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## Indefinite-Lived Intangible Assets 

Indefinite-lived intangible assets include certain domestic airport slots at American’s hubs and international slots and route authorities. Indefinite-lived intangible assets are not amortized but instead are assessed for impairment annually on October 1$^{st}$ or more frequently if events or circumstances indicate that the asset may be impaired. For both periods as of December 31, 2018 and 2017, American had $1.9 billion of indefinite- lived intangible assets on its consolidated balance sheets. 

In the second quarter of 2018, American recorded a $26 million impairment charge on a Brazil route authority as a result of the U.S.-Brazil open skies agreement, which is included within special items, net on its consolidated statement of operations. 

Indefinite-lived intangible assets are assessed for impairment by initially performing a qualitative assessment to determine whether American believes it is more likely than not that an asset has been impaired. If American believes impairment has occurred, American then evaluates for impairment by comparing the estimated fair value of assets to the carrying value. An impairment charge is recognized if the asset’s estimated fair value is less than its carrying value. Based upon American’s annual assessment, there were no additional indefinite-lived intangible asset impairments in 2018 other than the Brazil route authority described above. 

## (k) Revenue Recognition 

## Revenue 

Effective January 1, 2018, American adopted the New Revenue Standard using the full retrospective method, which resulted in the recast of prior reporting periods. Refer to “ Recent Accounting Pronouncements” in Note 1(b) for the effects of the adoption on American’s consolidated statements of operations for the years ended December 31, 2017 and 2016 and on American’s consolidated balance sheet as of December 31, 2017. Under the New Revenue Standard, revenue is recognized upon the transfer of control of promised products or services to American’s customers in an amount that reflects the consideration it expects to receive in exchange for those products or services. 

The following are the significant categories comprising American’s reported operating revenues (in millions): 

<img src='content_image/1028665.jpg'>

(1) Loyalty revenue included in passenger revenue is principally comprised of mileage credit redemptions earned through travel and mileage credits sold to co-branded credit card and other partners. See “ Loyalty Revenue”  below for further discussion on these mileage credits. 

The following is American’s total passenger revenue by geographic region (in millions): 

<img src='content_image/1028666.jpg'>

