United Airlines 2008 Annual Report Download - page 143
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charges, as well as $8 million of losses on the sale of assets and $7 million of lease termination
and other charges.
• During the fourth quarter, the Company recorded $107 million of impairment charges, $18 million
of severance, $53 million of employee benefit charges, $34 million of accelerated depreciation
related to aircraft groundings and $18 million of lease termination and other special charges. In
addition, an $11 million net gain on asset sales partially offset these unfavorable expenses.
2007
• The first and third quarters include $22 million and $8 million, respectively, of favorable
adjustments to operating income for the SFO and LAX municipal bonds.
• The third quarter was impacted by a special operating revenue credit of $45 million and a special
operating expense credit of $14 million for changes in estimates for certain liabilities relating to
bankruptcy administrative claims.
• The fourth quarter includes a gain of $41 million from the sale of ARINC.
• The Company’s change in the expiration period for unused frequent flyer miles increased
revenues by approximately $28 million, $47 million, $50 million and $121 million in each quarter
of 2007, respectively.
See Note 4, “Voluntary Reorganization Under Chapter 11” and Note 19, “Special Items,” for
further discussion of these items.
(23) Subsequent Events
2009 Financing Initiatives
In January 2009, the Company completed a $95 million sale-leaseback agreement for nine aircraft.
The Company expects this transaction to be treated as a capital lease.
In January 2009, the Company generated net proceeds of $62 million from the issuance of
4.0 million shares and settlement of unsettled trades at December 31, 2008 under its $200 million
common stock distribution agreement. After issuance of these shares, the Company had issued shares
for gross proceeds of $172 million of the $200 million available under this stock offering, leaving
$28 million available for future issuance under this program, as further discussed in Note 5, “Common
Stockholders’ Equity and Preferred Securities.”
In January 2009, the Company entered into an amendment to its Chicago O’Hare International
Airport cargo building site lease with the City of Chicago. The Company agreed to vacate its current
cargo facility at O’Hare to allow the land to be used for the development of a future runway. In January
2009, the Company received approximately $160 million from O’Hare in accordance with the lease
amendment. In addition, the lease amendment requires that the City of Chicago provide the Company
with another site at O’Hare upon which a replacement cargo facility could be constructed.
United’s card processing agreement with American Express expired on February 28, 2009 and was
replaced by a new agreement on March 1, 2009 as discussed in Note 12, “Debt Obligations and Card
Processing Agreements.”
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