Financial Information for Subsidiary Guarantors and Non-guarantor Subsidiaries (Tables)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statement of Operations

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In millions)(Unaudited)

	Three Months Ended March 31, 2015
	American Airlines Group (Parent Company Only)			American			US Airways Group (Parent Company Only)			US Airways			Non- Guarantor Subsidiaries		Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
Operating revenues:
Mainline passenger	$	—		$	4,690		$	—		$	2,299		$	—	$	—		$	6,989
Regional passenger		—			699			—			753			—		—			1,452
Cargo		—			162			—			32			—		—			194
Other		—			818			—			389			726		(741	)		1,192
Total operating revenues					6,369			—			3,473			726		(741	)		9,827
Operating expenses:
Aircraft fuel and related taxes		—			1,070			—			474			—		—			1,544
Salaries, wages and benefits		—			1,585			—			786			193		(191	)		2,373
Regional expenses		—			728			—			765			—		(31	)		1,462
Maintenance, materials and repairs		—			304			—			190			75		(75	)		494
Other rent and landing fees		—			270			—			138			10		(10	)		408
Aircraft rent		—			225			—			92			32		(32	)		317
Selling expenses		—			235			—			101			—		—			336
Depreciation and amortization		—			236			—			100			11		(11	)		336
Special items, net		—			198			—			105			4		(4	)		303
Other		1			758			—			281			385		(387	)		1,038
Total operating expenses		1			5,609			—			3,032			710		(741	)		8,611
Operating income (loss)		(1	)		760			—			441			16		—			1,216
Nonoperating income (expense):
Interest income		2			6			—			4			—		(2	)		10
Interest expense, net		(13	)		(126	)		(9	)		(64	)		—		2			(210	)
Equity in earnings of subsidiaries		944			—			251			—			—		(1,195	)		—
Other, net		—			(63	)		—			(11	)		1		—			(73	)
Total nonoperating income (expense), net		933			(183	)		242			(71	)		1		(1,195	)		(273	)
Income before income taxes		932			577			242			370			17		(1,195	)		943
Income tax provision		—			8			—			131			3		(131	)		11
Net income	$	932		$	569		$	242		$	239		$	14	$	(1,064	)	$	932

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(In millions)(Unaudited)

	Three Months Ended March 31, 2014
	American Airlines Group (Parent Company Only)			American			US Airways Group (Parent Company Only)			US Airways			Non- Guarantor Subsidiaries			Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
Operating revenues:
Mainline passenger	$	—		$	4,906		$	—		$	2,352		$	—		$	—		$	7,258
Regional passenger		—			669			—			738			—			—			1,407
Cargo		—			168			—			38			—			—			206
Other		—			726			—			418			744			(764	)		1,124
Total operating revenues		—			6,469			—			3,546			744			(764	)		9,995
Operating expenses:
Aircraft fuel and related taxes		—			1,871			—			840			—			—			2,711
Salaries, wages and benefits		—			1,398			—			719			197			(195	)		2,119
Regional expenses		—			758			—			828			—			8			1,594
Maintenance, materials and repairs		—			332			—			153			85			(85	)		485
Other rent and landing fees		—			285			—			139			7			(7	)		424
Aircraft rent		—			216			—			104			21			(21	)		320
Selling expenses		—			284			—			117			—			—			401
Depreciation and amortization		—			214			—			95			10			(12	)		307
Special items, net		24			(216	)		—			55			3			(3	)		(137	)
Other		2			749			—			308			431			(449	)		1,041
Total operating expenses		26			5,891			—			3,358			754			(764	)		9,265
Operating income (loss)		(26	)		578			—			188			(10	)		—			730
Nonoperating income (expense):
Interest income		2			7			—			1			1			(4	)		7
Interest expense, net		(4	)		(168	)		(10	)		(65	)		—			4			(243	)
Equity in earnings of subsidiaries		453			—			118			—			—			(571	)		—
Other, net		—			(5	)		(56	)		3			1			56			(1	)
Total nonoperating income (expense), net		451			(166	)		52			(61	)		2			(515	)		(237	)
Income (loss) before income taxes		425			412			52			127			(8	)		(515	)		493
Income tax provision		1			11			—			1			—			—			13
Net income (loss)	$	424		$	401		$	52		$	126		$	(8	)	$	(515	)	$	480

