Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 15, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AAL | |
Entity Registrant Name | American Airlines Group Inc. | |
Entity Central Index Key | 6,201 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 529,913,365 | |
American Airlines, Inc. [Member] | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | AMERICAN AIRLINES INC | |
Entity Central Index Key | 4,515 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating revenues: | ||||
Mainline passenger | $ 7,209 | $ 7,655 | $ 13,773 | $ 14,644 |
Regional passenger | 1,786 | 1,759 | 3,309 | 3,211 |
Cargo | 174 | 194 | 336 | 388 |
Other | 1,194 | 1,219 | 2,380 | 2,411 |
Total operating revenues | 10,363 | 10,827 | 19,798 | 20,654 |
Operating expenses: | ||||
Aircraft fuel and related taxes | 1,314 | 1,774 | 2,343 | 3,318 |
Salaries, wages and benefits | 2,670 | 2,364 | 5,322 | 4,737 |
Regional expenses | 1,518 | 1,557 | 2,950 | 3,019 |
Maintenance, materials and repairs | 453 | 502 | 871 | 995 |
Other rent and landing fees | 458 | 451 | 879 | 859 |
Aircraft rent | 302 | 316 | 609 | 633 |
Selling expenses | 334 | 350 | 642 | 686 |
Depreciation and amortization | 374 | 340 | 729 | 676 |
Special items, net | 62 | 144 | 161 | 447 |
Other | 1,127 | 1,108 | 2,205 | 2,147 |
Total operating expenses | 8,612 | 8,906 | 16,711 | 17,517 |
Operating income | 1,751 | 1,921 | 3,087 | 3,137 |
Nonoperating income (expense): | ||||
Interest income | 16 | 10 | 28 | 19 |
Interest expense, net of capitalized interest | (249) | (223) | (488) | (432) |
Other, net | (25) | 11 | (17) | (62) |
Total nonoperating expense, net | (258) | (202) | (477) | (475) |
Income before income taxes | 1,493 | 1,719 | 2,610 | 2,662 |
Income tax provision | 543 | 15 | 960 | 26 |
Net income | $ 950 | $ 1,704 | $ 1,650 | $ 2,636 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.69 | $ 2.47 | $ 2.82 | $ 3.81 |
Diluted (in dollars per share) | $ 1.68 | $ 2.41 | $ 2.80 | $ 3.70 |
Weighted average shares outstanding (in thousands): | ||||
Basic (in shares) | 563,000 | 688,727 | 584,622 | 692,571 |
Diluted (in shares) | 566,040 | 707,611 | 588,764 | 712,270 |
Cash dividends declared per common share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
American Airlines, Inc. [Member] | ||||
Operating revenues: | ||||
Mainline passenger | $ 7,209 | $ 7,655 | $ 13,773 | $ 14,644 |
Regional passenger | 1,786 | 1,759 | 3,309 | 3,211 |
Cargo | 174 | 194 | 336 | 388 |
Other | 1,281 | 1,241 | 2,529 | 2,448 |
Total operating revenues | 10,450 | 10,849 | 19,947 | 20,691 |
Operating expenses: | ||||
Aircraft fuel and related taxes | 1,314 | 1,774 | 2,343 | 3,318 |
Salaries, wages and benefits | 2,668 | 2,361 | 5,318 | 4,732 |
Regional expenses | 1,600 | 1,580 | 3,107 | 3,074 |
Maintenance, materials and repairs | 453 | 502 | 871 | 995 |
Other rent and landing fees | 458 | 451 | 879 | 859 |
Aircraft rent | 302 | 316 | 609 | 633 |
Selling expenses | 334 | 350 | 642 | 686 |
Depreciation and amortization | 374 | 340 | 729 | 676 |
Special items, net | 62 | 144 | 161 | 447 |
Other | 1,128 | 1,110 | 2,208 | 2,148 |
Total operating expenses | 8,693 | 8,928 | 16,867 | 17,568 |
Operating income | 1,757 | 1,921 | 3,080 | 3,123 |
Nonoperating income (expense): | ||||
Interest income | 25 | 13 | 46 | 23 |
Interest expense, net of capitalized interest | (228) | (200) | (445) | (390) |
Other, net | (26) | (11) | (18) | (85) |
Total nonoperating expense, net | (229) | (198) | (417) | (452) |
Income before income taxes | 1,528 | 1,723 | 2,663 | 2,671 |
Income tax provision | 556 | 14 | 980 | 24 |
Net income | $ 972 | $ 1,709 | $ 1,683 | $ 2,647 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 950 | $ 1,704 | $ 1,650 | $ 2,636 |
Other comprehensive loss, net of tax: | ||||
Pension, retiree medical and other postretirement benefits | (16) | (26) | (35) | (52) |
Derivative financial instruments: | ||||
Reclassification into earnings | (3) | (9) | ||
Unrealized gain (loss) on investments: | ||||
Net change in value | 2 | (1) | 4 | |
Total other comprehensive loss, net of tax | (14) | (30) | (31) | (61) |
Total comprehensive income | 936 | 1,674 | 1,619 | 2,575 |
American Airlines, Inc. [Member] | ||||
Net income | 972 | 1,709 | 1,683 | 2,647 |
Other comprehensive loss, net of tax: | ||||
Pension, retiree medical and other postretirement benefits | (16) | (26) | (35) | (52) |
Derivative financial instruments: | ||||
Reclassification into earnings | (3) | (9) | ||
Unrealized gain (loss) on investments: | ||||
Net change in value | 2 | (1) | 4 | |
Total other comprehensive loss, net of tax | (14) | (30) | (31) | (61) |
Total comprehensive income | $ 958 | $ 1,679 | $ 1,652 | $ 2,586 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash | $ 446 | $ 390 |
Short-term investments | 6,672 | 5,864 |
Restricted cash and short-term investments | 640 | 695 |
Accounts receivable, net | 1,593 | 1,425 |
Aircraft fuel, spare parts and supplies, net | 999 | 863 |
Prepaid expenses and other | 834 | 748 |
Total current assets | 11,184 | 9,985 |
Operating property and equipment | ||
Flight equipment | 35,553 | 33,185 |
Ground property and equipment | 6,726 | 6,402 |
Equipment purchase deposits | 1,136 | 1,067 |
Total property and equipment, at cost | 43,415 | 40,654 |
Less accumulated depreciation and amortization | (13,804) | (13,144) |
Total property and equipment, net | 29,611 | 27,510 |
Other assets | ||
Goodwill | 4,091 | 4,091 |
Intangibles, net of accumulated amortization of $538 and $502, respectively | 2,213 | 2,249 |
Deferred tax asset | 1,965 | 2,477 |
Other assets | 1,987 | 2,103 |
Total other assets | 10,256 | 10,920 |
Total assets | 51,051 | 48,415 |
Current liabilities | ||
Current maturities of long-term debt and capital leases | 1,715 | 2,231 |
Accounts payable | 1,944 | 1,563 |
Accrued salaries and wages | 1,327 | 1,205 |
Air traffic liability | 4,984 | 3,747 |
Loyalty program liability | 2,511 | 2,525 |
Other accrued liabilities | 2,436 | 2,334 |
Total current liabilities | 14,917 | 13,605 |
Noncurrent liabilities | ||
Long-term debt and capital leases, net of current maturities | 21,131 | 18,330 |
Pension and postretirement benefits | 7,426 | 7,450 |
Deferred gains and credits, net | 590 | 667 |
Other liabilities | 2,675 | 2,728 |
Total noncurrent liabilities | 31,822 | 29,175 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock | 5 | 6 |
Additional paid-in capital | 8,351 | 11,591 |
Accumulated other comprehensive loss | (4,763) | (4,732) |
Retained earnings (deficit) | 719 | (1,230) |
Total stockholders' equity | 4,312 | 5,635 |
Total liabilities and stockholders' equity | 51,051 | 48,415 |
American Airlines, Inc. [Member] | ||
Current assets | ||
Cash | 425 | 364 |
Short-term investments | 6,669 | 5,862 |
Restricted cash and short-term investments | 640 | 695 |
Accounts receivable, net | 1,590 | 1,420 |
Receivables from related parties, net | 5,386 | 1,981 |
Aircraft fuel, spare parts and supplies, net | 928 | 796 |
Prepaid expenses and other | 827 | 740 |
Total current assets | 16,465 | 11,858 |
Operating property and equipment | ||
Flight equipment | 35,191 | 32,838 |
Ground property and equipment | 6,542 | 6,224 |
Equipment purchase deposits | 1,136 | 1,067 |
Total property and equipment, at cost | 42,869 | 40,129 |
Less accumulated depreciation and amortization | (13,539) | (12,893) |
Total property and equipment, net | 29,330 | 27,236 |
Other assets | ||
Goodwill | 4,091 | 4,091 |
Intangibles, net of accumulated amortization of $538 and $502, respectively | 2,213 | 2,249 |
Deferred tax asset | 2,398 | 2,932 |
Other assets | 1,939 | 2,073 |
Total other assets | 10,641 | 11,345 |
Total assets | 56,436 | 50,439 |
Current liabilities | ||
Current maturities of long-term debt and capital leases | 1,718 | 2,234 |
Accounts payable | 1,900 | 1,517 |
Accrued salaries and wages | 1,275 | 1,156 |
Air traffic liability | 4,984 | 3,747 |
Loyalty program liability | 2,512 | 2,525 |
Other accrued liabilities | 2,253 | 2,198 |
Total current liabilities | 14,642 | 13,377 |
Noncurrent liabilities | ||
Long-term debt and capital leases, net of current maturities | 19,364 | 16,592 |
Pension and postretirement benefits | 7,385 | 7,410 |
Deferred gains and credits, net | 590 | 667 |
Other liabilities | 2,640 | 2,695 |
Total noncurrent liabilities | 29,979 | 27,364 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock | 0 | 0 |
Additional paid-in capital | 16,568 | 16,521 |
Accumulated other comprehensive loss | (4,862) | (4,831) |
Retained earnings (deficit) | 109 | (1,992) |
Total stockholders' equity | 11,815 | 9,698 |
Total liabilities and stockholders' equity | $ 56,436 | $ 50,439 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Accumulated amortization of intangibles | $ 538 | $ 502 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,750,000,000 | 1,750,000,000 |
Common stock, shares issued | 537,141,492 | 624,622,381 |
Common stock, shares outstanding | 537,141,492 | 624,622,381 |
American Airlines, Inc. [Member] | ||
Accumulated amortization of intangibles | $ 538 | $ 502 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Net cash provided by operating activities | $ 4,833 | $ 4,841 |
Cash flows from investing activities: | ||
Capital expenditures and aircraft purchase deposits | (3,063) | (3,139) |
Purchases of short-term investments | (3,605) | (5,093) |
Sales of short-term investments | 2,810 | 3,436 |
Decrease in restricted cash and short-term investments | 55 | 27 |
Proceeds from sale of an investment | 52 | |
Proceeds from sale of property and equipment | 30 | 22 |
Other investing activities | 2 | |
Net cash used in investing activities | (3,771) | (4,695) |
Cash flows from financing activities: | ||
Payments on long-term debt and capital leases | (2,163) | (1,107) |
Proceeds from issuance of long-term debt | 4,522 | 1,996 |
Deferred financing costs | (87) | (40) |
Treasury stock repurchases | (3,236) | (931) |
Dividend payments | (119) | (140) |
Other financing activities | 77 | 34 |
Net cash provided by financing activities | (1,006) | (188) |
Net increase (decrease) in cash | 56 | (42) |
Cash at beginning of period | 390 | 994 |
Cash at end of period | 446 | 952 |
Non-cash investing and financing activities: | ||
Settlement of bankruptcy obligations | 3 | 35 |
Capital lease obligations | 5 | |
Supplemental information: | ||
Interest paid, net of amounts capitalized | 479 | 433 |
Income taxes paid | 7 | 10 |
American Airlines, Inc. [Member] | ||
Net cash provided by operating activities | 1,449 | 4,275 |
Cash flows from investing activities: | ||
Capital expenditures and aircraft purchase deposits | (3,027) | (3,104) |
Purchases of short-term investments | (3,605) | (5,093) |
Sales of short-term investments | 2,810 | 3,436 |
Decrease in restricted cash and short-term investments | 55 | 27 |
Proceeds from sale of property and equipment | 28 | 18 |
Other investing activities | 2 | |
Net cash used in investing activities | (3,737) | (4,716) |
Cash flows from financing activities: | ||
Payments on long-term debt and capital leases | (2,163) | (1,107) |
Proceeds from issuance of long-term debt | 4,522 | 1,496 |
Deferred financing costs | (87) | (33) |
Other financing activities | 77 | 34 |
Net cash provided by financing activities | 2,349 | 390 |
Net increase (decrease) in cash | 61 | (51) |
Cash at beginning of period | 364 | 984 |
Cash at end of period | 425 | 933 |
Non-cash investing and financing activities: | ||
Settlement of bankruptcy obligations | 3 | 35 |
Capital lease obligations | 5 | |
Supplemental information: | ||
Interest paid, net of amounts capitalized | 431 | 417 |
Income taxes paid | $ 5 | $ 5 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of American Airlines Group Inc. (we, us, our and similar terms, or AAG) should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2015. The accompanying unaudited condensed consolidated financial statements include the accounts of AAG and its wholly-owned subsidiaries. AAG’s principal subsidiary is American Airlines, Inc. (American). All significant intercompany transactions have been eliminated. On December 9, 2013 (the Effective Date), AMR Merger Sub, Inc. merged with and into US Airways Group, Inc. (US Airways Group) (the Merger), with US Airways Group surviving as a wholly-owned subsidiary of AAG, a Delaware corporation (formerly known as AMR Corporation or AMR) following the Merger. On December 30, 2015, in order to simplify our internal corporate structure and as part of the integration efforts following the business combination of AAG and US Airways Group, AAG caused US Airways Group to be merged with and into AAG, with AAG as the surviving corporation, and, immediately thereafter, US Airways, Inc. (US Airways), a Delaware corporation and wholly-owned subsidiary of US Airways Group, merged with and into American, with American as the surviving corporation. As a result of the merger of US Airways and American, US Airways transferred all of its assets, liabilities and off-balance sheet commitments to American. For financial reporting purposes, this transaction constituted a transfer of assets between entities under common control and was accounted for at historical cost. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, as well as pensions, retiree medical and other postretirement benefits. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). Subsequently, the FASB has issued several additional ASUs to clarify the implementation guidance on principal versus agent considerations, identifying performance obligations, assessing collectability, presentation of sales taxes and other similar taxes collected from customers, non-cash consideration, contract modifications and completed contracts at transition. These ASUs apply to all companies that enter into contracts with customers to transfer goods or services. These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Entities have the choice to apply these ASUs either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying these standards at the date of initial application and not adjusting comparative information. We are currently evaluating the requirements of these standards and have not yet determined the impact on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the requirements of ASU 2016-02 and have not yet determined its impact on our condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies the accounting for share-based payment award transactions including the financial statement presentation of excess tax benefits and deficiencies, classification of awards as either equity or liabilities, accounting for forfeitures and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. We early adopted this standard in the three months ended June 30, 2016. The adoption of this standard results in the recognition of $418 million of previously unrecognized excess tax benefits in deferred tax assets and an increase to retained earnings on the condensed consolidated balance sheet as of the beginning of the current year and the recognition of $9 million of excess tax benefits to the income tax provision for each of the three and six months ended June 30, 2016, respectively. |
American Airlines, Inc. [Member] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of American Airlines, Inc. (American) should be read in conjunction with the consolidated financial statements contained in American’s Annual Report on Form 10-K for the year ended December 31, 2015. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG). All significant intercompany transactions have been eliminated. On December 9, 2013 (the Effective Date), AMR Merger Sub, Inc. merged with and into US Airways Group, Inc. (US Airways Group) (the Merger), with US Airways Group surviving as a wholly-owned subsidiary of AAG, a Delaware corporation (formerly known as AMR Corporation or AMR) following the Merger. On December 30, 2015, in order to simplify AAG’s internal corporate structure and as part of the integration efforts following the business combination of AAG and US Airways Group, AAG caused US Airways Group to be merged with and into AAG, with AAG as the surviving corporation, and, immediately thereafter, US Airways, Inc. (US Airways), a Delaware corporation and wholly-owned subsidiary of US Airways Group, merged with and into American, with American as the surviving corporation. As a result of the merger of US Airways and American, US Airways transferred all of its assets and liabilities, including obligations with respect to certain pass through trusts and the leases of related aircraft and engines, as well as its off-balance sheet commitments, to American. For financial reporting purposes, this transaction constituted a transfer of assets between entities under common control and is reflected in American’s condensed consolidated financial statements as though the transaction had occurred on December 9, 2013, when a subsidiary of AMR merged with and into US Airways Group, which represents the earliest date that American and US Airways were under common control. Thus, all periods presented in Part I, Item 1B of this Quarterly Report on Form 10-Q are comprised of the condensed consolidated financial data of American and US Airways. This transaction was accounted for in a manner similar to the pooling of interests method of accounting. Under this method, the carrying amount of net assets recognized in the balance sheets of each combining entity are carried forward to the balance sheet of the combined entity and no other assets or liabilities are recognized. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, as well as pensions, retiree medical and other postretirement benefits. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). Subsequently, the FASB has issued several additional ASUs to clarify the implementation guidance on principal versus agent considerations, identifying performance obligations, assessing collectability, presentation of sales taxes and other similar taxes collected from customers, non-cash consideration, contract modifications and completed contracts at transition. These ASUs apply to all companies that enter into contracts with customers to transfer goods or services. These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Entities have the choice to apply these ASUs either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying these standards at the date of initial application and not adjusting comparative information. American is currently evaluating the requirements of these standards and has not yet determined the impact on its condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. American is currently evaluating the requirements of ASU 2016-02 and has not yet determined its impact on its condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies the accounting for share-based payment award transactions including the financial statement presentation of excess tax benefits and deficiencies, classification of awards as either equity or liabilities, accounting for forfeitures and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. American early adopted this standard in the three months ended June 30, 2016. The adoption of this standard results in the recognition of $418 million of previously unrecognized excess tax benefits in deferred tax assets and an increase to retained earnings on the condensed consolidated balance sheet as of the beginning of the current year and the recognition of $9 million of excess tax benefits to the income tax provision for each of the three and six months ended June 30, 2016, respectively. |
