American Airlines 2005 Annual Report Download - page 75

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72
10. Retirement Benefits (Continued)
The following table provides a reconciliation of the changes in the pension and other benefit obligations and fair
value of assets for the years ended December 31, 2005 and 2004, and a statement of funded status as of
December 31, 2005 and 2004 (in millions):
Pension Benefits Other Benefits
2005 2004 2005 2004
Reconciliation of benefit obligation
Obligation at January 1 $ 10,022 $ 8,894 $ 3,303 $ 3,263
Service cost 372 358 75 75
Interest cost 611 567 197 202
Actuarial (gain) loss 649 647 (12) (81)
Plan amendments - 27 - -
Benefit payments (651) (471) (179) (156)
Obligation at December 31 $ 11,003 $ 10,022 $ 3,384 $ 3,303
Reconciliation of fair value of plan assets
Fair value of plan assets at January 1 $ 7,335 $ 6,230 $ 151 $ 120
Actual return on plan assets 779 1,109 11 18
Employer contributions 315 467 178 169
Benefit payments (651) (471) (179) (156)
Fair value of plan assets at December 31 $ 7,778 $ 7,335 $ 161 $ 151
Funded status
Accumulated benefit obligation (ABO) $ 10,041 $ 9,158 $ - $ -
Projected benefit obligation (PBO) 11,003 10,022 - -
Accumulated postretirement benefit
obligation (APBO)
-
-
3,384
3,303
Fair value of assets 7,778 7,335 161 151
Funded status at December 31 (3,225) (2,687) (3,223) (3,152)
Unrecognized loss 2,174 1,698 300 311
Unrecognized prior service cost 170 186 (61) (71)
Unrecognized transition asset (1) (2) - -
Net amount recognized $ (882) $ (805) $ (2,984) $ (2,912)
As of December 31, 2005 and 2004, the accumulated benefit obligation exceeded the fair value of plan assets for
all of the Company’s defined benefit plans.
At December 31, 2005 and 2004, pension benefit plan assets of $48 million and $116 million, respectively, and
other benefits plan assets of approximately $159 million and $149 million, respectively, were invested in shares of
mutual funds managed by a subsidiary of AMR.