US Airways 2009 Annual Report Download - page 136

Table of Contents
As of December 31, 2009, the assumed health care cost trend rates are 8% in 2010 and 7.5% in 2011, decreasing to 5.5% in 2015 and
thereafter. As of December 31, 2008, the assumed health care cost trend rates are 9% in 2009 and 8% in 2010, decreasing to 5.5% in 2015
and thereafter. The assumed health care cost trend rates could have a significant effect on amounts reported for retiree health care plans.
A one-percentage point change in the health care cost trend rates would have the following effects on other postretirement benefits as of
December 31, 2009 (in millions):
1% Increase 1% Decrease
Effect on total service and interest costs $ 1 $ (1)
Effect on postretirement benefit obligation 9 (8)
Weighted average assumptions used to determine net periodic benefit cost were as follows:
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2009 2008 2007
Discount rate 5.98% 5.94% 5.67%
Components of the net and total periodic cost for other postretirement benefits are as follows (in millions):
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2009 2008 2007
Service cost $ 2 $ 2 $ 3
Interest cost 9 9 12
Amortization of actuarial gain (1) (6) (2) —
Total periodic cost $ 5 $ 9 $ 15
(1) The estimated actuarial gain for other postretirement benefit plans that will be amortized from accumulated other comprehensive
income into net periodic benefit cost in 2010 is $4 million.
In 2010, US Airways expects to contribute $13 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
2010 $ 13 $ —
2011 13 —
2012 12 —
2013 12 —
2014 13 —
2015 to 2019 66 (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 $94 million, $92 million and $78 million for the years ended December 31, 2009, 2008, and 2007, 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
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