United Airlines 2011 Annual Report Download - page 150

Table of Contents
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Supplemental disclosures of cash flow information and non-cash investing and financing activities for the years ended December 31, are as follows (in
millions):
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Cash paid during the period for:
Interest (net of amounts capitalized) $855 $495 $360
Income taxes 10 2 —
Non-cash transactions:
Property and equipment acquired through issuance of debt $130 $ — $130
8% Contingent Senior Unsecured Notes, net of discount 88 88 —
Interest paid in kind on UAL 6% Senior Notes 37 37 —
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Cash paid (refunded) during the period for:
Interest (net of amounts capitalized) $600 $ 489 $111 $210
Income taxes (16) (16) — 1
Non-cash transactions:
Redemption of Continental’s 5% Convertible Notes with UAL common stock $175 $ — $175 $ —
Property and equipment acquired through issuance of debt and capital leases 98 — 98 465
Restricted cash collateral returned on derivative contracts (45) (45) — —
Interest paid in kind on UAL 6% Senior Notes 35 35 — —
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Cash paid (refunded) during the period for:
Interest (net of amounts capitalized) $411 $411 $ 326
Income taxes (11) (11) 1
Non-cash transactions:
Property and equipment acquired through issuance of debt and capital leases $183 $183 $402
Capital lease assets and obligations recorded due to lease amendment 250 250 —
Restricted cash received as collateral on derivative contracts 49 49 —
Interest paid in kind on UAL 6% Senior Notes 33 33 —
Current operating payables reclassified to long-term debt due to supplier agreement 49 49 —
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United and Continental each had significant contracts to sell frequent flyer miles to Chase through their separate co-branded agreements. As a result of the
2011 contract modification of these co-brand agreements, Continental’s pre-purchased credit and debit card miles liabilities that had been accounted for as
long-term debt were reclassified to advanced purchase of miles as the terms related to the miles have been changed such that the pre-purchased miles no longer
meet the definition of debt. As a result, in 2011 Continental’s long-term debt decreased $210 million, advanced purchase of miles increased $270 million and
other assets increased $60 million.
In July 2011, UAL sold an additional $165 million of pre-purchased miles to Chase. Continental rolled the remaining balance of the pre-paid miles under its
previously existing co-branded agreement into the Co-Brand Agreement when it terminated its debit card co-brand agreement with Chase. UAL has the right,
but is not
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