US Airways 2007 Annual Report Download - page 35

Table of Contents
Predecessor
Successor Company(a) Company (a)
December 31,
2007 2006 2005 2004 2003
(In millions)
Consolidated balance sheet data (at end of period):
Total assets $ 7,787 $ 7,351 $ 6,763 $ 8,250 $ 8,349
Long-term obligations, less current maturities(e) 2,223 2,344 3,456 4,815 4,591
Total stockholder's equity (deficit) 1,850 (461) (810) (501) 89
(a) In connection with emergence from the first bankruptcy in March 2003 and the second bankruptcy in September 2005, US
Airways adopted fresh-start reporting in accordance with AICPA Statement of Position 90-7, "Financial Reporting by Entities in
Reorganization Under the Bankruptcy Code." As a result of the application of fresh-start reporting, the financial statements prior
to March 31, 2003 are not comparable with the financial statements for the period April 1, 2003 to September 30, 2005, nor is
either period comparable to periods after September 30, 2005. References to "Successor Company" refer to US Airways on and
after September 30, 2005, after the application of fresh-start reporting for the second bankruptcy.
(b) The 2007 period includes $99 million of merger related transition expenses, a $99 million charge for an increase to long-term
disability obligations for US Airways' pilots as a result of a change in the FAA mandated retirement age for pilots from 60 to 65
and $4 million in charges for certain separation packages and lease termination costs related to the announced plans to reduce
flying from Pittsburgh, which was offset by $7 million in tax credits due to an IRS rule change allowing US Airways to recover
tax amounts for years 2003-2006 for certain fuel usage and $9 million of insurance settlement proceeds related to business
interruption and property damages incurred as a result of Hurricane Katrina.
The 2006 period includes $131 million of merger related transition expenses, offset by a $90 million gain associated with the
return of equipment deposits upon forgiveness of a loan and $3 million of gains associated with the settlement of bankruptcy
claims.
The period for the three months ended December 31, 2005 includes $28 million of merger related transition costs, $7 million of
power by the hour program penalties associated with the return of certain leased aircraft and $1 million of severance costs for
terminated employees resulting from the merger.
The period for the nine months ended December 31, 2003 includes a $212 million reduction in operating expenses, net of amounts
due to certain affiliates, in connection with the reimbursement for certain aviation-related security expenses in connection with the
Emergency Wartime Supplemental Appropriations Act and a $35 million charge in connection with US Airways' intention not to
take delivery of certain aircraft scheduled for future delivery.
(c) The 2007 period includes a non-cash expense for income taxes of $7 million related to the utilization of NOL that was generated
prior to the merger. The decrease in the corresponding valuation allowance was recognized as a reduction of goodwill rather than a
reduction in tax expense. In addition, the period also includes a $17 million gain recognized on the sale of stock in ARINC
Incorporated offset by a $10 million in impairment losses on certain available for sale auction rate securities considered to be other
than temporary.
The 2006 period includes a non-cash expense for income taxes of $85 million related to the utilization of NOL that was generated
prior to the merger. In addition, the period includes $6 million of prepayment penalties and $5 million in accelerated amortization
of debt issuance costs in connection with the refinancing of the loan previously guaranteed by the ATSB and two loans previously
provided to AWA by GECC, which was offset by $8 million of interest income earned by AWA on certain prior year Federal
income tax refunds.
The period for the three months ended December 31, 2005 includes an $8 million charge related to the write-off of the
unamortized value of the ATSB warrants upon their repurchase in October 2005 and an aggregate $2 million write-off of debt
issuance costs associated with the exchange of AWA's 7.25% Senior Exchangeable Notes due 2023 and retirement of a portion of
the loan formerly guaranteed by the ATSB. US Airways also recorded in this period $4 million of mark-to-market gains
attributable to stock options in Sabre and warrants in a number of e-commerce companies.
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