American Airlines 2003 Annual Report Download - page 58

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56
3. Investments
Short-term investments consisted of (in millions):
December 31,
2003 2002
Overnight investments and time deposits $ 718 $ 572
Corporate and bank notes 1,245 832
U. S. government agency notes 496 285
U. S. government agency mortgages 17 142
Other 10 15
$ 2,486 $ 1,846
Short-term investments at December 31, 2003, by contractual maturity included (in millions):
Due in one year or less $ 1,495
Due between one year and three years 974
Due after three years 17
$ 2,486
All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and
losses, net of deferred taxes, are reflected as a component of Accumulated other comprehensive loss.
As of December 31, 2003, the Company had approximately $166 million in fuel prepayments and credit card
holdback deposits classified as Other current assets and Other assets in the accompanying consolidated balance
sheet.
During 2003, the Company sold its interests in Worldspan, a computer reservations company, and Hotwire, a
discount travel website. The Company received $180 million in cash and a $39 million promissory note for its
interest in Worldspan. It received $84 million in cash, $80 million of which was recognized as a gain, for its interest
in Hotwire. In addition, during 2003, the Company sold a portion of its interest in Orbitz, a travel planning website,
in connection with an Orbitz initial public offering and a secondary offering, resulting in total proceeds of $65
million, and a gain of $70 million. The gains on the sale of the Company’s interests in Hotwire and Orbitz are
included in Miscellaneous-net in the accompanying consolidated statement of operations.
4. Commitments, Contingencies and Guarantees
As of December 31, 2003, the Company had commitments to acquire: 36 Embraer regional jets and six
Bombardier CRJ-700s in 2004; an aggregate of 38 Embraer regional jets in 2005 and 2006; and an aggregate of
47 Boeing 737-800s and nine Boeing 777-200ERs in 2006 through 2010. Future payments for all aircraft, including
the estimated amounts for price escalation, will approximate $755 million in 2004, $711 million in 2005, $669
million in 2006 and an aggregate of approximately $1.9 billion in 2007 through 2010. The Company has pre-
arranged financing or backstop financing for all of its aircraft deliveries through June 2005 (42 aircraft in 2004 and
20 aircraft in 2005).
American has granted Boeing a security interest in American’s purchase deposits with Boeing. These purchase
deposits totaled $277 million as of December 31, 2003.