US Airways 2010 Annual Report Download - page 96
Download and view the complete annual report
Please find page 96 of the 2010 US Airways annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86 -
87 -
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
 |
 |
Table of Contents
As of December 31, 2010, the assumed health care cost trend rates are 9% in 2011 and 8.5% in 2012, decreasing to 5.0% in 2019 and
thereafter. 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. 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, 2010 (in millions):
1% Increase 1% Decrease
Effect on total service and interest costs $ 1 $ (1)
Effect on postretirement benefit obligation 14 (11)
Weighted average assumptions used to determine net periodic benefit cost were as follows:
Defined Benefit Pension Plans Other Postretirement Benefits
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
2010 2009 2008 2010 2009 2008
Discount rate 5.5% 5.5% 6% 5.51% 5.98% 5.94%
Expected return on plan assets 7.5% 8% 8% — — —
Rate of compensation increase 4% 4% 4% — — —
Components of the net and total periodic cost for pension and other postretirement benefits are as follows (in millions):
Defined Benefit Pension Plans Other Postretirement Benefits
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
2010 2009 2008 2010 2009 2008
Service cost $ 1 $ 1 $ 1 $ 3 $ 2 $ 2
Interest cost 3 3 3 8 9 9
Expected return on plan assets (3) (3) (4) — — —
Amortization of actuarial loss (gain) (1) — 1 — (4) (6) (2)
Total periodic costs $ 1 $ 2 $ — $ 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, the Company expects to contribute $16 million to its other postretirement plans. No contributions are expected in 2011 for the
Company's defined benefit plans. The following benefits, which reflect expected future service, as appropriate, are expected to be paid
from the defined benefit and other postretirement plans (in millions):
Other
Postretirement
Defined Benefit Benefits before
Pension Plans Medicare Subsidy Medicare Subsidy
2011 $ 2 $ 16 $ —
2012 2 13 —
2013 2 13 —
2014 2 12 —
2015 2 12 —
2016 to 2020 16 65 (2)
The Company assumed that its pension plans' assets would generate a long-term rate of return of 7.5% at December 31, 2010. The
expected long-term rate of return assumption was developed by evaluating input from the
95