US Airways 2010 Annual Report Download - page 36

Table of Contents
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 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.
(b) The 2010 period included $53 million of net realized gains related to the sale of certain investments in auction rate securities as well
as an $11 million settlement gain, offset by $5 million in non-cash charges related to the write off of debt issuance costs.
The 2009 period 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, $10 million in other-than-temporary non-cash impairment charges for investments in
auction rate securities and a $2 million non-cash asset impairment charge. In addition, the period included a tax benefit of
$38 million. Of this amount, $21 million was due to a non-cash income tax benefit related to gains recorded within other
comprehensive income during 2009. In addition, US Airways recorded a $14 million tax benefit related to a legislation change
allowing it to carry back 100% of 2008 AMT net operating losses, resulting in the recovery of AMT amounts paid in prior years.
US Airways also recognized 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.
The 2008 period included $214 million in other-than-temporary non-cash impairment charges for investments in auction rate
securities 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, offset by $8 million in gains on forgiveness of debt.
The 2007 period included a $17 million gain recognized on the sale of stock in ARINC Incorporated, offset by $10 million in
other-than-temporary non-cash impairment charges for investments in auction rate securities. In addition, the period also included a
non-cash expense for income taxes of $7 million related to the utilization of NOLs that were 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.
The 2006 period included a non-cash expense for income taxes of $85 million related to the utilization of NOLs that were 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 previously guaranteed by the ATSB and two loans previously
provided to AWA by GECC, offset by $8 million of interest income earned on certain prior year federal income tax refunds.
(c) The 2006 period included a $1 million benefit, which represents the cumulative effect on the accumulated deficit of the adoption of
new share-based payment accounting guidance. The adjustment reflects the impact of estimating future forfeitures for previously
recognized compensation expense.
(d) Includes debt, capital leases, postretirement benefits other than pensions and employee benefit liabilities and other.
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