XML 68 R45.htm IDEA: XBRL DOCUMENT v3.24.0.1
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets and Funded Status
The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and funded status as of December 31, 2023 and 2022:
 Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
 2023202220232022
 (In millions)
Benefit obligation at beginning of period$14,037 $18,910 $906 $1,098 
Service cost2 3 17 16 
Interest cost758 556 55 30 
Actuarial loss (gain) (1), (2)
507 (4,563)92 (167)
Plan amendments (3)
— — 339 — 
Other— — — 3 
Benefit payments(894)(869)(84)(74)
Benefit obligation at end of period$14,410 $14,037 $1,325 $906 
Fair value of plan assets at beginning of period$11,884 $14,691 $133 $167 
Actual return (loss) on plan assets1,368 (1,943)14 (18)
Employer contributions (4)
73 5 70 58 
Benefit payments(894)(869)(84)(74)
Fair value of plan assets at end of period$12,431 $11,884 $133 $133 
Funded status at end of period$(1,979)$(2,153)$(1,192)$(773)
(1)The 2023 and 2022 pension actuarial loss (gain) primarily relates to the change in our weighted average discount rate assumption.
(2)The 2023 and 2022 retiree medical and other postretirement benefits actuarial loss (gain) primarily relates to the change in our weighted average discount rate assumption and, in 2023, the change in health care cost assumptions.
(3)As of September 30, 2023, we remeasured our retiree medical and other postretirement benefits to account for enhanced retirement benefits provided to our mainline pilots pursuant to the new collective bargaining agreement ratified in August 2023. As a result, we increased our postretirement benefits obligation by $339 million, which was included as a component of prior service cost in accumulated other comprehensive loss.
(4)In 2023, we made required contributions of $69 million to our defined benefit pension plans.
Schedule of Amounts Recognized in Consolidated Balance Sheets
Balance Sheet Position
 Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
 2023202220232022
 (In millions)
As of December 31,
Current liability$5 $4 $122 $85 
Noncurrent liability1,974 2,149 1,070 688 
Total liabilities$1,979 $2,153 $1,192 $773 
Schedule of Amounts Recognized in Other Comprehensive Income
Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
2023202220232022
(In millions)
Net actuarial loss (gain)$3,566 $3,613 $(383)$(505)
Prior service cost (benefit)— 18 197 (148)
Total accumulated other comprehensive loss (income), pre-tax
$3,566 $3,631 $(186)$(653)
Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension Benefits
 20232022
 (In millions)
Projected benefit obligation$14,410 $14,037 
Fair value of plan assets12,431 11,884 
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
 2023202220232022
 (In millions)
Accumulated benefit obligation$14,403 $14,030 $— $— 
Accumulated postretirement benefit obligation
— — 1,325 906 
Fair value of plan assets12,431 11,884 133 133 
Components of Net Periodic Benefit Cost (Income)
Net Periodic Benefit Cost (Income)
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 202320222021202320222021
 (In millions)
Defined benefit plans:
Service cost$2 $3 $4 $17 $16 $12 
Interest cost758 556 526 55 30 30 
Expected return on assets(918)(1,138)(1,084)(11)(12)(12)
Special termination benefits— — — — — 139 
Amortization of:
Prior service cost (benefit)18 28 28 (6)(14)(13)
Unrecognized net loss (gain)106 156 212 (34)(30)(24)
Net periodic benefit cost (income)$(34)$(395)$(314)$21 $(10)$132 
Schedule of Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost
The following actuarial assumptions were used to determine our benefit obligations and net periodic benefit cost (income) for the periods presented:
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2023202220232022
Benefit obligations:
Weighted average discount rate5.2%5.6%5.3%5.7%
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 202320222021202320222021
Net periodic benefit cost (income):
Weighted average discount rate5.6%3.0%2.7%5.7%2.8%2.4%
Weighted average expected rate of return on plan assets
8.0%8.0%8.0%8.0%8.0%8.0%
Weighted average health care cost trend rate assumed for next year (1)
N/AN/AN/A6.5%5.8%4.8%
(1)The weighted average health care cost trend rate at December 31, 2023 is assumed to decline gradually to 4.5% by 2033 and remain level thereafter.
