US Airways 2010 Annual Report Download - page 130
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Table of Contents
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,
2010 2009 2008
Service cost $ 3 $ 2 $ 2
Interest cost 8 9 9
Amortization of actuarial gain (1) (4) (6) (2)
Total periodic cost $ 7 $ 5 $ 9
(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 2011 is $3 million.
In 2011, US Airways expects to contribute $16 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
2011 $ 16 $ —
2012 13 —
2013 13 —
2014 12 —
2015 12 —
2016 to 2020 65 (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 $98 million, $94 million and $92 million for the years ended December 31, 2010, 2009, and 2008, 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.
(d) Profit Sharing Plans
Most non-executive employees of US Airways are eligible to participate in a profit sharing plan. Awards are paid as a lump sum after
the end of each fiscal year. US Airways recorded $47 million for profit sharing in 2010, which is recorded in salaries and related costs on
the consolidated statement of operations and included in accrued compensation and vacation on the consolidated balance sheet. In 2009
and 2008, no amounts were recorded for profit sharing.
8. Commitments and Contingencies
(a) Commitments to Purchase Flight Equipment and Maintenance Services
Aircraft and Engine Purchase Commitments
US Airways has definitive purchase agreements with Airbus for the acquisition of 134 aircraft, including 97 single-aisle A320 family
aircraft and 37 widebody aircraft (comprised of 22 A350 XWB aircraft and 15 A330-200 aircraft). Since 2008, when deliveries
commenced under the purchase agreements, we have taken
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