Retirement Benefits

9 Months Ended

Sep. 30, 2016

Retirement Benefits

8. Retirement Benefits

The following tables provide the components of net periodic benefit cost (income) (in millions):

	Pension Benefits						Retiree Medical and Other Postretirement Benefits
Three Months Ended September 30,	2016			2015			2016			2015
Service cost	$	1		$	1		$	1		$	1
Interest cost		187			184			12			13
Expected return on assets		(188	)		(213	)		(5	)		(5	)
Settlements		—			—			—			—
Amortization of:
Prior service cost (benefit) (1)		7			7			(60	)		(60	)
Unrecognized net loss (gain)		32			28			(4	)		(2	)
Net periodic benefit cost (income)	$	39		$	7		$	(56	)	$	(53	)

⁽¹⁾  Each of the 2016 and 2015 third quarters’ prior service cost does not include amortization of $1 million related to other postretirement benefits.

	Pension Benefits						Retiree Medical and Other Postretirement Benefits
Nine Months Ended September 30,	2016			2015			2016			2015
Service cost	$	2		$	2		$	2		$	3
Interest cost		562			552			36			38
Expected return on assets		(562	)		(639	)		(15	)		(15	)
Settlements		—			1			—			—
Amortization of:
Prior service cost (benefit) (1)		21			21			(180	)		(182	)
Unrecognized net loss (gain)		95			84			(12	)		(5	)
Net periodic benefit cost (income)	$	118		$	21		$	(169	)	$	(161	)

⁽¹⁾  The 2016 and 2015 nine months’ prior service cost does not include amortization of $1 million and $2 million, respectively, related to other postretirement benefits.

Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen.

American Airlines, Inc. [Member]

Retirement Benefits

6. Retirement Benefits

The following tables provide the components of net periodic benefit cost (income) (in millions):

	Pension Benefits						Retiree Medical and Other Postretirement Benefits
Three Months Ended September 30,	2016			2015			2016			2015
Service cost	$	—		$	—		$	1		$	1
Interest cost		186			183			12			13
Expected return on assets		(187	)		(212	)		(5	)		(5	)
Settlements		—			—			—			—
Amortization of:
Prior service cost (benefit) (1)		7			7			(60	)		(60	)
Unrecognized net loss (gain)		32			28			(4	)		(2	)
Net periodic benefit cost (income)	$	38		$	6		$	(56	)	$	(53	)

⁽¹⁾  Each of the 2016 and 2015 third quarters’ prior service cost does not include amortization of $1 million related to other postretirement benefits.

	Pension Benefits						Retiree Medical and Other Postretirement Benefits
Nine Months Ended September 30,	2016			2015			2016			2015
Service cost	$	1		$	1		$	2		$	3
Interest cost		559			550			36			38
Expected return on assets		(560	)		(636	)		(15	)		(15	)
Settlements		—			1			—			—
Amortization of:
Prior service cost (benefit) (1)		21			21			(180	)		(182	)
Unrecognized net loss (gain)		94			84			(12	)		(5	)
Net periodic benefit cost (income)	$	115		$	21		$	(169	)	$	(161	)

⁽¹⁾  The 2016 and 2015 nine months’ prior service cost does not include amortization of $1 million and $2 million, respectively, related to other postretirement benefits.

Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen.