US Airways 2007 Annual Report Download - page 119

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
19. Selected quarterly financial information (unaudited)
Summarized quarterly financial information for 2007 and 2006, before the cumulative effect of change in accounting principle, are
as follows (in millions):
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
2007
Operating revenues $ 2,732 $ 3,155 $ 3,036 $ 2,776
Operating expenses 2,616 2,866 2,834 2,850(a)
Operating income (loss) 116 289 202 (74)
Nonoperating expenses, net (47) (18) (21) (13)
Income tax provision (benefit) 3 8 4 (8)
Income (loss) 66 263 177 (79)
Earnings (loss) per common share:
Basic: $ 0.73 $ 2.88 $ 1.93 $ (0.87)
Diluted: $ 0.70 $ 2.77 $ 1.87 $ (0.87)
Shares used for computation (in thousands):
Basic 91,363 91,477 91,542 91,761
Diluted 96,223 95,613 95,492 91,761
2006
Operating revenues $ 2,632 $ 3,171 $ 2,968 $ 2,786
Operating expenses 2,507 2,829 2,952 2,711
Operating income 125 342 16 75
Nonoperating expenses, net (61) (30) (33) (30)
Income tax provision — 7 61 33
Income (loss) before cumulative effect of change in accounting principle 64 305 (78) 12
Earnings (loss) per common share before cumulative effect of change in accounting
principle:
Basic: $ 0.79 $ 3.55 $ (0.88) $ 0.13
Diluted: $ 0.75 $ 3.25 $ (0.88) $ 0.13
Shares used for computation (in thousands):
Basic 81,679 85,886 88,212 89,892
Diluted 93,362 94,673 88,212 91,872
(a) In the fourth quarter of 2007, the Company recorded a $99 million charge to increase long-term disability obligations for US
Airways' pilots as a result of a change in the FAA mandated retirement age for pilots from 60 to 65.
20. Financial information for subsidiary guarantors and non-guarantor subsidiaries
The Company's 7% Senior Convertible Notes are fully and unconditionally guaranteed, jointly and severally and on a senior
subordinated basis, by US Airways and AWA (the "Subsidiary Guarantors"). The other subsidiaries of the Company (the "Non-Guarantor
Subsidiaries") do not guarantee the 7% Senior Convertible Notes. Presented below is consolidating financial information for the
Company, the Subsidiary Guarantors and the Non-Guarantor Subsidiaries at December 31, 2007 and 2006 and for the twelve months
ended December 31, 2007, 2006 and 2005.
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