US Airways 2007 Annual Report Download - page 66

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require any new fair value measurement. This statement is effective for fiscal years beginning after November 15, 2007, and interim
periods within those fiscal years. In December of 2007, the FASB agreed to a one year deferral of SFAS No. 157's fair value
measurement requirements for nonfinancial assets and liabilities that are not required or permitted to be measured at fair value on a
recurring basis. Management is currently evaluating the requirements of SFAS No. 157 but does not expect it to have a material impact
on our 2008 consolidated financial statements.
Effective December 31, 2006, we adopted the recognition provisions of SFAS No. 158, "Employers' Accounting for Defined
Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106, and 132(R)." This statement
requires employers to recognize in their balance sheets the overfunded or underfunded status of defined benefit postretirement plans,
measured as the difference between the fair value of plan assets and the benefit obligation (the projected benefit obligation for pension
plans and the accumulated postretirement benefit obligation for other postretirement plans). The impact on our consolidated financial
statements of adopting the recognition provisions of SFAS No. 158 was not material. We recognized a nominal amount of prior changes
in the funded status of our postretirement benefit plans through accumulated other comprehensive income. The adoption of the
recognition provisions of SFAS No. 158 had no effect on our statement of operations for the year ended December 31, 2006 or for any
prior period presented.
SFAS No. 158 also requires plan assets and obligations to be measured as of the employer's balance sheet date. We currently use a
measurement date of September 30 for our other postretirement benefits. The measurement provisions of this statement are required to be
adopted no later than fiscal years beginning after December 15, 2008. We will adopt the measurement provisions of this statement in
2008. The impact on our consolidated financial statements of adoption of the measurement provisions will not be material.
In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities."
SFAS No. 159 allows entities the option to measure eligible financial instruments at fair value as of specified dates. Such election, which
may be applied on an instrument by instrument basis, is typically irrevocable once elected. SFAS 159 is effective for fiscal years
beginning after November 15, 2007. We adopted SFAS No. 159 on January 1, 2008, but have not yet elected the fair value option for any
items permitted under SFAS No. 159.
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