Special Items
Special Items | 6 Months Ended |
Jun. 30, 2016 | |
Special Items | 2. Special Items Special items, net on the condensed consolidated statements of operations are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Mainline operating special items, net (1) $ 62 $ 144 $ 161 $ 447 (1) The 2016 second quarter mainline operating special items totaled a net charge of $62 million, which principally included $112 million of merger integration expenses, offset in part by a $56 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. The 2016 six month period mainline operating special items totaled a net charge of $161 million, which principally included $242 million of merger integration expenses, offset in part by a $61 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. For the 2016 second quarter and six month periods, merger integration expenses included costs related to information technology, alignment of labor union contracts, fleet restructuring, re-branding of aircraft, airport facilities and uniforms, professional fees, severance, as well as relocation and training. The 2015 second quarter mainline operating special items totaled a net charge of $144 million, which principally included $224 million of merger integration expenses, offset in part by a $68 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. The 2015 six month period mainline operating special items totaled a net charge of $447 million, which principally included $543 million of merger integration expenses, offset in part by a $73 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. For the 2015 second quarter and six month periods, merger integration expenses included costs related to alignment of labor union contracts, fleet restructuring, information technology, professional fees, severance, re-branding of aircraft, airport facilities and uniforms, relocation and training, as well as share-based compensation. The following additional amounts are also included in the condensed consolidated statements of operations as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Regional operating special items, net $ 3 $ 10 $ 8 $ 18 Nonoperating special items, net (1) 36 (11 ) 36 (19 ) Income tax special items, net — 7 — 16 (1) In connection with a bond refinancing, we recorded a $36 million nonoperating special charge in the 2016 second quarter and six month periods related to non-cash write offs of unamortized bond discounts and issuance costs as well as payments of redemption premiums and fees. |
American Airlines, Inc. [Member] | |
Special Items | 2. Special Items Special items, net on the condensed consolidated statements of operations are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Mainline operating special items, net (1) $ 62 $ 144 $ 161 $ 447 (1) The 2016 second quarter mainline operating special items totaled a net charge of $62 million, which principally included $112 million of merger integration expenses, offset in part by a $56 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. The 2016 six month period mainline operating special items totaled a net charge of $161 million, which principally included $242 million of merger integration expenses, offset in part by a $61 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. For the 2016 second quarter and six month periods, merger integration expenses included costs related to information technology, alignment of labor union contracts, fleet restructuring, re-branding of aircraft, airport facilities and uniforms, professional fees, severance, as well as relocation and training. The 2015 second quarter mainline operating special items totaled a net charge of $144 million, which principally included $224 million of merger integration expenses, offset in part by a $68 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. The 2015 six month period mainline operating special items totaled a net charge of $447 million, which principally included $543 million of merger integration expenses, offset in part by a $73 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. For the 2015 second quarter and six month periods, merger integration expenses included costs related to alignment of labor union contracts, fleet restructuring, information technology, professional fees, severance, re-branding of aircraft, airport facilities and uniforms, relocation and training, as well as share-based compensation. The following additional amounts are also included in the condensed consolidated statements of operations as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Regional operating special items, net $ 3 $ 5 $ 8 $ 9 Nonoperating special items, net (1) 36 11 36 3 Income tax special items, net — 7 — 16 (1) In connection with a bond refinancing, American recorded a $36 million nonoperating special charge in the 2016 second quarter and six month periods related to non-cash write offs of unamortized bond discounts and issuance costs as well as payments of redemption premiums and fees. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 3. Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per common share (EPS) (in millions, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Basic EPS: Net income $ 950 $ 1,704 $ 1,650 $ 2,636 Weighted-average common shares outstanding (in thousands) 563,000 688,727 584,622 692,571 Basic EPS $ 1.69 $ 2.47 $ 2.82 $ 3.81 Diluted EPS: Net income for purposes of computing diluted EPS $ 950 $ 1,704 $ 1,650 $ 2,636 Share computation for diluted EPS (in thousands): Basic weighted average common shares outstanding 563,000 688,727 584,622 692,571 Dilutive effect of stock awards 3,040 18,884 4,142 19,699 Diluted weighted average common shares outstanding 566,040 707,611 588,764 712,270 Diluted EPS $ 1.68 $ 2.41 $ 2.80 $ 3.70 The following were excluded from the calculation of diluted EPS (in thousands): Stock options, stock appreciation rights and restricted stock unit awards because inclusion would be antidilutive 2,601 905 1,845 453 |
Share Repurchase Programs and D
Share Repurchase Programs and Dividends | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Share Repurchase Programs and Dividends | 4. Share Repurchase Programs and Dividends Since July 2014, our Board of Directors has approved several share repurchase programs aggregating $9.0 billion of authority of which, as of June 30, 2016, $1.2 billion remained unused under repurchase programs that expire on December 31, 2017. Share repurchases under our share repurchase programs may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades or accelerated share repurchase transactions. Any such repurchases will be made from time to time subject to market and economic conditions, applicable legal requirements and other relevant factors. Our share repurchase programs do not obligate us to repurchase any specific number of shares and may be suspended at any time at our discretion. During the three months ended June 30, 2016, we repurchased 50.2 million shares of AAG common stock for $1.7 billion at a weighted average cost per share of $33.55. During the six months ended June 30, 2016, we repurchased 89.5 million shares of AAG common stock for $3.2 billion at a weighted average cost per share of $36.28. Since the inception of the share repurchase programs in July 2014, we have repurchased 198.1 million shares of AAG common stock for $7.8 billion at a weighted average cost per share of $39.54. Our Board of Directors declared the following cash dividends during the first six months of 2016: Period Per share For stockholders of record as of Payable on Cash paid (millions) First Quarter $ 0.10 February 10, 2016 February 24, 2016 $ 61 Second Quarter $ 0.10 May 4, 2016 May 18, 2016 58 Total $ 119 Any future dividends that may be declared and paid from time to time will be subject to market and economic conditions, applicable legal requirements and other relevant factors. We are not obligated to continue a dividend for any fixed period, and payment of dividends may be suspended at any time at our discretion. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt | 5. Debt Long-term debt and capital lease obligations included in the condensed consolidated balance sheets consisted of (in millions): June 30, 2016 December 31, 2015 Secured 2013 Credit Facilities, variable interest rate of 3.25%, installments through 2020 $ 1,843 $ 1,867 2014 Credit Facilities, variable interest rate of 3.50%, installments through 2021 743 743 2016 Credit Facilities, variable interest rate of 3.50%, installments through 2023 1,000 — 2013 Citicorp Credit Facility tranche B-1, variable interest rate of 3.50%, installments through 2019 970 980 2013 Citicorp Credit Facility tranche B-2 — 588 Aircraft enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.20% to 9.75%, maturing from 2017 to 2028 10,076 8,693 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.85% to 8.48%, maturing from 2016 to 2028 4,904 4,183 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 8.00%, maturing from 2017 to 2035 891 1,080 Other secured obligations, fixed interest rates ranging from 3.60% to 12.24%, maturing from 2016 to 2028 880 923 21,307 19,057 Unsecured 5.50% senior notes, interest only payments until due in 2019 750 750 6.125% senior notes, interest only payments until due in 2018 500 500 4.625% senior notes, interest only payments until due in 2020 500 500 1,750 1,750 Total long-term debt and capital lease obligations 23,057 20,807 Less: Total unamortized debt discount and debt issuance costs 211 246 Less: Current maturities 1,715 2,231 Long-term debt and capital lease obligations, net of current maturities $ 21,131 $ 18,330 The table below shows availability under revolving credit facilities, all of which were undrawn, as of June 30, 2016 (in millions): 2013 Revolving Facility $ 1,400 2014 Revolving Facility 1,025 Total $ 2,425 2016 Financing Activities 2016-1 EETCs In January 2016, American created three pass-through trusts which issued approximately $1.1 billion aggregate face amount of Series 2016-1 Class AA, Class A and Class B EETCs (the 2016-1 EETCs) in connection with the financing of 22 aircraft owned by American (the 2016-1 EETC Aircraft). All of the proceeds received from the sale of the 2016-1 EETCs have been used to purchase equipment notes issued by American in three series: Series AA equipment notes in the principal amount of $584 million bearing interest at 3.575% per annum, Series A equipment notes in the principal amount of $262 million bearing interest at 4.10% per annum and Series B equipment notes in the principal amount of $228 million bearing interest at 5.25% per annum. Interest and principal payments on the equipment notes are payable semi-annually in January and July of each year, beginning in July 2016. The final payments on the Series AA and Series A equipment notes are due in January 2028 and the final payment on the Series B equipment notes is due in January 2024. These equipment notes are secured by liens on the 2016-1 EETC Aircraft. 2016-2 EETCs In May 2016, American created two pass-through trusts which issued approximately $829 million aggregate face amount of Series 2016-2 Class AA and Class A EETCs (the 2016-2 EETCs) in connection with the financing of 22 aircraft owned by American or scheduled to be delivered to American in July 2016 and August 2016 (the 2016-2 EETC Aircraft). Proceeds received from the sale of the 2016-2 EETCs were deposited in escrow for the benefit of holders of the 2016-2 EETCs until such time as American issues equipment notes to the pass-through trusts, which will purchase the notes with a portion of the escrowed funds. These escrowed funds are not guaranteed by American and are not reported as debt on our condensed consolidated balance sheet because the proceeds held by the depository are not American’s assets. As of June 30, 2016, $595 million of the escrowed proceeds from the 2016-2 EETCs have been used to purchase equipment notes issued by American in two series: Series AA equipment notes in the amount of $407 million bearing interest at 3.20% per annum and Series A equipment notes in the amount of $188 million bearing interest at 3.65% per annum. Interest and principal on the equipment notes are payable semi-annually in June and December of each year, with interest payments beginning in December 2016 and principal payments beginning in June 2017. The final payments on the Series AA and Series A equipment notes are due in June 2028. These equipment notes are secured by liens on 14 of the 2016-2 EETC Aircraft. The remaining $234 million of escrowed proceeds will be used to purchase equipment notes as the remaining eight aircraft are delivered. 2016 Credit Facilities On April 29, 2016, American and AAG entered into a Credit and Guaranty Agreement (the 2016 Credit Agreement), among American, as the borrower, AAG as parent and guarantor, and Barclays Bank PLC, as administrative agent and collateral agent. The 2016 Credit Agreement provides for a $1.0 billion term loan facility (the 2016 Term Loan Facility) and a revolving credit facility that may be established in the future (the 2016 Revolving Credit Facility, and together with the 2016 Term Loan Facility, the 2016 Credit Facilities). As of June 30, 2016, $1.0 billion was outstanding under the 2016 Term Loan Facility. The proceeds from the 2016 Term Loan Facility were used to repay approximately $588 million in remaining principal plus accrued and unpaid interest of the 2013 Citicorp Credit Facility Tranche B-2 with the remainder of the proceeds to be used for general corporate purposes. The 2016 Term Loan Facility matures in April 2023, unless otherwise extended by the applicable parties, and is repayable in annual installments in an amount equal to 1.00% of the original principal balance with any unpaid balance due on the maturity date of the 2016 Term Loan Facility. Voluntary prepayments may be made by American at any time, with a premium of 1.0% applicable to certain prepayments made prior to the date that is six months following April 29, 2016. Borrowings under the 2016 Term Loan Facility bear interest at an index rate plus an applicable index margin or, at American’s option, LIBOR (subject to a floor of 0.75%) plus an applicable LIBOR margin. The applicable LIBOR margin is 2.75% for borrowings under the 2016 Term Loan Facility. The obligations of American under the 2016 Credit Agreement are secured by a lien on aircraft spare parts owned by American. American has the ability to add or release certain types of collateral, subject to certain conditions, at its discretion. The obligations of American under the 2016 Credit Facilities are guaranteed by AAG. American is required to periodically appraise the value of its collateral and calculate the collateral coverage ratio. If the calculated collateral coverage ratio is below 1.6 to 1.0, American may be required either to provide additional collateral (which may include cash collateral) to secure its obligations under the 2016 Credit Agreement or repay the loans under the 2016 Credit Agreement or certain other indebtedness, in such amounts that the recalculated collateral coverage ratio, after giving effect to any such additional collateral or repayment, is at least 1.6 to 1.0. The 2016 Credit Facilities contain events of default customary for similar financings, including cross default to other material