US Airways 2007 Annual Report Download - page 148

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
Adjustments made in the year ended December 31, 2007 and 2006 to previously recorded fair values are as follows (in millions):
Goodwill reported as of September 30, 2005 $ 732
Utilization of pre-merger NOL (85)
Materials and supplies, net 32
Accounts receivable (22)
Other assets (22)
Noncurrent employee benefits and other 12
Related party payables (9)
Property and equipment 6
Long-term debt (6)
Accrued compensation and vacation (4)
Other accrued expenses (3)
Accrued taxes (2)
Accounts payable (1)
Other intangibles, net 1
Goodwill reported as of December 31, 2006 629
Utilization of pre-merger NOL 7
Goodwill reported as of December 31, 2007 $ 622
The 2007 adjustment to goodwill is related to the utilization of pre-merger NOL generated by US Airways prior to the merger. In
accordance with SFAS No. 109, the associated decrease in the valuation allowance reduced goodwill. Adjustments in 2006 resulted as
further refinement of information became available on assets and liabilities that existed as of the acquisition date. In accordance with
SFAS 141, the allocation of equity values is subject to adjustment for up to one year after the date of acquisition when additional
information on asset and liability valuations becomes available. Significant adjustments included an adjustment for the utilization of pre-
merger NOL generated by US Airways prior to the merger; an adjustment to accounts receivable to reflect credits due from Republic
related to pre-merger aircraft lease assumptions; adjustments to materials and supplies for the refinement of fair market value information
available at the time of the acquisition; adjustments to other assets for the application of pre-merger airport operating expense and rent
credits and a fair market value adjustment to an investment; and adjustments to other accrued expenses to refine estimates for remaining
pending bankruptcy claim matters.
(c) Reorganization Items, Net
SOP 90-7 requires that the financial statements for periods following the Chapter 11 filing through emergence distinguish
transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly,
revenues, expenses, realized gains and losses and provisions for losses directly associated with the reorganization and restructuring of the
business are reported separately as reorganization items,
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