US Airways 2003 Annual Report Download - page 71

Table of Contents
Predecessor
Company
Debt
Discharge (a)
Emergence
Financings (b)
Fresh-start
Adjustments (c)
Successor
Company
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current Liabilities
Current maturities of long-term debt $ 368 $ (298) $ — $ — $ 70
Accounts payable 222 204 — (6) 420
Payable to related parties, net — — — 37 37
Traffic balances payable and unused tickets 923 — — — 923
Accrued aircraft rent 76 — — — 76
Accrued salaries, wages and vacation 238 — — — 238
Other accrued expenses 396 100 — (62) 434
Total Current Liabilities 2,223 6 — (31) 2,198
Noncurrent Liabilities and Deferred Credits
Long-term debt, net of current maturities 99 1,809 1,040 (121) 2,827
Accrued aircraft rent — 128 — (128) —
Deferred gains and credits, net — 359 — 141 500
Postretirement benefits other than pensions 1,471 — — 118 1,589
Employee benefit liabilities and other 868 193 — 7 1,068
Total Noncurrent Liabilities and Deferred Credits 2,438 2,489 1,040 17 5,984
Liabilities Subject to Compromise 6,632 (6,632) — — —
Stockholder's Equity (Deficit)
Common stock — — — — —
Paid-in capital 2,661 — 169 (2,481) 349
Accumulated deficit (5,421) 3,655 — 1,766 —
Deferred compensation — — (169) — (169)
Receivable from parent company (2,262) — 237 2,025 —
Accumulated other comprehensive loss (796) — — 796 —
Total Stockholder's Equity (Deficit) (5,818) 3,655 237 2,106 180
$ 5,475 $ (482) $ 1,277 $ 2,092 $ 8,362
(a) Reflects the discharge or reclassification of estimated liabilities subject to compromise. Most of these obligations are only entitled to receive such
distributions of cash and common stock as provided under the Plan of Reorganization. A portion of the estimated liabilities subject to compromise was
restructured and will continue, as restructured, to be liabilities of the Successor Company. Also reflects repayment of the RSA and GE DIP Facilities.
(b) Reflects the $240 million RSA Investment, proceeds from the $1 billion ATSB Loan and proceeds of $63 million from the GE liquidity facility. Also
reflects the issuance of US Airways Group Class A Common Stock and Class A-1 Warrants to certain of the Company's labor groups and ATSB Loan
participants, respectively.
(c) As of March 31, 2003, the Company recorded $1.11 billion of adjustments to reflect assets and liabilities at fair value (including a $1.12 billion liability
increase related to the revaluation of the Company's remaining defined benefit pension plans and postretirement benefit plans and a $333 million write-
up of gates, slots and routes) and the write-off of the predecessor Company's equity accounts. 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. Subsequent to March 31, 2003, the Company recorded an
additional $62 million of adjustments to reflect assets and liabilities at fair value, including a $281 million decrease to Property and Equipment, net, a
$121 million decrease to Long-term debt, net of current maturities, a $13 million increase to Deferred gains and credits, net, a $54 million increase to
Other intangibles, net, a $15 million decrease to Employee benefit liabilities and other and a $6 million decrease to Accounts payable. In addition, a $6
million adjustment was made to paid-in capital reflecting a reallocation of US Airways Group equity as a result of additional fair value adjustments to
assets at certain US Airways Group subsidiaries other than US Airways. An adjustment of $62 million was also made to Goodwill as a result of the
above fair value adjustments.
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