3.
Bankruptcy Settlement Obligations As of December 31, 2013, the components of "Claims and other bankruptcy settlement obligations" on American's Consolidated Balance Sheet are as follows (in millions): AAG Series
## Table 0 ##
As a mechanism for satisfying Double-Dip Unsecured Claims and a portion of Single-Dip Unsecured Claims, the Plan of Reorganization provided that such claimholders receive the mandatorily convertible AAG Series A Preferred Stock.
AAG's Series A Preferred Stock, while outstanding, votes and participates in accordance with the terms of the underlying Certificate of Designation.
One quarter of the shares of AAG Series A Preferred Stock is mandatorily convertible on each of the 30 th, 60th, 90th and 120th days after the Effective Date.
In addition, subject to certain limitations, holders of AAG Series A Preferred Stock may elect to convert up to 10 million shares of AAG Series A Preferred Stock during each 30-day period following the Effective Date thereby reducing the number of AAG Series A Preferred Stock to be converted on the 120th day after the Effective Date.
The initial stated value of each share of AAG Series A Preferred Stock is $25.00 and accrues dividends at 6.25% per annum, calculated daily, while outstanding.
Additionally, AAG Series A Preferred Stock converts to AAG Common Stock based upon the volume weighted average price of the shares of AAG Common Stock on the five trading days immediately preceding the conversion date, at a 3.5% fixed discount, subject to a conversion price floor of $10.875 per share and a conversion price cap of $33.8080 per share, below or above which the conversion rate remains fixed.
AAG Series A Preferred Stock embodies an unconditional obligation to transfer a variable number of shares based predominately on a fixed monetary amount known at inception, and, as such, it is not treated as equity of AAG, but rather as a liability until such time that it is converted to AAG Common Stock.
Accordingly, American has reflected the amount of its claims satisfied through the issuance of the AAG Series A Preferred Stock as a liability included within the "Bankruptcy settlement obligations" line on American’s Consolidated Balance Sheets and will reflect such obligations as a liability until such time where they are satisfied through the issuance of AAG Common Stock.
Upon the satisfaction of these bankruptcy settlement obligations with AAG Common Stock, the Company will record an increase in additional paid-in capital through an intercompany equity transfer while derecognizing the related bankruptcy settlement obligation at that time.
As of February 19, 2014, approximately 107 million shares of AAG Series A Preferred Stock had been converted into an aggregate of 95 million shares of AAG Common Stock.
The Single-Dip equity obligations, while outstanding, do not vote or participate in accordance with the terms of the Plan.
These equity contract obligations, representing the amount of total Single-Dip unsecured creditor obligations not satisfied through the issuance of AAG Series A Preferred Stock at the Effective Date, represent an unconditional obligation to transfer a variable number of shares of AAG Common Stock based predominantly on a fixed monetary amount known at inception, and, as such, are not treated as equity, but rather as liabilities until the 120 th day after emergence.
At the 120 th day after emergence, AAG will issue a variable amount of AAG Common Stock necessary to satisfy the obligation amount at emergence, plus accrued dividends of 12% per annum, calculated daily, through the 120th day after emergence, based on the volume weighted average price of the shares of AAG Common Stock, at a 3.5% discount, as specified in the Plan and subject to there being a sufficient number of shares remaining for issuance to unsecured creditors under the Plan.
In exchange for employees' contributions to the successful reorganization of AAG, including agreeing to reductions in pay and benefits, AAG and American agreed in the Plan to provide each employee group a deemed claim which was used to provide a distribution of a portion of the equity of the reorganized entity to those employees.
Each employee group received a deemed claim amount based upon a fixed percentage of the distributions to be made to general unsecured claimholders.
The fair value based on the expected number of shares to be distributed to satisfy this deemed claim was approximately $1.7 billion.
On the Effective Date, AAG made an initial distribution of $595 million in common stock and American paid approximately $300 million in cash to cover payroll taxes related to the equity distribution.
As of December 31, 2013, the remaining liability to certain American labor groups and employees of $849 million is based upon the estimated fair value of the shares of AAG Common Stock expected to be issued in satisfaction of such obligation, measured as if the obligation were settled using the trading price of AAG Common Stock at December 31, 2013.
