American Airlines 2007 Annual Report Download - page 48

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45
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 $326 million and $315 million as
of December 31, 2007 and 2006, 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.