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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Dec. 31, 2024
Retirement Benefits [Abstract] |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS We sponsor defined benefit and defined contribution pension plans, healthcare plans and disability and survivorship plans for eligible employees and retirees and their eligible family members. Defined Benefit Pension Plans. We sponsor defined benefit pension plans for eligible employees and retirees. These plans are generally closed to new entrants and frozen for future benefit accruals. Our funding obligations for qualified defined benefit plans are governed by the Employee Retirement Income Security Act and any additional applicable legislation. Under current legislation, any required funding would be amortized over a rolling 15-year period and calculated using a discount rate of no less than 4.75% through 2030. We estimate that there will be approximately $80 million of minimum funding requirements under these plans in 2025. We also sponsor a market based cash balance defined benefit pension plan for eligible pilots that is funded by company contributions in excess of IRS limits in the 401(k) plan. We fund this plan with cash contributions as benefits are earned and invest those assets. The participants’ benefit is the sum of the contributions made on their behalf plus any positive return on the invested contributions. In estimating the related benefit obligation and net benefit cost, the expected long-term rate of return on plan assets is used in determining the interest crediting rate. Defined Contribution Pension Plans. We sponsor several defined contribution plans. These plans generally cover different employee groups and employer contributions vary by plan. The costs associated with our defined contribution pension plans were approximately $1.3 billion, $1.2 billion and $1.0 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Postretirement Healthcare Plans. We sponsor healthcare plans that provide benefits to eligible retirees and their dependents who are under age 65. We have generally eliminated company-paid post age 65 healthcare coverage, except for (1) subsidies available to a limited group of retirees and their dependents, (2) a group of retirees who retired prior to 1987 and (3) retiree medical accounts which provide a fixed dollar amount to eligible employees who retired under the 2012 voluntary workforce reduction programs or the 2020 voluntary early retirement and separation programs ("voluntary programs"). Postemployment Plans. We provide certain other welfare benefits to eligible former or inactive employees after employment but before retirement, primarily as part of the disability and survivorship plans. Substantially all employees are eligible for benefits under these plans in the event of death and/or disability. Benefits under our postretirement and post employment plans are funded from current assets and employee contributions. Benefit Obligations, Fair Value of Plan Assets and Funded Status
| Pension Benefits December 31, |  | Other Postretirement and Postemployment Benefits December 31,
(in millions) | 2024 | 2023 |  | 2024 | 2023
Benefit obligation at beginning of period | $ | 15,911 |  | $ | 15,811 |  |  | $ | 3,503 |  | $ | 3,664 |
Service cost(1) | 233 |  | 95 |  |  | 92 |  | 71 |
Interest cost | 820 |  | 855 |  |  | 182 |  | 200 |
Actuarial (gain)/loss | (738) |  | 351 |  |  | (50) |  | 24 |
Benefits paid, including lump sums and annuities | (1,259) |  | (1,201) |  |  | (497) |  | (485) |
Plan amendments | — |  | — |  |  | — |  | 11 |
Participant contributions | — |  | — |  |  | 30 |  | 18 |
Special termination benefits | — |  | — |  |  | 5 |  | — |
Benefit obligation at end of period(2) | $ | 14,967 |  | $ | 15,911 |  |  | $ | 3,265 |  | $ | 3,503 |
Fair value of plan assets at beginning of period | $ | 15,766 |  | $ | 15,721 |  |  | $ | 33 |  | $ | 71 |
Actual gain on plan assets | 1,142 |  | 1,142 |  |  | (7) |  | 3 |
Employer contributions | 256 |  | 104 |  |  | 468 |  | 426 |
Participant contributions | — |  | — |  |  | 30 |  | 18 |
Benefits paid, including lump sums and annuities | (1,259) |  | (1,201) |  |  | (497) |  | (485) |
Fair value of plan assets at end of period | $ | 15,905 |  | $ | 15,766 |  |  | $ | 27 |  | $ | 33 |
Funded status at end of period | $ | 938 |  | $ | (145) |  |  | $ | (3,238) |  | $ | (3,470) |
(1)Service cost shown above relates to the market based cash balance plan. There is no service cost associated with traditional frozen defined benefit plans. (2)At the end of each year presented, our accumulated benefit obligations for our pension plans are equal to the benefit obligations shown above. During 2024, net actuarial gains decreased our benefit obligation primarily due to the increase in discount rates while net actuarial losses increased our benefit obligation primarily due to the decrease in discount rates during 2023. These gains and losses are recorded in AOCI and reflected in the table below. Amounts are generally amortized from AOCI over the expected future lifetime of plan participants. Balance Sheet Position
