American Airlines 2005 Annual Report Download - page 79

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76
11. Intangible Assets
The Company had route acquisition costs (including international slots) of $829 million as of December 31, 2005
and 2004 that are considered indefinite life assets under Financial Accounting Standard 142, “Goodwill and Other
Intangible Assets”. The Company’s impairment analysis for route acquisition costs did not result in an impairment
charge in 2005 or 2004.
The following tables provide information relating to the Company’s amortized intangible assets as of December 31
(in millions):
2005
Cost
Accumulated
Amortization
Net Book
Value
Amortized intangible assets:
Airport operating rights $ 517 $ 241 $ 276
Gate lease rights 179 90 89
Total $ 696 $ 331 $ 365
2004
Cost
Accumulated
Amortization
Net Book
Value
Amortized intangible assets:
Airport operating rights $ 517 $ 220 $ 297
Gate lease rights 186 89 97
Total $ 703 $ 309 $ 394
Airport operating and gate lease rights are being amortized on a straight-line basis over 25 years to a zero
residual value. The Company recorded amortization expense related to these intangible assets of approximately
$28 million, $29 million and $28 million for the years ended December 31, 2005, 2004 and 2003, respectively. The
Company expects to record annual amortization expense of approximately $28 million in each of the next five
years related to these intangible assets.