EX-12.1 5 ual_06301810qex121.htm EXHIBIT 12.1
Exhibit 12.1
United Continental Holdings, Inc. and Subsidiary Companies
Computation of Ratio of Earnings to Fixed Charges

(In millions, except ratios) |  | Six Months Ended June 30, 2018 |  | 2017 (a) |  | 2016 (a) |  | 2015 |  | 2014 |  | 2013
Earnings: |  |  |  |  |  |  |  |  |  |  |  |
Earnings before income taxes |  | $ | 1,041 |  |  | $ | 3,040 |  |  | $ | 3,773 |  |  | $ | 4,219 |  |  | $ | 1,128 |  |  | $ | 539 |
Add (deduct): |  |  |  |  |  |  |  |  |  |  |  |
Fixed charges, from below |  | 702 |  |  | 1,417 |  |  | 1,430 |  |  | 1,428 |  |  | 1,648 |  |  | 1,629 |
Amortization of capitalized interest |  | 5 |  |  | 9 |  |  | 11 |  |  | 12 |  |  | 12 |  |  | 11 |
Distributed earnings of affiliates |  | — |  |  | — |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |
Interest capitalized |  | (33 | ) |  | (84 | ) |  | (72 | ) |  | (49 | ) |  | (52 | ) |  | (49 | )
Equity earnings in affiliates |  | (8 | ) |  | (4 | ) |  | — |  |  | (2 | ) |  | (1 | ) |  | (1 | )
Earnings as adjusted |  | $ | 1,707 |  |  | $ | 4,378 |  |  | $ | 5,143 |  |  | $ | 5,609 |  |  | $ | 2,736 |  |  | $ | 2,129 |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | $ | 353 |  |  | $ | 671 |  |  | $ | 674 |  |  | $ | 669 |  |  | $ | 735 |  |  | $ | 783 |
Portion of rent expense representative of the interest factor (b) |  | 349 |  |  | 746 |  |  | 756 |  |  | 759 |  |  | 913 |  |  | 846 |
Fixed charges |  | $ | 702 |  |  | $ | 1,417 |  |  | $ | 1,430 |  |  | $ | 1,428 |  |  | $ | 1,648 |  |  | $ | 1,629 |
Ratio of earnings to fixed charges |  | 2.43 |  |  | 3.09 |  |  | 3.60 |  |  | 3.93 |  |  | 1.66 |  |  | 1.31 |

(a) Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See Note 1 to the financial statements contained in Part I, Item 1 of United Continental Holdings, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018 for additional information related to the adjusted results.
(b) Imputed interest applied to rent expense.