Quarterly report pursuant to Section 13 or 15(d)

EMPLOYEE BENEFIT PLANS

v2.4.0.6
EMPLOYEE BENEFIT PLANS
 6 Months Ended
Jun. 30, 2012
Compensation and Retirement Disclosure [Abstract]  
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS
Information about net periodic benefit cost for our company-sponsored pension and postretirement benefit plans is as follows for the three and six months ended June 30, 2012 and 2011 (in millions):
 
U.S. Pension Benefits
 
U.S. Postretirement
Medical Benefits
 
International
Pension Benefits
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Three Months Ended June 30:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
250

 
$
218

 
$
22

 
$
22

 
$
14

 
$
9

Interest cost
352

 
327

 
52

 
52

 
10

 
10

Expected return on assets
(493
)
 
(489
)
 
(5
)
 
(4
)
 
(12
)
 
(11
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Transition obligation
—

 
—

 
—

 
—

 
—

 
—

Prior service cost
44

 
43

 
1

 
2

 
—

 
—

Other net (gain) loss
—

 
29

 
—

 
—

 
—

 
1

Actuarial (gain) loss
—

 
—

 
—

 
—

 
—

 
—

Net periodic benefit cost
$
153

 
$
128

 
$
70

 
$
72

 
$
12

 
$
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Pension Benefits
 
U.S. Postretirement
Medical Benefits
 
International
Pension Benefits
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Six Months Ended June 30:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
499

 
$
436

 
$
44

 
$
44

 
$
29

 
$
18

Interest cost
705

 
654

 
104

 
104

 
21

 
20

Expected return on assets
(985
)
 
(978
)
 
(9
)
 
(8
)
 
(24
)
 
(22
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Transition obligation
—

 
—

 
—

 
—

 
—

 
—

Prior service cost
87

 
86

 
2

 
4

 
—

 
—

Other net (gain) loss
—

 
59

 
—

 
—

 
—

 
2

Actuarial (gain) loss
—

 
—

 
—

 
—

 
—

 
—

Net periodic benefit cost
$
306

 
$
257

 
$
141

 
$
144

 
$
26

 
$
18


During the first six months of 2012, we contributed $394 million and $56 million to our company-sponsored pension and postretirement medical benefit plans, respectively. We also expect to contribute $33 and $415 million over the remainder of the year to the pension and U.S. postretirement medical benefit plans, respectively.
As of December 31, 2011, we had approximately 245,000 employees employed under a national master agreement and various supplemental agreements with local unions affiliated with the International Brotherhood of Teamsters (“Teamsters”). These agreements run through July 31, 2013. We have approximately 2,700 pilots who are employed under a collective bargaining agreement with the Independent Pilots Association, which became amendable at the end of 2011. Our airline mechanics are covered by a collective bargaining agreement with Teamsters Local 2727, which runs through November 1, 2013. In addition, approximately 3,200 of our ground mechanics who are not employed under agreements with the Teamsters are employed under collective bargaining agreements with the International Association of Machinists and Aerospace Workers (“IAM”). Our agreement with the IAM runs through July 31, 2014.

We contribute to a number of multiemployer defined benefit and health and welfare plans under terms of collective bargaining agreements that cover our union-represented employees. Our current collective bargaining agreements set forth the annual contribution increases allotted to the plans that we participate in, and we are in compliance with these contribution rates. These limitations will remain in effect throughout the terms of the existing collective bargaining agreements.