US Airways 2006 Annual Report Download - page 200

Table of Contents
US Airways, Inc.
Notes to the Financial Statements — (Continued)
Components of the net and total periodic cost for other postretirement benefits (in millions):
Successor Company Predecessor Company
Year Three Months Nine Months
Ended Ended Ended Year Ended
December 31, December 31, September 30, December 31,
2006 2005 2005 2004
Service cost $ 3 $ 1 $ 8 $ 39
Interest cost 12 3 22 88
Amortization of:
Prior service cost — — (76) (13)
Actuarial (gain)/loss — — (11) (9)
Net periodic cost 15 4 (57) 105
Curtailment/settlement gains — — (183) —
Fresh-start (gain) loss — — (1,247) —
Total periodic cost $ 15 $ 4 $ (1,487) $ 105
The change in the additional minimum pension liability included in other comprehensive income (loss) was $120 million and
$(34) million for the nine months ended September 30, 2005 and the year ended December 31, 2004, respectively. See Note 9 for a
reconciliation of the components of other comprehensive income.
US Airways expects to contribute $29 million to its other postretirement plans in 2007. The following benefits, which reflect
expected future service, as appropriate, are expected to be paid (in millions):
Other Postretirement
Benefits before
Medicare Subsidy Medicare Subsidy
2007 $ 29 $ —
2008 27 —
2009 23 —
2010 21 —
2011 18 —
2012 to 2016 61 2
(b) Defined Contribution Plans
US Airways sponsors several defined contribution plans for certain employees. US Airways makes cash contributions to certain
plans based on the employee's age, compensation and elected contributions. US Airways also participates in a multi-employer plan for
certain employees. Company contributions as a percentage of compensation were generally reduced in late 2004 in connection with
US Airways' restructured labor agreements and non-union wage and benefits reductions. Expenses related to these plans, excluding
expenses related to the US Airways pilot defined contribution plans, were approximately $22 million, $5 million, $24 million,
$49 million for the year ended December 31, 2006, the three months ended December 31, 2005, the nine months ended September 30,
2005, and the year ended December 31, 2004, respectively.
In connection with first reorganization under Chapter 11 of the Bankruptcy Code, US Airways terminated the Retirement Income
Plan for Pilots of US Airways, Inc. and the related nonqualified pilot plan effective March 31, 2003. US Airways implemented a qualified
and nonqualified defined contribution plan for pilots effective April 1, 2003. The defined contribution amount was individually
determined based on a target normal retirement date balance of approximately $1 million for a career US Airways pilot. The target
balance included the estimated value of other retirement benefits including, but not limited to, the estimated benefit pilots are expected to
receive from the PBGC, the trustee for the terminated pilot defined benefit plan. Effective October 15, 2004, each pilot's
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