Increases in the trading price of AAG Common Stock after December 31, 2013, could cause a decrease in the fair value measurement of the remaining obligation, and vice-versa.
American will record this obligation at fair value primarily through the 120th day after emergence, at which time the obligation will be materially settled.
Excluding the results of US Airways Group, we recognized operating income of $1.6 billion in 2013 which compares to operating income of $148 million in 2012, a $1.4 billion improvement.
This year-over-year improvement was driven by growth in operating revenues of $957 million resulting from strong demand for air travel and a $471 million reduction in operating expenses primarily as a result of steps taken in our Chapter 11 restructuring.
Our standalone net loss was $1.6 billion in 2013 which compares to a net loss of $1.9 billion in 2012.
Our net loss was impacted by the recognition of net special charges of $2.8 billion and $1.7 billion in 2013 and 2012, respectively, principally the result of reorganization expenses related to the recognition of allowed claims.
See "AAG's Results of Operations" below for a reconciliation of the impact on American Airlines Group of the post-merger results of US Airways Group and net special charges.
Revenue Mainline and regional passenger revenues increased $864 million, or 4.0%, as compared to 2012.
The growth in revenues was driven by a 1.7% increase in revenue passenger miles and a 2.3% increase in yield, as total capacity increased 1.3% as compared to 2012.
Our mainline and regional passenger revenue per available seat mile (PRASM) was 13.38 cents in 2013, a 2.7% increase, as compared to 13.03 cents in 2012.
Fuel Mainline and regional fuel expense was relatively flat at $8.7 billion in each of 2013 and 2012.
The average mainline and regional price per gallon of fuel was $3.09 in 2013 as compared to an average price per gallon of $3.20 in 2012, a decrease of 3.3%.
The decrease in fuel price per gallon was offset by a 3.1% increase in consumption due in part to increased capacity and a shift from turboprop to regional jet aircraft.
Capacity Total system capacity for 2013 increased 1.3% primarily due to our ongoing fleet replacement programs where we are replacing older aircraft with larger gauge, more modern aircraft.
Cost Control AAG is committed to maintaining a low cost structure, which we believe is necessary in an industry whose economic prospects are heavily dependent upon two variables we cannot control: the health of the economy and the price of fuel.
Our mainline costs per available seat mile (CASM) excluding special items, fuel and profit sharing decreased 0.40 cents or 4.5% from 8.90 cents in 2012 to 8.50 cents in 2013.
This decrease was primarily due to cost reductions achieved in our Chapter 11 restructuring to become more cost competitive.
The table below details our mainline CASM excluding special items, fuel and profit sharing for the years ended December 31, 2013 and 2012:
## Table 1 ##
(1) We believe that the presentation of mainline CASM excluding fuel is useful to investors as both the cost and availability of fuel are subject to many economic and political factors beyond our control, and excluding special items and profit sharing provides investors the ability to measure financial performance in a way that is more indicative of our ongoing performance and is more comparable to measures reported by other major airlines.
Management uses mainline CASM excluding special items, fuel and profit sharing to evaluate our operating performance.
Amounts may not recalculate due to rounding.
Table of Contents Liquidity and Capital Resources Cash, Short-Term Investments and Restricted Assets As of December 31, 2013, AAG's total cash, short-term investments and restricted cash and short-term investments was $10.3 billion, of which $1.0 billion was restricted.
This includes American's total cash and short-term investments of $6.7 billion ($702 million restricted) and US Airways Group's cash and short-term investments of $3.6 billion ($333 million restricted).
Additional detail is provided in the table below (in millions):
## Table 2 ##
(1) Our restricted cash and short-term investments related primarily to collateral held to support projected workers compensation obligations.
As of December 31, 2013, approximately $783 million of American's cash and short-term investments balances were held in foreign bank accounts, of which $710 million is held as Venezuela bolivars.
The business environment in Venezuela has been challenging, with economic uncertainty fueled by currency devaluation, high inflation and governmental restrictions, including currency exchange and payment controls, price controls and the possibility of expropriation of property or other resources.