| Pension Benefits December 31, |  | Other Postretirement and Postemployment Benefits December 31,
(in millions) | 2024 | 2023 |  | 2024 | 2023
Other noncurrent assets | $ | 1,005 |  | $ | 22 |  |  | $ | — |  | $ | — |
Current liabilities | (9) |  | (9) |  |  | (430) |  | (404) |
Noncurrent liabilities | (58) |  | (158) |  |  | (2,808) |  | (3,066) |
Funded status at end of period | $ | 938 |  | $ | (145) |  |  | $ | (3,238) |  | $ | (3,470) |
Net actuarial loss | $ | (5,407) |  | $ | (6,474) |  |  | $ | (103) |  | $ | (162) |
Prior service credit | — |  | — |  |  | (3) |  | 1 |
Total accumulated other comprehensive loss, pre-tax | $ | (5,407) |  | $ | (6,474) |  |  | $ | (106) |  | $ | (161) |
Certain pension plans have benefit obligations in excess of plan assets. These plans have aggregate projected benefit obligations of $67 million and are unfunded at December 31, 2024. Net Periodic Cost/(Benefit)
| Pension Benefits Year Ended December 31, |  | Other Postretirement and Postemployment Benefits Year Ended December 31,
(in millions) | 2024 | 2023 | 2022 |  | 2024 | 2023 | 2022
Service cost(1) | $ | 233 |  | $ | 95 |  | $ | — |  |  | $ | 92 |  | $ | 71 |  | $ | 70 |
Interest cost | 820 |  | 855 |  | 611 |  |  | 182 |  | 200 |  | 128 |
Expected return on plan assets | (1,062) |  | (1,060) |  | (1,319) |  |  | (2) |  | (1) |  | (17) |
Amortization of prior service credit | — |  | — |  | — |  |  | (4) |  | (5) |  | (5) |
Recognized net actuarial loss | 248 |  | 240 |  | 255 |  |  | 18 |  | 14 |  | 56 |
Special termination benefits | — |  | — |  | — |  |  | 5 |  | — |  | — |
Net periodic cost/(benefit) | $ | 239 |  | $ | 130 |  | $ | (453) |  |  | $ | 291 |  | $ | 279 |  | $ | 232 |
(1)Service cost shown above relates to the market based cash balance plan. There is no service cost associated with traditional frozen defined benefit plans. Service cost is recorded in salaries and related costs in the income statement, while all other components are recorded within miscellaneous, net under non-operating expense. Assumptions We used the following actuarial assumptions to determine our benefit obligations and our net periodic cost/(benefit) for the periods presented:
| December 31,
Benefit Obligations(1) | 2024 | 2023
Weighted average discount rate | 5.71 | % | 5.31 | %
| Year Ended December 31,
Net Periodic Cost/(Benefit)(1) | 2024 | 2023 | 2022
Weighted average discount rate | 5.33 | % | 5.59 | % | 2.96 | %
Weighted average expected long-term rate of return on plan assets | 6.97 | % | 7.00 | % | 7.00 | %
Assumed healthcare cost trend rate for the next year(2) | 6.50 | % | 6.25 | % | 6.50 | %
(1)Future employee compensation levels do not impact our frozen defined benefit pension plans or other postretirement plans and impact only a small portion of our other postemployment obligation. (2)Healthcare cost trend rate is assumed to decline gradually to 5.00% by 2033 and remain unchanged thereafter. Expected Long-Term Rate of Return. Our expected long-term rate of return on plan assets is based primarily on plan-specific investment studies using historical market return and volatility data. Modest excess return expectations versus some public market indices are incorporated into the return projections based on the actively managed structure of the investment programs and their records of achieving such returns historically. We also expect to receive a premium for investing in less liquid private markets. We review our rate of return on plan assets assumptions annually. Our annual investment performance for one particular year does not, by itself, significantly influence our evaluation. The investment strategy for our defined benefit pension plan assets is to earn a long-term return that meets or exceeds our annualized return target while taking an acceptable level of risk and maintaining sufficient liquidity to pay current benefits and other cash obligations of the plan. This is achieved by investing in a globally diversified mix of public and private equity, fixed income, real assets, hedge funds and other assets and instruments. Our weighted average expected long-term rate of return on assets for net periodic cost/(benefit) for the year ended December 31, 2024 was 6.97%. Life Expectancy. Changes in life expectancy may significantly impact our benefit obligations and future net periodic cost/(benefit). Each year we review information published by the Society of Actuaries and other publicly available information to develop our best estimate of life expectancy for purposes of measuring pension and other postretirement and postemployment benefit obligations. Benefit Payments Benefit payments in the table below are based on the same assumptions used to measure the related benefit obligations. Actual benefit payments may vary significantly from these estimates. Benefits earned under our pension plans are expected to be paid from funded benefit plan trusts, while our other postretirement and postemployment benefits are funded from current assets. The following table summarizes the benefit payments that are expected to be paid in the years ending December 31:
