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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2017
Defined Benefit Plan [Abstract]  
Employee Benefit Plans EMPLOYEE BENEFIT PLANS

We sponsor defined benefit and defined contribution pension plans, healthcare plans and disability and survivorship plans for eligible employees and retirees and their eligible family members.

Defined Benefit Pension Plans. We sponsor defined benefit pension plans for eligible employees and retirees. These plans are closed to new entrants and frozen for future benefit accruals. The Pension Protection Act of 2006 allows commercial airlines to elect alternative funding rules ("Alternative Funding Rules") for defined benefit plans that are frozen. We elected the Alternative Funding Rules under which the unfunded liability for a frozen defined benefit plan may be amortized over a fixed 17-year period and is calculated using an 8.85% discount rate. We have no minimum funding requirements in 2018. However, in January 2018, we voluntarily contributed approximately $500 million to these plans.

Defined Contribution Pension Plans. We sponsor several defined contribution plans. These plans generally cover different employee groups and employer contributions vary by plan. The costs associated with our defined contribution pension plans were $875 million, $733 million and $592 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Postretirement Healthcare Plans. We sponsor healthcare plans that include providing 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.

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
 
Pension Benefits
 
Other Postretirement and Postemployment Benefits
 
December 31,
 
December 31,
(in millions)
2017
2016
 
2017
2016
Benefit obligation at beginning of period
$
20,859

$
20,611

 
$
3,379

$
3,336

Service cost
—

—

 
87

68

Interest cost
853

917

 
138

147

Actuarial loss (gain)
1,068

411

 
183

115

Benefits paid, including lump sums and annuities
(1,075
)
(1,071
)
 
(311
)
(318
)
Participant contributions
—

—

 
28

31

Settlements
(9
)
(9
)
 
—

—

Benefit obligation at end of period(1)
$
21,696

$
20,859

 
$
3,504

$
3,379

 
 
 
 
 
 
Fair value of plan assets at beginning of period
$
10,301

$
9,374

 
$
784

$
884

Actual gain (loss) on plan assets
1,966

687

 
138

51

Employer contributions
3,561

1,320

 
254

154

Participant contributions
—

—

 
28

31

Benefits paid, including lump sums and annuities
(1,075
)
(1,071
)
 
(338
)
(336
)
Settlements
(9
)
(9
)
 
—

—

Fair value of plan assets at end of period
$
14,744

$
10,301


$
866

$
784

 
 
 
 
 
 
Funded status at end of period
$
(6,952
)
$
(10,558
)
 
$
(2,638
)
$
(2,595
)

(1) 
At the end of each year presented, our accumulated benefit obligations for our pension plans are equal to the benefit obligations shown above.

During 2017 and 2016, net actuarial losses increased our benefit obligation due to the decrease in discount rates. These gains and losses are recorded in AOCI and reflected in the table below.

A net actuarial loss of $277 million will be amortized from AOCI into net periodic benefit cost in 2018. Amounts are generally amortized from AOCI over the expected future lifetime of plan participants.

Balance Sheet Position
 
Pension Benefits
 
Other Postretirement and Postemployment Benefits
 
December 31,
 
December 31,
(in millions)
2017
2016
 
2017
2016
Current liabilities
$
(32
)
$
(30
)
 
$
(121
)
$
(125
)
Noncurrent liabilities
(6,920
)
(10,528
)
 
(2,517
)
(2,470
)
Total liabilities
$
(6,952
)
$
(10,558
)
 
$
(2,638
)
$
(2,595
)
 
 
 
 
 
 
Net actuarial loss
$
(8,495
)
$
(8,515
)
 
$
(651
)
$
(570
)
Prior service credit
—

—

 
56

82

Total accumulated other comprehensive loss, pre-tax
$
(8,495
)
$
(8,515
)
 
$
(595
)
$
(488
)

