US Airways 2005 Annual Report Download - page 155

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
14. Supplemental cash flow information
Supplemental disclosure of cash flow information and non-cash investing and financing activities were as follows (in millions):
Year Ended
December 31,
2005 2004 2003
Non-cash transactions:
Reclassification of investments in debt securities to short-term $ 30 $ 26 $ 29
Fair value of assets acquired in business combination 5,568 — —
Liabilities assumed in business combination 5,451 — —
Cancellation of convertible notes — — (1)
Cancellation of 10.75% senior unsecured notes related to sale of NLG investment — — (10)
Notes payable issued for equipment purchase deposits 9 17 5
Notes payable canceled under the aircraft purchase agreement (21) (7) (7)
Payment in kind notes issued, net of returns — 9 9
Acquisition of shares due to loan default — 2 —
Cash transactions:
Interest paid, net of amounts capitalized 88 24 17
Income taxes paid (refunded) — 1 (4)
15. Related party transactions
Richard A. Bartlett, a member of the board of directors of US Airways Group, is a greater than 10% minority owner and director of Eastshore. In February
2005, Eastshore entered into an agreement with US Airways Group to provide a $125 million financing commitment to provide equity funding for a plan of
reorganization, in the form of a debtor in possession term loan. Under the terms of US Airways Group's plan of reorganization, Eastshore received a cash
payment in the amount of all accrued interest on the loan, and the principal amount of $125 million was satisfied by delivery of 8,333,333 shares of
US Airways Group common stock, representing a price of $15.00 per share. Mr. Bartlett is also a greater than 10% owner of Air Wisconsin. US Airways and
Air Wisconsin also entered into a regional jet services agreement under which Air Wisconsin may, but is not required to, provide regional jet service under a
US Airways Express code share arrangement. On April 8, 2005, Air Wisconsin notified US Airways Group of its intention to deploy 70 regional jets, the
maximum number provided for in the agreement, into the US Airways Express network. The amount paid to Air Wisconsin in 2005 was approximately
$55 million.
Robert A. Milton, a member of the board of directors of US Airways Group, is the Chairman, President and Chief Executive Officer of ACE. ACE
purchased 5,000,000 shares of US Airways Group common stock at a purchase price of $15.00 per share, for a total investment of $75 million. ACE or its
subsidiaries entered into commercial agreements with US Airways Group and America West Holdings for various services including maintenance and airport
handling. The amount paid in 2005 for these commercial agreements was approximately $2 million.
Edward L. Shapiro, a member of the board of directors of US Airways Group, is a Vice President and partner of PAR Capital Management, the general
partner of PAR. PAR received 10,768,485 shares of US Airways Group common stock, including shares received pursuant to Participation Agreements with
America West Holdings, for a total investment of $160 million. 149