Delta Airlines 2012 Annual Report Download - page 88

Postretirement Healthcare Plans. We sponsor healthcare plans that provide benefits to eligible retirees and their dependents who are under age
65 . We have generally eliminated company-paid post age 65
healthcare coverage, except for (1) subsidies available to a limited group of retirees and
their dependents and (2) a group of retirees who retired prior to 1987. Benefits under these plans are funded from current assets and employee
contributions. During 2012, we remeasured our postretirement healthcare obligation to account for changes to retiree medical benefits resulting from
the final integration of wages and benefits following our merger with Northwest Airlines and the voluntary workforce reduction programs offered to
eligible employees. As a result, we recorded $116 million of special termination benefits in restructuring and other items (see Note 16).
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. Substantially all employees are eligible for benefits under these plans in the
event of death and/or disability.
Benefit Obligations, Fair Value of Plan Assets and Funded Status
81
Pension Benefits
Other Postretirement and
Postemployment Benefits
December 31, December 31,
(in millions) 2012 2011 2012 2011
Benefit obligation at beginning of period
$
19,293
$
17,506
$
3,570
$
3,298
Service cost
—
—
56
52
Interest cost
930
969
164
180
Actuarial loss
2,334
1,860
147
311
Benefits paid, including lump sums and annuities
(1,057
)
(1,042
)
(310
)
(328
)
Participant contributions
—
—
58
54
Plan amendments
—
—
(
219
)
—
Special termination benefits
—
—
116
3
Settlements
(11
)
—
—
—
Benefit obligation at end of period
(1)
$
21,489
$
19,293
$
3,582
$
3,570
Fair value of plan assets at beginning of period
$
7,789
$
8,249
$
972
$
1,120
Actual gain (loss) on plan assets
778
(16
)
134
(37
)
Employer contributions
697
598
222
235
Participant contributions
—
—
58
54
Benefits paid, including lump sums and annuities
(1,057
)
(1,042
)
(382
)
(400
)
Settlements
(11
)
—
—
—
Fair value of plan assets at end of period
$
8,196
$
7,789
$
1,004
$
972
Funded status at end of period
$
(13,293
)
$
(11,504
)
$
(2,578
)
$
(2,598
)
(1)
At each period-
end presented, our accumulated benefit obligations for our pension plans are equal to the benefit obligations shown above.