Alaska Airlines and Horizon Air 2007 Annual Report Download - page 182

Combined Disclosures for Defined-Benefit Pension Plans
The following table sets forth the status of the plans for 2007 and 2006 (in millions):
Qualified Nonqualified
2007 2006 2007 2006
Projected benefit obligation (PBO)
Beginning of year ............................... $1,051.3 $ 989.1 $ 34.6 $ 37.7
Service cost ................................... 49.7 52.3 1.1 1.1
Interest cost ................................... 60.9 56.1 1.9 2.0
Plan amendments ............................... (1.3) ———
Curtailment gain ................................ —(2.9) ——
Change in assumptions .......................... ———(1.1)
Actuarial (gain) loss ............................. (51.1) 9.2 (1.1) (1.1)
Benefits paid .................................. (52.6) (52.5) (1.6) (4.0)
End of year .................................... $1,056.9 $1,051.3 $ 34.9 $ 34.6
Plan assets at fair value
Beginning of year ............................... $ 835.9 $ 680.9 $— $—
Actual return on plan assets ....................... 74.8 85.6 ——
Employer contributions ........................... 52.5 121.9 1.6 4.0
Benefits paid .................................. (52.6) (52.5) (1.6) (4.0)
End of year .................................... $ 910.6 $ 835.9 $— $—
Funded status (unfunded) ......................... $ (146.3) $ (215.4) $(34.9) $(34.6)
Percent funded ................................. 86.2% 79.5% ——
The accumulated benefit obligation for the
qualified defined-benefit pension plans was
$939.0 million and $964.8 million at
December 31, 2007 and 2006, respectively. The
accumulated benefit obligation for the
nonqualified defined-benefit plan was $34.6
million and $33.4 million at December 31, 2007
and 2006, respectively.
As of December 31, 2007 and 2006, the amounts recognized in the consolidated balance sheets were
as follows (in millions):
2007 2006
Qualified Nonqualified Qualified Nonqualified
Accrued benefit liability-current ......................... $ — $ 2.0 $ — $ 2.0
Accrued benefit liability-long term ....................... 146.3 32.9 215.4 32.6
Total liability recognized .............................. $146.3 $34.9 $215.4 $34.6
AMOUNTS NOT YET REFLECTED IN NET PERIODIC BENEFIT COST AND INCLUDED IN
ACCUMULATED OTHER COMPREHENSIVE INCOME OR LOSS (AOCI):
2007 2006
Qualified Nonqualified Qualified Nonqualified
Prior service cost .................................... $ 21.7 $0.3 $ 28.0 $0.3
Net loss ........................................... 167.5 4.6 240.7 6.0
Amount recognized in AOCI (pretax) ...................... $189.2 $4.9 $268.7 $6.3
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