XML 37 R11.htm IDEA: XBRL DOCUMENT v3.21.1
Special Items, Net
 3 Months Ended
Mar. 31, 2021
Restructuring Cost and Reserve [Line Items]  
Special Items, Net Special Items, Net
Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):
 Three Months Ended March 31,
 20212020
PSP2 Financial Assistance (1)
$(1,882)$— 
Severance expenses (2)
168 205 
Mark-to-market adjustments on bankruptcy obligations, net (3)
6 (50)
Fleet impairment (4)
— 744 
Labor contract expenses (5)
— 218 
Other operating special items, net— 15 
Mainline operating special items, net(1,708)1,132 
PSP2 Financial Assistance (1)
(244)— 
Fleet impairment (4)
27 93 
Severance expenses (2)
2 — 
Regional operating special items, net(215)93 
Operating special items, net(1,923)1,225 
Mark-to-market adjustments on equity and other investments, net (6)
(49)180 
Debt refinancing, extinguishment and other, net26 37 
Nonoperating special items, net(23)217 
(1)PSP2 Financial Assistance represents recognition of financial assistance received from Treasury pursuant to the PSP2 Agreement. See Note 1(b) for further information.
(2)Severance expenses include salary and medical costs primarily associated with certain team members who opted in to voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. Cash payments related to our voluntary early retirement programs were approximately $170 million during the first quarter of 2021.
(3)Bankruptcy obligations that will be settled in shares of our common stock are marked-to-market based on our stock price.
(4)Fleet impairment resulted from our decision to retire certain aircraft earlier than planned driven primarily by the severe decline in air travel due to the COVID-19 pandemic. In the first quarter of 2021, we retired our remaining fleet of Embraer 140 aircraft resulting in a $27 million non-cash write-down of these aircraft. In the first quarter of 2020, we retired our Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $764 million non-cash write-down of these aircraft and associated spare parts and $73 million in cash charges primarily for impairment of ROU assets and lease return costs.
(5)Labor contract expenses primarily related 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.
(6)Mark-to-market adjustments on equity and other investments, net primarily related 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.  
Restructuring Cost and Reserve [Line Items]  
Special Items, Net Special Items, Net
Special items, net in the condensed consolidated statements of operations consisted of the following (in millions):
 Three Months Ended March 31,
 20212020
PSP2 Financial Assistance (1)
$(1,882)$— 
Severance expenses (2)
168 205 
Mark-to-market adjustments on bankruptcy obligations, net (3)
6 (50)
Fleet impairment (4)
— 744 
Labor contract expenses (5)
— 218 
Other operating special items, net — 15 
Mainline operating special items, net(1,708)1,132 
PSP2 Financial Assistance (1)
(244)— 
Fleet impairment (4)
27 93 
Regional operating special items, net(217)93 
Operating special items, net(1,925)1,225 
Mark-to-market adjustments on equity and other investments, net (6)
(49)180 
Debt refinancing, extinguishment and other, net26 37 
Nonoperating special items, net(23)217 
(1)PSP2 Financial Assistance represents recognition of financial assistance received from Treasury pursuant to the PSP2 Agreement. See Note 1(b) for further information.
(2)Severance expenses include salary and medical costs primarily associated with certain team members who opted in to voluntary early retirement programs offered as a result of reductions to American's operation due to the COVID-19 pandemic. Cash payments related to American's voluntary early retirement programs were approximately $170 million during the first quarter of 2021.
(3)Bankruptcy obligations that will be settled in shares of AAG common stock are marked-to-market based on AAG's stock price.
(4)Fleet impairment resulted from American's decision to retire certain aircraft earlier than planned driven primarily by the severe decline in air travel due to the COVID-19 pandemic. In the first quarter of 2021, American retired its remaining fleet of Embraer 140 aircraft resulting in a $27 million non-cash write-down of these aircraft. In the first quarter of 2020, American retired its Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $764 million non-cash write-down of these aircraft and associated spare parts and $73 million in cash charges primarily for impairment of ROU assets and lease return costs.
(5)Labor contract expenses primarily related 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.
(6)Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with American's equity investment in China Southern Airlines Company Limited (China Southern Airlines) and certain treasury rate lock derivative instruments.