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Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2018
Operating Revenue by Principal Geographic Region | The Company's operating revenue by principal geographic region (as defined by the U.S. Department of Transportation) for the years ended December 31 is presented in the table below (in millions):
|  | 2018 |  | 2017¹ |  | 2016¹
Domestic (U.S. and Canada) |  | $ | 25,552 |  |  | $ | 23,114 |  |  | $ | 22,151 |
Atlantic |  | 7,103 |  |  | 6,340 |  |  | 6,194 |
Pacific |  | 5,188 |  |  | 4,914 |  |  | 4,984 |
Latin America |  | 3,460 |  |  | 3,416 |  |  | 3,229 |
Total |  | $ | 41,303 |  |  | $ | 37,784 |  |  | $ | 36,558 |
(1) Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). See (u) below for additional information.
Roll Forward of Frequent Flyer Deferred Revenue | The table below presents a roll forward of Frequent flyer deferred revenue (in millions):
| Twelve Months Ended December 31,
| 2018 |  | 2017
Total Frequent flyer deferred revenue - beginning balance | $ | 4,783 |  |  | $ | 4,889 |
Total miles awarded | 2,451 |  |  | 2,077 |
Travel miles redeemed (Passenger revenue) | (2,068 | ) |  | (2,004 | )
Non-travel miles redeemed (Other operating revenue) | (161 | ) |  | (179 | )
Total Frequent flyer deferred revenue - ending balance | $ | 5,005 |  |  | $ | 4,783 |
Impact of the Adoption of the New Revenue Standard and the New Retirement Standard and the Expected Impact of the Adoption of the New Lease Standard | The adoption of the New Lease Standard is expected to impact our reported results as shown in the tables below (in millions, except per share amounts):
Consolidated Balance Sheets as of December 31,
| As Reported |  | New Lease Standard Adjustments |  | As Adjusted
| 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017
Current assets: |  |  |  |  |  |  |  |  |  |  |
Receivables, less allowance for doubtful accounts | $ | 1,346 |  |  | $ | 1,340 |  |  | $ | 80 |  |  | $ | 126 |  |  | $ | 1,426 |  |  | $ | 1,466 |
Prepaid expenses and other | 913 |  |  | 1,071 |  |  | (180 | ) |  | (208 | ) |  | 733 |  |  | 863 |
Operating property and equipment: |  |  |  |  |  |  |  |  |  |  |  |  |
Other property and equipment (owned) | 7,919 |  |  | 6,946 |  |  | (1,041 | ) |  | (922 | ) |  | 6,878 |  |  | 6,024 |
Less-Accumulated depreciation and amortization (owned) | (12,760 | ) |  | (11,159 | ) |  | 140 |  |  | 92 |  |  | (12,620 | ) |  | (11,067 | )
Flight equipment (finance leases) (a) | 1,029 |  |  | 1,151 |  |  | (37 | ) |  | (211 | ) |  | 992 |  |  | 940 |
Less-Accumulated amortization | (654 | ) |  | (777 | ) |  | 8 |  |  | 169 |  |  | (646 | ) |  | (608 | )
Operating lease assets |  |  |  |  |  |  |  |  |  |  |
Flight equipment | — |  |  | — |  |  | 2,380 |  |  | 3,102 |  |  | 2,380 |  |  | 3,102 |
Other property and equipment | — |  |  | — |  |  | 2,882 |  |  | 2,975 |  |  | 2,882 |  |  | 2,975 |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Current maturities of finance leases (a) | 149 |  |  | 128 |  |  | (26 | ) |  | (50 | ) |  | 123 |  |  | 78 |
Current maturities of operating leases | — |  |  | — |  |  | 719 |  |  | 949 |  |  | 719 |  |  | 949 |
Other | 619 |  |  | 576 |  |  | (66 | ) |  | (58 | ) |  | 553 |  |  | 518 |
Long-term obligations under finance leases (a) | 1,134 |  |  | 996 |  |  | (910 | ) |  | (766 | ) |  | 224 |  |  | 230 |
Long-term obligations under operating leases | — |  |  | — |  |  | 5,276 |  |  | 5,789 |  |  | 5,276 |  |  | 5,789 |
Other liabilities and deferred credits: |  |  |  |  |  |  |  |  |  |  |
