US Airways 2006 Annual Report Download - page 132

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
18. 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, 2006 $ 10 $ 7 $ 9 $ 8
Year ended December 31, 2005 $ 1 $ 12(a) $ 3 $ 10
Year ended December 31, 2004 $ 6 $ 1 $ 6 $ 1
Allowance for inventory obsolescence:
Year ended December 31, 2006 $ 24 $ 10 $ 4 $ 30
Year ended December 31, 2005 $ 15 $ 9 $ — $ 24
Year ended December 31, 2004 $ 12 $ 3 $ — $ 15
Valuation allowance on deferred tax asset, net:
Year ended December 31, 2006 $ 446 $ — $ 183 $ 263
Year ended December 31, 2005 $ 127 $ 976 $ 657 $ 446
Year ended December 31, 2004 $ 96 $ 55 $ 24 $ 127
(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.
19. Selected quarterly financial information (unaudited)
Summarized quarterly financial information for 2006 and 2005, before the cumulative effect of change in accounting principle, are
as follows (in millions):
2006 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Operating revenues $ 2,632 $ 3,171 $ 2,968 $ 2,786
Operating expenses 2,507 2,829 2,952 2,711
Operating income 125 342 16 75
Nonoperating expenses, net (61) (30) (33) (30)
Income tax provision — 7 61 33
Income (loss) before cumulative effect of change in accounting principle 64 305 (78) 12
Earnings (loss) per common share before cumulative effect of change in accounting
principle:
Basic: $ 0.79 $ 3.55 $ (0.88) $ 0.13
Diluted: $ 0.75 $ 3.25 $ (0.88) $ 0.13
Shares used for computation (in thousands):
Basic 81,679 85,886 88,212 89,892
Diluted 93,362 94,673 88,212 91,872
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