Special Items, Net (Tables)

9 Months Ended

Sep. 30, 2017

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



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Merger integration expenses ⁽¹⁾	$	62		$	194	$	192		$	395
Fleet restructuring expenses ⁽²⁾	62			31		174			72
Mark-to-market adjustments for bankruptcy obligations and other	(12		)	39		7			(22		)
Labor contract expenses ⁽³⁾	—			—		45			—
Other operating charges, net	—			25		14			5
Mainline operating special items, net	112			289		432			450

Regional operating special items, net ⁽⁴⁾	(5		)	5		(1		)	13
Nonoperating special items, net ⁽⁵⁾	3			—		12			36


⁽¹⁾	Merger integration expenses included costs related to information technology, professional fees, re-branding of aircraft and airport facilities and training. Additionally, the 2016 periods also included costs related to alignment of labor union contracts, re-branded uniforms, relocation and severance.


⁽²⁾	Fleet restructuring expenses driven by the Merger principally included the acceleration of aircraft depreciation and impairments for aircraft grounded or expected to be grounded earlier than planned.


⁽³⁾	Labor contract expenses primarily included one-time charges to adjust the vacation accruals for pilots and flight attendants as a result of the mid-contract pay rate adjustments effective in the second quarter of 2017.


⁽⁴⁾	Regional operating special items, net principally related to a gain on the sale of certain aircraft in the 2017 period and Merger integration expenses in the 2016 period.


⁽⁵⁾	Nonoperating special items, net primarily consisted of debt issuance and extinguishment costs associated with term loan refinancings. Additionally, the 2016 nine-month period included costs associated with a bond refinancing.

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



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017		2016
Merger integration expenses ⁽¹⁾	$	62		$	194	$	192	$	395
Fleet restructuring expenses ⁽²⁾	62			31		174		72
Mark-to-market adjustments for bankruptcy obligations and other	(12		)	39		7		(22		)
Labor contract expenses ⁽³⁾	—			—		45		—
Other operating charges, net	—			25		14		5
Mainline operating special items, net	112			289		432		450

Regional operating special items, net ⁽⁴⁾	(1		)	3		3		11
Nonoperating special items, net ⁽⁵⁾	3			—		12		36


⁽¹⁾	Merger integration expenses included costs related to information technology, professional fees, re-branding of aircraft and airport facilities and training. Additionally, the 2016 periods also included costs related to alignment of labor union contracts, re-branded uniforms, relocation and severance.


⁽²⁾	Fleet restructuring expenses driven by the Merger principally included the acceleration of aircraft depreciation and impairments for aircraft grounded or expected to be grounded earlier than planned.


⁽³⁾	Labor contract expenses primarily included one-time charges to adjust the vacation accruals for pilots and flight attendants as a result of the mid-contract pay rate adjustments effective in the second quarter of 2017.


⁽⁴⁾	Regional operating special items, net principally related to Merger integration expenses.


⁽⁵⁾	Nonoperating special items, net primarily consisted of debt issuance and extinguishment costs associated with term loan refinancings. Additionally, the 2016 nine-month period included costs associated with a bond refinancing.