Employee Benefit Plans (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] |
|
Schedule of Changes in Projected Benefit Obligations |
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 a statement of funded status as of December 31, 2017 and 2016: | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | Benefit obligation at beginning of period | $ | 17,238 |
| | $ | 16,395 |
| | $ | 991 |
| | $ | 1,131 |
| Service cost | 2 |
| | 2 |
| | 4 |
| | 3 |
| Interest cost | 721 |
| | 749 |
| | 39 |
| | 47 |
| Actuarial (gain) loss (1) (2) | 1,016 |
| | 729 |
| | 49 |
| | (105 | ) | Plan amendments | — |
| | — |
| | — |
| | 7 |
| Settlements | (4 | ) | | (2 | ) | | — |
| | — |
| Benefit payments | (726 | ) | | (635 | ) | | (80 | ) | | (92 | ) | Other | 28 |
| | — |
| | 8 |
| | — |
| Benefit obligation at end of period | $ | 18,275 |
| | $ | 17,238 |
| | $ | 1,011 |
| | $ | 991 |
|
| | | | | | | | | | | | | | | | | Fair value of plan assets at beginning of period | $ | 10,017 |
| | $ | 9,707 |
| | $ | 266 |
| | $ | 253 |
| Actual return on plan assets | 1,797 |
| | 915 |
| | 37 |
| | 22 |
| Employer contributions (3) | 286 |
| | 32 |
| | 72 |
| | 83 |
| Settlements | (4 | ) | | (2 | ) | | — |
| | — |
| Benefit payments | (726 | ) | | (635 | ) | | (80 | ) | | (92 | ) | Other | 25 |
| | — |
| | — |
| | — |
| Fair value of plan assets at end of period | $ | 11,395 |
| | $ | 10,017 |
| | $ | 295 |
| | $ | 266 |
| Funded status at end of period | $ | (6,880 | ) | | $ | (7,221 | ) | | $ | (716 | ) | | $ | (725 | ) |
| | (1) | The December 31, 2017 and 2016 pension actuarial loss primarily relates to weighted average discount rate assumption changes and changes to our mortality assumptions. |
| | (2) | The December 31, 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to plan experience adjustments, weighted average discount rate assumption changes and changes to our mortality assumptions and as of December 31, 2016, also includes medical trend and cost assumption changes. |
| | (3) | During 2017, we contributed $286 million to our defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required cash contribution. |
|
Schedule of Changes in Fair Value of Plan Assets |
| | | | | | | | | | | | | | | | | Fair value of plan assets at beginning of period | $ | 10,017 |
| | $ | 9,707 |
| | $ | 266 |
| | $ | 253 |
| Actual return on plan assets | 1,797 |
| | 915 |
| | 37 |
| | 22 |
| Employer contributions (3) | 286 |
| | 32 |
| | 72 |
| | 83 |
| Settlements | (4 | ) | | (2 | ) | | — |
| | — |
| Benefit payments | (726 | ) | | (635 | ) | | (80 | ) | | (92 | ) | Other | 25 |
| | — |
| | — |
| | — |
| Fair value of plan assets at end of period | $ | 11,395 |
| | $ | 10,017 |
| | $ | 295 |
| | $ | 266 |
| Funded status at end of period | $ | (6,880 | ) | | $ | (7,221 | ) | | $ | (716 | ) | | $ | (725 | ) |
| | (1) | The December 31, 2017 and 2016 pension actuarial loss primarily relates to weighted average discount rate assumption changes and changes to our mortality assumptions. |
| | (2) | The December 31, 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to plan experience adjustments, weighted average discount rate assumption changes and changes to our mortality assumptions and as of December 31, 2016, also includes medical trend and cost assumption changes. |
| | (3) | During 2017, we contributed $286 million to our defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required cash contribution. |
|
Schedule of Amounts Recognized in Consolidated Balance Sheets |
Balance Sheet Position | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | As of December 31, | | | | | | | | Current liability | $ | 10 |
| | $ | 7 |
| | $ | 89 |
| | $ | 97 |
| Noncurrent liability | 6,870 |
| | 7,214 |
| | 627 |
| | 628 |
| Total liabilities | $ | 6,880 |
| | $ | 7,221 |
| | $ | 716 |
| | $ | 725 |
|
|
