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INCOME TAXES (TABLES)

12 Months Ended

Dec. 31, 2013

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

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



	2013			2012
Excess of tax over book depreciation	$	919		$	842
Other—net	21			19
Gross deferred tax liabilities	940			861

Mileage Plan	(185		)	(265		)
AMT and other tax credits	—			(1		)
Inventory obsolescence	(18		)	(15		)
Deferred gains	(12		)	(13		)
Employee benefits	(85		)	(230		)
Fuel hedge contracts	(14		)	(18		)
Other—net	(30		)	(21		)
Gross deferred tax assets	(344		)	(563		)
Net deferred tax liabilities	596			298

Current deferred tax asset	(113		)	(148		)
Noncurrent deferred tax liability	709			446
Net deferred tax liability	$	596		$	298

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

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



	2013		2012		2011
Current tax expense (benefit):
Federal	$	145	83		$	—
State	17		11		4
Total current	162		94		4

Deferred tax expense:
Federal	131		94		135
State	15		10		10
Total deferred	146		104		145
Total tax expense related to income	$	308	$	198	$	149

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):



	2013			2012			2011
Income before income tax	$	816		$	514		$	394

Expected tax expense	286			180			138
Nondeductible expenses	4			3			1
State income taxes	21			14			10
Other—net	(3		)	1			—
Actual tax expense	$	308		$	198		$	149

Effective tax rate	37.7		%	38.5		%	37.9		%

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	2010 to 2012
Alaska	2010 to 2012
California	2009 to 2012
Oregon	2002 to 2012

- 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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