Retirement Benefits (Tables)
|
12 Months Ended |
Dec. 31, 2015 |
|---|
| Schedule of Changes in Projected Benefit Obligations |
The following table provides a reconciliation of the changes in the
pension and retiree medical and other postretirement benefit
obligations and fair value of assets for the years ended
December 31, 2015 and 2014, and a statement of funded status
as of December 31, 2015 and 2014 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Pension Benefits |
|
|
Retiree Medical and Other
Postretirement Benefits |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
Reconciliation of benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligation at January 1
|
|
$ |
17,594 |
|
|
$ |
14,899 |
|
|
$ |
1,325 |
|
|
$ |
1,385 |
|
|
Service cost
|
|
|
2 |
|
|
|
3 |
|
|
|
3 |
|
|
|
1 |
|
|
Interest cost
|
|
|
737 |
|
|
|
746 |
|
|
|
50 |
|
|
|
61 |
|
|
Actuarial (gain) loss
|
|
|
(1,159 |
) |
|
|
2,573 |
|
|
|
(177 |
) |
|
|
(39 |
) |
|
Plan amendments
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
Settlements
|
|
|
(3 |
) |
|
|
(20 |
) |
|
|
— |
|
|
|
— |
|
|
Benefit payments
|
|
|
(776 |
) |
|
|
(607 |
) |
|
|
(94 |
) |
|
|
(112 |
) |
|
Other
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligation at December 31
|
|
$ |
16,395 |
|
|
$ |
17,594 |
|
|
$ |
1,131 |
|
|
$ |
1,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Changes in Fair Value of Plan Assets |
|
Reconciliation of fair
value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets
at January 1
|
|
$ |
10,986 |
|
|
$ |
10,057 |
|
|
$ |
244 |
|
|
$ |
239 |
|
|
Actual return on plan
assets
|
|
|
(506 |
) |
|
|
746 |
|
|
|
(10 |
) |
|
|
11 |
|
|
Employer
contributions
|
|
|
6 |
|
|
|
810 |
|
|
|
89 |
|
|
|
106 |
|
|
Settlements
|
|
|
(3 |
) |
|
|
(20 |
) |
|
|
— |
|
|
|
— |
|
|
Benefit
payments
|
|
|
(776 |
) |
|
|
(607 |
) |
|
|
(94 |
) |
|
|
(112 |
) |
|
Other (1)
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets
at December 31
|
|
|
9,707 |
|
|
|
10,986 |
|
|
|
253 |
|
|
|
244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded status at
December 31
|
|
$ |
(6,688 |
) |
|
$ |
(6,608 |
) |
|
$ |
(878 |
) |
|
$ |
(1,081 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Amounts Recognized in Consolidated Balance Sheets |
|
Amounts recognized in
the consolidated balance sheets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liability
|
|
$ |
7 |
|
|
$ |
10 |
|
|
$ |
109 |
|
|
$ |
117 |
|
|
Noncurrent liability
(2)
|
|
|
6,681 |
|
|
|
6,598 |
|
|
|
769 |
|
|
|
964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
6,688 |
|
|
$ |
6,608 |
|
|
$ |
878 |
|
|
$ |
1,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
At December 31, 2015, certain trust assets totaling
approximately $24 million, were added to the retiree medical plan
asset values that were previously offset against the benefit
obligation.
|
| (2) |
The 2015 noncurrent liability does not include $17 million
of other postretirement benefits or $1 million of prior service
costs. The 2014 noncurrent liability does not include $18 million
of other postretirement benefits or $2 million of prior service
costs.
|
|
| Schedule of Amounts Recognized in Other Comprehensive Income |
|
Amounts recognized in
other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net actuarial loss
(gain)
|
|
$ |
5,047 |
|
|
$ |
4,961 |
|
|
$ |
(339 |
) |
|
$ |
(199 |
) |
|
Prior service cost
(benefit) (2)
|
|
|
216 |
|
|
|
245 |
|
|
|
(1,084 |
) |
|
|
(1,326 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,263 |
|
|
$ |
5,206 |
|
|
$ |
(1,423 |
) |
|
$ |
(1,525 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
At December 31, 2015, certain trust assets totaling
approximately $24 million, were added to the retiree medical plan
asset values that were previously offset against the benefit
obligation.
|
| (2) |
The 2015 noncurrent liability does not include $17 million
of other postretirement benefits or $1 million of prior service
costs. The 2014 noncurrent liability does not include $18 million
of other postretirement benefits or $2 million of prior service
costs.
