US Airways 2007 Annual Report Download - page 170

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
US Airways' use or occupancy of the leased asset. In some cases, this indemnity extends to related liabilities arising from the negligence
of the indemnified parties, but usually excludes any liabilities caused by their gross negligence or willful misconduct. In aircraft financing
agreements structured as leveraged leases, US Airways typically indemnifies the lessor with respect to adverse changes in U.S. tax laws.
US Airways reviewed its long-term operating leases at a number of airports, including leases where US Airways is also the
guarantor of the underlying debt. Such leases are typically with municipalities or other governmental entities. The arrangements are not
required to be consolidated based on the provisions of FIN 46(R).
US Airways is a guarantor of the $1.6 billion Citicorp credit facility.
US Airways Group's 7% Senior Convertible Notes are fully and unconditionally guaranteed, jointly and severally and on a senior
unsecured basis, by US Airways and AWA.
(g) Concentration of Credit Risks
US Airways invests available cash in money market securities of various banks, commercial paper and asset-backed securities of
various financial institutions, other companies with high credit ratings and securities backed by the U.S. government.
As of December 31, 2007, most of US Airways' receivables related to tickets sold to individual passengers through the use of major
credit cards or to tickets sold by other airlines and used by passengers on US Airways or its regional airline affiliates. These receivables
are short-term, mostly being settled within seven days after sale. Bad debt losses, which have been minimal in the past, have been
considered in establishing allowances for doubtful accounts. US Airways does not believe it is subject to any significant concentration of
credit risk.
9. Other comprehensive income (loss)
US Airways' other comprehensive income (loss) for the years ended December 31, 2007, 2006, three months ended December 31,
2005 and nine months ended September 30, 2005 consist of the following (in millions):
Successor Company Predecessor Company
Three Months Ended Nine Months Ended
Years Ended December 31, December 31, September 30,
2007 2006 2005 2005
Net income (loss) $ 478 $ 349 $ (256) $ 280
Unrealized losses on available for sale securities (48) — — —
Reclassification adjustment for fuel cash flow hedge gains included in
net income (loss) during the period — — — (17)
Actuarial gains associated with pension and other postretirement
benefits 47 — — 29
Adjustments in connection with reorganization — — — 86
Total comprehensive income (loss) $ 477 $ 349 $ (256) $ 378
US Airways' accumulated other comprehensive loss consisted of $48 million in unrealized losses on available for sale securities and
$47 million of actuarial gain associated with pension and other postretirement benefits as of December 31, 2007. The accumulated other
comprehensive loss is not presented net of tax as any tax effects resulting from the items above have been immediately offset by the
recording of a valuation allowance through the same financial statement caption. US Airways did not have any accumulated other
comprehensive income as of December 31, 2006.
168