US Airways 2009 Annual Report Download - page 135

Table of Contents
7. Employee Pension and Benefit Plans
Substantially all of US Airways' employees meeting certain service and other requirements are eligible to participate in various
pension, medical, dental, life insurance, disability and survivorship plans.
(a) Other Postretirement Benefits Plan
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 US Airways' consolidated balance sheets as of December 31, 2009 and 2008 (in millions).
Year Ended Year Ended
December 31, December 31,
2009 2008
Fair value of plan assets at beginning of period $ — $ —
Actual return on plan assets — —
Employer contributions 19 15
Plan participants' contributions 17 22
Gross benefits paid (36) (37)
Fair value of plan assets at end of period — —
Benefit obligation at beginning of period 121 162
Service cost 2 2
Interest cost 9 9
Plan participants' contributions 17 22
Actuarial (gain) loss 11 (33)
Gross benefits paid (36) (37)
Plan amendments 18 —
Effect of adopting the measurement date provisions of employers' accounting for other postretirement
benefit plans — (4)
Benefit obligation at end of period 142 121
Funded status of the plan (142) (121)
Liability recognized in the consolidated balance sheet $ (142) $ (121)
Net actuarial gain recognized in accumulated other comprehensive income $ 59 $ 78
Defined benefit plans are measured as of December 31, 2009 and 2008. On January 1, 2008, US Airways adopted the measurement
date provisions of SFAS No. 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans" (included in
FASB ASC Topic 960, Plan Accounting – Defined Benefit Pension Plans). The change in US Airways' other postretirement benefit
obligation reflects a $4 million reduction in 2008, which includes $6 million of benefit payments, offset by $2 million of net periodic
benefit costs for the period between the measurement date utilized in 2007, September 30, and the beginning of 2008. The $2 million of
net periodic benefit costs was recorded as an adjustment to accumulated deficit.
In connection with the ratification of new unified agreements that moved all of US Airways' fleet services and maintenance and related
employees to one labor contract, US Airways' postretirement benefit plans were amended effective as of January 1, 2009 to include all
pre-merger AWA fleet service and maintenance and related employees.
The following table presents the weighted average assumptions used to determine benefit obligations:
Year Ended Year Ended
December 31, December 31,
2009 2008
Discount rate 5.51% 5.98%
US Airways 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.
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