Old Oct 16, 19, 9:22 am
  #14  
findark
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Originally Posted by goodeats21 View Post
Are those costs part of the exclusions? Not sure how to parse the "imputed interested on certain finance leases" language. Would assume Boeing is on the hook for some (all?) of those types of costs?
Not related - that has to due with some technicalities about the treatment of various lease payments on some E45s that were converted to rent-to-own:

During the third quarter of 2018, United entered into an agreement with the lessor of 54 Embraer ERJ 145 aircraft to purchase those aircraft in 2019. The provisions of the new lease agreement resulted in a change in accounting classification of these new leases from operating leases to finance leases up until the purchase date. As a result of this change, the company recognized $22 million and $68 million, respectively, of additional interest expense in the three and nine months ended September 30, 2019, and $13 million of additional interest expense in the third quarter of 2018.
I don't see anything in the books (yet) accounting for Boeing making United whole for the grounding, but I'm not entirely up on what the situation is there and if it would be public if it were.

Amortization of a couple of dozen MAX 9s for part of the year is not going to be a huge financial hit, but it's not increasing profit either.
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