indebtedness. Upon the occurrence of an event of default, the outstanding obligations under the 2016 Credit Facilities may be accelerated and become due and payable immediately. In addition, if a “change of control” (as defined in the 2016 Credit Agreement) occurs with respect to AAG, American will (absent an amendment or waiver) be required to repay at par the loans outstanding under the 2016 Credit Facilities and terminate the 2016 Revolving Facility. The 2016 Credit Facilities also include covenants that, among other things, require AAG to maintain a minimum aggregate liquidity (as defined in the 2016 Credit Facilities) of not less than $2.0 billion, and limit the ability of AAG and its restricted subsidiaries to pay dividends and make certain other payments, make certain investments, incur liens on the collateral, dispose of the collateral, enter into certain affiliate transactions and engage in certain business activities, in each case subject to certain exceptions. Obligations Associated with Special Facility Revenue Bonds In June 2016, the New York Transportation Development Corporation (NYTDC) issued approximately $844 million of special facility revenue refunding bonds (the 2016 JFK Bonds) on behalf of American. The net proceeds from the 2016 JFK Bonds generally were used to provide a portion of the funds to refinance $1.0 billion of the existing outstanding special facility revenue bonds (Prior JFK Bonds). The net proceeds from the Prior JFK Bonds partially financed the construction of a terminal used by American at John F. Kennedy International Airport (JFK) (the Terminal). American is required to pay debt service on the 2016 JFK Bonds through payments under a loan agreement with NYTDC, and American and AAG guarantee the 2016 JFK Bonds. American’s and AAG’s obligations under these guarantees are secured by a mortgage on American’s lease of the Terminal and related property from the Port Authority of New York and New Jersey. The 2016 JFK Bonds, in aggregate, were priced at approximately 107% of par value. The gross proceeds from the issuance of the 2016 JFK Bonds were approximately $907 million. Of this amount, approximately $895 million was used to partially fund the redemption of the Prior JFK Bonds. The 2016 JFK Bonds bear interest at 5.0% per annum and are comprised of $212 million of serial bonds, portions of which mature annually from August 1, 2017 to August 1, 2021, and $632 million of term bonds, $278 million of which matures on August 1, 2026 and $354 million of which matures on August 1, 2031. In connection with the refinancing of the Prior JFK Bonds, American recorded a special nonoperating charge of $36 million consisting of non-cash write offs of unamortized bond discounts and issuance costs as well as payments of redemption premiums and fees. Other Aircraft Financing Transactions In the first six months of 2016, American entered into loan agreements to borrow $1.0 billion in connection with the financing of certain aircraft. Debt incurred under these loan agreements matures in 2026 through 2028. |
American Airlines, Inc. [Member] | |
Debt | 3. Debt Long-term debt and capital lease obligations included in the condensed consolidated balance sheets consisted of (in millions): June 30, 2016 December 31, 2015 Secured 2013 Credit Facilities, variable interest rate of 3.25%, installments through 2020 $ 1,843 $ 1,867 2014 Credit Facilities, variable interest rate of 3.50%, installments through 2021 743 743 2016 Credit Facilities, variable interest rate of 3.50%, installments through 2023 1,000 — 2013 Citicorp Credit Facility tranche B-1, variable interest rate of 3.50%, installments through 2019 970 980 2013 Citicorp Credit Facility tranche B-2 — 588 Aircraft enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.20% to 9.75%, maturing from 2017 to 2028 10,076 8,693 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.85% to 8.48%, maturing from 2016 to 2028 4,904 4,183 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 5.50%, maturing from 2017 to 2035 862 1,051 Other secured obligations, fixed interest rates ranging from 3.60% to 12.24%, maturing from 2016 to 2028 879 922 21,277 19,027 Unsecured Affiliate unsecured obligations — 27 — 27 Total long-term debt and capital lease obligations 21,277 19,054 Less: Total unamortized debt discount and debt issuance costs 195 228 Less: Current maturities 1,718 2,234 Long-term debt and capital lease obligations, net of current maturities $ 19,364 $ 16,592 The table below shows availability under revolving credit facilities, all of which were undrawn, as of June 30, 2016 (in millions): 2013 Revolving Facility $ 1,400 2014 Revolving Facility 1,025 Total $ 2,425 2016 Financing Activities 2016-1 EETCs In January 2016, American created three pass-through trusts which issued approximately $1.1 billion aggregate face amount of Series 2016-1 Class AA, Class A and Class B EETCs (the 2016-1 EETCs) in connection with the financing of 22 aircraft owned by American (the 2016-1 EETC Aircraft). All of the proceeds received from the sale of the 2016-1 EETCs have been used to purchase equipment notes issued by American in three series: Series AA equipment notes in the principal amount of $584 million bearing interest at 3.575% per annum, Series A equipment notes in the principal amount of $262 million bearing interest at 4.10% per annum and Series B equipment notes in the principal amount of $228 million bearing interest at 5.25% per annum. Interest and principal payments on the equipment notes are payable semi-annually in January and July of each year, beginning in July 2016. The final payments on the Series AA and Series A equipment notes are due in January 2028 and the final payment on the Series B equipment notes is due in January 2024. These equipment notes are secured by liens on the 2016-1 EETC Aircraft. 2016-2 EETCs In May 2016, American created two pass-through trusts which issued approximately $829 million aggregate face amount of Series 2016-2 Class AA and Class A EETCs (the 2016-2 EETCs) in connection with the financing of 22 aircraft owned by American or scheduled to be delivered to American in July 2016 and August 2016 (the 2016-2 EETC Aircraft). Proceeds received from the sale of the 2016-2 EETCs were deposited in escrow for the benefit of holders of the 2016-2 EETCs until such time as American issues equipment notes to the pass-through trusts, which will purchase the notes with a portion of the escrowed funds. These escrowed funds are not guaranteed by American and are not reported as debt on its condensed consolidated balance sheet because the proceeds held by the depository are not American’s assets. As of June 30, 2016, $595 million of the escrowed proceeds from the 2016-2 EETCs have been used to purchase equipment notes issued by American in two series: Series AA equipment notes in the amount of $407 million bearing interest at 3.20% per annum and Series A equipment notes in the amount of $188 million bearing interest at 3.65% per annum. Interest and principal on the equipment notes are payable semi-annually in June and December of each year, with interest payments beginning in December 2016 and principal payments beginning in June 2017. The final payments on the Series AA and Series A equipment notes are due in June 2028. These equipment notes are secured by liens on 14 of the 2016-2 EETC Aircraft. The remaining $234 million of escrowed proceeds will be used to purchase equipment notes as the remaining eight aircraft are delivered. 2016 Credit Facilities On April 29, 2016, American and AAG entered into a Credit and Guaranty Agreement (the 2016 Credit Agreement), among American, as the borrower, AAG as parent and guarantor, and Barclays Bank PLC, as administrative agent and collateral agent. The 2016 Credit Agreement provides for a $1.0 billion term loan facility (the 2016 Term Loan Facility) and a revolving credit facility that may be established in the future (the 2016 Revolving Credit Facility, and together with the 2016 Term Loan Facility, the 2016 Credit Facilities). As of June 30, 2016, $1.0 billion was outstanding under the 2016 Term Loan Facility. The proceeds from the 2016 Term Loan Facility were used to repay approximately $588 million in remaining principal plus accrued and unpaid interest of the 2013 Citicorp Credit Facility Tranche B-2 with the remainder of the proceeds to be used for general corporate purposes. The 2016 Term Loan Facility matures in April 2023, unless otherwise extended by the applicable parties, and is repayable in annual installments in an amount equal to 1.00% of the original principal balance with any unpaid balance due on the maturity date of the 2016 Term Loan Facility. Voluntary prepayments may be made by American at any time, with a premium of 1.0% applicable to certain prepayments made prior to the date that is six months following April 29, 2016. Borrowings under the 2016 Term Loan Facility bear interest at an index rate plus an applicable index margin or, at American’s option, LIBOR (subject to a floor of 0.75%) plus an applicable LIBOR margin. The applicable LIBOR margin is 2.75% for borrowings under the 2016 Term Loan Facility. The obligations of American under the 2016 Credit Agreement are secured by a lien on aircraft spare parts owned by American. American has the ability to add or release certain types of collateral, subject to certain conditions, at its discretion. The obligations of American under the 2016 Credit Facilities are guaranteed by AAG. American is required to periodically appraise the value of its collateral and calculate the collateral coverage ratio. If the calculated collateral coverage ratio is below 1.6 to 1.0, American may be required either to provide additional collateral (which may include cash collateral) to secure its obligations under the 2016 Credit Agreement or repay the loans under the 2016 Credit Agreement or certain other indebtedness, in such amounts that the recalculated collateral coverage ratio, after giving effect to any such additional collateral or repayment, is at least 1.6 to 1.0. The 2016 Credit Facilities contain events of default customary for similar financings, including cross default to other material indebtedness. Upon the occurrence of an event of default, the outstanding obligations under the 2016 Credit Facilities may be accelerated and become due and payable immediately. In addition, if a “change of control” (as defined in the 2016 Credit Agreement) occurs with respect to AAG, American will (absent an amendment or waiver) be required to repay at par the loans outstanding under the 2016 Credit Facilities and terminate the 2016 Revolving Facility. The 2016 Credit Facilities also include covenants that, among other things, require AAG to maintain a minimum aggregate liquidity (as defined in the 2016 Credit Facilities) of not less than $2.0 billion, and limit the ability of AAG and its restricted subsidiaries to pay dividends and make certain other payments, make certain investments, incur liens on the collateral, dispose of the collateral, enter into certain affiliate transactions and engage in certain business activities, in each case subject to certain exceptions. Obligations Associated with Special Facility Revenue Bonds In June 2016, the New York Transportation Development Corporation (NYTDC) issued approximately $844 million of special facility revenue refunding bonds (the 2016 JFK Bonds) on behalf of American. The net proceeds from the 2016 JFK Bonds generally were used to provide a portion of the funds to refinance $1.0 billion of the existing outstanding special facility revenue bonds (Prior JFK Bonds). The net proceeds from the Prior JFK Bonds partially financed the construction of a terminal used by American at John F. Kennedy International Airport (JFK) (the Terminal). American is required to pay debt service on the 2016 JFK Bonds through payments under a loan agreement with NYTDC, and American and AAG guarantee the 2016 JFK Bonds. American’s and AAG’s obligations under these guarantees are secured by a mortgage on American’s lease of the Terminal and related property from the Port Authority of New York and New Jersey. The 2016 JFK Bonds, in aggregate, were priced at approximately 107% of par value. The gross proceeds from the issuance of the 2016 JFK Bonds were approximately $907 million. Of this amount, approximately $895 million was used to partially fund the redemption of the Prior JFK Bonds. The 2016 JFK Bonds bear interest at 5.0% per annum and are comprised of $212 million of serial bonds, portions of which mature annually from August 1, 2017 to August 1, 2021, and $632 million of term bonds, $278 million of which matures on August 1, 2026 and $354 million of which matures on August 1, 2031. In connection with the refinancing of the Prior JFK Bonds, American recorded a special nonoperating charge of $36 million consisting of non-cash write offs of unamortized bond discounts and issuance costs as well as payments of redemption premiums and fees. Other Aircraft Financing Transactions In the first six months of 2016, American entered into loan agreements to borrow $1.0 billion in connection with the financing of certain aircraft. Debt incurred under these loan agreements matures in 2026 through 2028. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes | 6. Income Taxes At December 31, 2015, we had approximately $8.0 billion of gross net operating losses (NOLs) carried over from prior taxable years (NOL Carryforwards) to reduce future federal taxable income, substantially all of which are expected to be available for use in 2016. The federal NOL Carryforwards will expire beginning in 2023 if unused. We also had approximately $4.0 billion of NOL Carryforwards to reduce future state taxable income at December 31, 2015, which will expire in years 2016 through 2034 if unused. At December 31, 2015, we had an Alternative Minimum Tax credit carryforward of approximately $341 million available for federal income tax purposes, which is available for an indefinite period. In connection with the preparation of our financial statements for the fourth quarter of 2015, we determined that it was more likely than not that substantially all of our deferred tax assets, which include our NOLs, would be realized. Accordingly, we reversed $3.0 billion of the valuation allowance as of December 31, 2015. Beginning in the first six months of 2016, we recorded income tax expense with an effective rate of approximately 38%, which is substantially non-cash as we utilized the NOLs described above. For purposes of taxation, substantially all of our income before income taxes is attributable to the United States. |
American Airlines, Inc. [Member] | |
Income Taxes | 4. Income Taxes At December 31, 2015, American had approximately $8.8 billion of gross net operating losses (NOLs) carried over from prior taxable years (NOL Carryforwards) to reduce future federal taxable income, substantially all of which are expected to be available for use in 2016. American is a member of AAG’s consolidated federal and certain state income tax returns. The amount of federal NOL Carryforwards available in those returns is $8.0 billion, substantially all of which is expected to be available for use in 2016. The federal NOL Carryforwards will expire beginning in 2023 if unused. American also had approximately $3.7 billion of NOL Carryforwards to reduce future state taxable income at December 31, 2015, which will expire in years 2016 through 2034 if unused. At December 31, 2015, American had an Alternative Minimum Tax credit carryforward of approximately $458 million available for federal income tax purposes, which is available for an indefinite period. In connection with the preparation of American’s financial statements for the fourth quarter of 2015, management determined that it was more likely than not that substantially all of its deferred tax assets, which include its NOLs, would be realized. Accordingly, American reversed $3.5 billion of the valuation allowance as of December 31, 2015. Beginning in the first six months of 2016, American recorded income tax expense with an effective rate of approximately 38%, which is substantially non-cash as American utilized the NOLs described above. For purposes of taxation, substantially all of American’s income before income taxes is attributable to the United States. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements | 7. Fair Value Measurements Assets Measured at Fair Value on a Recurring Basis We utilize the market approach to measure fair value for our financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. Our short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No changes in valuation techniques or inputs occurred during the six months ended June 30, 2016. Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of June 30, 2016 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) Money market funds $ 709 $ 709 $ — $ — Corporate obligations 3,234 — 3,234 — Bank notes/certificates of deposit/time deposits 2,529 — 2,529 — Repurchase agreements 200 — 200 — 6,672 709 5,963 — Restricted cash and short-term investments (1) 640 640 — — Total $ 7,312 $ 1,349 $ 5,963 $ — (1) Unrealized gains or losses on short-term investments and restricted cash and 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 $235 million of bank notes/certificates of deposit/time deposits and $230 million of corporate obligations. There were no Level 1 to Level 2 transfers during the six months ended June 30, 2016. Fair Value of Debt The fair value of our long-term debt was estimated using quoted market prices or discounted cash flow analyses, based on our current estimated incremental borrowing rates for similar types of borrowing arrangements. If our long-term debt was measured at fair value, it would have been classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of our long-term debt, including current maturities, were as follows (in millions): June 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 22,846 $ 23,452 $ 20,561 $ 21,111 Cash and Short-term Investments Generally, fluctuations in foreign currencies, including devaluations, cannot be predicted by us and can significantly affect the value of our cash and short-term investments located outside the United States. These conditions, as well as any further delays, devaluations or imposition of more stringent repatriation restrictions, may materially adversely affect our business, results of operations and financial condition. See Part II, Item 1A. Risk Factors – “We operate a global business with international operations that are subject to economic and political instability and have been, and in the future may continue to be, adversely affected by numerous events, circumstances or government actions beyond our control” |
