Heavy Loads For July

[mweiss]

...please do not preach to us. Your opinions are truly just that ... YOUR OPINIONS.

I don't give very many opinions around here. Mostly, I give projections, and I compile facts. I'll also ask pointed questions, particularly when I see flaws in someone's argument. Sometimes I'll even tell what I'd do in a given situation, though that's rare because I don't feel comfortable making such projections without firsthand experience.

There's really not much point in my handing out opinions, except in the Just Conversation section.

Look back at my posts in this thread. It's all about trying to look at the big picture. Load factors are up, and yields are down, so Q3 is hardly a slam-dunk for profitability. No opinions there, just a broader picture. Nothing in there that said that I recommend you take concessions, or that I think you should quit, or that I think you're all a bunch of lazy union bums. Just the facts, and some reasonable inferences.

 

[WestCoastGuy]

Mweiss...point well taken. Thank you for your OPINIONS

 

[mweiss]

In addition, goodwill of $2.41 billion was recorded to reflect the excess of the estimated fair value of liabilities and equity over identifiable assets.

Hmmm...I wonder what the details are behind that. It sounds rather odd.

 

[usair_begins_with_u]

American Institute of Certified Public Accountants Statement of Position 90-7, Financial Reporting by Entities in Reorganization Under the Bankruptcy Code ("SOP 90-7"), required that so called "Fresh Start" accounting applied to a qualifying company emerging from bankruptcy should be applied in conformity with the requirements of APB 16 and APB 17.

One provision of SOP 90-7 specifically addressed in SFAS 142 relates to the rather bulky term, "reorganization value in excess of amounts allocable to identifiable assets." As specified in SFAS 142, "reorganization value in excess of amounts allocable to identifiable assets" will be captioned "goodwill" on the reorganized company's balance sheet.

Im still researching this, but what I gather so far is... what used to be the capital surplus (equity) account became "goodwill" on UAirs fresh start balance sheet when they came out of Chap 11... This would be normal for as per FASB regulations.

Capital surplus is the amount that the corporation received in excess of the stock's par value.

 

[mweiss]

Yeah, I knew about the capital surplus.

Thanks for the info on the goodwill. Now it makes perfect sense.