Fair Value Measurements and Other Investments (Tables)

12 Months Ended

Dec. 31, 2018

Assets measured at fair value on a recurring basis are summarized below (in millions):



	Fair Value Measurements as of December 31, 2018
	Total		Level 1		Level 2		Level 3
Short-term investments ⁽¹⁾ ⁽²⁾:
Money market funds	$	16	$	16	$	—	$	—
Corporate obligations	1,658		—		1,658		—
Bank notes/certificates of deposit/time deposits	2,436		—		2,436		—
Repurchase agreements	375		—		375		—
	4,485		16		4,469		—
Restricted cash and short-term investments ⁽¹⁾	154		12		142		—
Long-term investments ⁽³⁾	189		189		—		—
Total	$	4,828	$	217	$	4,611	$	—


⁽¹⁾	Unrealized gains or losses on short-term investments are recorded in accumulated other comprehensive loss at each measurement date.


⁽²⁾	All short-term investments are classified as available-for-sale and stated at fair value. Our short-term investments mature in one year or less except for $877 million of bank notes/certificates of deposit/time deposits and $101 million of corporate obligations.


⁽³⁾	Long-term investments primarily include our equity investment in China Southern Airlines, in which we presently own a 2.2% equity interest, and are classified in other assets on the consolidated balance sheets.



	Fair Value Measurements as of December 31, 2017
	Total		Level 1		Level 2		Level 3
Short-term investments ^(1) (2):
Money market funds	$	188	$	188	$	—	$	—
Corporate obligations	1,620		—		1,620		—
Bank notes/certificates of deposit/time deposits	2,663		—		2,663		—
Repurchase agreements	300		—		300		—
	4,771		188		4,583		—
Restricted cash and short-term investments ⁽¹⁾	318		108		210		—
Total	$	5,089	$	296	$	4,793	$	—


⁽¹⁾	Unrealized gains or losses on short-term investments are recorded in accumulated other comprehensive loss at each measurement date.


⁽²⁾	All short-term investments are classified as available-for-sale and stated at fair value. Our short-term investments mature in one year or less except for $700 million of bank notes/certificates of deposit/time deposits and $341 million of corporate obligations.

The carrying value and estimated fair value of our long-term debt, including current maturities, were as follows (in millions):



	December 31, 2018				December 31, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current maturities	$	23,779	$	23,775	$	24,294	$	24,985

Assets measured at fair value on a recurring basis are summarized below (in millions):



	Fair Value Measurements as of December 31, 2018
	Total		Level 1		Level 2		Level 3
Short-term investments ⁽¹⁾ ⁽²⁾:
Money market funds	$	14	$	14	$	—	$	—
Corporate obligations	1,658		—		1,658		—
Bank notes/certificates of deposit/time deposits	2,435		—		2,435		—
Repurchase agreements	375		—		375		—
	4,482		14		4,468		—
Restricted cash and short-term investments ⁽¹⁾	154		12		142		—
Long-term investments ⁽³⁾	189		189		—		—
Total	$	4,825	$	215	$	4,610	$	—


⁽¹⁾	Unrealized gains or losses on short-term investments are recorded in accumulated other comprehensive loss at each measurement date.


⁽²⁾	All short-term investments are classified as available-for-sale and stated at fair value. American’s short-term investments mature in one year or less except for $877 million of bank notes/certificates of deposit/time deposits and $101 million of corporate obligations.


⁽³⁾	Long-term investments primarily include American's equity investment in China Southern Airlines, in which American presently owns a 2.2% equity interest, and are classified in other assets on the consolidated balance sheets.



	Fair Value Measurements as of December 31, 2017
	Total		Level 1		Level 2		Level 3
Short-term investments ⁽¹⁾ ⁽²⁾:
Money market funds	$	186	$	186	$	—	$	—
Corporate obligations	1,620		—		1,620		—
Bank notes/certificates of deposit/time deposits	2,662		—		2,662		—
Repurchase agreements	300		—		300		—
	4,768		186		4,582		—
Restricted cash and short-term investments ⁽¹⁾	318		108		210		—
Total	$	5,086	$	294	$	4,792	$	—


⁽¹⁾	Unrealized gains or losses on short-term investments are recorded in accumulated other comprehensive loss at each measurement date.


⁽²⁾	All short-term investments are classified as available-for-sale and stated at fair value. American’s short-term investments mature in one year or less except for $700 million of bank notes/certificates of deposit/time deposits and $341 million of corporate obligations.

The carrying value and estimated fair value of American’s long-term debt, including current maturities, were as follows (in millions):



	December 31, 2018				December 31, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current maturities	$	22,503	$	22,497	$	22,523	$	23,165