|
|
| Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Pension
Benefits |
|
|
Retiree Medical
and
Other Postretirement Benefits |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
For plans with
accumulated benefit obligations exceeding the fair value of plan
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected benefit
obligation (PBO)
|
|
$ |
16,369 |
|
|
$ |
17,560 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Accumulated benefit
obligation (ABO)
|
|
|
16,357 |
|
|
|
17,548 |
|
|
|
— |
|
|
|
— |
|
|
Accumulated
postretirement benefit obligation (APBO)
|
|
|
— |
|
|
|
— |
|
|
|
1,129 |
|
|
|
1,324 |
|
|
Fair value of plan
assets
|
|
|
9,677 |
|
|
|
10,950 |
|
|
|
253 |
|
|
|
244 |
|
|
ABO less fair value of
plan assets
|
|
|
6,680 |
|
|
|
6,598 |
|
|
|
— |
|
|
|
— |
|
|
| Components of Net Periodic Benefit Cost |
The following tables provide the components of net periodic benefit
cost (income) for the years ended December 31, 2015, 2014 and
2013 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Pension Benefits |
|
|
Retiree Medical and
Other Postretirement Benefits |
|
| |
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
Defined benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost
|
|
$ |
2 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
Interest cost
|
|
|
737 |
|
|
|
746 |
|
|
|
654 |
|
|
|
50 |
|
|
|
61 |
|
|
|
50 |
|
|
Expected return on assets
|
|
|
(851 |
) |
|
|
(786 |
) |
|
|
(720 |
) |
|
|
(19 |
) |
|
|
(19 |
) |
|
|
(16 |
) |
|
Curtailments
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Settlements
|
|
|
1 |
|
|
|
4 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Amortization of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior service cost (benefit) (1)
|
|
|
28 |
|
|
|
28 |
|
|
|
28 |
|
|
|
(243 |
) |
|
|
(244 |
) |
|
|
(251 |
) |
|
Unrecognized net loss (gain)
|
|
|
112 |
|
|
|
43 |
|
|
|
90 |
|
|
|
(9 |
) |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net periodic benefit cost (income) for defined benefit plans
|
|
|
29 |
|
|
|
38 |
|
|
|
56 |
|
|
|
(218 |
) |
|
|
(209 |
) |
|
|
(226 |
) |
|
Defined contribution plans
|
|
|
662 |
|
|
|
546 |
|
|
|
328 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
691 |
|
|
$ |
584 |
|
|
$ |
384 |
|
|
$ |
(218 |
) |
|
$ |
(209 |
) |
|
$ |
(226 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The 2015 prior service cost does not
include amortization of $3 million related to other postretirement
benefits. The 2014 prior service cost does not include amortization
of $14 million related to other postretirement benefits. |
|
| Schedule of Assumption Used to Determine Benefit Obligations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Pension Benefits |
|
|
Retiree Medical and
Other Postretirement Benefits |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
Weighted-average assumptions used to determine benefit
obligations as of December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
|
4.70 |
% |
|
|
4.30 |
% |
|
|
4.42 |
% |
|
|
4.00 |
% |
|
|
|
|
|
|
Weighted-average assumptions used to determine net periodic
benefit cost for the years ended December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate 1/1 – 12/31
|
|
|
4.30 |
% |
|
|
5.10 |
% |
|
|
4.00 |
% |
|
|
4.74 |
% |
|
Expected return on plan assets
|
|
|
8.00 |
% |
|
|
8.00 |
% |
|
|
8.00 |
% |
|
|
8.00 |
% |
|
| Schedule of Allocation of Plan Assets |
The current strategic target asset allocation is as follows:
|
|
|
|
|
|
Asset Class/Sub-Class
|
|
Allowed Range |
|
|
Equity
|
|
|
62% - 72% |
|
|
Public:
|
|
|
|
|
|
U.S. Value
|
|
|
20% - 35% |
|
|
International Value
|
|
|
14% - 24% |
|
|
Emerging Markets
|
|
|
5% - 11% |
|
|
Alternative Investments
|
|
|
0% - 18% |
|
|
Fixed Income
|
|
|
28% - 38% |
|
|
U.S. Long Duration
|
|
|
26% - 36% |
|
|
Emerging Markets
|
|
|
0% - 4% |
|
|
Other
|
|
|
0% - 5% |
|
|
Cash Equivalents
|
|
|
0% - 5% |
|
|
| Changes in Fair Value Measurements of Level 3 Investments |
Changes in fair value measurements of Level 3 investments during
the year ended December 31, 2015, were as follows (in
millions):
|
|
|
|
|
|
|
|
|
| |
|
Private Equity
Partnerships |
|
|
Insurance Group
Annuity
Contracts |
|
|
Beginning balance at December 31, 2014
|
|
$ |
818 |
|
|
$ |
2 |
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
Relating to assets still held at the reporting date
|
|
|
(105 |
) |
|
|
— |
|
|
Relating to assets sold during the period
|
|
|
115 |
|
|
|
— |
|
|
Purchases
|
|
|
145 |
|
|
|
— |
|
|
Sales
|
|
|
(251 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Ending balance at December 31, 2015
|
|
$ |
722 |
|
|
$ |
2 |
|
|
|
|
|
|
|
|
|
|
Changes in fair value measurements of Level 3 investments during
the year ended December 31, 2014, were as follows (in
millions):
|
|
|
|
|
|
|
|
|
| |
|
