American Airlines 2009 Annual Report Download - page 83

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80
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
Financial
Instruments
Income
Tax
Benefit/
(Expense)
Total
Balance at January 1, 2007
$ (1,456)
$ 3
$ 17
$ 145
$ (1,291)
Current year net 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)
Current year change
(253)
5
-
-
(248)
Amortization of actuarial loss and
prior service cost
136
-
-
-
136
Reclassification of derivative
financial instruments into
earnings
-
-
662
-
662
Non-cash tax provision
-
-
-
(248)
(248)
Change in fair value of
derivative financial
instruments
-
-
151
-
151
Balance at December 31, 2009
$ (2,553)
$ (5)
$ (63)
$ (103)
$ (2,724)
As of December 31, 2009, the Company estimates that during the next twelve months it will reclassify from
Accumulated other comprehensive loss into earnings approximately $74 million in net losses (based on prices as
of December 31, 2009) related to its fuel derivative hedges.
The difference between Net earnings (loss) and other comprehensive income (loss) for the twelve month periods
ended December 31, 2009 and 2008 is due primarily to the accounting for the Company’s derivative financial
instruments and the actuarial loss on the pension benefit obligation of the Company’s pension plans.
Amounts allocated to other comprehensive income for income taxes as further described in Note 8 will remain in
Accumulated other comprehensive income until the Company ceases all related activities, such as termination of
the pension plan.