United Airlines 2010 Annual Report Download - page 124

Other Postretirement Benefits
Year Ended
December 31, 2010
Year Ended
December 31, 2009
(In millions) UAL United Continental (a)
UAL &
United
Continental
Predecessor
Change in benefit obligation:
Benefit obligation at beginning of year ............. $2,069 $ 2,069 $ 233 $ 1,958 $ 249
Merger impact (b) ............................. 278 — 35 — —
Service cost .................................. 33 30 11 28 11
Interest cost .................................. 118 115 13 114 15
Plan participants’ contributions ................... 72 72 3 70 2
Actuarial (gain) loss (b) ........................ 120 131 (11) 109 (26)
Curtailments ................................. — — — (9) —
Federal subsidy ............................... 13 13 — 11 —
Plan amendments ............................. — — 2 — —
Gross benefits paid ............................ (209) (205) (17) (212) (18)
Benefit obligation at end of year .................. $2,494 $ 2,225 $ 269 $ 2,069 $ 233
Change in plan assets:
Fair value of plan assets at beginning of year ........ $ 58 $ 58 $— $ 57 $—
Actual return on plan assets ..................... 2 2 — 2 —
Employer contributions ......................... 131 131 — 141 —
Plan participants’ contributions ................... 72 72 — 70 —
Benefits paid ................................. (205) (205) — (212) —
Fair value of plan assets at end of year ............. $ 58 $ 58 $— $ 58 $—
Funded status—Net amount recognized ............ $(2,436) $(2,167) $(269) $(2,011) $ 233
(a) Continental, in 2010, represents combined Predecessor and Successor.
(b) UAL represents plan assets and liabilities assumed in Merger. Continental represents remeasurement of the projected
benefit obligation as of the Merger closing date.
Amounts recognized in the consolidated balance sheets consist of:
Current liability ............................... $ (92) $ (76) $ (16) $ (83) $ (17)
Noncurrent liability ............................ (2,344) (2,091) (253) (1,928) (216)
Total liability ................................. $(2,436) $(2,167) $(269) $(2,011) $(233)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial gain $ 24 $ 13 $ 11 $ 155 $ 87
Prior service cost .............................. — — — — (166)
Total accumulated other comprehensive income
(loss) ..................................... $ 24 $ 13 $ 11 $ 155 $ (79)
The following information relates to all pension plans with an accumulated benefit obligation and a
projected benefit obligation in excess of plan assets at December 31 (in millions):
UAL United
Continental
Successor
Continental
Predecessor
2010 2009 2010 2009 2010 2009
Projected benefit obligation ............................. $3,202 $211 $136 $211 $3,066 $2,629
Accumulated benefit obligation .......................... 2,906 176 121 176 2,785 2,401
Fair value of plan assets ................................ 1,742 104 54 104 1,688 1,371
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