US Airways 2006 Annual Report Download - page 210

Table of Contents
US Airways, Inc.
Notes to the Financial Statements — (Continued)
9. Accumulated other comprehensive income (loss), net
There was no activity within other comprehensive income during the year ended December 31, 2006 or the three months ended
December 31, 2005. The activity within other comprehensive income (loss) for all other periods is as follows (in millions):
Predecessor Company
Nine Months
Ended Year Ended
September 30, 2005 December 31, 2004
Fuel cash flow hedges:
Reclassification adjustment for gains included in net income (loss) during the period $ (17) $ (75)
Change in fair value of hedges — 66
Unrealized gain (loss), net of reclassification adjustment (17) (9)
Minimum pension liability adjustment 29 (34)
Adjustments in connection with reorganization 86 —
Other comprehensive income (loss) $ 98 $ (43)
There was no tax effect on any element of other comprehensive income (loss) during the nine months ended September 30, 2005
and the year ended December 31, 2004.
10. Related party transactions
The following represents net receivable (payable) balances with related parties as of December 31, 2006 and 2005 (in millions):
December 31,
2006 2005
US Airways Group $ (1,130) $ (269)
AWA (92) (20)
Other US Airways Group wholly owned subsidiaries (76) (47)
Total $ (1,298) $ (336)
(a) Parent Company
The net payable to US Airways Group consists of $1.1 billion due to debt previously recorded at US Airways which was refinanced
with proceeds from the GE Loan (see Note 5). The remainder of the payable to US Airways Group is a result of funds provided and
received from US Airways Group that arise in the normal course of business.
US Airways recorded interest expense of $70 million for the year ended December 31, 2006, $6 million for the three months ended
December 31, 2005, $1 million for the nine months ended September 30, 2005, and $2 million for the year ended December 31, 2004
related to the above transactions and other transactions with the subsidiaries as described below. Interest is calculated at market rates,
which are reset quarterly.
(b) Subsidiaries of US Airways Group
The net payable to and from AWA consists of amounts due to and from AWA relating to items such as debt extinguishment, merger
related payments and receipts, and various other transactions that occur in the normal course of business that one airline settles on behalf
of the other.
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