Private Equity
Partnerships |
|
|
Insurance Group
Annuity
Contracts |
|
|
Beginning balance at December 31, 2013
|
|
$ |
848 |
|
|
$ |
2 |
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
Relating to assets still held at the reporting date
|
|
|
(38 |
) |
|
|
— |
|
|
Relating to assets sold during the period
|
|
|
158 |
|
|
|
— |
|
|
Purchases
|
|
|
148 |
|
|
|
— |
|
|
Sales
|
|
|
(298 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Ending balance at December 31, 2014
|
|
$ |
818 |
|
|
$ |
2 |
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Health Care Cost Trend Rates |
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
|
Assumed health care trend rates at December 31
|
|
|
|
|
|
|
|
Health care cost trend rate assumed for next year
|
|
|
5.21 |
% |
|
|
5.25 |
% |
|
Rate to which the cost trend rate is assumed to decline (the
ultimate trend rate)
|
|
|
4.56 |
% |
|
|
4.55 |
% |
|
Year that the rate reaches the ultimate trend rate
|
|
|
2024 |
|
|
|
2023 |
|
|
| Schedule of One Percentage Point Change in Assumed Health Care Cost Trend Rates |
A one percentage point change in the assumed health care cost trend
rates would have the following effects (in millions):
|
|
|
|
|
|
|
|
|
| |
|
1% Increase |
|
|
1% Decrease |
|
|
Impact on 2015 service and interest cost
|
|
$ |
3 |
|
|
$ |
(3 |
) |
|
Impact on other postretirement benefits obligation as of
December 31, 2015
|
|
|
61 |
|
|
|
(60 |
) |
|
| Schedule of Expected Future Service Benefit Payments |
The following benefit payments, which reflect expected future
service as appropriate, are expected to be paid (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2016 |
|
|
2017 |
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
|
2021-2025 |
|
|
Pension
|
|
$ |
662 |
|
|
$ |
690 |
|
|
$ |
725 |
|
|
$ |
764 |
|
|
$ |
805 |
|
|
$ |
4,642 |
|
|
Retiree medical and other postretirement benefits
|
|
|
109 |
|
|
|
104 |
|
|
|
99 |
|
|
|
90 |
|
|
|
84 |
|
|
|
353 |
|
|
| Pension Benefits [Member] |
|
| Schedule of Allocation of Plan Assets |
The fair value of the Company’s pension plan assets at
December 31, 2015 and 2014, by asset category, are as follows
(in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements as of
December 31, 2015 |
|
| |
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) |
|
|
Significant
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Total |
|
|
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ |
287 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
287 |
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International markets (a), (b)
|
|
|
2,873 |
|
|
|
— |
|
|
|
— |
|
|
|
2,873 |
|
|
Large-cap companies (b)
|
|
|
1,999 |
|
|
|
— |
|
|
|
— |
|
|
|
1,999 |
|
|
Mid-cap companies (b)
|
|
|
361 |
|
|
|
— |
|
|
|
— |
|
|
|
361 |
|
|
Small-cap companies (b)
|
|
|
18 |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
Mutual funds (c)
|
|
|
47 |
|
|
|
— |
|
|
|
— |
|
|
|
47 |
|
|
Fixed income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds (d)
|
|
|
— |
|
|
|
2,204 |
|
|
|
— |
|
|
|
2,204 |
|
|
Government Securities (e)
|
|
|
— |
|
|
|
917 |
|
|
|
— |
|
|
|
917 |
|
|
U.S. municipal securities
|
|
|
— |
|
|
|
48 |
|
|
|
— |
|
|
|
48 |
|
|
Alternative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity partnerships (f)
|
|
|
— |
|
|
|
— |
|
|
|
722 |
|
|
|
722 |
|
|
Common/collective trusts and 103-12 Investment Trust (g)
|
|
|
— |
|
|
|
219 |
|
|
|
— |
|
|
|
219 |
|
|
Insurance group annuity contracts
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
Dividend and interest receivable
|
|
|
50 |
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
|
Due to/from brokers for sale of securities – net
|
|
|
23 |
|
|
|
— |
|
|
|
— |
|
|
|
23 |
|
|
Other assets – net
|
|
|
8 |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
Other liabilities – net
|
|
|
(71 |
) |
|
|
— |
|
|
|
— |
|
|
|
(71 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
5,595 |
|
|
$ |
3,388 |
|
|
$ |
724 |
|
|
$ |
9,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| a) |
Holdings are diversified as follows:
16% United Kingdom, 12% Japan, 10% France, 7% Switzerland, 7%
Netherlands, 6% Republic of Korea, 11% of other emerging markets
and the remaining 31% with no concentration greater than 5% in any
one country. |
| b) |
There are no significant
concentrations of holdings by company or industry. |
| c) |
Investment includes mutual funds
invested 40% in equity securities of large-cap, mid-cap and
small-cap U.S. companies, 35% in U.S. treasuries and corporate
bonds and 25% in equity securities of international companies. |
| d) |
Includes approximately 74%
investments in corporate debt with a Standard and Poor’s
(S&P) rating lower than A and 26% investments in corporate debt
with an S&P rating A or higher. Holdings include 82% U.S.
