American Airlines 2007 Annual Report Download - page 35

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Contractual Obligations
The following table summarizes the Company’s obligations and commitments as of December 31, 2007 (in
millions):
Payments Due by Year(s) Ended December 31,
Contractual Obligations Total 2008
2009
and
2010
2011
and
2012
2013 and
Beyond
Operating lease payments for
aircraft and facility obligations 1 $ 10,168 $ 1,037 $ 1,798 $ 1,535 $ 5,798
Firm aircraft commitments 2 2,771 269 432 442 1,628
Capacity purchase agreements 3 119 97 22
Long-term debt 4 14,702 1,512 3,798 3,671 5,721
Capital lease obligations 1,369 243 324 243 559
Other purchase obligations 5 1,139 323 355 308 153
Other long-term liabilities 6, 7 3,051 255 408 542 1,846
Total obligations and commitments 33,319 3,736 7,137 6,741 15,705
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, 2007, the Company had firm commitments to acquire 23 Boeing
737-800s in 2009 and an aggregate of 29 Boeing 737 aircraft and seven Boeing 777
aircraft in 2013 through 2015. Future payments for all aircraft, including the estimated
amounts for price escalation, are currently estimated to be approximately $2.8 billion,
with the majority occurring in 2011 through 2015. Additional information about the
Company’s obligations is included in Note 4 to the consolidated financial statements.
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, 2007.
5 Includes noncancelable commitments to purchase goods or services, primarily
construction related costs at JFK and information technology related support. The
Company has made estimates as to the timing of certain payments primarily for
construction related costs. The actual timing of payments may vary from these
estimates. Substantially all of the Company’s purchase orders issued for other
purchases in the ordinary course of business contain a 30-day cancellation clause that
allows the Company to cancel an order with 30 days notice.
6 Includes minimum pension contributions based on actuarially determined estimates
and other postretirement benefit payments based on estimated payments through
2017. See Note 10 to the consolidated financial statements.
7 Excludes a $2.1 billion accident liability, related to the Terrorist Attacks and flight 587,
recorded in Other liabilities and deferred credits, as discussed in Note 2 to the
consolidated financial statements. This liability is offset in its entirety by a receivable,
recorded in Other assets, which the Company expects to receive from insurance
carriers as claims are resolved.