American Airlines 2006 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2006 American Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 113

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113

75
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, 2006 and 2005, and a statement of funded status as of
December 31, 2006 and 2005 (in millions):
Pension Benefits Other Benefits
2006 2005 2006 2005
Reconciliation of benefit obligation
Obligation at January 1 $ 11,003 $ 10,022 $ 3,384 $ 3,303
Service cost 399 372 78 75
Interest cost 641 611 194 197
Actuarial (gain) loss (390) 649 (212) (12)
Plan amendments - - (27) -
Benefit payments (605) (651) (161) (179)
Obligation at December 31 $ 11,048 $ 11,003 $ 3,256 $ 3,384
Reconciliation of fair value of plan assets
Fair value of plan assets at January 1 $ 7,778 $ 7,335 $ 161 $ 151
Actual return on plan assets 1,063 779 31 11
Employer contributions 329 315 171 178
Benefit payments (605) (651) (161) (179)
Fair value of plan assets at December 31 $ 8,565 $ 7,778 $ 202 $ 161
Funded status at December 31 $ (2,483) $ (3,225) $ (3,054) $ (3,223)
Amounts recognized in the
consolidated balance sheets
Current liability $ 8 $ 251 $ 187 $ -
Noncurrent liability 2,475 2,012 2,867 2,984
$ 2,483 $ 2,263 $ 3,054 $ 2,984
Amounts recognized in
other comprehensive loss
Net actuarial loss (gain) $ 1,310 $ - $ 70 $ -
Prior service cost (credit) 153 - (77) -
$ 1,463 $ - $ (7) $ -
For plans with accumulated benefit
obligations exceeding the fair value
of plan assets
Projected benefit obligation (PBO) $ 11,048 $ 11,003 $ - $ -
Accumulated benefit obligation (ABO) 10,153 10,041 - -
Accumulated postretirement benefit
obligation (APBO)
-
-
3,256
3,384
Fair value of plan assets 8,565 7,778 202 161
ABO less fair value of plan assets 1,588 2,263 - -