companies, 16% international companies and 2% emerging market
companies. |
| e) |
Includes approximately 75%
investments in U.S. domestic government securities and 25% in
emerging market government securities. There are no significant
foreign currency risks within this classification. |
| f) |
Includes limited partnerships that
invest primarily in U.S. (89%) and European (11%) buyout
opportunities of a range of privately held companies. The pension
plan’s master trust does not have the right to redeem its
limited partnership investment at its net asset value, 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 one to ten years. Additionally,
the pension plan’s master trust has future funding
commitments of approximately $428 million over the next ten
years. |
| g) |
Investment includes 73% in an
emerging market 103-12 Investment Trust with investments in
emerging country equity securities, 14% in Canadian segregated
balanced value, income growth and diversified pooled funds and 13%
in a common/collective trust investing in securities of smaller
companies located outside the U.S., including developing markets.
Requests for withdrawals must meet specific requirements with
advance notice of redemption preferred. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements as of
December 31, 2014 |
|
| |
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) |
|
|
Significant
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Total |
|
|
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ |
332 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
332 |
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International markets (a), (b)
|
|
|
2,943 |
|
|
|
— |
|
|
|
— |
|
|
|
2,943 |
|
|
Large-cap companies (b)
|
|
|
2,488 |
|
|
|
— |
|
|
|
— |
|
|
|
2,488 |
|
|
Mid-cap companies (b)
|
|
|
362 |
|
|
|
— |
|
|
|
— |
|
|
|
362 |
|
|
Small-cap companies (b)
|
|
|
21 |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
Mutual funds (c)
|
|
|
51 |
|
|
|
— |
|
|
|
— |
|
|
|
51 |
|
|
Fixed income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds (d)
|
|
|
— |
|
|
|
2,384 |
|
|
|
— |
|
|
|
2,384 |
|
|
Government Securities (e)
|
|
|
— |
|
|
|
1,184 |
|
|
|
— |
|
|
|
1,184 |
|
|
U.S. municipal securities
|
|
|
— |
|
|
|
65 |
|
|
|
— |
|
|
|
65 |
|
|
Alternative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity partnerships (f)
|
|
|
— |
|
|
|
— |
|
|
|
818 |
|
|
|
818 |
|
|
Common/collective trusts and 103-12 Investment Trust (g)
|
|
|
— |
|
|
|
240 |
|
|
|
— |
|
|
|
240 |
|
|
Insurance group annuity contracts
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
Dividend and interest receivable
|
|
|
52 |
|
|
|
— |
|
|
|
— |
|
|
|
52 |
|
|
Due to/from brokers for sale of securities – net
|
|
|
39 |
|
|
|
— |
|
|
|
— |
|
|
|
39 |
|
|
Other assets – net
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
6,293 |
|
|
$ |
3,873 |
|
|
$ |
820 |
|
|
$ |
10,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| a) |
Holdings are diversified as follows:
18% United Kingdom, 11% Japan, 10% France, 7% Switzerland, 7%
Netherlands, 6% Republic of Korea, 13% of other emerging markets
and the remaining 28% with no concentration greater than 5% in any
one country. |
| b) |
There are no significant
concentrations of holdings by company or industry. |
| c) |
Investment includes mutual funds
invested 46% in equity securities of large-cap, mid-cap and
small-cap U.S. companies, 35% in U.S. treasuries and corporate
bonds and 18% in equity securities of international companies. |
| d) |
Includes approximately 74%
investments in corporate debt with an S&P rating lower than A
and 26% investments in corporate debt with an S&P rating A or
higher. Holdings include 81% U.S. companies, 16% international
companies and 3% emerging market companies. |
| e) |
Includes approximately 73%
investments in U.S. domestic government securities and 27% in
emerging market government securities. There are no significant
foreign currency risks within this classification. |
| f) |
Includes limited partnerships that
invest primarily in U.S. (91%) and European (9%) buyout
opportunities of a range of privately held companies. The pension
plan’s master trust does not have the right to redeem its
limited partnership investment at its net asset value, 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 one to ten years. Additionally,
the pension plan’s master trust has future funding
commitments of approximately $403 million over the next ten
years. |
| g) |
Investment includes 74% in an
emerging market 103-12 Investment Trust with investments in
emerging country equity securities, 14% in Canadian segregated
balanced value, income growth and diversified pooled funds and 12%
in a common/collective trust investing in securities of smaller
companies located outside the U.S., including developing markets.
