US Airways 2011 Annual Report Download - page 132

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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,
2011 2010 2009
Service cost $ 3 $ 3 $ 2
Interest cost 8 8 9
Amortization of actuarial gain (1) (3) (4) (6)
Total periodic cost $ 8 $ 7 $ 5
(1) The estimated net actuarial gain for other postretirement benefit plans that will be amortized from accumulated other comprehensive income into net
periodic benefit cost in 2012 is $1 million.
In 2012, 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
2012 $ 13 $ —
2013 13 —
2014 12 —
2015 12 —
2016 12 —
2017 to 2021 66 (2)
(b) Defined Contribution and Multiemployer 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 $76 million, $77 million and $72 million for the years
ended December 31, 2011, 2010 and 2009, respectively.
Pursuant to US Airways' collective bargaining agreements with the International Association of Machinists & Aerospace Workers ("IAM"), US
Airways makes contributions for eligible employees to the IAM National Pension Fund, Employer Identification No. 51-6031295 and Plan No. 002 (the "IAM
Pension Fund"). The IAM Pension Fund reported that its Pension Protection Act of 2006 certification filed in March 2011 with the IRS shows that it qualified
for Green Zone Status, as it was at least 80% funded. Expenses related to contributions to this plan were $24 million, $21 million and $22 million for the years
ended December 31, 2011, 2010 and 2009, respectively. US Airways' contributions for the year ended December 31, 2010, the most recent period for which
annual IAM Pension Fund information was available, represented approximately 6% of total employer plan contributions. US Airways' collective bargaining
agreements with the IAM became amendable on December 31, 2011.
(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 $12 million and $47 million for profit sharing in 2011 and 2010, respectively, 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, no amounts were
recorded for profit sharing.
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