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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
delays.
In the early 2000s, the FAA embarked on a path to modernize the national airspace system, including migration from the current radar-based ATC system to a GPS-based system. This modernizati... |
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The report is about the company's financial status.
shut-downs, sequestrations or similar events and the COVID-19 pandemic. These events have resulted in, among other things, reduced demand for air travel, an actual or perceived reduction in air traf... |
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The report is about the company's financial status.
foreign agencies. The U.S. government has negotiated “open skies” agreements with 130 trading partners, which agreements allow unrestricted route authority access between the U.S. and the foreign ma... |
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The report is about the company's financial status.
agreement involving the U.S. and the United Kingdom, which was agreed in anticipation of Brexit, we face increased competition in these markets, including LHR. Bilateral and multilateral agreements ... |
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The report is about the company's financial status.
revenue-sharing joint ventures, joint business agreements, and other alliance arrangements by and among other airlines could impair the value of our business and assets on the open skies routes.
On... |
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The report is about the company's financial status.
and Cooperation Agreement is less extensive than before Brexit and therefore the full impact of the EU-UK Trade and Cooperation Agreement is uncertain. As a result, the continuation of our current s... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
significant operations outside of the U.S. Our current international activities and prospects have been, and in the future could be, adversely affected by government policies, reversals or delays in... |
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The report is about the company's financial status.
service to or from certain regions. We responded by temporarily suspending a significant portion of our long-haul international flights and delaying the introduction of certain new long-haul interna... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
government agencies will be delayed in granting or renewing required approvals, including as a result of shutdowns (such as occurred in certain jurisdictions during the COVID-19 pandemic), cybersecu... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
regulatory actions, have the effect of reducing global commercial activity, the result could be a material decrease in the demand for international air travel. Additionally, certain of the products ... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
current services under the transatlantic joint business. However, the scope of traffic rights under the EU-UK Trade and Cooperation Agreement is less extensive than before Brexit and therefore the f... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
such as the identity of the relevant regulators, new regulatory action and/or potentially divergent treaties, laws and regulations as the United Kingdom determines which EU treaties, laws and regula... |
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The report is about the company's financial status.
retained EU legislation. The extent of any such specific action, and therefore the specific retained EU legislation that would “sunset” at the end of 2023, is currently unknown. The impact on our bu... |
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The report is about the company's financial status.
, exchange controls and other restrictions on the repatriation of funds, have significantly affected and may continue to significantly affect our operating performance, liquidity and the value of any... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
depress air travel, particularly on international routes, and cause declines in revenues and increases in costs. The attacks of September 11, 2001 and continuing terrorist threats, attacks and attem... |
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The report is about the company's financial status.
and enhanced background checks. A concurrent increase in airport security charges and procedures, such as restrictions on carry-on baggage, has also had and may continue to have a disproportionate i... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
of our operations, it is unlikely that we will be able to capture all security-related costs through increased fares. In addition, we cannot forecast what new security requirements may be imposed in... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
our international flights. For more information on CORSIA, see
“Aircraft Emissions and Climate Change Requirements”
under Item 1. Business – Domestic and Global Regulatory Landscape – Environmenta... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
competitive nature of the airline industry and unpredictability of the market for air travel, we can offer no assurance that we may be able to increase our fares, impose surcharges or otherwise incr... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
the scope of the EU Emissions Trading System to include all departing flights from the EEA (and not just flights within the EEA, which are currently included). These and similar proposals may lead t... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
make changes or investments in our infrastructure.
In January 2021, the EPA adopted GHG emission standards for new aircraft engines, which are aligned with the 2017 ICAO aircraft engine GHG emissio... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
be any development of new aircraft GHG emissions standards cannot be predicted at this time.
The EC’s ReFuelEU Aviation initiative (part of its "Fit for 55" program) included a proposal for the cre... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
into force on January 1, 2022. Whether and in what form these regulations will be finalized and the potential effects on our business are uncertain at this time.
