Originally Posted by
rmadisonwi
If it’s actually revenue, then the answer would be none. UA doesn’t get to recognize the revenue until they have delivered the service. Otherwise, it’s a cash asset offset by an ETC liability, but no revenue actually occurs.
Are you sure about that? If you’re saying it’s an asset, doesn’t that mean it’s sitting in a bank somewhere? A plane secured by a loan is an asset. I’m sitting at a window seat at the LAX UC and I can see a UA asset in the form of a 739. Where is the money secured by ETCs? I think it’s sitting in the pockets of vendors, Boeing, employees, etc.
I’m not saying you’re wrong (I’m not an accountant), but it’s interesting to me UA is holding a bunch of money to offset ETCs.