Net Periodic Cost
 
Pension Benefits
 
Other Postretirement and Postemployment Benefits
 
Year Ended December 31,
 
Year Ended December 31,
(in millions)
2017
2016
2015
 
2017
2016
2015
Service cost
$
—

$
—

$
—

 
$
87

$
68

$
62

Interest cost
853

917

884

 
138

147

141

Expected return on plan assets
(1,143
)
(902
)
(879
)
 
(69
)
(74
)
(81
)
Amortization of prior service credit
—

—

—

 
(26
)
(26
)
(26
)
Recognized net actuarial loss
262

233

232

 
32

24

24

Settlements
3

3

3

 
—

—

—

Net periodic cost(1)
$
(25
)
$
251

$
240

 
$
162

$
139

$
120


(1) 
See Note 1 for discussion on ASU No. 2017-07, "Compensation - Retirement Benefits (Topic 715)."

Assumptions

We used the following actuarial assumptions to determine our benefit obligations and our net periodic cost for the periods presented:
 
December 31,
Benefit Obligations(1)
2017
2016
Weighted average discount rate
3.69
%
4.20
%
 
Year Ended December 31,
Net Periodic Cost(1)
2017
2016
2015
Weighted average discount rate - pension benefit
4.14
%
4.57
%
4.13
%
Weighted average discount rate - other postretirement benefit
4.19
%
4.53
%
4.13
%
Weighted average discount rate - other postemployment benefit
4.14
%
4.50
%
4.13
%
Weighted average expected long-term rate of return on plan assets
8.96
%
8.94
%
8.94
%
Assumed healthcare cost trend rate(2)
7.00
%
6.50
%
7.00
%
(1) 
Future employee compensation levels do not impact our frozen defined benefit pension plans or other postretirement plans and impact only a small portion of our other postemployment liability.
(2) 
Healthcare cost trend rate at December 31, 2017 is assumed to decline gradually to 5.00% by 2026 and remain unchanged thereafter.

Healthcare Cost Trend Rate. Assumed healthcare cost trend rates have an effect on the amounts reported for the other postretirement benefit plans. A 1% change in the healthcare cost trend rate used in measuring the plan benefit obligation for these plans would have the following effects:
(in millions)
1% Increase
1% (Decrease)
Increase (decrease) in total service and interest cost
$
1

$
(1
)
Increase (decrease) in the accumulated plan benefit obligation
9

(30
)


Expected Long-Term Rate of Return. Our expected long-term rate of return on plan assets is based primarily on plan-specific investment studies using historical market return and volatility data. Modest excess return expectations versus some public market indices are incorporated into the return projections based on the actively managed structure of the investment programs and their records of achieving such returns historically. We also expect to receive a premium for investing in less liquid private markets. We review our rate of return on plan assets assumptions annually. Our annual investment performance for one particular year does not, by itself, significantly influence our evaluation. The investment strategy for our defined benefit pension plan assets is to earn a long-term return that meets or exceeds our annualized return target while taking an acceptable level of risk and maintaining sufficient liquidity to pay current benefits and other cash obligations of the plan. This is achieved by investing in a globally diversified mix of public and private equity, fixed income, real assets, hedge funds and other assets and instruments. Our expected long-term rate of return on assets for net periodic pension benefit cost for the year ended December 31, 2017 was 8.96%.

Life Expectancy. Changes in life expectancy may significantly change our benefit obligations and future expense. We use the Society of Actuaries ("SOA") published mortality data, other publicly available information and our own perspective of future longevity to develop our best estimate of life expectancy. The SOA publishes annual updated mortality tables for U.S. plans and updated improvement scale. Each year we consider updates by the SOA in setting our mortality assumptions for purposes of measuring pension and other postretirement and postemployment benefit obligations.

Benefit Payments

Benefit payments in the table below are based on the same assumptions used to measure the related benefit obligations. Actual benefit payments may vary significantly from these estimates. Benefits earned under our pension plans and certain postemployment benefit plans are expected to be paid from funded benefit plan trusts, while our other postretirement benefits are funded from current assets.

