Special Items, Net (Tables)

9 Months Ended

Sep. 30, 2019

Restructuring Cost and Reserve [Line Items]

Components of Special Items, Net Included in Condensed Consolidated Statements of Operations

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



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019			2018
Fleet impairment ⁽¹⁾	$	201		$	—	$	201		$	—
Fleet restructuring expenses ⁽²⁾	72			101		232			327
Litigation reserve adjustments	(53		)	—		(53		)	45
Merger integration expenses ⁽³⁾	29			68		106			188
Mark-to-market adjustments on bankruptcy obligations, net ⁽⁴⁾	(22		)	17		(18		)	(39		)
Severance expenses ⁽⁵⁾	—			20		7			20
Intangible asset impairment ⁽⁶⁾	—			—		—			26
Labor contract expenses	—			—		—			13
Other operating charges, net	1			1		12			35
Mainline operating special items, net	228			207		487			615

Regional operating special items, net	6			2		6			1

Mark-to-market adjustments on equity and other investments, net ⁽⁷⁾	45			15		37			82
Debt refinancing and extinguishment charges	7			—		14			13
Other nonoperating income, net	(8		)	—		(8		)	—
Nonoperating special items, net	44			15		43			95

Income tax special items, net ⁽⁸⁾	—			—		—			40


⁽¹⁾	Fleet impairment includes a non-cash write-down of aircraft related to the planned retirement of our Embraer E190 fleet.


⁽²⁾	Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment grounded or expected to be grounded earlier than planned.


⁽³⁾	Merger integration expenses included costs associated with integration projects, principally our technical operations, flight attendant, human resources and payroll systems.


⁽⁴⁾	Bankruptcy obligations that will be settled in shares of our common stock are marked-to-market based on our stock price.


⁽⁵⁾	Severance expenses primarily included costs associated with reductions of management and support staff team members.


⁽⁶⁾	Intangible asset impairment includes a non-cash charge to write-off our Brazil route authority as a result of the U.S.-Brazil open skies agreement.


⁽⁷⁾	Mark-to-market adjustments on equity and other investments, net primarily relates to net unrealized losses associated with our equity investment in China Southern Airlines Company Limited (China Southern Airlines).

⁽⁸⁾

Income tax special items, net for the nine months ended September 30, 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

American Airlines, Inc. [Member]

Restructuring Cost and Reserve [Line Items]

Components of Special Items, Net Included in Condensed Consolidated Statements of Operations

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



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019			2018
Fleet impairment ⁽¹⁾	$	201		$	—	$	201		$	—
Fleet restructuring expenses ⁽²⁾	72			101		232			327
Litigation reserve adjustments	(53		)	—		(53		)	45
Merger integration expenses ⁽³⁾	29			68		106			188
Mark-to-market adjustments on bankruptcy obligations, net ⁽⁴⁾	(22		)	17		(18		)	(39		)
Severance expenses ⁽⁵⁾	—			20		7			20
Intangible asset impairment ⁽⁶⁾	—			—		—			26
Labor contract expenses	—			—		—			13
Other operating charges, net	1			1		12			35
Mainline operating special items, net	228			207		487			615

Mark-to-market adjustments on equity and other investments, net ⁽⁷⁾	45			15		37			82
Debt refinancing and extinguishment charges	7			—		14			13
Nonoperating special items, net	52			15		51			95

Income tax special items, net ⁽⁸⁾	—			—		—			48


⁽¹⁾	Fleet impairment includes a non-cash write-down of aircraft related to the planned retirement of American's Embraer E190 fleet.


⁽²⁾	Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment grounded or expected to be grounded earlier than planned.


⁽³⁾	Merger integration expenses included costs associated with integration projects, principally American's technical operations, flight attendant, human resources and payroll systems.


⁽⁴⁾	Bankruptcy obligations that will be settled in shares of AAG common stock are marked-to-market based on AAG's stock price.


⁽⁵⁾	Severance expenses primarily included costs associated with reductions of management and support staff team members.


⁽⁶⁾	Intangible asset impairment includes a non-cash charge to write-off American's Brazil route authority as a result of the U.S.-Brazil open skies agreement.


⁽⁷⁾	Mark-to-market adjustments on equity and other investments, net primarily relates to net unrealized losses associated with American's equity investment in China Southern Airlines Company Limited (China Southern Airlines).

⁽⁸⁾