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Special Items (Tables)
 3 Months Ended
Mar. 31, 2015
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 March 31,  
     2015      2014  

Mainline operating special items, net (a)

    $ 303       $ (137 ) 

 

 

(a) 

The 2015 first quarter mainline operating special items totaled a net charge of $303 million, which principally included $216 million of merger integration expenses related to information technology, professional fees, severance, share-based compensation, fleet restructuring, re-branding of aircraft and airport facilities, relocation and training. In addition, the Company recorded a net $99 million charge principally related to its new pilot joint collective bargaining agreement. These charges were offset in part by a net $6 million credit for bankruptcy related items primarily consisting of fair value adjustments for bankruptcy settlement obligations.

The 2014 first quarter mainline operating special items totaled a net credit of $137 million, which principally included a $309 million gain on the sale of Slots at Ronald Reagan Washington National Airport and a net $32 million credit for bankruptcy related items primarily consisting of fair value adjustments for bankruptcy settlement obligations. These special credits were offset in part by $202 million of merger integration expenses related to alignment of labor union contracts, information technology, professional fees, severance and retention, share-based compensation, re-branding of aircraft and airport facilities, relocation and training.

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

 

     Three Months Ended March 31,  
     2015      2014  

Regional operating special items, net(a)

    $ 7       $ 4   

Nonoperating special items, net (b)

      (8 )       47   

Income tax special items, net (c)

      9         8   

 

(a) 

The 2015 and 2014 first quarter regional operating special items principally related to merger integration expenses.

 

(b) 

The 2015 first quarter nonoperating special items totaled a net credit of $8 million primarily due to a $17 million early debt extinguishment gain associated with the repayment of American’s AAdvantage loan with Citibank, offset in part by a $9 million charge principally related to a non-cash write off of unamortized debt discount associated with the prepayment of certain aircraft financings.

The 2014 first quarter nonoperating special items totaled a net charge of $47 million principally due to non-cash interest accretion of $31 million on the bankruptcy settlement obligations and $13 million for Venezuelan foreign currency losses.

 

(c) 

The 2015 and 2014 first quarter tax special items were the result of a non-cash deferred income tax provision related to certain indefinite-lived intangible assets.
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 March 31,  
     2015      2014  

Mainline operating special items, net (a)

    $ 198       $ (216 ) 

 

(a) 

The 2015 first quarter mainline operating special items totaled a net charge of $198 million, which principally included $148 million of merger integration expenses related to information technology, professional fees, severance, share-based compensation, fleet restructuring, re-branding of aircraft and airport facilities, relocation and training. In addition, American recorded a net $64 million charge principally related to its new pilot joint collective bargaining agreement. These charges were offset in part by a net $6 million credit for bankruptcy related items primarily consisting of fair value adjustments for bankruptcy settlement obligations.

The 2014 first quarter mainline operating special items totaled a net credit of $216 million, which principally included a $305 million gain on the sale of Slots at Ronald Reagan Washington National Airport and a net $56 million credit for bankruptcy related items primarily consisting of fair value adjustments for bankruptcy settlement obligations. These special credits were offset in part by $134 million of merger integration expenses related to alignment of labor union contracts, information technology, professional fees, severance and retention, share-based compensation, re-branding of aircraft and airport facilities, relocation and training.

 

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

 

     Three Months Ended March 31,  
     2015      2014  

Regional operating special items, net(a)

    $ 2       $ 1   

Nonoperating special items, net (b)

      (8 )       44   

Income tax special items, net (c)

      8         7   

 

(a) 

The 2015 and 2014 first quarter regional operating special items principally related to merger integration expenses.
(b) 

The 2015 first quarter nonoperating special items totaled a net credit of $8 million primarily due to a $17 million early debt extinguishment gain associated with the repayment of American’s AAdvantage loan with Citibank, offset in part by a $9 million charge principally related to a non-cash write off of unamortized debt discount associated with the prepayment of certain aircraft financings.

The 2014 first quarter nonoperating special items totaled a net charge of $44 million principally due to non-cash interest accretion of $27 million on the bankruptcy settlement obligations and $13 million for Venezuelan foreign currency losses.

 

(c) 

The 2015 and 2014 first quarter tax special items were the result of a non-cash deferred income tax provision related to certain indefinite-lived intangible assets.