US Airways 2005 Annual Report Download - page 129

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
The carrying values of available-for-sale and held-to-maturity securities approximate fair value. There were no unrealized gains or losses on these
investments for the years ended December 31, 2005, 2004 and 2003. Gross proceeds from sales of available-for-sale securities for the years ended
December 31, 2005, 2004 and 2003 were $411 million, $589 million and $322 million, respectively. Contractual maturities of all held-to-maturity securities
mature in one year or less. Contractual maturities for available-for-sale securities are greater than 10 years with a reset date approximately every 28 days.
US Airways Group had no long-term investments in debt securities as of December 31, 2005 and had $30 million as of December 31, 2004. At
December 31, 2004, long-term investments consisted of cash invested in certain debt securities with maturities greater than one year. The debt securities are
classified as held to maturity and are carried at amortized cost that approximates fair value.
Long-term debt
At December 31, 2005 and 2004, the fair value of long-term debt was approximately $3.07 billion and $722 million, respectively. US Airways Group's
variable rate long-term debt approximates fair value because these borrowings have variable interest rate terms that approximate market interest rates for
similar debt instruments. The fair value of US Airways Group's other long-term debt is determined based on quoted market prices if available or market prices
for comparable debt instruments.
9. Long-term debt, including capital lease obligations
Long-term debt at December 31, 2005 and December 31, 2004 consists of the following (variable interest rates listed are the rates as of December 31,
2005 unless noted) (in millions):
December 31, December 31,
2005 2004
Secured
AWA Citibank Loan (formerly AWA ATSB Loan), variable interest rate of 12.27%, installments due 2005 through 2008(a) $ 250 $ —
Equipment notes payable, notes retired September 2005 — 39
Capital lease obligations — 8
GECC term loan, variable interest rate of 8.43%, quarterly installments beginning 2006 through 2010(b) 111 111
Senior secured discount notes, variable interest rate of 7.91%, installments due 2005 through 2009(c) 34 36
Airbus Loans, variable interest rate of 9.96%, quarterly installments beginning 2008 through 2010(d) 186 —
Equipment notes payable, variable interest rates of 6.20% to 9.22%, averaging 8.50% as of December 31, 2005 1,240 —
US Airways Citibank Loan (formerly US Airways ATSB Loan), variable interest rate of 10.10%, installments due 2006 through
2010(e) 551 —
Slot Financing, interest rate of 8%, installments due through 2015(f) 50 —
Capital Lease Obligations, interest rate of 8%, installments due through 2021(g) 46 —
GE Credit Facility, variable interest rate of 8.30%, installments due 2006 to 2010(h) 28 —
2,496 194
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