As of December 31, 2013, approximately $710 million of our unrestricted cash balance was held as Venezuelan bolivars, valued at a weighted average rate of 6.04 bolivars to the dollar.
The period of time to exchange those funds into dollars and repatriate them has been increasing and is presently more than a year.
On January 23, 2014, the Venezuelan government issued a regulation to implement a new system for determining the exchange rate based on the result of limited periodic sales of dollars known as Sicad auctions (currently 11.80 to the dollar based on the February 21, 2014 Sicad auction) for repatriation of income from future ticket sales, and introduced new procedures for approval of conversion and repatriation of local currency.
The government also enacted a new law effective February 19, 2014 that authorizes additional methods of exchanging Venezuelan bolivars at rates other than the controlled base rate of 6.3 to the dollar or the existing Sicad auction rate, but the regulations necessary to implement the law are still pending and it is not clear at this point whether or how the new methods may impact the pending balances of Venezuelan bolivars held by airlines.
We are working with Venezuelan authorities regarding the timing and exchange rate applicable to the repatriation of funds held in local currency.
Further, the current, devalued rates may have an ongoing adverse effect on our reported results if we are unable to fully adjust prices on flights to and from Venezuela, of which there can be no assurance.
More generally, fluctuations in foreign currencies, including devaluations, cannot be predicted by the Company and can significantly affect the value of our assets located outside the United States.
These conditions, as well as any further delays, devaluations or imposition of more stringent repatriation restrictions, may materially adversely affect our business, results of operations and financial condition.
See Part I - Item 1A.
Risk Factors " We operate a global business with international operations that are subject to economic and political instability and have been, and in the future may continue to be, adversely affected by numerous events, circumstances or government actions beyond our control" for additional discussion on currency risks.
Our unrestricted short-term investment portfolio consists of a variety of what we believe are highly liquid, lower risk instruments including money market funds, government agency investments, repurchase agreements, short-term obligations, corporate obligations, bank notes, certificates of deposit and time deposits.
Our objectives for our investment portfolio are (1) the safety of principal, (2) liquidity maintenance, (3) yield maximization and (4) the full investment of all available funds.
Our risk management policy further emphasizes superior credit quality (primarily based on short-term ratings by nationally recognized statistical rating organizations) in selecting and maintaining investments in our portfolio and enforce limits on the proportion of funds invested with one issuer, one industry or one type of instrument.
We regularly assess the market risks of our portfolio.
(1) Reorganization items refer to revenues, expenses (including professional fees), realized gains and losses and provisions for losses that were realized or incurred as a direct result of the Chapter 11 Cases.
See Note 2 in Part II, Item 8Ato AAG’s Consolidated Financial Statements for further information on reorganization items.
(2) American’s defined benefit pension plans were frozen effective November 1, 2012 and the Pilot B Plan, a defined contribution plan, was terminated on November 30, 2012.
Further, American significantly modified its retiree medical plans in 2012 resulting in the recognition of a negative plan amendment.
See Note 13 in Part II, Item 8A to AAG’s Consolidated Financial Statements for further information on retirement benefits, including the financial impact of these plan changes.
(3) See reconciliation of GAAP to non-GAAP financial measures below.
A number of factors render AAG’s historical consolidated financial information not directly comparable to its financial information for prior or future periods.
See Part I, Item 1A.
Risk Factors – “The historical consolidated financial information contained in this report is not directly comparable to our financial information for prior or future periods,” and Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations and the notes to AAG’s Consolidated Financial Statements in Part II, Item 8A.
Reconciliation of GAAP to Non-GAAP Financial Measures We are providing disclosure of the reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis.
We believe that the non-GAAP financial measures provide investors the ability to measure financial performance excluding special items, which is more indicative of our ongoing performance and is more comparable to measures reported by other major airlines.
## Table 3 ##
(1) Includes the following operating special items, net: ?
In 2014, special items principally included $818 million of Merger integration expenses related to information technology, alignment of labor union contracts, professional fees, severance and retention, share-based compensation, divestiture of London Heathrow Slots, fleet restructuring, re-branding of aircraft and airport facilities, relocation and training.
