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Debt (Tables)
 12 Months Ended
Dec. 31, 2017
Debt

(In millions)

    At December 31,  
     2017      2016  

Secured

      
Notes payable, fixed interest rates of 2.88% to 9.52% (weighted average rate of 4.39% as of December 31, 2017), payable through 2028     $ 8,661        $ 7,586   
Notes payable, floating interest rates of the London interbank offered rate (“LIBOR”) plus 0.2% to 2.25%, payable through 2028      1,880         1,546   
Term loan, LIBOR plus 2.00%, or alternative rate based on certain market rates plus 1.00%, due 2024      1,489         —   
Term loan, LIBOR subject to a 0.75% floor, plus 2.50%, or alternative rate based on certain market rates plus 1.50%, due 2019      —         866   
Term loan, LIBOR subject to a 0.75% floor, plus 2.75%, or alternative rate based on certain market rates plus 1.75%, due 2021      —         192   
Unsecured      
6.375% Senior Notes due 2018 (a)      300         300   
6% Senior Notes due 2020 (a)      300         300   
4.25% Senior Notes due 2022 (a)      400         —   
5% Senior Notes due 2024 (a)      300         —   
Other      101         101   
  

 

 

     

 

 

  
      13,431          10,891   
  

 

 

     

 

 

  

Less: unamortized debt discount, premiums and debt issuance costs

      (163)        (124)  

Less: current portion of long-term debt

      (1,565)        (849)  
  

 

 

     

 

 

  
Long-term debt, net     $     11,703        $     9,918   
  

 

 

     

 

 

  

 

(a) UAL is the issuer of this debt. United is a guarantor.
Contractual Principal Payments

The table below presents the Company’s contractual principal payments (not including debt discount or debt issuance costs) at December 31, 2017 under then-outstanding long-term debt agreements in each of the next five calendar years (in millions):

 

2018

     $ 1,565   

2019

      1,165   

2020

      1,170   

2021

      1,157   

2022

      1,492   

After 2022

      6,882   
  

 

 

  
    $     13,431   
  

 

 

  
Details of Pass Through Trusts

Certain details of the pass-through trusts with proceeds received from issuance of debt in 2017 are as follows (in millions, except stated interest rate):

 

EETC Date

   Class   Principal     Final expected
distribution
date		   Stated
interest
rate		     Total debt
recorded
 as of December 31, 
2017		     Proceeds
received from
issuance of
debt during
2017		     Remaining
proceeds from
issuance of debt
to be received
in future
periods		  

February 2018

   AA    $ 677      March 2030     3.50%      $ —       $ —       $ 677   

February 2018

   A     258      March 2030     3.70%       —        —        258   

November 2017

   B     258      January 2026     3.65%       258        258        —   

November 2017

   B     236      October 2025     3.65%       236        236        —   

September 2016

   AA     637      October 2028     2.875%       637        557        —   

September 2016

   A     283      October 2028     3.10%       283        247        —   

June 2016

   AA     729      July 2028     3.10%       729        319        —   

June 2016

   A     324      July 2028     3.45%       324        142        —   
   

 

 

        

 

 

    

 

 

    

 

 

  
     $ 3,402           $ 2,467       $ 1,759       $ 935   
   

 

 

        

 

 

    

 

 

    

 

 

  
Summary of Collateral Covenants and Cross Default Provisions

The collateral, covenants and cross default provisions of the Company’s principal debt instruments that contain such provisions are summarized in the table below:

 

Debt Instrument   Collateral, Covenants and Cross Default Provisions

Various equipment notes and other notes payable

   Secured by certain aircraft. The indentures contain events of default that are customary for aircraft financing, including in certain cases cross default to other related aircraft.

Credit Agreement

  

Secured by certain of United’s international route authorities, specified take-off and landing slots at certain airports and certain other assets.

 

The 2017 Credit Agreement requires the Company to maintain at least $2.0 billion of unrestricted liquidity at all times, which includes unrestricted cash, short-term investments and any undrawn amounts under any revolving credit facility, and to maintain a minimum ratio of appraised value of collateral to the outstanding obligations under the 2017 Credit Agreement of 1.6 to 1.0 at all times. The 2017 Credit Agreement contains covenants that, among other things, restrict the ability of UAL and its restricted subsidiaries (as defined in the 2017 Credit Agreement) to incur additional indebtedness and to pay dividends on or repurchase stock, although the Company currently has ample ability under these restrictions to repurchase stock under the Company’s share repurchase program.

 

The 2017 Credit Agreement contains events of default customary for this type of financing, including a cross default and cross acceleration provision to certain other material indebtedness of the Company.

6.375% Senior Notes due 2018

 

6% Senior Notes due 2020

 

4.25% Senior Notes due 2022

 

5% Senior Notes due 2024

   The indentures for these notes contain covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries (as defined in the indentures) to incur additional indebtedness and pay dividends on or repurchase stock, although the Company currently has ample ability under these restrictions to repurchase stock under the Company’s share repurchase program.