SPECIAL CHARGES AND MARK-TO-MARKET ("MTM") ADJUSTMENTS

For the three months ended March 31, special charges and MTM adjustments consisted of the following (in millions):



	Three Months Ended March 31,
Operating:	2019			2018
Impairment of assets	$	8		$	23
Severance and benefit costs	6			14
(Gains) losses on sale of assets and other special charges	4			3
Total operating special charges	18			40
Nonoperating MTM gains on financial instruments	(17		)	(45		)
Total special charges and MTM gains on financial instruments	1			(5		)
Income tax expense	—			1
Total special charges and MTM gains on financial instruments, net of income tax	$	1		$	(4	)

During the three months ended March 31, 2019, the Company recorded an $8 million fair value adjustment for aircraft purchased off lease.

During the three months ended March 31, 2019, the Company recorded severance and benefit costs related to a voluntary early-out program for its technicians and related employees represented by the International Brotherhood of Teamsters (the "IBT") of $2 million. In the first quarter of 2017, approximately 1,000 technicians and related employees elected to voluntarily separate from the Company and received a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through early 2019. Also during the three months ended March 31, 2019, the Company recorded management severance of $4 million.

During the three months ended March 31, 2019, the Company recorded gains of $14 million for the change in market value of its investment in Azul. Also, the Company recorded gains of $3 million for the change in fair value of certain derivative assets related to equity of AVH. For equity investments and derivative assets subject to MTM accounting, the Company records gains and losses as part of Nonoperating income (expense): Miscellaneous, net in its statements of consolidated operations.

During the three months ended March 31, 2018, the Company recorded a $23 million fair value adjustment for aircraft purchased off lease and impairments related to certain fleet types and certain international slots no longer in use.

During the three months ended March 31, 2018, the Company recorded severance and benefit costs related to the early out program described above and management severance of $8 million and $6 million, respectively.

During the three months ended March 31, 2018, the Company recorded a gain of $45 million for the change in market value of its investment in Azul.