Schedule of Expected Future Service Benefit Payments
The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions):
202420252026202720282029-2033
Pension benefits$952 $977 $1,002 $1,023 $1,036 $5,265 
Retiree medical and other postretirement benefits138 144 150 150 148 674 
Schedule of Allocation of Plan Assets The current strategic target asset allocation with the corresponding allowed range is as follows:
Asset Class/Sub-ClassTarget AllocationAllowed Range
Equity61 %
30% - 85%
Public:
U.S. Large19 %
10% - 40%
U.S. Small/Mid5 %
0% - 10%
International Large13 %
5% - 25%
International Small/Mid3 %
0% - 10%
Emerging Markets6 %
0% - 15%
Private Equity15 %
5% - 30%
Fixed Income39 %
15% - 70%
Public U.S. Fixed Income30 %
15% - 60%
Private Income9 %
0% - 20%
Other— %
0% - 5%
Cash Equivalents— %
0% - 20%
Changes in Fair Value Measurements of Level 3 Investments
Changes in fair value measurements of Level 3 investments during the years ended December 31, 2023 and 2022, were as follows (in millions):
20232022
Balance at beginning of year$75 $58 
Actual gain (loss) on plan assets:
Relating to assets still held at the reporting date(9)1 
Purchases20 29 
Sales(2)(9)
Transfers out— (4)
Balance at end of year$84 $75 
American Airlines, Inc.  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets and Funded Status
The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and funded status as of December 31, 2023 and 2022:
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2023202220232022
 (In millions)
Benefit obligation at beginning of period$13,948 $18,791 $906 $1,098 
Service cost2 3 17 16 
Interest cost753 552 55 30 
Actuarial loss (gain) (1), (2)
501 (4,534)92 (167)
Plan amendments (3)
— — 339 — 
Other— — — 3 
Benefit payments(890)(864)(84)(74)
Benefit obligation at end of period$14,314 $13,948 $1,325 $906 
Fair value of plan assets at beginning of period$11,821 $14,605 $133 $167 
Actual return (loss) on plan assets1,356 (1,924)14 (18)
Employer contributions (4)
71 4 70 58 
Benefit payments(890)(864)(84)(74)
Fair value of plan assets at end of period$12,358 $11,821 $133 $133 
Funded status at end of period$(1,956)$(2,127)$(1,192)$(773)
(1)The 2023 and 2022 pension actuarial loss (gain) primarily relates to the change in American’s weighted average discount rate assumption.
(2)The 2023 and 2022 retiree medical and other postretirement benefits actuarial loss (gain) primarily relates to the change in American’s weighted average discount rate assumption and, in 2023, the change in health care cost assumptions.
(3)As of September 30, 2023, American remeasured its retiree medical and other postretirement benefits to account for enhanced retirement benefits provided to its mainline pilots pursuant to the new collective bargaining agreement ratified in August 2023. As a result, American increased its postretirement benefits obligation by $339 million, which was included as a component of prior service cost in accumulated other comprehensive loss.
(4)In 2023, American made required contributions of $67 million to its defined benefit pension plans.
Schedule of Amounts Recognized in Consolidated Balance Sheets
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2023202220232022
 (In millions)
As of December 31,
Current liability$6 $4 $122 $85 
Noncurrent liability1,950 2,123 1,070 688 
Total liabilities$1,956 $2,127 $1,192 $773 
Schedule of Amounts Recognized in Other Comprehensive Income
Pension BenefitsRetiree Medical and 
Other Postretirement Benefits
2023202220232022
(In millions)
Net actuarial loss (gain)$3,561 $3,609 $(382)$(505)
Prior service cost (benefit)— 18 197 (148)
Total accumulated other comprehensive loss (income), pre-tax
$3,561 $3,627 $(185)$(653)
Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension Benefits
 20232022
 (In millions)
Projected benefit obligation$14,314 $13,948 
Fair value of plan assets12,358 11,821 
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2023202220232022
 (In millions)
Accumulated benefit obligation$14,307 $13,941 $— $— 
Accumulated postretirement benefit obligation
— — 1,325 906 
Fair value of plan assets12,358 11,821 133 133 
Components of Net Periodic Benefit Cost (Income)
 Pension BenefitsRetiree Medical and
  Other Postretirement Benefits  
 202320222021202320222021
 (In millions)
Defined benefit plans:
Service cost$2 $3 $3 $17 $16 $12 
Interest cost753 552 523 55 30 30 
Expected return on assets(914)(1,133)(1,078)(11)(12)(12)
Special termination benefits— — — — — 139 
Amortization of:
Prior service cost (benefit)18 28 28 (6)(14)(13)
Unrecognized net loss (gain)106 156 211 (34)(30)(24)
Net periodic benefit cost (income)$(35)$(394)$(313)$21 $(10)$132 
Schedule of Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost
The following actuarial assumptions were used to determine American’s benefit obligations and net periodic benefit cost (income) for the periods presented:
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 2023202220232022
Benefit obligations:
Weighted average discount rate5.2%5.6%5.3%5.7%
 Pension BenefitsRetiree Medical and
Other Postretirement Benefits
 202320222021202320222021
Net periodic benefit cost (income):
Weighted average discount rate5.6%3.0%2.7%5.7%2.8%2.4%
Weighted average expected rate of return on plan assets
8.0%8.0%8.0%8.0%8.0%8.0%
Weighted average health care cost trend rate assumed for next year (1)
N/AN/AN/A6.5%5.8%4.8%
(1)The weighted average health care cost trend rate at December 31, 2023 is assumed to decline gradually to 4.5% by 2033 and remain level thereafter.
