Special Items, Net (Tables)

3 Months Ended

Mar. 31, 2019

Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):



	Three Months Ended March 31,
	2019			2018
Fleet restructuring expenses ⁽¹⁾	$	83		$	112
Merger integration expenses ⁽²⁾	37			59
Litigation settlement	—			40
Labor contract expenses	—			13
Other operating charges, net	18			1
Mainline operating special items, net	138			225

Mark-to-market adjustments on equity investments, net ⁽³⁾	(76		)	—
Other nonoperating charges, net	7			—
Nonoperating special items, net	(69		)	—

Income tax special items, net ⁽⁴⁾	—			22


⁽¹⁾	Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment grounded or expected to be grounded earlier than planned.


⁽²⁾	Merger integration expenses included costs associated with integration projects, principally our technical operations, flight attendant, human resources and payroll systems.


⁽³⁾	Mark-to-market adjustments on equity investments relate to net unrealized gains primarily associated with our equity investment in China Southern Airlines Company Limited (China Southern Airlines).


⁽⁴⁾	Income tax special items for the three months ended March 31, 2018 included a $22 million charge to income tax expense to establish a required valuation allowance related to our estimated refund for Alternative Minimum Tax (AMT) credits

Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):



	Three Months Ended March 31,
	2019			2018
Fleet restructuring expenses ⁽¹⁾	$	83		$	112
Merger integration expenses ⁽²⁾	37			59
Litigation settlement	—			40
Labor contract expenses	—			13
Other operating charges, net	18			1
Mainline operating special items, net	138			225

Mark-to-market adjustments on equity investments, net ⁽³⁾	(76		)	—
Other nonoperating charges, net	7			—
Nonoperating special items, net	(69		)	—

Income tax special items, net ⁽⁴⁾	—			30


⁽¹⁾	Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment grounded or expected to be grounded earlier than planned.


⁽²⁾	Merger integration expenses included costs associated with integration projects, principally American's technical operations, flight attendant, human resources and payroll systems.


⁽³⁾	Mark-to-market adjustments on equity investments relate to net unrealized gains primarily associated with American's equity investment in China Southern Airlines Company Limited (China Southern Airlines).


⁽⁴⁾	Income tax special items for the three months ended March 31, 2018 included a $30 million charge to income tax expense to establish a required valuation allowance related to American's estimated refund for Alternative Minimum Tax (AMT) credits.