United Airlines 2009 Annual Report Download - page 96

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Table of Contents
The following is a discussion of expenses associated with implementing the Company’s plans. In addition, see Note 3, “Asset Impairments and Intangible
Assets,” for a discussion of the impairment charges recorded during the years ended December 31, 2009 and 2008. The tables below summarize the accrual
activity and expense related to the Company’s implementation of its operational plans.
(In millions)
Severance Leased Aircraft
Reserve Activity 2009 2008 2009 2008
Balance at December 31, 2008 $ 81 $ — $ 16 $ —
Accruals 33 106 87 20
Payments (69) (25) (20) (4)
Balance at December 31, 2009 $ 45 $ 81 $ 83 $ 16
Expense recognized $ 33 $ 106 $ 96 $ 24
All of these charges are within the Mainline segment where the fleet reductions occurred. Severance expense and leased aircraft expense are classified
within “Salaries and related costs” and “Other impairments and special items,” respectively, in the Company’s Financial Statements. The total expected future
payments for leased aircraft that were removed from service at December 31, 2009 are $89 million, payable through 2013. Actual lease payments may be less if
the Company is able to negotiate early termination of any of its leases.
The following table provides additional information regarding UAL and United aircraft including the impacts of the fleet reductions discussed above.
B737s (Mainline)
All Other Mainline Total
Mainline
Regional
Affiliates
Total
Owned Leased Total
Owned Leased Total
Operating:
Aircraft at December 31, 2008 18 28 46 191 172 363 409 280 689
Added (removed) from operating fleet (18) (28) (46) (2) (1) (3) (49) 12 (37)
Converted from owned to leased (a) — — — (19) 19 — — — —
Converted from leased to owned (b) — — — 1 (1) — — — —
Aircraft at December 31, 2009 — — — 171 189 360 360 292 652
Nonoperating at December 31, 2008 24 12 36 3 — 3 39 — 39
Removed from operating fleet in 2009 18 28 46 2 1 3 49 — 49
Sold/returned to lessor during 2009 — (12) (12) — (1) (1) (13) — (13)
Nonoperating at December 31, 2009 42 28 70 5 — 5 75 — 75
(a) During 2009, the Company sold 19 aircraft and leased them back. See Note 14, “Lease Obligations,” for additional information related to these
sale-leaseback transactions.
(b) During 2009, the Company acquired one aircraft under existing lease terms.
92