American Airlines 2007 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2007 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 107

  • 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

72
10. Retirement Benefits (Continued)
The following table provides a reconciliation of the changes in the pension and retiree medical and other benefit
obligations and fair value of assets for the years ended December 31, 2007 and 2006, and a statement of funded
status as of December 31, 2007 and 2006 (in millions):
Pension Benefits Retiree Medical and Other
Benefits
2007 2006 2007 2006
Reconciliation of benefit obligation
Obligation at January 1 $ 11,048 $ 11,003 $ 3,256 $ 3,384
Service cost 370 399 71 78
Interest cost 672 641 194 194
Actuarial (gain) loss (1,021) (390) (693) (212)
Plan amendments - - - (27)
Benefit payments (618) (605) (156) (161)
Obligation at December 31 $ 10,451 $ 11,048 $ 2,672 $ 3,256
Reconciliation of fair value of plan assets
Fair value of plan assets at January 1 $ 8,565 $ 7,778 $ 202 $ 161
Actual return on plan assets 766 1,063 9 31
Employer contributions 386 329 168 171
Benefit payments (618) (605) (155) (161)
Fair value of plan assets at December 31 $ 9,099 $ 8,565 $ 224 $ 202
Funded status at December 31 $ (1,352) $ (2,483) $ (2,448) $ (3,054)
Amounts recognized in the
consolidated balance sheets
Current liability $ 6 $ 8 $ 170 $ 187
Noncurrent liability 1,346 2,475 2,278 2,867
$ 1,352 $ 2,483 $ 2,448 $ 3,054
Amounts recognized in
other comprehensive loss
Net actuarial loss (gain) $ 245 $ 1,310 $ (605) $ 70
Prior service cost (credit) 137 153 (65) (77)
$ 382 $ 1,463 $ (670) $ (7)
For plans with accumulated benefit
obligations exceeding the fair value
of plan assets
Projected benefit obligation (PBO) $ 10,451 $ 11,048 $ - $ -
Accumulated benefit obligation (ABO) 9,486 10,153 - -
Accumulated postretirement benefit
obligation (APBO)
-
-
2,672
3,256
Fair value of plan assets 9,099 8,565 224 202
ABO less fair value of plan assets 387 1,588 - -