Schedule of Amounts Recognized in Other Comprehensive Income |
| | | | | | | | | | | | | | | | | Net actuarial loss (gain) | $ | 5,351 |
| | $ | 5,484 |
| | $ | (388 | ) | | $ | (430 | ) | Prior service cost (benefit) | 160 |
| | 188 |
| | (600 | ) | | (837 | ) | Total accumulated other comprehensive loss (income), pre-tax | $ | 5,511 |
| | $ | 5,672 |
| | $ | (988 | ) | | $ | (1,267 | ) |
|
Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets |
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | Projected benefit obligation | $ | 18,245 |
| | $ | 17,209 |
| | $ | — |
| | $ | — |
| Accumulated benefit obligation (ABO) | 18,235 |
| | 17,197 |
| | — |
| | — |
| Accumulated postretirement benefit obligation | — |
| | — |
| | 1,011 |
| | 990 |
| Fair value of plan assets | 11,364 |
| | 9,986 |
| | 295 |
| | 266 |
| ABO less fair value of plan assets | 6,871 |
| | 7,211 |
| | — |
| | — |
|
|
Components of Net Periodic Benefit Cost (Income) |
Net Periodic Benefit Cost (Income) | | | | | | | | | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | | (In millions) | Defined benefit plans: | | | | | | | | | | | | Service cost | $ | 2 |
| | $ | 2 |
| | $ | 2 |
| | $ | 4 |
| | $ | 3 |
| | $ | 3 |
| Interest cost | 721 |
| | 749 |
| | 737 |
| | 39 |
| | 47 |
| | 50 |
| Expected return on assets | (790 | ) | | (750 | ) | | (851 | ) | | (21 | ) | | (20 | ) | | (19 | ) | Settlements | 1 |
| | — |
| | 1 |
| | — |
| | — |
| | — |
| Amortization of: | | | | | | | | | | | | Prior service cost (benefit) | 28 |
| | 28 |
| | 28 |
| | (237 | ) | | (240 | ) | | (243 | ) | Unrecognized net loss (gain) | 144 |
| | 126 |
| | 112 |
| | (23 | ) | | (17 | ) | | (9 | ) | Net periodic benefit cost (income) | 106 |
| | 155 |
| | 29 |
| | (238 | ) | | (227 | ) | | (218 | ) | Defined contribution plan cost | 851 |
| | 766 |
| | 662 |
| | N/A |
| | N/A |
| | N/A |
| Total cost (income) | $ | 957 |
| | $ | 921 |
| | $ | 691 |
| | $ | (238 | ) | | $ | (227 | ) | | $ | (218 | ) |
|
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 for the periods presented: | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | Benefit obligations: | | | | | | | | Weighted average discount rate | 3.80% | | 4.30% | | 3.60% | | 4.10% |
| | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | Net periodic benefit cost: | | | | | | | | | | | | Weighted average discount rate | 4.30% | | 4.70% | | 4.30% | | 4.10% | | 4.42% | | 4.00% | Weighted average expected rate of return on plan assets | 8.00% | | 8.00% | | 8.00% | | 8.00% | | 8.00% | | 8.00% | Weighted average health care cost trend rate assumed for next year (1) | N/A | | N/A | | N/A | | 4.19% | | 4.25% | | 5.21% |
| | (1) | The weighted average health care cost trend rate at December 31, 2017 is assumed to decline gradually to 3.76% by 2025 and remain level thereafter. |
|
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 on our retiree medical and other postretirement benefits plans (in millions): | | | | | | | | | | 1% Increase | | 1% Decrease | Increase (decrease) on 2017 service and interest cost | $ | 2 |
| | $ | (2 | ) | Increase (decrease) on benefit obligation as of December 31, 2017 | 54 |
| | (51 | ) |
|
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): | | | | | | | | | | | | | | | | | | | | | | | | | | 2018 | | 2019 | | 2020 | | 2021 | | 2022 | | 2023-2027 | Pension benefits | $ | 715 |
| | $ | 754 |
| | $ | 799 |
| | $ | 843 |
| | $ | 884 |
| | $ | 4,976 |
| Retiree medical and other postretirement benefits | 96 |
| | 92 |
| | 80 |
| | 75 |
| | 70 |
| | 315 |
|
|
Schedule of Allocation of Plan Assets |
