Frontier Airlines 2010 Annual Report Download - page 123
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expense for the year ended December 31, 2010 was $2.3 million.
Qualified Defined Benefit Plan — Midwest has one qualified defined benefit plan, the Pilots’ Supplemental Pension Plan, as
of December 31, 2010. This plan provides retirement benefits to Midwest pilots covered by their collective bargaining agreement. As
a result of the remeasurement on the acquisition date of July 31, 2009, all previously existing unrecognized net actuarial gains or
losses and unrecognized prior service costs were eliminated for the plan as of July 31, 2009.
The following table sets forth the status of the plan for the year ended December 31, 2010 and for the five months ended December
31, 2009 (in thousands):
Midwest Qualified
Defined-Benefit Plan
Change in Projected Benefit Obligation Year ended
December 31, 2010
Period From
August 1, 2009 to
December 31, 2009
Net benefit obligation — beginning of period $11,411 $ 9,678
Service cost
—
204
Interest cost 727 245
Actuarial gain 2,121 (69 )
Gross benefits paid (244 )(89 )
Curtailments
—
1,442
Net projected obligation — end of period $14,015 $ 11,411
Change in Plan Assets
Fair value of assets — beginning of period $9,044 $ 8,267
Actual return on plan assets 1,280 866
Gross benefits paid (244 )(89 )
Fair value of plan assets — end of period $10,080 $ 9,044
Accrued benefit liability (recorded in deferred credits and other noncurrent liabilities) $(3,935 ) $ (2,367 )
The accumulated benefit obligation as of December 31, 2010 and 2009 is $14.0 million and $9.4 million, respectively. The net
periodic benefit cost of the defined benefit pension plan for the years ended December 31, 2010 and 2009 was $0.2 million and $1.0 million,
respectively. The unamortized net loss, included in accumulated other comprehensive loss, was $1.5 million ($0.9 million net of tax) as of
December 31, 2010. There was no unamortized net gain or loss as of December 31, 2009.
Expected Cash Flows – In 2011, no significant employer contributions are expected for the defined benefit plan. Total future
benefit payments are expected to be approximately $7.2 million over the next several years.
Other Midwest Plans — Midwest provided certain other benefits to its employees. During 2009, curtailment gains of $8.6
million were recognized as a reduction to wages and benefits expense in the consolidated statement of income (loss) due to employee
layoffs, furloughs, and other workforce reductions, and reduced the obligation as of December 31, 2009 to $0.2 million. During 2010,
these plans were terminated and the impact to the Company's financial condition or results of operations was not material.
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