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Table of Contents
All such cli... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
small in scale and inadequate to meet growing industry demand, and while additional production capacity is expected to come online in coming years, we anticipate that competition for SAF among indus... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
timelines and volumes. In the event that the SAF is not delivered on schedule or in sufficient volumes, there can be no assurance that we will be able to source a supply of SAF sufficient to meet ou... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
and airport slots, could lose value as customer demand shifts and economies move to low-carbon alternatives, which may increase our financing cost.
Finally, the potential acute and chronic physical... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
climate change.
We are subject to many forms of environmental and noise regulation and may incur substantial costs as a result.
We are subject to a number of increasingly stringent federal, state,... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
soil or groundwater to meet certain remediation standards. Under federal law, generators of waste materials, and current and former owners or operators of facilities, can be subject to liability for... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
polyfluoroalkyl, substances (PFAS). Products containing PFAS have been used in manufacturing, industrial, and consumer applications over many decades, including those related to aviation. Among othe... |
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The report is about the company's financial status.
able quantity for such substances to EPA’s National Response Center. Depending on the final outcome of this rulemaking and the introduction of any additional state or federal regulations, we may incu... |
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The report is about the company's financial status.
in leases with other airlines in fuel consortiums and fuel committees at airports, and such indemnities are generally joint and several among the participating airlines.
Governmental authorities in... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
increase the efficiency of the airspace and airports we utilize.
A higher than normal number of pilot retirements, more stringent duty time regulations, increased flight hour requirements for comme... |
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The report is about the company's financial status.
500 hours, thereby significantly increasing the time and cost commitment required to become licensed to fly commercial aircraft. Additionally, the number of military pilots being trained by the U.S. ... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
increases in mainline pilot compensation. We believe that this industry-wide pilot shortage will remain a significant problem for airlines in the United States for the foreseeable future. Our region... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
aircraft were manufactured by either Airbus or Boeing and all of our regional aircraft were manufactured by either Bombardier or Embraer. Further, our supplier base continues to consolidate as evide... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
, even temporarily. For instance, in March 2019, the FAA ordered the grounding of all Boeing 737 MAX Family aircraft, which
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remained in place for over a year and was not lifte... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
business depends on, among other things, effectively managing the number and types of aircraft we operate. If, for any reason, we are unable to accept or secure deliveries of new aircraft on contrac... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
not filled on a timely basis, we could face higher financing and operating costs than planned. In addition, if the aircraft we receive do not meet expected performance or quality standards, includin... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
to our planned long-haul flying. Repeated or prolonged delays in the production, delivery or induction of our new aircraft could require us to scale back our growth plans, reduce frequencies or forg... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
work efficiently, our website and reservation system must be able to accommodate a high volume of traffic, maintain secure information and deliver flight information, as well as issue electronic tic... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
, increase our expenses and decrease our revenues. Furthermore, certain critical aspects of our operation rely on legacy technological systems which may grow more difficult or expensive to support an... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
. For example, telecommunications companies are expanding and increasing the commercial and consumer applications of 5G cellular communication networks, and regulators, manufacturers and operators ha... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
2022, major U.S. telecommunications companies agreed to delay the implementation of 5G near airports until July 5, 2022 while working with the FAA to develop long-term mitigations to support safe avi... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
we are working closely with the FAA and other aviation industry participants to develop a long-term strategy that permits the full implementation of the 5G spectrum without disruption to safe aviati... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
completed retrofitting our mainline Airbus A320 fleet with updated radio altimeters. We will continue retrofitting aircraft across both our mainline and regional fleets and currently expect completi... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
, cyber-attacks, data theft, defects, errors, equipment and software failures, computer viruses or telecommunications failures. When service interruptions occur as a result of any of the aforemention... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
compliance with applicable federal, state and foreign laws relating to handling of personal information about individuals) could increase our costs, and any significant data security or privacy inci... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
In addition, privacy advocacy and industry groups may propose new and different self-regulatory standards or guidance that may legally or contractually apply to us and our vendors. These non-uniform... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
individuals, including employees or contractors, may be able to circumvent the security measures we put in place, and we may be unable to anticipate new techniques used for these attacks and intrusi... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
of individuals, including travelers (following which we notified the individuals). We react and respond to these
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cybersecurity attacks in accordance with the applicable legal... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
critical infrastructure providers, including those in the transportation sector. As a result, we must comply with a proliferating and fast-evolving set of legal requirements in this area, including ... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
data security standards that we must meet. In particular, we are required by the Payment Card Industry Security Standards Council, founded by the credit card companies, to comply with their highest ... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
through ransomware, denial of service or other attacks; a diminished ability to retain or attract new customers; a deterioration in our relationships with business partners and other third parties; ... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
conduct their businesses in a manner that complies with applicable security standards and assures their ability to perform on a timely basis. A security failure, including a failure to meet relevant... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
these could (a) result in the loss of information, litigation, indemnity obligations, expensive and inconsistent cybersecurity incident and data breach notification requirements, damage to our reput... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
. A significant number of recent privacy and data security incidents, including those involving other large airlines, have resulted in very substantial adverse financial consequences to those compani... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
our services, including the geographies we service, and being subject to complaints and/or regulatory investigations, significant monetary liability, fines, penalties, regulatory enforcement, indivi... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
which we are or become a party could potentially result in substantial monetary damages or fines.
