American Airlines 1998 Annual Report Download - page 42

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40
Year Ended December 31,
(in millions) 1998 1997 1996
Cash Flow from Operating Activities:
Net earnings $1,314 $985 $ 1,016
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 1,006 977 948
Amortization 281 248 237
Deferred income taxes 312 363 217
Gain on disposition of equipment and property (19) (24) -
Gain on sale of stock by subsidiary -- (497)
Provisions for losses -- 251
Extraordinary loss -- 136
Change in assets and liabilities:
Decrease (increase) in receivables (242) 12 (225)
Increase in inventories (35) (41) (66)
Increase in accounts payable and accrued liabilities 268 117 261
Increase in air traffic liability 119 155 423
Other, net 191 77 (13)
Net cash provided by operating activities 3,195 2,869 2,688
Cash Flow from Investing Activities:
Capital expenditures, including purchase deposits
on flight equipment (2,661) (1,358) (523)
Net decrease (increase) in short-term investments 392 (627) (924)
Proceeds from sale of equipment and property 293 305 257
Acquisitions and other investments (137) - -
Investment in joint ventures, net (135) - -
Net cash used for investing activities (2,248) (1,680) (1,190)
Cash Flow from Financing Activities:
Payments on long-term debt and capital lease obligations (547) (648) (2,130)
Repurchase of common stock (994) (740) -
Proceeds from:
Sale-leaseback transactions 270 - -
Issuance of long-term debt 246 - -
Exercise of stock options 111 200 25
Sale of stock by subsidiary -- 589
Net cash used for financing activities (914) (1,188) (1,516)
Net increase (decrease) in cash 33 1 (18)
Cash at beginning of year 62 61 79
Cash at end of year $95$62 $ 61
Financing Activities Not Affecting Cash
Capital lease obligations incurred $270 $- $-
The accompanying notes are an integral part of these financial statements.
CONSOLIDATED STATEM ENTS OF CASH FLOW S AMR CORPORATION