Long-Term Debt HC Accounting - WORK BACKWARDS

From AMR Corporation (American Airlines) 2008 annual report:

		December
Long-term debt consisted of (in millions):	2008	2008
Secured variable and fixed rate indebtedness due through 2021 (effective rates from 4.25% - 11.36% at December 31, 2008)	$4783	4662
Enhanced equipment trust certificates due through 2012 (rates from 3.86% - 12.00% at December 31, 2008)	2382	2482
6.0% - 8.5% special facility revenue bonds due through 2036	1674	1688
Credit facility agreement due through 2010 (effective rate of 8.60% at December 31, 2008)	691	440
4.25% - 4.50% senior convertible notes due 2023 - 2024	314	619
9.0% - 10.20% debentures due through 2021	213	213
7.88% - 10.55% notes due through 2039	211	211
SubTotal	10,268	10,315
Less current maturities	1,849	902
Long-term debt, less current maturities	$8,419	$9,413

Maturities of long-term debt (including sinking fund requirements) for the next five years are: 2009 - $1.8 billion; 2010 - $1.3 billion; 2011 - $2.2 billion; 2012 - $1.0 billion, 2013 - $700 million

As of December 31, 2008, the Company had outstanding $318 million principal amount of its 4.50 percent senior convertible notes due 2024 (the 4.50 Notes). On February 17, 2009, virtually all of the holders of the 4.50 Notes exercised their elective put rights and the Company purchased and retired these notes at a price equal to 100 percent of their principal amount. Under the terms of the 4.50 Notes, the Company had the option to pay the purchase price with cash, stock, or a combination of cash and stock, and the Company elected to pay for the 4.50 Notes solely with cash. The $318 million principal amount of the 4.50 Notes is recorded as Current maturities of long-term debt as of December 31, 2008.

In August 2008, AMR retired, by purchasing with cash, $75 million of the $300 million principal amount of the 4.25 percent senior convertible notes due 2023 (the 4.25 Notes). In September 2008, the remaining holders of the 4.25 Notes exercised their elective put rights and the Company purchased and retired these notes at a price equal to 100 percent of their principal amount, totaling $225 million. Under the terms of the 4.25 Notes, the Company had the option to pay the purchase price with cash, stock, or a combination of cash and stock, and the Company elected to pay for the 4.25 Notes solely with cash.

Certain debt is secured by aircraft, engines, equipment and other assets having a net book value of approximately $10.5 billion as of December 31, 2008.

In 2008, the Company raised approximately $500 million under a loan secured by aircraft. The loan bears interest at a LIBOR-based (London Interbank Offered Rate) variable rate with a fixed margin which resets quarterly and is due in installments through 2015.

As of December 31, 2008, AMR has issued guarantees covering approximately $1.7 billion of Americans tax-exempt bond debt and American has issued guarantees covering approximately $745 million of AMRs unsecured debt. In addition, as of December 31, 2008, AMR and American have issued guarantees covering approximately $305 million of AMR Eagles secured debt, and AMR has issued guarantees covering an additional $2.1 billion of AMR Eagles secured debt. In 2008, AMR issued guarantees covering $204 million of Americans leases of 39 Super ATR aircraft, which are subleased to AMR Eagle.

Cash payments for interest, net of capitalized interest, were $685 million, $861 million and $944 million for 2008, 2007 and 2006, respectively.

Required: You are an analyst working for ISI and want to project cash flow uses of American Airlines. Based on the long-term debt footnote above, what will Americans Statement of Cash Flows (NOT BY CATEGORY, just in general) look like for 2009, 2010, and 2011 related to the principal repayment on long-term debt?