American Airlines 2008 Annual Report Download - page 85

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82
12. Accumulated Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive income (loss) are as follows (in millions):
Pension
and
Retiree
Medical
Liability
Unrealized
Gain/(Loss)
on
Investments
Derivative
F
inancial
Instruments
Income
Tax
Benefit
Total
Balance at January 1, 2006
$ (1,206)
$ 3
$ 79
$ 145
$ (979)
Current year net change
748
-
-
-
748
Reclassification of derivative
financial instruments into
earnings
-
-
(88)
-
(88)
Change in fair value of
derivative financial
instruments
-
-
26
-
26
Adjustment resulting from
adoption of SFAS 158
(998)
-
-
-
(998)
Balance at December 31, 2006
$ (1,456)
$ 3
$ 17
$ 145
$ (1,291)
Current year change
1,723
(6)
-
-
1,717
Amortization of actuarial loss and
prior service cost
21
21
Reclassification of derivative
financial instruments into
earnings
-
-
(158)
-
(158)
Change in fair value of
derivative financial
instruments
-
-
381
-
381
Balance at December 31, 2007
$ 288
$ (3)
$ 240
$ 145
$ 670
Current year change
(2,707)
(7)
-
-
(2,714)
Amortization of actuarial loss and
prior service cost
(17)
-
-
-
(17)
Reclassification of derivative
financial instruments into
earnings
-
-
(378)
-
(378)
Change in fair value of
derivative financial
instruments
-
-
(738)
-
(738)
Balance at December 31, 2008
$ (2,436)
$ (10)
$ (876)
$ 145
$ (3,177)
As of December 31, 2008, the Company estimates that during the next twelve months it will reclassify from
Accumulated other comprehensive loss into earnings approximately $711 million in net losses (based on prices as
of December 31, 2008) related to its fuel derivative hedges, including losses from terminated contracts with a
bankrupt counterparty and unwound trades as described in Note 7 “Financial Instruments and Risk Management”