American Airlines 2004 Annual Report Download - page 57

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54
2. Special charges and U.S. government grant (Continued)
Summary
The following table summarizes the components of these charges and the remaining accruals for future lease
payments, aircraft lease return and other costs, facilities closure costs and employee severance and benefit costs
(in millions):
Aircraft
Charges
Facility
Exit Costs
Employee
Charges Other Total
Remaining accrual at
January 1, 2002 $ 58 $ 20 $ - $ - $ 78
Special charges 658 3 57 - 718
Non-cash charges (460) (3) - - (463)
Payments (47) (3) (13) - (63)
Remaining accrual at
December 31, 2002 209 17 44 - 270
Special charges 341 62 92 (68) 427
Adjustments (20) - - - (20)
Non-cash charges (264) (17) 23 68 (190)
Payments (69) (6) (133) - (208)
Remaining accrual at
December 31, 2003 197 56 26 - 279
Special charges 21 - 42 - 63
Adjustments (20) (21) (11) - (52)
Non-cash charges (21) - - - (21)
Payments (48) (9) (21) - (78)
Remaining accrual at
December 31, 2004 $ 129 $ 26 $ 36 $ - $ 191
Cash outlays related to the accruals, as of December 31, 2004, for aircraft charges, facility exit costs and
employee charges will occur through 2014, 2018 and 2005, respectively.
U.S. government grant
In April 2003, the President signed the Emergency Wartime Supplemental Appropriations Act, 2003 (the
Appropriations Act), which included provisions authorizing payment of $2.3 billion to reimburse air carriers for
increased security costs in proportion to the amounts each carrier had paid or collected in passenger security and
air carrier security fees to the Transportation Security Administration (the Security Fee Reimbursement). The
Company’s Security Fee Reimbursement was $358 million (net of payments to independent regional affiliates) and
is included in U.S. government grant in the accompanying consolidated statements of operations.
On September 22, 2001, President Bush signed into law the Air Transportation Safety and System Stabilization
Act (the Stabilization Act). The Company received a total of $866 million from the U.S. government under the
airline compensation provisions of the Stabilization Act. For the year ended December 31, 2002, the Company
recognized approximately $10 million as a result of the Stabilization Act, which is included in U.S. government
grant on the accompanying consolidated statements of operations.