United Airlines 2012 Annual Report Download - page 137

Table of Contents
Aircraft operating leases have initial terms of one to twenty-six years, with expiration dates ranging from 2013 through 2024. Under the terms of most leases,
the Company has the right to purchase the aircraft at the end of the lease term, in some cases at fair market value, and in others, at fair market value or a
percentage of cost. The Company has facility operating leases that extend to 2032.
United and Continental are the lessees of real property under long-term operating leases at a number of airports where we are also the guarantor of
approximately $270 million and $1.4 billion, respectively, of underlying debt and interest thereon as of December 31, 2012. These leases are typically with
municipalities or other governmental entities, which are excluded from the consolidation requirements concerning VIEs. To the extent the Company’s leases and
related guarantees are with a separate legal entity other than a governmental entity, the Company is not the primary beneficiary because the lease terms are
consistent with market terms at the inception of the lease and the lease does not include a residual value guarantee, fixed-price purchase option, or similar
feature.
The table below summarizes the Company’s nonaircraft rent expense for the years ended December 31 (in millions):
 




2012 $ 1,278 $ 654 $ 624
2011 1,265 666 599
2010 839 685 154 $ 452
In addition to nonaircraft rent in the table above and aircraft rent, which is separately presented in the consolidated statements of operations, UAL had aircraft
rent related to regional aircraft operating leases, which is included as part of regional capacity purchase expense in UAL’s consolidated statement of operations,
of $463 million, $498 million and $411 million for the years ended December 31, 2012, 2011 and 2010, respectively. For the year ended December 31, 2012,
UAL’s regional aircraft rent, which is included as part of regional capacity purchase expense, consisted of $380 million and $83 million related to United and
Continental, respectively.
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