Chapter 11 Reorganization (Tables)

6 Months Ended

Jun. 30, 2012

Schedule Of Liabilities Subject To Compromise

The following table summarizes the components of liabilities subject to compromise included on the Condensed Consolidated Balance Sheet as of June 30, 2012:



(in millions)

Long-term debt	$	2,309
Aircraft lease and facility bond related obligations	2,892
Pension and postretirement benefits	9,488
Accounts payable and other accrued liabilities	479
Other	(20		)
Total liabilities subject to compromise	$	15,148

Schedule of Liabilities Subject to Compromise, Debt [Table Text Block]

Long-term debt, including undersecured debt, classified as subject to compromise as of June 30, 2012 consisted of (in millions):



Secured variable and fixed rate indebtedness due through 2023 (effective rates from 1.00% - 13.00% at June 30, 2012)	1,283
6.00%—8.50% special facility revenue bonds due through 2036	186
6.25% senior convertible notes due 2014	460
9.0%—10.20% debentures due through 2021	214
7.88%—10.55% notes due through 2039	166
	$	2,309

Schedule Of Reorganization Items

The following table summarizes the components included in reorganization items, net on the Consolidated Statements of Operations for the three and six months ended June 30, 2012:



(in millions)
	Three Months Ended ⁽²⁾		Six Months Ended ⁽³⁾
	June 30, 2012
Aircraft financing renegotiations and rejections ⁽¹⁾	$	98	$	1,114
Rejection of facility bond related obligations	60		399
Professional fees	72		117
Total reorganization items, net	$	230	$	1,630

(1)

The Debtors record an estimated claim associated with the rejection of an executory contract or unexpired lease when a motion is filed with the Bankruptcy Court to reject such contract or lease and the Debtors believe that it is probable the motion will be approved and there is sufficient information to estimate the claim. The Debtors record an estimated claim associated with the renegotiation of an executory contract or unexpired lease when the renegotiated terms of such contract or lease are not opposed or are otherwise approved by the Bankruptcy Court and there is sufficient information to estimate the claim.

(2)

Estimated allowed claims from (i) filing motions to modify the leases and revise the economic terms of the financing of certain aircraft and (ii) rejecting facility agreements supporting special facility revenue bonds at Luis Muñoz Marín International Airport in San Juan, Puerto Rico. The modification of leases and financing relating to such aircraft has been approved by the Bankruptcy Court. See above, “Special Protection Applicable to Leases and Secured Financing of Aircraft and Aircraft Equipment,” for further information.

(3)

Estimated allowed claims for the six months ended June 30, 2012 from (i) rejecting 16 leases of seven Boeing 757-200 aircraft, one McDonnell Douglas MD-80 aircraft, and eight spare engines, (ii) relinquishing one Airbus A300-600R aircraft that was subject to a mortgage, (iii) filing motions to reject facility agreements supporting special facility revenue bonds at Dallas/Fort Worth International Airport, Fort Worth Alliance Airport and Luis Muñoz Marín International Airport in San Juan, Puerto Rico, and (iv) filing motions to modify the leases of 168 aircraft, including 39 Super ATR aircraft, nine Boeing 737-800 aircraft, 33 Boeing 757-200 aircraft, 11 Boeing 767-200ER aircraft, 13 Boeing 767-300ER aircraft, and 63 McDonnell Douglas MD-80 aircraft. The rejections of the leases of such aircraft and spare engines and the modification of the leases relating to such aircraft have been approved by the Bankruptcy Court. See above, “Special Protection Applicable to Leases and Secured Financing of Aircraft and Aircraft Equipment,” for further information.