Delta Airlines 2005 Annual Report Download - page 107

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Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Funded Status (measured at September 30):
Other
Pension Postretirement
Benefits Benefits
(in millions) 2005 2004 2005 2004
Funded status $(6,372) $(5,298) $(1,793) $(1,835)
Unrecognized net actuarial loss 4,286 3,989 368 489
Unrecognized transition obligation — 22 — —
Unrecognized prior service cost (benefit) 7 107 (496) (1,013)
Contributions (net) made between the measurement date and year end — 69 46 38
Special termination benefits recognized between the measurement date and year end — (10) — (142)
Settlement/ Curtailment (charge) gain recognized between the measurement date and year end (129) (126) — 527
Net amount recognized on the Consolidated Balance Sheets $(2,208) $(1,247) $(1,875) $(1,936)
In 2005 and 2004, settlement charges for the pension plans of $129 million and $126 million, respectively, were recognized
between the measurement date and year end. These related primarily to the Pilot Plan and are discussed in more detail below as a
component of net periodic pension cost.
The 2004 curtailment gain and special termination benefits relate to changes to our retiree medical coverage for nonpilot
employees who retire after January 1, 2006 as discussed above; pension credit being given to certain employees furloughed under our
transformation plan; and benefits provided under AERO.
Amounts recognized in the Consolidated Balance Sheets consist of:
Other
Pension Postretirement
Benefits Benefits
(in millions) 2005 2004 2005 2004
Prepaid benefit cost $ 8 $ 19 $ — $ —
Accrued benefit cost (2,216) (1,266) (1,875) (1,936)
Net prepaid/(accrued) benefit cost (2,208) (1,247) (1,875) (1,936)
Intangible assets 7 178 — —
Additional minimum liability (4,115) (3,933) — —
Accumulated other comprehensive loss, pretax 4,108 3,755 — —
Net amount recognized $ (2,208) $ (1,247) $ (1,875) $ (1,936)
At December 31, 2005 and 2004, we recorded adjustments to intangible assets and accumulated other comprehensive loss (see
Note 14) to recognize 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. An intangible asset is
recorded only to the extent of any unrecognized prior service cost and transition obligation.
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