American Airlines, Inc. [Member] | |
Fair Value Measurements | 5. Fair Value Measurements Assets Measured at Fair Value on a Recurring Basis American utilizes the market approach to measure fair value for its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. American’s short-term investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No changes in valuation techniques or inputs occurred during the six months ended June 30, 2016. Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of June 30, 2016 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) Money market funds $ 707 $ 707 $ — $ — Corporate obligations 3,234 — 3,234 — Bank notes/certificates of deposit/time deposits 2,528 — 2,528 — Repurchase agreements 200 — 200 — 6,669 707 5,962 — Restricted cash and short-term investments (1) 640 640 — — Total $ 7,309 $ 1,347 $ 5,962 $ — (1) Unrealized gains or losses on short-term investments and restricted cash and 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 $235 million of bank notes/certificates of deposit/time deposits and $230 million of corporate obligations. There were no Level 1 to Level 2 transfers during the six months ended June 30, 2016. Fair Value of Debt The fair value of American’s long-term debt was estimated using quoted market prices or discounted cash flow analyses, based on American’s current estimated incremental borrowing rates for similar types of borrowing arrangements. If American’s long-term debt was measured at fair value, it would have been classified as Level 2 in the fair value hierarchy. The carrying value and estimated fair value of American’s long-term debt, including current maturities, were as follows (in millions): June 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 21,082 $ 21,683 $ 18,826 $ 19,378 Cash and Short-term Investments Generally, fluctuations in foreign currencies, including devaluations, cannot be predicted by American and can significantly affect the value of American’s cash and short-term investments located outside the United States. These conditions, as well as any further delays, devaluations or imposition of more stringent repatriation restrictions, may materially adversely affect American’s business, results of operations and financial condition. See Part II, Item 1A. Risk Factors – “We operate a global business with international operations that are subject to economic and political instability and have been, and in the future may continue to be, adversely affected by numerous events, circumstances or government actions beyond our control” |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jun. 30, 2016 | |
Retirement Benefits | 8. Retirement Benefits The following tables provide the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Postretirement Benefits Three Months Ended June 30, 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 188 184 12 13 Expected return on assets (187 ) (213 ) (5 ) (5 ) Settlements — 1 — — Amortization of: Prior service cost (benefit) (1) 7 7 (60 ) (61 ) Unrecognized net loss (gain) 31 28 (4 ) (2 ) Net periodic benefit cost (income) $ 40 $ 8 $ (56 ) $ (54 ) (1) Each of the 2016 and 2015 second quarters’ prior service cost does not include amortization of $1 million related to other postretirement benefits. Pension Benefits Retiree Medical and Other Postretirement Benefits Six Months Ended June 30, 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 375 369 24 26 Expected return on assets (375 ) (426 ) (10 ) (10 ) Settlements — 1 — — Amortization of: Prior service cost (benefit) (1) 14 14 (120 ) (121 ) Unrecognized net loss (gain) 63 56 (8 ) (3 ) Net periodic benefit cost (income) $ 78 $ 15 $ (112 ) $ (106 ) (1) Each of the 2016 and 2015 six months’ prior service cost does not include amortization of $1 million related to other postretirement benefits. Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen. |
American Airlines, Inc. [Member] | |
Retirement Benefits | 6. Retirement Benefits The following tables provide the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Postretirement Benefits Three Months Ended June 30, 2016 2015 2016 2015 Service cost $ — $ — $ 1 $ 1 Interest cost 187 184 12 13 Expected return on assets (187 ) (212 ) (5 ) (5 ) Settlements — 1 — — Amortization of: Prior service cost (benefit) (1) 7 7 (60 ) (61 ) Unrecognized net loss (gain) 31 28 (4 ) (2 ) Net periodic benefit cost (income) $ 38 $ 8 $ (56 ) $ (54 ) (1) Each of the 2016 and 2015 second quarters’ prior service cost does not include amortization of $1 million related to other postretirement benefits. Pension Benefits Retiree Medical and Other Postretirement Benefits Six Months Ended June 30, 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 373 367 24 26 Expected return on assets (373 ) (424 ) (10 ) (10 ) Settlements — 1 — — Amortization of: Prior service cost (benefit) (1) 14 14 (120 ) (121 ) Unrecognized net loss (gain) 63 56 (8 ) (3 ) Net periodic benefit cost (income) $ 78 $ 15 $ (112 ) $ (106 ) (1) Each of the 2016 and 2015 six months’ prior service cost does not include amortization of $1 million related to other postretirement benefits. Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) | 9. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) (AOCI) are as follows (in millions): Pension, Retiree Benefits Unrealized Investments Income Tax (Provision) Total Balance at December 31, 2015 $ (3,842 ) $ (10 ) $ (880 ) (1) $ (4,732 ) Other comprehensive income (loss) before reclassifications (5 ) 6 — 1 Amounts reclassified from accumulated other comprehensive income (loss) (50 ) — 18 (2) (32 ) Net current-period other comprehensive income (loss) (55 ) 6 18 (31 ) Balance at June 30, 2016 $ (3,897 ) $ (4 ) $ (862 ) $ (4,763 ) (1) Relates to pension, retiree medical and other postretirement obligations that will not be recognized in net income until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement obligations and is recognized within the income tax provision on the condensed consolidated statement of operations. Reclassifications out of AOCI for the three and six months ended June 30, 2016 and 2015 are as follows (in millions): Amounts reclassified from AOCI AOCI Components Three Months Ended June 30, Six Months Ended June 30, Affected line items on condensed 2016 2015 2016 2015 Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ (33 ) $ (53 ) $ (67 ) $ (106 ) Salaries, wages and benefits Actuarial loss 17 27 35 54 Salaries, wages and benefits Derivative financial instruments: Cash flow hedges — (3 ) — (9 ) Aircraft fuel and related taxes Net unrealized change on investments: Net change in value — (1 ) — — Other nonoperating, net Total reclassifications for the period, net of tax $ (16 ) $ (30 ) $ (32 ) $ (61 ) |
American Airlines, Inc. [Member] | |
Accumulated Other Comprehensive Income (Loss) | 7. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) (AOCI) are as follows (in millions): Pension, Retiree Medical and Other Postretirement Benefits Unrealized Gain (Loss) on Investments Income Tax Benefit (Provision) Total Balance at December 31, 2015 $ (3,831 ) $ (9 ) $ (991 ) (1) $ (4,831 ) Other comprehensive income (loss) before reclassifications (5 ) 6 — 1 Amounts reclassified from accumulated other comprehensive income (loss) (50 ) — 18 (2) (32 ) Net current-period other comprehensive income (loss) (55 ) 6 18 (31 ) Balance at June 30, 2016 $ (3,886 ) $ (3 ) $ (973 ) $ (4,862 ) (1) Relates to pension, retiree medical and other postretirement obligations that will not be recognized in net income until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement obligations and is recognized within the income tax provision on the condensed consolidated statement of operations. Reclassifications out of AOCI for the three and six months ended June 30, 2016 and 2015 are as follows (in millions): Amounts reclassified from AOCI AOCI Components Three Months Ended June 30, Six Months Ended June 30, Affected line items on condensed consolidated statement of operations 2016 2015 2016 2015 Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ (33 ) $ (53 ) $ (67 ) $ (106 ) Salaries, wages and benefits Actuarial loss 17 27 35 54 Salaries, wages and benefits Derivative financial instruments: Cash flow hedges — (3 ) — (9 ) Aircraft fuel and related taxes Net unrealized change on investments: Net change in value — (1 ) — — Other nonoperating, net Total reclassifications for the period, net of tax $ (16 ) $ (30 ) $ (32 ) $ (61 ) |
Regional Expenses
Regional Expenses | 6 Months Ended |
Jun. 30, 2016 | |
Regional Expenses | 10. Regional Expenses Expenses associated with our wholly-owned regional airlines and third-party regional carriers operating under the brand name American Eagle are classified as regional expenses on the condensed consolidated statements of operations. Regional expenses consist of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Aircraft fuel and related taxes $ 279 $ 349 $ 498 $ 660 Salaries, wages and benefits 330 293 656 585 Capacity purchases from third-party regional carriers 392 417 786 818 Maintenance, materials and repairs 88 95 183 170 Other rent and landing fees 142 129 270 243 Aircraft rent 9 8 18 17 Selling expenses 88 89 166 165 Depreciation and amortization 72 63 140 123 Special items, net 3 10 8 18 Other 115 104 225 220 Total regional expenses $ 1,518 $ 1,557 $ 2,950 $ 3,019 |
American Airlines, Inc. [Member] | |
Regional Expenses | 8. Regional Expenses Expenses associated with regional carriers operating under the brand name American Eagle are classified as regional expenses on the condensed consolidated statements of operations. Regional expenses consist of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Aircraft fuel and related taxes $ 279 $ 349 $ 498 $ 660 Salaries, wages and benefits 83 69 167 136 Capacity purchases from third-party regional carriers 889 828 1,773 1,631 Maintenance, materials and repairs 1 1 2 1 Other rent and landing fees 122 112 231 210 Aircraft rent 7 7 14 14 Selling expenses 88 89 166 166 Depreciation and amortization 58 49 112 95 Special items, net 3 5 8 9 Other 70 71 136 152 Total regional expenses $ 1,600 $ 1,580 $ 3,107 $ 3,074 |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 2016 | |
Legal Proceedings | 11. Legal Proceedings Chapter 11 Cases. Pursuant to rulings of the Bankruptcy Court, the Plan established the Disputed Claims Reserve to hold shares of AAG common stock reserved for issuance to disputed claimholders at the Effective Date that ultimately become holders of allowed “Single-Dip” unsecured claims. As of June 30, 2016, there were approximately 25.2 million shares of AAG common stock remaining in the Disputed Claims Reserve. As disputed claims are resolved, the claimants will receive distributions of shares from the Disputed Claims Reserve on the same basis as if such distributions had been made on or about the Effective Date. However, we are not required to distribute additional shares above the limits contemplated by the Plan, even if the shares remaining for distribution are not sufficient to fully pay any additional allowed unsecured claims. To the extent that any of the reserved shares remain undistributed upon resolution of all remaining disputed claims, such shares will not be returned to us but rather will be distributed to former AMR stockholders as of the Effective Date. There is also pending in the Bankruptcy Court an adversary proceeding relating to an action brought by American to seek a determination that certain non-pension, postemployment benefits are not vested benefits and thus may be modified or terminated without liability to American. On April 18, 2014, the Bankruptcy Court granted American’s motion for summary judgment with respect to certain non-union employees, concluding that their benefits were not vested and could be terminated. The summary judgment motion was denied with respect to all other retirees. The Bankruptcy Court has not yet scheduled a trial on the merits concerning whether those retirees’ benefits are vested, and American cannot predict whether it will receive relief from obligations to provide benefits to any of those retirees. Our financial statements presently reflect these retirement programs without giving effect to any modification or termination of benefits that may ultimately be implemented based upon the outcome of this proceeding. DOJ Antitrust Civil Investigative Demand. Private Party Antitrust Action DOJ Investigation Related to the United States Postal Service General We may be a party to litigation in the normal course of business or otherwise, which could affect our financial position and liquidity |
American Airlines, Inc. [Member] | |
Legal Proceedings | 10. Legal Proceedings Chapter 11 Cases. Pursuant to rulings of the Bankruptcy Court, the Plan established the Disputed Claims Reserve to hold shares of AAG common stock reserved for issuance to disputed claimholders at the Effective Date that ultimately become holders of allowed “Single-Dip” unsecured claims. As of June 30, 2016, there were approximately 25.2 million shares of AAG common stock remaining in the Disputed Claims Reserve. As disputed claims are resolved, the claimants will receive distributions of shares from the Disputed Claims Reserve on the same basis as if such distributions had been made on or about the Effective Date. However, American is not required to distribute additional shares above the limits contemplated by the Plan, even if the shares remaining for distribution are not sufficient to fully pay any additional allowed unsecured claims. To the extent that any of the reserved shares remain undistributed upon resolution of all remaining disputed claims, such shares will not be returned to AAG but rather will be distributed to former AMR stockholders as of the Effective Date. There is also pending in the Bankruptcy Court an adversary proceeding relating to an action brought by American to seek a determination that certain non-pension, postemployment benefits are not vested benefits and thus may be modified or terminated without liability to American. On April 18, 2014, the Bankruptcy Court granted American’s motion for summary judgment with respect to certain non-union employees, concluding that their benefits were not vested and could be terminated. The summary judgment motion was denied with respect to all other retirees. The Bankruptcy Court has not yet scheduled a trial on the merits concerning whether those retirees’ benefits are vested, and American cannot predict whether it will receive relief from obligations to provide benefits to any of those retirees. American’s financial statements presently reflect these retirement programs without giving effect to any modification or termination of benefits that may ultimately be implemented based upon the outcome of this proceeding. DOJ Antitrust Civil Investigative Demand. Private Party Antitrust Action DOJ Investigation Related to the United States Postal Service General We may be a party to litigation in the normal course of business or otherwise, which could affect our financial position and liquidity |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events | 12. Subsequent Events Co-branded Credit Card Agreements On July 12, 2016, American, Citi, Barclaycard US and MasterCard issued a joint press release announcing entry into new agreements relating to American’s co-branded credit card program. Under the new arrangements, American will partner with two banks to provide co-branded credit cards. Citi and Barclaycard US will both issue AAdvantage co-branded credit cards commencing in January 2017. American also announced a new exclusive partnership and direct relationship with MasterCard. All new AAdvantage co-branded credit cards will be affiliated with MasterCard going forward. Consistent with our prior co-branded credit card agreements, we will account for these new agreements in accordance with ASU 2009-13, “Revenue Recognition (Topic 605) – Multiple-Deliverable Revenue Arrangements” as disclosed in our critical accounting policies and the consolidated financial statements and accompanying notes contained in our 2015 Form 10-K. 2016-2 Class B EETCs In July 2016, American created one additional pass-through trust which issued approximately $227 million aggregate face amount of 2016-2 Class B EETCs (the 2016-2 Class B EETCs) in connection with the financing of the 2016-2 EETC Aircraft. A portion of the proceeds received from the sale of the 2016-2 Class B EETCs were used on the date of issuance of the 2016-2 Class B EETCs to acquire Series B equipment notes issued by American to the pass-through trust and the balance of such proceeds are being held in escrow for the benefit of the holders of the 2016-2 Class B EETCs until such time as American issues additional Series B equipment notes to the pass-through trust, which will purchase the notes with a portion of the escrowed funds. These escrowed funds are not guaranteed by American and are not reported as debt on our condensed consolidated balance sheet because the proceeds held by the depository are not American’s assets. Series B equipment notes bear interest at 4.375% per annum. Interest and principal on the equipment notes will be payable semi-annually in June and December of each year, with interest payments beginning in December 2016 and principal payments beginning in June 2017. The final payments on the Series B equipment notes are due in June 2024. Dividend Declaration In July 2016, we announced that our Board of Directors had declared a $0.10 per share dividend for stockholders of record on August 5, 2016, and payable on August 19, 2016. Any future dividends that may be declared and paid from time to time will be subject to market and economic conditions, applicable legal requirements and other relevant factors. We are not obligated to continue a dividend for any fixed period, and payment of dividends may be suspended at any time at our discretion. |
