US Airways 2006 Annual Report Download - page 187

Table of Contents
US Airways, Inc.
Notes to the Financial Statements — (Continued)
assumed in connection with the merger and initial allocation of purchase price to US Airways are as follows (in millions):
Current assets $ 922
Property and equipment 2,271
Other intangible assets 548
Other assets 778
Goodwill 732
Liabilities assumed (5,250)
$ 1
As a result of the adoption of fresh-start reporting, US Airways' post-emergence financial statements are not comparable with its
pre-emergence financial statements, because they are, in effect, those of a new entity. US Airways also recorded certain purchase
accounting adjustments specifically related to the merger with America West Holdings. The purchase accounting adjustments include
those made to conform the accounting policies of US Airways to those of America West Holdings, including an adjustment to reduce the
air traffic liability by $124 million to conform its accounting policies for recognizing revenue from forfeited tickets, and an increase to
noncurrent employee benefit liabilities and other of $16 million to conform to America West Holdings' policy of not discounting its
workers compensation liability. Adjustments to conform accounting policies were recorded as direct adjustments to goodwill. In
connection with the merger, primarily due to the relocation of the corporate headquarters from Arlington, Virginia to Tempe, Arizona,
US Airways accrued in purchase accounting $24 million of severance and benefits related to planned reductions in force for its non-union
employees. US Airways Group incurred additional severance and benefits for reductions in force related to the merger; however, due to
requirements for continued service during the integration period, these severance and benefits were not recorded as an adjustment to the
purchase price allocation but were expensed. See Note 3 "Special Items, net" for discussion of amounts expensed for severance and
benefits in the fourth quarter of 2005 and during 2006.
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