Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC 2. Special Items, Net Special items, net on our consolidated statements of operations consisted of the following (in millions): The 2019 fleet impairment principally included a non-cash write-down of aircraft related to the retirement of our Embraer 190 fleet. The 2019 and 2018 severance expenses primarily included costs associated with reductions of management and support staff team members. PSP1 Financial Assistance represents recognition of financial assistance received from Treasury pursuant to the PSP1 Agreement. See Note 1(b) for further information. (1) The 2020 fleet impairment resulted from our decision to retire certain aircraft earlier than planned driven by the severe decline in air travel due to the COVID-19 pandemic. Aircraft retired include Airbus A330-200, Boeing 757, Boeing 767, Airbus A330-300, Embraer 190, certain Embraer 140 and Bombardier CRJ200 aircraft. This included a $1.5 billion non-cash write-down of mainline and regional aircraft and spare parts and $109 million in cash charges primarily for impairment of ROU assets and lease return costs. See Note 1(g) for further information related to these charges. (2) The 2020 severance expenses included salary and medical costs primarily associated with certain team members who opted in to voluntary early retirement programs offered as a result of reductions to our operation due to the COVID-19 pandemic. Cash payments related to these charges for the year ended December 31, 2020 were approximately $365 million. (3) 108 Year Ended December 31, 2020 2019 2018 PSP1 Financial Assistance  $ (3,710) $ —  $ —  Fleet impairment  1,484  213  —  Severance expenses  1,408  11  58  Labor contract expenses  228  —  13  Mark-to-market adjustments on bankruptcy obligations, net  (49) (11) (76) Fleet restructuring expenses  —  271  422  Merger integration expenses  —  191  268  Litigation reserve adjustments —  (53) 45  Intangible asset impairment  —  —  26  Other operating special items, net (18) 13  31  Mainline operating special items, net (657) 635  787  PSP1 Financial Assistance  (444) —  —  Fleet impairment  117  —  —  Severance expenses  18  —  —  Other operating special items, net —  6  6  Regional operating special items, net (309) 6  6  Operating special items, net (966) 641  793  Mark-to-market adjustments on equity and other investments, net  135  (5) 104  Debt refinancing, extinguishment and other, net 35  8  9  Nonoperating special items, net 170  3  113  Income tax special items  —  —  18  (1) (2) (3) (4) (5) (6) (7) (8) (1) (2) (3) (9) (10)