Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC. Fair Value Measurements as of December 31, 2019 Total Level 1 Level 2 Level 3 Short-term investments  : Money market funds $ 331  $ 331  $ —  $ —  Bank notes/certificates of deposit/time deposits 2,106  —  2,106  —  Corporate obligations 1,021  —  1,021  —  Repurchase agreements 85  —  85  —  3,543  331  3,212  —  Restricted cash and short-term investments  158  10  148  —  Long-term investments  204  204  —  —  Total $ 3,905  $ 545  $ 3,360  $ —  (1) (1) (4) All short-term investments are classified as available-for-sale and stated at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive loss at each reporting period. There were no credit losses. (1) American’s short-term investments as of December 31, 2020 mature in one year or less except for $235 million of bank notes/certificates of deposit/time deposits. (2) Restricted cash and short-term investments primarily include money market funds to be used to finance a substantial portion of the cost of the renovation and expansion of Terminal 8 at JFK and collateral held to support workers' compensation obligations. (3) Long-term investments primarily include American's equity investment in China Southern Airlines, in which American presently owns a 1.8% equity interest, and are classified in other assets on the consolidated balance sheets. (4) The fair value of American’s long-term debt was estimated using quoted market prices or discounted cash flow analyses, based on American’s current estimated incremental borrowing rates for similar types of borrowing arrangements. If American’s long-term debt was measured at fair value, it would have been classified as Level 2 except for $550 million which would have been classified as Level 3 in the fair value hierarchy. The carrying value and estimated fair value of American’s long-term debt, including current maturities, were as follows (in millions): American has an approximate 25% ownership interest in Republic Holdings, which it received in 2017 in consideration for its unsecured claim in the Republic Holdings bankruptcy case. This ownership interest is accounted for under the equity method and American’s portion of Republic Holdings’ financial results is recognized within other, net on the consolidated statements of operations and the investment is reflected within other assets on its consolidated balance sheets. Fair Value of Debt Other Investments December 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 28,410  $ 27,193  $ 22,372  $ 23,196  182