We rely on third-party distribution channels and must manage effectively the costs, rights and func... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
distribution channels to expand their ability to distribute and collect revenues for ancillary products (e.g., fees for selective seating). These distribution channels are more expensive and at pres... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
significant technological and commercial risk and involve potentially material investments. These imperatives may affect our relationships with conventional travel agents, travel management companie... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
expand or change our route network in the future, which may have a material adverse impact on our operations.
In order to operate our existing and proposed flight schedule and, where desirable, add... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
number of airports where we have significant operations, such as ORD, Dallas/Fort Worth International Airport, JFK and LAX. This spending is expected to result in increased costs to airlines and the... |
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The report is about the company's financial status.
through allocations of slots or similar regulatory mechanisms that limit the rights of carriers to conduct operations at those airports. Each slot represents the authorization to land at or take off... |
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The report is about the company's financial status.
1,500 miles, respectively. Similarly, our operations at LHR, international airports in Beijing, Frankfurt, Paris, Tokyo and other airports outside the U.S. are regulated by local slot authorities pur... |
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The report is about the company's financial status.
allocations are often sought after by other airlines and are subject to changes in governmental policies. Due to the dramatic reduction in air travel during the COVID-19 pandemic, we relied in many ... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
regulatory changes resulting in changes in the application of slot controls or the allocation of or any reallocation of existing slots, the continued enforcement or termination of a perimeter rule o... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
uptions or disruptions in service at one of our key facilities could have a material adverse impact on our operations.
We operate principally through our hubs in Charlotte, Chicago, Dallas/Fort Wort... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
us to manage our operations (including as a result of social or environmental activism), labor relations, power supplies, fuel supplies, terrorist activities, or otherwise could result in the cancel... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
the insurance coverage available to commercial air carriers. Accordingly, our insurance costs increased significantly, and our ability to continue to obtain insurance even at current prices remains ... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
, our ability to pass along additional insurance costs to passengers is limited. As a result, further increases in insurance costs or reductions in available insurance coverage could have an adverse ... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
including us, various fees and taxes, and these assessments have been increasing in number and amount in recent years. Moreover, we are obligated to collect a federal excise tax, commonly referred t... |
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The report is about the company's financial status.
recover all of these charges from our customers. Increases in such taxes, fees and charges could negatively impact our business, results of operations and financial condition.
Under DOT regulations... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
future, due to a variety of factors, many of which are beyond our control, including:
the effects of the COVID-19 pandemic on our business or the U.S. and global economies;
macro-economic conditio... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
dividends;
new regulatory pronouncements and changes in regulatory guidelines;
general and industry-specific economic conditions;
changes in our key personnel;
public or private sales of a subst... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
or company-specific fundamentals, including, without limitation, the sentiment of retail investors (including as may be expressed on financial trading and other social media sites), the amount and s... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
years this wide range of trading prices has largely reflected the changing prospects for a large airline facing the challenges imposed by the COVID-19 pandemic, we also believe, based in part on the... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
reasons, but rather due to the need for such market participants to acquire the stock in order to forestall the risk of even greater losses. A “short squeeze” condition in the market for a stock can... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
repurchases in the future, such repurchases may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades or accelerated share re... |
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The report is about the company's financial status.
and timing of any future dividends, if any, may vary, and the payment of any dividend does not assure that we will pay dividends in the future.
