US Airways 2005 Annual Report Download - page 46

Table of Contents
Boeing 737-200 aircraft that have been grounded ($3 million), offset by a $1 million reduction due to a revision of the estimated costs related to the
early termination of certain aircraft leases and a $1 million reduction related to the revision of estimated costs associated with the sale and leaseback of
certain aircraft.
The 2002 period includes $19 million of charges primarily related to the restructuring completed on January 18, 2002, resulting from the events of
September 11, 2001.
The 2001 period includes $142 million of special charges related to the impairment of reorganization value in excess of amounts allocable to
identifiable assets ("ERV") and owned aircraft and engines, as well as the earlier-than-planned return of seven leased aircraft and severance expenses
following a reduction-in-force in 2001. See Note 7, "Special Charges" in US Airways Group's notes to consolidated financial statements included in
Item 8A of this report.
(b) Nonoperating income (expense) in the 2005 period includes an $8 million charge related to the write-off of the unamortized value of the ATSB
warrants upon their repurchase in October 2005 and an aggregate $2 million write-off of debt issue costs associated with the exchange of the
7.25% Senior Exchangeable Notes due 2023 and retirement of a portion of the loan formerly guaranteed by the ATSB. In the fourth quarter 2005
period, US Airways recorded $4 million of derivative gain attributable to stock options in Sabre, and warrants in a number of e-commerce companies.
The 2004 period includes a $1 million gain at AWA on the disposition of property and equipment due principally to the sale of one Boeing 737-200
aircraft and a $1 million charge for the write-off of debt issue costs in connection with the refinancing of the term loan.
The 2003 period includes federal government assistance of $81 million recognized as nonoperating income under the Emergency Wartime
Supplemental Appropriations Act and $9 million and $108 million recognized in 2002 and 2001, respectively, as nonoperating income under the Air
Transportation Safety and System Stabilization Act.
(c) The 2005 period includes a $202 million adjustment which represents the cumulative effect on retained earnings of the adoption of the direct expense
method for accounting for major scheduled airframe, engine and certain component overhaul costs as of January 1, 2005. (See Part II, Item 8A, Note 4
"Change in Accounting Policy for Maintenance Costs").
The 2002 period includes a $208 million adjustment which represents the cumulative effect on retained earnings of the adoption of SFAS No. 142,
"Goodwill and other Intangible Assets" which was issued by the FASB in June 2001. SFAS No. 142 primarily addresses the accounting for goodwill
and intangible assets subsequent to their acquisition. Under SFAS No. 142, ERV is reported as goodwill and accounted for in the same manner as
goodwill. SFAS No. 142 was effective for fiscal years beginning after December 15, 2001.
(d) Includes debt, capital leases and postretirement benefits other than pensions (noncurrent).
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