United Airlines 2010 Annual Report Download - page 73

which resulted in a discount rate of 5.2% for pension plans and 4.6% for postretirement plans. Other significant
assumptions include the healthcare cost trend rate, retirement age, and mortality assumptions. These assumptions
are discussed further in Note 9 to the financial statements in Item 8.
The fair value of Continental’s OnePass frequent flyer program liability was determined based on the
weighted average equivalent ticket value of outstanding miles at October 1, 2010 that were expected to be
redeemed. The weighted-average equivalent ticket value reflects differing classes of service, domestic and
international itineraries and the carrier providing the award travel. See the Frequent Flyer Awards critical
accounting policy above for additional information.
Forward-Looking Information
Certain statements throughout Item 7, Management’s Discussion and Analysis of Financial Condition and
Results of Operations, and elsewhere in this report are forward-looking and thus reflect the Company’s current
expectations and beliefs with respect to certain current and future events and financial performance. Such
forward-looking statements are and will be subject to many risks and uncertainties relating to United’s and
Continental’s operations and business environment that may cause actual results to differ materially from any
future results expressed or implied in such forward-looking statements. Words such as “expects,” “will,” “plans,”
“anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook” and similar expressions are intended to
identify forward-looking statements.
Additionally, forward-looking statements include statements which do not relate solely to historical facts,
such as statements which identify uncertainties or trends, discuss the possible future effects of current known
trends or uncertainties or which indicate that the future effects of known trends or uncertainties cannot be
predicted, guaranteed or assured. All forward-looking statements in this report are based upon information
available to the Company on the date of this report. The Company undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new information, future events, changed
circumstances or otherwise, except as required by applicable law.
The Company’s actual results could differ materially from these forward-looking statements due to
numerous factors including, without limitation, the following: its ability to comply with the terms of its various
financing arrangements; the costs and availability of financing; its ability to maintain adequate liquidity; its
ability to execute its operational plans; its ability to control its costs, including realizing benefits from its
resource optimization efforts, cost reduction initiatives and fleet replacement programs; its ability to utilize its
net operating losses; its ability to attract and retain customers; demand for transportation in the markets in which
it operates; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the
impact that global economic conditions have on customer travel patterns; excessive taxation and the inability to
offset future taxable income; general economic conditions (including interest rates, foreign currency exchange
rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity
in relevant markets); its ability to cost-effectively hedge against increases in the price of aircraft fuel; any
potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any
hostilities, act of war or terrorist attack; the ability of other air carriers with whom the Company has alliances or
partnerships to provide the services contemplated by the respective arrangements with such carriers; the costs
and availability of aviation and other insurance; the costs associated with security measures and practices;
industry consolidation or changes in airline alliances; competitive pressures on pricing and on demand; its
capacity decisions and the capacity decisions of its competitors; U.S. or foreign governmental legislation,
regulation and other actions (including open skies agreements); labor costs; its ability to maintain satisfactory
labor relations and the results of the collective bargaining agreement process with its union groups; any
disruptions to operations due to any potential actions by its labor groups; weather conditions; the possibility that
expected merger synergies will not be realized or will not be realized within the expected time period; and other
risks and uncertainties set forth under Item 1A, Risk Factors, of this Form 10-K, as well as other risks and
uncertainties set forth from time to time in the reports the Company files with the SEC. Consequently, forward-
looking statements should not be regarded as representations or warranties by the Company that such matters will
be realized.
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