US Airways 2005 Annual Report Download - page 245

Table of Contents
US Airways, Inc.
Notes to the Financial Statements — (Continued)
Secured financings are collateralized by assets, primarily aircraft, engines, simulators, rotable aircraft parts and hangar and maintenance facilities. At
December 31, 2005, the estimated maturities of long-term debt are as follows (in millions):
2006 $ 117
2007 152
2008 252
2009 297
2010 299
Thereafter 994
$ 2,111
Certain of US Airways' long-term debt agreements contain minimum cash balance requirements and other covenants with which US Airways is in
compliance. Certain of US Airways' long-term debt agreements contain cross-default provisions, which may be triggered by defaults by AWA or US Airways
Group under other agreements relating to indebtedness.
Interest rates on $1.1 billion and $1.63 billion principal amount of long-term debt as of December 31, 2005 and 2004, respectively, are subject to
adjustment to reflect changes in floating interest rates. As of December 31, 2005, the weighted average effective interest rate was 8.5% for the equipment
financing agreements.
7. Employee pension and benefit plans
Substantially all of US Airways' employees meeting certain service and other requirements are eligible to participate in various pension, medical, dental,
life insurance, disability and survivorship plans.
(a) Defined benefit and other postretirement benefit plans
On November 12, 2004, US Airways filed a motion requesting a determination from the Bankruptcy Court that US Airways satisfied the financial
requirements for a "distress termination" under section 4041(c)(2)(B)(ii)(IV) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), of the Retirement Plan for Flight Attendants in the Service of US Airways, Inc. (the "AFA Plan"), the Pension Plan for Employees of
US Airways, Inc. Who Are Represented by the International Association of Machinists and Aerospace Workers (the "IAM Plan") and the Retirement Plan for
Certain Employees of US Airways, Inc. (the "CE Plan"), and approval of each such plan's termination. These plans had aggregate benefit obligations of
$2.71 billion and aggregate plan assets of $1.76 billion, as of the plans' termination dates in January 2005. On January 6, 2005, the Bankruptcy Court entered
an order (i) finding that the financial requirements for a distress termination of the plans had been met and (ii) approving termination of the plans. The AFA
Plan and the IAM Plan were terminated effective January 10, 2005, which was the date agreed to by the PBGC and US Airways. The CE Plan was terminated
effective January 17, 2005, which was the date agreed to by the PBGC and US Airways. Effective February 1, 2005, the PBGC was appointed trustee for each
of the three plans.
Upon termination of the plans, US Airways recognized a curtailment gain of $24 million and a $91 million charge related to the minimum pension
liability, which was previously recorded in other comprehensive income. These amounts are included in reorganization items, net in the statements of
operations. Upon emergence from bankruptcy on September 27, 2005, the Bankruptcy Court approved a settlement agreement between US Airways and the
PBGC which required the PBGC to release all claims against US Airways in return for US Airways issuing (i) a $13.5 million cash payment, paid in October
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