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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One) | | | | | |
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2022
OR | | | | | |
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commission
File Number | | Exact Name of Registrant as Specified in its Charter, Principal Executive Office Address and Telephone Number | | State of
Incorporation | | I.R.S. Employer
Identification No. | | |
| 001-06033 | | United Airlines Holdings, Inc. | | Delaware | | 36-2675207 | | |
| | | 233 South Wacker Drive, | Chicago, | Illinois | 60606 | | | | | | |
| | | (872) | 825-4000 | | | | | | | | | | |
| | | | | | | | | | | | | | |
| 001-10323 | | United Airlines, Inc. | | Delaware | | 74-2099724 | | |
| | | 233 South Wacker Drive, | Chicago, | Illinois | 60606 | | | | | | |
| | | (872) | 825-4000 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Securities registered pursuant to Section 12(b) of the Act |
| Registrant | | Title of Each Class | | Trading Symbol | | Name of Each Exchange on Which Registered |
| United Airlines Holdings, Inc. | | Common Stock, $0.01 par value | | UAL | | The Nasdaq Stock Market LLC |
| United Airlines Holdings, Inc. | | Preferred Stock Purchase Rights | | None | | The Nasdaq Stock Market LLC |
| United Airlines, Inc. | | None | | | None | | None |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| United Airlines Holdings, Inc. | | Yes | ☒ | No | ☐ | | United Airlines, Inc. | | Yes | ☒ | No | ☐ |
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| United Airlines Holdings, Inc. | | Yes | ☒ | No | ☐ | | United Airlines, Inc. | | Yes | ☒ | No | ☐ |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| United Airlines Holdings, Inc. | Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
| United Airlines, Inc. | Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | ☒ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | | | | | | | | |
| United Airlines Holdings, Inc. | | ☐ |
| United Airlines, Inc. | | ☐ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | | | | | | | | | | | | | | | | | |
| United Airlines Holdings, Inc. | | Yes | ☐ | No | ☒ |
| United Airlines, Inc. | | Yes | ☐ | No | ☒ |
The number of shares outstanding of each of the issuer's classes of common stock as of October 13, 2022 is shown below: | | | | | | | | | | | |
| United Airlines Holdings, Inc. | | 326,927,831 | | shares of common stock ($0.01 par value) |
| United Airlines, Inc. | | 1,000 | | shares of common stock ($0.01 par value) (100% owned by United Airlines Holdings, Inc.) |
OMISSION OF CERTAIN INFORMATION
This combined Quarterly Report on Form 10-Q is separately filed by United Airlines Holdings, Inc. and United Airlines, Inc. United Airlines, Inc. meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format allowed under that General Instruction.
United Airlines Holdings, Inc.
United Airlines, Inc.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended September 30, 2022
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
UNITED AIRLINES HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
(In millions, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended
September 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| Operating revenue: | | | | | | | |
| Passenger revenue | $ | 11,653 | | | $ | 6,637 | | | $ | 28,830 | | | $ | 13,319 | |
| Cargo | 498 | | | 519 | | | 1,699 | | | 1,622 | |
| Other operating revenue | 726 | | | 594 | | | 2,026 | | | 1,501 | |
| Total operating revenue | 12,877 | | | 7,750 | | | 32,555 | | | 16,442 | |
