American Airlines 2008 Annual Report Download - page 38

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35
Certain special facility revenue bonds have been issued by certain municipalities primarily to purchase equipment
and improve airport facilities that are leased by American and accounted for as operating leases. Approximately
$1.5 billion of these bonds (with total future payments of approximately $3.4 billion as of December 31, 2008) are
guaranteed by American, AMR, or both. Approximately $177 million of these special facility revenue bonds
contain mandatory tender provisions that require American to make operating lease payments sufficient to
repurchase the bonds at various times: $112 million in 2014 and $65 million in 2015. Although American has the
right to remarket the bonds, there can be no assurance that these bonds will be successfully remarketed. Any
payments to redeem or purchase bonds that are not remarketed would generally reduce existing rent leveling
accruals or be considered prepaid facility rentals and would reduce future operating lease commitments.
In addition, the Company had other operating leases, primarily for aircraft and airport facilities, with total future
lease payments of $4.1 billion as of December 31, 2008. Entering into aircraft leases allows the Company to
obtain aircraft without immediate cash outflows.