Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

Employee Benefit Plans

Summary of changes to projected benefit obligations, plan assets, funded status and applicable amounts included in the Consolidated Balance Sheets

	2012						2011
	Pension			Other			Pension			Other
	(in thousands)
Change in benefit obligation
Benefit obligation, beginning of period	$	391,287		$	156,197		$	347,592		$	108,834
Service cost		2,723			11,152			2,833			6,342
Interest cost		18,993			8,548			19,426			6,657
Actuarial (gains) losses		26,450			11,196			38,747			37,380
Benefits paid		(17,569	)		(3,188	)		(17,311	)		(3,016	)
less: federal subsidy on benefits paid		N/A			39			N/A			—
Benefit obligation at end of year(a)	$	421,884		$	183,944		$	391,287		$	156,197
Change in plan assets
Fair value of assets, beginning of period	$	214,159		$	9,870		$	231,824		$	8,684
Actual return on plan assets		24,525			899			(11,283	)		(113	)
Employer contribution		17,019			4,837			10,929			4,315
Benefits paid		(17,569	)		(3,188	)		(17,311	)		(3,016	)
Fair value of assets at end of year	$	238,134		$	12,418		$	214,159		$	9,870
Funded status at December 31,	$	(183,750	)	$	(171,526	)	$	(177,128	)	$	(146,327	)
Amounts recognized in the statement of financial position consist of:
Current benefit liability	$	(17	)	$	(2,799	)	$	(17	)	$	(2,696	)
Noncurrent benefit liability		(183,733	)		(168,727	)		(177,111	)		(143,631	)
	$	(183,750	)	$	(171,526	)	$	(177,128	)	$	(146,327	)
Amounts recognized in other comprehensive loss
Unamortized actuarial loss	$	108,719		$	55,991		$	96,195		$	47,560
Prior service credit		(57	)		(23	)		(59	)		(25	)
	$	108,662		$	55,968		$	96,136		$	47,535

(a)

The accumulated pension benefit obligation as of December 31, 2012 and 2011 was $413.4 million and $381.9 million, respectively.

Schedule of net periodic benefit cost

	2012						2011						2010
	Pension			Other			Pension			Other			Pension			Other
	(in thousands)
Components of Net Periodic Benefit Cost
Service cost	$	2,723		$	11,152		$	2,833		$	6,342		$	3,271		$	5,705
Interest cost		18,993			8,548			19,426			6,657			19,338			5,607
Expected return on plan assets		(15,253	)		(819	)		(18,015	)		(774	)		(16,017	)		(624	)
Recognized net actuarial loss		4,653			2,717			184			278			165			40
Prior service credit		(2	)		(2	)		(2	)		(2	)		(2	)		(2	)
Net periodic benefit cost	$	11,114		$	21,596		$	4,426		$	12,501		$	6,755		$	10,726
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss
Current year actuarial (gain) loss	$	17,178		$	11,148		$	68,045		$	38,297		$	(1,799	)	$	7,143
Amortization of actuarial loss		(4,653	)		(2,717	)		(184	)		(278	)		(165	)		(40	)
Amortization of prior service credit		2			2			2			2			2			2
Total recognized in other comprehensive loss	$	12,527		$	8,433		$	67,863		$	38,021		$	(1,962	)	$	7,105
Total recognized in net periodic benefit cost and other comprehensive loss	$	23,641		$	30,029		$	72,289		$	50,522		$	4,793		$	17,831

Schedule of actuarial assumptions used to determine the net periodic benefit expense and the projected benefit obligation

	Pension						Postretirement						Disability
	2012			2011			2012			2011			2012			2011
Weighted average assumption used to determine net periodic benefit expense and projected benefit obligations:
Discount rate to determine net periodic benefit expense		4.94	%		5.71	%		5.14	%		5.81	%		4.91	%		5.59	%
Discount rate to determine projected benefit obligation		4.10	%		4.94	%		4.24	%		5.14	%		4.06	%		4.91	%
Expected return on plan assets		7.30	%++		7.90	%		N/A			N/A			6.90	%++		7.50	%
Rate of compensation increase		Various	+		Various	+		N/A			N/A			Various	+		Various	+

+

Differs for each pilot based on current fleet and seat position on the aircraft and seniority service. Negotiated salary increases and expected changes in fleet and seat positions on the aircraft are included in the assumed rate of compensation increase which range from 1.5% to 7.50% in 2012 and 2.0% to 7.5% in 2011.

