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United Airlines Holdings Annual Report (Amendment), Year Ended May 9, 2001

Filing Date
Filed May 9, 2001
Period End
May 9, 2001
Security
UAL
In the record · 2016–202610-K1110-Q338-K265

UAL filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 265 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Apr ’17Apr ’17
  2. Material agreement8-K · May ’19May ’19
  3. Leadership change8-K · Jul ’21Jul ’21
  4. Leadership change8-K · May ’25May ’25

01—Abstract

Summary

Summary of the 10-K/A filed May 9, 2001. Cited figures are marked; the original filing is the authoritative source.

This Form 10-K/A (Amendment No. 1) from UAL Corporation for the fiscal year ended December 31, 2000 restates basic earnings per share retroactively under EITF Topic D-95 and replaces Exhibit 10.6.

It reports operating revenues of $19.35 billiona in 2000, up from $18.03 billion in 1999, but earnings from operations fell to $654 million from $1.39 billion. Net earnings were $50 million in 2000, compared with $1.24 billion in 1999, after a $209 million net-of-tax cumulative effect charge from the adoption of SAB 101 for Mileage Plus partner revenue. Restated basic earnings per share were $0.04 for 2000 versus $10.96 for 1999 (previously reported as $0.08 and $21.20).

Fuel expense rose to $2.51 billionb from $1.78 billion. Balance sheet growth was driven by financing: cash and cash equivalents increased to $1.68 billion from $310 million, and long-term debt rose to $4.69 billion from $2.65 billion, including $2.0 billion of enhanced equipment trust certificates issued in 2000 and additional special facility bonds. Stockholders' equity was $5.19 billion at year-end 2000, essentially flat versus $5.15 billion a year earlier.

Commitments for aircraft and equipment purchases were approximately $4.7 billionc after advance payments, with an estimated $2.5 billion to be spent in 2001. The amendment is limited to the financial statements and the exhibit index.

Its primary investor relevance is the restated per-share figures, which reflect the impact of participating ESOP preferred stock on the share count. Diluted earnings per share were unchanged at $0.04d for 2000, and the auditor's report is dated May 9, 2001 for the EPS restatement note.

02—Key points

Key Highlights

  1. Net earnings were $50 million in 2000, down from $1.24 billion in 1999, after a $209 million net-of-tax cumulative effect of accounting change.
  2. Earnings from operations fell to $654 million in 2000 from $1.39 billion in 1999, while operating revenues rose to $19.35 billion from $18.03 billion.
  3. Basic EPS was restated to $0.04 for 2000 (previously $0.08) and $10.96 for 1999 (previously $21.20), reflecting the treatment of participating convertible ESOP preferred stock under EITF Topic D-95; diluted EPS was unchanged at $0.04.
  4. Aircraft fuel expense increased to $2.51 billion from $1.78 billion, and salaries and related costs rose to $6.73 billion from $5.67 billion.
  5. Long-term debt increased to $4.69 billion from $2.65 billion, and cash and cash equivalents rose to $1.68 billion from $310 million.
  6. Commitments for purchases of property and equipment, principally aircraft, were approximately $4.7 billion after advance payments, with $2.5 billion expected to be spent in 2001.
  7. Approximately 80% of United's employees are represented by labor organizations, and negotiations with the IAM contracts, which became amendable in July 2000, were in process.

03—Questions

Frequently Asked Questions

  1. Why were UAL's basic earnings per share restated?

    The company restated basic earnings per share for prior periods following the EITF's May 3, 2001 Topic D-95 guidance. Participating convertible securities, including UAL's ESOP preferred stocks, must be included in basic EPS when dilutive. Basic weighted average shares for 2000 were restated to 108.3 million from 51.3 million as reported.

  2. What drove the decline in 2000 earnings?

    Earnings from operations fell to $654 million from $1.39 billion. Operating expenses grew faster than revenue, with aircraft fuel up to $2.51 billion from $1.78 billion and salaries and related costs up to $6.73 billion from $5.67 billion. The $209 million cumulative effect charge from the SAB 101 accounting change also reduced net earnings.

  3. How did the company finance its operations and growth in 2000?

    Long-term debt rose to $4.69 billion from $2.65 billion. The filing notes enhanced equipment trust certificates issued in July 2000 ($921 million, with net proceeds of $622 million after refinancing operating leases) and December 2000 ($1.5 billion). Cash and cash equivalents increased to $1.68 billion, and operating cash flow was $2.47 billion.

  4. What does this amendment change?

    Amendment No. 1 restates Item 8 to retroactively revise basic earnings per share and replaces Exhibit 10.6, the Second Amendment to the UAL Corporation Employee Stock Ownership Plan dated August 17, 1995. Other items in the original filing were not revised by this amendment.

  5. What are the company's major future cash commitments?

    At December 31, 2000, commitments for purchases of property and equipment, principally aircraft (A319, A320, B767 and B777), approximated $4.7 billion after advance payments. An estimated $2.5 billion will be spent in 2001, $1.7 billion in 2002 and $0.5 billion in 2003.

04—Continue

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