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Employee Benefit Plans
 9 Months Ended
Sep. 30, 2021
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
The following table provides the components of net periodic benefit cost (income) (in millions):
 Pension BenefitsRetiree Medical and Other
Postretirement Benefits
Three Months Ended September 30,2021202020212020
Service cost$1 $1 $2 $2 
Interest cost132 154 8 8 
Expected return on assets(269)(253)(3)(3)
Special termination benefits— — — 410 
Amortization of:
Prior service cost (benefit)7 7 (3)(33)
Unrecognized net loss (gain)54 41 (6)(5)
Net periodic benefit cost (income)$(75)$(50)$(2)$379 
 Pension BenefitsRetiree Medical and Other
Postretirement Benefits
Nine Months Ended September 30,2021202020212020
Service cost$3 $3 $7 $5 
Interest cost394 461 23 22 
Expected return on assets(813)(757)(9)(9)
Special termination benefits— — 139 410 
Settlements— 4 — — 
Amortization of:
Prior service cost (benefit)21 21 (10)(139)
Unrecognized net loss (gain)159 124 (17)(17)
Net periodic benefit cost (income)$(236)$(144)$133 $272 
Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen.
The service cost component of net periodic benefit cost (income) is included in operating expenses, the cost for the special termination benefits is included in special items, net and the other components of net periodic benefit cost (income) are included in nonoperating other income (expense), net in the condensed consolidated statements of operations.
During the first quarter of 2021 and the third quarter of 2020, we remeasured our retiree medical and other postretirement benefits to account for enhanced healthcare benefits provided to eligible team members who opted into voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. For the nine months ended September 30, 2021, we recognized a $139 million special charge for these enhanced healthcare benefits and increased our postretirement benefits obligation by $139 million. For the three and nine months ended September 30, 2020, we recognized a $410 million special charge for these enhanced healthcare benefits and increased our postretirement benefits obligation by $410 million.
In January 2021, we made $241 million in contributions to our pension plans, including a contribution of $130 million for the 2020 calendar year that was permitted to be deferred to January 4, 2021 as provided under the CARES Act. On March 11, 2021, the ARP was enacted, which included funding relief provisions benefiting single employer qualified retirement benefit pension plans such as those sponsored by us. Based on our current understanding of the ARP provisions applicable to our pension plans, we will have no additional funding requirements for 2021.
American Airlines, Inc.  
Defined Benefit Plan Disclosure [Line Items]  
Employee Benefit Plans Employee Benefit Plans
The following table provides the components of net periodic benefit cost (income) (in millions):
 Pension BenefitsRetiree Medical and Other
Postretirement Benefits
Three Months Ended September 30,2021202020212020
Service cost$1 $1 $2 $2 
Interest cost132 153 8 8 
Expected return on assets(269)(252)(3)(3)
Special termination benefits— — — 410 
Amortization of:
Prior service cost (benefit)7 7 (3)(33)
Unrecognized net loss (gain)54 41 (6)(5)
Net periodic benefit cost (income)$(75)$(50)$(2)$379 
 Pension BenefitsRetiree Medical and Other
Postretirement Benefits
Nine Months Ended September 30,2021202020212020
Service cost$3 $2 $7 $5 
Interest cost392 459 23 22 
Expected return on assets(809)(754)(9)(9)
Special termination benefits— — 139 410 
Settlements— 4 — — 
Amortization of:
Prior service cost (benefit)21 21 (10)(139)
Unrecognized net loss (gain)158 123 (17)(17)
Net periodic benefit cost (income)$(235)$(145)$133 $272 
Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen.
The service cost component of net periodic benefit cost (income) is included in operating expenses, the cost for the special termination benefits is included in special items, net and the other components of net periodic benefit cost (income) are included in nonoperating other income (expense), net in the condensed consolidated statements of operations.
During the first quarter of 2021 and the third quarter of 2020, American remeasured its retiree medical and other postretirement benefits to account for enhanced healthcare benefits provided to eligible team members who opted into voluntary early retirement programs offered as a result of reductions to its operation due to the COVID-19 pandemic. For the nine months ended September 30, 2021, American recognized a $139 million special charge for these enhanced healthcare benefits and increased its postretirement benefits obligation by $139 million. For the three and nine months ended September 30, 2020, American recognized a $410 million special charge for these enhanced healthcare benefits and increased its postretirement benefits obligation by $410 million.
In January 2021, American made $241 million in contributions to its pension plans, including a contribution of $130 million for the 2020 calendar year that was permitted to be deferred to January 4, 2021 as provided under the CARES Act. On March 11, 2021, the ARP was enacted, which included funding relief provisions benefiting single employer qualified retirement benefit pension plans such as those sponsored by American. Based on American's current understanding of the ARP provisions applicable to its pension plans, American will have no additional funding requirements for 2021.