American Airlines 2006 Annual Report Download - page 50

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46
Market risk for fixed-rate long-term debt is estimated as the potential increase in fair value resulting from a
hypothetical 10 percent decrease in interest rates, and amounts to approximately $315 million and $385 million as
of December 31, 2006 and 2005, respectively. The fair values of the Company’s long-term debt were estimated
using quoted market prices or discounted future cash flows based on the Company’s incremental borrowing rates
for similar types of borrowing arrangements.
Other The Company holds investments in certain other entities which are subject to market risk. However, the
impact of such market risk on earnings is not significant due to the immateriality of the carrying value and the
geographically diverse nature of these holdings.