United Airlines 2011 Annual Report Download - page 147

Table of Contents
including (but not limited to) the information currently available, the views of legal counsel, the nature of contingencies to which the Company is subject and
prior experience, that the ultimate disposition of these contingencies will not materially affect the Company’s consolidated financial position or results of
operations.
The Company records liabilities for legal and environmental claims when a loss is probable and reasonably estimable. These amounts are recorded based on
the Company’s assessments of the likelihood of their eventual disposition.
Commitments. The table below summarizes the Company’s commitments as of December 31, 2011, which primarily relate to the acquisition of aircraft and
related spare engines, aircraft improvements and include other commitments primarily to acquire information technology services and assets (in millions):
  
2012 $1,625 $167 $1,458
2013 1,091 79 1,012
2014 1,025 95 930
2015 1,772 373 1,399
2016 1,817 1,137 680
After 2016 5,697 5,697 —
$13,027 $7,548 $5,479
United Aircraft Commitments
As of December 31, 2011, United had firm commitments to purchase 50 new aircraft (25 Boeing 787 aircraft and 25 Airbus A350XWB aircraft) scheduled
for delivery from 2016 through 2019. United also has options to purchase 42 Airbus A319 and A320 aircraft, and purchase rights for 50 Boeing 787 aircraft
and 50 Airbus A350XWB aircraft.
United has secured considerable backstop financing commitments from its aircraft and engine manufacturers, subject to certain customary conditions.
However, United can provide no assurance that backstop financing, or any other financing not already in place, for aircraft and engine deliveries will be
available to United on acceptable terms when necessary or at all.
Continental Aircraft Commitments
As of December 31, 2011, Continental had firm commitments to purchase 82 new aircraft (57 Boeing 737 aircraft and 25 Boeing 787 aircraft) scheduled for
delivery from 2012 through 2016. Continental expects to place into service 19 Boeing 737 aircraft, of which two have been delivered prior to the filing of this
report, and five Boeing 787 aircraft in 2012. Continental also has options to purchase 89 additional Boeing 737 and 787 aircraft.
Continental does not have backstop financing or any other financing currently in place for the Boeing aircraft on order. Financing will be necessary to satisfy
Continental’s capital commitments for its firm order aircraft and other related capital expenditures. Continental can provide no assurance that backstop
financing, or any other financing not already in place, for aircraft and engine deliveries will be available to Continental on acceptable terms when necessary or
at all.
The Company is currently in discussions with Boeing over potential compensation related to delays in the 787 aircraft deliveries. The Company is not able to
estimate the ultimate success, amount of, nature or timing of any potential recoveries from Boeing over such delays.
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