United Airlines 2011 Annual Report Download - page 99

Table of Contents
potentially resulting in additional liabilities for taxes and interest. The Company’s uncertain tax position reserves are reviewed periodically and are
adjusted as events occur that affect its estimates, such as the availability of new information, the lapsing of applicable statutes of limitation, the
conclusion of tax audits, the measurement of additional estimated liability, the identification of new tax matters, the release of administrative tax
guidance affecting its estimates of tax liabilities, or the rendering of relevant court decisions. See Note 8 for further information related to uncertain
income tax positions.
(r) During 2011, UAL and United corrected the classification of certain expenses associated with non-air redemption of frequent flyer
miles for awards which were previously reported on a net basis in revenue in their 2010 consolidated statements of operations to reclassify them from
passenger revenue to other operating expenses. In addition, UAL, United and Continental Successor changed their classification of 2010 third party
revenue associated with non-air redemptions to reclassify it from passenger revenue to other operating revenue. As a result, these changes decreased
passenger revenue and increased either other operating revenue or other operating expenses by a like amount in each period but had no effect on earnings.
Amounts originally reported in UAL’s 2010 Annual Report on Form 10-K that have been reclassified are shown below (in millions):


 

Passenger—Mainline $16,019 $16,069
Passenger—Regional 4,217 4,229
Other operating revenue 2,257 2,099
$ 22,493 $22,397

Other operating expenses $3,266 $3,170
UAL and United did not reclassify its 2009 amounts as they were insignificant. There are no significant differences in the impact of the United
reclassifications as compared to the UAL reclassifications above. Continental Successor’s reclassifications related to third party revenue were
insignificant and are presented within its 2010 consolidated statements of operations.

In 2010, UAL and United changed their classification of certain revenue and expenses in their statements of consolidated operations. Baggage fees,
unaccompanied minor fees and miscellaneous fees moved from mainline and regional passenger revenue to other operating revenue. Purchased services
and cost of third party sales moved from separate line items to other operating expenses. Salaries and related costs, aircraft fuel, depreciation and
amortization, landing fees and distribution expenses related to regional expenses were reclassified from regional capacity purchase to their separate line
items. Amounts originally reported in UAL’s 2009 Annual Report on Form 10-K that have been reclassified are shown below (in millions):


 

Passenger—Mainline $11,313 $11,910
Passenger—Regional 2,884 3,064
Other operating revenue 1,602 825
$15,799 $15,799
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