EX-12.2 9 d408868dex122.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.2

United Air Lines, 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)    Nine Months
Ended
September 30,
2012		     2011     2010     2009     2008     2007  

Earnings (losses):

             

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

    $ (612 )    $ 285      $ 389      $ (643 )    $ (5,375 )    $ 658   

Add (deduct):

             

Fixed charges, from below

      625        892        992        950        911        956   

Amortization of capitalized interest

      6        7        5        3        2        1   

Distributed earnings of affiliates

      —          1        2        2        2        4   

Interest capitalized

      (10 )      (15 )      (11 )      (10 )      (20 )      (19 ) 

Equity earnings in affiliates

      (4 )      (3 )      (3 )      (4 )      (6 )      (5 ) 

Minority interest

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings (loss) as adjusted

    $ 4      $ 1,166      $ 1,372      $ 297      $ (4,488 )    $ 1,593   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

             

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

    $ 395      $ 595      $ 695      $ 577      $ 571      $ 703   

Portion of rental expense representative of the interest factor

      230        297        297        373        340        253   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges, as above

      625        892        992        950        911        956   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      —          —          —          —          3        18   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges including preferred stock dividends

    $ 625      $ 892      $ 992      $ 950      $ 914      $ 974   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      (c )      1.31        1.38        (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 $621 million in the first nine months of 2012.
(d) Earnings were inadequate to cover fixed charges by $653 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.