US Airways 2007 Annual Report Download - page 180

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
15. Valuation and qualifying accounts (in millions)
Balance at Balance
Beginning at End
Description of Period Additions Deductions of Period
Allowance for doubtful receivables:
Year ended December 31, 2007 $ 8 $ 9 $ 13 $ 4
Year ended December 31, 2006 $ 10 $ 7 $ 9 $ 8
Three months ended December 31, 2005 $ 8 $ 4(a) $ 2 $ 10
Nine months ended September 30, 2005 $ 22 $ 5 $ 19 $ 8
Allowance for inventory obsolescence:
Year ended December 31, 2007 $ 29 $ 10 $ 1 $ 38
Year ended December 31, 2006 $ 24 $ 9 $ 4 $ 29
Three months ended December 31, 2005 $ — $ 24(a) $ — $ 24
Nine months ended September 30, 2005 $ 13 $ 5 $ 18(b) $ —
Valuation allowance on deferred tax asset, net:
Year ended December 31, 2007 $ 263 $ — $ 180 $ 83
Year ended December 31, 2006 $ 440 $ — $ 177 $ 263
Three months ended December 31, 2005 $ 99 $ 341(a) $ — $ 440
Nine months ended September 30, 2005 $ 822 $ — $ 723 $ 99
(a) Allowance for doubtful receivables additions, allowance for inventory obsolescence additions and valuation allowance on deferred
tax asset additions in the three months ended December 31, 2005 include $2 million, $14 million and $137 million, respectively,
related to the transfer of substantially all of AWA's assets and liabilities to US Airways, presented as though the transfer had
occurred at the time of US Airways' emergence from bankruptcy. See Note 1(b).
(b) Allowance for obsolescence of inventories eliminated upon adoption of fresh start reporting. See Note 2(b).
16. Selected quarterly financial information (unaudited)
Summarized quarterly financial information for 2007 and 2006, before the cumulative effect of change in accounting principle, are
as follows (in millions):
2007 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Operating revenues $ 2,761 $ 3,185 $ 3,065 $ 2,802
Operating expenses 2,631 2,890 2,863 2,905(a)
Operating income (loss) 130 295 202 (103)
Nonoperating expenses, net (23) (4) (10) (2)
Income tax provision (benefit) 3 8 5 (9)
Income (loss) 104 283 187 (96)
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