XML 99 R26.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Significant Accounting Policies (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Accounting Policies [Abstract] |
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):
|  | 2019 |  | 2018 |  | 2017
Domestic (U.S. and Canada) |  | $ | 26,960 |  |  | $ | 25,552 |  |  | $ | 23,114 |
Atlantic |  | 7,387 |  |  | 7,103 |  |  | 6,340 |
Pacific |  | 5,132 |  |  | 5,188 |  |  | 4,914 |
Latin America |  | 3,780 |  |  | 3,460 |  |  | 3,416 |
Total |  | $ | 43,259 |  |  | $ | 41,303 |  |  | $ | 37,784 |
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,
| 2019 |  | 2018
Total Frequent flyer deferred revenue - beginning balance | $ | 5,005 |  |  | $ | 4,783 |
Total miles awarded | 2,621 |  |  | 2,451 |
Travel miles redeemed (Passenger revenue) | (2,213 | ) |  | (2,068 | )
Non-travel miles redeemed (Other operating revenue) | (137 | ) |  | (161 | )
Total Frequent flyer deferred revenue - ending balance | $ | 5,276 |  |  | $ | 5,005 |
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,
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Current assets: |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 2,762 |  |  | $ | 1,694 |  |  | $ | 1,482 |  |  | $ | 2,756 |  |  | $ | 1,688 |  |  | $ | 1,476 |
Restricted cash included in Prepaid expenses and other | — |  |  | — |  |  | 18 |  |  | — |  |  | — |  |  | 18 |
Other assets: |  |  |  |  |  |  |  |  |  |  |
Restricted cash | 106 |  |  | 105 |  |  | 91 |  |  | 106 |  |  | 105 |  |  | 91 |
Total cash, cash equivalents and restricted cash shown in the statement of consolidated cash flows | $ | 2,868 |  |  | $ | 1,799 |  |  | $ | 1,591 |  |  | $ | 2,862 |  |  | $ | 1,793 |  |  | $ | 1,585 |
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,
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Current assets: |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 2,762 |  |  | $ | 1,694 |  |  | $ | 1,482 |  |  | $ | 2,756 |  |  | $ | 1,688 |  |  | $ | 1,476 |
Restricted cash included in Prepaid expenses and other | — |  |  | — |  |  | 18 |  |  | — |  |  | — |  |  | 18 |
Other assets: |  |  |  |  |  |  |  |  |  |  |
Restricted cash | 106 |  |  | 105 |  |  | 91 |  |  | 106 |  |  | 105 |  |  | 91 |
Total cash, cash equivalents and restricted cash shown in the statement of consolidated cash flows | $ | 2,868 |  |  | $ | 1,799 |  |  | $ | 1,591 |  |  | $ | 2,862 |  |  | $ | 1,793 |  |  | $ | 1,585 |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of property and equipment are as follows:
|  | Estimated Useful Life (in years)
Aircraft, spare engines 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
Information about Goodwill and Other Intangible Assets | The following table presents information about the Company's goodwill and other intangible assets at December 31 (in millions):
|  | 2019 |  | 2018
|  | Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Goodwill |  | $ | 4,523 |  |  |  |  | $ | 4,523 |  |  |
Indefinite-lived intangible assets |  |  |  |  |  |  |  |
Route authorities |  | $ | 1,150 |  |  |  |  | $ | 1,240 |  |  |
Airport slots |  | 546 |  |  |  |  | 546 |  |  |
Tradenames and logos |  | 593 |  |  |  |  | 593 |  |  |
Alliances |  | 404 |  |  |  |  | 404 |  |  |
Total |  | $ | 2,693 |  |  |  |  | $ | 2,783 |  |  |
Finite-lived intangible assets |  |  |  |  |  |  |  |
Frequent flyer database |  | $ | 1,177 |  |  | $ | 931 |  |  | $ | 1,177 |  |  | $ | 884 |
Hubs |  | 145 |  |  | 104 |  |  | 145 |  |  | 97 |
Contracts |  | 120 |  |  | 111 |  |  | 120 |  |  | 106 |
Other |  | 314 |  |  | 294 |  |  | 314 |  |  | 293 |
Total |  | $ | 1,756 |  |  | $ | 1,440 |  |  | $ | 1,756 |  |  | $ | 1,380 |
Impact of the Adoption of the New Lease Standard | The adoption of the New Lease Standard had the same impact on the financial statements of United as it had on the financial statements of UAL. The table below presents the impact of the adoption of the New Lease Standard on select accounts and captions of UAL's statement of consolidated operations for the year ended December 31 (in millions, except per share amounts):
| As Reported |  | New Lease Standard Adjustments |  | As Adjusted
| 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017
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 |
Interest expense | (729 | ) |  | (671 | ) |  | 59 |  |  | 45 |  |  | (670 | ) |  | (626 | )
Interest capitalized | 70 |  |  | 84 |  |  | (5 | ) |  | (10 | ) |  | 65 |  |  | 74 |
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 |