The current strategic target asset allocation is as follows: | | | Asset Class/Sub-Class | Allowed Range | Equity | 65% - 90% | Public: | | U.S. Large | 20% - 50% | U.S. Small/Mid | 0% - 10% | International | 17% - 27% | Emerging Markets | 5% - 11% | Alternative Investments | 5% - 20% | Fixed Income | 15% - 40% | Public: | | U.S. Long Duration | 15% - 30% | High Yield and Emerging Markets | 0% - 10% | Private Income | 0% - 10% | 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, 2017, were as follows (in millions): | | | | | | | | | | Private Equity Partnerships | | Insurance Group Annuity Contracts | Beginning balance at December 31, 2016 | $ | 21 |
| | $ | 2 |
| Actual loss on plan assets: | | | | Relating to assets still held at the reporting date | (4 | ) | | — |
| Purchases | 1 |
| | — |
| Sales | (1 | ) | | — |
| Transfers out | (3 | ) | | — |
| Ending balance at December 31, 2017 | $ | 14 |
| | $ | 2 |
|
Changes in fair value measurements of Level 3 investments during the year ended December 31, 2016, were as follows (in millions): | | | | | | | | | | Private Equity Partnerships | | Insurance Group Annuity Contracts | Beginning balance at December 31, 2015 | $ | 16 |
| | $ | 2 |
| Actual return on plan assets: | | | | Relating to assets sold during the period | 7 |
| | — |
| Purchases | 7 |
| | — |
| Sales | (9 | ) | | — |
| Ending balance at December 31, 2016 | $ | 21 |
| | $ | 2 |
|
|
Pension Benefits [Member] |
|
Defined Benefit Plan Disclosure [Line Items] |
|
Schedule of Allocation of Plan Assets |
The fair value of our pension plan assets at December 31, 2017 and 2016, by asset category, are as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2017 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Cash and cash equivalents | $ | 28 |
| | $ | — |
| | $ | — |
| | $ | 28 |
| Equity securities: | | | | | | |
|
| International markets (a) (b) | 3,837 |
| | — |
| | — |
| | 3,837 |
| Large-cap companies (b) | 2,451 |
| | — |
| | — |
| | 2,451 |
| Mid-cap companies (b) | 744 |
| | — |
| | — |
| | 744 |
| Small-cap companies (b) | 125 |
| | — |
| | — |
| | 125 |
| Mutual funds (c) | 55 |
| | — |
| | — |
| | 55 |
| Fixed income: | | | | | | |
|
| Corporate bonds (d) | — |
| | 2,344 |
| | — |
| | 2,344 |
| Government securities (e) | — |
| | 238 |
| | — |
| | 238 |
| U.S. municipal securities | — |
| | 39 |
| | — |
| | 39 |
| Alternative instruments: | | | | | | |
|
| Private equity partnerships (f) | — |
| | — |
| | 14 |
| | 14 |
| Private equity partnerships measured at net asset value (f) (h) | — |
| | — |
| | — |
| | 879 |
| Common/collective trusts (g) | — |
| | 315 |
| | — |
| | 315 |
| Common/collective trusts and 103-12 Investment Trust measured at net asset value (g) (h) | — |
| | — |
| | — |
| | 283 |
| Insurance group annuity contracts | — |
| | — |
| | 2 |
| | 2 |
| Dividend and interest receivable | 44 |
| | — |
| | — |
| | 44 |
| Due to/from brokers for sale of securities – net | 3 |
| | — |
| | — |
| | 3 |
| Other liabilities – net | (6 | ) | | — |
| | — |
| | (6 | ) | Total | $ | 7,281 |
| | $ | 2,936 |
| | $ | 16 |
| | $ | 11,395 |
|
| | a) | Holdings are diversified as follows: 17% United Kingdom, 11% Japan, 9% France, 6% Switzerland, 16% emerging markets and the remaining 41% 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 39% in equity securities of large-cap, mid-cap and small-cap U.S. companies, 34% in U.S. treasuries and corporate bonds and 27% in equity securities of international companies. |
| | d) | Includes approximately 76% investments in corporate debt with a S&P rating lower than A and 24% investments in corporate debt with a S&P rating A or higher. Holdings include 85% U.S. companies, 12% international companies and 3% emerging market companies. |
| | e) | Includes approximately 27% investments in U.S. domestic government securities, 43% in emerging market government securities and 30% in international government securities. There are no significant foreign currency risks within this classification. |
| | f) | Includes limited partnerships that invest primarily in U.S. (94%) and European (6%) 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 $903 million over the next ten years. |
