Exhibit 12.1
United Continental Holdings, 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) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
Earnings (losses): | ||||||||||||||||||||
Earnings (loss) before income taxes & adjustments for minority interest | $ | (723) | $ | 846 | $ | 255 | $ | (667) | $ | (5,419) | ||||||||||
Add (deduct): | ||||||||||||||||||||
Fixed charges, from below | 1,526 | 2,017 | 1,292 | 949 | 910 | |||||||||||||||
Amortization of capitalized interest | 9 | 7 | 5 | 3 | 2 | |||||||||||||||
Distributed earnings of affiliates | — | 1 | 2 | 2 | 2 | |||||||||||||||
Interest capitalized | (37) | (32) | (15) | (10) | (20) | |||||||||||||||
Equity earnings in affiliates | (4) | (6) | (4) | (4) | (6) | |||||||||||||||
Minority interest | (1) | (1) | (2) | (1) | (2) | |||||||||||||||
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Earnings (loss) as adjusted | $ | 770 | $ | 2,832 | $ | 1,533 | $ | 272 | $ | (4,533) | ||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expensed and capitalized and amortization of premiums, debt discounts, issuance costs, and capital expenditures (a) | $ | 835 | $ | 949 | $ | 798 | $ | 577 | $ | 571 | ||||||||||
Portion of rental expense representative of the interest factor | 691 | 1,068 | 494 | 372 | 339 | |||||||||||||||
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Fixed charges, as above | 1,526 | 2,017 | 1,292 | 949 | 910 | |||||||||||||||
Preferred stock dividend requirements (pre-tax) (b) | — | — | — | — | 3 | |||||||||||||||
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Fixed charges including preferred stock dividends | $ | 1,526 | $ | 2,017 | $ | 1,292 | $ | 949 | $ | 913 | ||||||||||
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Ratio of earnings to fixed charges | (c) | 1.40 | 1.19 | (d) | (e) | |||||||||||||||
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Ratio of earnings to fixed charges and preferred stock dividends | N/A | N/A | N/A | N/A | (e) | |||||||||||||||
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(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 $756 million in 2012.
(d) Earnings were inadequate to cover fixed charges by $677 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.