| | | | | | | |
| Operating expense: | | | | | | | |
| Aircraft fuel | 3,755 | | | 1,710 | | | 9,796 | | | 3,793 | |
| Salaries and related costs | 2,843 | | | 2,487 | | | 8,466 | | | 6,987 | |
| Landing fees and other rent | 639 | | | 652 | | | 1,919 | | | 1,735 | |
| Aircraft maintenance materials and outside repairs | 619 | | | 346 | | | 1,553 | | | 917 | |
| Depreciation and amortization | 610 | | | 623 | | | 1,832 | | | 1,866 | |
| Regional capacity purchase | 596 | | | 520 | | | 1,728 | | | 1,546 | |
| Distribution expenses | 482 | | | 218 | | | 1,101 | | | 442 | |
| Aircraft rent | 65 | | | 58 | | | 193 | | | 165 | |
| Special charges (credits) | 20 | | | (1,098) | | | 124 | | | (3,423) | |
| Other operating expenses | 1,790 | | | 1,197 | | | 4,883 | | | 3,028 | |
| Total operating expense | 11,419 | | | 6,713 | | | 31,595 | | | 17,056 | |
| Operating income (loss) | 1,458 | | | 1,037 | | | 960 | | | (614) | |
| | | | | | | |
| Nonoperating income (expense): | | | | | | | |
| Interest expense | (455) | | | (449) | | | (1,299) | | | (1,228) | |
| Interest capitalized | 27 | | | 18 | | | 73 | | | 57 | |
| Interest income | 104 | | | 11 | | | 142 | | | 30 | |
| Unrealized gains (losses) on investments, net | 28 | | | (34) | | | (12) | | | 91 | |
| Miscellaneous, net | (9) | | | 20 | | | (4) | | | (48) | |
| Total nonoperating expense, net | (305) | | | (434) | | | (1,100) | | | (1,098) | |
| Income (loss) before income tax expense (benefit) | 1,153 | | | 603 | | | (140) | | | (1,712) | |
| Income tax expense (benefit) | 211 | | | 130 | | | (34) | | | (394) | |
| Net income (loss) | $ | 942 | | | $ | 473 | | | $ | (106) | | | $ | (1,318) | |
| | | | | | | |
| Earnings (loss) per share, basic | $ | 2.88 | | | $ | 1.46 | | | $ | (0.33) | | | $ | (4.10) | |
| Earnings (loss) per share, diluted | $ | 2.86 | | | $ | 1.44 | | | $ | (0.33) | | | $ | (4.10) | |
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
UNITED AIRLINES HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(In millions)
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended
September 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| Net income (loss) | $ | 942 | | | $ | 473 | | | $ | (106) | | | $ | (1,318) | |
| | | | | | | |
| Other comprehensive income (loss), net of tax: | | | | | | | |
| Employee benefit plans | — | | | (9) | | | 9 | | | 17 | |
| Investments and other | (20) | | | (1) | | | (31) | | | (2) | |
| Total other comprehensive income (loss), net of tax | (20) | | | (10) | | | (22) | | | 15 | |
| | | | | | | |
| Total comprehensive income (loss), net | $ | 922 | | | $ | 463 | | | $ | (128) | | | $ | (1,303) | |
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
UNITED AIRLINES HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions, except shares)
| | | | | | | | | | | |
| | September 30, 2022 | | December 31, 2021 |
| ASSETS | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 11,258 | | | $ | 18,283 | |
| Short-term investments | 7,437 | | | 123 | |
| Restricted cash | 61 | | | 37 | |
Receivables, less allowance for credit losses (2022 — $28; 2021 — $28) | 2,034 | | | 1,663 | |
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2022 — $595; 2021 — $546) | 1,116 | | | 983 | |
| Prepaid expenses and other | 783 | | | 745 | |
| Total current assets | 22,689 | | | 21,834 | |
| Operating property and equipment: | | | |
| Flight equipment | 40,867 | | | 39,584 | |
| Other property and equipment | 9,195 | | | 8,764 | |
| Purchase deposits for flight equipment | 2,532 | | | 2,215 | |
| Total operating property and equipment | 52,594 | | | 50,563 | |
