6. Indebtedness

Long-term debt classified as not subject to compromise consisted of (in millions):


	March 31, 2012		December 31, 2011
Secured variable and fixed rate indebtedness due through 2023 (effective rates from 1.00%—13.00% at March 31, 2012)	$	2,958	$	2,952
Enhanced equipment trust certificates due through 2021 (rates from 5.10%—10.375% at March 31, 2012)		1,891		1,942
6.00%—8.50% special facility revenue bonds due through 2036		1,437		1,436
7.50% senior secured notes due 2016		1,000		1,000

AAdvantage Miles advance purchase (net of discount of $110 million) (effective rate 8.3%)		882		890
6.25% senior convertible notes due 2014		—		—
9.0%—10.20% debentures due through 2021		—		—
7.88%—10.55% notes due through 2039		—		—

		8,168		8,220

Less current maturities		1,593		1,518


Long-term debt, less current maturities	$	6,575	$	6,702

The financings listed in the table above are considered not subject to compromise. For information regarding the liabilities subject to compromise, see Note 1 to the Condensed Consolidated Financial Statements.

The Company's future long-term debt and operating lease payments have changed as its ordered aircraft are delivered and such deliveries have been financed. As of March 31, 2012, maturities of long-term debt (including sinking fund requirements) for the next five years are:


Years Ending December 31 (in millions)	Principal Not Subject to Compromise	Principal Subject to Compromise	Total Principal Amount
Remainder of 2012	$1,273	$184	$1,457
2013	898	193	1,091
2014	761	639	1,400
2015	664	162	826
2016	1,645	227	1,872

Future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of a year as of March 31, 2012, were: remainder of 2012 – $701 million, 2013 – $897 million, 2014 – $823 million, 2015 – $731 million, 2016 – $661 million, and 2017 and beyond – $4.6 billion.

As of March 31, 2012, AMR had issued guarantees covering approximately $1.6 billion of American's tax-exempt bond debt (and interest thereon) and $4.2 billion of American's secured debt (and interest thereon). American had issued guarantees covering approximately $842 million of AMR's unsecured debt (and interest thereon). AMR also guarantees $10.5 million of American's leases of certain Super ATR aircraft, which are subleased to AMR Eagle.

In July 2011, American entered into a sale-leaseback arrangement with a leasing company to finance 35 Boeing 737-800 aircraft scheduled to be delivered in 2011 through 2014. The financing of each aircraft under this arrangement will be subject to certain terms and conditions. As of the end of the first quarter of 2012, American had financed 21 Boeing 737-800 aircraft under this and other arrangements, which are accounted for as operating leases.

Certain of the Company's debt financing agreements contain loan to value ratio covenants and require the Company to periodically appraise the collateral. Pursuant to such agreements, if the loan to value ratio exceeds a specified threshold, the Company is required to subject additional qualifying collateral (which in some cases may include cash collateral) or, in the alternative, to pay down such financing, in whole or in part, with premium (if any).

Specifically, the Company is required to meet certain collateral coverage tests on a periodic basis on three financing transactions: (1) 10.5% $450 million Senior Secured Notes due 2012 (the 10.5% Notes), (2) Senior Secured Notes, and (3) 2005 Spare Engine EETC due in 2012, as described below:


	(1) 10.5% Notes		(2) Senior Secured Notes	(3) 2005 Spare Engine EETC
Frequency of Appraisals	Semi-Annual (April and October)		Semi-Annual (June and December, commencing December 2011)	Semi-Annual (April and October)

LTV Requirement	43%; failure to meet collateral test requires posting of additional collateral		1.5x Collateral valuation to amount of debt outstanding (67% LTV); failure to meet collateral test results in American paying 2% additional interest until the ratio is at least 1.5x; additional collateral can be posted to meet this requirement	32.8% applicable to the one Tranche only; failure to meet collateral test requires posting of additional cash collateral

LTV as of Last Measurement Date	44.1%		65.5%	31.8%
Collateral Description	143 aircraft consisting of:
	Type	# of Aircraft	Generally, certain route authorities, take-off and landing slots, and rights to airport facilities used by American to operate certain services between the U.S. and London Heathrow, Tokyo Narita/ Haneda, and China	87 spare aircraft engines consisting of:
	MD-80	74		Engine/Associated Aircraft	# of Engines
	B757-200	41		JT8D-219/MD-80	47
	B767-200ER	3		RB211-535E4B/B757-200	22
	B767-300ER	25		CF6-80A/B767-200ER	3
	TOTAL	143		CF6-80C2 B6/B767-300ER	12
				CF6-80C2 A5/A300	3
				TOTAL	87

At March 31, 2012, the Company was in compliance with the most recently completed collateral coverage tests for the Senior Secured Notes and the 2005 Spare Engine EETC, and was not in compliance with the most recently completed collateral coverage test for the 10.5% Notes. The Company has not remedied its non-compliance with that test due to the ongoing Chapter 11 proceedings.

Almost all of the Company's aircraft assets (including aircraft and aircraft-related assets eligible for the benefits of Section 1110 of the U.S. Bankruptcy Code) are encumbered, and the Company has a very limited quantity of assets which could be used as collateral in financing.

The Chapter 11 petitions triggered defaults on substantially all debt obligations of the Debtors. However, under Section 362 of the Bankruptcy Code, the commencement of a Chapter 11 case automatically stays most creditor actions against the Debtors' estates.

The Debtors cannot predict the impact, if any, that the Chapter 11 Cases might have on these obligations. For further information regarding the Chapter 11 Cases, see Note 1 to the Condensed Consolidated Financial Statements.