American Airlines 2002 Annual Report Download - page 88

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86
18. Quarterly Financial Data (Unaudited) (Continued)
The following table summarizes the special charges and U.S. Government grant reimbursement recorded by
the Company during the second, third and fourth quarters of 2002 and 2001 (in millions):
Second
Quarter
Third
Quarter
Fourth
Quarter
2002
Aircraft charges $ - $ 658 $ -
Facility exit costs - 3 -
Employee charges - 57 -
Other - - -
Total special charges $ - $ 718 $ -
U.S. Government grant $ - $ (10) $ -
2001
Aircraft charges $ 685 $ 496 $ 56
Facility exit costs - 61 54
Employee charges - 55 16
Other - 20 23
Total special charges $ 685 $ 632 $ 149
U.S. Government grant $ - $ (809) $ (47)
See Note 3 for a further discussion of special charges.
In addition to the above items, during the second quarter of 2002, the Company recorded a $57 million
charge for the displacement of foreign tax credits resulting from a provision in Congress’ economic stimulus
package. The provision changed the period for carrybacks of net operating losses (NOLs) from two to five years
and allowed the Company to more quickly recover its NOLs. However, the extended NOL carryback resulted in
the displacement of foreign tax credits taken in prior years.
During the second quarter of 2001, the Company recorded a gain of $45 million from the settlement of a
legal matter related to the Company’s 1999 labor disruption.