US Airways 2007 Annual Report Download - page 125

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
US Airways Group, Inc.
Consolidating Statement of Cash Flows
For the year ended December 31, 2007
US Airways
Group, Inc. (Parent Subsidiary Non-Guarantor US Airways Group,
Company Only) Guarantors Subsidiaries Eliminations Inc. Consolidated
(In millions)
Cash flows from operating activities:
Net income $ 427 $ 478 $ 7 $ (485) $ 427
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization — 196 16 — 212
Gains on curtailment of pension benefit — — (5) — (5)
Loss on dispositions of property — — 1 — 1
Gain on sale of investments — (17) — — (17)
Impairment on auction rate securities — 10 — — 10
Utilization of acquired net operating loss carryforwards — 7 — — 7
Change in fair value of fuel hedging instruments, net — (187) — — (187)
Amortization of deferred credits — (43) — — (43)
Amortization of deferred rent — 3 — — 3
Amortization of debt issuance costs and guarantee fees 1 1 — — 2
Amortization of debt discount — 11 1 — 12
Stock-based compensation 32 — — — 32
Debt extinguishment costs 18 — — — 18
Equity in earnings of subsidiaries (489) 4 — 485 —
Changes in operating assets and liabilities:
Increase in restricted cash — (1) — — (1)
Decrease (increase) in accounts receivable, net — 17 (3) — 14
Increase in expendable spare parts and supplies, net — (2) (16) — (18)
Decrease (increase) in prepaid expenses — (55) 3 — (52)
Increase in other assets, net (6) (8) — — (14)
Increase (decrease) in accounts payable — (26) 15 — (11)
Decrease in air traffic liability — (22) — — (22)
Increase (decrease) in payable to affiliate 5 (30) 25 — —
Decrease in accrued compensation and vacation benefits — (36) (1) — (37)
Decrease in accrued taxes (6) (22) (1) — (29)
Increase (decrease) in other liabilities (6) 152 (6) — 140
Net cash provided by (used in) operating activities (24) 430 36 — 442
Cash flows from investing activities:
Purchases of property and equipment — (486) (37) — (523)
Purchases of marketable securities — (2,591) — — (2,591)
Sales of marketable securities — 3,203 — — 3,203
Proceeds from sale of other investments — 56 — — 56
Decrease in long-term restricted cash — 200 — — 200
Proceeds from disposition of property and equipment — 4 — — 4
Increase in equipment purchase deposits — (80) — — (80)
Net cash provided by (used in) investing activities — 306 (37) — 269
Cash flows from financing activities:
Repayments of debt and capital lease obligations (1,575) (104) (1) — (1,680)
Proceeds from issuance of debt 1,600 198 — — 1,798
Proceeds from issuance of common stock, net 3 — — — 3
Net cash provided by (used in) financing activities 28 94 (1) — 121
Net increase (decrease) in cash and cash equivalents 4 830 (2) — 832
Cash and cash equivalents at beginning of year 2 1,110 4 — 1,116
Cash and cash equivalents at end of year $ 6 $ 1,940 $ 2 $ — $ 1,948
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