| | g) | Investment includes 42% in a collective interest trust investing primarily in short-term securities, 40% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 10% in Canadian segregated balanced value, income growth and diversified pooled funds and 8% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. |
| | h) | Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. |
| | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2016 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Cash and cash equivalents | $ | 573 |
| | $ | — |
| | $ | — |
| | $ | 573 |
| Equity securities: | | | | | | | | International markets (a) (b) | 3,232 |
| | — |
| | — |
| | 3,232 |
| Large-cap companies (b) | 2,253 |
| | — |
| | — |
| | 2,253 |
| Mid-cap companies (b) | 371 |
| | — |
| | — |
| | 371 |
| Small-cap companies (b) | 6 |
| | — |
| | — |
| | 6 |
| Mutual funds (c) | 49 |
| | — |
| | — |
| | 49 |
| Fixed income: | | | | | | | | Corporate bonds (d) | — |
| | 2,337 |
| | — |
| | 2,337 |
| Government securities (e) | — |
| | 150 |
| | — |
| | 150 |
| U.S. municipal securities | — |
| | 37 |
| | — |
| | 37 |
| Alternative instruments: | | | | | | | | Private equity partnerships (f) | — |
| | — |
| | 21 |
| | 21 |
| Private equity partnerships measured at net asset value (f) (h) | — |
| | — |
| | — |
| | 703 |
| Common/collective trusts (g) | — |
| | 32 |
| | — |
| | 32 |
| Common/collective trusts and 103-12 Investment Trust measured at net asset value (g) (h) | — |
| | — |
| | — |
| | 227 |
| Insurance group annuity contracts | — |
| | — |
| | 2 |
| | 2 |
| Dividend and interest receivable | 40 |
| | — |
| | — |
| | 40 |
| Due to/from brokers for sale of securities – net | (9 | ) | | — |
| | — |
| | (9 | ) | Other liabilities – net | (7 | ) | | — |
| | — |
| | (7 | ) | Total | $ | 6,508 |
| | $ | 2,556 |
| | $ | 23 |
| | $ | 10,017 |
|
| | a) | Holdings are diversified as follows: 15% United Kingdom, 12% Japan, 10% France, 7% Switzerland, 6% Netherlands, 17% other emerging markets and the remaining 33% 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 42% in equity securities of large-cap, mid-cap and small-cap U.S. companies, 33% 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 S&P rating lower than A and 26% investments in corporate debt with a S&P rating A or higher. Holdings include 86% U.S. companies, 12% international companies and 2% emerging market companies. |
| | e) | Includes approximately 61% investments in U.S. domestic government securities and 39% 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. (95%) and European (5%) 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 $456 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, 12% in Canadian segregated balanced value, income growth and diversified pooled funds and 15% 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. |
| | h) | Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. |
|
Retiree Medical And Other Postretirement Benefits [Member] |
|
Defined Benefit Plan Disclosure [Line Items] |
|
Schedule of Allocation of Plan Assets |
The fair value of our retiree medical and other postretirement benefits plans assets at December 31, 2017 by asset category, were as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2017 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Money market fund | $ | 5 |
| | $ | — |
| | $ | — |
| | $ | 5 |
| Mutual funds – AAL Class | — |
| | 290 |
| | — |
| | 290 |
| Total | $ | 5 |
| | $ | 290 |
| | $ | — |
| | $ | 295 |
|
The fair value of our retiree medical and other postretirement benefits plans assets at December 31, 2016 by asset category, were as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2016 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Money market fund | $ | 5 |
