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84
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. (divested in 2008) 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.
In 2008, the Company announced that it had reached a definitive agreement with Lighthouse Holdings, Inc., which
is owned by investment funds affiliated with TPG Capital, L.P. and Pharos Capital Group, LLC for the sale of
American Beacon Advisors, Inc. (American Beacon), its wholly-owned asset management subsidiary. On
September 12, 2008, AMR completed the sale of American Beacon which resulted in a net gain of $432 million.
The gain on the sale is included in Miscellaneous-net in the accompanying consolidated statement of operations.
While primarily a cash transaction, the Company also maintained a minority equity stake in American Beacon. As
the Company has significant continuing involvement with American Beacon post-sale, AMR does not account for
the disposal of American Beacon as discontinued operations.
The Company’s operating revenues by geographic region (as defined by the Department of Transportation) are
summarized below (in millions):
Year Ended December 31,
2008
2007
2006
DOT Domestic
$ 14,135
$ 14,179
$ 14,159
DOT Latin America
4,927
4,268
4,024
DOT Atlantic
3,671
3,556
3,409
DOT Pacific
1,033
932
971
Total consolidated revenues
$ 23,766
$ 22,935
$ 22,563
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 2008 and 2007 (in millions, except per share amounts):
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
2008
Operating revenues
$ 5,697
$ 6,179
$ 6,421
$ 5,469
Operating income (loss)
(187)
(1,290)
(216)
(196)
Net earnings (loss)
(328)
(1,448)
45
(340)
Earnings (loss) per share:
Basic
(1.32)
(5.77)
0.17
(1.22)
Diluted
(1.32)
(5.77)
0.17
(1.22)
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)
The third quarter 2007 results include a charge of $40 million to correct certain vacation accruals included in
Wages, salaries and benefits expense. Of this amount, $30 million is related to the years 2003 through 2006.