Condensed Consolidating Statement of Comprehensive Income (Loss)

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In millions)(Unaudited)

	Three Months Ended March 31, 2015
	American Airlines Group (Parent Company Only)		American			US Airways Group (Parent Company Only)		US Airways			Non- Guarantor Subsidiaries		Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
Net income	$	932	$	569		$	242	$	239		$	14	$	(1,064	)	$	932
Other comprehensive income (loss) before tax:
Defined benefit pension plans and retiree medical		—		(26	)		—		(1	)		—		—			(27	)
Derivative financial instruments:
Change in fair value		—		—			—		—			—		—			—
Reclassification into earnings		—		(6	)		—		—			—		—			(6	)
Unrealized gain on investments:
Net change in value		—		1			—		1			—		—			2
Other comprehensive loss before tax		—		(31	)		—		—			—		—			(31	)
Non-cash tax provision		—		—			—		—			—		—			—
Comprehensive income	$	932	$	538		$	242	$	239		$	14	$	(1,064	)	$	901

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In millions)(Unaudited)

	Three Months Ended March 31, 2014
	American Airlines Group (Parent Company Only)		American			US Airways Group (Parent Company Only)		US Airways			Non- Guarantor Subsidiaries			Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
Net income (loss)	$	424	$	401		$	52	$	126		$	(8	)	$	(515	)	$	480
Other comprehensive loss before tax:
Defined benefit pension plans and retiree medical		—		(44	)		—		(1	)		—			—			(45	)
Derivative financial instruments:
Change in fair value		—		(67	)		—		—			—			—			(67	)
Reclassification into earnings		—		7			—		—			—			—			7
Unrealized gain on investments:
Net change in value		—		2			—		—			—			—			2
Other comprehensive loss before tax		—		(102	)		—		(1	)		—			—			(103	)
Non-cash tax provision		—		—			—		—			—			—			—
Comprehensive income (loss)	$	424	$	299		$	52	$	125		$	(8	)	$	(515	)	$	377

Condensed Consolidating Balance Sheet

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions)(Unaudited)

	March 31, 2015
	American Airlines Group (Parent Company Only)			American			US Airways Group (Parent Company Only)			US Airways			Non- Guarantor Subsidiaries			Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
ASSETS
Current assets
Cash	$	1		$	884		$	5		$	153		$	5		$	—		$	1,048
Short-term investments		—			4,853			—			3,270			2			—			8,125
Restricted cash and short-term investments		—			646			—			111			—			—			757
Accounts receivable, net		—			1,437			—			383			19			(13	)		1,826
Receivables from related parties, net		2,409			—			—			242			—			(2,651	)		—
Aircraft fuel, spare parts and supplies, net		—			623			—			298			74			—			995
Prepaid expenses and other		79			635			—			623			41			—			1,378
Total current assets		2,489			9,078			5			5,080			141			(2,664	)		14,129
Operating property and equipment		—			17,130			—			6,627			285			—			24,042
Other assets
Investments in subsidiaries		1,636			—			7,145			—			—			(8,781	)		—
Goodwill		—			—			—			4,089			—			2			4,091
Intangibles, net of accumulated amortization		—			872			—			1,409			—			—			2,281
Other assets		58			1,885			—			256			47			(35	)		2,211
Total other assets		1,694			2,757			7,145			5,754			47			(8,814	)		8,583
Total assets	$	4,183		$	28,965		$	7,150		$	17,461		$	473		$	(11,478	)	$	46,754
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Current maturities of long-term debt and capital leases	$	—		$	802		$	—		$	482		$	—		$	—		$	1,284
Accounts payable		—			1,175			—			362			52			(2	)		1,587
Payables to related parties, net		—			2,168			480			—			3			(2,651	)		—
Air traffic liability		—			3,691			—			1,724			—			—			5,415
Frequent flyer liability		—			2,776			—			—			—			—			2,776
Other accrued liabilities		39			1,835			11			1,164			124			(2	)		3,171
Total current liabilities		39			12,447			491			3,732			179			(2,655	)		14,233
Noncurrent liabilities
Long-term debt and capital leases, net of current maturities		1,257			10,972			524			4,919			—			(34	)		17,638
Pension and postretirement benefits		—			7,355			—			122			40			—			7,517
Bankruptcy settlement obligations		—			275			—			—			—			—			275
Other liabilities		123			2,868			—			1,599			44			(307	)		4,327
Total noncurrent liabilities		1,380			21,470			524			6,640			84			(341	)		29,757
Stockholders’ equity (deficit)
Common stock		7			—			—			—			—			—			7
Additional paid-in capital		15,049			10,714			4,727			5,566			199			(21,206	)		15,049
Accumulated other comprehensive loss		(4,590	)		(4,676	)		(16	)		(8	)		(12	)		4,712			(4,590	)
Retained earnings (deficit)		(7,702	)		(10,990	)		1,424			1,531			23			8,012			(7,702	)
Total stockholders’ equity (deficit)		2,764			(4,952	)		6,135			7,089			210			(8,482	)		2,764
Total liabilities and stockholders’ equity (deficit)	$	4,183		$	28,965		$	7,150		$	17,461		$	473		$	(11,478	)	$	46,754

