US Airways 2005 Annual Report Download - page 105

Table of Contents
US Airways Group, Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2005, 2004 and 2003
(in millions)
2005 2004 2003
Cash flows from operating activities:
Net income (loss) $ (537) $ (89) $ 57
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Cumulative effect of accounting change 202 — —
Depreciation and amortization 88 54 67
Amortization of capitalized maintenance — 86 105
Amortization of deferred credits (23) (8) (11)
Amortization of deferred rent 5 6 10
Amortization of warrants 12 7 8
Amortization of debt issue costs and guarantee fees 30 36 36
Amortization of bond discount 11 4 3
Amortization of investment discount and premium, net 9 1 1
Stock-based compensation 5 — —
Special charges (credits), net 105 (15) 14
Gain on sale of investment — — (3)
Other (18) 28 8
Changes in operating assets and liabilities:
Decrease (increase) in restricted cash 120 2 (43)
Decrease (increase) in accounts receivable, net 55 (13) (5)
Decrease (increase) in expendable spare parts and supplies, net (8) 1 (3)
Increase in prepaid expenses (67) (49) (46)
Decrease (increase) in other assets, net 13 — —
Increase (decrease) in accounts payable (45) (35) 18
Increase (decrease) in air traffic liability (54) 20 4
Increase (decrease) in accrued compensation and vacation benefits (1) (18) 20
Increase (decrease) in accrued taxes (5) (4) 2
Increase (decrease) in other accrued liabilities (37) 6 (1)
Increase in other liabilities 186 1 1
Net cash provided by operating activities 46 21 242
Cash flows from investing activities:
Purchases of property and equipment (44) (219) (154)
Purchases of short-term investments (711) (488) (634)
Sales of short-term investments 416 708 364
Cash acquired as part of acquisition 279 — —
Costs incurred as part of acquisition (21) — —
Purchases of investments in debt securities — (35) (80)
Sales of investments in debt securities — 20 10
Decrease (increase) in restricted cash (112) (2) (24)
Proceeds from sales of other property and equipment 592 32 26
Net cash provided by (used in) investing activities 399 16 (492)
Cash flows from financing activities:
Proceeds from issuance of debt 655 142 87
Repayment of debt (741) (176) (17)
Issuance of common stock 732 — —
Acquisition of warrants (116) — —
Payment of debt issue costs — (1) (3)
Other 1 (6) —
Net cash provided by (used in) financing activities 531 (41) 67
Net increase (decrease) in cash and cash equivalents 976 (4) (183)
Cash and cash equivalents at beginning of year 149 153 336
Cash and cash equivalents at end of year $ 1,125 $ 149 $ 153
See accompanying notes to consolidated financial statements.
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