Expected future benefit payments |  |
(in millions) | Pension Benefits | Other Postretirement and Postemployment Benefits
2025 | $ | 1,330 |  | $ | 470 |
2026 | 1,350 |  | 470 |
2027 | 1,360 |  | 490 |
2028 | 1,350 |  | 500 |
2029 | 1,350 |  | 510 |
2030-2034 | 6,630 |  | 2,590 |
Plan Assets We have adopted and implemented investment policies for our defined benefit pension plans that incorporate strategic asset allocation mixes intended to best meet the plans' long-term obligations, while maintaining an appropriate level of risk and liquidity. These asset portfolios employ a diversified mix of investments, which are reviewed periodically. Active management strategies are utilized where feasible in an effort to realize investment returns in excess of market indices. Derivatives in the plans are primarily used to manage risk and gain asset class exposure while preserving liquidity. As part of these strategies, the plans are required to hold cash collateral associated with certain derivatives. Our investment strategies target a mix of 20-40% growth-seeking assets, 25-35% income-generating assets and 35-45% risk-diversifying assets. Risk diversifying assets include hedge funds implementing long-short, market neutral and relative value strategies that invest primarily in publicly-traded equity, fixed income, foreign currency and commodity securities and are used to improve the impact of active management on the plans. Benefit Plan Assets Measured at Fair Value on a Recurring Basis Benefit plan assets relate to our defined benefit pension plans and certain of our postemployment benefit plans. These investments are presented net of the related benefit obligation in either other noncurrent assets or pension, postretirement and related benefits on the balance sheets depending on the funded status of each plan. See Note 3, "Fair Value Measurements," for a description of the levels within the fair value hierarchy and associated valuation techniques used to measure fair value. The following table shows our benefit plan assets by asset class.
Benefit plan assets measured at fair value on a recurring basis |  |  |  |  |  |
| December 31, 2024 |  | December 31, 2023 |  | Valuation Technique
(in millions) | Level 1 | Level 2 | Total |  | Level 1 | Level 2 | Total |
Fixed income and fixed income-related instruments | $ | 85 |  | $ | 1,080 |  | $ | 1,165 |  |  | $ | 300 |  | $ | 1,858 |  | $ | 2,158 |  |  | (a)(b)
Cash equivalents | 330 |  | 138 |  | 468 |  |  | 471 |  | 685 |  | 1,156 |  |  | (a)
Equities and equity-related instruments | 978 |  | 3 |  | 981 |  |  | 647 |  | 122 |  | 769 |  |  | (a)
Delta common stock | 595 |  | — |  | 595 |  |  | 419 |  | — |  | 419 |  |  | (a)
Real assets | — |  | 25 |  | 25 |  |  | 11 |  | 236 |  | 247 |  |  | (a)
Benefit plan assets | $ | 1,988 |  | $ | 1,246 |  | $ | 3,234 |  |  | $ | 1,848 |  | $ | 2,901 |  | $ | 4,749 |  |  |
Investments measured at net asset value ("NAV")(1) |  |  | 12,438 |  |  |  |  | 11,417 |  |  |
Total benefit plan assets |  |  | $ | 15,672 |  |  |  |  | $ | 16,166 |  |  |
(1)Investments that were measured at NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. Fixed Income and Fixed Income-Related Instruments. These investments include corporate bonds, government bonds, collateralized mortgage obligations and other asset-backed securities, and are generally valued at the bid price or the average of the bid and ask price. Prices are based on pricing models, quoted prices of securities with similar characteristics or broker quotes. Fixed income-related instruments include investments in securities traded on exchanges, including listed futures and options, which are valued at the last reported sale prices on the last business day of the year, or if not available, the last reported bid prices. Over-the-counter securities are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes. Cash Equivalents. These investments primarily consist of high-quality, short-term obligations that are a part of institutional money market mutual funds that are valued using current market quotations or an appropriate substitute that reflects current market conditions. Equities and Equity-Related Instruments. These investments include common stock and equity-related instruments. Common stock is valued at the closing price reported on the active market on which the individual securities are traded. Equity-related instruments include investments in securities traded on exchanges, including listed futures and options, which are valued at the last reported sale prices on the last business day of the year or, if not available, the last reported bid prices. Over-the-counter securities are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes. Delta Common Stock. The Delta common stock investment is managed by an independent fiduciary. Real Assets. These investments include commodities such as precious metals and precious metals-related instruments, some of which are valued at the closing price reported on the active market on which the individual instruments are traded, while others are priced based on pricing models, quoted prices of securities with similar characteristics or broker quotes. The following table summarizes investments measured at fair value based on NAV per share as a practical expedient:
