Special Items (Tables)

6 Months Ended

Jun. 30, 2016

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

Special items, net on the condensed consolidated statements of operations are as follows (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Mainline operating special items, net ⁽¹⁾	$	62	$	144	$	161	$	447

⁽¹⁾

The 2016 second quarter mainline operating special items totaled a net charge of $62 million, which principally included $112 million of merger integration expenses, offset in part by a $56 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. The 2016 six month period mainline operating special items totaled a net charge of $161 million, which principally included $242 million of merger integration expenses, offset in part by a $61 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. For the 2016 second quarter and six month periods, merger integration expenses included costs related to information technology, alignment of labor union contracts, fleet restructuring, re-branding of aircraft, airport facilities and uniforms, professional fees, severance, as well as relocation and training.

The 2015 second quarter mainline operating special items totaled a net charge of $144 million, which principally included $224 million of merger integration expenses, offset in part by a $68 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. The 2015 six month period mainline operating special items totaled a net charge of $447 million, which principally included $543 million of merger integration expenses, offset in part by a $73 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. For the 2015 second quarter and six month periods, merger integration expenses included costs related to alignment of labor union contracts, fleet restructuring, information technology, professional fees, severance, re-branding of aircraft, airport facilities and uniforms, relocation and training, as well as share-based compensation.

The following additional amounts are also included in the condensed consolidated statements of operations as follows (in millions):


	Three Months Ended June 30,					Six Months Ended June 30,
	2016		2015			2016		2015
Regional operating special items, net	$	3	$	10		$	8	$	18
Nonoperating special items, net ⁽¹⁾		36		(11	)		36		(19	)
Income tax special items, net		—		7			—		16

⁽¹⁾	In connection with a bond refinancing, we recorded a $36 million nonoperating special charge in the 2016 second quarter and six month periods related to non-cash write offs of unamortized bond discounts and issuance costs as well as payments of redemption premiums and fees.

American Airlines, Inc. [Member]

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

Special items, net on the condensed consolidated statements of operations are as follows (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Mainline operating special items, net ⁽¹⁾	$	62	$	144	$	161	$	447

⁽¹⁾

The following additional amounts are also included in the condensed consolidated statements of operations as follows (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Regional operating special items, net	$	3	$	5	$	8	$	9
Nonoperating special items, net ⁽¹⁾		36		11		36		3
Income tax special items, net		—		7		—		16

⁽¹⁾	In connection with a bond refinancing, American recorded a $36 million nonoperating special charge in the 2016 second quarter and six month periods related to non-cash write offs of unamortized bond discounts and issuance costs as well as payments of redemption premiums and fees.