US Airways 2011 Annual Report Download - page 87
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Table of Contents
(p) Stock-based Compensation
The Company accounts for its stock-based compensation expense based on the fair value of the stock award at the time of grant, which is recognized
ratably over the vesting period of the stock award. The fair value of stock options and stock appreciation rights is estimated using a Black-Scholes option
pricing model. The fair value of restricted stock units is based on the market price of the underlying shares of common stock on the date of grant. See Note 14
for further discussion of stock-based compensation.
(q) Foreign Currency Gains and Losses
Foreign currency gains and losses are recorded as part of other nonoperating expense, net in the Company's consolidated statements of operations.
Foreign currency losses for the years ended December 31, 2011, 2010 and 2009 were $17 million, $17 million and $3 million, respectively.
(r) Other Operating Expenses
Other operating expenses includes expenses associated with ground and cargo handling, crew travel, aircraft food and catering, US Airways' frequent
flier program, passenger reaccommodation, airport security, international navigation fees and certain general and administrative expenses.
(s) 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,
2011 2010 2009
Aircraft fuel and related taxes $ 1,056 $ 769 $ 609
Salaries and related costs 274 257 246
Capacity purchases (a) 1,029 1,065 1,059
Aircraft rent 51 51 51
Aircraft maintenance 188 89 81
Other rent and landing fees 139 129 121
Selling expenses 175 173 154
Special items, net 2 (1) 3
Depreciation and amortization 25 25 25
Other expenses 188 172 170
Express expenses $ 3,127 $ 2,729 $ 2,519
(a) For the years ended December 31, 2011, 2010 and 2009, the component of capacity purchase expenses related to aircraft deemed to be leased was
approximately $300 million, $320 million and $330 million, respectively.
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