| Less — Accumulated depreciation and amortization | (20,088) | | | (18,489) | |
| Total operating property and equipment, net | 32,506 | | | 32,074 | |
| | | |
| Operating lease right-of-use assets | 4,280 | | | 4,645 | |
| | | |
| Other assets: | | | |
| Goodwill | 4,527 | | | 4,527 | |
Intangibles, less accumulated amortization (2022 — $1,462; 2021 — $1,544) | 2,772 | | | 2,803 | |
| Restricted cash | 208 | | | 213 | |
| Deferred income taxes | 701 | | | 659 | |
Investments in affiliates and other, less allowance for credit losses (2022 — $695; 2021 — $622) | 1,285 | | | 1,420 | |
| Total other assets | 9,493 | | | 9,622 | |
| Total assets | $ | 68,968 | | | $ | 68,175 | |
(continued on next page)
UNITED AIRLINES HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions, except shares)
| | | | | | | | | | | |
| | September 30, 2022 | | December 31, 2021 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | |
| Current liabilities: | | | |
| Accounts payable | $ | 3,534 | | | $ | 2,562 | |
| Accrued salaries and benefits | 1,841 | | | 2,121 | |
| Advance ticket sales | 8,747 | | | 6,354 | |
| Frequent flyer deferred revenue | 2,642 | | | 2,239 | |
| Current maturities of long-term debt | 2,955 | | | 3,002 | |
| Current maturities of other financial liabilities | 906 | | | 834 | |
| Current maturities of operating leases | 546 | | | 556 | |
| Current maturities of finance leases | 72 | | | 76 | |
| Other | 746 | | | 560 | |
| Total current liabilities | 21,989 | | | 18,304 | |
| | | |
| Long-term debt | 28,490 | | | 30,361 | |
| Long-term obligations under operating leases | 4,803 | | | 5,152 | |
| Long-term obligations under finance leases | 112 | | | 219 | |
| | | |
| Other liabilities and deferred credits: | | | |
| Frequent flyer deferred revenue | 3,936 | | | 4,043 | |
| Pension liability | 1,948 | | | 1,920 | |
| Postretirement benefit liability | 946 | | | 1,000 | |
| Other financial liabilities | 492 | | | 863 | |
| Other | 1,354 | | | 1,284 | |
| Total other liabilities and deferred credits | 8,676 | | | 9,110 | |
| Commitments and contingencies | | | |
| Stockholders' equity: | | | |
| Preferred stock | — | | | — | |
Common stock at par, $0.01 par value; authorized 1,000,000,000 shares; outstanding 326,926,963 and 323,810,825 shares at September 30, 2022 and December 31, 2021, respectively | 4 | | | 4 | |
| Additional capital invested | 8,970 | | | 9,156 | |
| Stock held in treasury, at cost | (3,533) | | | (3,814) | |
| Retained earnings | 421 | | | 625 | |
| Accumulated other comprehensive loss | (964) | | | (942) | |
| Total stockholders' equity | 4,898 | | | 5,029 | |
| Total liabilities and stockholders' equity | $ | 68,968 | | | $ | 68,175 | |
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
UNITED AIRLINES HOLDINGS, INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)
(In millions)
| | | | | | | | | | | |
| | Nine Months Ended
September 30, |
| | 2022 | | 2021 |
| Cash Flows from Operating Activities: | | | |
| Net cash provided by operating activities | $ | 4,908 | | | $ | 2,336 | |
| | | |
| Cash Flows from Investing Activities: | | | |
| Capital expenditures, net of flight equipment purchase deposit returns | (2,280) | | | (1,571) | |
| Purchases of short-term and other investments | (8,384) | | | (47) | |
| Proceeds from sale of short-term and other investments | 1,061 | | | 271 | |
| Proceeds from sale of property and equipment | 184 | | | 25 | |
| Other, net | (23) | | | (2) | |
| Net cash used in investing activities | (9,442) | | | (1,324) | |
