American Airlines 2008 Annual Report Download - page 39

36
Contractual Obligations
The following table summarizes the Company’s obligations and commitments as of December 31, 2008 (in
millions):
Payments Due by Year(s) Ended December 31,
Contractual Obligations
Total
2009
2010
and
2011
2012
and
2013
2014 and
Beyond
Operating lease payments for
aircraft and facility obligations
1
9,187
998
1,854
1,391
4,944
Firm aircraft commitments 2
3,662
1,028
1,415
635
584
Capacity purchase agreements 3
205
68
120
17
-
Long-term debt 4
13,980
2,387
4,396
2,101
5,096
Capital lease obligations
1,127
182
289
180
476
Other purchase obligations 5
967
273
378
313
3
Other long-term liabilities 6
6,081
176
1,568
1,332
3,005
Total obligations and commitments
35,209
5,112
10,020
5,969
14,108
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, 2008, the Company had firm commitments to acquire 29 Boeing
737-800s in 2009, 39 Boeing 737-800s in 2010 and eight 737-800 aircraft in 2011. In
addition to these aircraft, the Company has firm commitments for eleven 737-800
aircraft and seven Boeing 777 aircraft scheduled to be delivered in 2013 - 2016. Future
payments for all aircraft, including the estimated amounts for price escalation, are
currently estimated to be approximately $3.7 billion, with the majority occurring in 2009
through 2011. 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 agreements
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, 2008.
5 Includes noncancelable commitments to purchase goods or services, primarily
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.
Pension Obligations The Company is required to make minimum contributions to its defined benefit pension
plans under the minimum funding requirements of the Employee Retirement Income Security Act (ERISA), the
Pension Funding Equity Act of 2004 and the Pension Protection Act of 2006. The Company is not required to
make any 2009 contributions to its defined benefit pension plans under the provisions of these acts.