-term investments:
Auction rate securities 113 — — 113 119 — — 119
CDARS 268 — 268 — 45 — 45 —
Asset-backed securities 449 — 449 — 258 — 258 —
Corporate debt 377 — 377 — 135 — 135 —
U.S. government and agency notes 17 — 17 — 39 — 39 —
Other fixed income securities 17 — 17 — 15 — 15 —
Fuel derivatives, net 29 — 29 — 98 — 98 —
Foreign currency derivatives (1) — (1) — (7) — (7) —
Restricted cash 135 135 — — 160 160 — —
Convertible debt derivative asset 193 — — 193 286 — — 286
Convertible debt option liability (95) — — (95) (164) — — (164)
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