US Airways 2005 Annual Report Download - page 154

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
(e) Concentration of credit risks
The Company invests available cash in money market securities of various banks, commercial paper and asset-backed securities of various financial
institutions, other companies with high credit ratings and securities backed by the U.S. Government.
The Company does not believe it is subject to any significant concentration of credit risk. Most of the Company's receivables result from tickets sold to
individual passengers through the use of major credit cards or from tickets sold by other airlines and used by passengers. These receivables are short-term,
generally being settled shortly after the sale.
13. Nonoperating income (expenses) — other, net
In the fourth quarter of 2005, the Company recorded $4 million of derivative gain attributable to stock options in Sabre and warrants in a number of
e-commerce companies. On an ongoing basis, the Company adjusts its balance sheet to reflect changes in the current fair market value of the stock options
and warrants according to SFAS 133.
In the fourth quarter of 2005, the Company repurchased warrants issued to the ATSB. In connection with this repurchase, the Company recorded
$8 million of nonoperating expense. This amount represented the unamortized balance recorded as an other asset, which was being amortized over the life of
the government guaranteed loan as an increase to interest expense.
In the fourth quarter of 2005, the Company wrote off $2 million in issuance costs in connection with the conversion of the 7.25% exchangeable notes.
In connection with the term loan refinancing with GECC, the Company wrote off $1 million of debt issue costs associated to the term loan with Mizuho in
2004. This amount was recorded in nonoperating expenses.
In April 2003, Congress 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 Transportation Security Administration ("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 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.
In the fourth quarter of 2003, IAC/ InterActiveCorp completed its acquisition of Hotwire.com, a discount travel website. Hotwire was founded by the
Texas Pacific Group, American Airlines, Continental Airlines, Northwest Airlines, United Airlines, US Airways and AWA in October 2000. AWA had an
ownership interest of approximately 1.5% in Hotwire.com with a carrying value of approximately $0.03 million. Upon closing of the transaction, AWA
received cash of $10 million. Accordingly, AWA recognized a nonoperating gain of $10 million in the fourth quarter of 2003.
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