Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2015

Accumulated Other Comprehensive Income (Loss)

14.  Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) are as follows (in millions):

	Pension and Retiree Medical Liability			Derivative Financial Instruments			Unrealized Gain/(Loss)  on Investments			Income Tax Benefit (Provision)			Total
Balance at December 31, 2013	$	(887	)	$	67		$	(2	)	$	(1,210	)	$	(2,032	)
Other comprehensive loss before reclassifications		(2,633	)		(54	)		—			—			(2,687	)
Amounts reclassified from accumulated other comprehensive income (loss)		(163	)		(4	)		(3	)		330			160
Net current-period other comprehensive income (loss)		(2,796	)		(58	)		(3	)		330			(2,527	)
Balance at December 31, 2014		(3,683	)		9			(5	)		(880	)		(4,559	)
Other comprehensive loss before reclassifications		(51	)		—			(6	)		—			(57	)
Amounts reclassified from accumulated other comprehensive income (loss)		(108	)		(9	)		1			—			(116	)
Net current-period other comprehensive loss		(159	)		(9	)		(5	)		—			(173	)
Balance at December 31, 2015	$	(3,842	)	$	—		$	(10	)	$	(880	)	$	(4,732	)

Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2015 and 2014 are as follows (in millions):

Details about accumulated other comprehensive income (loss) components	Amount reclassified from accumulated other comprehensive income (loss)						Affected line item in the statement where net income (loss) is  presented
	Year Ended December 31,
	2015			2014
Amortization of pension and retiree medical liability:
Prior service cost	$	(212	)	$	(202	)	Salaries, wages and benefits
Actuarial loss		104			39		Salaries, wages and benefits
Derivative financial instruments:
Cash flow hedges		(9	)		(4	)	Aircraft fuel and related taxes
Net unrealized change on investments:
Net change in value		1			(3	)	Other nonoperating, net
Income tax benefit (provision):
Reversal of non-cash tax provision		—			330		Income tax provision (benefit)
Total reclassifications for the period	$	(116	)	$	160

During 2014, the Company sold its portfolio of fuel hedging contracts that were scheduled to settle on or after June 30, 2014. In connection with this sale, the Company recorded a special non-cash tax provision of $330 million in the statement of operations for the second quarter of 2014 that reversed the non-cash tax provision which was recorded in OCI, a subset of stockholders’ equity, principally in 2009. This provision represented the tax effect associated with gains recorded in OCI principally in 2009 due to a net increase in the fair value of the Company’s fuel hedging contracts. In accordance with GAAP, the Company retained the $330 million tax provision in OCI until the last contract was settled or terminated.

Amounts allocated to OCI for income taxes as further described in Note 10 will remain in accumulated other comprehensive income (loss) until the Company ceases all related activities, such as termination of the pension plan.

American Airlines, Inc. [Member]

Accumulated Other Comprehensive Income (Loss)

12. Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) are as follows (in millions):

	Pension and Retiree  Medical Liability			Derivative Financial Instruments			Unrealized Gain/(Loss) on  Investments			Income Tax Benefit (Provision)			Total
Balance at December 31, 2013	$	(887	)	$	65		$	1		$	(1,319	)	$	(2,140	)
Other comprehensive loss before reclassifications		(2,621	)		(52	)		—			—			(2,673	)
Amounts reclassified from accumulated other comprehensive income (loss)		(163	)		(4	)		(4	)		328			157
Net current-period other comprehensive income (loss)		(2,784	)		(56	)		(4	)		328			(2,516	)
Balance at December 31, 2014		(3,671	)		9			(3	)		(991	)		(4,656	)
Other comprehensive loss before reclassifications		(51	)		—			(7	)		—			(58	)
Amounts reclassified from accumulated other comprehensive income (loss)		(109	)		(9	)		1			—			(117	)
Net current-period other comprehensive loss		(160	)		(9	)		(6	)		—			(175	)
Balance at December 31, 2015	$	(3,831	)	$	—		$	(9	)	$	(991	)	$	(4,831	)

Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2015 and 2014 are as follows (in millions):

Details about accumulated other comprehensive income (loss) components	Amount reclassified from accumulated other comprehensive income (loss)						Affected line item in the statement where net income (loss) is  presented
	Year Ended December 31,
	2015			2014
Amortization of pension and retiree medical liability:
Prior service cost	$	(212	)	$	(202	)	Salaries, wages and benefits
Actuarial loss		103			39		Salaries, wages and benefits
Derivative financial instruments:
Cash flow hedges		(9	)		(4	)	Aircraft fuel and related taxes
Net unrealized change on investments:
Net change in value		1			(4	)	Other nonoperating, net
Income tax benefit (provision):
Reversal of non-cash tax provision		—			328		Income tax provision (benefit)
Total reclassifications for the period	$	(117	)	$	157

During 2014, American sold its portfolio of fuel hedging contracts that were scheduled to settle on or after June 30, 2014. In connection with this sale, American recorded a special non-cash tax provision of $328 million in the statement of operations for the second quarter of 2014 that reversed the non-cash tax provision which was recorded in OCI, a subset of stockholder’s equity, principally in 2009. This provision represented the tax effect associated with gains recorded in OCI principally in 2009 due to a net increase in the fair value of American’s fuel hedging contracts. In accordance with GAAP, American retained the $328 million tax provision in OCI until the last contract was settled or terminated.

Amounts allocated to OCI for income taxes as further described in Note 8 will remain in accumulated other comprehensive income (loss) until American ceases all related activities, such as termination of the pension plan.