US Airways 2007 Annual Report Download - page 96

Table of Contents
US Airways Group, Inc.
Notes to Consolidated Financial Statements — (Continued)
Interest rates on $2.13 billion principal amount of long-term debt as of December 31, 2007 are subject to adjustment to reflect
changes in floating interest rates. As of December 31, 2007, the weighted average effective interest rate was 7.35% 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 and the amounts
recognized in the Company's consolidated balance sheets as of December 31, 2007 and 2006 (in millions). Defined benefit plans are
measured as of December 31, 2007 and 2006, and postretirement benefit plans are measured as of September 30, 2007 and 2006:
Defined Benefit Pension Plans(1) Other Postretirement Benefits
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
Fair value of plan assets at beginning of period $ 45 $ 37 $ — $ —
Actual return on plan assets 3 5 — —
Employer contributions 1 5 24 31
Plan participants' contributions — — 29 30
Gross benefits paid (3) (2) (53) (61)
Fair value of plan assets at end of period 46 45 — —
Benefit obligation at beginning of period 59 60 220 234
Service cost 2 2 3 3
Interest cost 3 3 12 12
Plan participants' contributions — — 29 30
Actuarial (gain) loss (7) (4) (48) 2
Curtailments(2) (5) — — —
Gross benefits paid (2) (2) (53) (61)
Benefit obligation at end of period 50 59 163 220
Funded status of the plan (4) (14) (163) (220)
Contributions for October to December — — 6 5
Liability recognized in consolidated balance sheet $ (4) $ (14) $ (157) $ (215)
Net actuarial gain recognized in accumulated other comprehensive
income $ 9 $ 2 $ 49 $ 1
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