American Airlines 2009 Annual Report Download - page 77

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74
10. Retirement Benefits (Continued)
For plans with accumulated benefit
obligations exceeding the fair value
of plan assets
Pension Benefits
Retiree Medical and Other
Benefits
2009
2008
2009
2008
Projected benefit obligation (PBO)
$ 11,977
$ 10,884
$ -
$ -
Accumulated benefit obligation (ABO)
10,558
9,656
-
-
Accumulated postretirement benefit
obligation (APBO)
-
-
2,827
2,779
Fair value of plan assets
7,027
6,714
206
161
ABO less fair value of plan assets
3,531
2,942
-
-
At December 31, 2009 and 2008, pension benefit plan assets of $145 million and $460 million, respectively, and
retiree medical and other benefit plan assets of $204 million and $158 million, respectively, were invested in
shares of certain mutual funds.
The following tables provide the components of net periodic benefit cost for the years ended December 31, 2009,
2008 and 2007 (in millions):
Pension Benefits
2009
2008
2007
Components of net periodic benefit cost
Defined benefit plans:
Service cost
$ 333
$ 324
$ 370
Interest cost
712
684
672
Expected return on assets
(566)
(789)
(747)
Amortization of:
Prior service cost
13
16
16
Settlement
-
103
-
Unrecognized net loss
145
3
25
Net periodic benefit cost for
defined benefit plans
637
341
336
Defined contribution plans
168
170
166
$ 805
$ 511
$ 502
Retiree Medical and Other Benefits
2009
2008
2007
Components of net periodic benefit cost
Service cost
$ 59
$ 54
$ 70
Interest cost
179
172
194
Expected return on assets
(14)
(20)
(18)
Amortization of:
Prior service cost
(8)
(13)
(13)
Unrecognized net loss (gain)
(14)
(22)
(7)
Net periodic benefit cost
$ 202
$ 171
$ 226
The estimated net loss and prior service cost for the defined benefit pension plans that will be amortized from
Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $154 million
and $13 million, respectively. The estimated net gain and prior service credit for the retiree medical and other
postretirement plans that will be amortized from Accumulated other comprehensive income into net periodic
benefit cost over the next fiscal year are $10 million and $19 million, respectively.