Alaska Airlines and Horizon Air 2009 Annual Report Download - page 176
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AMOUNTS NOT YET REFLECTED IN NET PERIODIC BENEFIT COST AND INCLUDED IN ACCUMULATED
OTHER COMPREHENSIVE INCOME OR LOSS (AOCI):
2009 2008
Qualified Nonqualified Qualified Nonqualified
Prior service cost (credit) .......................... $ (17.5) $0.1 $ 16.3 $0.2
Net loss ........................................ 395.0 4.8 475.4 4.3
Amount recognized in AOCI (pretax) .................. $377.5 $4.9 $491.7 $4.5
The expected amortization of prior service credit
and net loss from AOCI in 2010 is $(0.9) million
and $22.2 million, respectively, for the qualified
defined-benefit pension plans. For the
nonqualified defined-benefit pension plans, the
expected combined amortization of prior service
cost and net loss from AOCI in 2010 is $0.2
million.
Net pension expense for the defined-benefit plans included the following components for 2009, 2008,
and 2007 (in millions):
Qualified Nonqualified
2009 2008 2007 2009 2008 2007
Service cost ............................... $ 44.2 $ 46.6 $ 49.7 $0.7 $0.9 $1.1
Interest cost ............................... 66.9 62.7 60.9 2.2 2.1 1.9
Expected return on assets .................... (51.3) (71.8) (66.3) ———
Amortization of prior service cost ............... 4.3 4.4 4.9 0.1 0.1 0.1
Curtailment loss ............................ —0.5 — ———
Recognized actuarial loss .................... 28.9 5.6 13.4 0.1 0.2 0.3
Net pension expense ........................ $ 93.0 $ 48.0 $ 62.6 $3.1 $3.3 $3.4
Historically, the Company’s practice has been to
contribute to the qualified defined-benefit
pension plans in an amount equal to the greater
of 1) the minimum required by law, 2) the PPA
target liability, or 3) the service cost as
actuarially calculated. There are no current
funding requirements for the Company’s plans in
2010. However, the Company anticipates that it
will continue with its historical funding practice in
2010, which would result in funding of
approximately $50 million. The Company expects
to contribute approximately $2.5 million to the
nonqualified defined-benefit pension plans during
2010.
Future benefits expected to be paid over the next
ten years under the defined-benefit pension
plans from the assets of those plans as of
December 31, 2009 are as follows (in millions):
Qualified Nonqualified
2010 .................. $ 36.4 $ 2.5
2011 .................. 48.8 2.2
2012 .................. 50.0 2.4
2013 .................. 57.2 2.5
2014 .................. 64.7 2.7
2015– 2019 ............ $394.9 $17.3
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