American Airlines 2002 Annual Report Download - page 80

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78
12. Retirement Benefits (Continued)
The following table provides a reconciliation of the changes in the plans’ benefit obligations and fair value
of assets for the years ended December 31, 2002 and 2001, and a statement of funded status as of December 31,
2002 and 2001 (in millions):
Pension Benefits Other Benefits
2002 2001 2002 2001
Reconciliation of benefit obligation
Obligation at January 1 $ 7,422 $ 6,434 $ 2,759 $ 1,708
Service cost 352 260 77 66
Interest cost 569 515 207 175
Actuarial loss 820 416 391 205
Plan amendments 65 168 - (12)
Acquisition of TWA - - - 734
Benefit payments (394) (371) (135) (117)
Settlements (77) - - -
Obligation at December 31 $ 8,757 $ 7,422 $ 3,299 $ 2,759
Reconciliation of fair value of plan assets
Fair value of plan assets at January 1 $ 5,482 $ 5,731 $ 95 $ 88
Actual return on plan assets (16) 1 (13) (5)
Employer contributions 328 121 153 129
Benefit payments (394) (371) (135) (117)
Settlements (77) - - -
Fair value of plan assets at December 31 $ 5,323 $ 5,482 $ 100 $ 95
Funded status
Accumulated benefit obligation (ABO) $ 7,344 $ 6,041 $ - $ -
Projected benefit obligation (PBO) 8,757 7,422 - -
Accumulated postretirement benefit
obligation (APBO) - - 3,299 2,759
Fair value of assets 5,323 5,482 100 95
Funded status at December 31 (3,434) (1,940) (3,199) (2,664)
Unrecognized loss (gain) 2,709 1,454 581 168
Unrecognized prior service cost 330 286 (36) (42)
Unrecognized transition asset (4) (5) - -
Net amount recognized $ (399) $ (205) $ (2,654) $ (2,538)
As of December 31, 2002, the accumulated benefit obligation and the fair value of plan assets for pension
plans with accumulated benefit obligations in excess of plan assets were approximately $7.3 billion and $5.3
billion, respectively. As of December 31, 2001, the accumulated benefit obligation and the fair value of plan
assets for pension plans with accumulated benefit obligations in excess of plan assets were approximately $4.2
billion and $3.6 billion, respectively.
At December 31, 2002 and 2001, other benefits plan assets of approximately $98 million and $93 million,
respectively, were invested in shares of mutual funds managed by a subsidiary of AMR.