In addition, we recorded a net charge of $81 million for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations, a $24 million charge due to a new pilot labor contract at our Envoy regional subsidiary, $164 million in other special charges, including an $81 million charge to revise prior estimates of certain aircraft residual values, and other spare parts asset impairments, as well as $54 million in charges primarily relating to the buyout of certain aircraft leases.
These charges were offset in part by a $309 million gain on the sale of Slots at DCA and an $8 million gain on the sale of certain spare parts.  ?
In 2013, special items included $449 million of primarily Merger related expenses due to the alignment of labor union contracts, professional fees, severance, share-based compensation and fees for US Airways to exit the Star Alliance and its codeshare agreement with United Airlines.
In addition, we

<table><tr><td>AAG Series A Preferred Stock</td><td>$3,329</td></tr><tr><td>Single-dip equity obligations</td><td>1,246</td></tr><tr><td>Labor-related deemed claim</td><td>849</td></tr><tr><td>Total</td><td>$5,424</td></tr></table>
<table><tr><td></td><td>2013</td><td>2012</td><td>Percent Increase (Decrease)</td></tr><tr><td></td><td colspan="2">(In cents)</td><td></td></tr><tr><td>Total mainline CASM</td><td>13.67</td><td>14.20</td><td>-3.7</td></tr><tr><td>Less: Special items, net</td><td>-0.18</td><td>-0.25</td><td>-28.0</td></tr><tr><td>Less: Aircraft fuel and related taxes</td><td>-4.94</td><td>-5.05</td><td>-2.2</td></tr><tr><td>Less: Profit sharing</td><td>-0.05</td><td>—</td><td>nm</td></tr><tr><td>Total mainline CASM excluding special items, fuel and profit sharing<sup>1</sup></td><td>8.50</td><td>8.90</td><td>-4.5</td></tr></table>
<table><tr><td></td><td colspan="2">AAG December 31,</td><td colspan="2">American December 31,</td></tr><tr><td></td><td>2013</td><td>2012</td><td>2013</td><td>2012</td></tr><tr><td>Cash</td><td>$1,140</td><td>$480</td><td>$829</td><td>$474</td></tr><tr><td>Short-term investments</td><td>8,111</td><td>3,412</td><td>5,162</td><td>3,408</td></tr><tr><td>Restricted cash and short-term investments<sup>1</sup></td><td>1,035</td><td>850</td><td>702</td><td>850</td></tr><tr><td>Total cash, short-term investments and restricted cash and short-term investments</td><td>$10,286</td><td>$4,742</td><td>$6,693</td><td>$4,732</td></tr></table>
<table><tr><td></td><td colspan="5">Year Ended December 31,</td></tr><tr><td></td><td> 2014</td><td>2013</td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td></td><td colspan="5">(In millions)</td></tr><tr><td>Operating income (loss) – GAAP</td><td>$4,249</td><td>$1,399</td><td>$148</td><td>$-1,037</td><td>$362</td></tr><tr><td>Operating special items, net -1</td><td>824</td><td>536</td><td>387</td><td>799</td><td>82</td></tr><tr><td>Operating income (loss) excluding special items</td><td>$5,073</td><td>$1,935</td><td>$535</td><td>$-238</td><td>$444</td></tr><tr><td>Net income (loss) – GAAP</td><td>$2,882</td><td>$-1,834</td><td>$-1,876</td><td>$-1,979</td><td>$-471</td></tr><tr><td>Operating special items, net -1</td><td>824</td><td>536</td><td>387</td><td>799</td><td>82</td></tr><tr><td>Nonoperating special items, net -2</td><td>132</td><td>211</td><td>-280</td><td>—</td><td>—</td></tr><tr><td>Reorganization items, net -3</td><td>—</td><td>2,655</td><td>2,208</td><td>118</td><td>—</td></tr><tr><td>Income tax special items -4</td><td>346</td><td>-324</td><td>-569</td><td>—</td><td>—</td></tr><tr><td>Net income (loss) excluding special items</td><td>$4,184</td><td>$1,244</td><td>$-130</td><td>$-1,062</td><td>$-389</td></tr></table>

Question: What's the increasing rate of Operating special items, net in 2014? (in %)
Answer: 0.53731