US Airways 2009 Annual Report Download - page 120

Table of Contents
intercompany accounts and transactions between US Airways and its wholly owned subsidiaries have been eliminated.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. The principal areas of judgment relate to passenger revenue
recognition, impairment of long-lived and intangible assets, valuation of investments in marketable securities, the frequent traveler
program and the deferred tax asset valuation allowance.
US Airways evaluated subsequent events through the date the accompanying financial statements were issued, which was February 16,
2010.
(c) Cash and Cash Equivalents
Cash equivalents consist primarily of cash in money market securities and highly liquid debt instruments. All highly liquid investments
purchased within three months of maturity are classified as cash equivalents. Cash equivalents are stated at cost, which approximates fair
value due to the highly liquid nature and short-term maturities of the underlying securities.
As of December 31, 2009 and 2008, US Airways' cash and cash equivalents are as follows (in millions):
2009 2008
Cash and money market funds $ 1,209 $ 1,016
Corporate bonds — 10
Total cash and cash equivalents $ 1,209 $ 1,026
(d) Investments in Marketable Securities
All highly liquid investments with maturities greater than three months but less than one year are classified as current investments in
marketable securities. Investments in marketable securities classified as noncurrent assets on US Airways' balance sheet represent
investments expected to be converted to cash after 12 months. Debt securities, other than auction rate securities, are classified as held to
maturity. Held-to-maturity investments are carried at amortized cost, which approximates fair value. Investments in auction rate securities
are classified as available for sale and recorded at fair value.
As of December 31, 2009 and 2008, US Airways' investments in marketable securities are classified as follows (in millions):
2009 2008
Held-to-maturity securities:
Corporate bonds $ — $ 20
Total investments in marketable securities-current — $ 20
Available-for-sale securities:
Auction rate securities 203 187
Total investments in marketable securities-noncurrent $ 203 $ 187
See Note 5(b) for more information on US Airways' investments in marketable securities.
(e) Restricted Cash
Restricted cash includes deposits in trust accounts primarily to fund certain taxes and fees and workers' compensation claims, deposits
securing certain letters of credit and surety bonds and deposits held by institutions that process credit card sales transactions. Restricted
cash is stated at cost, which approximates fair value.
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