United Airlines 2009 Annual Report Download - page 43
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Table of Contents
(a) These significant items affecting the Company’s results of operations are discussed in Results of Operations, below.
(b) Regional Affiliates’ fuel expense is classified as part of Regional Affiliates expense in the Company’s Financial Statements.
(c) As described in Results of Operations below, asset impairment charges were recorded as a result of interim testing performed in 2009 and 2008.
(d) Includes non-cash interest expense of $55 million, $48 million and $43 million in 2009, 2008 and 2007, respectively, related to accounting for convertible
debt instruments that may be settled in cash upon conversion. See Note 1(p), “Summary of Significant Accounting Policies—New Accounting
Pronouncements,” in the Footnotes for additional information. Also includes equity in earnings of affiliates.
UAL recorded the following impairment and other charges, as further discussed below, during the year ended December 31, 2009 and 2008:
Year Ended December 31,
(In millions) 2009 2008 Income statement classification
Goodwill impairment $ — $ 2,277 Goodwill impairment
Intangible asset impairments 150 64
Aircraft and related deposit impairments 93 250
Total other impairments 243 314
LAX municipal bond litigation 27 —
Lease termination and other charges 104 25
Total other impairments and special items 374 339 Other impairments and special items
Severance 33 106 Salaries and related costs
Employee benefit obligation adjustment (35) 57 Salaries and related costs
Litigation-related settlement gain — (29) Other operating expenses
Charges related to terminated/deferred projects — 26 Purchased services
Net gain on asset sales (11) (3) Other operating expenses
Accelerated depreciation from early asset retirements 48 34 Depreciation and amortization
Total other charges 35 191
Total of impairments, special items and other charges 409 2,807
Operating non-cash fuel hedge (gain) loss (586) 568 Aircraft fuel
Nonoperating non-cash fuel hedge (gain) loss (279) 279 Miscellaneous, net
Tax benefit on intangible asset impairments and asset sales (21) (31) Income tax benefit
Total impairments and other charges $ (477) $ 3,623
The income tax benefit in 2009 is related to the impairment and sale of certain indefinite-lived intangible assets, partially offset by the income tax effects
of items recorded in other comprehensive income. The income tax benefit in 2008 is related to the impairment and sale of certain indefinite-lived intangible
assets, partially offset by the impact of an increase in state tax rates.
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