US Airways 2005 Annual Report Download - page 45

Table of Contents
Year Ended December 31,
2005 2004 2003 2002 2001
(In millions except per share amounts)
Unaudited pro forma net income (loss) (assuming change in method of accounting was applied retroactively) (335) (142) 52 (386) (252)
Unaudited pro forma net income (loss) per share Basic (10.65) (9.53) 3.71 (27.76) (18.12)
Diluted (10.65) (9.53) 2.87 (27.76) (18.12)
Shares used for computation:
Basic 31,488 14,861 14,252 13,911 13,889
Diluted 31,488 14,861 23,147 13,911 13,889
Consolidated balance sheet data (at end of period):
Total assets $ 6,964 $ 1,475 $ 1,614 $ 1,439 $ 1,469
Long-term obligations, less current maturities(d) 2,749 640 697 713 225
Total stockholders' equity 420 36 126 68 420
(a) Certain prior year amounts have been reclassified to conform with the 2005 presentation. These reclassifications include reclassing: fuel hedging
activities from nonoperating to operating expenses, fuel-related tax expenses from other expenses to aircraft fuel and related taxes expense and the sale
of frequent flier miles and related marketing services to affinity partners from other operating expense to mainline passenger and other revenue. The
portion of the affinity partner revenue related to passenger ticket sales is classified as mainline passenger revenue and the marketing portion of the
affinity partner revenue is classified as other revenue.
The Company reclassified amounts related to settled fuel hedge transactions and mark-to-market adjustments on open hedge instruments from
nonoperating income (expense) to operating. The amounts for the years ended December 31, 2005, 2004 and 2003 reduced operating expenses by
$75 million, $24 million and $11, respectively. For the years ended December 31, 2002 and 2001, the amounts increased operating expenses by
$1 million and $7 million, respectively.
The sale of frequent flier miles and related marketing services to affinity partners were reclassed from operating expenses to operating revenues. The
amounts for the years ended December 31, 2005, 2004, 2003, 2002 and 2001 were $20 million, $38 million, $32 million, $29 million and $24 million.
AWA Express expenses were reclassed from operating revenues to operating expenses. See also Part II, Item 8A, Note 5 "Change in Method of
Reporting for America West Express Results and Other Reclassifications."
The 2005 results include $121 million of special charges, including $13 million of merger related transition expenses, a $27 million loss on the sale and
leaseback of six 737-300 aircraft and two 757 aircraft, $7 million of power by the hour program penalties associated with the return of certain leased
aircraft and a $50 million charge related to an amended Airbus purchase agreement, along with the write off of $7 million in capitalized interest. The
Airbus restructuring fee was paid by means of set-off against existing equipment purchase deposits held by Airbus.
AWA's 2004 results include a $16 million net credit associated with the termination of the rate per engine hour agreement with General Electric Engine
Services for overhaul maintenance services on V2500-A1 engines. This credit was partially offset by $2 million of net charges related to the return of
certain Boeing 737-200 aircraft, which includes termination payments of $2 million, the write-down of leasehold improvements and deferred rent of
$3 million, offset by the net reversal of maintenance reserves of $3 million related to the returned aircraft.
AWA's 2003 results include $16 million of changes resulting from the elimination of AWA's hub operations in Columbus, Ohio ($11 million), the
reduction-in-force of certain management, professional and administrative employees ($2 million) and the impairment of certain owned
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