Requests for withdrawals must meet specific requirements with
advance notice of redemption preferred. |
|
| Other Postretirement Benefit Plans [Member] |
|
| Schedule of Allocation of Plan Assets |
The fair value of the Company’s other postretirement benefit
plan assets at December 31, 2015 by asset category, were as
follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements as of
December 31, 2015 |
|
| |
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) |
|
|
Significant
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Total |
|
|
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market fund
|
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4 |
|
|
Mutual funds – Institutional Class
|
|
|
19 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
19 |
|
|
Mutual funds – AMR Class
|
|
|
— |
|
|
|
230 |
|
|
|
— |
|
|
|
230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
23 |
|
|
$ |
230 |
|
|
$ |
— |
|
|
$ |
253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The fair value of the Company’s other postretirement benefit
plan assets at December 31, 2014 by asset category, were as
follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements as of
December 31, 2014 |
|
| |
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) |
|
|
Significant
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Total |
|
|
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market fund
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2 |
|
|
Mutual funds – AMR Class
|
|
|
— |
|
|
|
242 |
|
|
|
— |
|
|
|
242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
2 |
|
|
$ |
242 |
|
|
$ |
— |
|
|
$ |
244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| American Airlines, Inc. [Member] |
|
| Schedule of Changes in Projected Benefit Obligations |
The following table provides a reconciliation of the changes in the
pension and retiree medical and other postretirement benefit
obligations and fair value of assets for the years ended
December 31, 2015 and 2014, and a statement of funded status
as of December 31, 2015 and 2014 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Pension Benefits |
|
|
Retiree Medical and Other
Postretirement Benefits |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
Reconciliation of benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligation at January 1
|
|
$ |
17,504 |
|
|
$ |
14,826 |
|
|
$ |
1,324 |
|
|
$ |
1,383 |
|
|
Service cost
|
|
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
1 |
|
|
Interest cost
|
|
|
733 |
|
|
|
742 |
|
|
|
50 |
|
|
|
61 |
|
|
Actuarial (gain) loss
|
|
|
(1,153 |
) |
|
|
2,559 |
|
|
|
(178 |
) |
|
|
(39 |
) |
|
Plan amendments
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
Settlements
|
|
|
(3 |
) |
|
|
(20 |
) |
|
|
— |
|
|
|
— |
|
|
Benefit payments
|
|
|
(773 |
) |
|
|
(605 |
) |
|
|
(94 |
) |
|
|
(111 |
) |
|
Other
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligation at December 31
|
|
$ |
16,310 |
|
|
$ |
17,504 |
|
|
$ |
1,129 |
|
|
$ |
1,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Changes in Fair Value of Plan Assets |
|
Reconciliation of fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets at January 1
|
|
$ |
10,935 |
|
|
$ |
10,009 |
|
|
$ |
244 |
|
|
$ |
239 |
|
|
Actual return on plan assets
|
|
|
(505 |
) |
|
|
742 |
|
|
|
(10 |
) |
|
|
11 |
|
|
Employer contributions
|
|
|
6 |
|
|
|
809 |
|
|
|
89 |
|
|
|
105 |
|
|
Settlements
|
|
|
(3 |
) |
|
|
(20 |
) |
|
|
— |
|
|
|
— |
|
|
Benefit payments
|
|
|
(773 |
) |
|
|
(605 |
) |
|
|
(94 |
) |
|
|
(111 |
) |
|
Other (1)
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets at December 31
|
|
|
9,660 |
|
|
|
10,935 |
|
|
|
253 |
|
|
|
244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded status at December 31
|
|
$ |
(6,650 |
) |
|
$ |
(6,569 |
) |
|
$ |
(876 |
) |
|
$ |
(1,080 |
) |
| (1) |
At December 31, 2015, certain trust
assets totaling approximately $24 million, were added to the
retiree medical plan asset values that were previously offset
against the benefit obligation. |
|
| Schedule of Amounts Recognized in Consolidated Balance Sheets |
|
Amounts recognized in the consolidated balance sheets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liability
|
|
$ |
7 |
|
|
$ |
10 |
|
|
$ |
109 |
|
|
$ |
117 |
|
|
Noncurrent liability (2)
|
|
|
6,643 |
|
|
|
6,559 |
|
|
|
767 |
|
|
|
963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
6,650 |
|
|
$ |
6,569 |
|
|
$ |
876 |
|
|
$ |
1,080 |
|
| (2) |
The 2015 noncurrent liability does
not include $17 million of other postretirement benefits or $1
million of prior service costs. The 2014 noncurrent liability does
not include $18 million of other postretirement benefits or $2
million of prior service costs. |
|
| Schedule of Amounts Recognized in Other Comprehensive Income |
|
|
|
|
|
Amounts recognized in other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net actuarial loss (gain)
|
|
$ |
5,036 |
|
|
$ |
4,949 |
|
|
$ |
(339 |
) |
|
$ |
(199 |
) |
|
Prior service cost (benefit) (2)
|
|
|
216 |
|
|
|
245 |
|
|
|
(1,084 |
) |
|
|
(1,326 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,252 |
|
|
$ |
5,194 |
|
|
$ |
(1,423 |
) |
|
$ |
(1,525 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (2) |
The 2015 noncurrent liability does
