US Airways 2006 Annual Report Download - page 109

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
Secured financings are collateralized by assets, primarily aircraft, engines, simulators, rotable aircraft parts and hangar and
maintenance facilities. At December 31, 2006, the estimated maturities of long-term debt and capital leases are as follows (in millions):
2007 $ 95
2008 209
2009 226
2010 200
2011 1,355
Thereafter 1,050
$ 3,135
Certain of US Airways Group's long-term debt agreements contain minimum cash balance requirements and other covenants with
which the Company was in compliance at December 31, 2006. Certain of US Airways Group's 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 $1.94 billion principal amount of long-term debt as of December 31, 2006 are subject to adjustment to reflect
changes in floating interest rates. As of December 31, 2006, the weighted average effective interest rate was 8.95% for the variable
interest rate debt.
8. Employee pension and benefit plans
Substantially all of the Company's 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
Prior to the merger, America West Holdings had no obligations for defined benefit or other postretirement benefit plans. The
following table sets forth changes in the fair value of plan assets, benefit obligations and the funded status of the plans acquired by the
Company on September 27, 2005 as of December 31, 2006 and 2005 (in millions). As discussed in Note 1(s), effective December 31,
2006, the Company adopted the recognition provisions of SFAS 158. In accordance with SFAS 158, the Company recognized a liability
for the underfunded status of its postretirement benefit plans of $215 million, of which $187 million is noncurrent, and the underfunded
status of its pension plans of $14 million, of which $13 million is noncurrent. The Company has also recognized an increase of $3 million
in accumulated other comprehensive income at December 31, 2006 associated with the net actuarial gain on its pension and other
postretirement plans. Future changes to the funded status of these plans will be recognized in the year which the change occurs through
other comprehensive income. Prior to the adoption of the recognition provisions of SFAS 158, the Company accounted for its defined
benefit pension and post-retirement benefit plans
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