American Airlines 2001 Annual Report Download - page 30

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28
Fair Values of Financial Instruments The fair values of the Company’s long-term debt were estimated using quoted market
prices where available. For long-term debt not actively traded, fair values were estimated using discounted cash flow analyses,
based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The carrying amounts
and estimated fair values of the Company’s long-term debt, including current maturities, were (in millions):
December 31,
2001 2000
Carrying
Value
Fair
Value
Carrying
Value
Fair
Value
Secured variable and fixed rate
indebtedness $ 3,989 $ 3,751 $ 2,799 $ 2,879
Enhanced equipment trust certificates 3,094 3,025 567 576
Credit facility agreement 814 814 - -
7.875% – 10.55% notes 343 310 749 759
9.0% – 10.20% debentures 332 293 332 358
6.0% – 7.10% bonds 176 143 176 179
Unsecured variable rate indebtedness 86 86 86 86
Other 32 32 11 11
$ 8,866 $ 8,454 $ 4,720 $ 4,848
All other financial instruments are either carried at fair value or their carrying value approximates fair value.
9. Income Taxes
The significant components of the income tax provision (benefit) were (in millions):
Year Ended December 31,
2001 2000 1999
Current $ (263) $ 47 $ 167
Deferred (731) 461 183
$ (994) $ 508 $ 350
The income tax provision (benefit) includes a federal income tax provision (benefit) of $(911) million, $454 million
and $290 million and a state income tax provision (benefit) of $(90) million, $47 million and $49 million for the years ended
December 31, 2001, 2000 and 1999, respectively.