DELTA AIR LINES, INC.
Consolidated Balance Sheets
December 31,
(in millions, except share data)
2013
2012
ASSETS
Current Assets:
Cash and cash equivalents
$
2,844
$
2,416
Short-term investments
959
958
Restricted cash, cash equivalents and short-term investments
122
375
Accounts receivable, net of an allowance for uncollectible accounts of $23 and $36
at December 31, 2013 and 2012, respectively
1,609
1,693
Fuel inventory
706
619
Expendable parts and supplies inventories, net of an allowance for obsolescence of $118 and $127
at December 31, 2013 and 2012, respectively
357
404
Deferred income taxes, net
1,736
463
Prepaid expenses and other
1,318
1,344
Total current assets
9,651
8,272
Property and Equipment, Net:
Property and equipment, net of accumulated depreciation and amortization of $7,792 and $6,656
at December 31, 2013 and 2012, respectively
21,854
20,713
Other Assets:
Goodwill
9,794
9,794
Identifiable intangibles, net of accumulated amortization of $738 and $670
at December 31, 2013 and 2012, respectively
4,658
4,679
Deferred income taxes, net
4,992
—
Other noncurrent assets
1,303
1,092
Total other assets
20,747
15,565
Total assets
$
52,252
$
44,550
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Current maturities of long-term debt and capital leases
$
1,547
$
1,627
Air traffic liability
4,122
3,696
Accounts payable
2,300
2,293
Accrued salaries and related benefits
1,926
1,680
Frequent flyer deferred revenue
1,861
1,806
Taxes payable
673
585
Fuel card obligation
602
455
Other accrued liabilities
1,121
1,128
Total current liabilities
14,152
13,270
Noncurrent Liabilities:
Long-term debt and capital leases
9,795
11,082
Pension, postretirement and related benefits
12,392
16,005
Frequent flyer deferred revenue
2,559
2,628
Deferred income taxes, net
—
2,047
Other noncurrent liabilities
1,711
1,649
Total noncurrent liabilities
26,457
33,411
Commitments and Contingencies
Stockholders' Equity (Deficit):
Common stock at $0.0001 par value; 1,500,000,000 shares authorized, 869,484,981 and 867,866,505
shares issued at December 31, 2013 and 2012, respectively
—
—
Additional paid-in capital
13,982
14,069
Retained earnings (accumulated deficit)
3,049
(7,389
)
Accumulated other comprehensive loss
(5,130
)
(8,577
)
Treasury stock, at cost, 18,041,848 and 16,464,472 shares at December 31, 2013 and 2012, respectively
(258
)
(234
)
Total stockholders' equity (deficit)
11,643
(2,131
)
Total liabilities and stockholders' equity (deficit)
$
52,252
$
44,550
The accompanying notes are an integral part of these Consolidated Financial Statements.
51
DELTA AIR LINES, INC.
Consolidated Statements of Operations
Year Ended December 31,
(in millions, except per share data)
2013
2012
2011
Operating Revenue:
Passenger:
Mainline
$
26,534
$
25,173
$
23,843
Regional carriers
6,4.
DELTA AIR LINES, INC.Consolidated Balance Sheets.docx
1. DELTA AIR LINES, INC.
Consolidated Balance Sheets
December 31,
(in millions, except share data)
2013
2012
ASSETS
Current Assets:
Cash and cash equivalents
$
2,844
$
2,416
2. Short-term investments
959
958
Restricted cash, cash equivalents and short-term investments
122
375
Accounts receivable, net of an allowance for uncollectible
accounts of $23 and $36
at December 31, 2013 and 2012, respectively
1,609
1,693
Fuel inventory
706
619
Expendable parts and supplies inventories, net of an allowance
for obsolescence of $118 and $127
at December 31, 2013 and 2012, respectively
357
404
Deferred income taxes, net
3. 1,736
463
Prepaid expenses and other
1,318
1,344
Total current assets
9,651
8,272
Property and Equipment, Net:
Property and equipment, net of accumulated depreciation and
amortization of $7,792 and $6,656
at December 31, 2013 and 2012, respectively
21,854
20,713
Other Assets:
Goodwill
9,794
4. 9,794
Identifiable intangibles, net of accumulated amortization of
$738 and $670
at December 31, 2013 and 2012, respectively
4,658
4,679
Deferred income taxes, net
4,992
—
Other noncurrent assets
1,303
1,092
Total other assets
20,747
15,565
Total assets
$
52,252
$
44,550
5. LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Current maturities of long-term debt and capital leases
$
1,547
$
1,627
Air traffic liability
4,122
3,696
Accounts payable
2,300
2,293
Accrued salaries and related benefits
1,926
1,680
Frequent flyer deferred revenue
1,861
6. 1,806
Taxes payable
673
585
Fuel card obligation
602
455
Other accrued liabilities
1,121
1,128
Total current liabilities
14,152
13,270
Noncurrent Liabilities:
Long-term debt and capital leases
9,795
11,082
7. Pension, postretirement and related benefits
12,392
16,005
Frequent flyer deferred revenue
2,559
2,628
Deferred income taxes, net
—
2,047
Other noncurrent liabilities
1,711
1,649
Total noncurrent liabilities
26,457
33,411
Commitments and Contingencies
Stockholders' Equity (Deficit):
8. Common stock at $0.0001 par value; 1,500,000,000 shares
authorized, 869,484,981 and 867,866,505
shares issued at December 31, 2013 and 2012, respectively
—
—
Additional paid-in capital
13,982
14,069
Retained earnings (accumulated deficit)
3,049
(7,389
)
Accumulated other comprehensive loss
(5,130
)
(8,577
)
Treasury stock, at cost, 18,041,848 and 16,464,472 shares at
December 31, 2013 and 2012, respectively
(258
)
(234
)
Total stockholders' equity (deficit)
9. 11,643
(2,131
)
Total liabilities and stockholders' equity (deficit)
$
52,252
$
44,550
The accompanying notes are an integral part of these
Consolidated Financial Statements.
