Delta Airlines 2003 Annual Report Download - page 113

Table of Contents
Amounts recognized in the Consolidated Balance Sheets consist of:
Other
Pension Postretirement
Benefits Benefits
(in millions) 2003 2002 2003 2002
Prepaid benefit cost $ 202 $ 335 $ — $ —
Accrued benefit cost (1,179) (816) (2,412) (2,423)
Intangible assets 227 333 — —
Additional minimum liability (4,052) (2,889) — —
Accumulated other comprehensive loss 3,826 2,558 — —
Net amount recognized $ (976) $ (479) $ (2,412) $ (2,423)
During December 2003, we recorded a $212 million non-cash charge on our Consolidated Statement of Operations related to our pilots' defined benefit
pension plan due to a significant increase in pilot retirements. We recorded this charge in accordance with SFAS No. 88, "Employers' Accounting for
Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits" (SFAS 88). SFAS 88 requires settlement accounting if the cost
of all settlements, including lump sum retirement benefits paid, in a year exceeds the total of the service and interest cost components of pension expense for
the same period.
The special termination benefits and curtailment loss (gain) reflected in the table above relate to the workforce reduction programs offered to certain of our
employees in 2002. See Note 15 for additional information about our 2002 workforce reduction programs.
At December 31, 2003 and 2002, we recorded a non-cash charge to accumulated other comprehensive loss to recognize a portion of our additional minimum
pension liability in accordance with SFAS No. 87, "Employers' Accounting for Pensions" (SFAS 87). SFAS 87 requires that this liability be recognized at
year end in an amount equal to the amount by which the accumulated benefit obligation (ABO) exceeds the fair value of the defined benefit pension plan
assets. The additional minimum pension liability was recorded by recognizing an intangible asset to the extent of any unrecognized prior service cost and
transition obligation, which totaled $227 million and $333 million at December 31, 2003 and 2002, respectively. The additional minimum pension liability
adjustments totaling $786 million and $1.6 billion, net of tax, were recorded in accumulated other comprehensive loss on our Consolidated Balance Sheets at
December 31, 2003 and 2002, respectively (see Note 13).
The accumulated benefit obligation for all our defined benefit pension plans was $11.9 billion and $10.1 billion at September 30, 2003 and 2002, respectively.
The following is information about our pension plans with an accumulated benefit obligation in excess of plan assets (measured at September 30):
(in millions) 2003 2002
Projected benefit obligation $ 12,477 $ 11,682
Accumulated benefit obligation 11,863 10,145
Fair value of plan assets 6,818 6,775
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