American Airlines 2001 Annual Report Download - page 36

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34
The following tables provide the components of net periodic benefit cost for the years ended December 31, 2001, 2000
and 1999 (in millions):
Pension Benefits
2001 2000 1999
Components of net periodic benefit cost
Defined benefit plans:
Service cost $ 260 $ 213 $ 236
Interest cost 515 467 433
Expected return on assets (539) (490) (514)
Amortization of:
Transition asset (1) (1) (4)
Prior service cost 11 10 5
Unrecognized net loss 22 17 21
Net periodic benefit cost for
defined benefit plans 268 216 177
Defined contribution plans 244 174 155
Total $ 512 $ 390 $ 332
Other Benefits
2001 2000 1999
Components of net periodic benefit cost
Service cost $ 66 $ 43 $ 56
Interest cost 175 108 108
Expected return on assets (9) (7) (6)
Amortization of:
Prior service cost (5) (5) (5)
Unrecognized net gain - (14) -
Net periodic benefit cost $ 227 $ 125 $ 153
The following table provides the amounts recognized in the consolidated balance sheets as of December 31, 2001 and 2000
(in millions):
Pension Benefits Other Benefits
2001 2000 2001 2000
Prepaid benefit cost $ 123 $ 107 $ - $ -
Accrued benefit liability (328) (225) (2,538) (1,706)
Additional minimum liability (335) (21) - -
Intangible asset 163 72 - -
Accumulated other comprehensive income 172 10 - -
Net amount recognized $ (205) $ (57) $ (2,538) $ (1,706)
Pension Benefits Other Benefits
2001 2000 2001 2000
Weighted-average assumptions as of
December 31
Discount rate 7.50% 7.75% 7.50% 7.75%
Salary scale 4.26 4.26 - -
Expected return on plan assets 9.50 9.50 9.50 9.50
The assumed health care cost trend rate was six percent in 2001, decreasing gradually to an ultimate rate of 4.5 percent by
2004. The previously assumed health care cost trend rate was seven percent in 2000, decreasing gradually to an ultimate rate of
four percent by 2004.