American Airlines, Inc. [Member] | |
Subsequent Events | 11. Subsequent Events Co-branded Credit Card Agreements On July 12, 2016, American, Citi, Barclaycard US and MasterCard issued a joint press release announcing entry into new agreements relating to American’s co-branded credit card program. Under the new arrangements, American will partner with two banks to provide co-branded credit cards. Citi and Barclaycard US will both issue AAdvantage co-branded credit cards commencing in January 2017. American also announced a new exclusive partnership and direct relationship with MasterCard. All new AAdvantage co-branded credit cards will be affiliated with MasterCard going forward. Consistent with American’s prior co-branded credit card agreements, American will account for these new agreements in accordance with ASU 2009-13, “Revenue Recognition (Topic 605) – Multiple-Deliverable Revenue Arrangements” as disclosed in American’s critical accounting policies and the consolidated financial statements and accompanying notes contained in American’s 2015 Form 10-K. 2016-2 Class B EETCs In July 2016, American created one additional pass-through trust which issued approximately $227 million aggregate face amount of 2016-2 Class B EETCs (the 2016-2 Class B EETCs) in connection with the financing of the 2016-2 EETC Aircraft. A portion of the proceeds received from the sale of the 2016-2 Class B EETCs were used on the date of issuance of the 2016-2 Class B EETCs to acquire Series B equipment notes issued by American to the pass-through trust and the balance of such proceeds are being held in escrow for the benefit of the holders of the 2016-2 Class B EETCs until such time as American issues additional Series B equipment notes to the pass-through trust, which will purchase the notes with a portion of the escrowed funds. These escrowed funds are not guaranteed by American and are not reported as debt on its condensed consolidated balance sheet because the proceeds held by the depository are not American’s assets. Series B equipment notes bear interest at 4.375% per annum. Interest and principal on the equipment notes will be payable semi-annually in June and December of each year, with interest payments beginning in December 2016 and principal payments beginning in June 2017. The final payments on the Series B equipment notes are due in June 2024. |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2016 | |
American Airlines, Inc. [Member] | |
Transactions with Related Parties | 9. Transactions with Related Parties The following represents the net receivables (payables) to related parties (in millions): June 30, 2016 December 31, 2015 AAG (1) $ 8,002 $ 4,489 AAG’s wholly-owned subsidiaries (2) (2,616 ) (2,508 ) Total $ 5,386 $ 1,981 (1) The increase in American’s net related party receivable from AAG is primarily due to American providing the cash funding for AAG’s share repurchase programs. (2) The net payable to AAG’s wholly-owned subsidiaries consists primarily of amounts due under regional capacity purchase agreements with AAG’s wholly-owned regional airlines operating under the brand name of American Eagle. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of American Airlines Group Inc. (we, us, our and similar terms, or AAG) should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2015. The accompanying unaudited condensed consolidated financial statements include the accounts of AAG and its wholly-owned subsidiaries. AAG’s principal subsidiary is American Airlines, Inc. (American). All significant intercompany transactions have been eliminated. On December 9, 2013 (the Effective Date), AMR Merger Sub, Inc. merged with and into US Airways Group, Inc. (US Airways Group) (the Merger), with US Airways Group surviving as a wholly-owned subsidiary of AAG, a Delaware corporation (formerly known as AMR Corporation or AMR) following the Merger. On December 30, 2015, in order to simplify our internal corporate structure and as part of the integration efforts following the business combination of AAG and US Airways Group, AAG caused US Airways Group to be merged with and into AAG, with AAG as the surviving corporation, and, immediately thereafter, US Airways, Inc. (US Airways), a Delaware corporation and wholly-owned subsidiary of US Airways Group, merged with and into American, with American as the surviving corporation. As a result of the merger of US Airways and American, US Airways transferred all of its assets, liabilities and off-balance sheet commitments to American. For financial reporting purposes, this transaction constituted a transfer of assets between entities under common control and was accounted for at historical cost. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, as well as pensions, retiree medical and other postretirement benefits. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). Subsequently, the FASB has issued several additional ASUs to clarify the implementation guidance on principal versus agent considerations, identifying performance obligations, assessing collectability, presentation of sales taxes and other similar taxes collected from customers, non-cash consideration, contract modifications and completed contracts at transition. These ASUs apply to all companies that enter into contracts with customers to transfer goods or services. These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Entities have the choice to apply these ASUs either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying these standards at the date of initial application and not adjusting comparative information. We are currently evaluating the requirements of these standards and have not yet determined the impact on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the requirements of ASU 2016-02 and have not yet determined its impact on our condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies the accounting for share-based payment award transactions including the financial statement presentation of excess tax benefits and deficiencies, classification of awards as either equity or liabilities, accounting for forfeitures and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. We early adopted this standard in the three months ended June 30, 2016. The adoption of this standard results in the recognition of $418 million of previously unrecognized excess tax benefits in deferred tax assets and an increase to retained earnings on the condensed consolidated balance sheet as of the beginning of the current year and the recognition of $9 million of excess tax benefits to the income tax provision for each of the three and six months ended June 30, 2016, respectively. |
American Airlines, Inc. [Member] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of American Airlines, Inc. (American) should be read in conjunction with the consolidated financial statements contained in American’s Annual Report on Form 10-K for the year ended December 31, 2015. American is the principal wholly-owned subsidiary of American Airlines Group Inc. (AAG). All significant intercompany transactions have been eliminated. On December 9, 2013 (the Effective Date), AMR Merger Sub, Inc. merged with and into US Airways Group, Inc. (US Airways Group) (the Merger), with US Airways Group surviving as a wholly-owned subsidiary of AAG, a Delaware corporation (formerly known as AMR Corporation or AMR) following the Merger. On December 30, 2015, in order to simplify AAG’s internal corporate structure and as part of the integration efforts following the business combination of AAG and US Airways Group, AAG caused US Airways Group to be merged with and into AAG, with AAG as the surviving corporation, and, immediately thereafter, US Airways, Inc. (US Airways), a Delaware corporation and wholly-owned subsidiary of US Airways Group, merged with and into American, with American as the surviving corporation. As a result of the merger of US Airways and American, US Airways transferred all of its assets and liabilities, including obligations with respect to certain pass through trusts and the leases of related aircraft and engines, as well as its off-balance sheet commitments, to American. For financial reporting purposes, this transaction constituted a transfer of assets between entities under common control and is reflected in American’s condensed consolidated financial statements as though the transaction had occurred on December 9, 2013, when a subsidiary of AMR merged with and into US Airways Group, which represents the earliest date that American and US Airways were under common control. Thus, all periods presented in Part I, Item 1B of this Quarterly Report on Form 10-Q are comprised of the condensed consolidated financial data of American and US Airways. This transaction was accounted for in a manner similar to the pooling of interests method of accounting. Under this method, the carrying amount of net assets recognized in the balance sheets of each combining entity are carried forward to the balance sheet of the combined entity and no other assets or liabilities are recognized. Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and intangible assets, the loyalty program, as well as pensions, retiree medical and other postretirement benefits. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). Subsequently, the FASB has issued several additional ASUs to clarify the implementation guidance on principal versus agent considerations, identifying performance obligations, assessing collectability, presentation of sales taxes and other similar taxes collected from customers, non-cash consideration, contract modifications and completed contracts at transition. These ASUs apply to all companies that enter into contracts with customers to transfer goods or services. These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Entities have the choice to apply these ASUs either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying these standards at the date of initial application and not adjusting comparative information. American is currently evaluating the requirements of these standards and has not yet determined the impact on its condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. American is currently evaluating the requirements of ASU 2016-02 and has not yet determined its impact on its condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies the accounting for share-based payment award transactions including the financial statement presentation of excess tax benefits and deficiencies, classification of awards as either equity or liabilities, accounting for forfeitures and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. American early adopted this standard in the three months ended June 30, 2016. The adoption of this standard results in the recognition of $418 million of previously unrecognized excess tax benefits in deferred tax assets and an increase to retained earnings on the condensed consolidated balance sheet as of the beginning of the current year and the recognition of $9 million of excess tax benefits to the income tax provision for each of the three and six months ended June 30, 2016, respectively. |
Special Items (Tables)
Special Items (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Components of Special Items, Net Included in Condensed Consolidated Statements of Operations | Special items, net on the condensed consolidated statements of operations are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Mainline operating special items, net (1) $ 62 $ 144 $ 161 $ 447 (1) The 2016 second quarter mainline operating special items totaled a net charge of $62 million, which principally included $112 million of merger integration expenses, offset in part by a $56 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. The 2016 six month period mainline operating special items totaled a net charge of $161 million, which principally included $242 million of merger integration expenses, offset in part by a $61 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. For the 2016 second quarter and six month periods, merger integration expenses included costs related to information technology, alignment of labor union contracts, fleet restructuring, re-branding of aircraft, airport facilities and uniforms, professional fees, severance, as well as relocation and training. The 2015 second quarter mainline operating special items totaled a net charge of $144 million, which principally included $224 million of merger integration expenses, offset in part by a $68 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. The 2015 six month period mainline operating special items totaled a net charge of $447 million, which principally included $543 million of merger integration expenses, offset in part by a $73 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. For the 2015 second quarter and six month periods, merger integration expenses included costs related to alignment of labor union contracts, fleet restructuring, information technology, professional fees, severance, re-branding of aircraft, airport facilities and uniforms, relocation and training, as well as share-based compensation. The following additional amounts are also included in the condensed consolidated statements of operations as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Regional operating special items, net $ 3 $ 10 $ 8 $ 18 Nonoperating special items, net (1) 36 (11 ) 36 (19 ) Income tax special items, net — 7 — 16 (1) In connection with a bond refinancing, we recorded a $36 million nonoperating special charge in the 2016 second quarter and six month periods related to non-cash write offs of unamortized bond discounts and issuance costs as well as payments of redemption premiums and fees. |
American Airlines, Inc. [Member] | |
Components of Special Items, Net Included in Condensed Consolidated Statements of Operations | Special items, net on the condensed consolidated statements of operations are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Mainline operating special items, net (1) $ 62 $ 144 $ 161 $ 447 (1) The 2016 second quarter mainline operating special items totaled a net charge of $62 million, which principally included $112 million of merger integration expenses, offset in part by a $56 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. The 2016 six month period mainline operating special items totaled a net charge of $161 million, which principally included $242 million of merger integration expenses, offset in part by a $61 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. For the 2016 second quarter and six month periods, merger integration expenses included costs related to information technology, alignment of labor union contracts, fleet restructuring, re-branding of aircraft, airport facilities and uniforms, professional fees, severance, as well as relocation and training. The 2015 second quarter mainline operating special items totaled a net charge of $144 million, which principally included $224 million of merger integration expenses, offset in part by a $68 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. The 2015 six month period mainline operating special items totaled a net charge of $447 million, which principally included $543 million of merger integration expenses, offset in part by a $73 million net credit for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations. For the 2015 second quarter and six month periods, merger integration expenses included costs related to alignment of labor union contracts, fleet restructuring, information technology, professional fees, severance, re-branding of aircraft, airport facilities and uniforms, relocation and training, as well as share-based compensation. The following additional amounts are also included in the condensed consolidated statements of operations as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Regional operating special items, net $ 3 $ 5 $ 8 $ 9 Nonoperating special items, net (1) 36 11 36 3 Income tax special items, net — 7 — 16 (1) In connection with a bond refinancing, American recorded a $36 million nonoperating special charge in the 2016 second quarter and six month periods related to non-cash write offs of unamortized bond discounts and issuance costs as well as payments of redemption premiums and fees. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted earnings per common share (EPS) (in millions, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Basic EPS: Net income $ 950 $ 1,704 $ 1,650 $ 2,636 Weighted-average common shares outstanding (in thousands) 563,000 688,727 584,622 692,571 Basic EPS $ 1.69 $ 2.47 $ 2.82 $ 3.81 Diluted EPS: Net income for purposes of computing diluted EPS $ 950 $ 1,704 $ 1,650 $ 2,636 Share computation for diluted EPS (in thousands): Basic weighted average common shares outstanding 563,000 688,727 584,622 692,571 Dilutive effect of stock awards 3,040 18,884 4,142 19,699 Diluted weighted average common shares outstanding 566,040 707,611 588,764 712,270 Diluted EPS $ 1.68 $ 2.41 $ 2.80 $ 3.70 The following were excluded from the calculation of diluted EPS (in thousands): Stock options, stock appreciation rights and restricted stock unit awards because inclusion would be antidilutive 2,601 905 1,845 453 |
