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INCOME TAXES (TABLES)

12 Months Ended

Dec. 31, 2012

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

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



	2012			2011
Excess of tax over book depreciation	$	842		$	795
Other—net	19			17
Gross deferred tax liabilities	861			812

Mileage Plan	(265		)	(242		)
AMT and other tax credits	(1		)	(53		)
Inventory obsolescence	(15		)	(13		)
Deferred gains	(13		)	(14		)
Employee benefits	(230		)	(218		)
Loss carryforwards	—			(13		)
Fuel hedge contracts	(18		)	(3		)
Other—net	(21		)	(27		)
Gross deferred tax assets	(563		)	(583		)
Net deferred tax liabilities	298			229

Current deferred tax asset	(148		)	(134		)
Noncurrent deferred tax liability	446			363
Net deferred tax liability	$	298		$	229

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

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



	2012		2011		2010
Current tax expense (benefit):
Federal	$	83	—		$	7
State	11		4		3
Total current	94		4		10

Deferred tax expense:
Federal	94		135		132
State	10		10		13
Total deferred	104		145		145
Total tax expense related to income	$	198	$	149	$	155

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):



	2012			2011			2010
Income before income tax	$	514		$	394		$	406

Expected tax expense	180			138			142
Nondeductible expenses	3			1			2
State income taxes	14			10			11
Other—net	1			—			—
Actual tax expense	$	198		$	149		$	155

Effective tax rate	38.5		%	37.9		%	38.1		%

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 2011
Alaska	2009 to 2011
California	2008 to 2011
Oregon	2002 to 2011

- 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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