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Employee Benefit Plans
 9 Months Ended
Sep. 30, 2020
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
The following table provides the components of net periodic benefit cost (income) (in millions):
 Pension BenefitsRetiree Medical and Other
Postretirement Benefits
Three Months Ended September 30,2020201920202019
Service cost$1 $1 $2 $1 
Interest cost154 175 8 9 
Expected return on assets(253)(204)(3)(4)
Special termination benefits— — 410 — 
Settlements— — — — 
Amortization of:
Prior service cost (benefit)7 7 (33)(59)
Unrecognized net loss (gain)41 37 (5)(8)
Net periodic benefit cost (income)$(50)$16 $379 $(61)
 Pension BenefitsRetiree Medical and Other
Postretirement Benefits
Nine Months Ended September 30,2020201920202019
Service cost$3 $2 $5 $3 
Interest cost461 527 22 26 
Expected return on assets(757)(611)(9)(12)
Special termination benefits— — 410 — 
Settlements4 — — — 
Amortization of:
Prior service cost (benefit)21 21 (139)(177)
Unrecognized net loss (gain)124 113 (17)(24)
Net periodic benefit cost (income)$(144)$52 $272 $(184)
Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen.
The service cost component of net periodic benefit cost (income) is included in operating expenses, the cost for the special termination benefits is included in special items, net and the other components of net periodic benefit cost (income) are included in nonoperating other income (expense), net in the condensed consolidated statements of operations.
During the third quarter of 2020, we remeasured our retiree medical and other postretirement benefits to account for enhanced healthcare benefits provided to eligible team members who opted in to voluntary early retirement programs offered as a result of reductions to our operation due to COVID-19. For the three months ended September 30, 2020, we recognized a $410 million special charge for these enhanced healthcare benefits and increased our postretirement benefits obligation by $410 million as of September 30, 2020.
Pursuant to the CARES Act, minimum required pension contributions to be made in the calendar year 2020 can be deferred to January 1, 2021, with interest accruing from the original due date to the new payment date. We expect to defer our $133 million 2020 minimum required contributions to January 1, 2021, which we intend to pay or otherwise satisfy on or prior to December 31, 2020.
American Airlines, Inc.  
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
The following table provides the components of net periodic benefit cost (income) (in millions):
 Pension BenefitsRetiree Medical and Other
Postretirement Benefits
Three Months Ended September 30,2020201920202019
Service cost$1 $1 $2 $1 
Interest cost153 174 8 9 
Expected return on assets(252)(203)(3)(4)
Special termination benefits— — 410 — 
Settlements— — — — 
Amortization of:
Prior service cost (benefit)7 7 (33)(59)
Unrecognized net loss (gain)41 37 (5)(8)
Net periodic benefit cost (income)$(50)$16 $379 $(61)
 Pension BenefitsRetiree Medical and Other
Postretirement Benefits
Nine Months Ended September 30,2020201920202019
Service cost$2 $2 $5 $3 
Interest cost459 524 22 26 
Expected return on assets(754)(609)(9)(12)
Special termination benefits— — 410 — 
Settlements4 — — — 
Amortization of:
Prior service cost (benefit)21 21 (139)(177)
Unrecognized net loss (gain)123 113 (17)(24)
Net periodic benefit cost (income)$(145)$51 $272 $(184)
Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen.
The service cost component of net periodic benefit cost (income) is included in operating expenses, the cost for the special termination benefits is included in special items, net and the other components of net periodic benefit cost (income) are included in nonoperating other income (expense), net in the condensed consolidated statements of operations.
During the third quarter of 2020, American remeasured its retiree medical and other postretirement benefits to account for enhanced healthcare benefits provided to eligible team members who opted in to voluntary early retirement programs offered as a result of reductions to its operation due to COVID-19. For the three months ended September 30, 2020, American recognized a $410 million special charge for these enhanced healthcare benefits and increased its postretirement benefits obligation by $410 million as of September 30, 2020.
Pursuant to the CARES Act, minimum required pension contributions to be made in the calendar year 2020 can be deferred to January 1, 2021, with interest accruing from the original due date to the new payment date. American expects to defer its $130 million 2020 minimum required contributions to January 1, 2021, which American intends to pay or otherwise satisfy on or prior to December 31, 2020.