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Special Charges (Credits) and Unrealized (Gains) Losses on Investments | 12 Months Ended
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Dec. 31, 2021
Restructuring and Related Activities [Abstract] |
SPECIAL CHARGES (CHARGES) AND UNREALIZED (GAINS) LOSSES ON INVESTMENTS | SPECIAL CHARGES (CREDITS) AND UNREALIZED (GAINS) LOSSES ON INVESTMENTS Special charges (credits) and unrealized (gains) and losses on investments in the statements of consolidated operations consisted of the following for the years ended December 31 (in millions):
Operating: |  | 2021 |  | 2020 |  | 2019
CARES Act grant |  | $ | (4,021) |  |  | $ | (3,536) |  |  | $ | — |
Severance and benefit costs |  | 438 |  |  | 575 |  | 16 |
Impairment of assets |  | 97 |  |  | 318 |  |  | 171 |
(Gains) losses on sale of assets and other special charges |  | 119 |  |  | 27 |  |  | 59 |
Total operating special charges (credits) |  | (3,367) |  |  | (2,616) |  |  | 246 |
Nonoperating unrealized (gains) losses on investments, net |  | 34 |  |  | 194 |  |  | (153) |
Nonoperating debt extinguishment and modification fees |  | 50 |  |  | — |  |  | — |
Nonoperating special termination benefits and settlement losses |  | 31 |  |  | 687 |  |  | — |
Nonoperating credit loss on BRW Term Loan and related guarantee |  | — |  |  | 697 |  |  | — |
Total nonoperating special charges and unrealized (gains) losses on investments, net |  | 115 |  |  | 1,578 |  |  | (153) |
Total operating and nonoperating special charges (credits) and unrealized (gains) losses on investments, net |  | (3,252) |  |  | (1,038) |  |  | 93 |
Income tax expense (benefit), net of valuation allowance |  | 728 |  |  | 404 |  |  | (21) |
Total operating and nonoperating special charges (credits) and unrealized (gains) losses on investments, net of income taxes |  | $ | (2,524) |  |  | $ | (634) |  |  | $ | 72 |
2021 CARES Act grant. During 2021, the Company received approximately $5.8 billion in funding pursuant to the PSP2 Agreement and the PSP3 Agreement, which included an approximately $1.7 billion unsecured loan. The Company recorded $4.0 billion as grant income in Special charges (credits). The Company also recorded $99 million for the PSP2 Warrants and PSP3 Warrants issued to Treasury as part of the PSP2 Agreement and PSP3 Agreement, within stockholders' equity, as an offset to the grant income. Severance and benefit costs. During 2021, the Company recorded $438 million of charges related to pay continuation and benefits-related costs provided to employees who chose to voluntarily separate from the Company. The Company offered, based on employee group, age and completed years of service, pay continuation, health care coverage, and travel benefits. Approximately 4,500 employees elected to voluntarily separate from the Company. Impairment of assets. During 2021, the Company recorded the following impairment charges: •$61 million, primarily comprised of impairment charges for 13 Airbus A319 aircraft and 13 Boeing 737-700 airframes as a result of current market conditions for used aircraft, along with charges for cancelled induction projects related to these aircraft. These aircraft are all considered held for sale and classified as part of other assets. •$36 million of impairments related to 64 Embraer EMB 145LR aircraft and related spare engines that United retired from its regional fleet. The decision to retire these aircraft was triggered by the United Next aircraft order. Almost all of these aircraft are classified as held for sale. (Gains) losses on sale of assets and other special charges. During 2021, the Company recorded net charges of $119 million primarily related to a one-time bonus paid to employees for their continued efforts during the COVID-19 pandemic, incentives for its employees to receive a COVID-19 vaccination and the termination of the lease associated with three floors of its headquarters at the Willis Tower in Chicago, partially offset by gains primarily related to the sale of its former headquarters in suburban Chicago, aircraft sale-leaseback transactions and aircraft component manufacturer credits. Nonoperating unrealized (gains) losses on investments, net. During 2021, the Company recorded losses of $34 million primarily for the change in the market value of its investments in equity securities. Nonoperating debt extinguishment and modification fees. During 2021, the Company recorded $50 million of charges for fees and discounts related to the entry into the 2021 Loan Facilities and the prepayment of the 2017 Loan Facilities. Nonoperating special termination benefits and settlement losses. During 2021, as part of the first quarter Voluntary Programs, the Company recorded $31 million of special termination benefits in the form of additional subsidies for retiree medical costs for certain U.S.