United Airlines 2012 Annual Report Download - page 96

Table of Contents
(a) Weighted average life expressed in years. UAL is covered by the weighted average of each of its individual subsidiaries.
(b) The United and Continental frequent flyer databases are amortized based on an accelerated amortization schedule to reflect utilization of the assets. Estimated cash flows correlating to the expected attrition rate of
customers in the frequent flyer databases were considered in the determination of the amortization schedules.
The following table presents information related to the Company’s actual and expected future amortization expense (in millions):
  
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2012 $121 $ 55 $ 66
2011 169 61 108
2010 96 65 31 $ 11
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2013 $ 142 $ 52 $ 90
2014 129 46 83
2015 106 37 69
2016 91 34 57
2017 81 32 49
See Note 21 for information related to impairment of intangible assets.
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At December 31, 2012, approximately 72 million shares of UAL common stock were reserved for future issuance related to the conversion of convertible debt
securities and the issuance of equity based awards under UAL’s incentive compensation plans.
As of December 31, 2012, UAL had two shares of junior preferred stock (par value $0.01 per share) outstanding. In addition, UAL is authorized to issue
250 million shares of preferred stock (without par value) under UAL’s amended and restated certificate of incorporation.
In 2010, approximately nine million shares of UAL common stock were issued upon the redemption of Continental’s $175 million aggregate principal amount
of 5% Convertible Notes due 2023. See Note 14 for additional information related to this transaction.
In October 2010, approximately 148 million shares of UAL common stock were issued to Continental stockholders in exchange for Continental common stock
in connection with the Merger. See Note 1 for additional information related to this transaction.
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In connection with the Merger, on October 1, 2010, all outstanding 141 million shares of Continental common stock were converted into and exchanged for
1.05 fully paid and nonassessable shares of UAL common stock with any fractional shares paid in cash. The shares of Continental common stock that were
acquired by UAL were subsequently canceled and replaced with 1,000 shares of common stock ($0.01 par value), all of which are owned by UAL as of
December 31, 2012.
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