US Airways 2008 Annual Report Download - page 36

Table of Contents
associated with the exchange of AWA's 7.25% Senior Exchangeable Notes due 2023 and retirement of a portion of the loan formerly
guaranteed by the ATSB. In the fourth quarter 2005 period, which was subsequent to the effective date of the merger, US Airways
recorded $4 million of mark-to-market gains attributable to stock options in Sabre Inc. ("Sabre") and warrants in a number of
e-commerce companies.
The 2004 period included a $1 million gain on the disposition of property and equipment due principally to the sale of one Boeing
737-200 aircraft and a $1 million charge for the write off of debt issuance costs in connection with the refinancing of a term loan.
(c) The 2006 period included a $1 million benefit which represents the cumulative effect on the accumulated deficit of the adoption of
Statement of Financial Accounting Standards ("SFAS") No. 123R, "Share-Based Payment." The adjustment reflects the impact of
estimating future forfeitures for previously recognized compensation expense.
The 2005 period included a $202 million adjustment which represents the cumulative effect on the accumulated deficit of the
adoption of the direct expense method of accounting for major scheduled airframe, engine and certain component overhaul costs as of
January 1, 2005.
(d) Includes debt, capital leases, postretirement benefits other than pensions and employee benefit liabilities and other.
Selected Consolidated Financial Data of US Airways
The selected consolidated financial data presented below under the captions "Consolidated Statements of Operations Data" and
"Consolidated Balance Sheet Data" as of and for the years ended December 31, 2008, 2007, 2006, three months ended December 31,
2005, nine months ended September 30, 2005 and year ended December 31, 2004 are derived from the audited consolidated financial
statements of US Airways. In 2007, US Airways Group contributed 100% if its equity interest in America West Holdings, the parent
company of AWA, to US Airways in connection with the combination of all mainline operations under one FAA operating certificate.
This contribution is reflected in US Airways' consolidated financial statements as though the transfer had occurred at the time of US
Airways' emergence from bankruptcy at the end of September 2005. Thus, the full years 2008, 2007 and 2006 and three months ended
December 31, 2005 are comprised of the consolidated financial data of US Airways and America West Holdings. The nine months ended
September 30, 2005 and full year 2004 consolidated financial data presented include the results of only US Airways. The selected
consolidated financial data should be read in conjunction with the consolidated financial statements for the respective periods, the related
notes and the related reports of US Airways' independent registered public accounting firm.
Successor Company(a) Predecessor Company(a)
Three Months Nine Months
Year Ended Year Ended Year Ended Ended Ended Year Ended
December 31, December 31, December 31, December 31, September 30, December 31,
2008 2007 2006 2005 2005 2004
(In millions)
Consolidated statements of operations data:
Operating revenues $ 12,244 $ 11,813 $ 11,692 $ 2,589 $ 5,452 $ 7,068
Operating expenses(b) 14,017 11,289 11,135 2,772 5,594 7,416
Operating income (loss)(b) (1,773) 524 557 (183) (142) (348)
Income (loss) before cumulative effect of change in accounting
principle(c) (2,148) 478 348 (256) 280 (578)
Cumulative effect of change in accounting principle, net(d) — — 1 — — —
Net income (loss) $ (2,148) $ 478 $ 349 $ (256) $ 280 $ (578)
34