American Airlines 2009 Annual Report Download - page 85

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82
14. Segment Reporting (Continued)
The Company’s operating revenues by geographic region (as defined by DOT) are summarized below (in
millions):
Year Ended December 31,
2009
2008
2007
DOT Domestic
$ 11,974
$ 14,135
$ 14,179
DOT Latin America
4,114
4,927
4,268
DOT Atlantic
2,973
3,671
3,556
DOT Pacific
856
1,033
932
Total consolidated revenues
$ 19,917
$ 23,766
$ 22,935
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 2009 and 2008 (in millions, except per share amounts):
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
2009
Operating revenues
$ 4,839
$ 4,889
$ 5,127
$ 5,062
Operating income (loss)
(194)
(226)
(194)
(390)
Net earnings (loss)
(375)
(390)
(359)
(344)
Earnings (loss) per share:
Basic
(1.35)
(1.39)
(1.26)
(1.03)
Diluted
(1.35)
(1.39)
(1.26)
(1.03)
2008
Operating revenues
$ 5,697
$ 6,179
$ 6,421
$ 5,469
Operating income (loss)
(187)
(1,290)
(216)
(196)
Net earnings (loss)
(341)
(1,461)
31
(347)
Earnings (loss) per share:
Basic
(1.37)
(5.83)
0.12
(1.24)
Diluted
(1.37)
(5.83)
0.12
(1.24)
The second quarter 2008 results include an impairment charge of $1.1 billion to write the McDonnell Douglas MD-
80 and Embraer RJ-135 fleets and certain related long-lived assets down to their estimated fair values, and a $55
million accrual for employee severance costs.
The Company’s third quarter 2008 results include the sale of American Beacon for total proceeds of $442 million
with a net gain of $432 million and $27 million of special charges due to continued capacity reduction effects.
The results of the fourth quarter of 2008 were impacted by a pension settlement charge of $103 million for one of
the Company’s defined benefit plans.
The first, second and third quarter 2009 results include the impact of approximately $13 million, $70 million and
$94 million, respectively, in charges related to the sale leaseback of certain aircraft and the grounding of leased
Airbus A300 aircraft prior to lease expiration.
The results for the fourth quarter of 2009 include an impairment charge of approximately $138 million to write
down certain route and slot authorities, primarily in Latin America, and certain Embraer RJ-135 aircraft to their
estimated fair values, as well as $30 million in charges associated with the grounding of the Airbus A300 fleet and
the sale leaseback of certain aircraft. Also included in 2009 results is a $248 million non-cash tax benefit resulting
from the allocation of the tax expense to other comprehensive income items recognized during 2009.