| | $ | — |
| | $ | — |
| | $ | 5 |
| Mutual funds – Institutional Class | 261 |
| | — |
| | — |
| | 261 |
| Total | $ | 266 |
| | $ | — |
| | $ | — |
| | $ | 266 |
|
|
American Airlines, Inc. [Member] |
|
Defined Benefit Plan Disclosure [Line Items] |
|
Schedule of Changes in Projected Benefit Obligations |
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 a statement of funded status as of December 31, 2017 and 2016: | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | Benefit obligation at beginning of period | $ | 17,148 |
| | $ | 16,310 |
| | $ | 990 |
| | $ | 1,129 |
| Service cost | 2 |
| | 2 |
| | 4 |
| | 3 |
| Interest cost | 717 |
| | 746 |
| | 39 |
| | 47 |
| Actuarial (gain) loss (1) (2) | 1,007 |
| | 725 |
| | 49 |
| | (104 | ) | Plan amendments | — |
| | — |
| | — |
| | 7 |
| Settlements | (4 | ) | | (2 | ) | | — |
| | — |
| Benefit payments | (723 | ) | | (633 | ) | | (80 | ) | | (92 | ) | Other | 28 |
| | — |
| | 8 |
| | — |
| Benefit obligation at end of period | $ | 18,175 |
| | $ | 17,148 |
| | $ | 1,010 |
| | $ | 990 |
|
| | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | Fair value of plan assets at beginning of period | $ | 9,968 |
| | $ | 9,660 |
| | $ | 266 |
| | $ | 253 |
| Actual return on plan assets | 1,788 |
| | 911 |
| | 37 |
| | 22 |
| Employer contributions (3) | 286 |
| | 32 |
| | 72 |
| | 83 |
| Settlements | (4 | ) | | (2 | ) | | — |
| | — |
| Benefit payments | (723 | ) | | (633 | ) | | (80 | ) | | (92 | ) | Other | 25 |
| | — |
| | — |
| | — |
| Fair value of plan assets at end of period | $ | 11,340 |
| | $ | 9,968 |
| | $ | 295 |
| | $ | 266 |
| Funded status at end of period | $ | (6,835 | ) | | $ | (7,180 | ) | | $ | (715 | ) | | $ | (724 | ) |
| | (1) | The December 31, 2017 and 2016 pension actuarial loss primarily relates to weighted average discount rate assumption changes and changes to American’s mortality assumptions. |
| | (2) | The December 31, 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to plan experience adjustments, weighted average discount rate assumption changes and changes to American’s mortality assumptions and as of December 31, 2016, also includes medical trend and cost assumption changes. |
| | (3) | During 2017, American contributed $286 million to its defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required cash contribution. |
|
Schedule of Changes in Fair Value of Plan Assets |
| | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | Fair value of plan assets at beginning of period | $ | 9,968 |
| | $ | 9,660 |
| | $ | 266 |
| | $ | 253 |
| Actual return on plan assets | 1,788 |
| | 911 |
| | 37 |
| | 22 |
| Employer contributions (3) | 286 |
| | 32 |
| | 72 |
| | 83 |
| Settlements | (4 | ) | | (2 | ) | | — |
| | — |
| Benefit payments | (723 | ) | | (633 | ) | | (80 | ) | | (92 | ) | Other | 25 |
| | — |
| | — |
| | — |
| Fair value of plan assets at end of period | $ | 11,340 |
| | $ | 9,968 |
| | $ | 295 |
| | $ | 266 |
| Funded status at end of period | $ | (6,835 | ) | | $ | (7,180 | ) | | $ | (715 | ) | | $ | (724 | ) |
| | (1) | The December 31, 2017 and 2016 pension actuarial loss primarily relates to weighted average discount rate assumption changes and changes to American’s mortality assumptions. |
| | (2) | The December 31, 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to plan experience adjustments, weighted average discount rate assumption changes and changes to American’s mortality assumptions and as of December 31, 2016, also includes medical trend and cost assumption changes. |
| | (3) | During 2017, American contributed $286 million to its defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required cash contribution. |
|
Schedule of Amounts Recognized in Consolidated Balance Sheets |
| | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | As of December 31, | | Current liability | $ | 10 |
