US Airways 2004 Annual Report Download - page 96

Table of Contents
AMERICA WEST AIRLINES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED
Of this amount, approximately $10.3 million, principally related to losses on sale-leaseback transactions, fleet restructuring costs, professional fees and
severance was accrued.
In the third quarter of 2002, AWA recorded a $2.0 million reduction in special charges due to a revision of the estimated costs related to the early
termination of certain aircraft leases.
The following table presents the payments and other settlements made during 2002, 2003 and 2004 and the remaining special charge accruals as of
December 31, 2004.
Contract
Sale- Fleet Professional Reductions- Termination/
Leaseback Restructuring Fees in-force Other Costs Total
(in thousands)
Balance at December 31, 2001 $ — $ 16,786 $ — $ 83 $ — $ 16,869
Special charges 6,328 10,582 1,489 631 — 19,030
Reclassification of aircraft rent due to restructuring — 4,696 — — — 4,696
Payments — (14,516) (1,489) (714) — (16,719)
Issuance of convertible notes — (5,000) — — — (5,000)
Forfeiture of security deposits — (2,289) — — — (2,289)
Loss on sale-leasebacks (3,852) — — — — (3,852)
Reclassification of capitalized maintenance for parked aircraft — (902) — — — (902)
Revision of estimate — (6,000) — — — (6,000)
Balance at December 31, 2002 2,476 3,357 — — — 5,833
Special charges (510) 1,545 — 2,310 10,634 13,979
Payments — (896) — (2,003) (7,446) (10,345)
Loss on sale-leasebacks (1,361) — — — — (1,361)
Write-off of leasehold improvements due to Columbus hub closure — — — — (539) (539)
Impairment loss — (2,617) — — — (2,617)
Balance at December 31, 2003 605 1,389 — 307 2,649 4,950
Special charges (600) 1,913 — — — 1,313
Payments (5) (2,908) — (242) (2,528) (5,683)
Revision of estimate — — — (65) — (65)
Reversal of maintenance reserves — 3,000 — — — 3,000
Write-off of leasehold improvements, engine overhauls and deferred rent — (2,751) — — — (2,751)
Balance at December 31, 2003 $ — $ 643 $ — $ — $ 121 $ 764
AWA expects to make payments related to these special charges through the fourth quarter of 2005.
12. Nonoperating Income (Expenses) — Other, Net
In connection with the term loan refinancing with GECC, AWA wrote off $1.3 million of debt issue costs associated to the term loan with Mizuho in 2004.
This amount was recorded in nonoperating expenses.
The changes in the fair value of AWA's derivative instruments and the net realized gains and losses for the settled hedge transactions was a $30.5 million
credit in 2004, $10.7 million credit in 2003 and $0.6 million expense in 2002.
In April 2003, the Senate and House of Representatives of the United States of America passed, and the President signed, the Emergency Wartime
Supplemental Appropriations Act to provide certain aviation-related assistance. $2.3 billion of the appropriation was for grants by the TSA to U.S. air carriers
based on the proportional share each carrier had paid or collected as of the date of enactment of the legislation for passenger security and air carrier security
fees. In May 2003, AWA received approximately $81.3 million representing its proportional share of passenger security and air carrier security fees paid or
collected as of April 2003, which has been classified as "Federal Government Assistance" in the accompanying statements of operations. See Note 16,
"Emergency Wartime Supplemental Appropriations Act."
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