US Airways 2007 Annual Report Download - page 126

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, 2006
US Airways US Airways
Group, Inc. (Parent Subsidiary Non-Guarantor Group, Inc.
Company Only) Guarantors Subsidiaries Eliminations Consolidated
(In millions)
Cash flows from operating activities:
Net income (loss) $ 304 $ 349 $ (17) $ (332) $ 304
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Cumulative effect of change in accounting principle — (1) — — (1)
Depreciation and amortization — 180 18 — 198
Loss (gain) on dispositions of property — (1) 1 — —
Gain on forgiveness of debt — (90) — — (90)
Utilization of acquired net operating loss carryforwards — 85 — — 85
Change in fair value of fuel hedging instruments, net — 70 — — 70
Amortization of deferred credits — (43) — — (43)
Amortization of deferred rent — 5 — — 5
Amortization of debt issuance costs and guarantee fees 3 — 1 — 4
Amortization of debt discount — 11 1 — 12
Stock-based compensation 34 — — — 34
Debt extinguishment costs 2 5 — — 7
Premium paid in conversion of 7% convertible notes 17 — — — 17
Equity in earnings of subsidiaries (337) 5 — 332 —
Other — — (1) — (1)
Changes in operating assets and liabilities:
Decrease in restricted cash — 6 — — 6
Decrease (increase) in accounts receivable, net — (36) 1 — (35)
Increase in expendable spare parts and supplies, net — (16) (9) — (25)
Decrease (increase) in prepaid expenses — 37 (15) — 22
Decrease (increase) in other assets, net (22) 5 1 — (16)
Increase (decrease) in accounts payable (1) 16 (17) — (2)
Increase in air traffic liability — 59 — — 59
Increase in accrued compensation and vacation benefits 1 49 6 — 56
Increase in accrued taxes — 36 2 — 38
Decrease in other liabilities — (83) (3) — (86)
Net cash provided by (used in) operating activities 1 648 (31) — 618
Cash flows from investing activities:
Purchases of property and equipment — (222) (10) — (232)
Purchases of marketable securities — (2,583) — — (2,583)
Sales of marketable securities — 1,785 — — 1,785
Decrease in long-term restricted cash — 128 — — 128
Proceeds from dispositions of property and equipment — 7 — — 7
Increase in equipment purchase deposits — (8) — — (8)
Net cash used in investing activities — (893) (10) — (903)
Cash flows from financing activities:
Repayments of debt and capital lease obligations (1,087) (98) (2) — (1,187)
Proceeds from issuance of debt 1,327 92 — — 1,419
Proceeds from issuance of common stock, net 44 — — — 44
Increase (decrease) in payables to affiliate, net (291) 245 46 — —
Net cash provided by (used in) financing activities (7) 239 44 — 276
Net increase (decrease) in cash and cash equivalents (6) (6) 3 — (9)
Cash and cash equivalents at beginning of year 8 1,116 1 — 1,125
Cash and cash equivalents at end of year $ 2 $ 1,110 $ 4 $ — $ 1,116
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