| | $ | 7 |
| | $ | 88 |
| | $ | 97 |
| Noncurrent liability | 6,825 |
| | 7,173 |
| | 627 |
| | 627 |
| Total liabilities | $ | 6,835 |
| | $ | 7,180 |
| | $ | 715 |
| | $ | 724 |
|
|
Schedule of Amounts Recognized in Other Comprehensive Income |
| | | | | | | | | | | | | | | | | Net actuarial loss (gain) | $ | 5,337 |
| | $ | 5,472 |
| | $ | (388 | ) | | $ | (429 | ) | Prior service cost (benefit) | 159 |
| | 188 |
| | (600 | ) | | (837 | ) | Total accumulated other comprehensive loss (income), pre-tax | $ | 5,496 |
| | $ | 5,660 |
| | $ | (988 | ) | | $ | (1,266 | ) |
|
Schedule of Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets |
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | Projected benefit obligation | $ | 18,144 |
| | $ | 17,119 |
| | $ | — |
| | $ | — |
| Accumulated benefit obligation (ABO) | 18,135 |
| | 17,108 |
| | — |
| | — |
| Accumulated postretirement benefit obligation | — |
| | — |
| | 1,010 |
| | 990 |
| Fair value of plan assets | 11,307 |
| | 9,936 |
| | 295 |
| | 266 |
| ABO less fair value of plan assets | 6,828 |
| | 7,172 |
| | — |
| | — |
|
|
Components of Net Periodic Benefit Cost (Income) |
| | | | | | | | | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | | (In millions) | Defined benefit plans: | | | | | | | | | | | | Service cost | $ | 2 |
| | $ | 2 |
| | $ | 1 |
| | $ | 4 |
| | $ | 3 |
| | $ | 3 |
| Interest cost | 717 |
| | 746 |
| | 733 |
| | 39 |
| | 47 |
| | 50 |
| Expected return on assets | (786 | ) | | (747 | ) | | (848 | ) | | (21 | ) | | (20 | ) | | (19 | ) | Settlements | 1 |
| | — |
| | 1 |
| | — |
| | — |
| | — |
| Amortization of: | | | | | | | | | | | | Prior service cost (benefit) | 28 |
| | 28 |
| | 28 |
| | (237 | ) | | (240 | ) | | (243 | ) | Unrecognized net loss (gain) | 144 |
| | 125 |
| | 111 |
| | (23 | ) | | (16 | ) | | (9 | ) | Net periodic benefit cost (income) | 106 |
| | 154 |
| | 26 |
| | (238 | ) | | (226 | ) | | (218 | ) | Defined contribution plan cost | 844 |
| | 761 |
| | 657 |
| | N/A |
| | N/A |
| | N/A |
| Total cost (income) | $ | 950 |
| | $ | 915 |
| | $ | 683 |
| | $ | (238 | ) | | $ | (226 | ) | | $ | (218 | ) |
|
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 for the periods presented: | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | Benefit obligations: | | | | | | | | Weighted average discount rate | 3.80% | | 4.30% | | 3.60% | | 4.10% |
| | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | Net periodic benefit cost: | | | | | | | | | | | | Weighted average discount rate | 4.30% | | 4.70% | | 4.30% | | 4.10% | | 4.42% | | 4.00% | Weighted average expected rate of return on plan assets | 8.00% | | 8.00% | | 8.00% | | 8.00% | | 8.00% | | 8.00% | Weighted average health care cost trend rate assumed for next year (1) | N/A | | N/A | | N/A | | 4.19% | | 4.25% | | 5.21% |
| | (1) | The weighted average health care cost trend rate at December 31, 2017 is assumed to decline gradually to 3.76% by 2025 and remain level thereafter. |
|
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 on American’s retiree medical and other postretirement benefits plans (in millions): | | | | | | | | | | 1% Increase | | 1% Decrease | Increase (decrease) on 2017 service and interest cost | $ | 2 |
| | $ | (2 | ) | Increase (decrease) on benefit obligation as of December 31, 2017 | 54 |
| | (51 | ) |
|
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): | | | | | | | | | | | | | | | | | | | | | | | | | | 2018 | | 2019 | | 2020 | | 2021 | | 2022 | | 2023-2027 | Pension benefits | $ | 712 |
| | $ | 750 |
| | $ | 795 |
| | $ | 839 |
| | $ | 879 |
| | $ | 4,951 |
| Retiree medical and other postretirement benefits | 96 |
| | 92 |
| | 80 |
| | 75 |
| | 70 |
| | 314 |
|
|
Schedule of Allocation of Plan Assets |
