American Airlines 1997 Annual Report Download - page 68

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AMR CORPORATION
66
17. Quarterly Financial Data (Unaudited)
Unaudited summarized financial data by quarter for 1997 and 1996 (in millions, except per share amounts):
First Quarter Second Quarter Third Quarter Fourth Quarter
1997
Operating revenues $ 4,426 $ 4,710 $ 4,798 $ 4,636
Operating income 349 588 610 379
Net earnings 152 302 323 208
Earnings per common share:
Basic 1.67 3.32 3.66 2.41
Diluted 1.65 3.26 3.56 2.33
1996
Operating revenues $ 4,308 $ 4,550 $ 4,562 $ 4,333
Operating income 401 586 588 264
Earnings before extraordinary loss 157 293 282 373
Net earnings 157 293 282 284
Earnings per common share:
Basic
Before extraordinary loss 2.05 3.40 3.10 4.10
Net earnings 2.05 3.40 3.10 3.12
Diluted
Before extraordinary loss 1.84 3.20 3.06 4.05
Net earnings 1.84 3.20 3.06 3.08
Results for the third quarter of 1996 include a $21 mil-
lion provision for American’s share of a multi-carrier trav-
el agency class action litigation settlement. Results for the
fourth quarter of 1996 include a $497 million gain
recorded by the Company related to the initial public
offering of The SABRE Group (See Note 13), a $251 mil-
lion charge related to the write-off of the Company’s
investment in Canadian and certain deferred costs relat-
ing to the Company’s agreement to provide a variety of
services to Canadian (See Note 14) and a $26 million
charge to write down the value of aircraft interiors the
Company planned to refurbish.
for American. This agreement reflected the downward
trend in market prices for data processing services. Addi-
tionally, the two companies completed negotiations on
new agreements covering the provision of air travel and
certain marketing services by American to The SABRE
Group. The parties agreed to apply the financial terms of
these agreements as of January 1, 1996, which is reflect-
ed in the selected segment financial data in the above
table. Excluding the effects of the new agreements and
the Reorganization, operating income for 1996 would
have approximated $1.38 billion for the Airline Group
and $392 million for The SABRE Group.