US Airways 2006 Annual Report Download - page 110

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
under SFAS No. 87, "Employers Accounting for Pensions" and SFAS No. 106, "Employers' Accounting for Postretirement Benefits
Other Than Pensions."
Defined Benefit Pension Plans(1) Other Postretirement Benefits
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
2006 2005 2006 2005
Fair value of plan assets at beginning of period $ 37 $ 37 $ — $ —
Actual return on plan assets 5 1 — —
Employer contributions 5 — 31 —
Plan participants' contributions — — 30 —
Gross benefits paid (2) (1) (61) —
Fair value of plan assets at end of period 45 37 — —
Benefit obligation at beginning of period 60 64 234 233
Service cost 2 — 3 1
Interest cost 3 1 12 3
Plan participants' contributions — — 30 —
Actuarial (gain) loss (4) (4) 2 (3)
Gross benefits paid (2) (1) (61) —
Benefit obligation at end of period 59 60 220 234
Funded status of the plan (14) (23) (220) (234)
Unrecognized actuarial (gain)/loss — (4) — (3)
Contributions for October to December — — 5 9
Net liability recognized $ (14) $ (27) $ (215) $ (228)
(1) For plans with accumulated benefit obligations in excess of plan assets, the aggregate accumulated benefit obligations, projected
benefit obligations and plan assets were $57 million, $59 million and $45 million, as of December 31, 2006 and $56 million,
$60 million and $37 million, as of December 31, 2005, respectively.
The following table presents the weighted average assumptions used to determine benefit obligations:
Defined Benefit Pension Plans Other Postretirement Benefits
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
2006 2005 2006 2005
Discount rate 5.75% 5.75% 5.67% 5.3%
Rate of compensation increase 4% 4% — —
As of December 31, 2006 and 2005, the Company discounted its pension obligations based on the current rates earned on high
quality Aa rated long-term bonds.
The Company assumed discount rates for measuring its other postretirement benefit obligations, based on a hypothetical portfolio of
high quality publicly traded U.S. bonds (Aa rated, non-callable or callable with make-whole provisions), for which the timing and cash
outflows approximate the estimated benefit payments of the other postretirement benefit plans.
As of September 30, 2006, the assumed health care cost trend rates are 10% in 2007 and 9% in 2008, decreasing to 5.5% in 2012
and thereafter. As of September 30, 2005, the assumed health care cost trend rates were
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