US Airways 2007 Annual Report Download - page 160

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
Components of the net and total periodic cost for other postretirement benefits (in millions):
Successor Company Predecessor Company
Year Ended Year Ended Three Months Ended Nine Months Ended
December 31, December 31, December 31, September 30,
2007 2006 2005 2005
Service cost $ 3 $ 3 $ 1 $ 8
Interest cost 12 12 3 22
Amortization of:
Prior service costs — — — (76)
Actuarial gain — — — (11)
Net periodic costs (benefits) 15 15 4 (57)
Curtailment/settlement gains — — — (183)
Fresh-start gain — — — (1,247)
Total periodic costs (benefits) $ 15 $ 15 $ 4 $ (1,487)
In 2008, US Airways expects to contribute $19 million to its other postretirement plans. The following benefits, which reflect
expected future service, as appropriate, are expected to be paid from the other postretirement plans (in millions):
Other
Postretirement
Benefits before
Medicare Subsidy Medicare Subsidy
2008 $ 19 $ —
2009 18 —
2010 16 —
2011 15 —
2012 14 —
2013 to 2017 58 3
(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, a match that is annually determined by the Board of Directors, and elected
contributions. US Airways also participates in a multi-employer plan for certain employees. Expenses related to these plans, excluding
expenses related to US Airways' pilot defined contribution plans (see below), were approximately $28 million, $28 million, $7 million
and $24 million for the years ended December 31, 2007, 2006, three months ended December 31, 2005 and nine months ended
September 30, 2005, respectively.
In connection with its first reorganization under Chapter 11 of the Bankruptcy Code, US Airways terminated the Retirement Income
Plan for Pilots 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 contribution rate
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