American Airlines 1999 Annual Report Download - page 58

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AMR CORPORATION
57
13. SEGMENT REPORTING
Statement of Financial Accounting Standards No. 131,
“ Disclosures about Segments of an Enterprise and Related
Information” (SFAS 131) requires that a public company
report annual and interim financial and descriptive information
about its reportable operating segments pursuant to criteria
that differ from current accounting practice. Operating segments,
as defined, are components of an enterprise about which
separate financial information is available that is evaluated
regularly by the chief operating decision maker in deciding how
to allocate resources and in assessing performance.
The Company has two primary operating segments,
consisting primarily of American and AM R Eagle, which represent
one reportable segment. American is one of the largest scheduled
passenger airlines in the world. At the end of 1999, American
provided scheduled jet service to more than 169 destinations
throughout North America, the Caribbean, Latin America, Europe
and the Pacific. American is also one of the largest scheduled air
freight carriers in the world, providing a full range of freight and
mail services to shippers throughout its system. AMR Eagle owns
three regional airlines which operate as “ American Eagle” –
American Eagle Airlines, Inc., Executive Airlines, Inc. and Business
Express Airlines, Inc. (acquired in M arch 1999). The American
Eagle carriers provide connecting service from seven of
American’s high-traffic cities to smaller markets throughout the
United States, Canada, the Bahamas and the Caribbean.
Revenues from other segments below the quantitative
threshold for determining reportable segments consist primarily
of revenues from AM R Investment Services, Inc., Americas
Ground Services and Airline Management Services. The difference
between the financial information of the Company’s one
reportable segment and the financial information included in
the consolidated statements of operations and balance sheets
as a result of these entities is not material.
The Company’s operating revenues by geographic region are
summarized below (in millions):
Year Ended December 31,
1999 1998 1997
Domestic $12,563 $12,262 $11,750
Latin America 2,697 2,830 2,816
Europe 1,984 2,039 2,035
Pacific 486 385 356
Total consolidated revenues $17,730 $17,516 $16,957
The Company attributes operating revenues by geographic
region based upon the origin and destination of each flight
segment. The Company’s tangible assets consist primarily of flight
equipment which is mobile across geographic markets and,
therefore, has not been allocated.