US Airways 2009 Annual Report Download - page 99

Table of Contents
The Company performed the annual impairment test on its international route authorities during the fourth quarter of 2009. The fair
values of international route authorities were assessed using the market approach. The market approach took into consideration relevant
supply and demand factors at the related airport locations as well as available market sale and lease data. As a result of the Company's
annual impairment test on its international route authorities, the Company recorded a $16 million impairment charge related to the
decline in fair value of certain international routes.
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
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, 2009 and 2008 (in millions).
Defined Benefit Pension Plans Other Postretirement Benefits
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
Fair value of plan assets at beginning of period $ 33 $ 46 $ — $ —
Actual return on plan assets 7 (13) — —
Employer contributions — 2 19 15
Plan participants' contributions — — 17 23
Gross benefits paid (2) (2) (36) (38)
Fair value of plan assets at end of period 38 33 — —
Benefit obligation at beginning of period 59 50 122 163
Service cost 1 1 2 2
Interest cost 3 3 9 9
Plan participants' contributions — — 17 23
Actuarial (gain) loss (4) 8 11 (33)
Gross benefits paid (2) (3) (36) (38)
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 57 59 143 122
Funded status of the plan $ (19) $ (26) $ (143) $ (122)
Liability recognized in the consolidated balance sheet $ (19) $ (26) $ (143) $ (122)
Net actuarial loss (gain) recognized in accumulated other comprehensive
income $ 5 $ 15 $ (60) $ (80)
Defined benefit plans are measured as of December 31, 2009 and 2008. On January 1, 2008, the Company 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 the Company's 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.
The Company maintains two defined benefit pension plans sponsored by Piedmont. Piedmont closed one plan to new participants in
2002 and froze the accrued benefits for the other plan for all participants in 2003. The aggregate accumulated benefit obligations,
projected benefit obligations and plan assets were $52 million, $57 million and
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