United Airlines 2007 Annual Report Download - page 122

UAL Corporation and Subsidiary Companies
Combined Notes to Consolidated Financial Statements (Continued)
(9) Retirement and Postretirement Plans (Continued)
The Company believes that the long-term asset allocations on average will approximate the targeted allocations and regularly reviews the actual asset
allocations to periodically rebalance the investments to the targeted allocations when appropriate. The target asset allocations are established with the objective of
achieving the plans' expected return on assets without undue investment risk.
Expected 2008 contributions are $29 million for the pension plans and $170 million for the other postretirement benefit plans. The following benefit
payments are expected to be made in future years for the Company's retirement plans:
(In millions) Pension Other Benefits
Other Benefits—
subsidy receipts
2008 $ 12 $ 171 $ (12)
2009 12 172 (14)
2010 12 173 (16)
2011 13 174 (18)
2012 14 171 (20)
Years 2013 - 2017 70 853 (127)
Defined Contribution Plans
In place of the domestic defined benefit pension plans that were terminated during bankruptcy, the Company enhanced its contributions to the defined
contribution plans for most employee groups. Contributions are based on matching percentages, years of service and/or eligible earnings. The Company's
contribution percentages vary from 1 to 15% of eligible earnings depending on the terms of each plan. The Company agreed to contribute to most of its defined
contribution plans effective in June and July 2005, although such contributions for 2005 were not funded until shortly after the Effective Date.
Effective March 1, 2006, an International Association of Machinists ("IAM") replacement plan was implemented. The IAM replacement plan is a
multi-employer plan whereby the assets contributed by the Company (based on hours worked) may be used to provide benefits to employees of other
participating companies, since assets contributed by all participating companies are not segregated or restricted to provide benefits specifically to employees of
one participating company. In accordance with the applicable accounting for multi-employer plans, the Company would only recognize a withdrawal obligation
if it becomes probable it would withdraw from the plan. The Predecessor Company recorded expense from defined contribution plans of $16 million for the
month of January 2006 and $122 million for the year ended December 31, 2005. The Successor Company recognized $232 million and $206 million of expense
for the year ended December 31, 2007 and the eleven months ended December 31, 2006, respectively, for all of the Company's defined contribution employee
retirement plans, of which $28 million and $21 million, respectively, related to the IAM multi-employer plan.
(10) Segment Information
Segments. The Company manages its business by two reporting segments: Mainline and United Express. The Company manages its business as an
integrated network with assets deployed across various regions.
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Source: UNITED AIR LINES INC, 10-K, February 29, 2008