US Airways 2007 Annual Report Download - page 62

Table of Contents
Contractual Obligations
The following table provides details of our future cash contractual obligations as of December 31, 2007 (in millions):
Payments Due by Period
2008 2009 2010 2011 2012 Thereafter Total
US Airways Group(1)
Debt(2) $ 16 $ 16 $ 16 $ 16 $ 16 $ 1,594 $ 1,674
Aircraft related and other commitments 453 36 — — — — 489
US Airways(3)
Debt and capital lease obligations 101 129 105 118 123 1,019 1,595
Aircraft purchase and operating lease commitments(4) 1,472 2,264 2,240 2,105 1,571 6,142 15,794
Regional capacity purchase agreements(5) 1,062 1,106 1,125 1,158 1,017 4,679 10,147
Other US Airways Group subsidiaries(6) 11 7 2 1 1 1 23
Total $ 3,115 $ 3,558 $ 3,488 $ 3,398 $ 2,728 $ 13,435 $ 29,722
(1) These commitments represent those specifically entered into by US Airways Group or joint commitments entered into by US
Airways Group and US Airways under which each entity is jointly and severally liable.
(2) Includes $74 million aggregate principal amount of 7% Senior Convertible Notes due 2020 issued by US Airways Group and the
$1.6 billion Citicorp credit facility due March 23, 2014.
(3) Commitments listed separately under US Airways and its wholly owned subsidiaries represent commitments under agreements
entered into separately by those companies.
(4) Aircraft purchase commitments exclude the Rolls Royce engine order announced in June 2007 as the order is contingent upon
execution of a definitive purchase agreement.
(5) Represents minimum payments under capacity purchase agreements with third-party Express carriers.
(6) Represents operating lease commitments entered into by US Airways Group's other airline subsidiaries Piedmont and PSA.
We expect to fund these cash obligations from funds provided by operations and future financings, if necessary. The cash available
to us from these sources, however, may not be sufficient to cover these cash obligations because economic factors outside our control
may reduce the amount of cash generated by operations or increase our costs. For instance, an economic downturn or general global
instability caused by military actions, terrorism, disease outbreaks and natural disasters could reduce the demand for air travel, which
would reduce the amount of cash generated by operations. An increase in our costs, either due to an increase in borrowing costs caused
by a reduction in our credit rating or a general increase in interest rates or due to an increase in the cost of fuel, maintenance, aircraft and
aircraft engines and parts, could decrease the amount of cash available to cover the cash obligations. Moreover, the Citicorp credit facility
and our amended credit card agreement with Barclays contain minimum cash balance requirements. As a result, we cannot use all of our
available cash to fund operations, capital expenditures and cash obligations without violating these requirements.
Critical Accounting Policies and Estimates
The preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United
States requires that we make certain estimates and assumptions that affect the reported amount of assets and liabilities, revenues and
expenses, and the disclosure of contingent assets and liabilities at the date of our financial statements. We believe our estimates and
assumptions are reasonable; however, actual results
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