Investments and Fair Value Measurements

12 Months Ended

Dec. 31, 2013

8. Investments and Fair Value Measurements

Short-term investments consisted of (in millions):


	Successor		Predecessor
	December 31, 2013		December 31, 2012
Money market funds	$	2,746	$	627
U.S. government treasury bills		201		1,595

	$	2,947	$	2,222

As of December 31, 2013, all of the Company’s short-term investments had a contractual maturity date of less than a year, are classified as held to maturity and recorded at cost, which approximates fair value.

The Company utilizes the market approach using prices and other relevant information generated by market transactions involving identical or comparable assets to measure fair value for its short-term investments and restricted cash.

Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions):


	Successor
	Fair Value Measurements as of December 31, 2013
	Total		Level 1		Level 2		Level 3
Short-term investments:
Money market funds	$	2,746	$	2,746	$	—	$	—
U.S. government treasury bills		201		201		—		—

		2,947		2,947		—		—
Restricted cash		333		333		—		—
Convertible debt conversion option liability		101		—		101		—

	$	3,381	$	3,280	$	101	$	—

US Airways, Inc. [Member]

Investments and Fair Value Measurements

7. Investments and Fair Value Measurements

Short-term investments consisted of (in millions):


	Successor		Predecessor
	December 31, 2013		December 31, 2012
Money market funds	$	2,746	$	627
U.S. government treasury bills		201		1,595

	$	2,947	$	2,222

As of December 31, 2013, all of US Airways’ short-term investments had a contractual maturity date of less than a year, are classified as held to maturity and recorded at cost, which approximates fair value.

US Airways utilizes the market approach using prices and other relevant information generated by market transactions involving identical or comparable assets to measure fair value for its short-term investments and restricted cash.

Assets measured at fair value on a recurring basis are summarized below (in millions):


	Successor
	Fair Value Measurements as of December 31, 2013
	Total		Level 1		Level 2		Level 3
Short-term investments:
Money market funds	$	2,746	$	2,746	$	—	$	—
U.S. government treasury bills		201		201		—		—

		2,947		2,947		—		—
Restricted cash		333		333		—		—

	$	3,280	$	3,280	$	—	$	—

US AIRWAYS GROUP INC 10-K