American Airlines 2004 Annual Report Download - page 55

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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
Employee charges
2004 Adjusted prior accruals for severance costs related to the 2003 Management
Reductions and Labor Agreements** due to fewer furloughs than anticipated
resulting from the Company’s operational requirements and the volume of pilot
retirements $ (11)
Accrued primarily severance costs for approximately 3,200 job reductions
across all work groups except flight attendants (by June 2005) 42
$31
2003 Reduced approximately 9,300 jobs across all work groups 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