US Airways 2009 Annual Report Download - page 85

Table of Contents
(r) Express Expenses
Expenses associated with the Company's wholly owned regional airlines and affiliate regional airlines operating as US Airways
Express are classified as Express expenses on the consolidated statements of operations. Express expenses consist of the following (in
millions):
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2009 2008 2007
Aircraft fuel and related taxes $ 609 $ 1,137 $ 765
Salaries and related costs 246 244 245
Capacity purchases 1,059 1,049 987
Aircraft rent 51 51 51
Aircraft maintenance 81 74 76
Other rent and landing fees 121 115 112
Selling expenses 154 163 157
Depreciation and amortization 25 25 23
Special items, net 3 — —
Other expenses 170 191 178
Express expenses $ 2,519 $ 3,049 $ 2,594
(s) Recent Accounting Pronouncements
In June 2009, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS")
No. 168, "The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles — A
Replacement of FASB Statement No. 162." SFAS No. 168 establishes the FASB Accounting Standards CodificationTM (the
"Codification" or "ASC") as the single source of authoritative U.S. GAAP recognized by the FASB to be applied by nongovernmental
entities. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative U.S. GAAP
for SEC registrants. Effective July 1, 2009, the Codification superseded all existing non-SEC accounting and reporting standards.
In April 2009, the FASB issued FASB Staff Position ("FSP") Financial Accounting Standards ("FAS") 115-2 and FAS 124-2,
"Recognition and Presentation of Other-Than-Temporary Impairments," as adopted by the Codification on July 1, 2009. This FSP
changes existing guidance for determining whether an impairment of debt securities is other-than-temporary. The FSP requires
other-than-temporary impairments to be separated into the amount representing the decrease in cash flows expected to be collected from a
security (referred to as credit losses) which is recognized in earnings and the amount related to other factors (referred to as noncredit
losses) which is recognized in other comprehensive income. This noncredit loss component of the impairment may only be classified in
other comprehensive income if both of the following conditions are met (a) the holder of the security concludes that it does not intend to
sell the security and (b) the holder concludes that it is more likely than not that the holder will not be required to sell the security before
the security recovers its value. If these conditions are not met, the noncredit loss must also be recognized in earnings. When adopting the
FSP, an entity is required to record a cumulative effect adjustment as of the beginning of the period of adoption to reclassify the noncredit
component of a previously recognized other-than-temporary impairment from retained earnings to accumulated other comprehensive
income. FSP FAS 115-2 and FAS 124-2 is effective for interim and annual periods ending after June 15, 2009. The Company adopted
FSP FAS 115-2 and FAS 124-2 as of April 1, 2009. The Company does not meet the conditions necessary to recognize the noncredit loss
component of its auction rate securities in other comprehensive income. Accordingly, the Company did not reclassify any previously
recognized other-than-temporary impairment losses from retained earnings to accumulated other comprehensive income and the adoption
of FSP FAS 115-2 and FAS 124-2 had no material impact on the Company's consolidated financial statements.
In June 2009, the FASB issued SFAS No. 167, "Amendments to FASB Interpretation ("FIN") No. 46(R)," which was codified in
December 2009 with the issuance of Accounting Standards Update ("ASU") No. 2009-17, "Consolidations (Topic 810) – Improvements
to Financial Reporting by Enterprises Involved with Variable Interest Entities." ASU No. 2009-17 changes how a reporting entity
determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated.
The determination of
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