US Airways 2010 Annual Report Download - page 97

Table of Contents
plans' investment consultants, including their review of asset class return expectations and long-term inflation assumptions.
The Company's overall investment strategy is to achieve long-term investment growth. The Company's targeted asset allocation as of
December 31, 2010 is approximately 65% equity securities and 35% fixed-income securities. Equity securities primarily include mutual
funds invested in large-cap, mid-cap and small-cap U.S. and international companies. Fixed-income securities primarily include mutual
funds invested in U.S. treasuries and corporate bonds. The Company believes that its long-term asset allocation on average will
approximate the targeted allocation. The Company regularly reviews its actual asset allocation and periodically rebalances its investments
to its targeted allocation when considered appropriate.
The fair value of pension plan assets by asset category is as follows (in millions):
Quoted Prices in Significant Other Significant
Active Markets for Observable Unobservable
Identical Assets Inputs Inputs
Fair Value (Level 1) (Level 2) (Level 3)
At December 31, 2010
Mutual funds $ 40 $ 40 $ — $ —
At December 31, 2009
Mutual funds $ 38 $ 38 $ — $ —
As of December 31, 2010, the plan's mutual funds were invested 54% in equity securities of large-cap, mid-cap and small-cap.
U.S. companies, 33% in U.S. treasuries and corporate bonds, 13% in equity securities of international companies. The mutual fund shares
are classified as Level 1 instruments and valued at quoted prices in an active market exchange, which represents the net asset value of
shares held by the pension plan.
As of December 31, 2009, the plan's mutual funds were invested 53% in equity securities of large-cap and mid-cap U.S. companies,
33% in U.S. treasuries and corporate bonds, 11% in equity securities of large-cap international companies and 3% in equity securities of
emerging market companies.
(b) Defined Contribution Plans
The Company sponsors several defined contribution plans which cover a majority of its employee groups. The Company 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 $102 million, $98 million and $96 million for the years ended December 31, 2010, 2009, and 2008, respectively.
(c) Postemployment Benefits
The Company provides certain postemployment benefits to its employees. These benefits include disability-related and workers'
compensation benefits for certain employees. The Company 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. The Company 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.
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