US Airways 2006 Annual Report Download - page 70

Table of Contents
in our credit rating or a general increase in interest rates or due to an increase in the cost of fuel, maintenance, aircraft and aircraft engines
and parts, could decrease the amount of cash available to cover the cash obligations. Moreover, the GE loan and Juniper agreement
contain a minimum cash balance requirement. As a result, we cannot use all of our available cash to fund operations, capital expenditures
and cash obligations without violating these requirements.
Other Information
Income Taxes
As of December 31, 2006, US Airways Group has available NOL and tax credit carryforwards for federal income tax purposes of
approximately $980 million and $37 million, respectively. The NOL expires during the years 2022 through 2025. The breakdown of the
NOL and tax credit carryforwards on a separate company basis are as follows:
• AWA has available NOL carryforwards and tax credit carryforwards for federal income tax purposes of approximately
$400 million and $7 million, respectively. The NOL expires during the years 2022 through 2025.
• US Airways has available NOL carryforwards and tax credit carryforwards for federal income tax purposes of approximately
$580 million and $30 million respectively. The NOL expires during the years 2024 and 2025.
US Airways Group had a change of ownership upon emergence from bankruptcy and its issuance of new common stock. Internal
Revenue Code Section 382 substantially limits the annual usage of remaining tax attributes that were generated prior to the change in
ownership. In addition, as a result of America West Holdings' merger with US Airways Group, AWA also experienced an ownership
change and AWA's ability to utilize its regular and AMT NOL and tax credit carryforwards may be restricted. As of December 31, 2006,
US Airways Group estimates $795 million of the NOL will be available to offset federal taxable income in the calendar year 2007.
Related Party Transactions
Each of US Airways Group, AWA and US Airways have entered into transactions with various members of its board of directors
and related entities. See Notes 13, 13 and 10, "Related Party Transactions" in Items 8A, 8B and 8C, respectively, of this report for
additional information, which information is incorporated herein by reference.
Critical Accounting Policies and Estimates
The preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United
States requires that we make certain estimates and assumptions that affect the reported amount of assets and liabilities, revenues and
expenses, and the disclosure of contingent assets and liabilities at the date of our financial statements. We believe our estimates and
assumptions are reasonable; however, actual results could differ from those estimates. Critical accounting policies are defined as those
that are reflective of significant judgments and uncertainties and potentially result in materially different results under different
assumptions and conditions. We have identified the following critical accounting policies that impact the preparation of our financial
statements. See also the summary of significant accounting policies included in the notes to the financial statements under Items 8A, 8B
and 8C of this Form 10-K for additional discussion of the application of these estimates and other accounting policies.
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