INCOME TAXES (TABLES)

12 Months Ended

Dec. 31, 2011

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred tax (assets) and liabilities comprise the following at December 31 (in millions):



	2011			2010
Excess of tax over book depreciation	$	795.2		$	660.0
Fuel hedge contracts	—			8.7
Other—net	16.9			16.9
Gross deferred tax liabilities	812.1			685.6

Mileage Plan	(241.9		)	(237.2		)
AMT and other tax credits	(53.1		)	(57.5		)
Inventory obsolescence	(13.4		)	(16.5		)
Deferred gains	(14.1		)	(15.9		)
Employee benefits	(217.6		)	(179.1		)
Loss carryforwards^(a)	(13.0		)	(4.1		)
Fuel hedge contracts	(2.8		)	—
Other—net	(27.5		)	(15.9		)
Gross deferred tax assets	(583.4		)	(526.2		)
Net deferred tax liabilities	$	228.7		$	159.4

Current deferred tax asset	$	(134.2	)	$	(120.5	)
Noncurrent deferred tax liability	362.9			279.9
Net deferred tax liability	$	228.7		$	159.4


^(a)	The Federal loss carryforward of $27.7 million ($9.7 million tax effected) expires in 2031; State loss carryforwards of $59.0 million ($3.3 million tax effected) expire beginning in 2014 and ending in 2031.

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of income tax expense were as follows (in millions):



	2011		2010		2009
Current tax expense (benefit):
Federal	$	—	$	7.4	$	(3.4	)
State	3.5		2.7		(1.3		)
Total current	3.5		10.1		(4.7		)

Deferred tax expense:
Federal	134.9		131.5		76.7
State	10.8		13.2		9.3
Total deferred	145.7		144.7		86.0
Total tax expense related to income	$	149.2	$	154.8	$	81.3

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Income tax expense reconciles to the amount computed by applying the U.S. federal rate of 35% to income before income tax and accounting change as follows (in millions):



	2011			2010			2009
Income before income tax	$	393.7		$	405.9		$	202.9

Expected tax expense	137.8			142.1			71.0
Nondeductible expenses	1.4			1.8			3.1
State income taxes	10.2			10.7			5.5
Other—net	(0.2		)	0.2			1.7
Actual tax expense	$	149.2		$	154.8		$	81.3

Effective tax rate	37.9		%	38.1		%	40.1		%

Summary of Income Tax Contingencies [Table Text Block]

A summary of the Company's jurisdictions and the periods that are subject to examination are as follows:



Jurisdiction	Period
Federal	2009 to 2010
Alaska	2008 to 2010
California	2007 to 2010
Oregon	2002 to 2010

Changes in the liability for unrecognized tax benefits during 2009, 2010 and 2011 are as follows (in millions):



	2011			2010		2009
Balance at January 1,	$	1.5		$	1.3	$	23.7

Additions based on tax positions and settlements related to the prior year	—			—		—
Additions based on tax positions and settlements related to the current year	0.2			0.2		0.1
Reductions for tax positions of prior years	—			—		(22.5		)
Lapse of statute of limitations	(1.1		)	—		—
Balance at December 31,	$	0.6		$	1.5	$	1.3

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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