ASSETS CONSTRUCTED FOR OTHERS (TERMINAL 6 AT LAX)

12 Months Ended

Dec. 31, 2012

Leases [Abstract]

ASSETS CONSTRUCTED FOR OTHERS (TERMINAL 6 AT LAX)

ASSETS CONSTRUCTED FOR OTHERS (TERMINAL 6 AT LAX)

In March 2012, the Company placed into service assets constructed for others (Terminal 6 at LAX), including a new baggage

system, additional gates, new common use systems, expansion of security screening checkpoints, and a new ticket lobby, all of

which were constructed for the City of Los Angeles and Los Angeles World Airports (LAWA). Additionally, the Company

placed into service proprietary renovations in the ticketing lobby and at the new gates included in Terminal 6. During the fourth quarter of 2012, the Company was reimbursed for substantially all of the non-proprietary renovations.

For accounting and financial reporting purposes, the Company is considered to be the owners of the assets constructed for others and did not qualify for sale and leaseback accounting when the non-proprietary assets were transferred to the City of Los Angeles due to the Company's continuing involvement with the project. As a result, all of the costs incurred to fund the project are included in "Other property and equipment" and all amounts that have been and will be reimbursed will be in "Other liabilities" on the balance sheet. These assets and liabilities were as follows as of December 31 (in millions):

	2012		2011
Proprietary assets of T6 at LAX	$	17	$	9
Assets constructed for others (T6 at LAX)	199		143
Other property and equipment	216		152
Reimbursement for assets constructed	187		12
Deferred interest income	14		6
Other liabilities	$	201	$	18

The assets will be depreciated over the life of the lease based on the straight-line method, while the liability will amortize on the effective interest method based on the lease rental payments. Because the Company will only operate a small portion of the gates in the new terminal, the asset and liability will depreciate and amortize to an estimated fair value at the end of the lease term, at which time we may terminate the lease of the assets and derecognize our obligation or we may extend our lease term.

Future minimum payments related to the Terminal 6 lease are included in facility leases described in the "Commitments and Contingencies" note.