US Airways 2006 Annual Report Download - page 99

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
For the year ended December 31, 2006, 1,254,960 stock options and stock appreciation rights are not included in the computation of
diluted EPS because the option exercise prices were greater than the average market price of common stock for the period. Also, 34,650
performance-based restricted stock unit awards were excluded as the performance-based provision had not been met as of December 31,
2006. In addition, 1,054,692 incremental shares from assumed conversion of the 7.5% senior convertible notes are not included in the
computation of diluted EPS because of the antidilutive effect on EPS.
For the year ended December 31, 2005, 2,656,804 stock options are not included in the computation of diluted EPS because the
option exercise prices were greater than the average market price of common stock for the period. Options to acquire 930,976 common
shares and 3,021,908 warrants issued in conjunction with the AWA ATSB Loan and related transactions are not included in the
computation of diluted EPS because of the antidilutive effect on EPS. In addition, 1,506,141 incremental shares from assumed conversion
of the 7% senior convertible notes, 3,860,289 incremental shares from assumed conversion of the 7.5% senior convertible notes and
3,042,555 incremental shares from assumed conversion of the 7.25% senior exchangeable notes are not included in the computation of
diluted EPS because of the antidilutive effect on EPS.
For the year ended December 31, 2004, 2,165,168 stock options and 3,033,108 warrants issued in conjunction with the AWA ATSB
Loan and related transactions are not included in the computation of diluted EPS because the option and warrant exercise prices were
greater than the average market price of common stock for the period. In addition, 3,339,535 shares issuable upon conversion of the
7.25% senior exchangeable notes due 2023 and 3,586,275 issuable upon conversion of the 7.5% convertible senior notes are not included
in the computation of diluted EPS because of the antidilutive effect on EPS.
5. Special items, net
Special items, net included within the statements of operations include the following components (in millions):
Year Ended December 31,
2006 2005 2004
Airbus restructuring $ (90)(a) $ 57(a) $ —
Merger related transition expenses 131(b) 28(b) —
Sale leaseback transactions — 27(c) (1)(g)
Power by the hour program penalties — 7(d) —
Severance due to change in control — 2(e) —
Aircraft returns — 1(f) 2(f)
Termination of V2500 power by the hour agreement — — (16)(h)
Settlement of bankruptcy claims (14)(i) — —
Other — (1) (1)
Total $ 27 $ 121 $ (16)
(a) In the third quarter of 2005, in connection with the merger and a Memorandum of Understanding (the "Airbus MOU") executed
between AVSA S.A.R.L., an affiliate of Airbus S.A.S. ("Airbus"), US Airways Group, US Airways and AWA, certain aircraft
firm orders were restructured. In connection with that restructuring, US Airways Group and America West Holdings were required
to pay non-refundable restructuring fees totaling $89 million by means of set-off against existing equipment deposits of
US Airways and AWA held by Airbus of $39 million and $50 million respectively. In 2005, AWA's restructuring fee of
$50 million has been classified as a special charge, along with $7 million in associated capitalized interest. Also in connection with
the Airbus MOU, US Airways and AWA entered into two loan agreements with aggregate commitments of up to
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