Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Schedule of Estimated Useful Lives of Principal Property and Equipment

The estimated useful lives for the principal property and equipment classifications are as follows:



Principal Property and Equipment Classification	Estimated Useful Life
Aircraft, engines and related rotable parts	20 – 30 years
Buildings and improvements	5 – 30 years
Furniture, fixtures and other equipment	3 – 10 years
Capitalized software	5 – 10 years

Schedule of Amortizable Intangible Assets

The following table provides information relating to our amortizable intangible assets as of December 31, 2017 and 2016 (in millions):



	December 31,
	2017			2016
Domestic airport slots	$	365		$	365
Customer relationships	300			300
Marketing agreements	105			105
Tradenames	35			35
Airport gate leasehold rights	137			137
Accumulated amortization	(622		)	(578		)
Total	$	320		$	364

Schedule of Future Amortization Expense

We expect to record annual amortization expense for these intangible assets as follows (in millions):



2018	$	41
2019	41
2020	41
2021	41
2022	41
2023 and thereafter	115
Total	$	320

Components of Regional Expenses

Regional expenses consist of the following (in millions):



	Year Ended December 31,
	2017		2016		2015
Aircraft fuel and related taxes	$	1,382	$	1,109	$	1,230
Salaries, wages and benefits	1,452		1,333		1,187
Capacity purchases from third-party regional carriers ⁽¹⁾	1,581		1,538		1,651
Maintenance, materials and repairs	281		345		323
Other rent and landing fees	625		564		504
Aircraft rent	35		36		34
Selling expenses	361		347		333
Depreciation and amortization	315		301		252
Special items, net	22		14		29
Other	492		457		440
Total regional expenses	$	6,546	$	6,044	$	5,983


⁽¹⁾	For the years ended December 31, 2017, 2016 and 2015, the component of capacity purchase expenses representing the lease of aircraft for accounting purposes was approximately $437 million, $405 million and $492 million, respectively.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The expected effects of adoption of the New Revenue Standard and New Retirement Standard to our statement of operations for the twelve months ended December 31, 2017 are as follows:



				New Revenue Standard						New Retirement Standard
	As Reported			Deferred Revenue Method			Reclassifications			Reclassifications			As Recast
Operating revenues:
Passenger	$	36,133		$	311		$	2,687		$	—		$	39,131
Cargo	800			—			90			—			890
Other	5,274			—			(2,673		)	—			2,601
Total operating revenues	42,207			311			104			—			42,622
Total operating expenses	38,149			—			104			138			38,391
Operating income	4,058			311			—			(138		)	4,231
Total nonoperating expense, net	(974		)	—			—			138			(836		)
Income before income taxes	3,084			311			—			—			3,395
Income tax provision ⁽¹⁾	1,165			948			—			—			2,113
Net income	$	1,919		$	(637	)	$	—		$	—		$	1,282
Diluted earnings per common share	$	3.90											$	2.61


⁽¹⁾	The adjustment to the 2017 income tax provision includes an $830 million special charge to reduce our deferred tax asset associated with loyalty program liabilities as a result of H.R. 1, the 2017 Tax Cuts and Jobs Act (the 2017 Tax Act), enacted in December 2017 that reduced the federal corporate income tax rate from 35% to 21%.

The expected effects of adoption of the New Revenue Standard to our December 31, 2017 balance sheet are as follows:



	As Reported		New Revenue Standard			As Recast
Deferred tax asset	$	427	$	1,389		$	1,816
Air traffic liability	3,978		64			4,042
Current loyalty program liability	2,791		384			3,175
Noncurrent loyalty program liability	—		5,647			5,647
Total stockholders’ equity (deficit)	3,926		(4,706		)	(780		)

American Airlines, Inc. [Member]

Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Schedule of Estimated Useful Lives of Principal Property and Equipment

The estimated useful lives for the principal property and equipment classifications are as follows:



Principal Property and Equipment Classification	Estimated Useful Life
Aircraft, engines and related rotable parts	20 – 30 years
Buildings and improvements	5 – 30 years
Furniture, fixtures and other equipment	3 – 10 years
Capitalized software	5 – 10 years

Schedule of Amortizable Intangible Assets

The following table provides information relating to American’s amortizable intangible assets as of December 31, 2017 and 2016 (in millions):



	December 31,
	2017			2016
Domestic airport slots	$	365		$	365
Customer relationships	300			300
Marketing agreements	105			105
Tradenames	35			35
Airport gate leasehold rights	137			137
Accumulated amortization	(622		)	(578		)
Total	$	320		$	364

Schedule of Future Amortization Expense

American expects to record annual amortization expense for these intangible assets as follows (in millions):



2018	$	41
2019	41
2020	41
2021	41
2022	41
2023 and thereafter	115
Total	$	320

Components of Regional Expenses

Regional expenses consist of the following (in millions):



	Year Ended December 31,
	2017		2016		2015
Aircraft fuel and related taxes	$	1,382	$	1,109	$	1,230
Salaries, wages and benefits	356		327		276
Capacity purchases from third-party regional carriers ⁽¹⁾	3,283		3,186		3,137
Maintenance, materials and repairs	7		4		4
Other rent and landing fees	602		487		434
Aircraft rent	27		28		28
Selling expenses	361		347		333
Depreciation and amortization	262		237		197
Special items, net	3		13		18
Other	289		271		295
Total regional expenses	$	6,572	$	6,009	$	5,952


⁽¹⁾	For the years ended December 31, 2017, 2016 and 2015, the component of capacity purchase expenses representing the lease of aircraft for accounting purposes was approximately $437 million, $405 million and $492 million, respectively.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The expected effects of adoption of the New Revenue Standard and New Retirement Standard to American’s statement of operations for the twelve months ended December 31, 2017 are as follows:



				New Revenue Standard						New Retirement Standard
	As Reported			Deferred Revenue Method			Reclassifications			Reclassifications			As Recast
Operating revenues:
Passenger	$	36,133		$	311		$	2,687		$	—		$	39,131
Cargo	800			—			90			—			890
Other	5,262			—			(2,673		)	—			2,589
Total operating revenues	42,195			311			104			—			42,610
Total operating expenses	38,163			—			104			138			38,405
Operating income	4,032			311			—			(138		)	4,205
Total nonoperating expense, net	(788		)	—			—			138			(650		)
Income before income taxes	3,244			311			—			—			3,555
Income tax provision ⁽¹⁾	1,322			948			—			—			2,270
Net income	$	1,922		$	(637	)	$	—		$	—		$	1,285


⁽¹⁾	The adjustment to the 2017 income tax provision includes an $830 million special charge to reduce American’s deferred tax asset associated with loyalty program liabilities as a result of H.R. 1, the 2017 Tax Cuts and Jobs Act (the 2017 Tax Act), enacted in December 2017 that reduced the federal corporate income tax rate from 35% to 21%.

The expected effects of adoption of the New Revenue Standard to American’s December 31, 2017 balance sheet are as follows:



	As Reported		New Revenue Standard			As Recast
Deferred tax asset	$	682	$	1,389		$	2,071
Air traffic liability	3,978		64			4,042
Current loyalty program liability	2,791		384			3,175
Noncurrent loyalty program liability	—		5,647			5,647
Total stockholder’s equity (deficit)	14,594		(4,706		)	9,888