US Airways 2005 Annual Report Download - page 163

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
20. Valuation and Qualifying Accounts (in millions)
Balance at Balance
Beginning at End
Description of Period Additions Deductions of Period
Allowance for doubtful receivables:
Year ended December 31, 2005 $ 1 $ 12(a) $ 3 $ 10
Year ended December 31, 2004 $ 6 $ 1 $ 6 $ 1
Year ended December 31, 2003 $ 7 $ 1 $ 2 $ 6
Allowance for obsolescence:
Year ended December 31, 2005 $ 15 $ 9 $ — $ 24
Year ended December 31, 2004 $ 12 $ 3 $ — $ 15
Year ended December 31, 2003 $ 9 $ 3 $ — $ 12
Valuation allowance on deferred tax asset, net:
Year ended December 31, 2005 $ 127 $ 976 $ 657 $ 446
Year ended December 31, 2004 $ 96 $ 55 $ 24 $ 127
Year ended December 31, 2003 $ 79 $ 39 $ 22 $ 96
Leased aircraft return provision:
Year ended December 31, 2005 $ 32 $ 2 $ 34 $ —
Year ended December 31, 2004 $ 27 $ 7 $ 2 $ 32
Year ended December 31, 2003 $ 22 $ 9 $ 4 $ 27
Reserves for workforce reduction:
Year ended December 31, 2005 $ — $ 50(b) $ 24 $ 26
Year ended December 31, 2004 $ — $ — $ — $ —
Year ended December 31, 2003 $ — $ — $ — $ —
(a) Allowance for doubtful receivables additions in the 2005 period include $8 million from the opening balance sheet of US Airways at
September 27, 2005.
(b) Reserves for workforce reduction additions in the 2005 period include $53 million from the opening balance sheet of US Airways at September 27,
2005.
21. Select quarterly financial information (unaudited)
The 2005 and 2004 unaudited quarterly financial data has been adjusted to reflect certain reclassifications. These reclassifications include reclassing: fuel
hedging activities from nonoperating to operating expenses, reclassing the sale of frequent flier miles and related marketing services to affinity partners from
other operating expenses to operating revenues and reclassing Express expenses from operating revenues to operating expenses. See also Note 5 "Change in
method of reporting for America West Express results and other reclassifications." In addition, 2005 quarterly financial data has been adjusted to reflect the
change in accounting policy for maintenance costs as if the change occurred on January 1, 2005. Pro forma adjustments have been made to the 2004 quarterly
financial data to reflect 157