US Airways 2005 Annual Report Download - page 203

Table of Contents
America West Airlines, Inc.
Notes to Consolidated Financial Statements — (Continued)
In addition, as of December 31, 2005, AWA had a net payable to affiliate of $443 million, which was classified in "Current Liabilities" on AWA's
condensed balance sheet. The net payable to affiliate is primarily comprised of a net payable to US Airways Group and US Airways of $795 million and
$601 million, respectively, and a net receivable from US Airways Group and US Airways of $330 million and $621 million, respectively.
The net payable to US Airways Group consists of proceeds received by AWA on behalf of US Airways Group in connection with the initial equity
investments, the public stock offering, the exercise of options by equity investors, the issuance of 7% Senior Convertible Notes and the Airbus Loans and
amounts payable to US Airways Group related to the conversion of the 7.25% notes, net of cash retained by US Airways Group. The net payable to
US Airways primarily consists of operating cash transfers received by AWA.
The net receivable from US Airways Group consists of payments made on behalf of US Airways Group related to the repurchase of the warrants issued to
the ATSB, merger related costs and amounts related to the Airbus Loans. The net receivable from US Airways consists of payments made on behalf of
US Airways to extinguish debt in connection with the GE Merger MOU, merger related costs and amounts received by US Airways on behalf of AWA related
to the bonus payment made by Juniper and additional amounts received from Juniper for prepurchased miles. Payables and receivables among affiliates are
expected to be short-term in duration.
14. Nonoperating Income (Expenses) — Other, Net
In the fourth quarter of 2005, US Airways Group repurchased warrants issued to the ATSB. In connection with this repurchase, AWA 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, AWA 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, AWA 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 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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