United Airlines 2010 Annual Report Download - page 126
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The estimated amounts that will be amortized from accumulated other comprehensive income into net
periodic benefit cost in 2011 for actuarial gains (losses) are as follows (in millions):
Pension Benefits
Other Postretirement
Benefits
UAL United Continental UAL United Continental
Actuarial gain (loss) .............................. $20 $(1) $21 $2 $1 $1
The weighted-average assumptions used for the benefit plans were as follows:
Pension Benefits
United
Continental
Successor
Continental
Predecessor
Weighted-average assumptions used to determine benefit obligations 2010 2009 2010 2009
Discount rate (a) ........................................... 3.56% 3.87% 5.52% 6.01%
Rate of compensation increase (a) ............................. 3.29% 3.27% 2.44% 2.30%
Weighted-average assumptions used to determine net expense
Discount rate (b) ........................................... 3.96% 3.72% 5.24% 6.13%
Expected return on plan assets (b) ............................. 5.71% 5.01% 7.75% 8.25%
Rate of compensation increase (b) ............................. 3.33% 3.02% 2.44% 2.30%
(a) The 2010 discount rate and rate of compensation increase used to determine benefit obligations at the Merger closing
date are 5.24% and 2.44%, respectively.
(b) The 2010 discount rate, expected return on plan assets and rate of compensation increase used by Continental
Predecessor to determine net expenses are 6.05%, 8.00% and 2.30%, respectively.
Other Postretirement Benefits
United
Continental
Successor
Continental
Predecessor
Weighted-average assumptions used to determine benefit obligations 2010 2009 2010 2009
Discount rate (a) ........................................... 5.15% 5.69% 4.97% 5.57%
Weighted-average assumptions used to determine net expense
Discount rate (b) ........................................... 5.69% 5.97% 4.58% 6.03%
Expected return on plan assets ................................ 4.00% 6.50% N/A N/A
Health care cost trend rate assumed for next year (b) .............. 8.00% 8.50% 7.50% 7.50%
Rate to which the cost trend rate is assumed to decline (ultimate trend
rate in 2016) ............................................ 5.00% 5.00% 5.00% 5.00%
(a) The 2010 discount rate used to determine benefit obligations at the Merger closing date is 4.58%.
(b) The 2010 discount rate and health care cost trend rate used by Continental Predecessor to determine net expense are
5.57% and 7.50%, respectively.
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