American Airlines 2003 Annual Report Download - page 54

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52
2. Special charges and U.S. government grant (Continued)
Year Description of Charge
Amount
(millions)
Aircraft charges (Continued)
2002 Accelerated the planned retirement of Fokker 100, Saab 340 and ATR 42
aircraft. Aircraft and related rotables and excess inventory were written down
to fair value. * $ 370
Retired nine leased Boeing 767-300 aircraft and accelerated the retirement of
four leased Fokker 100 aircraft. Accrued future lease commitments and lease
return costs. Excess Boeing 767-300 inventory and related rotables were
written down to fair value. 189
Accrued contract cancellation costs and other costs related to discontinued
aircraft modifications 99
$ 658
2001 Accelerated the planned retirement of Fokker 100, Saab 340 and ATR 42
aircraft and retired five Boeing 727-200 and one McDonnell Douglas MD-80
aircraft. Aircraft, related Fokker 100, Saab 340 and ATR 42 rotables and
certain other aircraft modifications were written down to fair value. * $ 1,172
Retired leased McDonnell Douglas DC-9 and Boeing 717 aircraft and eight
leased McDonnell Douglas MD-80 aircraft and accrued future lease
commitments and lease return costs 65
$ 1,237
Employee charges
2003 Reduced approximately 9,300 jobs across all work groups** (by June 2004) in
conjunction with the Management Reductions and the Labor Agreements and
the reduction of the St. Louis hub. Accrued primarily severance costs. $ 76
Recognized curtailment loss as discussed in Note 10 46
Accrued severance charges related to the 2002 workforce reduction discussed
below 25
Other 4
Reduced vacation accrual to reflect new lower pay scales and maximum
vacation caps and wrote off a note receivable from one of the Company’s three
major unions in conjunction with the Labor Agreements and the Management
Reductions (59)
$92
2002 Reduced approximately 7,000 jobs by March 2003 across all work groups** to
realign workforce with planned capacity reductions, fleet simplification, and hub
restructurings. Accrued severance and benefits related to voluntary programs
in accordance with collective bargaining agreements with pilot and flight
attendant work groups. $ 57