United(US:UAL)2025-02-27 21:04Debt and Interest Rates - The company has $8.5 billion in variable rate debt, with a projected increase in interest expense of $64 million for a 100 basis point increase in rates [280]. - A 100 basis point increase in interest rates would result in an increase in the company's interest income of approximately $144 million during 2025 [281]. - The company has $5.3 billion of loans from non-U.S. entities that could be affected by changes in tax laws [280]. - The company manages its debt structure and foreign exchange exposure to control financial risks and maintain long-term financial flexibility [279]. - The company does not foresee significant changes in its strategies to manage market risk in the near future [279]. Revenue and Income - Total operating revenue for 2024 reached $57,063 million, a 6.3% increase from $53,717 million in 2023 [319]. - Passenger revenue increased to $51,829 million in 2024, up 5.7% from $49,046 million in 2023 [319]. - Net income for 2024 was $3,149 million, representing a 20.2% increase compared to $2,618 million in 2023 [319]. - Earnings per share (EPS) for 2024 were $9.58, up from $7.98 in 2023, reflecting a 20% increase [319]. - Operating income improved to $5,099 million in 2024, compared to $4,214 million in 2023, reflecting a growth of 21% [331]. Operating Expenses - Total operating expenses rose to $51,967 million in 2024, a 4.9% increase from $49,506 million in 2023 [319]. - Salaries and related costs increased to $16,678 million in 2024, up from $14,787 million in 2023, reflecting a rise of 12.8% [331]. - Operating expenses for 2024 totaled $51,964 million, an increase of 5.9% from $49,503 million in 2023 [331]. Cash and Assets - Cash and cash equivalents at the end of 2024 were $8,946 million, an increase from $6,334 million at the end of 2023 [326]. - Total assets increased to $74,083 million in 2024, up from $71,104 million in 2023 [324]. - Net cash provided by operating activities for 2024 was $9,445 million, compared to $6,911 million in 2023, marking a 36.6% increase [326]. Stockholder's Equity - Total stockholder's equity grew to $12,644 million in 2024, compared to $9,294 million in 2023, representing a growth of 36.5% [336]. - Retained earnings increased to $9,487 million in 2024, up from $6,336 million in 2023 [336]. Comprehensive Income - The company reported a total comprehensive income of $3,399 million for 2024, compared to $2,381 million in 2023 [321]. - Other comprehensive income for 2024 was $250 million, compared to a loss of $237 million in 2023 [333]. Fuel and Currency Exposure - A one-dollar change in the price of a barrel of aircraft fuel would change the company's projected fuel expense by approximately $112 million in 2025 [283]. - A uniform 1% strengthening of the U.S. dollar would decrease pre-tax income by approximately $14 million for the year ending December 31, 2025 [285]. - The company does not currently hedge fuel price volatility but regularly reviews its policy based on market conditions [283]. Intangible Assets and Impairment - The carrying value of the company's China route authority intangible asset is $1.0 billion, subject to annual impairment testing [297]. - The fair value estimate of the China intangible asset is sensitive to significant assumptions such as forecasted revenues and discount rates, which could trigger impairment charges if adversely changed [298]. Employee and Pension Obligations - The accumulated benefit obligation for pension benefits was $3,752 million as of December 31, 2024, down from $3,910 million in 2023 [415]. - The projected benefit obligation at the end of 2024 was $4,315 million, compared to $4,550 million at the end of 2023 [415]. - The net periodic benefit cost for pension benefits in 2024 was $108 million, compared to $102 million in 2023, indicating a rise of about 5.9% [417]. Capital Expenditures and Investments - Capital expenditures for 2024 were $5,615 million, a decrease from $7,171 million in 2023 [339]. - United's firm commitments for aircraft and related capital expenditures total approximately $54.4 billion through 2029 [456]. Special Charges and Nonoperating Items - The company recorded total operating special charges of $112 million in 2024, compared to $949 million in 2023 [468]. - Nonoperating special charges and unrealized losses on investments totaled $327 million in 2024, compared to a gain of $16 million in 2023 [468].