US Airways 2006 Annual Report Download - page 164

Table of Contents
America West Airlines, Inc.
Notes to Consolidated Financial Statements — (Continued)
$7.27 per share. The total purchase price for the warrants was $116 million, the estimated fair value of such warrants on the purchase
date. In connection with this repurchase, AWA recorded $8 million of non operating 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. As of December 31, 2006, there were no warrants outstanding.
11. Nonoperating Income (Expenses) — Other, Net
In the first quarter of 2006, AWA recorded $6 million in prepayment penalties and wrote off $5 million of debt issuance costs
related to the March 31, 2006 repayment of the AWA Citibank Loan (formerly ATSB loan) and the GECC loan that were paid off with
the proceeds of the GE Loan.
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 issuance costs associated to the term
loan with Mizuho in 2004. This amount was recorded in nonoperating expenses.
161