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Table of Contents
1 Unrealized gains or losses on short-term investments, restricted cash and short-term investments and derivatives qualifying for hedge accounting are
recorded in Accumulated other comprehensive income (loss) at each measurement date.
2 The Company’s short-term investments mature in one year or less except for $200 million of Bank notes/Certificates of deposit/Time deposits, $545 million
of U.S. Government agency investments and $405 million of Corporate obligations which have maturity dates exceeding one year.
No significant transfers between Level 1 and Level 2 occurred during the year ended December 31, 2012. The Company’s policy regarding the recording of
transfers between levels is to record any such transfers at the end of the reporting period.
As of December 31, 2012, the Company had no exposure to European sovereign debt.
5. Commitments, Contingencies and Guarantees
American had total aircraft acquisition commitments as of December 31, 2012 as follows:
Boeing
Airbus
737 Family
777-200ER
777-300ER
A320 Family
A320 NEO
Total
2013 Purchase
31
—
8
—
—
39
Lease
—
—
—
20
—
20
2014 Purchase
5
1
5
—
—
11
Lease
15
—
—
35
—
50
2015 Purchase
2
—
—
—
2
Lease
20
—
—
30
—
50
2016 Purchase
—
2
—
—
—
2
Lease
20
—
—
25
—
45
2017 Purchase
—
—
—
—
10
10
Lease
20
—
—
20
—
40
2018 and
beyond
Purchase
—
—
—
—
120
120
Lease
—
—
—
—
—
—
Total Purchase
36
5
13
—
130
184
Lease
75
—
—
130
—
205
The assumption of certain agreements related to the Company's aircraft commitments is subject to collaboration with the Company's key stakeholders and, in
some instances, approval of the Bankruptcy Court. The Company cannot predict what the outcome of these discussions and the Bankruptcy Court process
will be.
As of December 31, 2012, and subject to assumption of certain of the related agreements, payments for the above purchase commitments and certain engines
will approximate $2.1 billion in 2013, $1.0 billion in 2014, $314 million in 2015, $355 million in 2016, $745 million in 2017 and $6.6 billion for 2018
and beyond. These amounts are net of purchase deposits currently held by the manufacturers. American has granted Boeing a security interest in American’s
purchase deposits with Boeing. The Company’s purchase deposits totaled $710 million as of December 31, 2012.
As of December 31, 2012, and subject to assumption of certain of the related agreements, total future lease payments for all leased aircraft, including aircraft
not yet delivered, will approximate $727 million in 2013, $889 million in 2014, $1.1 billion in 2015, $1.4 billion in 2016, $1.6 billion in 2017 and $11.3
billion in 2018 and beyond. Certain leases provide for rent adjustments based on forumulae tied to changes in interest rates.
In February 2013, American entered into agreements with Boeing that provide for, among other things, the assumption and restructuring of certain existing
aircraft purchase agreements, the entering into of a definitive purchase agreement with respect to Boeing 737 MAX aircraft, the confirmation of the purchase of
the Boeing 787 aircraft (which previously had been subject to certain reconfirmation rights) and certain financing commitments. American also entered into an
amendment to its agreement with Airbus S.A.S. in January 2013. The Bankruptcy Court approved assumption of these agreements, as amended, in January
2013. See Note 17 to the consolidated financial statements for further information regarding these agreements, including the changes to the Company's aircraft
acquisition commitments, payments and options.
In 2010, American and Japan Airlines (JAL) entered into a Joint Business Agreement (JBA) under which, amongst other things, American provided JAL a
guarantee of certain minimum incremental revenue resulting from the successful operation of the joint business for the first three years following its
implementation, subject to certain terms and conditions. The amount required to be
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