The expense for leases under the New Lease Standard will continue to be classified in their historical income statement captions (primarily in Aircraft rent, Landing fees and other rent and Regional capacity purchase in our statements of consolidated operations). The adoption of the New Lease Standard resulted in the recharacterization of certain leases from capital leases under Topic 840 to operating leases under the New Lease Standard. This change resulted in less depreciation and amortization and interest expense associated with capital leases offset by higher lease expense associated with operating leases. The recharacterization is associated with leases of certain airport facilities that were derecognized as part of the build-to-suit transition guidance under the New Lease Standard. The reduction in capitalized interest is also associated with the same airport facilities leases. The table below presents the impact of the adoption of the New Lease Standard on UAL's balance sheet accounts and captions (in millions):
|  | December 31, 2018
|  | As Reported |  | New Lease Standard Adjustments |  | As Adjusted
Receivables, less allowance for doubtful accounts |  | $ | 1,346 |  |  | $ | 80 |  |  | $ | 1,426 |
Prepaid expenses and other |  | 913 |  |  | (180 | ) |  | 733 |
Flight equipment, owned and finance leases (a) |  | 32,636 |  |  | (37 | ) |  | 32,599 |
Other property and equipment, owned and finance leases (a) |  | 7,930 |  |  | (1,041 | ) |  | 6,889 |
Accumulated depreciation and amortization, owned and finance leases (a) |  | (13,414 | ) |  | 148 |  |  | (13,266 | )
Operating lease right-of-use assets |  | — |  |  | 5,262 |  |  | 5,262 |
Current maturities of finance leases (a) |  | 149 |  |  | (26 | ) |  | 123 |
Current maturities of operating leases |  | — |  |  | 719 |  |  | 719 |
Other current liabilities |  | 619 |  |  | (66 | ) |  | 553 |
Long-term obligations under finance leases (a) |  | 1,134 |  |  | (910 | ) |  | 224 |
Long-term obligations under operating leases |  | — |  |  | 5,276 |  |  | 5,276 |
Deferred income taxes |  | 814 |  |  | 14 |  |  | 828 |
Other long-term liabilities |  | 1,832 |  |  | (822 | ) |  | 1,010 |
Retained earnings |  | 6,668 |  |  | 47 |  |  | 6,715 |
(a) Finance leases, under the New Lease Standard, are the equivalent of capital leases under Topic 840. The table below presents the impact of the adoption of the New Lease Standard on select line items of UAL's statement of consolidated cash flows for the year ended December 31 (in millions):
| As Reported |  | New Lease Standard Adjustments |  | As Adjusted
| 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017
Cash Flows from Operating Activities: |  |  |  |  |  |  |  |  |  |  |
Net cash provided by operating activities | $ | 6,181 |  |  | $ | 3,413 |  |  | $ | (17 | ) |  | $ | 61 |  |  | $ | 6,164 |  |  | $ | 3,474 |
Cash Flows from Investing Activities: |  |  |  |  |  |  |  |  |  |  |
Capital expenditures | (4,177 | ) |  | (3,998 | ) |  | 107 |  |  | 128 |  |  | (4,070 | ) |  | (3,870 | )
Cash Flows from Financing Activities: |  |  |  |  |  |  |  |  |  |  |
Proceeds from issuance of long-term debt | 1,740 |  |  | 2,765 |  |  | (146 | ) |  | (228 | ) |  | 1,594 |  |  | 2,537 |
Principal payments under finance leases | (134 | ) |  | (124 | ) |  | 55 |  |  | 40 |  |  | (79 | ) |  | (84 | )

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of contract balances and changes in contract balances. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=118956577&loc=SL49130551-203045 + Details
Name: | us-gaap_ContractWithCustomerAssetAndLiabilityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=118956577&loc=SL49130545-203045 + Details
Name: | us-gaap_DisaggregationOfRevenueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, balances by class of assets, depreciation and depletion expense and method used, including composite depreciation, and accumulated deprecation. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(13)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229 + Details
Name: | us-gaap_PropertyPlantAndEquipmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of cash and cash equivalents. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCashAndCashEquivalentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of goodwill and intangible assets, which may be broken down by segment or major class. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 + Details
Name: | us-gaap_ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=116846552&loc=d3e765-108305 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.10-01.(b)(6)) -URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=116846552&loc=d3e725-108305 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794 + Details
Name: | us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of cash and cash equivalents restricted as to withdrawal or usage. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(1)(a)) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=98513485&loc=SL98516268-108586 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03(a)(2)) -URI http://asc.fasb.org/extlink&oid=119400593&loc=d3e572229-122910 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(1)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_ScheduleOfRestrictedCashAndCashEquivalentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration