US Airways 2009 Annual Report Download - page 113

Table of Contents
20. Selected Quarterly Financial Information (unaudited)
Summarized quarterly financial information for 2009 and 2008 is as follows (in millions, except share and per share amounts):
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
2009
Operating revenues $ 2,455 $ 2,658 $ 2,719 $ 2,626
Operating expenses 2,480 2,536 2,713 2,612
Operating income (loss) (25) 122 6 14
Nonoperating expenses, net (78) (64) (86) (131)
Income tax benefit — — — (38)
Net income (loss) (103) 58 (80) (79)
Earnings (loss) per common share:
Basic: $ (0.90) $ 0.47 $ (0.60) $ (0.49)
Diluted: $ (0.90) $ 0.42 $ (0.60) $ (0.49)
Shares used for computation (in thousands):
Basic 114,121 123,790 132,985 161,103
Diluted 114,121 144,125 132,985 161,103
2008
Operating revenues $ 2,840 $ 3,257 $ 3,261 $ 2,761
Operating expenses 3,036 3,793 3,950 3,139
Operating loss (196) (536) (689) (378)
Nonoperating expenses, net (41) (32) (174) (168)
Income tax provision (benefit) — — 3 (3)
Net loss (237) (568) (866) (543)
Loss per common share:
Basic: $ (2.58) $ (6.17) $ (8.46) $ (4.76)
Diluted: $ (2.58) $ (6.17) $ (8.46) $ (4.76)
Shares used for computation (in thousands):
Basic 92,023 92,137 102,406 114,106
Diluted 92,023 92,137 102,406 114,106
The Company's 2009 and 2008 fourth quarter results were impacted by recognition of the following items:
Fourth quarter 2009 operating expenses included $33 million of net special charges consisting of $16 million in non-cash impairment
charges due to the decline in fair value of certain indefinite lived intangible assets associated with international routes, $5 million in
aircraft costs as a result of the Company's previously announced capacity reductions, $6 million in severance charges and $6 million in
costs related to the Company's liquidity improvement program. Operating expenses also included $3 million in non-cash charges related
to the decline in fair value of certain Express spare parts. Nonoperating expenses, net included $49 million in non-cash charges associated
with the sale of 10 Embraer 190 aircraft and write off of related debt discount and issuance costs. Income tax benefit includes $21 million
of a non-cash income tax benefit related to gains recorded within other comprehensive income, a $14 million tax benefit related to a
legislation change allowing the Company to carry back 100% of 2008 AMT net operating losses, resulting in the recovery of AMT
amounts paid in prior years and a $3 million tax benefit related to the reversal of the deferred tax liability associated with the indefinite
lived intangible assets that were impaired during 2009.
Fourth quarter 2008 operating expenses included $234 million of net unrealized losses on fuel hedging instruments and $8 million of
net special charges consisting of $7 million in aircraft costs and $1 million in severance charges, both as a result of the Company's
capacity reductions. Non-operating expenses, net included $74 million in other-than-temporary non-cash impairment charges for the
Company's investments in auction rate securities as well as $5 million in write offs of debt issuance costs resulting from certain loan
prepayments.
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