United Airlines 2010 Annual Report Download - page 123

The following table sets forth the reconciliation of the beginning and ending balances of the benefit
obligation and plan assets, the funded status and the amounts recognized in these financial statements for the
defined benefit and other postretirement plans:
Pension Benefits
Year Ended
December 31, 2010
Year Ended
December 31, 2009
(In millions) UAL United Continental (a)
UAL &
United
Continental
Predecessor
Accumulated benefit obligation: .................... $2,999 $214 $ 2,785 $228 $ 2,401
Change in projected benefit obligation:
Projected benefit obligation at beginning of year ....... $ 228 $228 $ 2,629 $221 $ 2,482
Merger impact (b) ................................ 3,169 — 439 — —
Service cost .................................... 27 6 71 6 65
Interest cost .................................... 51 9 161 9 153
Plan participants’ contributions ..................... 1 1 — 1 —
Actuarial (gain) loss (b) ........................... (130) 17 (147) 3 70
Curtailments .................................... (7) — (7) (1) —
Foreign currency exchange rate changes .............. 11 11 — 8 —
Lump sum settlement ............................. (9) (9) (9) — (92)
Special termination benefits ........................ 4 — 4 — —
Gross benefits paid ............................... (23) (7) (75) (19) (49)
Projected benefit obligation at end of year ............. $3,322 $256 $ 3,066 $228 $ 2,629
Change in plan assets:
Fair value of plan assets at beginning of year .......... $ 156 $156 $ 1,371 $124 $ 1,057
Merger impact (b) ................................ 1,549 — 83 — —
Actual return on plan assets (b) ..................... 131 16 115 26 268
Employer contributions ........................... 58 18 202 18 187
Plan participants’ contributions ..................... 1 1 — 1 —
Foreign currency exchange rate changes .............. 4 4 — 7 —
Transfer adjustment .............................. 4 4 — (1) —
Lump sum settlement ............................. (9) (9) (8) — (92)
Benefits paid .................................... (23) (7) (75) (19) (49)
Fair value of plan assets at end of year ............... $1,871 $183 $ 1,688 $156 $ 1,371
Funded status—Net amount recognized .............. $(1,451) $ (73) $(1,378) $ (72) $(1,258)
(a) Continental, in 2010, represents combined Predecessor and Successor.
(b) UAL represents plan assets and liabilities assumed in the Merger. Continental represents remeasurement of the projected
benefit obligation as of the Merger closing date.
Amounts recognized in the consolidated balance sheets consist of:
Noncurrent asset ................................. $ 32 $ 32 $ — $24 $ —
Current liability ................................. (10) (4) (6) (3) (10)
Noncurrent liability .............................. (1,473) (101) (1,372) (93) (1,248)
Net amount recognized ........................ $(1,451) $ (73) $(1,378) $(72) $(1,258)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial gain (loss) ........................... $ 226 $ (7) $ 233 $ (1) $(1,174)
Prior service credit (cost) .......................... 18 18 — 18 (22)
Net amount recognized ........................ $ 244 $ 11 $ 233 $17 $(1,196)
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