United Airlines 2008 Annual Report Download - page 122

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The following table presents United segment information for the years ended December 31, 2008
and 2007, the eleven month period ended December 31, 2006, the one month period ended January 31,
2006:
United 2008 2007
Period from
February 1 to
December 31,
2006
Period from
January 1 to
January 31,
2006
(In millions)
Year Ended
December 31,
Successor Predecessor
Revenue:
Mainline.................................... $17,139 $17,023 $15,183 $ 1,250
United Express............................... 3,098 3,063 2,697 204
Special revenue items.......................... — 45 — —
Total ..................................... $20,237 $20,131 $17,880 $ 1,454
Depreciation and amortization:
Mainline.................................... 932 $ 925 $ 820 $ 68
United Express(a) ............................ 6 9 7 1
Segment earnings (loss) and reconciliation to
Statements of Consolidated Operations:
Mainline.................................. $(2,562) $ 446 $ (76) $ (59)
United Express ............................. (150) 122 101 (24)
Special revenue items (Note 19) ............... — 45 — —
Goodwill impairment ........................ (2,277) — — —
Other impairments and special items (Note 19) . . . (339) 44 36 —
Gain on sale of investment (Note 20) ........... — 41 — —
Reorganization items, net. . . .................. — — — 22,709
Less: Equity earnings in affiliates(b) ............ (6) (5) (3) (5)
Consolidated earnings (loss) before income taxes
and equity earnings in affiliates ............ $(5,334) $ 693 $ 58 $22,621
(a) United Express depreciation expense relates to assets used in United Express operations. This depreciation is included in
Regional affiliates expense in the Company’s Statements of Consolidated Operations.
(b) Equity earnings are part of the mainline segment.
The Company does not allocate interest income or interest expense to the United Express segment
in reports used to evaluate segment performance. Therefore, all amounts classified as interest income
and interest expense in the Statements of Consolidated Operations relate to the mainline segment.
In accordance with SFAS 142, on the Effective Date the Company allocated goodwill upon adoption
of fresh-start reporting in a manner similar to how the amount of goodwill recognized in a business
combination is determined. This required the determination of the fair value of each reporting unit to
calculate an estimated purchase price for such reporting unit. This purchase price was then allocated to
the individual assets and liabilities assumed to be related to that reporting unit. Any excess purchase
price is the amount of goodwill assigned to that reporting unit. To the extent that individual assets and
liabilities could be assigned directly to specific reporting units, those assets and liabilities were so
assigned. As a result of this process, all of the Company’s goodwill has been allocated to the mainline
segment. See Note 3, “Asset Impairments and Intangible Assets,” for further information related to
goodwill.
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