not include $17 million of other postretirement benefits or $1
million of prior service costs. The 2014 noncurrent liability does
not include $18 million of other postretirement benefits or $2
million of prior service costs. |
|
| Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Pension Benefits |
|
|
Retiree Medical and Other
Postretirement Benefits |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
For plans with accumulated benefit obligations exceeding the
fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected benefit obligation (PBO)
|
|
$ |
16,283 |
|
|
$ |
17,471 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Accumulated benefit obligation (ABO)
|
|
|
16,272 |
|
|
|
17,461 |
|
|
|
— |
|
|
|
— |
|
|
Accumulated postretirement benefit obligation (APBO)
|
|
|
— |
|
|
|
— |
|
|
|
1,129 |
|
|
|
1,324 |
|
|
Fair value of plan assets
|
|
|
9,630 |
|
|
|
10,899 |
|
|
|
253 |
|
|
|
244 |
|
|
ABO less fair value of plan assets
|
|
|
6,642 |
|
|
|
6,562 |
|
|
|
— |
|
|
|
— |
|
|
| Components of Net Periodic Benefit Cost |
The following tables provide the components of net periodic benefit
cost (income) for the years ended December 31, 2015, 2014 and
2013 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Pension Benefits |
|
|
Retiree Medical and
Other Postretirement Benefits |
|
| |
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
Defined benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
Interest cost
|
|
|
733 |
|
|
|
742 |
|
|
|
654 |
|
|
|
50 |
|
|
|
61 |
|
|
|
50 |
|
|
Expected return on assets
|
|
|
(848 |
) |
|
|
(783 |
) |
|
|
(720 |
) |
|
|
(19 |
) |
|
|
(19 |
) |
|
|
(16 |
) |
|
Curtailments
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Settlements
|
|
|
1 |
|
|
|
4 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Amortization of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior service cost (benefit) (1)
|
|
|
28 |
|
|
|
28 |
|
|
|
28 |
|
|
|
(243 |
) |
|
|
(244 |
) |
|
|
(251 |
) |
|
Unrecognized net loss (gain)
|
|
|
111 |
|
|
|
43 |
|
|
|
90 |
|
|
|
(9 |
) |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net periodic benefit cost (income) for defined benefit plans
|
|
|
26 |
|
|
|
36 |
|
|
|
56 |
|
|
|
(218 |
) |
|
|
(209 |
) |
|
|
(226 |
) |
|
Defined contribution plans
|
|
|
657 |
|
|
|
527 |
|
|
|
311 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
683 |
|
|
$ |
563 |
|
|
$ |
367 |
|
|
$ |
(218 |
) |
|
$ |
(209 |
) |
|
$ |
(226 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The 2015 prior service cost does not
include amortization of $3 million related to other postretirement
benefits. The 2014 prior service cost does not include amortization
of $14 million related to other postretirement benefits. |
|
| Schedule of Assumption Used to Determine Benefit Obligations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Pension Benefits |
|
|
Retiree Medical and
Other Postretirement Benefits |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
Weighted-average assumptions used to determine benefit
obligations as of December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
|
4.70 |
% |
|
|
4.30 |
% |
|
|
4.42 |
% |
|
|
4.00 |
% |
|
|
|
|
|
|
Weighted-average assumptions used to determine net periodic
benefit cost for the years ended December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate 1/1 – 12/31
|
|
|
4.30 |
% |
|
|
5.10 |
% |
|
|
4.00 |
% |
|
|
4.74 |
% |
|
Expected return on plan assets
|
|
|
8.00 |
% |
|
|
8.00 |
% |
|
|
8.00 |
% |
|
|
8.00 |
% |
|
| Schedule of Allocation of Plan Assets |
The current strategic target asset allocation is as follows:
|
|
|
|
|
|
Asset Class/Sub-Class
|
|
Allowed Range |
|
|
Equity
|
|
|
62% - 72% |
|
|
Public:
|
|
|
|
|
|
U.S. Value
|
|
|
20% - 35% |
|
|
International Value
|
|
|
14% - 24% |
|
|
Emerging Markets
|
|
|
5% - 11% |
|
|
Alternative Investments
|
|
|
0% - 18% |
|
|
Fixed Income
|
|
|
28% - 38% |
|
|
U.S. Long Duration
|
|
|
26% - 36% |
|
|
Emerging Markets
|
|
|
0% - 4% |
|
|
Other
|
|
|
0% - 5% |
|
|
Cash Equivalents
|
|
|
0% - 5% |
|
|
| Changes in Fair Value Measurements of Level 3 Investments |
Changes in fair value measurements of Level 3 investments during
the year ended December 31, 2015, were as follows (in
millions):
|
|
|
|
|
|
|
|
|
| |
|
Private Equity
Partnerships |
|
|
Insurance Group
Annuity
Contracts |
|
|
Beginning balance at December 31, 2014
|
|
$ |
818 |
|
|
$ |
2 |
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
Relating to assets still held at the reporting date
|
|
|
(105 |
) |
|
|
— |
|
|
Relating to assets sold during the period
|
|
|
115 |
|
|
|
— |
|
|
Purchases
|
|
|
145 |
|
|
|
— |
|
|
Sales
|
|
|
(251 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Ending balance at December 31, 2015
|
|
$ |
722 |
|
|
$ |
2 |
|
|
|
|
|
|
|
|
|
|
Changes in fair value measurements of Level 3 investments during
the year ended December 31, 2014, were as follows (in
millions):
|
|
|
|
|
|
|
|
|
| |
|
Private Equity
Partnerships |
|
|
Insurance Group
Annuity
Contracts |
|
|
Beginning balance at December 31, 2013
|
|
$ |
848 |
|
|
$ |
2 |
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
Relating to assets still held at the reporting date
|
|
|
(38 |
) |
|
|
— |
|
|
Relating to assets sold during the period
|
|
|
158 |
|
|
|
— |
|
|
Purchases
|
|
|
148 |
|
|
|
— |
|
|
Sales
|
