Delta Airlines 2006 Annual Report Download - page 117

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
The following table summarizes, as of December 31, 2006 the benefit payments, which reflect expected service, as appropriate, that are scheduled to be
paid in the following years ending December 31:
(in millions)
Pension
Benefits
Other
Postretirement
Benefits
Other
Postemployment
Benefits
2007 $ 472 $ 106 $ 140
2008 462 109 146
2009 451 111 153
2010 444 107 160
2011 439 102 166
2012 — 2016 2,240 408 925
Total $ 4,508 $ 943 $ 1,690
Other Plans
We also sponsor defined benefit pension plans for eligible Delta employees in certain foreign countries. These plans did not have a material impact on
our Consolidated Financial Statements in any period presented.
Defined Contribution Pension Plans
Delta Family-Care Savings Plan (“Savings Plan”)
Eligible employees may contribute a portion of their covered pay to the Savings Plan. Generally, we match 50% of non-pilot employee contributions
with a maximum employer contribution of 2% of a participant’s covered pay. In 2006 and 2005, we provided all eligible Delta pilots with an employer
contribution of 2% of their covered pay. In 2004, the employer contribution for eligible Delta pilots was 3% of their covered pay. Prior to the Petition Date,
we generally made our contributions for non-pilots and pilots by allocating Series B ESOP Convertible Preferred Stock (“ESOP Preferred Stock”), common
stock or cash to the Savings Plan. Effective on the Petition Date, we began making all company contributions to the Savings Plan in cash. Our contributions,
which are recorded as salaries and related costs on our Consolidated Statements of Operations, totaled $44 million, $56 million, and $85 million for the years
ended December 31, 2006, 2005 and 2004, respectively.
During the March 2006 quarter, all remaining unallocated shares of ESOP Preferred Stock were allocated to participants in the Savings Plan and
converted to common stock. All of the common stock in the Savings Plan was then sold by the Plan’s trustee. For additional information on our ESOP
Preferred Stock and Common Stock, see Note 12.
Pilot Defined Contribution Plan
We established a defined contribution plan for Delta pilots effective January 1, 2005. During the year ended December 31, 2006 and 2005, we
recognized expense of $71 million and $83 million, respectively, for this plan. Effective with the termination of the Pilot Plan on September 2, 2006, eligible
pilots received a contribution of 9% of covered pay.
Delta Pilots Money Purchase Pension Plan (“MPPP”)
Effective June 30, 2006, the MPPP was terminated and the majority of assets were distributed to the participants. Through December 31, 2004, we
contributed 5% of covered pay to the MPPP for each eligible Delta pilot. During the year ended December 31, 2004, we recognized expense of $65 million
for this plan.
Note 11. Sale of ASA
On September 7, 2005, we sold ASA, our wholly owned subsidiary, to SkyWest for a purchase price of $425 million. In conjunction with this
transaction, we amended our contract carrier agreements with ASA and SkyWest Airlines, a wholly owned subsidiary of SkyWest, under which those regional