EX-12 8 a06-25698_2ex12.htm EX-12

Exhibit 12

UAL Corporation and Subsidiary Companies
Computation of Ratio of Earnings to Fixed Charges
and Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements

 

 

Successor

 

Predecessor

 

(In millions)

 

Period from
February 1 to
December 31,

 

Period from
January 1 to
January 31,

 

 

 

 

 

 

 

 

 

 

 

2006

 

2006

 

2005

 

2004

 

2003

 

2002

 

Earnings (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) before income taxes & adjustments for minority interest and equity earnings/(losses) in affiliates

 

$

47

 

$

22,846

 

$

(21,178

)

$

(1,724

)

$

(2,802

)

$

(3,197

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges, from below

 

1,051

 

63

 

775

 

606

 

639

 

749

 

Distributed earnings of affiliates

 

4

 

—

 

3

 

2

 

2

 

2

 

Amortization of capitalized interest

 

—

 

1

 

14

 

16

 

17

 

17

 

Minority interest

 

(4

)

—

 

—

 

—

 

—

 

—

 

Interest capitalized

 

(15

)

—

 

3

 

(1

)

(3

)

(25

)

Earnings (loss) as adjusted

 

$

1,083

 

$

22,910

 

$

(20,383

)

$

(1,101

)

$

(2,147

)

$

(2,454

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed and capitalized and amortization of debt discounts and issuance costs (a)

 

$ 

728

 

$ 

42

 

$ 

484

 

$ 

448

 

$ 

523

 

$ 

564

 

Portion of rental expense representative of the interest factor

 

323

 

21

 

291

 

158

 

116

 

185

 

Fixed charges, as above

 

1,051

 

63

 

775

 

606

 

639

 

749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

18

 

1

 

10

 

10

 

10

 

10

 

Fixed charges including preferred stock dividends

 

$

1,069

 

$

64

 

$

785

 

$

616

 

$

649

 

$

759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

1.03

 

363.65

 

(c)

 

(c)

 

(c)

 

(c)

 

Ratio of earnings to fixed charges and preferred dividend requirements

 

1.01

 

357.97

 

(c)

 

(c)

 

(c)

 

(c)

 

(a)             Amortization of debt discounts includes amortization of fresh-start valuation discounts.

(b)            Successor Company dividends were adjusted using an estimated 2006 effective tax rate of approximately 48%.

(c)             Earnings were inadequate to cover both fixed charges and fixed charges and preferred dividend requirements by $21.2 billion in 2005, $1.7 billion in 2004, $2.8 billion in 2003 and $3.2 billion in 2002.