|
|
(298 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Ending balance at December 31, 2014
|
|
$ |
818 |
|
|
$ |
2 |
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Health Care Cost Trend Rates |
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2014 |
|
|
Assumed health care trend rates at December 31
|
|
|
|
|
|
|
|
Health care cost trend rate assumed for next year
|
|
|
5.21 |
% |
|
|
5.25 |
% |
|
Rate to which the cost trend rate is assumed to decline (the
ultimate trend rate)
|
|
|
4.56 |
% |
|
|
4.55 |
% |
|
Year that the rate reaches the ultimate trend rate
|
|
|
2024 |
|
|
|
2023 |
|
|
| Schedule of One Percentage Point Change in Assumed Health Care Cost Trend Rates |
A one percentage point change in the assumed health care cost trend
rates would have the following effects (in millions):
|
|
|
|
|
|
|
|
|
| |
|
1% Increase |
|
|
1% Decrease |
|
|
Impact on 2015 service and interest cost
|
|
$ |
3 |
|
|
$ |
(3 |
) |
|
Impact on other postretirement benefits obligation as of
December 31, 2015
|
|
|
61 |
|
|
|
(60 |
) |
|
| Schedule of Expected Future Service Benefit Payments |
The following benefit payments, which reflect expected future
service as appropriate, are expected to be paid (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2016 |
|
|
2017 |
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
|
2021-2025 |
|
|
Pension
|
|
$ |
660 |
|
|
$ |
687 |
|
|
$ |
722 |
|
|
$ |
761 |
|
|
$ |
802 |
|
|
$ |
4,621 |
|
|
Retiree medical and other postretirement benefits
|
|
|
109 |
|
|
|
104 |
|
|
|
98 |
|
|
|
90 |
|
|
|
84 |
|
|
|
353 |
|
|
| American Airlines, Inc. [Member] | Pension Benefits [Member] |
|
| Schedule of Allocation of Plan Assets |
The fair value of American’s pension plan assets at
December 31, 2015 and 2014, by asset category are as follows
(in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements as of
December 31, 2015 |
|
| |
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) |
|
|
Significant
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Total |
|
|
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ |
287 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
287 |
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International markets (a), (b)
|
|
|
2,873 |
|
|
|
— |
|
|
|
— |
|
|
|
2,873 |
|
|
Large-cap companies (b)
|
|
|
1,999 |
|
|
|
— |
|
|
|
— |
|
|
|
1,999 |
|
|
Mid-cap companies (b)
|
|
|
361 |
|
|
|
— |
|
|
|
— |
|
|
|
361 |
|
|
Small-cap companies (b)
|
|
|
18 |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
Fixed income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds (c)
|
|
|
— |
|
|
|
2,204 |
|
|
|
— |
|
|
|
2,204 |
|
|
Government Securities (d)
|
|
|
— |
|
|
|
917 |
|
|
|
— |
|
|
|
917 |
|
|
U.S. municipal securities
|
|
|
— |
|
|
|
48 |
|
|
|
— |
|
|
|
48 |
|
|
Alternative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity partnerships (e)
|
|
|
— |
|
|
|
— |
|
|
|
722 |
|
|
|
722 |
|
|
Common/collective trusts and 103-12 Investment Trust (f)
|
|
|
— |
|
|
|
219 |
|
|
|
— |
|
|
|
219 |
|
|
Insurance group annuity contracts
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
Dividend and interest receivable
|
|
|
50 |
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
|
Due to/from brokers for sale of securities – net
|
|
|
23 |
|
|
|
— |
|
|
|
— |
|
|
|
23 |
|
|
Other assets – net
|
|
|
8 |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
Other liabilities – net
|
|
|
(71 |
) |
|
|
— |
|
|
|
— |
|
|
|
(71 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
5,548 |
|
|
$ |
3,388 |
|
|
$ |
724 |
|
|
$ |
9,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| a) |
Holdings are diversified as follows:
16% United Kingdom, 12% Japan, 10% France, 7% Switzerland, 7%
Netherlands, 6% Republic of Korea, 11% of other emerging markets
and the remaining 31% with no concentration greater than 5% in any
one country. |
| b) |
There are no significant
concentrations of holdings by company or industry. |
| c) |
Includes approximately 74%
investments in corporate debt with a Standard and Poor’s
(S&P) rating lower than A and 26% investments in corporate debt
with an S&P rating A or higher. Holdings include 82% U.S.
companies, 16% international companies and 2% emerging market
companies. |
| d) |
Includes approximately 75%
investments in U.S. domestic government securities and 25% in
emerging market government securities. There are no significant
foreign currency risks within this classification. |
| e) |
Includes limited partnerships that
invest primarily in U.S. (89%) and European (11%) buyout
opportunities of a range of privately held companies. The pension
plan’s master trust does not have the right to redeem its
limited partnership investment at its net asset value, 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 one to ten years. Additionally,
the pension plan’s master trust has future funding
commitments of approximately $428 million over the next ten
years. |
| f) |
Investment includes 73% in an
emerging market 103-12 Investment Trust with investments in
emerging country equity securities, 14% in Canadian segregated
balanced value, income growth and diversified pooled funds and 13%
in a common/collective trust investing in securities of smaller
companies located outside the U.S., including developing markets.
