US Airways 2005 Annual Report Download - page 141

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
Components of the net and total periodic cost for other postretirement benefits (in millions):
Year Ended
Dec. 31, 2005
Service cost $ 1
Interest cost 3
Total periodic cost $ 4
In 2006, the Company expects to contribute $3 million and $27 million to its defined benefit pension plans and other postretirement plans, respectively.
The following benefits, which reflect expected future service, as appropriate, are expected to be paid from the other postretirement plans (in millions):
Other
Postretirement
Defined Benefit Benefits before
Pension Plans Medicare Subsidy Medicare Subsidy
2006 $ 2 $ 27 $ —
2007 2 25 —
2008 3 24 —
2009 3 22 1
2010 3 21 1
2011 to 2015 27 80 2
The Company assumed that its pension plans' assets would generate a long-term rate of return of 8.00% at December 31, 2005. The expected long-term
rate of return assumption was developed by evaluating input from the plan's investment consultants, including their review of asset class return expectations
and long-term inflation assumptions.
The weighted average asset allocations of December 31, 2005 by asset category are as follows:
Equity securities 68%
Debt securities 27
Real estate —
Other 5
Total 100%
The Company's targeted asset allocation as of December 31, 2005 is approximately 70% equity securities, 25% debt securities and 5% other. The
Company believes that its long-term asset allocation on average will approximate the targeted allocation. The Company regularly reviews its actual asset
allocation and periodically rebalances its investments to its targeted allocation when considered appropriate.
(b) Defined contribution pension plans
The Company sponsors several defined contribution pension plans for certain employees. The Company makes cash contributions to certain plans based
on the employee's age, compensation, a match that is annually determined by the Board of Directors, and elected contributions. The Company also
participates in a multi-employer plan for certain employees. Expenses related to these plans, excluding expenses related to the Company's pilot defined
contribution plans (see below), were approximately $16 million for the year ended December 31, 2005, $11 million for the year ended December 31, 2004
and $9 million for the year ended December 2003. 135