American Airlines 2003 Annual Report Download - page 68

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8. Income Taxes (Continued)
The components of AMR's deferred tax assets and liabilities were (in millions):
December 31,
2003 2002
Deferred tax assets:
Postretirement benefits other than pensions $ 1,067 $ 1,005
Rent expense 851 815
Alternative minimum tax credit carryforwards 427 500
Operating loss carryforwards 1,228 597
Pensions 525 589
Frequent flyer obligation 467 444
Gains from lease transactions 212 185
Other 693 745
Valuation allowance (663) (370)
Total deferred tax assets 4,807 4,510
Deferred tax liabilities:
Accelerated depreciation and amortization (4,441) (4,076)
Other (366) (434)
Total deferred tax liabilities (4,807) (4,510)
Net deferred tax liability $ - $ -
At December 31, 2003, the Company had available for federal income tax purposes an alternative minimum tax
credit carryforward of approximately $427 million, which is available for an indefinite period, and federal net
operating losses of approximately $2.9 billion for regular tax purposes, which will fully expire, if unused, in 2022
and 2023. The Company had available for state income tax purposes net operating losses of $2.9 billion, which
expire, if unused, in years 2005 through 2023.
Cash refunds for income taxes were $575 million, $646 million and $28 million for 2003, 2002 and 2001,
respectively. The amounts received in 2003 and 2002 relate primarily to net operating loss carryback claims,
including a carryback claim filed as a result of a provision in Congress’ economic stimulus package that changes
the period for carrybacks of net operating losses (NOLs). This change allows the Company to carry back 2001
and 2002 NOLs for five years, rather than two years under the previous law, allowing the Company to more quickly
recover its NOLs.
9. Stock Awards and Options
In March 2003, the Board of Directors of AMR approved the issuance of additional shares of AMR common stock
to employees and Vendors in connection with negotiations concerning concessions. The maximum number of
shares authorized for issuance was 30 percent of the number of shares of the Company’s common stock
outstanding on March 24, 2003 (156,359,955) or approximately 46.9 million shares. From the foregoing
authorization, the Company issued approximately 2.5 million shares to Vendors from treasury stock, resulting in a
re-allocation from Treasury stock to Additional paid-in capital of $142 million.
In 2003, the Company established the 2003 Employee Stock Incentive Plan (the 2003 Plan) to provide equity
awards to employees in connection with the Labor Agreements and Management Reductions discussed in Note 2.
Under the 2003 Plan, employees may be granted stock options, restricted stock and deferred stock. The total
number of shares authorized for distribution under the 2003 Plan is 42,680,000 shares.