Basis of Presentation and Summary of Significant Accounting Policies (Tables)
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12 Months Ended |
Dec. 31, 2017 |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] |
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Schedule of Estimated Useful Lives of Principal Property and Equipment |
The estimated useful lives for the principal property and equipment classifications are as follows: | | | Principal Property and Equipment Classification | Estimated Useful Life | Aircraft, engines and related rotable parts | 20 – 30 years | Buildings and improvements | 5 – 30 years | Furniture, fixtures and other equipment | 3 – 10 years | Capitalized software | 5 – 10 years |
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Schedule of Amortizable Intangible Assets |
The following table provides information relating to our amortizable intangible assets as of December 31, 2017 and 2016 (in millions): | | | | | | | | | | December 31, | | 2017 | | 2016 | Domestic airport slots | $ | 365 |
| | $ | 365 |
| Customer relationships | 300 |
| | 300 |
| Marketing agreements | 105 |
| | 105 |
| Tradenames | 35 |
| | 35 |
| Airport gate leasehold rights | 137 |
| | 137 |
| Accumulated amortization | (622 | ) | | (578 | ) | Total | $ | 320 |
| | $ | 364 |
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Schedule of Future Amortization Expense |
We expect to record annual amortization expense for these intangible assets as follows (in millions): | | | | | 2018 | $ | 41 |
| 2019 | 41 |
| 2020 | 41 |
| 2021 | 41 |
| 2022 | 41 |
| 2023 and thereafter | 115 |
| Total | $ | 320 |
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Components of Regional Expenses |
Regional expenses consist of the following (in millions): | | | | | | | | | | | | | | Year Ended December 31, | | 2017 | | 2016 | | 2015 | Aircraft fuel and related taxes | $ | 1,382 |
| | $ | 1,109 |
| | $ | 1,230 |
| Salaries, wages and benefits | 1,452 |
| | 1,333 |
| | 1,187 |
| Capacity purchases from third-party regional carriers (1) | 1,581 |
| | 1,538 |
| | 1,651 |
| Maintenance, materials and repairs | 281 |
| | 345 |
| | 323 |
| Other rent and landing fees | 625 |
| | 564 |
| | 504 |
| Aircraft rent | 35 |
| | 36 |
| | 34 |
| Selling expenses | 361 |
| | 347 |
| | 333 |
| Depreciation and amortization | 315 |
| | 301 |
| | 252 |
| Special items, net | 22 |
| | 14 |
| | 29 |
| Other | 492 |
| | 457 |
| | 440 |
| Total regional expenses | $ | 6,546 |
| | $ | 6,044 |
| | $ | 5,983 |
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| | (1) | For the years ended December 31, 2017, 2016 and 2015, the component of capacity purchase expenses representing the lease of aircraft for accounting purposes was approximately $437 million, $405 million and $492 million, respectively. |
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Schedule of New Accounting Pronouncements and Changes in Accounting Principles |
The expected effects of adoption of the New Revenue Standard and New Retirement Standard to our statement of operations for the twelve months ended December 31, 2017 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | New Revenue Standard | | New Retirement Standard | | | | As Reported | | Deferred Revenue Method | | Reclassifications | | Reclassifications | | As Recast | Operating revenues: | | | | | | | | | | Passenger | $ | 36,133 |
| | $ | 311 |
| | $ | 2,687 |
| | $ | — |
| | $ | 39,131 |
| Cargo | 800 |
| | — |
| | 90 |
| | — |
| | 890 |
| Other | 5,274 |
| | — |
| | (2,673 | ) | | — |
| | 2,601 |
| Total operating revenues | 42,207 |
| | 311 |
| | 104 |
| | — |
| | 42,622 |
| Total operating expenses | 38,149 |
| | — |
| | 104 |
| | 138 |
| | 38,391 |
| Operating income | 4,058 |
| | 311 |
| | — |
| | (138 | ) | | 4,231 |
| Total nonoperating expense, net | (974 | ) | | — |
| | — |
| | 138 |
| | (836 | ) | Income before income taxes | 3,084 |
| | 311 |
| | — |
| | — |
| | 3,395 |
| Income tax provision (1) | 1,165 |
| | 948 |
| | — |
| | — |
| | 2,113 |
| Net income | $ | 1,919 |
| | $ | (637 | ) | | $ | — |
| | $ | — |
| | $ | 1,282 |
| Diluted earnings per common share | $ | 3.90 |
| | | | | | | | $ | 2.61 |
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| | (1) | The adjustment to the 2017 income tax provision includes an $830 million special charge to reduce our deferred tax asset associated with loyalty program liabilities as a result of H.R. 1, the 2017 Tax Cuts and Jobs Act (the 2017 Tax Act), enacted in December 2017 that reduced the federal corporate income tax rate from 35% to 21%. |
The expected effects of adoption of the New Revenue Standard to our December 31, 2017 balance sheet are as follows: | | | | | | | | | | | | | | As Reported | | New Revenue Standard | | As Recast | Deferred tax asset | $ | 427 |
| | $ | 1,389 |
| | $ | 1,816 |
| Air traffic liability | 3,978 |
| | 64 |
| | 4,042 |
| Current loyalty program liability | 2,791 |
| | 384 |
| | 3,175 |
| Noncurrent loyalty program liability | — |
| | 5,647 |
| | 5,647 |
| Total stockholders’ equity (deficit) | 3,926 |
| | (4,706 | ) | | (780 | ) |
