COVID-19 and Asset Impairment Appendix B ASSETS Current assets Cash Short-term investments Restricted cash and short-term investments Accounts receivable, net Aircraft fuel, spare parts and supplies, net Prepaid expenses and other Total current assets Operating property and equipment Flight equipment Ground property and equipment Equipment purchase deposits Total property and equipment, at cost Less accumulated depreciation and amortization Total property and equipment, net Operating lease right-of-use assets Other assets Goodwill Intangibles, net of accum. amortization of $704 and $663, respectively Deferred tax asset Other assets Total other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities Current maturities of long-term debt and finance leases Accounts payable Accrued salaries and wages Air traffic liability Loyalty program liability Operating lease liabilities Other accrued liabilities Total current liabilities Noncurrent liabilities Long-term debt and finance leases, net of current maturities Pension and postretirement benefits Loyalty program liability Operating lease liabilities Other liabilities Total noncurrent liabilities Commitments and contingencies (Note 12) Stockholders' equity (deficit) Common stock, $0.01 par value; 1,000,000,000 shares authorized, 244,687,156 and 263,193,051shares issued and outstanding at December 31, 2019 and December 31, 2018 Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' deficit Total liabilities and stockholders' equity (deficit) Balance Sheet ($ in millions) Year Ended December 31 2018 2019 $ $ 132 $ 134 2,153 1,702 74 76 819 840 731 888 495 621 4,403 4,262 19,920 20,418 4,207 4,533 613 804 24,740 25,754 (8,373) (8,956) 16,367 16,798 4,392 4,194 1,964 1,964 1,026 1,000 550 310 634 594 4,173 3,867 29,336 29,121 1,581 1,373 851 990 685 740 2,083 2,308 1,568 1,533 794 820 1,124 1,026 8,686 8,789 10,166 10,298 3,315 2,905 2,531 2,603 3,793 3,562 669 697 20,473 20,065 3 2 2,836 2,254 (3,369) (3,618) 706 1,628 176 267 29,336 $ 29,121 COVID-19 and Asset Impairment Appendix A Operating revenues: Passenger Cargo Other Total operating revenues Operating expenses: Aircraft fuel and related taxes Salaries, wages and benefits 3rd Party Carrier Capacity Charges Maintenance, materials and repairs Other rent and landing fees Aircraft rent Selling expenses Depreciation and amortization Special items, net Other expense Total operating expenses Operating income Nonoperating income (expense): Interest income Interest expense, net Other income, net Total nonoperating expense, net Income before income taxes Income tax provision Net income Income Statement ($ in millions) 1Q 2019 2Q 2019 $ 3,960 $ 4,515 89 91 290 298 4,339 4,904 881 1,018 1,435 1,492 139 144 268 277 275 286 137 140 189 208 229 235 57 50 576 582 4,186 4,432 153 472 14 14 (111) (113) 44 (53) (99) 100 373 25 90 75 $ 283 $ 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY2018 $ 3,887 $ 4,376 $ 4,330 $ 4,084 $ 16,677 107 109 416 93 107 285 290 303 292 1,170 4,265 4,773 4,740 4,485 18,263 886 1,053 1,123 995 4,057 1,394 1,428 1,449 1,404 5,675 145 149 149 144 587 225 244 250 262 981 252 266 269 242 1,029 130 131 134 137 532 181 197 200 196 774 214 221 223 226 884 92 75 86 73 326 583 599 575 573 2,330 4,102 4,363 4,458 4,252 17,175 163 410 282 233 1,088 10 12 12 14 48 (107) (108) (107) (110) (432) 32 36 68 (65) (96) (95) (60) (316) 98 314 187 173 772 32 82 51 28 193 66 $ 232 $ 136 $ 145 $ 579 $ $ 3Q 2019 4Q 2019 FY 2019 $4,508 $ 4,242 $ 17,225 85 290 89 354 308 1,186 4,883 4,639 18,765 1,014 939 3,852 1,509 1,463 5,899 145 144 572 294 301 1,140 286 263 1,110 141 138 556 216 209 822 239 248 951 96 61 264 613 572 2,343 4,553 4,338 17,509 330 301 1,256 14 10 52 (116) (109) (449) 21 65 (102) (78) (332) 228 223 924 54 65 234 174 $ 158 $ 690 vi. Estimate the amount of the impairment of AWA's long-lived assets. Appendix D Selected Notes to financial statements Debt Long-term debt included in the condensed consolidated balance sheets consisted of (in millions): 2019 Secured $ 1,807 1,220 2012 Credit Facilities, variable interest rate of 2.71%, installments through 2024 2013 Credit Facilities, variable interest rate of 2.69%, installments through 2025 2015 Credit Facilities, variable interest rate of 2.81%, installments through 2027 Equipment trust certificates (ETCs), fixed interest rates ranging from 2.50% to 8.39%, averaging 3.83%, maturing from 2022 to 2031 2,183 11,712 4,755 Equipment loans and other notes payable, variable interest rates ranging from 1.57% to 6.31%, averaging 2.92%, maturing from 2022 to 2031 754 Special facility revenue bonds, fixed interest rates ranging from 4.50% to 9.00%, maturing from 2022 to 2030 22,431 Unsecured 5.000% senior notes, interest only payments until due in June 2023 750 500 3.75% senior notes, interest only payments until due in March 2026 4.625% senior notes 500 1,750 Total long-term debt $ 24,181 Our variable rate debt has interest, based on LIBOR, has an average of 2.83%. Our fixed rate debt has an average rate of 4.03%. Intangible Assets The following table provides information relating to our amortizable intangible assets as of December 31, 2019 (in millions): 2019 Domestic airport slots Customer relationships Marketing agreements Tradenames Airport gate leasehold rights Accumulated amortization Total 2022 2023 3 2024 Thereafter 3 Amortization schedule 18 47 $ 164 135 47 16 62 (317) $ 107 2020 18 2021 18