EX-99.5 7 d497031dex995.htm EX-99.5 EX-99.5

Exhibit 99.5

Schedule II

Valuation and Qualifying Accounts

For the Years Ended December 31, 2012, 2011 and 2010

United Continental Holdings, Inc. (together with its consolidated subsidiaries, “UAL” or the “Company”) is a holding company and its principal, wholly-owned subsidiary is United Airlines, Inc. (together with its consolidated subsidiaries, “United”). As UAL consolidates United for financial statement purposes, disclosures that relate to activities of United also apply to UAL, unless otherwise noted. United’s operating revenues and operating expenses comprise nearly 100% of UAL’s revenues and operating expenses. In addition, United comprises approximately the entire balance of UAL’s assets, liabilities and operating cash flows. When appropriate, UAL and United are named specifically for their individual contractual obligations and related disclosures and any significant differences between the operations and results of UAL and United are separately disclosed and explained. We sometimes use the words “we,” “our,” “us,” and the “Company” in this Exhibit 99.5 of this Current Report on Form 8-K for disclosures that relate to all of UAL and United.

On May 2, 2010, UAL Corporation, Continental Airlines, Inc. (together with its consolidated subsidiaries, “Continental”) and JT Merger Sub Inc., a wholly-owned subsidiary of UAL Corporation, entered into an Agreement and Plan of Merger (the “Merger agreement”). On October 1, 2010, JT Merger Sub Inc. merged with and into Continental, with Continental surviving as a wholly-owned subsidiary of UAL Corporation (the “Merger”). Upon closing of the Merger, UAL Corporation became the parent company of both United Air Lines, Inc. and Continental and UAL Corporation’s name was changed to United Continental Holdings, Inc. On March 31, 2013, the Company merged United Air Lines, Inc. into Continental to form one legal entity, and Continental’s name was changed to United Airlines, Inc. The financial statements of United Air Lines, Inc. and Continental are now combined at their historical cost for all periods presented beginning on October 1, 2010, the date on which Continental became a wholly-owned subsidiary of UAL. There will no longer be a requirement to separately report the historical financial statements of Continental.

 

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(In millions)

Description

   Balance at
Beginning  of
Period
     Assumed in
Merger/Acquisition
Accounting
Adjustment
    Additions
Charged to
Costs and
Expenses
     Deductions (a)      Balance at
End of
Period
 

Allowance for doubtful accounts—UAL:

             

2012

   $ 7       $ —        $ 12       $ 6       $ 13   

2011

     6         —          8         7         7   

2010

     14         —          4         12         6   

Allowance for doubtful accounts—United:

             

2012

   $ 7       $ —        $ 12       $ 6       $ 13   

2011

     6         —          8         7         7   

2010

     19         (5     4         12         6   

Obsolescence allowance—spare parts—UAL:

             

2012

   $ 89       $ —        $ 40       $ 4       $ 125   

2011

     64         —          31         6         89   

2010

     61         —          215         212         64   

Obsolescence allowance—spare parts—United:

             

2012

   $ 89       $ —        $ 40       $ 4       $ 125   

2011

     64         —          31         6         89   

2010

     182         (121     215         212         64   

Valuation allowance for deferred tax assets—UAL:

             

2012

   $ 4,137       $ —        $ 487       $ 21       $ 4,603   

2011

     4,171         —          333         367         4,137   

2010

     3,060         1,487        90         466         4,171   

Valuation allowance for deferred tax assets—United:

             

2012

   $ 4,048       $ —        $ 661       $ 206       $ 4,503   

2011

     4,008         —          371         331         4,048   

2010

     3,339         1,125        32         488         4,008   

 

(a) Deduction from reserve for purpose for which reserve was created.

 

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