The following table summarizes the benefit payments that are scheduled to be paid in the years ending December 31:
(in millions)
Pension Benefits
Other Postretirement and Postemployment Benefits
2018
$
1,170

$
284

2019
1,177

291

2020
1,201

296

2021
1,220

297

2022
1,238

296

2023-2027
6,351

1,417



Plan Assets

We have adopted and implemented investment policies for our defined benefit pension plans that incorporate strategic asset allocation mixes intended to best meet the plans' long-term obligations, while maintaining an appropriate level of risk and liquidity. These asset portfolios employ a diversified mix of investments, which are reviewed periodically. Active management strategies are utilized where feasible in an effort to realize investment returns in excess of market indices. Derivatives in the plans are primarily used to manage risk and gain asset class exposure while still maintaining liquidity. As part of these strategies, the plans are required to hold cash collateral associated with certain derivatives. Our investment strategies target a mix of 40-50% growth-seeking assets, 20-30% income-generating assets and 25-30% risk-diversifying assets. Risk diversifying assets include hedged mandates implementing long-short, market neutral and relative value strategies that invest primarily in publicly-traded equity, fixed income, foreign currency and commodity securities and are used to improve the impact of active management on the plans.
Benefit Plan Assets Measured at Fair Value on a Recurring Basis

Benefit Plan Assets. Benefit plan assets relate to our defined benefit pension plans and certain of our postemployment benefit plans. These investments are presented net of the related benefit obligation in pension, postretirement and related benefits on the Consolidated Balance Sheets. See Note 2 of the Notes to the Consolidated Financial Statements for a description of the levels within the fair value hierarchy and associated valuation techniques used to measure fair value. The following table shows our benefit plan assets by asset class.
 
December 31, 2017
 
December 31, 2016
 
Valuation Technique
(in millions)
Level 1
Level 2
Total
 
Level 1
Level 2
Total
 
Equities and equity-related instruments
$
2,033

$
13

$
2,046

 
$
2,021

$
14

$
2,035

 
(a)
Delta common stock
801

—

801

 
386

—

386

 
(a)
Cash equivalents
735

697

1,432

 
228

1,240

1,468

 
(a)
Fixed income and fixed income-related instruments
17

3,648

3,665

 
8

1,190

1,198

 
(a)(b)
Benefit plan assets
$
3,586

$
4,358

$
7,944

 
$
2,643

$
2,444

$
5,087

 
 
 
 
 
 
 
 
 
 
 
 
Investments measured at net asset value ("NAV")(1)
 
 
$
7,378

 
 
 
$
5,724

 
 
Total benefit plan assets
 
 
$
15,322

 
 
 
$
10,811

 
 

(1) 
Investments that were measured at NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.

Equities and Equity-Related Instruments. Investments include common stock and equity-related instruments. Common stock is valued at the closing price reported on the active market on which the individual securities are traded. Equity-related instruments include investments in securities traded on exchanges, including listed futures and options, which are valued at the last reported sale prices on the last business day of the year or, if not available, the last reported bid prices. Over-the-counter securities are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes.

Delta Common Stock. In each of 2017 and 2016, we contributed $350 million of Delta common stock as a portion of the employer contribution to certain of its defined benefit pension plans. The Delta common stock investment is managed by an independent fiduciary.

Cash Equivalents. These investments primarily consist of high-quality, short-term obligations that are a part of institutional money market mutual funds that are calculated using current market quotations or an appropriate substitute that reflects current market conditions.

Fixed Income and Fixed Income-Related Instruments. Investments include corporate bonds, government bonds, collateralized mortgage obligations and other asset-backed securities. These investments are generally valued at the bid price or the average of the bid and ask price. Prices are based on pricing models, quoted prices of securities with similar characteristics, or broker quotes. Fixed income-related instruments include investments in securities traded on exchanges, including listed futures and options, which are valued at the last reported sale prices on the last business day of the year, or if not available, the last reported bid prices. Over-the-counter securities are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes.

