US Airways 2008 Annual Report Download - page 37

Table of Contents
Successor Company (a) Predecessor Company(a)
December 31,
2008 2007 2006 2005 2004
(In millions)
Consolidated balance sheet data (at end of period):
Total assets $ 6,954 $ 7,787 $ 7,351 $ 6,763 $ 8,250
Long-term obligations, less current maturities(e) 2,925 2,073 2,194 3,306 4,815
Total stockholder's equity (deficit) (221) 1,850 (461) (810) (501)
(a) In connection with emergence from bankruptcy in September 2005, US Airways adopted fresh-start reporting in accordance with
AICPA Statement of Position 90-7, "Financial Reporting by Entities in Reorganization Under the Bankruptcy Code." As a result of
the application of fresh-start reporting, the financial statements after September 30, 2005 are not comparable with the financial
statements from periods prior to September 30, 2005. References to "Successor Company" refer to US Airways on and after
September 30, 2005, after the application of fresh-start reporting for the bankruptcy.
(b) The 2008 period included a $622 million non-cash charge to write off all of the goodwill created by the merger of US Airways Group
and America West Holdings in September 2005, as well as $496 million of net unrealized losses on fuel hedging instruments. In
addition, the 2008 period included $35 million of merger related transition expenses, $18 million in non-cash charges related to the
decline in fair value of certain spare parts associated with US Airways' Boeing 737 aircraft fleet and as a result of US Airways'
capacity reductions, $14 million in lease return costs and penalties related to certain Airbus aircraft and $9 million in charges related
to involuntary furloughs as well as terminations of non-union administrative and management staff.
The 2007 period included $187 million of net unrealized gains on fuel hedging instruments, $7 million in tax credits due to an IRS
rule change allowing US Airways to recover tax amounts for years 2003-2006 for certain fuel usage and $9 million of insurance
settlement proceeds related to business interruption and property damages incurred as a result of Hurricane Katrina in 2005. These
credits were offset by $99 million of merger related transition expenses, a $99 million charge for an increase to long-term disability
obligations for US Airways' pilots as a result of the FAA mandated pilot retirement age change and $4 million in charges for certain
separation packages and lease termination costs related to reduced flying from Pittsburgh.
The 2006 period included $131 million of merger related transition expenses and $70 million of net unrealized losses on fuel hedging
instruments, offset by a $90 million gain associated with the return of equipment deposits upon forgiveness of a loan and $3 million
of gains associated with the settlement of bankruptcy claims.
The period for the three months ended December 31, 2005 included $69 million of net unrealized losses on fuel hedging instruments,
$28 million of merger related transition expenses, $7 million of power by the hour program penalties associated with the return of
certain leased aircraft and $1 million of severance costs for terminated employees resulting from the merger.
(c) The 2008 period included $214 million in non-cash charges to record other than temporary impairments for US Airways' investments
in auction rate securities primarily driven by the length of time and extent to which the fair values have been less than cost as well as
$6 million in write offs of debt discount and debt issuance costs in connection with the refinancing of certain aircraft equipment notes
and a loan prepayment in connection with US Airways' 2008 financing transactions, offset by $8 million in gains on forgiveness of
debt.
The 2007 period included a non-cash expense for income taxes of $7 million related to the utilization of NOL that was generated
prior to the merger. The decrease in the corresponding valuation allowance was recognized as a reduction of goodwill rather than a
reduction in tax expense. In addition, the period also included a $17 million gain recognized on the sale of stock in ARINC
Incorporated, offset by a $10 million non-cash charge to record other than temporary impairment for US Airways' investments in
auction rate securities.
The 2006 period included a non-cash expense for income taxes of $85 million related to the utilization of NOL that was generated
prior to the merger. In addition, the period included $6 million of prepayment penalties and $5 million in accelerated amortization of
debt issuance costs in connection with the refinancing of the loan
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