US Airways 2007 Annual Report Download - page 74

Table of Contents
US Airways Group, Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2007, 2006 and 2005
2007 2006 2005
(In millions)
Cash flows from operating activities:
Net income (loss) $ 427 $ 304 $ (537)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Cumulative effect of change in accounting principle — (1) 202
Depreciation and amortization 212 198 88
Gains on curtailment of pension benefit (5) — —
Loss on dispositions of property 1 — —
Gain on forgiveness of debt — (90) —
Gain on sale of investments (17) — —
Impairment on auction rate securities 10 — —
Non cash special charges, net — — 86
Utilization of acquired net operating loss carryforwards 7 85 —
Change in fair value of fuel hedging instruments, net (187) 70 (4)
Amortization of deferred credits (43) (43) (23)
Amortization of deferred rent 3 5 5
Amortization of warrants — — 12
Amortization of debt issuance costs and guarantee fees 2 4 30
Amortization of debt discount 12 12 11
Amortization of investment discount and premium, net — — 9
Stock-based compensation 32 34 5
Debt extinguishment costs 18 7 2
Premium paid in conversion of 7% senior convertible notes — 17 —
Other — (1) (18)
Changes in operating assets and liabilities:
Decrease (increase) in restricted cash (1) 6 120
Decrease (increase) in accounts receivable, net 14 (35) 55
Increase in expendable spare parts and supplies, net (18) (25) (8)
Decrease (increase) in prepaid expenses (52) 22 (63)
Decrease (increase) in other assets, net (14) (16) 11
Decrease in accounts payable (11) (2) (45)
Increase (decrease) in air traffic liability (22) 59 (54)
Increase (decrease) in accrued compensation and vacation benefits (37) 56 (1)
Increase (decrease) in accrued taxes (29) 38 (5)
Increase (decrease) in other liabilities 140 (86) 168
Net cash provided by operating activities 442 618 46
Cash flows from investing activities:
Purchases of property and equipment (523) (232) (44)
Purchases of marketable securities (2,591) (2,583) (711)
Sales of marketable securities 3,203 1,785 416
Proceeds from sale of other investments 56 — —
Cash acquired as part of acquisition — — 279
Costs incurred as part of acquisition — — (21)
Decrease (increase) in long-term restricted cash 200 128 (112)
Proceeds from dispositions of property and equipment and sale-leaseback transactions 4 7 592
Increase in equipment purchase deposits (80) (8) —
Net cash provided by (used in) investing activities 269 (903) 399
Cash flows from financing activities:
Repayments of debt and capital lease obligations (1,680) (1,187) (741)
Proceeds from issuance of debt 1,798 1,419 655
Proceeds from issuance of common stock, net 3 44 732
Acquisition of warrants — — (116)
Other — — 1
Net cash provided by financing activities 121 276 531
Net increase (decrease) in cash and cash equivalents 832 (9) 976
Cash and cash equivalents at beginning of year 1,116 1,125 149
Cash and cash equivalents at end of year $ 1,948 $ 1,116 $ 1,125
See accompanying notes to consolidated financial statements.
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