Deferred income taxes | 814 |  |  | 204 |  |  | 14 |  |  | 16 |  |  | 828 |  |  | 220 |
Other | 1,832 |  |  | 1,832 |  |  | (822 | ) |  | (811 | ) |  | 1,010 |  |  | 1,021 |
Stockholders' equity: |  |  |  |  |  |  |  |  |  |  |  |  |
Retained earnings | 6,668 |  |  | 4,549 |  |  | 47 |  |  | 54 |  |  | 6,715 |  |  | 4,603 |
(a) Finance leases, under the New Lease Standard, are the equivalent of capital leases under Topic 840. The tables below present the impact of the adoption of the New Revenue Standard and the New Retirement Standard on select accounts and captions of UAL's statements of consolidated operations for the twelve months ended December 31, 2017 and 2016 (in millions, except per share amounts) and the impact on UAL's balance sheet accounts and captions as of December 31, 2017 (in millions):
Statements of Consolidated Operations for the Years Ended December 31,
| As Previously Reported |  | New Revenue Standard Adjustments |  | New Retirement Standard Adjustments |  | As Adjusted
| 2017 |  | 2016 |  | 2017 |  | 2016 |  | 2017 |  | 2016 |  | 2017 |  | 2016
Operating revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Passenger revenue | $ | 32,404 |  |  | $ | 31,457 |  |  | $ | 2,056 |  |  | $ | 1,972 |  |  | $ | — |  |  | $ | — |  |  | $ | 34,460 |  |  | $ | 33,429 |
Cargo | 1,035 |  |  | 876 |  |  | 79 |  |  | 58 |  |  | — |  |  | — |  |  | 1,114 |  |  | 934 |
Other operating revenue | 4,297 |  |  | 4,223 |  |  | (2,087 | ) |  | (2,028 | ) |  | — |  |  | — |  |  | 2,210 |  |  | 2,195 |
Total operating revenue | 37,736 |  |  | 36,556 |  |  | 48 |  |  | 2 |  |  | — |  |  | — |  |  | 37,784 |  |  | 36,558 |
Operating expenses | 34,238 |  |  | 32,218 |  |  | (21 | ) |  | (12 | ) |  | (104 | ) |  | 8 |  |  | 34,113 |  |  | 32,214 |
Operating income | 3,498 |  |  | 4,338 |  |  | 69 |  |  | 14 |  |  | 104 |  |  | (8 | ) |  | 3,671 |  |  | 4,344 |
Nonoperating expense, net | (499 | ) |  | (519 | ) |  | (28 | ) |  | (60 | ) |  | (104 | ) |  | 8 |  |  | (631 | ) |  | (571 | )
Income before income taxes | 2,999 |  |  | 3,819 |  |  | 41 |  |  | (46 | ) |  | — |  |  | — |  |  | 3,040 |  |  | 3,773 |
Income tax expense | 868 |  |  | 1,556 |  |  | 28 |  |  | (17 | ) |  | — |  |  | — |  |  | 896 |  |  | 1,539 |
Net income | $ | 2,131 |  |  | $ | 2,263 |  |  | $ | 13 |  |  | $ | (29 | ) |  | $ | — |  |  | $ | — |  |  | $ | 2,144 |  |  | $ | 2,234 |
Earnings per share, basic | $ | 7.04 |  |  | $ | 6.86 |  |  | $ | 0.04 |  |  | $ | (0.09 | ) |  | $ | — |  |  | $ | — |  |  | $ | 7.08 |  |  | $ | 6.77 |
Earnings per share, diluted | $ | 7.02 |  |  | $ | 6.85 |  |  | $ | 0.04 |  |  | $ | (0.09 | ) |  | $ | — |  |  | $ | — |  |  | $ | 7.06 |  |  | $ | 6.76 |
Consolidated Balance Sheet as of December 31, 2017
| As Previously Reported |  | New Revenue Standard Adjustments |  | As Adjusted
Current assets: |  |  |  |  |
Prepaid expenses and other | $ | 1,051 |  |  | $ | 20 |  |  | $ | 1,071 |
Current liabilities: |  |  |  |  |
Advance ticket sales | 3,876 |  |  | 64 |  |  | 3,940 |
Frequent flyer deferred revenue | 2,176 |  |  | 16 |  |  | 2,192 |
Other | 569 |  |  | 7 |  |  | 576 |
Other liabilities and deferred credits: |  |  |  |  |
Frequent flyer deferred revenue | 2,565 |  |  | 26 |  |  | 2,591 |
Deferred income taxes | 225 |  |  | (21 | ) |  | 204 |
Stockholders' equity: |  |  |  |  |
Retained earnings | $ | 4,621 |  |  | $ | (72 | ) |  | $ | 4,549 |
Statements of Consolidated Operations for the Years Ended December 31,
| As Reported |  | New Lease Standard Adjustments |  | As Adjusted