Share Repurchase Programs and23
Share Repurchase Programs and Dividends (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Summary of Cash Dividends Declared | Our Board of Directors declared the following cash dividends during the first six months of 2016: Period Per share For stockholders of record as of Payable on Cash paid (millions) First Quarter $ 0.10 February 10, 2016 February 24, 2016 $ 61 Second Quarter $ 0.10 May 4, 2016 May 18, 2016 58 Total $ 119 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Components of Long-Term Debt | Long-term debt and capital lease obligations included in the condensed consolidated balance sheets consisted of (in millions): June 30, 2016 December 31, 2015 Secured 2013 Credit Facilities, variable interest rate of 3.25%, installments through 2020 $ 1,843 $ 1,867 2014 Credit Facilities, variable interest rate of 3.50%, installments through 2021 743 743 2016 Credit Facilities, variable interest rate of 3.50%, installments through 2023 1,000 — 2013 Citicorp Credit Facility tranche B-1, variable interest rate of 3.50%, installments through 2019 970 980 2013 Citicorp Credit Facility tranche B-2 — 588 Aircraft enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.20% to 9.75%, maturing from 2017 to 2028 10,076 8,693 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.85% to 8.48%, maturing from 2016 to 2028 4,904 4,183 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 8.00%, maturing from 2017 to 2035 891 1,080 Other secured obligations, fixed interest rates ranging from 3.60% to 12.24%, maturing from 2016 to 2028 880 923 21,307 19,057 Unsecured 5.50% senior notes, interest only payments until due in 2019 750 750 6.125% senior notes, interest only payments until due in 2018 500 500 4.625% senior notes, interest only payments until due in 2020 500 500 1,750 1,750 Total long-term debt and capital lease obligations 23,057 20,807 Less: Total unamortized debt discount and debt issuance costs 211 246 Less: Current maturities 1,715 2,231 Long-term debt and capital lease obligations, net of current maturities $ 21,131 $ 18,330 |
Summary of Availability under Revolving Credit Facilities | The table below shows availability under revolving credit facilities, all of which were undrawn, as of June 30, 2016 (in millions): 2013 Revolving Facility $ 1,400 2014 Revolving Facility 1,025 Total $ 2,425 |
American Airlines, Inc. [Member] | |
Components of Long-Term Debt | Long-term debt and capital lease obligations included in the condensed consolidated balance sheets consisted of (in millions): June 30, 2016 December 31, 2015 Secured 2013 Credit Facilities, variable interest rate of 3.25%, installments through 2020 $ 1,843 $ 1,867 2014 Credit Facilities, variable interest rate of 3.50%, installments through 2021 743 743 2016 Credit Facilities, variable interest rate of 3.50%, installments through 2023 1,000 — 2013 Citicorp Credit Facility tranche B-1, variable interest rate of 3.50%, installments through 2019 970 980 2013 Citicorp Credit Facility tranche B-2 — 588 Aircraft enhanced equipment trust certificates (EETCs), fixed interest rates ranging from 3.20% to 9.75%, maturing from 2017 to 2028 10,076 8,693 Equipment loans and other notes payable, fixed and variable interest rates ranging from 1.85% to 8.48%, maturing from 2016 to 2028 4,904 4,183 Special facility revenue bonds, fixed interest rates ranging from 5.00% to 5.50%, maturing from 2017 to 2035 862 1,051 Other secured obligations, fixed interest rates ranging from 3.60% to 12.24%, maturing from 2016 to 2028 879 922 21,277 19,027 Unsecured Affiliate unsecured obligations — 27 — 27 Total long-term debt and capital lease obligations 21,277 19,054 Less: Total unamortized debt discount and debt issuance costs 195 228 Less: Current maturities 1,718 2,234 Long-term debt and capital lease obligations, net of current maturities $ 19,364 $ 16,592 |
Summary of Availability under Revolving Credit Facilities | The table below shows availability under revolving credit facilities, all of which were undrawn, as of June 30, 2016 (in millions): 2013 Revolving Facility $ 1,400 2014 Revolving Facility 1,025 Total $ 2,425 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of June 30, 2016 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) Money market funds $ 709 $ 709 $ — $ — Corporate obligations 3,234 — 3,234 — Bank notes/certificates of deposit/time deposits 2,529 — 2,529 — Repurchase agreements 200 — 200 — 6,672 709 5,963 — Restricted cash and short-term investments (1) 640 640 — — Total $ 7,312 $ 1,349 $ 5,963 $ — (1) Unrealized gains or losses on short-term investments and restricted cash and 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 $235 million of bank notes/certificates of deposit/time deposits and $230 million of corporate obligations. |
Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt, Including Current Maturities | The carrying value and estimated fair value of our long-term debt, including current maturities, were as follows (in millions): June 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 22,846 $ 23,452 $ 20,561 $ 21,111 |
American Airlines, Inc. [Member] | |
Summary of Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of June 30, 2016 Total Level 1 Level 2 Level 3 Short-term investments (1), (2) Money market funds $ 707 $ 707 $ — $ — Corporate obligations 3,234 — 3,234 — Bank notes/certificates of deposit/time deposits 2,528 — 2,528 — Repurchase agreements 200 — 200 — 6,669 707 5,962 — Restricted cash and short-term investments (1) 640 640 — — Total $ 7,309 $ 1,347 $ 5,962 $ — (1) Unrealized gains or losses on short-term investments and restricted cash and 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 $235 million of bank notes/certificates of deposit/time deposits and $230 million of corporate obligations. |
Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt, Including Current Maturities | The carrying value and estimated fair value of American’s long-term debt, including current maturities, were as follows (in millions): June 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 21,082 $ 21,683 $ 18,826 $ 19,378 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Components of Net Periodic Benefit Cost (Income) | The following tables provide the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Postretirement Benefits Three Months Ended June 30, 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 188 184 12 13 Expected return on assets (187 ) (213 ) (5 ) (5 ) Settlements — 1 — — Amortization of: Prior service cost (benefit) (1) 7 7 (60 ) (61 ) Unrecognized net loss (gain) 31 28 (4 ) (2 ) Net periodic benefit cost (income) $ 40 $ 8 $ (56 ) $ (54 ) (1) Each of the 2016 and 2015 second quarters’ prior service cost does not include amortization of $1 million related to other postretirement benefits. Pension Benefits Retiree Medical and Other Postretirement Benefits Six Months Ended June 30, 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 375 369 24 26 Expected return on assets (375 ) (426 ) (10 ) (10 ) Settlements — 1 — — Amortization of: Prior service cost (benefit) (1) 14 14 (120 ) (121 ) Unrecognized net loss (gain) 63 56 (8 ) (3 ) Net periodic benefit cost (income) $ 78 $ 15 $ (112 ) $ (106 ) (1) Each of the 2016 and 2015 six months’ prior service cost does not include amortization of $1 million related to other postretirement benefits. |
American Airlines, Inc. [Member] | |
Components of Net Periodic Benefit Cost (Income) | The following tables provide the components of net periodic benefit cost (income) (in millions): Pension Benefits Retiree Medical and Other Postretirement Benefits Three Months Ended June 30, 2016 2015 2016 2015 Service cost $ — $ — $ 1 $ 1 Interest cost 187 184 12 13 Expected return on assets (187 ) (212 ) (5 ) (5 ) Settlements — 1 — — Amortization of: Prior service cost (benefit) (1) 7 7 (60 ) (61 ) Unrecognized net loss (gain) 31 28 (4 ) (2 ) Net periodic benefit cost (income) $ 38 $ 8 $ (56 ) $ (54 ) (1) Each of the 2016 and 2015 second quarters’ prior service cost does not include amortization of $1 million related to other postretirement benefits. Pension Benefits Retiree Medical and Other Postretirement Benefits Six Months Ended June 30, 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 373 367 24 26 Expected return on assets (373 ) (424 ) (10 ) (10 ) Settlements — 1 — — Amortization of: Prior service cost (benefit) (1) 14 14 (120 ) (121 ) Unrecognized net loss (gain) 63 56 (8 ) (3 ) Net periodic benefit cost (income) $ 78 $ 15 $ (112 ) $ (106 ) (1) Each of the 2016 and 2015 six months’ prior service cost does not include amortization of $1 million related to other postretirement benefits. |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) (AOCI) are as follows (in millions): Pension, Retiree Benefits Unrealized Investments Income Tax (Provision) Total Balance at December 31, 2015 $ (3,842 ) $ (10 ) $ (880 ) (1) $ (4,732 ) Other comprehensive income (loss) before reclassifications (5 ) 6 — 1 Amounts reclassified from accumulated other comprehensive income (loss) (50 ) — 18 (2) (32 ) Net current-period other comprehensive income (loss) (55 ) 6 18 (31 ) Balance at June 30, 2016 $ (3,897 ) $ (4 ) $ (862 ) $ (4,763 ) (1) Relates to pension, retiree medical and other postretirement obligations that will not be recognized in net income until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement obligations and is recognized within the income tax provision on the condensed consolidated statement of operations. |
Reclassification out of AOCI | Reclassifications out of AOCI for the three and six months ended June 30, 2016 and 2015 are as follows (in millions): Amounts reclassified from AOCI AOCI Components Three Months Ended June 30, Six Months Ended June 30, Affected line items on condensed 2016 2015 2016 2015 Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ (33 ) $ (53 ) $ (67 ) $ (106 ) Salaries, wages and benefits Actuarial loss 17 27 35 54 Salaries, wages and benefits Derivative financial instruments: Cash flow hedges — (3 ) — (9 ) Aircraft fuel and related taxes Net unrealized change on investments: Net change in value — (1 ) — — Other nonoperating, net Total reclassifications for the period, net of tax $ (16 ) $ (30 ) $ (32 ) $ (61 ) |
American Airlines, Inc. [Member] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) (AOCI) are as follows (in millions): Pension, Retiree Medical and Other Postretirement Benefits Unrealized Gain (Loss) on Investments Income Tax Benefit (Provision) Total Balance at December 31, 2015 $ (3,831 ) $ (9 ) $ (991 ) (1) $ (4,831 ) Other comprehensive income (loss) before reclassifications (5 ) 6 — 1 Amounts reclassified from accumulated other comprehensive income (loss) (50 ) — 18 (2) (32 ) Net current-period other comprehensive income (loss) (55 ) 6 18 (31 ) Balance at June 30, 2016 $ (3,886 ) $ (3 ) $ (973 ) $ (4,862 ) (1) Relates to pension, retiree medical and other postretirement obligations that will not be recognized in net income until the obligations are fully extinguished. (2) Relates to pension, retiree medical and other postretirement obligations and is recognized within the income tax provision on the condensed consolidated statement of operations. |
Reclassification out of AOCI | Reclassifications out of AOCI for the three and six months ended June 30, 2016 and 2015 are as follows (in millions): Amounts reclassified from AOCI AOCI Components Three Months Ended June 30, Six Months Ended June 30, Affected line items on condensed consolidated statement of operations 2016 2015 2016 2015 Amortization of pension, retiree medical and other postretirement benefits: Prior service cost (benefit) $ (33 ) $ (53 ) $ (67 ) $ (106 ) Salaries, wages and benefits Actuarial loss 17 27 35 54 Salaries, wages and benefits Derivative financial instruments: Cash flow hedges — (3 ) — (9 ) Aircraft fuel and related taxes Net unrealized change on investments: Net change in value — (1 ) — — Other nonoperating, net Total reclassifications for the period, net of tax $ (16 ) $ (30 ) $ (32 ) $ (61 ) |
Regional Expenses (Tables)
Regional Expenses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Components of Regional Expenses | Regional expenses consist of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Aircraft fuel and related taxes $ 279 $ 349 $ 498 $ 660 Salaries, wages and benefits 330 293 656 585 Capacity purchases from third-party regional carriers 392 417 786 818 Maintenance, materials and repairs 88 95 183 170 Other rent and landing fees 142 129 270 243 Aircraft rent 9 8 18 17 Selling expenses 88 89 166 165 Depreciation and amortization 72 63 140 123 Special items, net 3 10 8 18 Other 115 104 225 220 Total regional expenses $ 1,518 $ 1,557 $ 2,950 $ 3,019 |
American Airlines, Inc. [Member] | |
Components of Regional Expenses | Regional expenses consist of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Aircraft fuel and related taxes $ 279 $ 349 $ 498 $ 660 Salaries, wages and benefits 83 69 167 136 Capacity purchases from third-party regional carriers 889 828 1,773 1,631 Maintenance, materials and repairs 1 1 2 1 Other rent and landing fees 122 112 231 210 Aircraft rent 7 7 14 14 Selling expenses 88 89 166 166 Depreciation and amortization 58 49 112 95 Special items, net 3 5 8 9 Other 70 71 136 152 Total regional expenses $ 1,600 $ 1,580 $ 3,107 $ 3,074 |
Transactions with Related Par29
Transactions with Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
American Airlines, Inc. [Member] | |
Summary of Net Receivables (Payables) to Related Parties | The following represents the net receivables (payables) to related parties (in millions): June 30, 2016 December 31, 2015 AAG (1) $ 8,002 $ 4,489 AAG’s wholly-owned subsidiaries (2) (2,616 ) (2,508 ) Total $ 5,386 $ 1,981 (1) The increase in American’s net related party receivable from AAG is primarily due to American providing the cash funding for AAG’s share repurchase programs. (2) The net payable to AAG’s wholly-owned subsidiaries consists primarily of amounts due under regional capacity purchase agreements with AAG’s wholly-owned regional airlines operating under the brand name of American Eagle. |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - ASU 2016-09 [Member] - Adjustments for New Accounting Principle, Early Adoption [Member] $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred tax assets, previously unrecognized excess tax benefits from stock compensation | $ 418 | $ 418 |
Recognition of excess tax benefits from share based compensation to income tax provision | 9 | 9 |
Retained Earnings (Deficit) [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase to retained earnings due to recognition of previously unrecognized excess tax benefits from stock compensation | 418 | 418 |
American Airlines, Inc. [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred tax assets, previously unrecognized excess tax benefits from stock compensation | 418 | 418 |
Recognition of excess tax benefits from share based compensation to income tax provision | 9 | 9 |
American Airlines, Inc. [Member] | Retained Earnings (Deficit) [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase to retained earnings due to recognition of previously unrecognized excess tax benefits from stock compensation | $ 418 | $ 418 |
Special Items - Components of C
Special Items - Components of Company's Special Items, Net Included in Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Operating special items, net | $ 62 | $ 144 | $ 161 | $ 447 |
Nonoperating special items, net | 36 | (11) | 36 | (19) |
Income tax special items, net | 7 | 16 | ||
Regional Carrier [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Operating special items, net | 3 | 10 | 8 | 18 |
American Airlines, Inc. [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Operating special items, net | 62 | 144 | 161 | 447 |
