American Airlines 1997 Annual Report Download - page 67

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AMR CORPORATION
65
not temporary and, in accordance with Statement of
Financial Accounting Standards No. 115, “Accounting for
Certain Investments in Debt and Equity Securities,”
recorded a $192 million charge to write down the invest-
ment to its estimated fair value. Additionally, the Compa-
ny recorded a charge of $59 million to write off certain
deferred costs relating to the Company’s agreement to
provide a variety of services to Canadian.
The charge for loss of aircraft relates to the loss of an
aircraft operated by American in 1995.
15. Foreign Operations
American conducts operations in various foreign countries.
American’s operating revenues from foreign operations
were (in millions):
Year Ended December 31,
1997 1996 1995
Latin America $2,716 $2,438 $ 2,316
Europe 2,035 1,967 2,059
Pacific 356 336 373
Foreign operating revenues $5,107 $4,741 $ 4,748
The SABRE Group also conducts operations in various
foreign countries. The SABRE Group’s operating revenues
from foreign operations were $339 million, $284 million
and $251 million for 1997, 1996 and 1995, respectively.
16. Segment Information
AMR’s operations fall within three industry segments: the
Airline Group, The SABRE Group and the Management
Services Group. For a description of each of these groups,
refer to Management’s Discussion and Analysis on pages
34 and 35.
The following table presents selected financial data by
industry segment (in millions):
Year Ended December 31,
1997 1996 1995
Airline Group:
To tal revenues $16,903 $16,211 $15,501
Intergroup revenues 47 41 -
Operating income 1,569 1,442 564
Depreciation and
amortization expense 1,038 1,018 1,071
Restructuring costs - - 533
Capital expenditures 1,139 338 745
Identifiable assets 18,709 18,560 18,290
The SABRE Group:
To tal revenues 1,784 1,622 1,529
Intergroup revenues 526 500 548
Operating income 308 327 380
Depreciation and
amortization expense 185 165 171
Capital expenditures 218 184 167
Identifiable assets 1,503 1,246 596
Management Services Group:
To tal revenues 610 620 572
Intergroup revenues 154 159 144
Operating income 49 70 71
Depreciation and
amortization expense 21 21 17
Capital expenditures 33 25 16
Identifiable assets 297 287 313
Identifiable assets are gross assets used by a business seg-
ment, including an allocated portion of assets used jointly
by more than one business segment. General corporate and
other assets not allocated to business segments were $406
million, $404 million and $357 million at December 31,
1997, 1996 and 1995, respectively, and consist primarily of
income tax assets.
In the second quarter of 1996, American and The
SABRE Group completed the negotiations of a new tech-
nology services agreement pursuant to which The SABRE
Group performs data processing and solutions services