US Airways 2003 Annual Report Download - page 38

Table of Contents
Other investing reflects $24 million in proceeds received related to the sale of the Company's investment in Hotwire, Inc.
For 2002, net cash provided by investing activities was $86 million. Investing activities included cash outflows of $135 million related to capital
expenditures. Capital expenditures included $106 million for three A321 aircraft (two other A321s were purchased in noncash transactions) with the balance
related to rotables, ground equipment and miscellaneous assets. Proceeds from disposition of property includes, among other things, proceeds related to
surplus aircraft and related parts. During the first quarter of 2002, US Airways entered into agreements to sell 97 surplus DC-9, B737-200 and MD-80 aircraft.
Decrease (increase) in short-term investments reflects proceeds from the sale of short-term investments.
For 2001, investing activities included cash outflows of $1.07 billion related to capital expenditures. Capital expenditures included $992 million for the
purchase of 23 A321 aircraft and three A330 aircraft as well as purchase deposits on future aircraft deliveries with the balance related to rotables, ground
equipment and miscellaneous assets. The net cash used for investing activities was $840 million.
The Company, in the ordinary course of business, withholds from employees and collects from passengers funds that are required to be paid to
applicable governmental authorities, and include withholding for payroll taxes, transportation excise taxes, passenger facility charges, transportation security
charges and other related fees. During the second quarter of 2002, the Company established trusts to fund these obligations. The initial funding (which totaled
approximately $201 million) and the net cash flows of the trust are reflected in Decrease (increase) in restricted cash on the Company's Consolidated
Statements of Cash Flows. The funds in the trust accounts, which totaled $164 million and $208 million as of December 31, 2003 and 2002, respectively, are
classified as Restricted cash on the Company's Consolidated Balance Sheets, including $124 million and $146 million in current Restricted cash and $39
million and $62 million in noncurrent Restricted cash, respectively.
Net cash provided by financing activities during 2003 was $782 million. US Airways received proceeds of $1 billion from the ATSB Loan.
Additionally, prior to emergence from Chapter 11 the Company borrowed $69 million under a debtor-in-possession facility provided by RSA (RSA DIP
Facility) and $62 million under a debtor-in-possession liquidity facility provided by General Electric (GE DIP Facility). The Company borrowed $114 million
under an exit liquidity facility provided by GE and $20 million on a credit facility provided by GE (see below). The Company also received proceeds of $34
million related to a private placement offering (see below). The Company used a portion of the proceeds it received in connection with its emergence from
Chapter 11 to repay $369 million that was then outstanding under the RSA DIP Facility (including the $69 million discussed above) on the Effective Date.
The Company also used a portion of the proceeds to repay the $62 million then outstanding under the GE DIP Facility. The Company also made principal
payments of debt of $85 million including a $24 million required prepayment on the ATSB Loan related to the sale of Hotwire, Inc.
Net cash provided by financing activities during 2002 was $334 million. US Airways received proceeds of $116 million from the mortgage financing of
three A321 aircraft (two other A321s were financed in noncash transactions). Additionally, US Airways received proceeds of $33 million with the private
placement of pass through certificates that partially financed five previously delivered A330s and $18 million from an engine manufacturer credit facility (see
below). The Company also borrowed $300 million under the RSA DIP Facility and $75 million under a senior secured debtor-in-possession financing facility
provided by Credit Suisse First Boston, Cayman Islands Branch, and Bank of America, N.A., with participation from the Texas Pacific Group (Original DIP
facility). The Company used a portion of the RSA DIP Facility funds to repay the full $75 million that was then outstanding under the Original DIP Facility.
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