United Airlines 2011 Annual Report Download - page 118
Download and view the complete annual report
Please find page 118 of the 2011 United Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
-
233
-
234
-
235
-
236
-
237
-
238
 |
 |
Table of Contents
Service cost $ 6 $65 $ 28 $11
Interest cost 8 153 114 15
Expected return on plan assets (7) (89) (4) —
Curtailment gain (1) — (9) —
Amortization of prior service cost — 10 — 21
Amortization of unrecognized actuarial (gain) loss 2 111 (20) (2)
Net periodic benefit cost $ 8 $ 250 $ 109 $ 45
Settlement charges (included in special charges) — 29 — —
Net benefit expense $ 8 $279 $ 109 $ 45
The Continental settlement charges in 2009, which were classified as special items, are non-cash charges related to lump sum distributions from the
Continental pilot-only defined benefit pension plan to pilots who retired. Settlement accounting is required if, for a given year, the cost of all settlements
exceeds, or is expected to exceed, the sum of the service cost and interest cost components of net periodic pension expense for a plan. Under settlement
accounting, unrecognized plan gains or losses must be recognized immediately in proportion to the percentage reduction of the plan’s projected pension benefit
obligation.
The estimated amounts that will be amortized in 2012 for actuarial gains (losses) are as follows (in millions):
Actuarial gain (loss) to be reclassified from accumulated other comprehensive
income into net periodic benefit cost $(21) $(1) $(20) $3 $4 $(1)
The weighted-average assumptions used for the benefit plans were as follows:
Discount rate (a) 3.34% 3.56% 5.13% 5.52% 5.24%
Rate of compensation increase (a) 3.11% 3.29% 2.44% 2.44% 2.44%
Discount rate 3.67% 3.96% 5.52% 5.24% 6.05%
Expected return on plan assets 5.82% 5.71% 7.75% 7.75% 8.00%
Rate of compensation increase 3.32% 3.33% 2.44% 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.
117