EX-12.1 2 d362561dex121.htm UNITED CONTINENTAL HOLDINGS - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES United Continental Holdings - Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

 

United Continental Holdings, Inc. and Subsidiary Companies

Computation of Ratio of Earnings to Fixed Charges

and Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements

 

(In millions, except ratios)    Six Months
Ended
June 30,
2012		     2011     2010     2009     2008     2007  

Earnings (losses):

             

Earnings (loss) before income taxes & adjustments for minority interest

    $ (106 )    $ 846      $ 255      $ (667 )    $ (5,419 )    $ 659   

Add (deduct):

             

Fixed charges, from below

      777        2,017        1,292        949        910        955   

Amortization of capitalized interest

      4        7        5        3        2        1   

Distributed earnings of affiliates

      —          1        2        2        2        4   

Interest capitalized

      (17 )      (32 )      (15 )      (10 )      (20 )      (19 ) 

Equity earnings in affiliates

      (4 )      (6 )      (4 )      (4 )      (6 )      (5 ) 

Minority interest

      (1 )      (1 )      (2 )      (1 )      (2 )      (2 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings (loss) as adjusted

    $ 653      $ 2,832      $ 1,533      $ 272      $ (4,533 )    $ 1,593   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

             

Interest expensed and capitalized and amortization of premiums, debt discounts, issuance costs, and capital expenditures (a)

    $ 429      $ 949      $ 798      $ 577      $ 571      $ 703   

Portion of rental expense representative of the interest factor

      348        1,068        494        372        339        252   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges, as above

      777        2,017        1,292        949        910        955   

Preferred stock dividend requirements (pre-tax) (b)

      —          —          —          —          3        18   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges including preferred stock dividends

    $ 777      $ 2,017      $ 1,292      $ 949      $ 913      $ 973   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      (c )      1.40        1.19        (d )      (e )      1.67   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges and preferred stock dividends

      N/A        N/A        N/A        N/A        (e )      1.64   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Amortization of debt discounts includes amortization of fresh-start valuation discounts.
(b) Dividends were adjusted using the effective tax rate for each applicable year.
(c) Earnings were inadequate to cover fixed charges by $124 million in the first six months of 2012.
(d) Earnings were inadequate to cover fixed charges by $677 million in 2009.
(e) Earnings were inadequate to cover both fixed charges and fixed charges and preferred stock and dividend requirements by $5.4 billion in 2008.

N/A Not applicable, as there were no preferred stock dividends in this period.