US Airways 2007 Annual Report Download - page 181

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
2006 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Operating revenues $ 2,663 $ 3,207 $ 3,006 $ 2,816
Operating expenses 2,538 2,867 2,988 2,742
Operating income 125 340 18 74
Nonoperating expenses, net (64) (20) (19) (8)
Income tax provision — 5 61 32
Income (loss) before cumulative effect of change in accounting principle 61 315 (62) 34
(a) In the fourth quarter of 2007, US Airways recorded a $99 million charge to increase long-term disability obligations for its pilots
as a result of a change in the FAA mandated retirement age for pilots from 60 to 65.
17. Subsequent events
On February 1, 2008, US Airways entered into a loan agreement for $145 million, secured by six Bombardier CRJ-700 aircraft,
three Boeing 757 aircraft and one spare engine. The loan bears interest at a rate of LIBOR plus an applicable LIBOR margin and is
amortized over ten years. The proceeds of the loan were used to repay $97 million of the equipment notes previously secured by the six
Bombardier CRJ-700 and three Boeing 757 aircraft. 179