Nonoperating special items, net | 36 | 11 | 36 | 3 |
Income tax special items, net | 7 | 16 | ||
American Airlines, Inc. [Member] | Regional Carrier [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Operating special items, net | $ 3 | $ 5 | $ 8 | $ 9 |
Special Items - Additional Disc
Special Items - Additional Disclosures (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Operating special items, net | $ 62 | $ 144 | $ 161 | $ 447 |
Merger integration expenses | 112 | 224 | 242 | 543 |
Fair value adjustments for bankruptcy settlement obligations | 56 | 68 | 61 | 73 |
American Airlines, Inc. [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Operating special items, net | 62 | 144 | 161 | 447 |
Merger integration expenses | 112 | 224 | 242 | 543 |
Fair value adjustments for bankruptcy settlement obligations | $ 56 | $ 68 | $ 61 | $ 73 |
Earnings (Loss) per Share - Com
Earnings (Loss) per Share - Computation of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic EPS: | ||||
Net income | $ 950 | $ 1,704 | $ 1,650 | $ 2,636 |
Weighted-average common shares outstanding (in thousands) | 563,000 | 688,727 | 584,622 | 692,571 |
Basic EPS (in dollars per share) | $ 1.69 | $ 2.47 | $ 2.82 | $ 3.81 |
Diluted EPS: | ||||
Net income for purposes of computing diluted EPS | $ 950 | $ 1,704 | $ 1,650 | $ 2,636 |
Share computation for diluted EPS (in thousands): | ||||
Basic weighted average common shares outstanding | 563,000 | 688,727 | 584,622 | 692,571 |
Dilutive effect of stock awards | 3,040 | 18,884 | 4,142 | 19,699 |
Diluted weighted average common shares outstanding | 566,040 | 707,611 | 588,764 | 712,270 |
Diluted EPS (in dollars per share) | $ 1.68 | $ 2.41 | $ 2.80 | $ 3.70 |
Stock options, stock appreciation rights and restricted stock unit awards excluded because inclusion would be antidilutive | 2,601 | 905 | 1,845 | 453 |
Share Repurchase Programs and34
Share Repurchase Programs and Dividends - Share Repurchase Programs (Detail) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | 24 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase programs, authorized amount | $ 9,000,000,000 | $ 9,000,000,000 | $ 9,000,000,000 |
Stock repurchase programs, remaining authorized amount | $ 1,200,000,000 | $ 1,200,000,000 | $ 1,200,000,000 |
Common Stock [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased (in shares) | shares | 50.2 | 89.5 | 198.1 |
Aggregate stock repurchase price | $ 1,700,000,000 | $ 3,200,000,000 | $ 7,800,000,000 |
Average cost per share (in dollars per share) | $ / shares | $ 33.55 | $ 36.28 | $ 39.54 |
Share Repurchase Programs and35
Share Repurchase Programs and Dividends - Dividends (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Equity [Abstract] | |||||
Cash dividends declared (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
Cash paid | $ 58 | $ 61 | $ 119 |
Debt - Components of Long-Term
Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 23,057 | $ 20,807 |
Less: Total unamortized debt discount and debt issuance costs | 211 | 246 |
Less: Current maturities | 1,715 | 2,231 |
Long-term debt and capital lease obligations, net of current maturities | 21,131 | 18,330 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | 21,307 | 19,057 |
Secured Debt [Member] | 2013 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 1,843 | 1,867 |
Interest rate | 3.25% | |
Secured Debt [Member] | 2014 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 743 | 743 |
Interest rate | 3.50% | |
Secured Debt [Member] | 2016 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 1,000 | |
Interest rate | 3.50% | |
Secured Debt [Member] | Credit Facility, Tranche B-1, Citicorp 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 970 | 980 |
Interest rate | 3.50% | |
Secured Debt [Member] | Credit Facility, Tranche B-2, Citicorp 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | 588 | |
Secured Debt [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 10,076 | 8,693 |
Secured Debt [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.20% | |
Secured Debt [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 9.75% | |
Secured Debt [Member] | Equipment Loansand Other Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 4,904 | 4,183 |
Secured Debt [Member] | Equipment Loansand Other Notes Payable [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.85% | |
Secured Debt [Member] | Equipment Loansand Other Notes Payable [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.48% | |
Secured Debt [Member] | Special Facility Revenue Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 891 | 1,080 |
Secured Debt [Member] | Special Facility Revenue Bonds [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.00% | |
Secured Debt [Member] | Special Facility Revenue Bonds [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.00% | |
Secured Debt [Member] | Other Secured Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 880 | 923 |
Secured Debt [Member] | Other Secured Obligations [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.60% | |
Secured Debt [Member] | Other Secured Obligations [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 12.24% | |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 1,750 | 1,750 |
Unsecured Debt [Member] | 5.50% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 750 | 750 |
Interest rate | 5.50% | |
Unsecured Debt [Member] | 6.125% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 500 | 500 |
Interest rate | 6.125% | |
Unsecured Debt [Member] | 4.625% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 500 | 500 |
Interest rate | 4.625% | |
American Airlines, Inc. [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 21,277 | 19,054 |
Less: Total unamortized debt discount and debt issuance costs | 195 | 228 |
Less: Current maturities | 1,718 | 2,234 |
Long-term debt and capital lease obligations, net of current maturities | 19,364 | 16,592 |
American Airlines, Inc. [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | 21,277 | 19,027 |
American Airlines, Inc. [Member] | Secured Debt [Member] | 2013 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 1,843 | 1,867 |
Interest rate | 3.25% | |
American Airlines, Inc. [Member] | Secured Debt [Member] | 2014 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 743 | 743 |
Interest rate | 3.50% | |
American Airlines, Inc. [Member] | Secured Debt [Member] | 2016 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 1,000 | |
Interest rate | 3.50% | |
American Airlines, Inc. [Member] | Secured Debt [Member] | Credit Facility, Tranche B-1, Citicorp 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 970 | 980 |
Interest rate | 3.50% | |
American Airlines, Inc. [Member] | Secured Debt [Member] | Credit Facility, Tranche B-2, Citicorp 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | 588 | |
American Airlines, Inc. [Member] | Secured Debt [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 10,076 | 8,693 |
American Airlines, Inc. [Member] | Secured Debt [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.20% | |
American Airlines, Inc. [Member] | Secured Debt [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 9.75% | |
American Airlines, Inc. [Member] | Secured Debt [Member] | Equipment Loansand Other Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 4,904 | 4,183 |
American Airlines, Inc. [Member] | Secured Debt [Member] | Equipment Loansand Other Notes Payable [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.85% | |
American Airlines, Inc. [Member] | Secured Debt [Member] | Equipment Loansand Other Notes Payable [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.48% | |
American Airlines, Inc. [Member] | Secured Debt [Member] | Special Facility Revenue Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 862 | 1,051 |
American Airlines, Inc. [Member] | Secured Debt [Member] | Special Facility Revenue Bonds [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.00% | |
American Airlines, Inc. [Member] | Secured Debt [Member] | Special Facility Revenue Bonds [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | |
American Airlines, Inc. [Member] | Secured Debt [Member] | Other Secured Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 879 | 922 |
American Airlines, Inc. [Member] | Secured Debt [Member] | Other Secured Obligations [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.60% | |
American Airlines, Inc. [Member] | Secured Debt [Member] | Other Secured Obligations [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 12.24% | |
American Airlines, Inc. [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | 27 | |
American Airlines, Inc. [Member] | Unsecured Debt [Member] | Affiliate Unsecured Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt and capital lease obligations | $ 27 |
Debt - Summary of Availability
Debt - Summary of Availability under Revolving Credit Facilities (Detail) - Revolving Credit Facility [Member] - Secured Debt [Member] $ in Millions | Jun. 30, 2016USD ($) |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | $ 2,425 |
2013 Credit Facilities [Member] | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | 1,400 |
2014 Credit Facilities [Member] | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | 1,025 |
American Airlines, Inc. [Member] | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | 2,425 |
American Airlines, Inc. [Member] | 2013 Credit Facilities [Member] | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | 1,400 |
American Airlines, Inc. [Member] | 2014 Credit Facilities [Member] | |
Line of Credit Facility [Line Items] | |
Availability under revolving credit facilities | $ 1,025 |
Debt - Components of Long-Ter38
Debt - Components of Long-Term Debt - 2016-1 Aircraft Enhanced Equipment Trust Certificates (Detail) - Enhanced Equipment Trust Certificates (EETC) [Member] $ in Millions | 1 Months Ended |
Jan. 31, 2016USD ($)AircraftDebt_Instruments | |
2016-1 EETC [Member] | |
Debt Instrument [Line Items] | |
Number of debt instruments issued | Debt_Instruments | 3 |
Debt instrument principal amount | $ 1,100 |
Number of aircraft financed by debt issuance | Aircraft | 22 |
Series 2016-1 Class AA [Member] | |
Debt Instrument [Line Items] | |
Debt instrument principal amount | $ 584 |
Debt instrument, stated interest rate percentage | 3.575% |
Series 2016-1 Class A [Member] | |
Debt Instrument [Line Items] | |
Debt instrument principal amount | $ 262 |
Debt instrument, stated interest rate percentage | 4.10% |
Series 2016-1 Class B [Member] | |
Debt Instrument [Line Items] | |
Debt instrument principal amount | $ 228 |
Debt instrument, stated interest rate percentage | 5.25% |
American Airlines, Inc. [Member] | 2016-1 EETC [Member] | |
Debt Instrument [Line Items] | |
Number of debt instruments issued | Debt_Instruments | 3 |
Debt instrument principal amount | $ 1,100 |
Number of aircraft financed by debt issuance | Aircraft | 22 |
American Airlines, Inc. [Member] | Series 2016-1 Class AA [Member] | |
Debt Instrument [Line Items] | |
Debt instrument principal amount | $ 584 |
Debt instrument, stated interest rate percentage | 3.575% |
American Airlines, Inc. [Member] | Series 2016-1 Class A [Member] | |
Debt Instrument [Line Items] | |
Debt instrument principal amount | $ 262 |
Debt instrument, stated interest rate percentage | 4.10% |
American Airlines, Inc. [Member] | Series 2016-1 Class B [Member] | |
Debt Instrument [Line Items] | |
Debt instrument principal amount | $ 228 |
Debt instrument, stated interest rate percentage | 5.25% |
Debt - Components of Long-Ter39
Debt - Components of Long-Term Debt - 2016-2 Aircraft Enhanced Equipment Trust Certificates (Detail) - Enhanced Equipment Trust Certificates (EETC) [Member] $ in Millions | 1 Months Ended | 6 Months Ended |
May 31, 2016USD ($)AircraftDebt_Instruments | Jun. 30, 2016USD ($)Aircraft | |
2016-2 EETC [Member] | ||
Debt Instrument [Line Items] | ||
Number of debt instruments issued | Debt_Instruments | 2 | |
Debt instrument principal amount | $ 829 | |
Number of aircraft financed by debt issuance | Aircraft | 22 | |
Debt instrument, received cash proceeds | $ 595 | |
Remaining escrowed proceeds | $ 234 | |
Number of aircraft secured by liens | Aircraft | 14 | |
Number of aircraft to be delivered | Aircraft | 8 | |
2016-2 EETC Class AA [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument principal amount | $ 407 | |
Debt instrument, stated interest rate percentage | 3.20% | |
2016-2 EETC Class A [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument principal amount | $ 188 | |
Debt instrument, stated interest rate percentage | 3.65% | |
American Airlines, Inc. [Member] | 2016-2 EETC [Member] | ||
Debt Instrument [Line Items] | ||
Number of debt instruments issued | Debt_Instruments | 2 | |
Debt instrument principal amount | $ 829 | |
Number of aircraft financed by debt issuance | Aircraft | 22 | |
Debt instrument, received cash proceeds | $ 595 | |
Remaining escrowed proceeds | $ 234 | |
Number of aircraft secured by liens | Aircraft | 14 | |
Number of aircraft to be delivered | Aircraft | 8 | |
American Airlines, Inc. [Member] | 2016-2 EETC Class AA [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument principal amount | $ 407 | |
Debt instrument, stated interest rate percentage | 3.20% | |
American Airlines, Inc. [Member] | 2016-2 EETC Class A [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument principal amount | $ 188 | |
Debt instrument, stated interest rate percentage | 3.65% |
Debt - Components of Long-Ter40
Debt - Components of Long-Term Debt - 2016 Credit Facilities (Detail) - Secured Debt [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Apr. 29, 2016 | |
2016 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Required collateral coverage ratio | 1.6 | |
Minimum aggregate liquidity required under debt covenant | $ 2,000,000,000 | |
2016 Credit Facilities [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument principal amount | $ 1,000,000,000 | |
Long-term debt, net | $ 1,000,000,000 | |
Debt instrument, annual installment repayment, percent of original principal balance | 1.00% | |
Debt instrument, prepayment fee percentage | 1.00% | |
2016 Credit Facilities [Member] | Term Loan Facility [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate, floor | 0.75% | |
Debt instrument, basis spread on variable rate | 2.75% | |
Credit Facility, Tranche B-2, Citicorp 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of long-term debt | $ 588,000,000 | |
American Airlines, Inc. [Member] | 2016 Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Required collateral coverage ratio | 1.6 | |
American Airlines, Inc. [Member] | 2016 Credit Facilities [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument principal amount | $ 1,000,000,000 | |
Long-term debt, net | $ 1,000,000,000 | |
Debt instrument, annual installment repayment, percent of original principal balance | 1.00% | |
Debt instrument, prepayment fee percentage | 1.00% | |
American Airlines, Inc. [Member] | 2016 Credit Facilities [Member] | Term Loan Facility [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate, floor | 0.75% | |
Debt instrument, basis spread on variable rate | 2.75% | |
American Airlines, Inc. [Member] | Credit Facility, Tranche B-2, Citicorp 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of long-term debt | $ 588,000,000 |
Debt - Components of Long-Ter41
Debt - Components of Long-Term Debt - Obligations Associated with Special Facility Revenue Bonds (Detail) - John F. Kennedy Airport [Member] $ in Millions | 1 Months Ended |
Jun. 30, 2016USD ($) | |
Special Facility Revenue Bonds [Member] | |
Debt Instrument [Line Items] | |
Debt instrument principal amount | $ 844 |
Debt instrument, premium | 107.00% |
Gross proceeds from the issuance of bonds | $ 907 |
Debt instrument, stated interest rate percentage | 5.00% |
Nonoperating special items, net | $ 36 |
Special Facility Revenue Bonds [Member] | Serial Bonds [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, net | 212 |
Special Facility Revenue Bonds [Member] | Term Bonds [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, net | 632 |
Special Facility Revenue Bonds [Member] | Term Bonds [Member] | Term Bond Due on August 1, 2026 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, net | 278 |
Special Facility Revenue Bonds [Member] | Term Bonds [Member] | Term Bond Due on August 1, 2031 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, net | 354 |
Prior Special Facility Revenue Bonds [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, net | 1,000 |
Redemption of prior bonds | 895 |
American Airlines, Inc. [Member] | Special Facility Revenue Bonds [Member] | |
Debt Instrument [Line Items] | |
Debt instrument principal amount | $ 844 |
Debt instrument, premium | 107.00% |
Gross proceeds from the issuance of bonds | $ 907 |
Debt instrument, stated interest rate percentage | 5.00% |
Nonoperating special items, net | $ 36 |
American Airlines, Inc. [Member] | Special Facility Revenue Bonds [Member] | Serial Bonds [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, net | 212 |
American Airlines, Inc. [Member] | Special Facility Revenue Bonds [Member] | Term Bonds [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, net | 632 |
American Airlines, Inc. [Member] | Special Facility Revenue Bonds [Member] | Term Bonds [Member] | Term Bond Due on August 1, 2026 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, net | 278 |
