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Investments and Fair Value Measurements
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Investments and Fair Value Measurements INVESTMENTS AND FAIR VALUE MEASUREMENTS
Fair Value Information. Accounting standards require us to use valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are described in Note 7 of this report. The table below presents disclosures about the fair value of financial assets and liabilities measured at fair value on a recurring basis in the Company's financial statements as of December 31 (in millions):
20202019
TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Cash and cash equivalents$11,269 $11,269 $— $— $2,762 $2,762 $— $— 
Restricted cash - current (Note 1)255 255 — — — — — — 
Restricted cash - non-current (Note 1)218 218 — — 106 106 — — 
Short-term investments:
Corporate debt330 — 330 — 1,045 — 1,045 — 
Asset-backed securities51 — 51 — 690 — 690 — 
U.S. government and agency notes33 — 33 — 124 — 124 — 
Certificates of deposit placed through an account registry service — — — — 35 — 35 — 
Other fixed-income securities— — — — 95 — 95 — 
Other investments measured at NAV— — — — 193 — — — 
Long-term investments:
Equity securities205 205 — — 385 385 — — 
AVH Derivative Assets— — — — 24 — — 24 
Other assets36 — — 36 — — — — 
Short-term investments - The short-term investments shown in the table above are classified as available-for-sale, with the exception of investments measured at NAV. As of December 31, 2020, corporate debt securities have remaining maturities of approximately two years or less, asset-backed securities have remaining maturities of less than one year to approximately 14 years, and U.S. government and agency notes have maturities of less than one year.
Equity securities - Equity securities represent United's investment in Azul, consisting of approximately 8% of Azul's outstanding preferred shares (representing approximately 2% of the total capital stock of Azul). The Company recorded $180 million in losses and $136 million in gains, respectively, for the years ended December 31, 2020 and 2019 for changes to the fair market value of its equity investment in Azul in Unrealized gains (losses) on investments, net in the Company's statements of consolidated operations. The carrying value of our investment in Azul was $205 million at December 31, 2020.
AVH Derivative Assets - As part of the BRW Term Loan Agreement and related agreements with Kingsland, United obtained AVH share call options and AVH share appreciation rights and entered into an AVH share-based upside sharing agreement (collectively, the "AVH Derivative Assets"). The AVH Derivative Assets are recorded at fair value as Other assets on the Company's balance sheet and are included in the table above. The Company recorded $24 million in losses and $13 million in
gains, respectively, for the years ended December 31, 2020 and 2019 for changes in the fair value of the AVH Derivative Assets in Unrealized gains (losses) on investments, net in the Company's statements of consolidated operations.
Other assets - The other assets represent warrants provided to United for the purchase of membership units (Class B Units) in Alclear Holdings, LLC ("CLEAR"). The Company records these warrants at fair value.
Investments presented in the table above have the same fair value as their carrying value.
Other fair value information - The table below presents the carrying values and estimated fair values of financial instruments not presented in the tables above as of December 31 (in millions). Carrying amounts include any related discounts, premiums and issuance costs:
20202019
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Long-term debt$26,747 $27,441 $— $21,985 $5,456 $14,552 $15,203 $— $11,398 $3,805 
Fair value of the financial instruments included in the tables above was determined as follows:
DescriptionFair Value Methodology
Cash and cash equivalentsThe carrying amounts approximate fair value because of the short-term maturity of these assets.
Short-term investments, other than Other investments measured at NAV,
Equity securities and
Restricted cash (current and non-current)		Fair value is based on (a) the trading prices of the investment or similar instruments, (b) an income approach, which uses valuation techniques to convert future amounts into a single present amount based on current market expectations about those future amounts when observable trading prices are not available, or (c) broker quotes obtained by third-party valuation services.
Other investments measured at NAVIn accordance with the relevant accounting standards, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The investments measured using NAV are shares of mutual funds that invest in fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. The Company can redeem its shares at any time at NAV subject to a three-day settlement period.
AVH Derivative AssetsFair values are calculated using a Monte Carlo simulation approach. Unobservable inputs include expected volatility, expected dividend yield and control and acquisition premiums.
Other assetsFair value is determined utilizing the Black-Scholes options pricing model.
Long-term debt Fair values were based on either market prices or the discounted amount of future cash flows using our current incremental rate of borrowing for similar liabilities or assets.
Investments in Regional Carriers. United holds investments in several regional carriers that fly for the Company as United Express under its CPAs. The combined carrying value of the investments was approximately $139 million as of December 31, 2020. United accounts for each investment using the equity method. Each investment and United's ownership stake are listed below.
•Republic Airways Holdings Inc. ("Republic"). United holds a 19% minority interest in Republic. Republic is the parent company of Republic Airways Inc. Republic currently operates 66 regional aircraft under a CPA that has terms through 2029.
•ManaAir, LLC ("ManaAir"). United holds a 49.9% minority ownership stake in ManaAir. ManaAir is the parent company of ExpressJet Airlines LLC ("ExpressJet"). The Company terminated its CPA with ExpressJet. ExpressJet flew its last commercial flight, on behalf of United, on September 30, 2020.
•Champlain Enterprises, LLC ("Champlain"). United owns a 40% minority ownership stake in Champlain. Champlain does business as CommutAir ("CommutAir"). As of December 31, 2020, CommutAir operated 49 regional aircraft and is expected to operate additional ERJ 145 regional jets that were formerly part of the ExpressJet fleet.
Other Investments. United holds other investments that are recorded at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. As of December 31, 2020, United held these major investments:
•Fulcrum BioEnergy, Inc. ("Fulcrum"). United owns approximately 7% of the preferred shares (representing approximately 6% of the total capital stock) of Fulcrum, a company that is developing a process for transforming municipal solid waste into transportation fuels, including jet fuel and diesel. As of December 31, 2020, the carrying value of United's investment was $51 million.
•CLEAR. United owns less than 1% of the Class B Units of CLEAR, a technology-enabled experience company that owns and operates a secure identity platform. Using biometrics, CLEAR enables touchless identification at airport checkpoints and other venues. As of December 31, 2020, the carrying value of United's investment was approximately $9 million.