US Airways 2006 Annual Report Download - page 36

Table of Contents
The 2002 period includes $19 million of charges primarily related to the restructuring completed on January 18, 2002, resulting
from the events of September 11, 2001.
(b) The 2006 period includes a non-cash expense for income taxes of $85 million related to the utilization of NOL acquired from
US Airways. The valuation allowance associated with these acquired NOL was recognized as a reduction of goodwill rather than a
reduction in tax expense. In addition, the period includes $6 million of prepayment penalties and a $5 million write-off of debt
issuance costs in connection with the $1.25 billion debt refinancing in the first quarter of 2006, $17 million in payments in
connection with the inducement to convert $70 million of the 7% Senior Convertible Notes to common stock and a $2 million
write-off of debt issuance costs associated with those converted notes, all of which was offset by $8 million of interest income
earned by AWA on certain prior year Federal income tax refunds.
Nonoperating income (expense) in the 2005 period includes an $8 million charge related to the write-off of the unamortized value
of the Air Transportation Stabilization Board ("ATSB") warrants upon their repurchase in October 2005 and an aggregate
$2 million write-off of debt issuance costs associated with the exchange of the 7.25% Senior Exchangeable Notes due 2023 and
retirement of a portion of the loan formerly guaranteed by the ATSB. In the fourth quarter 2005 period, US Airways recorded
$4 million of mark-to-market gains attributable to stock options in Sabre and warrants in a number of e-commerce companies.
The 2004 period includes a $1 million gain at AWA on the disposition of property and equipment due principally to the sale of one
Boeing 737-200 aircraft and a $1 million charge for the write-off of debt issuance costs in connection with the refinancing of the
term loan.
The 2003 period includes federal government assistance of $81 million recognized as nonoperating income under the Emergency
Wartime Supplemental Appropriations Act and $9 million in 2002 as nonoperating income under the Air Transportation Safety
and System Stabilization Act.
(c) The 2006 period includes a $1 million benefit which represents the cumulative effect on the accumulated deficit of the adoption of
Statement of Financial Accounting Standards ("SFAS") No. 123R. The adjustment reflects the impact of estimating future
forfeitures for previously recognized compensation expense.
The 2005 period includes a $202 million adjustment which represents the cumulative effect on the accumulated deficit of the
adoption of the direct expense method of accounting for major scheduled airframe, engine and certain component overhaul costs
as of January 1, 2005. (See Part II, Item 8A, Note 3 "Change in Accounting Policy for Maintenance Costs").
The 2002 period includes a $208 million adjustment which represents the cumulative effect on retained earnings of the adoption of
SFAS No. 142, "Goodwill and Other Intangible Assets" which was issued by the FASB in June 2001. SFAS No. 142 primarily
addresses the accounting for goodwill and intangible assets subsequent to their acquisition. Under SFAS No. 142, Enterprise
Reorganizational Value is reported as goodwill and accounted for in the same manner as goodwill. SFAS No. 142 was effective
for fiscal years beginning after December 15, 2001.
(d) Includes debt, capital leases, postretirement benefits other than pensions (noncurrent) and employee benefit and other liabilities.
Selected Financial Data of US Airways, Inc.
Statements of Operations (in millions):
Successor Company(a) Predecessor Company(a)
Three Months Nine Months Nine Months Three Months
Year Ended Ended Ended Year Ended Ended Ended Year Ended
December 31, December 31, September 30, December 31, December 31, March 31, December 31,
2006 2005 2005 2004 2003 2003 2002
Operating revenues $ 8,056 $ 1,755 $ 5,452 $ 7,068 $ 5,250 $ 1,512 $ 6,915
Operating expenses(b) 7,464 1,826 5,594 7,416 5,292 1,714 8,236
Operating income (loss)(b) $ 592 $ (71) $ (142) $ (348) $ (42) $ (202) $ (1,321)
Net income (loss)(c) $ 345 $ (120) $ 280 $ (578) $ (160) $ 1,613 $ (1,659)
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