United Airlines 2008 Annual Report Download - page 108

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employee group received a deemed claim amount based upon a portion of the value of cost savings provided by that group
through reductions to pay and benefits as well as through certain work rule changes. The total value of this deemed claim
was approximately $7.4 billion. As of December 31, 2005, the Company recorded a non-cash reorganization charge of $6.5
billion for the deemed claim amount for all union-represented employees. The remaining $0.9 billion associated with
non-represented salaried and management employees was recorded as a reorganization charge in January 2006, upon
confirmation of the Plan of Reorganization.
(e) Contract rejection charges are non-cash costs that include estimated claim values resulting from the Company’s rejection or
negotiated modification of certain contractual obligations such as executory contracts, unexpired leases and regional carrier
contracts.
(5) Common Stockholders’ Equity and Preferred Securities
As a result of the Plan of Reorganization becoming effective on February 1, 2006, the
then-outstanding equity securities as well as the shares held in treasury of Predecessor UAL were
canceled. New UAL common stock began trading on the NASDAQ market on February 2, 2006 under
the symbol “UAUA.” In accordance with the Plan of Reorganization, UAL established the equity
structure in the table below upon emergence and, on February 2, 2006, began distributing portions of
the shares of new common stock to certain general unsecured creditors and employees and certain
management employees and non-employee directors.
Party of Interest
Shares of
UAL
Common Stock
General unsecured creditors and employees.............................. 115,000,000
Management equity incentive plan (“MEIP”) ............................ 9,825,000
Director equity incentive plan (“DEIP”) ................................ 175,000
125,000,000
Changes in the number of shares of UAL common stock outstanding during the years ended
December 31, 2008 and 2007, the eleven month period ended December 31, 2006 and the one month
period ended January 31, 2006 were as follows:
UAL 2008 2007
Period from
February 1
to
December 31,
2006
Period from
January 1
to
January 31,
2006
Year Ended
December 31,
Successor Predecessor
Shares outstanding at beginning of period . . . 116,921,049 112,280,629 116,220,959 116,220,959
Cancellation of Predecessor UAL stock . . . — — (116,220,959) —
Issuance of UAL stock under equity
offering.......................... 11,208,438 — — —
Issuance of UAL stock upon conversion of
preferred stock .................... 11,145,812 — — —
Issuance of UAL stock to creditors ...... 765,780 3,849,389 108,347,814 —
Issuance of UAL stock to employees ..... 418,664 1,155,582 4,240,526 —
Issuance of UAL stock to directors ...... — — 100,000 —
Forfeiture of non-vested UAL stock ...... (110,926) (104,733) (270,934) —
Shares acquired for treasury ............ (310,889) (259,818) (136,777) —
Shares outstanding at end of period........ 140,037,928 116,921,049 112,280,629 116,220,959
Treasury shares at beginning of period...... 396,595 136,777 — —
Shares acquired for treasury ............ 310,889 259,818 136,777 —
Treasury shares at end of period .......... 707,484 396,595 136,777 —
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