US Airways 2008 Annual Report Download - page 156

Table of Contents
US Airways, Inc.
Notes to Consolidated Financial Statements — (Continued)
In 2009, US Airways expects to contribute $14 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
2009 $ 14 $ —
2010 12 —
2011 12 —
2012 11 —
2013 12 —
2014 to 2018 60 2
(b) Defined Contribution Plans
US Airways sponsors several defined contribution plans which cover a majority of its employee groups. US Airways makes
contributions to these plans based on the individual plan provisions, including an employer non-discretionary contribution and an
employer match. These contributions are generally made based upon eligibility, eligible earnings and employee group. Expenses related
to these plans were $92 million, $78 million and $89 million for the years ended December 31, 2008, 2007, and 2006, respectively.
(c) Postemployment Benefits
US Airways provides certain postemployment benefits to its employees. These benefits include disability-related and workers'
compensation benefits for certain employees. US Airways accrues for the cost of such benefit expenses once an appropriate triggering
event has occurred. In 2007, US Airways recorded a $99 million charge to increase long-term disability obligations for US Airways'
pilots as a result of a change in the FAA mandated retirement age for pilots from 60 to 65.
(d) Profit Sharing Plans
Most non-executive employees of US Airways are eligible to participate in the 2005 Profit Sharing Plan, an annual bonus program.
Annual bonus awards are paid from a profit-sharing pool equal to (i) ten percent of the annual profits of US Airways Group (excluding
unusual items) for pre-tax profit margins up to ten percent, plus (ii) 15% of the annual profits of US Airways Group (excluding unusual
items) for pre-tax profit margins greater than ten percent. Awards are paid as a lump sum no later than March 15 after the end of each
fiscal year. US Airways recorded no amounts in 2008 for profit sharing as US Airways had a net loss in 2008 excluding unusual items
and recorded $49 million and $59 million for profit sharing in 2007 and 2006, respectively, which is recorded in salaries and related
costs.
8. Commitments and contingencies
(a) Commitments to Purchase Flight Equipment and Maintenance Services
Aircraft and Engine Purchase Commitments
During 2008, US Airways took delivery of 14 Embraer 190 aircraft under its Amended and Restated Purchase Agreement with
Embraer, which it financed through an existing facility agreement. As of December 31, 2008, US Airways has no remaining firm orders
with Embraer. Under the terms of the Amended and Restated Purchase Agreement, US Airways has 32 additional Embraer 190 aircraft
on order, which are conditional and subject to its
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