-based front-line employees. The subsidies were in the form of a one-time contribution to a notional Retiree Health Account of $125,000 for full-time employees and $75,000 for part-time employees. See Note 7 of this report for additional information. 2020 CARES Act grant. During 2020, the Company received approximately $5.1 billion in funding pursuant to the Payroll Support Program under the CARES Act, which consisted of a $3.6 billion grant and a $1.5 billion unsecured loan. The Company recorded $3.5 billion as grant income in Special charges (credits). The Company also recorded $66 million for warrants issued to Treasury, within stockholders' equity, as an offset to the grant income. Severance and benefit costs. During 2020, the Company recorded $575 million related to its workforce reduction and voluntary plans for employee severance, pay continuance from voluntary retirements and benefits-related costs. Impairment of assets. During 2020, the Company recorded the following impairment charges: • $130 million for its China routes which were primarily caused by the COVID-19 pandemic, the Company's subsequent suspension of flights to China and a further delay in the expected return of full capacity to the China markets. • $94 million related to 11 permanently-grounded Boeing 757-200 aircraft and the related engines and spare parts. • $38 million related to the right-of-use asset associated with the embedded aircraft lease in one of the Company's CPAs. This impairment was primarily due to the impact to cash flows from the pandemic and the relatively short remaining term under the CPA. • $56 million related to various cancelled facility, aircraft induction and information technology capital projects. The decisions driving these impairments were the result of the COVID-19 pandemic's impact on the Company's operations. (Gains) losses on sale of assets and other special charges. During 2020, the Company recorded losses on certain asset sales and charges for legal reserves, partially offset by gains on aircraft sale-leaseback transactions. Nonoperating unrealized gains (losses) on investments, net. During 2020, the Company recorded losses of $194 million primarily for changes in the fair value of its investments in equity securities. Nonoperating special termination benefits and settlement losses. During 2020, the Company recorded $687 million of settlement losses related to the Company's primary defined benefit pension plan covering certain U.S. non-pilot employees, and special termination benefits offered, under Voluntary Programs. See Note 7 of this report for additional information. Nonoperating credit loss on BRW Term Loan and related guarantee. During 2020, the Company recorded a $697 million expected credit loss allowance for the BRW Term Loan and related guarantee. See Note 8 of this report for additional information. 2019 Severance and benefit costs. During 2019, the Company recorded $14 million of management severance and $2 million of severance and benefit costs related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters. Impairment of assets. During 2019, the Company recorded a $90 million impairment charge associated with its Hong Kong routes. The Company determined the fair value of the Hong Kong routes using a variation of the income approach known as the excess earnings method, which discounts an asset's projected future net cash flows to determine the current fair value. Also during 2019, the Company recorded a $43 million impairment primarily for surplus Boeing 767 aircraft engines removed from operations, an $18 million charge primarily for the write-off of unexercised aircraft purchase options, and $20 million in other aircraft impairments. (Gains) losses on sale of assets and other special charges. During 2019, the Company recorded charges of $25 million related to contract terminations, $18 million for the settlement of certain legal matters, $14 million for costs related to the transition of fleet types within a regional carrier contract and $2 million of other charges. Nonoperating unrealized gains (losses) on investments, net. During 2019, the Company recorded gains of $153 million primarily for the change in market value of certain of its equity investments.

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- Definition The entire description for costs incurred to effect a business combination that have been expensed during the period. Such costs could include business integration costs, systems integration and conversion costs, and severance and other employee-related costs. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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