US Airways 2007 Annual Report Download - page 155

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
5. Debt, including capital lease obligations
The following table details US Airways' debt as of December 31, 2007 and 2006 (in millions). Variable interest rates listed are the
rates as of December 31, 2007 unless noted.
December 31, December 31,
2007 2006
Secured
Equipment notes payable, fixed and variable interest rates ranging from 6.55% to 9.62%, averaging 7.57% as
of December 31, 2007 $ 1,378 $ 1,258
Slot financing, interest rate of 8%, installments due through 2015(a) 47 47
Capital lease obligations, interest rate of 8%, installments due through 2021(b) 41 41
Senior secured discount notes, variable interest rate of 8.24%, installments due 2005 through 2009(c) 32 33
GE credit facility(d) — 21
Capital lease obligations, computer software, installments due through 2009 1 2
1,499 1,402
Unsecured
GE Engine Maintenance term note, variable interest of 8.79%, installments due 2008 through 2011(e) 57 45
Industrial development bonds, fixed interest rate of 6.3% due 2023(f) 29 29
Barclays prepaid miles (formerly Juniper prepaid miles)(d) — 325
Note payable to Pension Benefit Guaranty Corporation, interest rate of 6%, interest only payments until due
2012(g) 10 10
96 409
Total long-term debt and capital lease obligations 1,595 1,811
Less: Unamortized discount on debt (121) (133)
Current maturities (101) (95)
Long-term debt and capital lease obligations, net of current maturities $ 1,373 $ 1,583
(a) In September 2005, US Airways entered into an agreement with Republic to sell and leaseback certain of its commuter slots at
Ronald Reagan Washington National Airport and New York LaGuardia Airport. US Airways continues to hold the right to
repurchase the slots anytime after the second anniversary of the slot sale-leaseback transaction. These transactions were accounted
for as secured financings. Installments are due monthly through 2015. In December 2006, Republic and US Airways modified
terms of the agreement to conform to subsequent regulatory changes at LaGuardia, and the slots were returned to US Airways. The
need for a subsequent modification was fully contemplated in the original agreement.
(b) Capital lease obligations consist principally of certain airport maintenance and facility leases which expire in 2018 and 2021.
(c) On December 27, 2004, AWA raised additional capital by financing its Phoenix maintenance facility and flight training center.
The flight training center was previously unencumbered, and the maintenance facility became unencumbered earlier in 2004 when
AWA refinanced its term loan. Using its leasehold interest in these two facilities as collateral, AWA, through a wholly owned
subsidiary named FTCHP LLC, raised $31 million through the issuance of senior secured discount notes. The notes were issued by
FTCHP at a discount pursuant to the terms of a senior secured term loan agreement among AWA, FTCHP, Heritage Bank SSB, as
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