++

Expected return on plan assets used to determine the net periodic benefit expense for 2013 will be 6.55% for Pension and 6.15% for Disability.

Schedule of annual effects of one-percentage point change in the assumed health care cost trend rates

	1-Percentage Point Increase		1-Percentage Point Decrease
	(in thousands)
Effect on total service and interest cost for the year ended December 31, 2012	$	3,795	$	(2,928	)
Effect on postretirement benefit obligation at December 31, 2012		30,700		(24,408	)

Schedule of actual allocation of our pension plan assets, target allocation of assets by category and the expected long-term rate of return by category

	Asset Allocation
							Expected Long-Term Rate of Return
	2012			Target
Equity securities—Domestic		36	%		32	%		7.53	%
Equity securities—Foreign		28	%		33	%		7.50	%
Fixed Income Securities		36	%		35	%		2.50	%
		100	%		100	%

Schedule of fair values of pension plan and other postretirement plan assets by asset category (excluding cash)

	Fair Value Measurements as of December 31, 2012
	Total			Level 1		Level 2			Level 3
	(in thousands)
Pension Plan Assets:
Cash equivalents	$	1,419		$	1,419	$	—		$	—
Equity securities:
Common stock—Domestic		42,140			42,140		—			—
Common stock—Foreign		26,284			26,284		—			—
Real estate investment trusts—Domestic		4,222			—		4,222			—
Real estate investment trusts—Foreign		3,743			—		3,743			—
Preferred stock—Domestic		496			496		—			—
Preferred stock—Foreign		322			322		—			—
Other equities—Domestic		220			220		—			—
Equity Index Funds		66,388			—		66,388			—
Fixed income securities:
Government bonds—Domestic		3,960			—		3,960			—
Government bonds—Foreign		18,313			—		18,313			—
Mortgage-based securities		2,625			—		2,625			—
Corporate bonds—Domestic		7,577			—		7,577			—
Corporate bonds—Foreign		3,444			—		3,444			—
State and Local bonds		150			—		150			—
Fixed Income Fund		43,952			—		43,952			—
Common collective trust fund		2,902			—		2,902			—
Forward contracts		(6	)		—		(6	)		—
Insurance company pooled separate account		4,478			—		4,478			—
Total	$	232,629		$	70,881	$	161,748		$	—
Postretirement Assets:
Common collective trust fund	$	12,356		$	—	$	12,356		$	—

	Fair Value Measurements as of December 31, 2011
	Total			Level 1		Level 2			Level 3
	(in thousands)
Pension Plan Assets:
Cash equivalents	$	25		$	25	$	—		$	—
Equity securities:
Common stock—Domestic		38,860			38,860		—			—
Common stock—Foreign		28,105			28,105		—			—
Real estate investment trusts—Domestic		3,450			—		3,450			—
Real estate investment trusts—Foreign		1,488			—		1,488			—
Preferred stock—Foreign		236			236		—			—
Other equities—Domestic		253			253		—			—
Other equities—Foreign		88			88		—			—
Equity Index Funds		57,148			—		57,148			—
Fixed income securities:
Government bonds—Domestic		4,848			—		4,848			—
Government bonds—Foreign		14,539			—		14,539			—
Mortgage-based securities		3,556			—		3,556			—
Corporate bonds—Domestic		6,713			—		6,713			—
Corporate bonds—Foreign		5,270			—		5,270			—
State and Local bonds		448			—		448			—
Fixed Income Fund		40,517			—		40,517			—
Common collective trust fund		2,395			—		2,395			—
Forward contracts		(85	)		—		(85	)		—
Insurance company pooled separate account		4,640			—		4,640			—
Total	$	212,494		$	67,567	$	144,927		$	—
Postretirement Assets:
Common collective trust fund	$	9,809		$	—	$	9,809		$	—

Schedule of projected benefits payments reflecting expected future service

			Other Benefits
	Pension Benefits		Gross		Expected Federal Subsidy
	(in thousands)
2013	$	18,515	$	3,872	$	(49	)
2014		19,922		4,407		(57	)
2015		21,195		4,860		(66	)
2016		22,387		5,443		(73	)
2017		23,707		6,046		(85	)
2018 - 2021		132,139		41,541		(620	)