American Airlines, Inc. [Member] | Special Facility Revenue Bonds [Member] | Term Bonds [Member] | Term Bond Due on August 1, 2031 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, net | 354 |
American Airlines, Inc. [Member] | Prior Special Facility Revenue Bonds [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, net | 1,000 |
Redemption of prior bonds | $ 895 |
Debt - Components of Long-Ter42
Debt - Components of Long-Term Debt - Other Aircraft Financing Transactions (Detail) - Secured Debt [Member] - Other Aircraft Financing Transaction [Member] $ in Millions | Jun. 30, 2016USD ($) |
Debt Instrument [Line Items] | |
Notes payable | $ 1,000 |
American Airlines, Inc. [Member] | |
Debt Instrument [Line Items] | |
Notes payable | $ 1 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||
Income tax expense, effective rate | 38.00% | |
Substantially All Deferred Tax Assets, Including Net Operating Losses [Member] | ||
Income Taxes [Line Items] | ||
Reversal of valuation allowance | $ (3,000) | |
Federal [Member] | ||
Income Taxes [Line Items] | ||
Gross NOL Carryforwards | 8,000 | |
State [Member] | ||
Income Taxes [Line Items] | ||
Gross NOL Carryforwards | 4,000 | |
Alternative Minimum Tax Credit Carryforward [Member] | ||
Income Taxes [Line Items] | ||
Alternative minimum tax credit carryforwards | 341 | |
American Airlines, Inc. [Member] | ||
Income Taxes [Line Items] | ||
Income tax expense, effective rate | 38.00% | |
American Airlines, Inc. [Member] | Substantially All Deferred Tax Assets, Including Net Operating Losses [Member] | ||
Income Taxes [Line Items] | ||
Reversal of valuation allowance | 3,500 | |
American Airlines, Inc. [Member] | Federal [Member] | ||
Income Taxes [Line Items] | ||
Gross NOL Carryforwards | 8,800 | |
American Airlines, Inc. [Member] | State [Member] | ||
Income Taxes [Line Items] | ||
Gross NOL Carryforwards | 3,700 | |
American Airlines, Inc. [Member] | Alternative Minimum Tax Credit Carryforward [Member] | ||
Income Taxes [Line Items] | ||
Alternative minimum tax credit carryforwards | $ 458 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] $ in Millions | Jun. 30, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | $ 6,672 |
Restricted cash and short-term investments | 640 |
Total | 7,312 |
Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 709 |
Restricted cash and short-term investments | 640 |
Total | 1,349 |
Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 5,963 |
Total | 5,963 |
Money Market Funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 709 |
Money Market Funds [Member] | Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 709 |
Corporate Bonds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,234 |
Corporate Bonds [Member] | Maturity Dates Exceeding One Year [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 230 |
Corporate Bonds [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,234 |
Bank Notes / Certificates of Deposit / Time Deposits [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 2,529 |
Bank Notes / Certificates of Deposit / Time Deposits [Member] | Maturity Dates Exceeding One Year [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 235 |
Bank Notes / Certificates of Deposit / Time Deposits [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 2,529 |
Repurchase Agreements [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 200 |
Repurchase Agreements [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 200 |
American Airlines, Inc. [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 6,669 |
Restricted cash and short-term investments | 640 |
Total | 7,309 |
American Airlines, Inc. [Member] | Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 707 |
Restricted cash and short-term investments | 640 |
Total | 1,347 |
American Airlines, Inc. [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 5,962 |
Total | 5,962 |
American Airlines, Inc. [Member] | Money Market Funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 707 |
American Airlines, Inc. [Member] | Money Market Funds [Member] | Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 707 |
American Airlines, Inc. [Member] | Corporate Bonds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,234 |
American Airlines, Inc. [Member] | Corporate Bonds [Member] | Maturity Dates Exceeding One Year [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 230 |
American Airlines, Inc. [Member] | Corporate Bonds [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 3,234 |
American Airlines, Inc. [Member] | Bank Notes / Certificates of Deposit / Time Deposits [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 2,528 |
American Airlines, Inc. [Member] | Bank Notes / Certificates of Deposit / Time Deposits [Member] | Maturity Dates Exceeding One Year [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 235 |
American Airlines, Inc. [Member] | Bank Notes / Certificates of Deposit / Time Deposits [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 2,528 |
American Airlines, Inc. [Member] | Repurchase Agreements [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 200 |
American Airlines, Inc. [Member] | Repurchase Agreements [Member] | Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | $ 200 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value and Estimated Fair Value of Long-Term Debt, Including Current Maturities (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | $ 22,846 | $ 20,561 |
Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | 23,452 | 21,111 |
American Airlines, Inc. [Member] | Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | 21,082 | 18,826 |
American Airlines, Inc. [Member] | Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | $ 21,683 | $ 19,378 |
Retirement Benefits - Component
Retirement Benefits - Components of Net Periodic Benefit Cost (Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | $ 1 | $ 1 | $ 1 | $ 1 |
Interest cost | 188 | 184 | 375 | 369 |
Expected return on assets | (187) | (213) | (375) | (426) |
Settlements | 1 | 1 | ||
Amortization of Prior service cost (benefit) | 7 | 7 | 14 | 14 |
Amortization of Unrecognized net loss (gain) | 31 | 28 | 63 | 56 |
Net periodic benefit cost (income) | 40 | 8 | 78 | 15 |
Pension Benefits [Member] | American Airlines, Inc. [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 1 | 1 | ||
Interest cost | 187 | 184 | 373 | 367 |
Expected return on assets | (187) | (212) | (373) | (424) |
Settlements | 1 | 1 | ||
Amortization of Prior service cost (benefit) | 7 | 7 | 14 | 14 |
Amortization of Unrecognized net loss (gain) | 31 | 28 | 63 | 56 |
Net periodic benefit cost (income) | 38 | 8 | 78 | 15 |
Retiree Medical And Other Postretirement Benefits [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 12 | 13 | 24 | 26 |
Expected return on assets | (5) | (5) | (10) | (10) |
Amortization of Prior service cost (benefit) | (60) | (61) | (120) | (121) |
Amortization of Unrecognized net loss (gain) | (4) | (2) | (8) | (3) |
Net periodic benefit cost (income) | (56) | (54) | (112) | (106) |
Amortization of prior service costs not included in net periodic benefit cost (income) | 1 | 1 | 1 | 1 |
Retiree Medical And Other Postretirement Benefits [Member] | American Airlines, Inc. [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 12 | 13 | 24 | 26 |
Expected return on assets | (5) | (5) | (10) | (10) |
Amortization of Prior service cost (benefit) | (60) | (61) | (120) | (121) |
Amortization of Unrecognized net loss (gain) | (4) | (2) | (8) | (3) |
Net periodic benefit cost (income) | (56) | (54) | (112) | (106) |
Amortization of prior service costs not included in net periodic benefit cost (income) | $ 1 | $ 1 | $ 1 | $ 1 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
AOCI tax, attributable to parent [Roll Forward] | ||||
Beginning Balance, tax | $ (880) | |||
Other comprehensive income (loss) before reclassifications, tax | 0 | |||
Amounts reclassified from accumulated other comprehensive income (loss), tax | 18 | |||
Net current-period other comprehensive income (loss), tax | 18 | |||
Ending Balance, tax | $ (862) | (862) | ||
AOCI attributable to parent, net of tax [Roll Forward] | ||||
Beginning Balance, net of tax | (4,732) | |||
Other comprehensive income (loss) before reclassifications, net of tax | 1 | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (16) | $ (30) | (32) | $ (61) |
Total other comprehensive loss, net of tax | (14) | (30) | (31) | (61) |
Ending Balance, net of tax | (4,763) | (4,763) | ||
Pension, Retiree Medical, and Other Postretirement Benefits [Member] | ||||
AOCI attributable to parent, before tax [Roll Forward] | ||||
Beginning Balance, before tax | (3,842) | |||
Other comprehensive income (loss) before reclassifications, before tax | (5) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (50) | |||
Total other comprehensive income (loss), before tax | (55) | |||
Ending Balance, before tax | (3,897) | (3,897) | ||
Unrealized Gain/(Loss) on Investments [Member] | ||||
AOCI attributable to parent, before tax [Roll Forward] | ||||
Beginning Balance, before tax | (10) | |||
Other comprehensive income (loss) before reclassifications, before tax | 6 | |||
Total other comprehensive income (loss), before tax | 6 | |||
Ending Balance, before tax | (4) | (4) | ||
AOCI attributable to parent, net of tax [Roll Forward] | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (1) | |||
American Airlines, Inc. [Member] | ||||
AOCI tax, attributable to parent [Roll Forward] | ||||
Beginning Balance, tax | (991) | |||
Other comprehensive income (loss) before reclassifications, tax | 0 | |||
Amounts reclassified from accumulated other comprehensive income (loss), tax | 18 | |||
Net current-period other comprehensive income (loss), tax | 18 | |||
Ending Balance, tax | (973) | (973) | ||
AOCI attributable to parent, net of tax [Roll Forward] | ||||
Beginning Balance, net of tax | (4,831) | |||
Other comprehensive income (loss) before reclassifications, net of tax | 1 | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (16) | (30) | (32) | (61) |
Total other comprehensive loss, net of tax | (14) | (30) | (31) | $ (61) |
Ending Balance, net of tax | (4,862) | (4,862) | ||
American Airlines, Inc. [Member] | Pension, Retiree Medical, and Other Postretirement Benefits [Member] | ||||
AOCI attributable to parent, before tax [Roll Forward] | ||||
Beginning Balance, before tax | (3,831) | |||
Other comprehensive income (loss) before reclassifications, before tax | (5) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (50) | |||
Total other comprehensive income (loss), before tax | (55) | |||
Ending Balance, before tax | (3,886) | (3,886) | ||
American Airlines, Inc. [Member] | Unrealized Gain/(Loss) on Investments [Member] | ||||
AOCI attributable to parent, before tax [Roll Forward] | ||||
Beginning Balance, before tax | (9) | |||
Other comprehensive income (loss) before reclassifications, before tax | 6 | |||
Total other comprehensive income (loss), before tax | 6 | |||
Ending Balance, before tax | $ (3) | $ (3) | ||
AOCI attributable to parent, net of tax [Roll Forward] | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | $ (1) |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | $ (16) | $ (30) | $ (32) | $ (61) |
American Airlines, Inc. [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | (16) | (30) | (32) | (61) |
Prior Service Cost (Benefit) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | (33) | (53) | (67) | (106) |
Prior Service Cost (Benefit) [Member] | American Airlines, Inc. [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | (33) | (53) | (67) | (106) |
Actuarial Loss [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | 17 | 27 | 35 | 54 |
Actuarial Loss [Member] | American Airlines, Inc. [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | $ 17 | 27 | $ 35 | 54 |
Derivative Financial Instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | (3) | (9) | ||
Derivative Financial Instruments [Member] | American Airlines, Inc. [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | (3) | $ (9) | ||
Unrealized Gain/(Loss) on Investments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | (1) | |||
Unrealized Gain/(Loss) on Investments [Member] | American Airlines, Inc. [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss), net of tax | $ (1) |
Regional Expenses (Detail)
Regional Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Regional Expenses [Line Items] | ||||
Aircraft fuel and related taxes | $ 1,314 | $ 1,774 | $ 2,343 | $ 3,318 |
Salaries, wages and benefits | 2,670 | 2,364 | 5,322 | 4,737 |
Maintenance, materials and repairs | 453 | 502 | 871 | 995 |
Other rent and landing fees | 458 | 451 | 879 | 859 |
Aircraft rent | 302 | 316 | 609 | 633 |
Selling expenses | 334 | 350 | 642 | 686 |
Depreciation and amortization | 374 | 340 | 729 | 676 |
Special items, net | 62 | 144 | 161 | 447 |
Other | 1,127 | 1,108 | 2,205 | 2,147 |
Total regional expenses | 1,518 | 1,557 | 2,950 | 3,019 |
American Airlines, Inc. [Member] | ||||
Regional Expenses [Line Items] | ||||
Aircraft fuel and related taxes | 1,314 | 1,774 | 2,343 | 3,318 |
Salaries, wages and benefits | 2,668 | 2,361 | 5,318 | 4,732 |
Maintenance, materials and repairs | 453 | 502 | 871 | 995 |
Other rent and landing fees | 458 | 451 | 879 | 859 |
Aircraft rent | 302 | 316 | 609 | 633 |
Selling expenses | 334 | 350 | 642 | 686 |
Depreciation and amortization | 374 | 340 | 729 | 676 |
Special items, net | 62 | 144 | 161 | 447 |
Other | 1,128 | 1,110 | 2,208 | 2,148 |
Total regional expenses | 1,600 | 1,580 | 3,107 | 3,074 |
Regional Carrier [Member] | ||||
Regional Expenses [Line Items] | ||||
Aircraft fuel and related taxes | 279 | 349 | 498 | 660 |
Salaries, wages and benefits | 330 | 293 | 656 | 585 |
Capacity purchases from third-party regional carriers | 392 | 417 | 786 | 818 |
Maintenance, materials and repairs | 88 | 95 | 183 | 170 |
Other rent and landing fees | 142 | 129 | 270 | 243 |
Aircraft rent | 9 | 8 | 18 | 17 |
Selling expenses | 88 | 89 | 166 | 165 |
Depreciation and amortization | 72 | 63 | 140 | 123 |
Special items, net | 3 | 10 | 8 | 18 |
Other | 115 | 104 | 225 | 220 |
Total regional expenses | 1,518 | 1,557 | 2,950 | 3,019 |
Regional Carrier [Member] | American Airlines, Inc. [Member] | ||||
Regional Expenses [Line Items] | ||||
Aircraft fuel and related taxes | 279 | 349 | 498 | 660 |
Salaries, wages and benefits | 83 | 69 | 167 | 136 |
Capacity purchases from third-party regional carriers | 889 | 828 | 1,773 | 1,631 |
Maintenance, materials and repairs | 1 | 1 | 2 | 1 |
Other rent and landing fees | 122 | 112 | 231 | 210 |
Aircraft rent | 7 | 7 | 14 | 14 |
Selling expenses | 88 | 89 | 166 | 166 |
Depreciation and amortization | 58 | 49 | 112 | 95 |
Special items, net | 3 | 5 | 8 | 9 |
Other | 70 | 71 | 136 | 152 |
Total regional expenses | $ 1,600 | $ 1,580 | $ 3,107 | $ 3,074 |
Legal Proceedings (Detail)
Legal Proceedings (Detail) shares in Millions | 1 Months Ended | |
Jun. 30, 2015Lawsuits | Jun. 30, 2016shares | |
Common Stock [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Shares reserved for future issuance | shares | 25.2 | |
DOJ Antitrust Civil Investigative Demand [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Number of putative class action lawsuits | 100 | |
American Airlines, Inc. [Member] | DOJ Antitrust Civil Investigative Demand [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Number of putative class action lawsuits | 100 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2016USD ($)Debt_Instruments$ / shares | Jun. 30, 2016$ / shares | Mar. 31, 2016$ / shares | Jun. 30, 2015$ / shares | Jun. 30, 2016$ / shares | Jun. 30, 2015$ / shares | |
Subsequent Event [Line Items] | ||||||
Dividend declared, per share | $ / shares | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 | |
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividend declared, per share | $ / shares | $ 0.10 | |||||
Subsequent Event [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | 2016-2 EETC Class B [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of debt instruments issued | Debt_Instruments | 1 | |||||
Debt instrument principal amount | $ | $ 227 | |||||
Subsequent Event [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | Equipment Notes, Series B [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, stated interest rate percentage | 4.375% | |||||
American Airlines, Inc. [Member] | Subsequent Event [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | 2016-2 EETC Class B [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of debt instruments issued | Debt_Instruments | 1 | |||||
Debt instrument principal amount | $ | $ 227 | |||||
American Airlines, Inc. [Member] | Subsequent Event [Member] | Enhanced Equipment Trust Certificates (EETC) [Member] | Equipment Notes, Series B [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, stated interest rate percentage | 4.375% |
Transactions with Related Par52
Transactions with Related Parties (Detail) - American Airlines, Inc. [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Net receivables (payables) to related parties | $ 5,386 | $ 1,981 |
American Airlines Group (Parent Company Only) [Member] | ||
Related Party Transaction [Line Items] | ||
Net receivables (payables) to related parties | 8,002 | 4,489 |
American Airlines Group's Wholly Owned Subsidiaries [Member] | ||
Related Party Transaction [Line Items] | ||
Net receivables (payables) to related parties | $ (2,616) | $ (2,508) |