In addition, any future repurchases of AAG common sto... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
common stock may fluctuate such that our cash flow may be insufficient to fully cover our share repurchases. Under the recently enacted IRA, we may become subject to an excise tax on the fair market... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
equity interests as described in Part II, Item 5. Market for American Airlines Group’s Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities - “
Ownership Restrictions... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
shall be the exclusive forum for substantially all disputes between us and our stockholders. Because the applicability of the exclusive forum provision is limited to the extent permitted by applicab... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
against our directors and officers.
Certain provisions of AAG’s Certificate of Incorporation and Bylaws make it difficult for stockholders to change the composition of our Board of Directors and ma... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
holders are restricted from calling a special meeting unless they hold at least 20% of our outstanding shares and follow the procedures provided for in the amended Bylaws;
a requirement that holders... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
, or a majority, of our stockholders might believe to be in their best interest and, in that case, may prevent or discourage attempts to remove and replace incumbent directors. In addition, we are su... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
and the Convertible Notes.
We may conduct future offerings of material amounts of our common stock, preferred stock or other securities that are convertible into or exercisable for our common stock... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
our common stock, or if the market perceives that such issuances or sales may occur, then the trading price of our common stock and Convertible Notes could decline substantially.
ITEM 1B. UNRESOLVE... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
our wholly-owned and third-party regional carriers that fly under capacity purchase agreements operating as American Eagle. As of December 31, 2022, American Eagle operated 536 regional aircraft. Du... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
A321
184
10.4
164
54
218
Airbus A321neo
196
1.7
33
35
68
Boeing 737-800 (1)
172
12.8
123
171
294
Boeing 737-8 MAX
172
3.4
33
42
Boeing 777-200ER
273
22.0
44
47
Boeing 777... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
(1)
Excluded from the total operating aircraft count above are
nine
owned Boeing 737-800 held in temporary storage as of December 31, 2022.
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Table of Contents
Regional
As of December 31, 202... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
40
109
PSA
69
Mesa
40
Total
109
Embraer 170 (1)
65
13
21
Republic
13
Envoy
Total
21
Embraer 175
76
101
108
209
Envoy
101
Republic
88
SkyWest
20
Total
209
Embraer 145 (... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Bombardier CRJ 700, four owned and two leased Embraer 170 and four owned Bombardier CRJ 900.
See Note 11 to AAG’s Consolidated Financial Statements in Part II, Item 8A and Note 10 to American’s Con... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
22
28
21
88
787 Family
12
34
Total
23
39
56
54
10
182
(1)
Delivery schedule represents our best estimate as of the date of this report as described in footnote (e) to the “
Contractua... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
2023 except for 10 Boeing 737 MAX Family aircraft. Our ability to draw on the financing commitments we have in place is subject to (1) the satisfaction of various terms and conditions including, in ... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
ated Financial Statements in Part II, Item 8A and Note 10 to American’s Consolidated Financial Statements in Part II, Item 8B for additional information on aircraft and engine acquisition commitments... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
We lease or have built on leased property our headquarters and training facilities in Fort Worth, Texas, our principal overhaul and maintenance base in Tulsa, Oklahoma, our regional reservation offic... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
ER PURCHASES OF EQUITY SECURITIES
Stock Exchange Listing
Our common stock is listed on The Nasdaq Global Select Market under the trading symbol “AAL.” There is no trading market for the common stoc... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Inc. (the Proxy Statement) under the caption “Equity Compensation Plan Information” and is incorporated by reference into this Annual Report on Form 10-K.
Dividends on Common Stock
There were no c... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
and the payment of dividends may be suspended or discontinued again at any time at our discretion and without prior notice.
60
Table of Contents
Stock Performance Graph
The following stock perfo... |
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Poor’s Financial Services, LLC (S&P) 500 Stock Index. The comparison assumes $100 was invested on December 31, 2017 in our common stock and in each of the foregoing indices and assumes that all divi... |
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