American Airlines 2005 Annual Report Download - page 35

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32
Contractual Obligations
The following table summarizes the Company’s obligations and commitments as of December 31, 2005 (in
millions):
Payments Due by Year(s) Ended December 31,
Contractual Obligations
Total
2006
2007
and
2008
2009
and
2010
2011 and
Beyond
Operating lease payments for
aircraft and facility obligations 1
$ 12,217
$ 1,065
$ 2,012
$ 1,687
$ 7,453
Firm aircraft commitments 2 2,895 102 - - 2,793
Capacity purchase agreements 3 237 90 129 18 -
Long-term debt 4 20,644 1,924 3,472 4,108 11,140
Capital lease obligations 1,804 263 432 315 794
Other purchase obligations 5 1,563 376 420 307 460
Other long-term liabilities6,7 2,234 196 407 433 1,198
Total obligations and commitments $ 41,594 $ 4,016 $ 6,872 $ 6,868 $ 23,838
1 Certain special facility revenue bonds issued by municipalities - which are supported by
operating leases executed by American - are guaranteed by AMR and/or American.
The special facility revenue bonds with mandatory tender provisions discussed above
are included in this table under their ultimate maturity date rather than their mandatory
tender provision date. See Note 5 to the consolidated financial statements for
additional information.
2 As of December 31, 2005, the Company had commitments to acquire two Boeing 777-
200ERs in 2006; and an aggregate of 47 Boeing 737-800s and seven Boeing 777-
200ERs in 2013 through 2016. The Company has pre-arranged backstop financing
available for the aircraft scheduled to be delivered in 2006.
3 The table reflects minimum required payments under capacity purchase contracts
between American and two regional airlines, Chautauqua Airlines, Inc. (Chautauqua)
and Trans States Airlines Inc. If the Company terminates its contract with Chautauqua
without cause, Chautauqua has the right to put its 15 Embraer aircraft to the Company.
If this were to happen, the Company would take possession of the aircraft and become
liable for lease obligations totaling approximately $21 million per year with lease
expirations in 2018 and 2019. These lease obligations are not included in the table
above. See Note 4 to the consolidated financial statements for additional information.
4 Amounts represent contractual amounts due, including interest. Interest on variable
rate debt was estimated based on the current rate at December 31, 2005.