| | | |
| Cash Flows from Financing Activities: | | | |
| Proceeds from issuance of debt, net of discounts and fees | 210 | | | 11,098 | |
| Proceeds from equity issuance | — | | | 532 | |
| Payments of long-term debt, finance leases and other financing liabilities | (2,605) | | | (4,632) | |
| Other, net | (77) | | | (27) | |
| Net cash provided by (used in) financing activities | (2,472) | | | 6,971 | |
| Net increase (decrease) in cash, cash equivalents and restricted cash | (7,006) | | | 7,983 | |
| Cash, cash equivalents and restricted cash at beginning of the period | 18,533 | | | 11,742 | |
| Cash, cash equivalents and restricted cash at end of the period (a) | $ | 11,527 | | | $ | 19,725 | |
| | | |
| Investing and Financing Activities Not Affecting Cash: | | | |
| Property and equipment acquired through the issuance of debt, finance leases and other | $ | — | | | $ | 801 | |
| Lease modifications and lease conversions | 61 | | | 111 | |
| Right-of-use assets acquired through operating leases | 98 | | | 627 | |
| Investment interests received in exchange for goods and services | 93 | | | 129 | |
(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheet:
| | | | | | | | | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 11,258 | | | $ | 19,256 | |
| Restricted cash — Current | 61 | | | 254 | |
| Restricted cash — Non-Current | 208 | | | 215 | |
| Total cash, cash equivalents and restricted cash | $ | 11,527 | | | $ | 19,725 | |
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
UNITED AIRLINES HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED STOCKHOLDERS' EQUITY (UNAUDITED)
(In millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Common
Stock | | Additional
Capital Invested | | Treasury Stock | | Retained Earnings (Accumulated Deficit) | | Accumulated
Other Comprehensive Income (Loss) | | Total |
| Shares | | Amount | | | | | |
| Balance at June 30, 2022 | 326.7 | | | $ | 4 | | | $ | 8,970 | | | $ | (3,551) | | | $ | (515) | | | $ | (944) | | | $ | 3,964 | |
| Net income | — | | | — | | | — | | | — | | | 942 | | | — | | | 942 | |
| Other comprehensive loss | — | | | — | | | — | | | — | | | — | | | (20) | | | (20) | |
| Stock-settled share-based compensation | — | | | — | | | 15 | | | — | | | — | | | — | | | 15 | |
| Stock issued for share-based awards, net of shares withheld for tax | 0.2 | | | — | | | (15) | | | 18 | | | (6) | | | — | | | (3) | |
| Balance at September 30, 2022 | 326.9 | | | $ | 4 | | | $ | 8,970 | | | $ | (3,533) | | | $ | 421 | | | $ | (964) | | | $ | 4,898 | |
| | | | | | | | | | | | | |
| Balance at December 31, 2021 | 323.8 | | $ | 4 | | | $ | 9,156 | | | $ | (3,814) | | | $ | 625 | | | $ | (942) | | | $ | 5,029 | |
| Net loss | — | | | — | | | — | | | — | | | (106) | | | — | | | (106) | |
| Other comprehensive loss | — | | | — | | | — | | | — | | | — | | | (22) | | | (22) | |
| Stock-settled share-based compensation | — | | | — | | | 70 | | | — | | | — | | | — | | | 70 | |
| Stock issued for share-based awards, net of shares withheld for tax | 3.1 | | | — | | | (256) | | | 281 | | | (98) | | | — | | | (73) | |
| Balance at September 30, 2022 | 326.9 | | | $ | 4 | | | $ | 8,970 | | | $ | (3,533) | | | $ | 421 | | | $ | (964) | | | $ | 4,898 | |
| | | | | | | | | | | | | |
| Balance at June 30, 2021 | 323.6 | | | $ | 4 | | | $ | 9,042 | | | $ | (3,832) | | | $ | 804 | | | $ | (1,114) | | | $ | 4,904 | |
| Net income | — | | | — | | | — | | | — | | | 473 | | | — | | | 473 | |
| Other comprehensive loss | — | | | — | | | — | | | — | | | — | | | (10) | | | (10) | |
