Yes, it fully reclines.
The business class seats on AA's 777s are in a "shell" and recline to a full 180 degree, angle'd bed. Beware, though; when fully reclined, those with a middle or window seat will have a difficult time getting out. One literally has to climb over the passenger next to them if the other person's seat is reclines. AA made a major mistake by having all the business-class seats face forward, where areas other carriers have seats facing backwards and forward, giving everybody aisle access. Pure stupidity on AA's part, but at least the seat is comfortable.