Schedule of Expected Future Service Benefit Payments
The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions):
202420252026202720282029-2033
Pension benefits$947 $972 $996 $1,017 $1,030 $5,232 
Retiree medical and other postretirement benefits138 144 150 150 148 674 
Schedule of Allocation of Plan Assets The current strategic target asset allocation with the corresponding allowed range is as follows:
Asset Class/Sub-ClassTarget AllocationAllowed Range
Equity61 %
30% - 85%
Public:
U.S. Large19 %
10% - 40%
U.S. Small/Mid5 %
0% - 10%
International Large13 %
5% - 25%
International Small/Mid3 %
0% - 10%
Emerging Markets6 %
0% - 15%
Private Equity15 %
5% - 30%
Fixed Income39 %
15% - 70%
Public U.S. Fixed Income30 %
15% - 60%
Private Income9 %
0% - 20%
Other— %
0% - 5%
Cash Equivalents— %
0% - 20%
Changes in Fair Value Measurements of Level 3 Investments
Changes in fair value measurements of Level 3 investments during the years ended December 31, 2023 and 2022, were as follows (in millions):
20232022
Balance at beginning of year$75 $58 
Actual gain (loss) on plan assets:
Relating to assets still held at the reporting date(9)1 
Purchases20 29 
Sales(2)(9)
Transfers out— (4)
Balance at end of year$84 $75 
Pension Benefits  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Allocation of Plan Assets
The fair value of our pension plan assets at December 31, 2023 and 2022, by asset category, were as follows (in millions) (1):
 December 31, 2023December 31, 2022
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Equity (2)
$3,182 $— $— $3,182 $3,097 $— $— $3,097 
Fixed income (3)
260 3,238 — 3,498 227 2,917 — 3,144 
Other, net (4)
(6)348 84 426 74 278 75 427 
Measured at NAV (5):
Common collective trusts (6)
— — — 1,244 — — — 1,694 
Private investments (7)
— — — 4,081 — — — 3,522 
Total plan assets$3,436 $3,586 $84 $12,431 $3,398 $3,195 $75 $11,884 
(1)See Note 7 for a description of the levels within the fair value hierarchy.
(2)Equity investments include domestic and international common stock, preferred stock and mutual funds invested in equity securities.
(3)Fixed income investments include corporate, government and U.S. municipal bonds, as well as mutual funds invested in fixed income securities.
(4)Other primarily includes a short-term investment fund, net receivables and payables of the master trust for dividends, interest and amounts due to or from the sale and purchase of securities and cash and cash equivalents.
(5)Includes investments that were measured at NAV per share (or its equivalent) as a practical expedient that have not been classified in the fair value hierarchy.
(6)Common collective trusts include commingled funds primarily invested in equity securities. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred.
(7)Private investments include limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its NAV, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next 10 years. As of December 31, 2023, the pension plan’s master trust has future funding commitments to these limited partnerships of approximately $1.3 billion, most of which are expected to be called over the next five years.
Pension Benefits | American Airlines, Inc.  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Allocation of Plan Assets
The fair value of American’s pension plan assets at December 31, 2023 and 2022, by asset category, were as follows (in millions) (1):
December 31, 2023December 31, 2022
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Equity (2)
$3,134 $— $— $3,134 $3,055 $— $— $3,055 
Fixed income (3)
235 3,238 — 3,473 206 2,917 — 3,123 
Other, net (4)
(6)348 84 426 74 278 75 427 
Measured at NAV (5):
Common collective trusts (6)
— — — 1,244 — — — 1,694 
Private investments (7)
— — — 4,081 — — — 3,522 
Total plan assets$3,363 $3,586 $84 $12,358 $3,335 $3,195 $75 $11,821 
(1)See Note 6 for a description of the levels within the fair value hierarchy.
(2)Equity investments include domestic and international common stock and preferred stock.
(3)Fixed income investments include corporate, government and U.S. municipal bonds, as well as mutual funds invested in fixed income securities.
(4)Other primarily includes a short-term investment fund, net receivables and payables of the master trust for dividends, interest and amounts due to or from the sale and purchase of securities and cash and cash equivalents.
(5)Includes investments that were measured at NAV per share (or its equivalent) as a practical expedient that have not been classified in the fair value hierarchy.
(6)Common collective trusts include commingled funds primarily invested in equity securities. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred.
(7)Private investments include limited partnerships that invest primarily in domestic private equity and private income opportunities. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its NAV, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next 10 years. As of December 31, 2023, the pension plan’s master trust has future funding commitments to these limited partnerships of approximately $1.3 billion, most of which are expected to be called over the next five years.