American Airlines 2003 Annual Report Download - page 80

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78
15. Quarterly Financial Data (Unaudited) (Continued)
The following table summarizes the Special charges and U.S. government grant reimbursement recorded by the
Company by quarter (in millions):
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
2003
Aircraft charges $ - $ (20) $ 39 $ 302
Employee charges 25 47 4 16
Facility exit costs - 49 1 12
Other - - (68) -
Total Special charges $ 25 $ 76 $ (24) $ 330
U.S. government grant $ - $ (358) $ - $ -
2002
Aircraft charges $ - $ - $ 658 $ -
Employee charges - - 57 -
Facility exit costs - - 3 -
Other ----
Total Special charges $ - $ - $ 718 $ -
U.S. government grant $ - $ - $ (10) $ -
See Note 2 for a further discussion of Special charges and U.S. government grant.
In addition to the above items, in the fourth quarter of 2003, the Company reached an agreement with the IRS
covering tax years 1990 through 1995. As a result of this agreement, the Company recorded an $80 million tax
benefit to reduce previously accrued income tax liabilities and an $84 million reduction in interest expense to
reduce previously accrued interest related to the accrued income tax liabilities.
Also in the fourth quarter of 2003, the Company recognized an $80 million gain on the sale of the Company’s
investment in Hotwire and a $70 million gain related to an Orbitz initial public offering and a related secondary
offering.
Furthermore, during the second quarter of 2002, the Company recorded a $57 million charge for the displacement
of foreign tax credits resulting from a provision in Congress’ economic stimulus package. The provision changed
the period for carrybacks of NOLs from two to five years and allowed the Company to more quickly recover its
NOLs. However, the extended NOL carryback resulted in the displacement of foreign tax credits taken in prior
years.