US Airways 2006 Annual Report Download - page 167

Table of Contents
America West Airlines, Inc.
Notes to Consolidated Financial Statements — (Continued)
14. Valuation and Qualifying Accounts
Balance at Balance
Beginning at End
Description of Period Additions Deduction of Period
(in millions)
Allowance for doubtful receivables:
Year ended December 31, 2006 $ 2 $ 2 $ 2 $ 2
Year ended December 31, 2005 $ 1 $ 2 $ 1 $ 2
Year ended December 31, 2004 $ 6 $ 1 $ 6 $ 1
Allowance for inventory obsolescence:
Year ended December 31, 2006 $ 23 $ 4 $ 1 $ 26
Year ended December 31, 2005 $ 15 $ 8 $ — $ 23
Year ended December 31, 2004 $ 12 $ 3 $ — $ 15
Valuation allowance on deferred tax asset, net:
Year ended December 31, 2006 $ 284 $ — $ 14 $ 270
Year ended December 31, 2005 $ 127 $ 157 $ — $ 284
Year ended December 31, 2004 $ 96 $ 55 $ 24 $ 127
15. Selected Quarterly Financial Information
Summarized quarterly financial information for 2006 and 2005, before the cumulative effect of change in accounting principle, is as
follows (in millions):
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
(unaudited)
2006
Operating revenues $ 861 $ 981 $ 922 $ 872
Operating expenses 779 920 1,028 944
Operating income (loss) 82 61 (106) (72)
Nonoperating expenses, net (25) 11 7 9
Income tax expense — 4 1 —
Income (loss) before cumulative effect of change in accounting principle 57 68 (100) (63)
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
2005
Operating revenues $ 734 $ 845 $ 849 $ 835
Operating expenses 686 832 919 946
Operating income (loss) 48 13 (70) (111)
Nonoperating expenses, net (18) (16) (13) (28)
Income tax expense — — — —
Income (loss) before cumulative effect of change in accounting principle 30 (3) (83) (139)
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