US Airways 2007 Annual Report Download - page 143

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
Had US Airways determined compensation cost based on the fair value at the grant date for its stock options, stock appreciation
rights and restricted stock units under SFAS 123 for the three months ended December 31, 2005, US Airways' net loss would have been
adjusted as indicated below (in millions):
Three Months
Ended
December 31,
2005
Net loss, as reported $ (256)
Add: Stock-based compensation included in reported net loss 4
Deduct: Stock-based compensation determined under the fair value based method (3)
Pro forma net loss $ (255)
(p) Maintenance and Repair Costs
Maintenance and repair costs for owned and leased flight equipment are charged to operating expense as incurred.
(q) Selling Expenses
Selling expenses include commissions, credit card fees, computerized reservations systems fees, advertising and promotional
expenses. Advertising and promotional expenses are expensed when incurred. Advertising and promotional expenses for the years ended
December 31, 2007, 2006, the three months ended December 31, 2005 and nine months ended September 30, 2005 were $16 million,
$16 million, $2 million and $14 million, respectively.
(r) Express Expenses
Expenses associated with US Airways' former MidAtlantic division, US Airways Group's wholly owned regional airlines and
affiliate regional airlines operating as US Airways Express are classified as Express expenses on the consolidated statements of
operations. Effective May 27, 2006, the transfer of certain MidAtlantic assets to Republic was complete, and Republic assumed the
operations of the aircraft as a US Airways affiliate Express carrier. Express expenses on the consolidated statements of operations consist
of the following (in millions):
Successor Company Predecessor Company
Year Ended Year Ended Three Months Ended Nine Months Ended
December 31, December 31, December 31, September 30,
2007 2006 2005 2005
Aircraft fuel and related taxes $ 765 $ 764 $ 193 $ 328
Salaries and related costs 20 36 15 55
Capacity purchases 1,599 1,551 351 740
Other rent and landing fees 93 97 25 73
Aircraft rent — 9 10 21
Selling expenses 157 148 32 66
Aircraft maintenance — 2 3 9
Depreciation and amortization — — — 7
Other expenses 93 63 12 73
Express expenses $ 2,727 $ 2,670 $ 641 $ 1,372
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