The current strategic target asset allocation is as follows: | | | Asset Class/Sub-Class | Allowed Range | Equity | 65% - 90% | Public: | | U.S. Large | 20% - 50% | U.S. Small/Mid | 0% - 10% | International | 17% - 27% | Emerging Markets | 5% - 11% | Alternative Investments | 5% - 20% | Fixed Income | 15% - 40% | Public: | | U.S. Long Duration | 15% - 30% | High Yield and Emerging Markets | 0% - 10% | Private Income | 0% - 10% | 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, 2017, were as follows (in millions): | | | | | | | | | | Private Equity Partnerships | | Insurance Group Annuity Contracts | Beginning balance at December 31, 2016 | $ | 21 |
| | $ | 2 |
| Actual loss on plan assets: | | | | Relating to assets still held at the reporting date | (4 | ) | | — |
| Purchases | 1 |
| | — |
| Sales | (1 | ) | | — |
| Transfers out | (3 | ) | | — |
| Ending balance at December 31, 2017 | $ | 14 |
| | $ | 2 |
|
Changes in fair value measurements of Level 3 investments during the year ended December 31, 2016, were as follows (in millions): | | | | | | | | | | Private Equity Partnerships | | Insurance Group Annuity Contracts | Beginning balance at December 31, 2015 | $ | 16 |
| | $ | 2 |
| Actual return on plan assets: | | | | Relating to assets sold during the period | 7 |
| | — |
| Purchases | 7 |
| | — |
| Sales | (9 | ) | | — |
| Ending balance at December 31, 2016 | $ | 21 |
| | $ | 2 |
|
|
American Airlines, Inc. [Member] | Pension Benefits [Member] |
|
Defined Benefit Plan Disclosure [Line Items] |
|
Schedule of Allocation of Plan Assets |
The fair value of American’s pension plan assets at December 31, 2017 and 2016, by asset category, are as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2017 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Cash and cash equivalents | $ | 28 |
| | $ | — |
| | $ | — |
| | $ | 28 |
| Equity securities: | | | | | | | | International markets (a) (b) | 3,837 |
| | — |
| | — |
| | 3,837 |
| Large-cap companies (b) | 2,451 |
| | — |
| | — |
| | 2,451 |
| Mid-cap companies (b) | 744 |
| | — |
| | — |
| | 744 |
| Small-cap companies (b) | 125 |
| | — |
| | — |
| | 125 |
| Fixed income: | | | | | | | | Corporate bonds (c) | — |
| | 2,344 |
| | — |
| | 2,344 |
| Government securities (d) | — |
| | 238 |
| | — |
| | 238 |
| U.S. municipal securities | — |
| | 39 |
| | — |
| | 39 |
| Alternative instruments: | | | | | | | | Private equity partnerships (e) | — |
| | — |
| | 14 |
| | 14 |
| Private equity partnerships measured at net asset value (e) (g) | — |
| | — |
| | — |
| | 879 |
| Common/collective trusts (f) | — |
| | 315 |
| | — |
| | 315 |
| Common/collective trusts and 103-12 Investment Trust measured at net asset value (f) (g) | — |
| | — |
| | — |
| | 283 |
| Insurance group annuity contracts | — |
| | — |
| | 2 |
| | 2 |
| Dividend and interest receivable | 44 |
| | — |
| | — |
| | 44 |
| Due to/from brokers for sale of securities – net | 3 |
| | — |
| | — |
| | 3 |
| Other liabilities – net | (6 | ) | | — |
| | — |
| | (6 | ) | Total | $ | 7,226 |
| | $ | 2,936 |
| | $ | 16 |
| | $ | 11,340 |
|
| | a) | Holdings are diversified as follows: 17% United Kingdom, 11% Japan, 9% France, 6% Switzerland, 16% emerging markets and the remaining 41% 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 76% investments in corporate debt with a S&P rating lower than A and 24% investments in corporate debt with a S&P rating A or higher. Holdings include 85% U.S. companies, 12% international companies and 3% emerging market companies. |
| | d) | Includes approximately 27% investments in U.S. domestic government securities, 43% in emerging market government securities and 30% in international government securities. There are no significant foreign currency risks within this classification. |
| | e) | Includes limited partnerships that invest primarily in U.S. (94%) and European (6%) 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 $903 million over the next ten years. |