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(In millions)(Unaudited)

	December 31, 2014
	American Airlines Group (Parent Company Only)			American			US Airways Group (Parent Company Only)			US Airways			Non- Guarantor Subsidiaries			Eliminations and Reclassifications			American Airlines Group Inc. Consolidated
ASSETS
Current assets
Cash	$	1		$	785		$	2		$	199		$	7		$	—		$	994
Short-term investments		—			3,290			—			3,016			3			—			6,309
Restricted cash and short-term investments		—			650			—			124			—			—			774
Accounts receivable, net		—			1,445			—			324			15			(13	)		1,771
Receivables from related parties, net		1,893			—			157			933			526			(3,509	)		—
Aircraft fuel, spare parts and supplies, net		—			625			—			294			85			—			1,004
Prepaid expenses and other		—			462			—			912			41			(155	)		1,260
Total current assets		1,894			7,257			159			5,802			677			(3,677	)		12,112
Operating property and equipment		—			16,299			—			6,506			279			—			23,084
Other assets
Investments in subsidiaries		847			—			6,870			—			—			(7,717	)		—
Goodwill		—			—			—			4,090			—			1			4,091
Intangibles, net of accumulated amortization		—			815			—			1,425			—			—			2,240
Other assets		53			1,921			—			267			38			(35	)		2,244
Total other assets		900			2,736			6,870			5,782			38			(7,751	)		8,575
Total assets	$	2,794		$	26,292		$	7,029		$	18,090		$	994		$	(11,428	)	$	43,771
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Current maturities of long-term debt and capital leases	$	—		$	1,230		$	—		$	477		$	1		$	—		$	1,708
Accounts payable		—			1,029			—			287			61			—			1,377
Payables to related parties, net		—			2,563			634			73			239			(3,509	)		—
Air traffic liability		—			2,989			—			1,263			—			—			4,252
Frequent flyer liability		—			1,823			—			984			—			—			2,807
Other accrued liabilities		14			1,886			3			1,253			138			(3	)		3,291
Total current liabilities		14			11,520			637			4,337			439			(3,512	)		13,435
Noncurrent liabilities
Long-term debt and capital leases, net of current maturities		758			10,004			524			4,945			—			(35	)		16,196
Pension and postretirement benefits		—			7,400			—			122			40			—			7,562
Mandatorily convertible preferred stock and other bankruptcy settlement obligations		—			325			—			—			—			—			325
Other liabilities		1			2,615			—			1,861			317			(562	)		4,232
Total noncurrent liabilities		759			20,344			524			6,928			357			(597	)		28,315
Stockholders’ equity (deficit)
Common stock		7			—			—			—			—			—			7
Additional paid-in capital		15,135			10,632			4,703			5,542			199			(21,076	)		15,135
Accumulated other comprehensive loss		(4,559	)		(4,645	)		(16	)		(8	)		(12	)		4,681			(4,559	)
Retained earnings (deficit)		(8,562	)		(11,559	)		1,181			1,291			11			9,076			(8,562	)
Total stockholders’ equity (deficit)		2,021			(5,572	)		5,868			6,825			198			(7,319	)		2,021
Total liabilities and stockholders’ equity (deficit)	$	2,794		$	26,292		$	7,029		$	18,090		$	994		$	(11,428	)	$	43,771

