American Airlines 1999 Annual Report Download - page 52

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AMR CORPORATION
51
utilization of foreign tax credits.
The components of AMR’s deferred tax assets and liabilities
were (in millions):
December 31,
1999 1998
Deferred tax assets:
Postretirement benefits other than pensions $ 614 $ 593
Rent expense 449 376
Frequent flyer obligation 307 258
Alternative minimum tax credit carryforwards 289 515
Gains from lease transactions 238 223
Other 520 359
Valuation allowance –(68)
Total deferred tax assets 2,417 2,256
Deferred tax liabilities:
Accelerated depreciation and amortization (3,381) (3,044)
Pensions (50) (69)
Other (220) (170)
Total deferred tax liabilities (3,651) (3,283)
Net deferred tax liability $(1,234) $(1,027)
At December 31, 1999, AMR had available for federal income
tax purposes approximately $289 million of alternative minimum
tax credit carryforwards which are available for an indefinite period.
Cash payments for income taxes were $71 million, $408
million and $294 million for 1999, 1998 and 1997, respectively.
8. COMMON AND PREFERRED STOCK
The Company has 20 million shares of preferred stock (without
par value) authorized at December 31, 1999 and 1998. On
June 9, 1998, a two-for-one stock split in the form of a stock
dividend was effective for shareholders of record on M ay 26,
1998. All prior period share and earnings per share amounts
reflect the stock split.
9. STOCK AWARDS AND OPTI ONS
Under the 1998 Long Term Incentive Plan, as amended, officers
and key employees of AMR and its subsidiaries may be granted
stock options, stock appreciation rights, restricted stock, deferred
stock, stock purchase rights, other stock-based awards and/or
performance-related awards, including cash bonuses. The total
number of common shares authorized for distribution under the
1998 Long Term Incentive Plan is 10,000,000 shares. The 1998
Long Term Incentive Plan, the successor to the 1988 Long Term
Incentive Plan, which expired May 18, 1998, will terminate no
later than May 21, 2008. Options granted under the 1988 and
1998 Long Term Incentive Plans (collectively, the Plans) are
awarded with an exercise price equal to the fair market value of
the stock on date of grant, become exercisable in equal annual
installments over five years following the date of grant and expire
10 years from the date of grant. Stock appreciation rights may be
granted in tandem with options awarded.