| | f) | Investment includes 42% in a collective interest trust investing primarily in short-term securities, 40% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 10% in Canadian segregated balanced value, income growth and diversified pooled funds and 8% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. |
| | g) | Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. |
| | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2016 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Cash and cash equivalents | $ | 573 |
| | $ | — |
| | $ | — |
| | $ | 573 |
| Equity securities: | | | | | | | | International markets (a) (b) | 3,232 |
| | — |
| | — |
| | 3,232 |
| Large-cap companies (b) | 2,253 |
| | — |
| | — |
| | 2,253 |
| Mid-cap companies (b) | 371 |
| | — |
| | — |
| | 371 |
| Small-cap companies (b) | 6 |
| | — |
| | — |
| | 6 |
| Fixed income: | | | | | | | | Corporate bonds (c) | — |
| | 2,337 |
| | — |
| | 2,337 |
| Government securities (d) | — |
| | 150 |
| | — |
| | 150 |
| U.S. municipal securities | — |
| | 37 |
| | — |
| | 37 |
| Alternative instruments: | | | | | | | | Private equity partnerships (e) | — |
| | — |
| | 21 |
| | 21 |
| Private equity partnerships measured at net asset value (e) (g) | — |
| | — |
| | — |
| | 703 |
| Common/collective trusts (f) | — |
| | 32 |
| | — |
| | 32 |
| Common/collective trusts and 103-12 Investment Trust measured at net asset value (f) (g) | — |
| | — |
| | — |
| | 227 |
| Insurance group annuity contracts | — |
| | — |
| | 2 |
| | 2 |
| Dividend and interest receivable | 40 |
| | — |
| | — |
| | 40 |
| Due to/from brokers for sale of securities – net | (9 | ) | | — |
| | — |
| | (9 | ) | Other liabilities – net | (7 | ) | | — |
| | — |
| | (7 | ) | Total | $ | 6,459 |
| | $ | 2,556 |
| | $ | 23 |
| | $ | 9,968 |
|
| | a) | Holdings are diversified as follows: 15% United Kingdom, 12% Japan, 10% France, 7% Switzerland, 6% Netherlands, 17% other emerging markets and the remaining 33% 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 S&P rating lower than A and 26% investments in corporate debt with a S&P rating A or higher. Holdings include 86% U.S. companies, 12% international companies and 2% emerging market companies. |
| | d) | Includes approximately 61% investments in U.S. domestic government securities and 39% 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. (95%) and European (5%) 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 $456 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, 12% in Canadian segregated balanced value, income growth and diversified pooled funds and 15% 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. |
| | g) | Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. |
|
American Airlines, Inc. [Member] | Retiree Medical And Other Postretirement Benefits [Member] |
|
Defined Benefit Plan Disclosure [Line Items] |
|
Schedule of Allocation of Plan Assets |
The fair value of American’s retiree medical and other postretirement benefits plans assets at December 31, 2017 by asset category, were as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2017 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Money market fund | $ | 5 |
| | $ | — |
| | $ | — |
| | $ | 5 |
| Mutual funds – AAL Class | — |
| | 290 |
| | — |
| | 290 |
| Total | $ | 5 |
| | $ | 290 |
| | $ | — |
| | $ | 295 |
|
The fair value of American’s retiree medical and other postretirement benefits plans assets at December 31, 2016 by asset category, were as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2016 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Money market fund | $ | 5 |
| | $ | — |
| | $ | — |
| | $ | 5 |
| Mutual funds – Institutional Class | 261 |
| | — |
| | — |
| | 261 |
| Total | $ | 266 |
| | $ | — |
| | $ | — |
| | $ | 266 |
|
|