US Airways 2006 Annual Report Download - page 84

Table of Contents
US Airways Group, Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2006, 2005 and 2004
2006 2005 2004
(In millions)
Cash flows from operating activities:
Net income (loss) $ 304 $ (537) $ (89)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Cumulative effect of change in accounting principle (1) 202 —
Depreciation and amortization 198 88 54
Gain on forgiveness of debt (90) — —
Non cash special charges (credits), net — 86 (15)
Utilization of acquired net operating loss carryforwards 85 — —
Change in fair value of fuel hedging instruments, net 70 (4) 2
Amortization of capitalized maintenance — — 86
Amortization of deferred credits (43) (23) (8)
Amortization of deferred rent 5 5 6
Amortization of warrants — 12 7
Amortization of debt issuance costs and guarantee fees 9 30 36
Amortization of debt discount 12 11 4
Amortization of investment discount and premium, net — 9 1
Stock-based compensation 34 5 —
Premium paid in conversion of 7% senior convertible notes 17 — —
Other (1) (18) 28
Changes in operating assets and liabilities:
Decrease in restricted cash 6 120 2
Decrease (increase) in accounts receivable, net (35) 55 (13)
Decrease (increase) in expendable spare parts and supplies, net (25) (8) 1
Decrease (increase) in prepaid expenses 22 (63) (49)
Decrease (increase) in other assets, net (14) 13 —
Decrease in accounts payable (2) (45) (35)
Increase (decrease) in air traffic liability 59 (54) 20
Increase (decrease) in accrued compensation and vacation benefits 56 (1) (18)
Increase (decrease) in accrued taxes 38 (5) (4)
Increase (decrease) in other accrued liabilities (88) (18) 4
Increase in other liabilities 2 186 1
Net cash provided by operating activities 618 46 21
Cash flows from investing activities:
Purchases of property and equipment (232) (44) (219)
Purchases of short-term investments (2,583) (711) (488)
Proceeds from sales of short-term investments 1,785 416 708
Cash acquired as part of acquisition — 279 —
Costs incurred as part of acquisition — (21) —
Purchases of investments in debt securities — — (35)
Sales of investments in debt securities — — 20
Decrease (increase) in long-term restricted cash 128 (112) (2)
Increase in equipment purchase deposits (8) — —
Proceeds from sales of property and equipment and sale-leaseback transactions 7 592 32
Net cash provided by (used in) investing activities (903) 399 16
Cash flows from financing activities:
Proceeds from issuance of debt 1,419 655 142
Repayment of debt (1,187) (741) (176)
Issuance of common stock 44 732 —
Acquisition of warrants — (116) —
Other — 1 (7)
Net cash provided by (used in) financing activities 276 531 (41)
Net increase (decrease) in cash and cash equivalents (9) 976 (4)
Cash and cash equivalents at beginning of year 1,125 149 153
Cash and cash equivalents at end of year $ 1,116 $ 1,125 $ 149
See accompanying notes to consolidated financial statements.
81