US Airways 2008 Annual Report Download - page 163

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
Information concerning operating revenues in principal geographic areas is as follows (in millions):
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2008 2007 2006
United States $ 9,760 $ 9,675 $ 9,504
Foreign 2,484 2,138 2,188
Total $ 12,244 $ 11,813 $ 11,692
US Airways attributes operating revenues by geographic region based upon the origin and destination of each flight segment. US
Airways' tangible assets consist primarily of flight equipment, which are mobile across geographic markets and, therefore, have not been
allocated.
13. Stock-based compensation
In June 2008, the stockholders of US Airways Group approved the 2008 Equity Incentive Plan (the "2008 Plan"). The 2008 Plan
replaces and supersedes the 2005 Equity Incentive Plan (the "2005 Plan"). No additional awards will be made under the 2005 Plan,
although outstanding awards previously made under the 2005 Plan will continue to be governed by the terms and conditions of the 2005
Plan. Any shares subject to an award under the 2005 Plan outstanding as of the date on which the 2008 Plan was approved by the Board
that expire, are forfeited or otherwise terminate unexercised will increase the shares reserved for issuance under the 2008 Plan by (i) one
share for each share of stock issued pursuant to a stock option or stock appreciation right and (ii) three shares for each share of stock
issued pursuant to a restricted stock unit, which corresponds to the reduction originally made with respect to each award in the 2005 Plan.
The 2008 Plan authorizes the grant of awards for the issuance of up to a maximum of 6,700,000 shares of US Airways Group's
common stock. Awards may be in the form of performance grants, bonus awards, performance shares, restricted stock awards, vested
shares, restricted stock units, vested units, incentive stock options, nonstatutory stock options and stock appreciation rights. The number
of shares of US Airways Group's common stock available for issuance under the 2008 Plan is reduced by (i) one share for each share of
stock issued pursuant to a stock option or a stock appreciation right, and (ii) one and one-half (1.5) shares for each share of stock issued
pursuant to all other stock awards. Stock awards that are terminated, forfeited or repurchased result in an increase in the share reserve of
the 2008 Plan corresponding to the reduction originally made in respect of the award. Any shares of the US Airways Group's stock
tendered or exchanged by a participant as full or partial payment to US Airways Group of the exercise price under an option and any
shares retained or withheld by US Airways Group in satisfaction of an employee's obligations to pay applicable withholding taxes with
respect to any award will not be available for reissuance, subjected to new awards or otherwise used to increase the share reserve under
the 2008 Plan. The cash proceeds from option exercises will not be used to repurchase shares on the open market for reuse under the 2008
Plan.
US Airways' net income (loss) for the years ended December 31, 2008, 2007 and 2006 includes $34 million, $32 million and
$34 million, respectively, of compensation costs related to share-based payments. Upon adoption of SFAS No. 123R, "Share-Based
Payment," US Airways Group recorded a cumulative benefit from the accounting change of $1 million, which reflects the impact of
estimating future forfeitures for previously recognized compensation expense. No income tax effect related to share-based payments or
cumulative effect has been recorded as the effects have been immediately offset by the recording of a valuation allowance through the
same financial statement caption.
Restricted Stock Unit Awards — As of December 31, 2008, US Airways Group has outstanding restricted stock unit awards
("RSUs") with service conditions (vesting periods) and RSUs with service and performance conditions (which the performance condition
of obtaining a combined operating certificate for AWA and US Airways was met on September 26, 2007). SFAS No. 123R requires that
the grant-date fair value of RSUs be equal
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