Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

The following table summarizes the historical and revised financial statement amounts for AAG (in millions).



	Year Ended December 31,
	2012						2011
	As Reclassified			Historical			As Reclassified			Historical
Operating revenues:
Mainline passenger	$	18,743		$	18,743		$	17,947		$	17,947
Regional passenger	2,914			2,914			2,724			2,724
Cargo	675			669			709			703
Other	2,523			2,529			2,599			2,605
Total operating revenues	24,855			24,855			23,979			23,979
Operating expenses:
Aircraft fuel and related taxes	7,705			8,717			7,358			8,304
Salaries, wages and benefits	6,217			6,897			6,361			7,053
Regional expenses	3,028			—			3,009			—
Maintenance, materials and repairs	1,158			1,400			1,039			1,284
Other rent and landing fees	1,083			1,304			1,194			1,432
Aircraft rent	553			550			645			662
Selling expenses	1,058			1,050			1,102			1,062
Depreciation and amortization	845			1,015			915			1,086
Special items, net	386			387			756			725
Other	2,674			3,428			2,637			3,425
Total operating expenses	24,707			24,748			25,016			25,033
Operating income (loss)	148			107			(1,037		)	(1,054		)
Nonoperating income (expense):
Interest income	26			26			26			26
Interest expense, net of capitalized interest	(632		)	(612		)	(811		)	(786		)
Other, net	221			242			(39		)	(47		)
Total nonoperating expense, net	$	(385	)	$	(344	)	$	(824	)	$	(807	)

The following table provides information relating to the Company's amortized intangible assets as of December 31, 2013 and 2012 (in millions):



	2013			2012
Airport Slots	$	332		$	515
Customer relationships	300			—
Marketing agreements	105			—
Tradenames	35			—
Airport gate leasehold rights	155			155
Accumulated amortization	(373		)	(509		)
Total	$	554		$	161

The Company expects to record annual amortization expense for the aforementioned definite-life intangible assets as follows (in millions):

The depreciable lives used for the principal depreciable asset classifications are:



Principal Depreciable Asset Classification		Depreciable Life
Jet aircraft and engines		16- 30 years
Other regional aircraft and engines		25 years
Major rotable parts, avionics and assemblies		Fleet end date
Improvements to leased flight equipment		Shorter of asset/leasehold improvement or lease end date
Buildings and improvements		Lesser of 5 - 30 years or lease term
Furniture, fixtures and other equipment		3-10 years: Ranges from computer hardware to furniture
Capitalized software		Lesser of 5 years or lease term

AA [Member]

The following table summarizes the historical and revised financial statement amounts for American (in millions).



	Year Ended December 31,
	2012						2011
	As Reclassified			Historical			As Reclassified			Historical
Operating revenues:
Mainline passenger	$	18,743		$	18,743		$	17,947		$	17,947
Regional passenger	2,914			2,914			2,724			2,724
Cargo	675			669			709			703
Other	2,493			2,499			2,577			2,583
Total operating revenues	24,825			24,825			23,957			23,957
Operating expenses:
Aircraft fuel and related taxes	7,705			8,717			7,358			7,434
Salaries, wages and benefits	6,208			6,242			6,353			6,385
Regional expenses	3,049			1,142			3,099			2,418
Maintenance, materials and repairs	1,158			1,133			1,038			1,020
Other rent and landing fees	1,083			1,286			1,194			1,305
Aircraft rent	554			550			645			673
Selling expenses	1,059			1,050			1,103			1,062
Depreciation and amortization	845			999			915			950
Special items, net	386			386			756			725
Other	2,696			3,279			2,650			3,155
Total operating expenses	24,743			24,784			25,111			25,127
Operating income (loss)	82			41			(1,154		)	(1,170		)
Nonoperating income (expense):
Interest income	25			25			25			25
Interest expense, net of capitalized interest	(633		)	(612		)	(672		)	(649		)
Related-party interest	(13		)	(13		)	(14		)	(14		)
Other, net	223			243			(34		)	(41		)
Total nonoperating expense, net	$	(398	)	$	(357	)	$	(695	)	$	(679	)

The following table provides information relating to the Company's amortized intangible assets as of December 31, 2013 and 2012 (in millions):



	2013			2012
Airport Slots	$	277		$	515
Airport gate leasehold rights	155			155
Accumulated amortization	(375		)	(509		)
Total	$	57		$	161

American expects to record annual amortization expense for the aforementioned definite-life intangible assets as follows (in millions):

The depreciable lives used for the principal depreciable asset classifications are:



Principal Depreciable Asset Classification		Depreciable Life
American jet aircraft and engines		16- 30 years
Other regional aircraft and engines		25 years
Major rotable parts, avionics and assemblies		Fleet end date
Improvements to leased flight equipment		Shorter of asset/leasehold improvement or lease end date
Buildings and improvements (principally on leased land)		Lesser of 5 - 30 years or lease term
Furniture, fixtures and other equipment		3-10 years: Ranges from computer hardware to furniture
Capitalized software		Lesser of 5 years or lease term