Requests for withdrawals must meet specific requirements with
advance notice of redemption preferred. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements as of
December 31, 2014 |
|
| |
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) |
|
|
Significant
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Total |
|
|
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ |
332 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
332 |
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International markets (a), (b)
|
|
|
2,943 |
|
|
|
— |
|
|
|
— |
|
|
|
2,943 |
|
|
Large-cap companies (b)
|
|
|
2,488 |
|
|
|
— |
|
|
|
— |
|
|
|
2,488 |
|
|
Mid-cap companies (b)
|
|
|
362 |
|
|
|
— |
|
|
|
— |
|
|
|
362 |
|
|
Small-cap companies (b)
|
|
|
21 |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
Fixed income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds (c)
|
|
|
— |
|
|
|
2,384 |
|
|
|
— |
|
|
|
2,384 |
|
|
Government Securities (d)
|
|
|
— |
|
|
|
1,184 |
|
|
|
— |
|
|
|
1,184 |
|
|
U.S. municipal securities
|
|
|
— |
|
|
|
65 |
|
|
|
— |
|
|
|
65 |
|
|
Alternative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity partnerships (e)
|
|
|
— |
|
|
|
— |
|
|
|
818 |
|
|
|
818 |
|
|
Common/collective trusts and 103-12
Investment Trust (f)
|
|
|
— |
|
|
|
240 |
|
|
|
— |
|
|
|
240 |
|
|
Insurance group annuity contracts
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
Dividend and interest receivable
|
|
|
52 |
|
|
|
— |
|
|
|
— |
|
|
|
52 |
|
|
Due to/from brokers for sale of securities – net
|
|
|
39 |
|
|
|
— |
|
|
|
— |
|
|
|
39 |
|
|
Other assets – net
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
6,242 |
|
|
$ |
3,873 |
|
|
$ |
820 |
|
|
$ |
10,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| a) |
Holdings are diversified as follows:
18% United Kingdom, 11% Japan, 10% France, 7% Switzerland, 7%
Netherlands, 6% Republic of Korea, 13% of other emerging markets
and the remaining 28% with no concentration greater than 5% in any
one country. |
| b) |
There are no significant
concentrations of holdings by company or industry. |
| c) |
Includes approximately 74%
investments in corporate debt with an S&P rating lower than A
and 26% investments in corporate debt with an S&P rating A or
higher. Holdings include 81% U.S. companies, 16% international
companies and 3% emerging market companies. |
| d) |
Includes approximately 73%
investments in U.S. domestic government securities and 27% in
emerging market government securities. There are no significant
foreign currency risks within this classification. |
| e) |
Includes limited partnerships that
invest primarily in U.S. (91%) and European (9%) buyout
opportunities of a range of privately held companies. The pension
plan’s master trust does not have the right to redeem its
limited partnership investment at its net asset value, 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 one to ten years. Additionally,
the pension plan’s master trust has future funding
commitments of approximately $403 million over the next ten
years. |
| f) |
Investment includes 74% in an
emerging market 103-12 Investment Trust with investments in
emerging country equity securities, 14% in Canadian segregated
balanced value, income growth and diversified pooled funds and 12%
in a common/collective trust investing in securities of smaller
companies located outside the U.S., including developing markets.
Requests for withdrawals must meet specific requirements with
advance notice of redemption preferred. |
|
| American Airlines, Inc. [Member] | Other Postretirement Benefit Plans [Member] |
|
| Schedule of Allocation of Plan Assets |
The fair value of American’s other postretirement benefit
plan assets at December 31, 2015 by asset category, were as
follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements as of
December 31, 2015 |
|
| |
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) |
|
|
Significant
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Total |
|
|
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market fund
|
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4 |
|
|
Mutual funds – Institutional Class
|
|
|
19 |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
|
Mutual funds – AMR Class
|
|
|
— |
|
|
|
230 |
|
|
|
— |
|
|
|
230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
23 |
|
|
$ |
230 |
|
|
$ |
— |
|
|
$ |
253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The fair value of American’s other postretirement benefit
plan assets at December 31, 2014 by asset category, were as
follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements as of
December 31, 2014 |
|
| |
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) |
|
|
Significant
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
Total |
|
|
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market fund
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2 |
|
|
Mutual funds – AMR Class
|
|
|
— |
|
|
|
242 |
|
|
|
— |
|
|
|
242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
2 |
|
|
$ |
242 |
|
|
$ |
— |
|
|
$ |
244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|