American Airlines 2003 Annual Report Download - page 72

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70
10. Retirement Benefits (Continued)
The following table provides a reconciliation of the changes in the defined benefit plans’ benefit obligations and fair
value of assets for the years ended December 31, 2003 and 2002, and a statement of funded status as of
December 31, 2003 and 2002 (in millions):
Pension Benefits Other Benefits
2003 2002 2003 2002
Reconciliation of benefit obligation
Obligation at January 1 $ 8,757 $ 7,422 $ 3,299 $ 2,759
Service cost 370 352 85 77
Interest cost 569 569 218 207
Actuarial (gain) loss (96) 820 (138) 391
Plan amendments (90) 65 (58) -
Benefit payments (554) (394) (143) (135)
Curtailments (60) - - -
Settlements (2) (77) - -
Obligation at December 31 $ 8,894 $ 8,757 $ 3,263 $ 3,299
Reconciliation of fair value of plan assets
Fair value of plan assets at January 1 $ 5,323 $ 5,482 $ 100 $ 95
Actual return on plan assets 1,268 (16) 25 (13)
Employer contributions 195 328 138 153
Benefit payments (554) (394) (143) (135)
Settlements (2) (77) - -
Fair value of plan assets at December 31 $ 6,230 $ 5,323 $ 120 $ 100
Funded status
Accumulated benefit obligation (ABO) $ 8,209 $ 7,344 $ - $ -
Projected benefit obligation (PBO) 8,894 8,757 - -
Accumulated postretirement benefit
obligation (APBO) - - 3,263 3,299
Fair value of assets 6,230 5,323 120 100
Funded status at December 31 (2,664) (3,434) (3,143) (3,199)
Unrecognized loss 1,649 2,709 407 581
Unrecognized prior service cost 173 330 (81) (36)
Unrecognized transition asset (3) (4) - -
Net amount recognized $ (845) $ (399) $ (2,817) $ (2,654)
As of December 31, 2003 and 2002, the accumulated benefit obligation exceeded the fair value of plan assets for
all of the Company’s defined benefit plans.
At December 31, 2003 and 2002, other benefits plan assets of approximately $118 million and $98 million,
respectively, were invested in shares of mutual funds managed by a subsidiary of AMR.