US Airways 2004 Annual Report Download - page 98

Table of Contents
AMERICA WEST AIRLINES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED
Texas Pacific Group agreed to reimburse AWA approximately $2.5 million for expenses incurred by AWA on its behalf. As a result, AWA recorded this
as a receivable as of December 31, 2004. Subsequent to December 31, 2004, AWA received $1.3 million in such reimbursement and expects to receive an
additional $1.2 million in 2005.
15. Quarterly Financial Data (Unaudited)
The 2004 and 2003 unaudited quarterly financial data has been restated to reflect the accounting for fuel hedging derivative instruments pursuant to
management's determination that AWA did not qualify for hedge accounting under SFAS No. 133. In addition, the restated amounts also reflect corrections to
properly reflect the fair value of open derivative instruments at each quarter end. See Note 2, "Restatement of Previously Reported Amounts."
Summarized quarterly financial data for 2004 and 2003 follows (in thousands of dollars):
1st Quarter 2nd Quarter
(as previously (as previously
(as restated) reported) (as restated) reported)
2004
Operating revenues $ 576,374 $ 576,374 $ 604,904 $ 604,904
Operating income 15,481(1) 18,624 17,266(3) 21,784
Nonoperating expenses, net (16,275)(1)(2) (16,679) (5,741)(3)(4) (15,226)
Income tax expense — — — —
Net income (794)(2) 1,945 11,525(4) 6,558
3rd Quarter 4th Quarter
(as previously (as previously
(as restated) reported) (as restated) reported)
2004
Operating revenues $ 578,453 $ 578,453 $ 578,546 $ 578,546
Operating loss (35,069)(5) (27,268) (37,382)(7) (22,315)
Nonoperating income (expenses), net 7,307(5)(6) (18,896) (30,821)(7)(8) (26,144)
Income tax expense — — (23) (23)
Net loss (27,762)(6) (46,164) (68,226)(8) (48,482)
1st Quarter 2nd Quarter
(as previously (as previously
(as restated) reported) (as restated) reported)
2003
Operating revenues $ 523,063 $ 523,063 $ 575,601 $ 575,601
Operating income (loss) (55,356)(9) (45,120) 17,457(11) 17,315
Nonoperating income (expenses), net (7,066)(9)(10) (15,899) 62,403(11)(12) 63,357
Income tax expense — — — —
Net income (loss) (62,422)(10) (61,019) 79,860(12) 80,672
3rd Quarter 4th Quarter
(as previously (as previously
(as restated) reported) (as restated) reported)
2003
Operating revenues $ 592,132 $ 592,132 $ 563,021 $ 563,021
Operating income 51,170(13) 51,037 12,821(15) 13,606
Nonoperating expenses, net (18,702)(13)(14) (17,217) (1,327)(15)(16) (5,679)
Income tax expense — — (114) (114)
Net income 32,468(14) 33,820 11,380(16) 7,813
(1) Reflects reclassification of $3.1 million net credit from "Aircraft Fuel" expense to "Gain (Loss) on Derivative Instruments, Net."
(2) Reflects the restatement of $2.7 million net expense to eliminate hedge accounting for the period presented.
(3) Reflects reclassification of $4.5 million net credit from "Aircraft Fuel" expense to "Gain (Loss) on Derivative Instruments, Net."
(4) Reflects the restatement of $5.0 million net credit to eliminate hedge accounting for the period presented.
(5) Reflects reclassification of $7.8 million net credit from "Aircraft Fuel" expense to "Gain (Loss) on Derivative Instruments, Net."
(6) Reflects the restatement of $18.4 million net credit to eliminate hedge accounting for the period presented.
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