United Airlines 2012 Annual Report Download - page 117

Table of Contents
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In 2006, United began participating in the IAM National Pension Plan (“IAM Plan”) with respect to certain employees. The IAM Plan is a multi-employer
pension plan whereby contributions by the participating company are based on covered hours by the applicable covered employees. The risks of participating
in these multi-employer plans are different from single-employer plans, as the Company can be subject to additional risks that others do not meet their
obligations, which in certain circumstances could revert to United.
United’s participation in the IAM Plan for the annual period ended December 31, 2012 is outlined in the table below. There have been no significant changes
that affect the comparability of 2012 and 2011 contributions. United’s contributions to the IAM Plan was $36 million, $34 million and $34 million for the
years ended December 31, 2012, 2011 and 2010, respectively. The IAM Plan reported $350 million in employers’ contributions for the year ended
December 31, 2011. For 2011, United’s contribution to the IAM Plan represented more than 5% of total contributions.
Pension Fund IAM National Pension Fund
EIN/ Pension Plan Number 51-6031295 - 002
Pension Protection Act Zone Status (2012 and 2011)* Green Zone
FIP/RP Status Pending/Implemented No
United’s Contributions $36 million and $34 million in the years ended December 31, 2012 and
2011, respectively
Surcharge Imposed No
Expiration Date of Collective Bargaining Agreement N/A
* Plans in the green zone are at least 80 percent funded.
At the date the financial statements were issued, Forms 5500 were not available for the plan year ending in 2012.
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In 2012 and 2011, substantially all employees participated in profit sharing plans, which paid 15% of total pre-tax earnings, excluding special items and
share-based compensation expense, to eligible employees when pre-tax profit, excluding special items, profit sharing expense and share-based compensation
program expense, exceeds $10 million. Eligible U.S. co-workers in each participating work group received a profit sharing payout using a formula based on
the ratio of each qualified co-worker’s annual eligible earnings to the eligible earnings of all qualified co-workers in all domestic workgroups. The international
profit sharing plan paid eligible non-U.S. co-workers the same percentage of eligible pay that is calculated under the U.S. profit sharing plan.
UAL recorded profit sharing and related payroll tax expense of $119 million in 2012, all of which was recorded by Continental. UAL, United and
Continental recorded profit sharing and related payroll tax expense of $265 million, $122 million, and $143 million, respectively, in 2011. UAL, United,
Continental Successor and Continental Predecessor recorded profit sharing and related payroll tax expense of $166 million, $165 million, less than $1
million and $77 million, respectively, in 2010. Profit sharing expense is recorded as a component of salaries and related costs in the consolidated statements of
operations.
During 2010, United and Continental maintained separate employee profit sharing plans for the employees of each respective subsidiary. United’s profit
sharing plan paid 15% of total GAAP pre-tax profits, excluding special items and share-based compensation expense, to the employees of United when pre-tax
profit excluding special items, profit sharing expense and share-based compensation program expense exceeded $10 million. Continental’s profit sharing plan
created an award pool of 15% of annual pre-tax income excluding special, unusual or non-recurring items.
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