US Airways 2007 Annual Report Download - page 134

Table of Contents
US Airways, Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2007, 2006 and 2005
Predecessor
Successor Company Company
Three Months Nine Months
Year Ended Year Ended Ended Ended
December 31, December 31, December 31, September 30,
2007 2006 2005 2005
(In millions)
Cash flows from operating activities:
Net income (loss) $ 478 $ 349 $ (256) $ 280
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities before
reorganization items, net:
Fresh-start adjustments — — — (697)
Cumulative effect of change in accounting principle — (1) — —
Depreciation and amortization 198 183 53 158
Gains on curtailment of pension and postretirement benefits — — — (255)
Loss (gain) on dispositions of property — (1) 1 (2)
Gain on forgiveness of debt — (90) — —
Gain on sale of investments (17) — — —
Impairment on auction rate securities 10 — — —
Utilization of acquired net operating loss carryforwards 7 85 — —
Change in the fair value of fuel hedging instruments, net (187) 70 69 —
Amortization of deferred credits (43) (43) (16) (66)
Amortization of deferred rent 3 5 1 —
Amortization of warrants — — 8 —
Amortization of debt issuance costs and guarantee fees 1 1 10 —
Amortization of debt discount 12 12 14 —
Stock-based compensation — — — 10
Debt extinguishment costs — 5 2 —
Other — — (34) (8)
Changes in operating assets and liabilities:
Decrease (increase) in restricted cash (1) 6 79 12
Decrease (increase) in accounts receivables, net 17 (36) 72 (42)
Decrease (increase) in expendable spare parts and supplies, net (2) (16) 5 (8)
Decrease (increase) in prepaid expenses (55) 37 (30) (24)
Decrease (increase) in other assets, net (8) 5 19 7
Increase (decrease) in accounts payable (26) 16 (46) 41
Increase (decrease) in air traffic liability (22) 59 (123) 175
Decrease in payable to affiliate (28) — — —
Increase (decrease) in accrued compensation and vacation benefits (36) 49 11 30
Increase (decrease) in accrued taxes (22) 36 (27) 56
Increase (decrease) in other liabilities 151 (82) 17 (30)
Net cash provided by (used in) operating activities before reorganization items 430 649 (171) (363)
Reorganization items, net — — (33) (92)
Net cash provided by (used in) operating activities 430 649 (204) (455)
Cash flows from investing activities:
Purchases of property and equipment (486) (222) (5) (136)
Purchases of marketable securities (2,591) (2,583) (395) —
Sales of marketable securities 3,203 1,785 112 —
Proceeds from sale of other investments 56 — — —
Decrease (increase) in long-term restricted cash 200 128 (89) (81)
Proceeds from sales of property and equipment and sale-leaseback transactions 4 7 539 211
Increase in equipment purchase deposits (80) (8) — —
Net cash provided by (used in) investing activities 306 (893) 162 (6)
Cash flows from financing activities:
Repayments of debt and capital lease obligations (105) (100) (436) (215)
Proceeds from issuance of debt 198 92 — 140
Proceeds from issuance of debtor-in-possession financings — — — 125
Increase in payables to affiliates, net — 247 607 53
Net cash provided by financing activities 93 239 171 103
Net increase (decrease) in cash and cash equivalents 829 (5) 129 (358)
Cash and cash equivalents at beginning of period 1,111 1,116 987 734
Cash and cash equivalents at end of period $ 1,940 $ 1,111 $ 1,116 $ 376
See accompanying notes to consolidated financial statements.
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