| Stock-settled share-based compensation | — | | | — | | | 69 | | | — | | | — | | | — | | | 69 | |
| Stock issued for share-based awards, net of shares withheld for tax | 0.2 | | | — | | | (17) | | | 18 | | | (6) | | | — | | | (5) | |
| Balance at September 30, 2021 | 323.8 | | | $ | 4 | | | $ | 9,094 | | | $ | (3,814) | | | $ | 1,271 | | | $ | (1,124) | | | $ | 5,431 | |
| | | | | | | | | | | | | |
| Balance at December 31, 2020 | 311.8 | | | $ | 4 | | | $ | 8,366 | | | $ | (3,897) | | | $ | 2,626 | | | $ | (1,139) | | | $ | 5,960 | |
| Net loss | — | | | — | | | — | | | — | | | (1,318) | | | — | | | (1,318) | |
| Other comprehensive income | — | | | — | | | — | | | — | | | — | | | 15 | | | 15 | |
| Stock-settled share-based compensation | — | | | — | | | 169 | | | — | | | — | | | — | | | 169 | |
| Issuance of common stock | 11.0 | | | — | | | 532 | | | — | | | — | | | — | | | 532 | |
| Warrants issued | — | | | — | | | 99 | | | — | | | — | | | — | | | 99 | |
| Stock issued for share-based awards, net of shares withheld for tax | 1.0 | | | — | | | (72) | | | 83 | | | (37) | | | — | | | (26) | |
| Balance at September 30, 2021 | 323.8 | | | $ | 4 | | | $ | 9,094 | | | $ | (3,814) | | | $ | 1,271 | | | $ | (1,124) | | | $ | 5,431 | |
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
UNITED AIRLINES, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
(In millions)
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended
September 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| Operating revenue: | | | | | | | |
| Passenger revenue | $ | 11,653 | | | $ | 6,637 | | | $ | 28,830 | | | $ | 13,319 | |
| Cargo | 498 | | | 519 | | | 1,699 | | | 1,622 | |
| Other operating revenue | 726 | | | 594 | | | 2,026 | | | 1,501 | |
| Total operating revenue | 12,877 | | | 7,750 | | | 32,555 | | | 16,442 | |
| | | | | | | |
| Operating expense: | | | | | | | |
| Aircraft fuel | 3,755 | | | 1,710 | | | 9,796 | | | 3,793 | |
| Salaries and related costs | 2,843 | | | 2,487 | | | 8,466 | | | 6,987 | |
| Landing fees and other rent | 639 | | | 652 | | | 1,919 | | | 1,735 | |
| Aircraft maintenance materials and outside repairs | 619 | | | 346 | | | 1,553 | | | 917 | |
| Depreciation and amortization | 610 | | | 623 | | | 1,832 | | | 1,866 | |
| Regional capacity purchase | 596 | | | 520 | | | 1,728 | | | 1,546 | |
| Distribution expenses | 482 | | | 218 | | | 1,101 | | | 442 | |
| Aircraft rent | 65 | | | 58 | | | 193 | | | 165 | |
| Special charges (credits) | 20 | | | (1,098) | | | 124 | | | (3,423) | |
| Other operating expenses | 1,789 | | | 1,197 | | | 4,881 | | | 3,027 | |
| Total operating expense | 11,418 | | | 6,713 | | | 31,593 | | | 17,055 | |
| Operating income (loss) | 1,459 | | | 1,037 | | | 962 | | | (613) | |
| | | | | | | |
| Nonoperating income (expense): | | | | | | | |
| Interest expense | (455) | | | (449) | | | (1,299) | | | (1,228) | |
| Interest capitalized | 27 | | | 18 | | | 73 | | | 57 | |
| Interest income | 104 | | | 11 | | | 142 | | | 30 | |
| Unrealized gains (losses) on investments, net | 28 | | | (34) | | | (12) | | | 91 | |
| Miscellaneous, net | (9) | | | 21 | | | (4) | | | (48) | |
| Total nonoperating expense, net | (305) | | | (433) | | | (1,100) | | | (1,098) | |
| Income (loss) before income tax expense (benefit) | 1,154 | | | 604 | | | (138) | | | (1,711) | |
| Income tax expense (benefit) | 212 | | | 130 | | | (33) | | | (394) | |
| Net income (loss) | $ | 942 | | | $ | 474 | | | $ | (105) | | | $ | (1,317) | |
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
UNITED AIRLINES, INC.
