American Airlines 2007 Annual Report Download - page 82

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79
14. Segment Reporting (Continued)
Revenues from other segments are below the quantitative threshold for determining reportable segments and
consist primarily of revenues from American Beacon Advisors, Inc. and Americas Ground Services, Inc. The
difference between the financial information of the Company’s one reportable segment and the financial
information included in the accompanying consolidated statements of operations and balance sheets as a result
of these entities is not material.
The Company’s operating revenues by geographic region (as defined by the Department of Transportation) are
summarized below (in millions):
Year Ended December 31,
2007 2006 2005
DOT Domestic $ 14,179 $ 14,159 $ 13,245
DOT Latin America 4,268 4,024 3,568
DOT Atlantic 3,556 3,409 3,115
DOT Pacific 932 971 784
Total consolidated revenues $ 22,935 $ 22,563 $ 20,712
The Company attributes operating revenues by geographic region based upon the origin and destination of each
flight segment. The Company’s tangible assets consist primarily of flight equipment, which are mobile across
geographic markets and, therefore, have not been allocated.
15. Quarterly Financial Data (Unaudited)
Unaudited summarized financial data by quarter for 2007 and 2006 (in millions, except per share amounts):
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
2007
Operating revenues $ 5,427 $ 5,879
$ 5,946
$ 5,683
Operating income (loss) 248 467
319
(69)
Net earnings (loss) 81 317
175
(69)
Earnings (loss) per share:
Basic 0.35 1.28 0.70 (0.28)
Diluted 0.30 1.08 0.61 (0.28)
2006
Operating revenues $ 5,344 $ 5,975
$ 5,847
$ 5,397
Operating income 115 476
284
185
Net earnings (loss) (92) 291
15
17
Earnings (loss) per share:
Basic (0.49) 1.44 0.07 0.08
Diluted (0.49) 1.14 0.06 0.07
The third quarter 2006 results include a charge of $99 million for changes in market value of hedges that did not
qualify for hedge accounting during the quarter. The 2006 results include the immaterial impact of adopting FSP
AUG AIR-1 “Accounting for Planned Major Maintenance Activities”, as adjusted in the fourth quarter of each year.
The third quarter 2007 results include a charge of $40 million for to correct certain vacation accruals included in
Wages, salaries and benefits expense. Of this amount, $30 million related to the years 2003 through 2006.