Alaska Airlines and Horizon Air 2009 Annual Report Download - page 175

Combined Disclosures for Defined-Benefit Pension Plans
The following table sets forth the status of the plans for 2009 and 2008 (in millions):
Qualified Nonqualified
2009 2008 2009 2008
Projected benefit obligation (PBO)
Beginning of year .............................. $1,094.9 $1,056.9 $ 36.0 $ 34.9
Service cost .................................. 44.2 46.6 0.7 0.9
Interest cost .................................. 66.9 62.7 2.2 2.1
Plan amendments ............................. (29.6) (0.5) ——
Curtailment (gain) loss .......................... —(2.9) ——
Actuarial (gain) loss ............................ 47.3 (31.1) 0.6 (0.1)
Transfer to pilot long-term disability plan ............ (3.0) ———
Benefits paid ................................. (40.9) (36.8) (2.2) (1.8)
End of year ................................... $1,179.8 $1,094.9 $ 37.3 $ 36.0
Plan assets at fair value
Beginning of year .............................. $ 650.0 $ 910.6 $— $—
Actual return on plan assets ..................... 150.0 (275.5) ——
Employer contributions .......................... 147.8 51.7 2.2 1.8
Benefits paid ................................. (40.9) (36.8) (2.2) (1.8)
End of year ................................... $ 906.9 $ 650.0 $— $—
Funded status (unfunded) ....................... $ (272.9) $ (444.9) $(37.3) $(36.0)
Percent funded ................................ 76.9% 59.4% ——
Of the total $1.2 billion PBO for the qualified
plans, approximately 57% represents the
obligation of the plan covering Alaska’s pilots.
The accumulated benefit obligation for the
combined qualified defined-benefit pension plans
was $1,102.5 million and $1,017.9 million at
December 31, 2009 and 2008, respectively. The
accumulated benefit obligation for the
nonqualified defined-benefit plan was $36.9
million and $35.8 million at December 31, 2009
and 2008, respectively.
The plan amendment and the transfer to the pilot
long-term disability plan in 2009 were the result
of plan changes in the new pilot collective
bargaining agreement ratified during the year.
See further discussion under “Pilot Long-term
Disability Benefits” below.
As of December 31, 2009 and 2008, the amounts recognized in the consolidated balance sheets were
as follows (in millions):
2009 2008
Qualified Nonqualified Qualified Nonqualified
Accrued benefit liability-current ...................... $ — $ 2.5 $ — $ 2.5
Accrued benefit liability-long term .................... 272.9 34.8 444.9 33.5
Total liability recognized ........................... $272.9 $37.3 $444.9 $36.0
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ŠForm 10-K