| 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017
Operating expense: |  |  |  |  |  |  |  |  |  |  |
Regional capacity purchase | $ | 2,601 |  |  | $ | 2,232 |  |  | $ | 48 |  |  | $ | 36 |  |  | $ | 2,649 |  |  | $ | 2,268 |
Landing fees and other rent | 2,359 |  |  | 2,240 |  |  | 90 |  |  | 70 |  |  | 2,449 |  |  | 2,310 |
Depreciation and amortization | 2,240 |  |  | 2,149 |  |  | (75 | ) |  | (53 | ) |  | 2,165 |  |  | 2,096 |
Total operating expenses | 38,011 |  |  | 34,113 |  |  | 63 |  |  | 53 |  |  | 38,074 |  |  | 34,166 |
Operating income | 3,292 |  |  | 3,671 |  |  | (63 | ) |  | (53 | ) |  | 3,229 |  |  | 3,618 |
Nonoperating income (expense): |  |  |  |  |  |  |  |  |  |  |
Interest expense | (729 | ) |  | (671 | ) |  | 59 |  |  | 45 |  |  | (670 | ) |  | (626 | )
Interest capitalized | 70 |  |  | 84 |  |  | (5 | ) |  | (10 | ) |  | 65 |  |  | 74 |
Total nonoperating expense, net | (634 | ) |  | (631 | ) |  | 53 |  |  | 36 |  |  | (581 | ) |  | (595 | )
Income before income taxes | 2,658 |  |  | 3,040 |  |  | (10 | ) |  | (17 | ) |  | 2,648 |  |  | 3,023 |
Income tax expense | 529 |  |  | 896 |  |  | (3 | ) |  | (16 | ) |  | 526 |  |  | 880 |
Net income | $ | 2,129 |  |  | $ | 2,144 |  |  | $ | (7 | ) |  | $ | (1 | ) |  | $ | 2,122 |  |  | $ | 2,143 |
Earnings per share, basic | $ | 7.73 |  |  | $ | 7.08 |  |  | $ | (0.03 | ) |  | $ | — |  |  | $ | 7.70 |  |  | $ | 7.08 |
Earnings per share, diluted | $ | 7.70 |  |  | $ | 7.06 |  |  | $ | (0.03 | ) |  | $ | — |  |  | $ | 7.67 |  |  | $ | 7.06 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of consolidated cash flows (in millions):
| UAL |  | United
| At December 31, |  | At December 31,
| 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016
Current assets: |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,694 |  |  | $ | 1,482 |  |  | $ | 2,179 |  |  | $ | 1,688 |  |  | $ | 1,476 |  |  | $ | 2,173 |
Restricted cash included in Prepaid expenses and other | — |  |  | 18 |  |  | — |  |  | — |  |  | 18 |  |  | — |
Other assets: |  |  |  |  |  |  |  |  |  |  |
Restricted cash | 105 |  |  | 91 |  |  | 124 |  |  | 105 |  |  | 91 |  |  | 124 |
Total cash, cash equivalents and restricted cash shown in the statement of consolidated cash flows | $ | 1,799 |  |  | $ | 1,591 |  |  | $ | 2,303 |  |  | $ | 1,793 |  |  | $ | 1,585 |  |  | $ | 2,297 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of consolidated cash flows (in millions):
| UAL |  | United
| At December 31, |  | At December 31,
| 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016
Current assets: |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,694 |  |  | $ | 1,482 |  |  | $ | 2,179 |  |  | $ | 1,688 |  |  | $ | 1,476 |  |  | $ | 2,173 |
Restricted cash included in Prepaid expenses and other | — |  |  | 18 |  |  | — |  |  | — |  |  | 18 |  |  | — |
Other assets: |  |  |  |  |  |  |  |  |  |  |
Restricted cash | 105 |  |  | 91 |  |  | 124 |  |  | 105 |  |  | 91 |  |  | 124 |
Total cash, cash equivalents and restricted cash shown in the statement of consolidated cash flows | $ | 1,799 |  |  | $ | 1,591 |  |  | $ | 2,303 |  |  | $ | 1,793 |  |  | $ | 1,585 |  |  | $ | 2,297 |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of property and equipment are as follows:
|  | Estimated Useful Life (in years)
Aircraft and related rotable parts |  | 25 to 30
Aircraft seats |  | 10 to 15
Buildings |  | 25 to 45
Other property and equipment |  | 3 to 15
Computer software |  | 5 to 15
Building improvements |  | 1 to 40

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