United Airlines 2012 Annual Report Download - page 123

Table of Contents
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       

Cash and cash equivalents $ 1,999 $ 1,999 $ — $ — $ 2,782 $ 2,782 $ — $ —
Short-term investments:
Asset-backed securities 699 — 699 — 449 — 449 —
Corporate debt 398 — 398 — 377 — 377 —
CDARS 228 — 228 — 268 — 268 —
Auction rate securities 116 — — 116 113 — — 113
U.S. government and agency notes 4 — 4 — 17 — 17 —
Other fixed income securities 2 — 2 — 17 — 17 —
Fuel derivatives, net 18 — 18 — 29 — 29 —
Foreign currency derivatives — — — — (1) — (1) —
Restricted cash 110 110 — — 135 135 — —
Convertible debt derivative asset 268 — — 268 193 — — 193
Convertible debt option liability (128) — — (128) (95) — — (95)
The tables below present disclosures about the activity for “Level 3” financial assets and financial liabilities for the year ended December 31 (in millions):
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

 

 
Balance at January 1 $ 113 $ 60 $ 119 $ 66
Settlements — (5) (10) (4)
Gains reported in earnings 1 — 3 —
Reported in other comprehensive income (loss) 2 8 1 (2)
Balance at December 31 $ 116 $ 63 $ 113 $ 60
(a) For 2012 and 2011, United’s only Level 3 recurring measurements are the above EETC securities.
As of December 31, 2012, Continental’s auction rate securities, which had a par value of $135 million, were variable-rate debt instruments with contractual
maturities generally greater than ten years and with interest rates that reset every 7, 28 or 35 days, depending on the terms of the particular instrument. These
securities are backed by pools of student loans guaranteed by state-designated guaranty agencies and reinsured by the U.S. government. All of the auction rate
securities that Continental holds are senior obligations under the applicable indentures authorizing the issuance of the securities.
As of December 31, 2012, United’s EETC securities had unrealized gains of $2 million. All changes in the fair value of these investments have been
classified within accumulated other comprehensive income.
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