Condensed Consolidating Statement of Cash Flows

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In millions)(Unaudited)

	Three Months Ended March 31, 2015
	American Airlines Group (Parent Company Only)			American			US Airways Group (Parent Company Only)		US Airways			Non- Guarantor Subsidiaries			Eliminations and Reclassifications		American Airlines Group Inc. Consolidated
Net cash provided by (used in) operating activities	$	(242	)	$	2,285		$	3	$	430		$	18		$	—	$	2,494
Cash flows from investing activities:
Capital expenditures and aircraft purchase deposits		—			(1,160	)		—		(229	)		(20	)		—		(1,409	)
Purchases of short-term investments		—			(1,945	)		—		(1,529	)		—			—		(3,474	)
Sales of short-term investments		—			382			—		1,278			—			—		1,660
Decrease in restricted cash and short-term investments		—			4			—		13			—			—		17
Proceeds from sale of property and equipment		—			4			—		—			—			—		4
Net cash used in investing activities		—			(2,715	)		—		(467	)		(20	)		—		(3,202	)
Cash flows from financing activities:
Payments on long-term debt and capital leases		—			(680	)		—		(66	)		—			—		(746	)
Proceeds from issuance of long-term debt		500			1,227			—		39			—			—		1,766
Deferred financing costs		(7	)		(18	)		—		—			—			—		(25	)
Treasury stock repurchases		(181	)		—			—		—			—			—		(181	)
Dividend payment		(70	)		—			—		—			—			—		(70	)
Other financing activities		—			—			—		18			—			—		18
Net cash provided by (used in) financing activities		242			529			—		(9	)		—			—		762
Net increase (decrease) in cash		—			99			3		(46	)		(2	)		—		54
Cash at beginning of period		1			785			2		199			7			—		994
Cash at end of period	$	1		$	884		$	5	$	153		$	5		$	—	$	1,048

AMERICAN AIRLINES GROUP INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(In millions)(Unaudited)

	Three Months Ended March 31, 2014
	American Airlines Group (Parent Company Only)			American			US Airways Group (Parent Company Only)		US Airways			Non- Guarantor Subsidiaries			Eliminations and Reclassifications		American Airlines Group Inc. Consolidated
Net cash provided by (used in) operating activities	$	(9	)	$	742		$	—	$	515		$	8		$	—	$	1,256
Cash flows from investing activities:
Capital expenditures and aircraft purchase deposits		—			(722	)		—		(316	)		(9	)		—		(1,047	)
Purchases of short-term investments		—			(499	)		—		(677	)		—			—		(1,176	)
Sales of short-term investments		—			682			—		200			—			—		882
Decrease in restricted cash and short-term investments		—			3			—		85			—			—		88
Net proceeds from slot transaction		—			299			—		8			—			—		307
Proceeds from sale of property and equipment		—			3			—		—			—			—		3
Net cash used in investing activities		—			(234	)		—		(700	)		(9	)		—		(943	)
Cash flows from financing activities:
Payments on long-term debt and capital leases		—			(430	)		—		(71	)		—			—		(501	)
Proceeds from issuance of long-term debt		—			—			—		224			—			—		224
Deferred financing costs		—			(5	)		—		(2	)		—			—		(7	)
Sale-leaseback transactions		—			165			—		—			—			—		165
Exercise of stock options		9			—			—		—			—			—		9
Treasury stock repurchases		(84	)		—			—		—			—			—		(84	)
Funds transferred from (to) affiliates, net		84			(84	)		—		—			—			—		—
Net cash provided by (used in) financing activities		9			(354	)		—		151			—			—		(194	)
Net increase (decrease) in cash		—			154					(34	)		(1	)		—		119
Cash at beginning of period		1			829			1		303			6			—		1,140
Cash at end of period	$	1		$	983		$	1	$	269		$	5		$	—	$	1,259