Delta Airlines 2006 Annual Report Download - page 111

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
The incremental effects of adopting SFAS 158 on our Consolidated Balance Sheet at December 31, 2006 are presented in the following table.
(in millions) Pre-SFAS 158
Effect of adopting
SFAS 158
As reported at
December 31, 2006
Other noncurrent assets $ 1,196 $ (248) $ 948
Liabilities subject to compromise 20,502 (685) 19,817
Accumulated other comprehensive loss (955) 437 (518)
The requirement to measure the funded status of a plan as of the date of its year-end is not effective for the year ended December 31, 2006. We continue
to measure our benefit plans with a September 30 measurement date.
Defined Benefit Pension and Other Postretirement and Postemployment Benefit Plans
Defined Benefit Pension Plans.Prior to the events described above, we sponsored both funded and nonfunded noncontributory defined benefit pension plans
that covered substantially all of our employees. Currently, we sponsor the Non-pilot Plan and a separate frozen qualified defined benefit plan for certain pilots
formerly employed by Western Air Lines (“Western Plan”). Effective December 31, 2005, future pay and service accruals under the Non-pilot Plan were
frozen. The Non-pilot Plan provides a retirement benefit based on a combination of a final average earnings formula and a cash balance formula, subject to the
terms of that plan. Under our settlement agreement with the PBGC, we agreed to initiate, prior to our emergence from Chapter 11, a standard termination of
the Western Plan. Assuming current funding rules and current plan design, we estimate that the funding requirements under our Non-pilot Plan will be
approximately $100 million in 2007.
Postretirement Healthcare Plans. We also sponsor healthcare plans that provide benefits to substantially all Delta retirees and their eligible dependents
who are under age 65. Benefits under these plans are funded from our current assets and are subject to co-payments, deductibles and other limits as described
in the plans. Non-pilot employees are not eligible for company provided post-retirement healthcare coverage after age 65, except for those retirees eligible for
a subsidy to be applied to alternative coverage available through the 1114 non-pilot retiree committee. Pilots who retire after June 1, 2006 are not eligible for
subsidized post-age 65 healthcare coverage although they may purchase such coverage at full cost.
Postemployment Plans. We provide certain other welfare benefits to eligible former or inactive employees after employment, but before retirement,
primarily as part of the disability and survivorship plans. These disability and survivorship plans provide benefits to substantially all Delta employees as a
result of a participant’s death or disability. As discussed above, survivor benefits have been replaced with term life insurance coverage for pilots retiring on or
after January 1, 2008. Additionally, survivor benefits will not be paid for non-pilot employees who die or retire after July 1, 2010.
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