XML 103 R37.htm IDEA: XBRL DOCUMENT

Special Items, Net (Tables)

12 Months Ended

Dec. 31, 2021

Restructuring Cost and Reserve [Line Items]

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

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


	Year Ended December 31,
	2021		2020		2019
PSP Financial Assistance (1)	$	(4,162)	$	(3,710)	$	—
Severance expenses (2)	168		1,408		11
Litigation reserve adjustments	(19)		—		(53)
Mark-to-market adjustments on bankruptcy obligations, net (3)	(3)		(49)		(11)
Fleet impairment (4)	—		1,484		213
Labor contract expenses (5)	—		228		—
Fleet restructuring expenses (6)	—		—		271
Merger integration expenses (7)	—		—		191
Other operating special items, net	10		(18)		13
Mainline operating special items, net	(4,006)		(657)		635

PSP Financial Assistance (1)	(539)		(444)		—
Regional pilot retention program (8)	61		—		—
Fleet impairment (4)	27		117		—
Severance expenses (2)	2		18		—
Other operating special items, net	—		—		6
Regional operating special items, net	(449)		(309)		6
Operating special items, net	(4,455)		(966)		641

Mark-to-market adjustments on equity and other investments, net (9)	31		135		(5)
Debt refinancing, extinguishment and other, net	29		35		8
Nonoperating special items, net	60		170		3

(1)The 2021 PSP Financial Assistance represents recognition of a portion of the financial assistance received from Treasury pursuant to the PSP2 and PSP3 Agreements. See Note 1(b) for further information. The 2020 PSP Financial Assistance represents recognition of a portion of the financial assistance received from Treasury pursuant to the PSP1 Agreement.

(2)The 2021 and 2020 severance expenses include salary and medical costs primarily associated with certain team members who opted into voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. Cash payments primarily associated with our voluntary early retirement programs were approximately $520 million and $365 million in 2021 and 2020, respectively.

The 2019 severance expenses primarily included costs associated with reductions of management and support staff team members.

(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 charges resulted from the retirement of certain aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. In 2021, we retired our remaining Embraer 140 fleet resulting in a non-cash write-down of these regional aircraft. See Note 1(g) for further information related to these charges.

In 2020, we retired our entire Airbus A330-200, Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $1.5 billion non-cash write-down of mainline and regional aircraft and associated spare parts and $109 million in cash charges primarily for impairment of ROU assets and lease return costs.

The 2019 fleet impairment principally included a non-cash write-down of aircraft related to the retirement of our Embraer 190 fleet.

(5)The 2020 labor contract expenses primarily related to one-time charges due to the ratification of a new contract with the Transport Workers Union and International Association of Machinists & Aerospace Workers (TWU-IAM Association) for our maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases.

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

(7)Merger integration expenses included costs associated with integration projects, principally our technical operations, flight attendant, human resources and payroll systems.

(8)Our regional pilot retention program provides for, among other things, a cash retention bonus paid in the fourth quarter of 2021 to eligible captains at our wholly-owned regional airlines included on the pilot seniority list as of September 1, 2021.

(9)Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with our equity investments in China Southern Airlines Company Limited (China Southern Airlines) and in 2021, Vertical Aerospace Ltd. (Vertical), and certain treasury rate lock derivative instruments.

American Airlines, Inc.

Restructuring Cost and Reserve [Line Items]

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

Special items, net on American’s consolidated statements of operations consisted of the following (in millions):


	Year Ended December 31,
	2021		2020		2019
PSP Financial Assistance (1)	$	(4,162)	$	(3,710)	$	—
Severance expenses (2)	168		1,408		11
Litigation reserve adjustments	(19)		—		(53)
Mark-to-market adjustments on bankruptcy obligations, net (3)	(3)		(49)		(11)
Fleet impairment (4)	—		1,484		213
Labor contract expenses (5)	—		228		—
Fleet restructuring expenses (6)	—		—		271
Merger integration expenses (7)	—		—		191
Other operating special items, net	10		(18)		13
Mainline operating special items, net	(4,006)		(657)		635

PSP Financial Assistance (1)	(539)		(444)		—
Fleet impairment (4)	27		106		—
Regional operating special items, net	(512)		(338)		—
Operating special items, net	(4,518)		(995)		635

Mark-to-market adjustments on equity and other investments, net (8)	31		135		(5)
Debt refinancing, extinguishment and other, net	29		35		16
Nonoperating special items, net	60		170		11

(2)The 2021 and 2020 severance expenses include salary and medical costs primarily associated with certain team members who opted into voluntary early retirement programs offered as a result of reductions to American's operation due to the COVID-19 pandemic. Cash payments primarily associated with American's voluntary early retirement programs were approximately $520 million and $365 million in 2021 and 2020, respectively.

The 2019 severance expenses primarily included costs associated with reductions of management and support staff team members.

(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 charges resulted from the retirement of certain aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. In 2021, American retired its remaining Embraer 140 fleet resulting in a non-cash write-down of these regional aircraft. See Note 1(g) for further information related to these charges.

In 2020, American retired its entire Airbus A330-200, Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets as well as certain Embraer 140 and Bombardier CRJ200 aircraft resulting in a $1.5 billion non-cash write-down of mainline and regional aircraft and associated spare parts and $109 million in cash charges primarily for impairment of ROU assets and lease return costs.

The 2019 fleet impairment principally included a non-cash write-down of aircraft related to the retirement of American’s Embraer 190 fleet.

Association) for American's maintenance and fleet service team members, including signing bonuses and adjustments to vacation accruals resulting from pay rate increases.

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

(7)Merger integration expenses included costs associated with integration projects, principally American's technical operations, flight attendant, human resources and payroll systems.

(8)Mark-to-market adjustments on equity and other investments, net primarily related to net unrealized gains and losses associated with American’s equity investments in China Southern Airlines Company Limited (China Southern Airlines) and in 2021, Vertical Aerospace Ltd. (Vertical), and certain treasury rate lock derivative instruments.