US Airways 2011 Annual Report Download - page 39

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Table of Contents
(b) Includes the following nonoperating special charges (credits):
The 2011 period included a $15 million credit in connection with an award received in an arbitration involving investments in auction rate securities,
offset in part by $6 million in debt prepayment penalties and non-cash write offs of certain debt issuance costs as well as $2 million of losses related to
investments in auction rate securities.
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 in part 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.
The 2008 period included $214 million in other-than-temporary non-cash impairment charges for investments in auction rate securities as well as
$7 million in write offs of debt discount and debt issuance costs in connection with the refinancing of certain aircraft equipment notes and certain loan
prepayments, offset in part by $8 million in gains on forgiveness of debt.
The 2007 period included an $18 million write off of debt issuance costs in connection with the refinancing of the $1.25 billion senior secured credit
facility with General Electric Capital Corporation in March 2007 and $10 million in other-than-temporary non-cash impairment charges for investments
in auction rate securities, offset in part by a $17 million gain recognized on the sale of stock in ARINC Incorporated.
(c) Includes the following income tax special charges (credits):
The 2011 period included a non-cash tax charge of $21 million in connection with the sale of our final investment in auction rate securities in
July 2011. This charge recognizes in the statement of operations the tax provision that was recorded in other comprehensive income, a subset of
stockholders' equity, in the fourth quarter of 2009 as described below.
The 2009 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, we recorded a $14 million tax benefit related to a legislation change allowing us to carry
back 100% of 2008 Alternative Minimum Tax liability ("AMT") net operating losses, resulting in the recovery of AMT amounts paid in prior years. We
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 2007 period included a non-cash charge for income taxes of $7 million related to the utilization of NOLs acquired from US Airways. The valuation
allowance associated with these acquired NOLs was recognized as a reduction of goodwill rather than a reduction in tax expense.
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