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American Airlines, Inc. [Member] |
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Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] |
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Schedule of Estimated Useful Lives of Principal Property and Equipment |
The estimated useful lives for the principal property and equipment classifications are as follows: | | | Principal Property and Equipment Classification | Estimated Useful Life | Aircraft, engines and related rotable parts | 20 – 30 years | Buildings and improvements | 5 – 30 years | Furniture, fixtures and other equipment | 3 – 10 years | Capitalized software | 5 – 10 years |
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Schedule of Amortizable Intangible Assets |
The following table provides information relating to American’s amortizable intangible assets as of December 31, 2017 and 2016 (in millions): | | | | | | | | | | December 31, | | 2017 | | 2016 | Domestic airport slots | $ | 365 |
| | $ | 365 |
| Customer relationships | 300 |
| | 300 |
| Marketing agreements | 105 |
| | 105 |
| Tradenames | 35 |
| | 35 |
| Airport gate leasehold rights | 137 |
| | 137 |
| Accumulated amortization | (622 | ) | | (578 | ) | Total | $ | 320 |
| | $ | 364 |
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Schedule of Future Amortization Expense |
American expects to record annual amortization expense for these intangible assets as follows (in millions): | | | | | 2018 | $ | 41 |
| 2019 | 41 |
| 2020 | 41 |
| 2021 | 41 |
| 2022 | 41 |
| 2023 and thereafter | 115 |
| Total | $ | 320 |
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Components of Regional Expenses |
Regional expenses consist of the following (in millions): | | | | | | | | | | | | | | Year Ended December 31, | | 2017 | | 2016 | | 2015 | Aircraft fuel and related taxes | $ | 1,382 |
| | $ | 1,109 |
| | $ | 1,230 |
| Salaries, wages and benefits | 356 |
| | 327 |
| | 276 |
| Capacity purchases from third-party regional carriers (1) | 3,283 |
| | 3,186 |
| | 3,137 |
| Maintenance, materials and repairs | 7 |
| | 4 |
| | 4 |
| Other rent and landing fees | 602 |
| | 487 |
| | 434 |
| Aircraft rent | 27 |
| | 28 |
| | 28 |
| Selling expenses | 361 |
| | 347 |
| | 333 |
| Depreciation and amortization | 262 |
| | 237 |
| | 197 |
| Special items, net | 3 |
| | 13 |
| | 18 |
| Other | 289 |
| | 271 |
| | 295 |
| Total regional expenses | $ | 6,572 |
| | $ | 6,009 |
| | $ | 5,952 |
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| | (1) | For the years ended December 31, 2017, 2016 and 2015, the component of capacity purchase expenses representing the lease of aircraft for accounting purposes was approximately $437 million, $405 million and $492 million, respectively. |
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Schedule of New Accounting Pronouncements and Changes in Accounting Principles |
The expected effects of adoption of the New Revenue Standard and New Retirement Standard to American’s statement of operations for the twelve months ended December 31, 2017 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | New Revenue Standard | | New Retirement Standard | | | | As Reported | | Deferred Revenue Method | | Reclassifications | | Reclassifications | | As Recast | Operating revenues: | | | | | | | | | | Passenger | $ | 36,133 |
| | $ | 311 |
| | $ | 2,687 |
| | $ | — |
| | $ | 39,131 |
| Cargo | 800 |
| | — |
| | 90 |
| | — |
| | 890 |
| Other | 5,262 |
| | — |
| | (2,673 | ) | | — |
| | 2,589 |
| Total operating revenues | 42,195 |
| | 311 |
| | 104 |
| | — |
| | 42,610 |
| Total operating expenses | 38,163 |
| | — |
| | 104 |
| | 138 |
| | 38,405 |
| Operating income | 4,032 |
| | 311 |
| | — |
| | (138 | ) | | 4,205 |
| Total nonoperating expense, net | (788 | ) | | — |
| | — |
| | 138 |
| | (650 | ) | Income before income taxes | 3,244 |
| | 311 |
| | — |
| | — |
| | 3,555 |
| Income tax provision (1) | 1,322 |
| | 948 |
| | — |
| | — |
| | 2,270 |
| Net income | $ | 1,922 |
| | $ | (637 | ) | | $ | — |
| | $ | — |
| | $ | 1,285 |
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| | (1) | The adjustment to the 2017 income tax provision includes an $830 million special charge to reduce American’s deferred tax asset associated with loyalty program liabilities as a result of H.R. 1, the 2017 Tax Cuts and Jobs Act (the 2017 Tax Act), enacted in December 2017 that reduced the federal corporate income tax rate from 35% to 21%. |
The expected effects of adoption of the New Revenue Standard to American’s December 31, 2017 balance sheet are as follows: | | | | | | | | | | | | | | As Reported | | New Revenue Standard | | As Recast | Deferred tax asset | $ | 682 |
| | $ | 1,389 |
| | $ | 2,071 |
| Air traffic liability | 3,978 |
| | 64 |
| | 4,042 |
| Current loyalty program liability | 2,791 |
| | 384 |
| | 3,175 |
| Noncurrent loyalty program liability | — |
| | 5,647 |
| | 5,647 |
| Total stockholder’s equity (deficit) | 14,594 |
| | (4,706 | ) | | 9,888 |
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