US Airways 2009 Annual Report Download - page 142

Table of Contents
$154 million and $156 million, respectively. US Airways also leases or subleases certain aircraft to these regional airline subsidiaries. US
Airways recognized other operating revenues of $78 million related to these arrangements for each of the years ended December 31,
2009, 2008 and 2007, respectively.
US Airways purchases a portion of its aviation fuel from US Airways Group's wholly owned subsidiary, MSC, which acts as a fuel
wholesaler to US Airways in certain circumstances. For the years ended December 31, 2009, 2008 and 2007, MSC sold fuel totaling
$677 million, $1.33 billion and $1.02 billion, respectively, used by US Airways' mainline and Express flights.
12. Operating Segments and Related Disclosures
US Airways is managed as a single business unit that provides air transportation for passengers and cargo. This allows it to benefit
from an integrated revenue pricing and route network that includes US Airways, Piedmont, PSA and third-party carriers that fly under
capacity purchase or prorate agreements as part of US Airways' Express operations. The flight equipment of all these carriers is combined
to form one fleet that is deployed through a single route scheduling system. When making resource allocation decisions, the chief
operating decision maker evaluates flight profitability data, which considers aircraft type and route economics, but gives no weight to the
financial impact of the resource allocation decision on an individual carrier basis. The objective in making resource allocation decisions is
to maximize consolidated financial results, not the individual results of US Airways and US Airways Express.
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,
2009 2008 2007
United States $ 8,405 $ 9,760 $ 9,675
Foreign 2,204 2,484 2,138
Total $ 10,609 $ 12,244 $ 11,813
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. Cash settled awards do not reduce the number of shares available for issuance under the 2008 Plan.
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
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