The following table summarizes investments measured at fair value based on NAV per share as a practical expedient:
 
December 31, 2017
 
December 31, 2016
(in millions)
Fair Value
Redemption Frequency
Redemption Notice Period
Unfunded Commitments
 
Fair Value
Redemption Frequency
Redemption Notice Period
Unfunded Commitments
Hedge funds and hedge fund-related strategies
$
4,768

(5)
2-120 Days
$
—

 
$
3,308

(5)
4-120 Days
$
—

Commingled funds, private equity and private equity-related instruments
1,375

(1) (3) (4)
10-30 Days
—

 
1,214

(1) (3) (4)
15-30 Days
525

Fixed income and fixed income-related instruments
311

(2)
3-15 Days
—

 
270

(2)
5 Days
—

Real assets
924

(3) (4)
N/A
94

 
698

(3) (4)
N/A
529

Other
—

(1)
30 Days
—

 
234

(2)
2 Days
—

Total investments measured at NAV
$
7,378



$
94

 
$
5,724



$
1,054

(1) 
Monthly
(2) 
Semi-monthly
(3) 
Semi-annually
(4) 
Annually
(5) 
Various. Includes funds with weekly, monthly, semi-monthly, quarterly and custom redemption frequencies as well as funds with a redemption window following the anniversary of the initial investment.

Hedge Funds and Hedge Fund-Related Strategies. These investments are primarily made through shares of limited partnerships or similar structures for which a liquid secondary market does not exist. These funds are typically valued monthly by third-party administrators that have been appointed by the funds' general partners.

Commingled Funds, Private Equity and Private Equity-Related Instruments. Investments include commingled funds invested in common stock, as well as private equity and private equity-related instruments. Commingled funds are based on quoted market prices of the underlying assets owned by the fund. Private equity and private equity-related strategies are valued based on valuation models where one or more of the significant inputs into the model cannot be observed and which require the development of assumptions.

Fixed Income and Fixed Income-Related Instruments. Investments include commingled funds invested in debt obligations. Commingled funds are based on quoted market prices of the underlying assets owned by the fund.

Real Assets. These investments include real estate, energy, timberland, agriculture and infrastructure. The valuation of real assets requires significant judgment due to the absence of quoted market prices as well as the inherent lack of liquidity and the long-term nature of these assets. Investments are valued based on valuation models where one or more of the significant inputs into the model cannot be observed and which require the development of assumptions.

Other. Primarily includes globally-diversified, risk-managed commingled funds consisting mainly of equity, fixed income and commodity exposures.

On an annual basis we assess the potential for adjustments to the fair value of all investments. Certain of our investments are valued using NAV as a practical expedient due to the lag in the availability of data. This primarily applies to private equity, private equity-related strategies and real assets. We solicit valuation updates from the investment mangers and use their information and corroborating data from public markets to determine any needed fair value adjustments.

Other

We also sponsor defined benefit pension plans for eligible employees in certain foreign countries. These plans did not have a material impact on our Consolidated Financial Statements in any period presented.

Profit Sharing Program

Our broad-based employee profit sharing program provides that, for each year in which we have an annual pre-tax profit, as defined by the terms of the program, we will pay a specified portion of that profit to employees. In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items. For the years ended December 31, 2017, 2016 and 2015, we recorded expenses of $1.1 billion, $1.1 billion and $1.5 billion under the profit sharing program, respectively.

Effective October 1, 2017, we aligned our profit sharing plans under a single formula. Under this formula, our profit sharing program pays 10% to all eligible employees for the first $2.5 billion of annual profit and 20% of annual profit above $2.5 billion. Prior to that time, the profit sharing program for pilots used this formula but for 2016 and the first nine months of 2017, the profit sharing program for merit, ground and flight attendant employees paid 10% of annual profit (as defined by the terms of the program) and, if we exceeded our prior-year results, the program paid 20% of the year-over-year increase in profit to eligible employees. For years prior to 2016, the profit sharing program for merit, ground and flight attendant employees paid according to the current formula. Going forward, all eligible employees will be paid profit sharing under the current formula.