American Airlines 2004 Annual Report Download - page 80

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77
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
2004
Aircraft charges $ - $ (20) $ - $ 21
Employee charges - (11) - 42
Facility exit costs - - (18) (3)
Total Special charges $ - $ (31) $ (18) $ 60
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) $ - $ -
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 2004, the Company recognized a $146 million gain on the
sale of the Company’s remaining interest in Orbitz.
In addition, 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.