Benefit plan investment assets measured at NAV |  |  |  |  |  |  |
| December 31, 2024 |  | December 31, 2023
(in millions) | Fair Value | Redemption Frequency | Redemption Notice Period |  | Fair Value | Redemption Frequency | Redemption Notice Period
Hedge funds and hedge fund-related strategies | $ | 6,519 |  | (1) | 15-180 Days |  | $ | 6,175 |  | (1) | 7-180 Days
Commingled funds, private equity and private equity-related instruments(4) | 2,351 |  | (1) (2) | 2-45 Days |  | 2,279 |  | (1) (2) | 2-45 Days
Fixed income and fixed income-related instruments(4) | 1,427 |  | (1) (2) | 1-180 Days |  | 1,147 |  | (1) (2) | 1-180 Days
Real assets(4) | 979 |  | (2) | N/A |  | 893 |  | (2) | N/A
Balanced allocation | 349 |  | (5) | 0 Days |  | 100 |  | (5) | 0 Days
Other | 813 |  | (3) | 2-10 Days |  | 823 |  | (3) | 2-10 Days
Total investments measured at NAV | $ | 12,438 |  |  |  |  | $ | 11,417 |  |  |
(1)Various. Includes funds with monthly or more frequent, quarterly and/or custom redemption frequencies as well as funds with a redemption window following the anniversary of the initial investment. (2)Includes private funds that are closed-ended structures in which the plans' investments are generally not eligible for redemption. (3)Includes funds with monthly or more frequent redemptions. (4)Unfunded commitments were $1.3 billion for commingled funds, private equity and private equity-related instruments, $287 million for fixed income and fixed income-related instruments and $618 million for real assets at December 31, 2024. (5)Includes funds with daily redemptions. On an annual basis we assess the potential for adjustments to the fair value of all investments. Due to a lag in the availability of data for certain of these investments (this primarily applies to private equity, private equity-related strategies and real assets), we solicit valuation updates from the investment fund managers and use their information and corroborating data from public markets to determine any needed fair value adjustments. Hedge Funds and Hedge Fund-Related Strategies. These investments are primarily made through shares of limited partnerships or similar structures for which a liquid secondary market does not exist. Commingled Funds, Private Equity and Private Equity-Related Instruments. These investments include commingled funds invested in common stock, as well as private equity and private equity-related instruments. Commingled funds are valued based on quoted market prices of the underlying assets owned by the fund. Private equity and private equity-related instruments are typically valued quarterly by the fund managers using valuation models where one or more of the significant inputs into the model cannot be observed and which require the development of assumptions. Fixed Income and Fixed Income-Related Instruments. These investments include private fixed income instruments that are typically valued monthly or quarterly by the fund managers or third-party valuation agents using valuation models where one or more of significant inputs into the model cannot be observed and which require the development of assumptions. Real Assets. These investments include real estate, energy, timberland, agriculture and infrastructure. The valuation of real assets requires significant judgment due to the absence of quoted market prices as well as the inherent lack of liquidity and the long-term nature of these assets. Real assets are typically valued quarterly by the fund managers using valuation models where one or more of the significant inputs into the model cannot be observed and which require the development of assumptions. Balanced Allocation. The investments include commingled funds invested in common stock and fixed income instruments. Commingled funds are valued based on quoted market prices of the underlying assets owned by the fund. Other. Primarily includes globally-diversified, risk-managed commingled funds consisting mainly of equity, fixed income and commodity exposures. Other We also sponsor defined benefit pension plans for eligible employees in certain foreign countries. These plans did not have a material impact on our Consolidated Financial Statements in any period presented. Profit Sharing Program Our broad-based employee profit sharing program provides that, for each year in which we have an annual pre-tax profit, as defined by the terms of the program, we will pay a specified portion of that profit to employees. In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items. For both the years ended December 31, 2024 and 2023, we recorded profit sharing expense of $1.4 billion under the program.

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