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Table of Contents
frequent traveler program. The Company is required to adopt and apply ASU No. 2009-13 to any new or materially modified multiple-
deliverable revenue arrangements entered into on or after January 1, 2011. It is not practical to estimate the impact of the new guidance
on the Company's consolidated financial statements because the Company will apply the guidance prospectively to agreements entered
into or materially modified subsequent to January 1, 2011.
2. Special Items, Net
Special items, net as shown on the consolidated statements of operations include the following charges (credits) (in millions):
Year Ended December 31,
2010 2009 2008
Aviation Security Infrastructure Fee ("ASIF") refund (a) $ (16) $ — $ —
Other costs(b) 10 6 —
Asset impairment charges (c) 6 16 18
Aircraft costs (d) 5 22 14
Severance and other charges (e) — 11 9
Merger-related transition expenses (f) — — 35
Total $ 5 $ 55 $ 76
(a) In 2010, the Company recorded a $16 million refund of ASIF previously paid to the TSA during the years 2005 to 2009.
(b) In 2010, the Company recorded other net special charges of $10 million, which included a settlement and corporate transaction
costs. In 2009, the Company incurred $6 million in costs related to the 2009 liquidity improvement program, which primarily
consisted of professional and legal fees.
(c) In 2010, the Company recorded a $6 million non-cash charge related to the decline in market value of certain spare parts. In 2009,
the Company recorded $16 million in non-cash impairment charges due to the decline in fair value of certain indefinite lived
intangible assets associated with international routes. In 2008, the Company recorded $18 million in non-cash charges related to the
decline in fair value of certain spare parts associated with its Boeing 737 aircraft fleet. See Notes 1(f), 1(g) and 1(i) for further
discussion of each of these charges.
(d) In 2010, 2009 and 2008, the Company recorded $5 million, $22 million and $14 million, respectively, in aircraft costs as a result of
previously announced capacity reductions.
(e) In 2009 and 2008, the Company recorded $11 million and $9 million, respectively, in severance and other charges.
(f) In 2008, in connection with the effort to consolidate functions and integrate the Company's organizations, procedures and
operations, the Company incurred $35 million of merger-related transition expenses. These expenses included $12 million in
uniform costs to transition employees to the new US Airways uniforms; $5 million in applicable employment tax expenses related
to contractual benefits granted to certain current and former employees as a result of the merger; $6 million in compensation
expenses for equity awards granted in connection with the merger to retain key employees through the integration period; $5 million
of aircraft livery costs; $4 million in professional and technical fees related to the integration of airline operations systems and
$3 million in other expenses.
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