US Airways 2007 Annual Report Download - page 90

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
(c) Fair Values of Financial Instruments
Cash, Cash Equivalents and Investments in Marketable Securities
As of December 31, 2007 and 2006, the Company's cash and cash equivalents are as follows (in millions):
2007 2006
Cash and cash equivalents:
Corporate notes $ 90 $ 731
Cash and money market funds 1,858 385
Total cash and cash equivalents $ 1,948 $ 1,116
The carrying amount of cash equivalents approximates fair value because of the short-term nature of these instruments.
As of December 31, 2007 and 2006, the Company's investments in marketable securities are classified as follows (in millions):
Unrealized
Investments in marketable securities Cost Basis Loss Fair Value
December 31, 2007
Held to maturity securities:
Corporate bonds $ 125 $ — $ 125
U.S. government sponsored enterprises 81 — 81
Certificates of deposit 20 — 20
Total investments in marketable securities-current $ 226 $ — $ 226
Available for sale securities:
Auction rate securities 401 48 353
Total investments in marketable securites-noncurrent $ 401 $ 48 $ 353
December 31, 2006
Held to maturity securities:
Corporate bonds $ 79 $ — $ 79
U.S. government sponsored enterprises 78 — 78
Commercial paper 20 — 20
Total held to maturity securities 177 — 177
Available for sale securities:
Auction rate securities 1,072 — 1,072
Total investments in marketable securities-current $ 1,249 $ — $ 1,249
All held to maturity securities mature in one year or less.
As of December 31, 2007, the Company held auction rate securities totaling $411 million at par value, which are classified as
available for sale securities and noncurrent assets on the Company's balance sheet. Contractual maturities for these auction rate securities
are greater than nine years with an interest reset date approximately every 28 days. Historically, the carrying value of auction rate
securities approximated fair value due to the frequent resetting of the interest rates. With the liquidity issues experienced in the global
credit and capital markets, the Company's auction rate securities have experienced multiple failed auctions. While the Company continues
to earn
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