=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/10/07/f= inancial1056EDT0063.DTL ---------------------------------------------------------------------- Monday, October 7, 2002 (AP) AMR to record $900 million charge to write off goodwill (10-07) 13:21 PDT FORT WORTH, Texas (AP) -- The parent company of American Airlines says it will take a one-time charge of about $900 million after taxes to write off the airlines' goodwill balance due to new accounting rules. In a filing with the Securities and Exchange Commission, AMR Corp. said the charge would be recorded effective Jan. 1. The Fort Worth-based company, which also owns the American Eagle commuter airline, said the move would have no impact on cash flow. AMR said it calculated the charge based on new rules from the Financial Accounting Standard Board covering the handling of goodwill and other intangible assets. Goodwill is the extra, intangible value that a company pays -- beyond the firm's assets minus its debts -- when it acquirers another company. Companies used to amortize goodwill over many years, but regulators required companies to end the practice this year. Critics said the amortization of goodwill allowed companies to understate the value of their acquisitions and overstate earnings. In trading on the New York Stock Exchange, AMR shares fell 56 cents, or = 13 percent, to close Monday at $3.76. =20 ---------------------------------------------------------------------- Copyright 2002 AP