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Special Items, Net (Tables)

3 Months Ended

Mar. 31, 2020

Restructuring Cost and Reserve [Line Items]

Components of Special Items, Net in Condensed Consolidated Statements of Operations

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



	Three Months Ended March 31,
	2020			2019
Fleet impairment ⁽¹⁾	$	744		$	—
Labor contract expenses ⁽²⁾	218			—
Severance expenses ⁽³⁾	205			—
Mark-to-market adjustments on bankruptcy obligations, net ⁽⁴⁾	(50		)	—
Fleet restructuring expenses ⁽⁵⁾	—			83
Merger integration expenses	—			37
Other operating charges, net	15			18
Mainline operating special items, net	1,132			138
Regional operating special items, net ⁽⁶⁾	93			—
Operating special items, net	1,225			138

Mark-to-market adjustments on equity and other investments, net ⁽⁷⁾	180			(69		)
Debt refinancing, extinguishment and other charges	37			—
Nonoperating special items, net	217			(69		)

⁽¹⁾

Fleet impairment primarily includes a $676 million non-cash write-down of aircraft and spare parts and $68 million in write-offs of ROU assets and lease return costs associated with our mainline fleet, principally Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 aircraft, which are being retired earlier than previously planned as a result of the decline in demand for air travel due to COVID-19. See Note 13 for further information related to these charges.


⁽²⁾	Labor contract expenses primarily relate to one-time charges resulting from the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers for our maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases.


⁽³⁾	Severance expenses principally include salary and medical costs associated with certain team members who opted in to a voluntary early retirement program offered as a result of reductions to our operation due to COVID-19.


⁽⁴⁾	Bankruptcy obligations that will be settled in shares of our common stock are marked-to-market based on our stock price.


⁽⁵⁾	Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment expected to be retired earlier than planned.


⁽⁶⁾	Regional operating special items, net primarily includes an $88 million non-cash write-down of regional aircraft, principally certain Embraer 140 and certain Bombardier CRJ200 aircraft, which are being retired earlier than previously planned as a result of the decline in demand for air travel due to COVID-19. See Note 13 for further information related to this charge.

⁽⁷⁾

Mark-to-market adjustments on equity and other investments, net primarily relates to net unrealized gains and losses associated with our equity investment in China Southern Airlines Company Limited (China Southern Airlines) and certain treasury rate lock derivative instruments.

American Airlines, Inc. [Member]

Restructuring Cost and Reserve [Line Items]

Components of Special Items, Net in Condensed Consolidated Statements of Operations

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



	Three Months Ended March 31,
	2020			2019
Fleet impairment ⁽¹⁾	$	744		$	—
Labor contract expenses ⁽²⁾	218			—
Severance expenses ⁽³⁾	205			—
Mark-to-market adjustments on bankruptcy obligations, net ⁽⁴⁾	(50		)	—
Fleet restructuring expenses ⁽⁵⁾	—			83
Merger integration expenses	—			37
Other operating charges, net	15			18
Mainline operating special items, net	1,132			138
Regional operating special items, net ⁽⁶⁾	93			—
Operating special items, net	1,225			138

Mark-to-market adjustments on equity and other investments, net ⁽⁷⁾	180			(69		)
Debt refinancing, extinguishment and other charges	37			—
Nonoperating special items, net	217			(69		)

⁽¹⁾

Fleet impairment primarily includes a $676 million non-cash write-down of aircraft and spare parts and $68 million in write-offs of ROU assets and lease return costs associated with American's mainline fleet, principally Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 aircraft, which are being retired earlier than previously planned as a result of the decline in demand for air travel due to COVID-19. See Note 12 for further information related to these charges.


⁽²⁾	Labor contract expenses primarily relate to one-time charges resulting from the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers for American's maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases.


⁽³⁾	Severance expenses principally include salary and medical costs associated with certain team members who opted in to a voluntary early retirement program offered as a result of reductions to American's operation due to COVID-19.


⁽⁴⁾	Bankruptcy obligations that will be settled in shares of AAG common stock are marked-to-market based on AAG's stock price.


⁽⁵⁾	Fleet restructuring expenses principally included accelerated depreciation and rent expense for aircraft and related equipment expected to be retired earlier than planned.


⁽⁶⁾	Regional operating special items, net primarily includes an $88 million non-cash write-down of regional aircraft, principally certain Embraer 140 and certain Bombardier CRJ200 aircraft, which are being retired earlier than previously planned as a result of the decline in demand for air travel due to COVID-19. See Note 12 for further information related to this charge.

⁽⁷⁾

Mark-to-market