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(In millions)
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended
September 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| Net income (loss) | $ | 942 | | | $ | 474 | | | $ | (105) | | | $ | (1,317) | |
| | | | | | | |
| Other comprehensive income (loss), net of tax: | | | | | | | |
| Employee benefit plans | — | | | (9) | | | 9 | | 17 | |
| Investments and other | (20) | | | (1) | | | (31) | | | (2) | |
| Total other comprehensive income (loss), net of tax | (20) | | | (10) | | | (22) | | | 15 | |
| | | | | | | |
| Total comprehensive income (loss), net | $ | 922 | | | $ | 464 | | | $ | (127) | | | $ | (1,302) | |
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
UNITED AIRLINES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions, except shares)
| | | | | | | | | | | |
| | September 30, 2022 | | December 31, 2021 |
| ASSETS | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 11,258 | | | $ | 18,283 | |
| Short-term investments | 7,437 | | | 123 | |
| Restricted cash | 61 | | | 37 | |
Receivables, less allowance for credit losses (2022 — $28; 2021 — $28) | 2,034 | | | 1,663 | |
Aircraft fuel, spare parts and supplies, less obsolescence allowance (2022 — $595; 2021 — $546) | 1,116 | | | 983 | |
| Prepaid expenses and other | 783 | | | 745 | |
| Total current assets | 22,689 | | | 21,834 | |
| Operating property and equipment: | | | |
| Flight equipment | 40,867 | | | 39,584 | |
| Other property and equipment | 9,195 | | | 8,764 | |
| Purchase deposits for flight equipment | 2,532 | | | 2,215 | |
| Total operating property and equipment | 52,594 | | | 50,563 | |
| Less — Accumulated depreciation and amortization | (20,088) | | | (18,489) | |
| Total operating property and equipment, net | 32,506 | | | 32,074 | |
| | | |
| Operating lease right-of-use assets | 4,280 | | | 4,645 | |
| | | |
| Other assets: | | | |
| Goodwill | 4,527 | | | 4,527 | |
Intangibles, less accumulated amortization (2022 — $1,462; 2021 — $1,544) | 2,772 | | | 2,803 | |
| Restricted cash | 208 | | | 213 | |
| Deferred income taxes | 673 | | | 631 | |
Investments in affiliates and other, less allowance for credit losses (2022 — $695; 2021 —$622) | 1,285 | | | 1,420 | |
| Total other assets | 9,465 | | | 9,594 | |
| Total assets | $ | 68,940 | | | $ | 68,147 | |
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UNITED AIRLINES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions, except shares)
| | | | | | | | | | | |
| | September 30, 2022 | | December 31, 2021 |
| LIABILITIES AND STOCKHOLDER'S EQUITY | | | |
| Current liabilities: | | | |
| Accounts payable | $ | 3,534 | | | $ | 2,562 | |
| Accrued salaries and benefits | 1,841 | | | 2,121 | |
| Advance ticket sales | 8,747 | | | 6,354 | |
| Frequent flyer deferred revenue | 2,642 | | | 2,239 | |
| Current maturities of long-term debt | 2,955 | | | 3,002 | |
| Current maturities of other financial liabilities | 906 | | | 834 | |
| Current maturities of operating leases | 546 | | | 556 | |
| Current maturities of finance leases | 72 | | | 76 | |
| Other | 749 | | | 563 | |
| Total current liabilities | 21,992 | | | 18,307 | |
| | | |
| Long-term debt | 28,490 | | | 30,361 | |
| Long-term obligations under operating leases | 4,803 | | | 5,152 | |
| Long-term obligations under finance leases | 112 | | | 219 | |
| | | |
| Other liabilities and deferred credits: | | | |
| Frequent flyer deferred revenue | 3,936 | | | 4,043 | |
| Pension liability | 1,948 | | | 1,920 | |
| Postretirement benefit liability | 946 | | | 1,000 | |
| Other financial liabilities | 492 | | | 863 | |
| Other | 1,355 | | | 1,284 | |
| Total other liabilities and deferred credits | 8,677 | | | 9,110 | |
| Commitments and contingencies | | | |
| Stockholder's equity: | | | |
Common stock at par, $0.01 par value; authorized 1,000 shares; issued and outstanding 1,000 shares at both September 30, 2022 and December 31, 2021 | — | | | — | |
| Additional capital invested | 387 | | | 317 | |
| Retained earnings | 2,872 | | | 2,977 | |
| Accumulated other comprehensive loss | |
