American Airlines 2004 Annual Report Download - page 72

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69
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, 2004 and 2003, and a statement of funded status as of
December 31, 2004 and 2003 (in millions):
Pension Benefits Other Benefits
2004 2003 2004 2003
Reconciliation of benefit obligation
Obligation at January 1 $ 8,894 $ 8,757 $ 3,263 $ 3,299
Service cost 358 370 75 85
Interest cost 567 569 202 218
Actuarial (gain) loss 647 (96) (81) (138)
Plan amendments 27 (90) - (58)
Benefit payments (471) (554) (156) (143)
Curtailments - (60) - -
Settlements - (2) - -
Obligation at December 31 $ 10,022 $ 8,894 $ 3,303 $ 3,263
Reconciliation of fair value of plan assets
Fair value of plan assets at January 1 $ 6,230 $ 5,323 $ 120 $ 100
Actual return on plan assets 1,109 1,268 18 25
Employer contributions 467 195 169 138
Benefit payments (471) (554) (156) (143)
Settlements - (2) - -
Fair value of plan assets at December 31 $ 7,335 $ 6,230 $ 151 $ 120
Funded status
Accumulated benefit obligation (ABO) $ 9,158 $ 8,209 $ - $ -
Projected benefit obligation (PBO) 10,022 8,894 - -
Accumulated postretirement benefit
obligation (APBO) - - 3,303 3,263
Fair value of assets 7,335 6,230 151 120
Funded status at December 31 (2,687) (2,664) (3,152) (3,143)
Unrecognized loss 1,698 1,649 311 407
Unrecognized prior service cost 186 173 (71) (81)
Unrecognized transition asset (2) (3) - -
Net amount recognized $ (805) $ (845) $ (2,912) $ (2,817)
As of December 31, 2004 and 2003, the accumulated benefit obligation exceeded the fair value of plan assets for
all of the Company’s defined benefit plans.
At December 31, 2004 and 2003, pension benefit plan assets of $116 million and $52 million, respectively, and
other benefits plan assets of approximately $149 million and $118 million, respectively, were invested in shares of
mutual funds managed by a subsidiary of AMR.