US Airways 2005 Annual Report Download - page 207

Table of Contents
America West Airlines, Inc.
Notes to Consolidated Financial Statements — (Continued)
(1) Reflects reclassification of $2 million and $8 million related to the sale of frequent flier miles and related marketing services to affinity partners from
"Other" expenses to "Mainline passenger" and "Other" revenues. Reflects $5 million additional maintenance expense, resulting from the accounting
policy change from the deferral method for maintenance costs to the direct expense method.
(2) Reflects reclassification of $2 million and $7 million related to the sale of frequent flier miles and related marketing services to affinity partners from
"Other" expenses to "Mainline passenger" and "Other" revenues. Reflects $17 million additional maintenance expense, resulting from the accounting
policy change from the deferral method for maintenance costs to the direct expense method.
(3) Reflects $12 million additional maintenance expense, resulting from the accounting policy change from the deferral method for maintenance costs to
the direct expense method.
(4) Reflects reclassification of $2 million and $7 million related to the sale of frequent flier miles and related marketing services to affinity partners from
"Other" expenses to "Mainline passenger" and "Other" revenues. Reflects $5 million additional pro forma maintenance expense presented for
comparative purposes, resulting from the accounting policy change from the deferral method for maintenance costs to the direct expense method.
(5) Reflects reclassification of $2 million and $9 million related to the sale of frequent flier miles and related marketing services to affinity partners from
"Other" expenses to "Mainline passenger" and "Other" revenues. Reflects $13 million additional pro forma maintenance expense presented for
comparative purposes, resulting from the accounting policy change from the deferral method for maintenance costs to the direct expense method.
(6) Reflects reclassification of $2 million and $8 million related to the sale of frequent flier miles and related marketing services to affinity partners from
"Other" expenses to "Mainline passenger" and "Other" revenues. Reflects $15 million additional pro forma maintenance expense presented for
comparative purposes, resulting from the accounting policy change from the deferral method for maintenance costs to the direct expense method.
(7) Reflects reclassification of $1 million and $7 million related to the sale of frequent flier miles and related marketing services to affinity partners from
"Other" expenses to "Mainline passenger" and "Other" revenues, reclassification of $109 million of Express operating expenses from operating
revenues to operating expenses and reclassification of $12 million net loss related to fuel hedging activity for settled and mark-to-market changes from
nonoperating to operating expenses. Reflects $10 million additional pro forma maintenance expense presented for comparative purposes, resulting from
the accounting policy change from the deferral method for maintenance costs to the direct expense method.
The following pro forma amounts (in millions) show the effect of the retroactive application of the change from the deferral to the direct expense method.
Year Ended December 31, 2005
1st Quarter 2nd Quarter 3rd Quarter
Net income (loss) using the deferral method $ 34 $ 15 $ (71)
Effect of change to direct expense method (5) (18) (15)
Pro forma net income (loss) using the direct expense method $ 29 $ (3) $ (86)
201