XML 97 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Investments And Fair Value Measurements
 12 Months Ended
Dec. 31, 2011
Investments And Fair Value Measurements [Abstract]  
Investments And Fair Value Measurements

4.       Investments and Fair Value Measurements

Short-term investments consisted of (in millions):

 

     December 31,  
     2011      2010  

Overnight investments, time deposits and Repurchase agreements

    $         131       $         844   

Corporate and bank notes

      1,808         2,685   

U. S. government agency mortgages

      502         605   

U.S. government agency notes

      -         -   

Commingled funds

      1,274         190   

Other

      3         4   
  

 

 

     

 

 

  
   $ 3,718       $ 4,328   
  

 

 

     

 

 

  

Short-term investments at December 31, 2011, by contractual maturity included (in millions):

 

Due in one year or less

    $          2,904   

Due between one year and three years

      312   

Due after three years

      502   
  

 

 

  
   $ 3,718   
  

 

 

  

All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are reflected as a component of Accumulated other comprehensive income (loss).

The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company's short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. The Company's fuel derivative contracts, which consist of commodity collars and calls, are valued using energy and commodity market data which is derived by combining raw inputs with quantitative models and processes to generate forward curves and volatilities. No changes in valuation techniques or inputs occurred during the year ended December 31, 2011.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

 

(in millions)    Fair Value Measurements as of December 31, 2011  
Description    Total      Level 1      Level 2      Level 3  

Short-term investments 1, 2

           

Money market funds

    $       1,278       $       1,278       $       -       $       -   

Government agency investments

      502         -         502         -   

Repurchase agreements

      128         -         128         -   

Corporate obligations

      1,102         -         1,102         -   

Bank notes / Certificates of deposit / Time deposits

      708         -         708         -   
  

 

 

     

 

 

     

 

 

     

 

 

  
     3,718         1,278         2,440         -   

Restricted cash and short-term investments 1

     738         738         -         -   

Fuel derivative contracts, net 1

     95         -         95         -   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 4,551       $ 2,016       $ 2,535       $ -   

1 Unrealized gains or losses on short-term investments, restricted cash and short-term investments and derivatives qualifying for hedge accounting are recorded in Accumulated other comprehensive income (loss) at each measurement date.

2 The Company's short-term investments mature in one year or less except for $87 million of Bank notes/Certificates of deposit/Time deposits, $502 million of U.S. Government agency investments and $225 million of Corporate obligations which have maturity dates exceeding one year.

 

Nosignificant transfers between Level 1 and Level 2 occurred during the year ended December 31, 2011. The Company's policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period.

As of December 31, 2011, the Company had no exposure to European sovereign debt.