51
DELTA AIR LINES, INC.
Consolidated Statements of Operations
10. Year Ended December 31,
(in millions, except per share data)
2013
2012
2011
Operating Revenue:
Passenger:
Mainline
$
26,534
$
25,173
$
23,843
Regional carriers
6,408
17. )
Amortization of debt discount, net
(154
)
(193
)
(193
)
Loss on extinguishment of debt
—
(118
)
(68
)
Miscellaneous, net
(21
)
(27
)
(44
)
Total other expense, net
(873
)
(1,150
)
(1,206
18. )
Income Before Income Taxes
2,527
1,025
769
Income Tax Benefit (Provision)
8,013
(16
)
85
20. $
1.19
$
1.01
Cash Dividends Declared Per Share
$
0.12
$
—
$
—
The accompanying notes are an integral part of these
Consolidated Financial Statements.
52
DELTA AIR LINES, INC.
Consolidated Statements of Comprehensive Income (Loss)
21. Year Ended December 31,
(in millions)
2013
2012
2011
Net Income
$
10,540
$
1,009
$
854
Other comprehensive income (loss):
22. Net gain (loss) on derivatives
482
211
(167
)
Net change in pension and other benefit liabilities (1)
2,965
(2,022
)
(3,021
)
Total Other Comprehensive Income (Loss)
3,447
(1,811
)
(3,188
)
Comprehensive Income (Loss)
$
13,987
$
(802
)
23. $
(2,334
)
(1)
Pension and other benefit liabilities were significantly impacted
by discount rates, see Note 11.
The accompanying notes are an integral part of these
Consolidated Financial Statements.
53
DELTA AIR LINES, INC.
Consolidated Statements of Cash Flows
Year Ended December 31,
(in millions)
2013
24. 2012
2011
Cash Flows From Operating Activities:
Net income
$
10,540
$
1,009
$
854
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
1,658
1,565
25. 1,523
Amortization of debt discount, net
154
193
193
Fuel hedge derivative contracts
(114
)
(209
)
135
Deferred income taxes
(7,991
)
17
(2
)
Pension, postretirement and postemployment expense less than
payments
(624
)
(208
)
26. (308
)
Restructuring and other items
285
184
142
SkyMiles used pursuant to advance purchase under American
Express Agreements
(333
)
(333
)
(49
)
Changes in certain assets and liabilities:
Receivables
90
(116
)
(76
27. )
Restricted cash and cash equivalents
231
(51
)
153
Fuel inventory
(87
)
(451
)
(8
)
Prepaid expenses and other current assets
28
(134
)
(8
)
Air traffic liability
426
216
174
28. Frequent flyer deferred revenue
(121
)
(115
)
82
Accounts payable and accrued liabilities
213
899
303
Other assets and liabilities
(36
)
(66
)
(373
)
Other, net
185
76
99
29. Net cash provided by operating activities
4,504
2,476
2,834
Cash Flows From Investing Activities:
Property and equipment additions:
Flight equipment, including advance payments
(2,117
)
(1,196
)
(907
)
Ground property and equipment, including technology
(451
)
(772
30. )
(347
)
Purchase of Virgin Atlantic shares
(360
)
—
—
Purchase of short-term investments
(959
)
(958
)
(1,078
)
Redemption of short-term investments
1,117
1,019
844
Other, net
14
(55
31. )
(10
)
Net cash used in investing activities
(2,756
)
(1,962
)
(1,498
)
Cash Flows From Financing Activities:
Payments on long-term debt and capital lease obligations
(1,461
)
(2,864
)
(4,172
)
Cash dividends
(102
)
—
—
32. Proceeds from long-term obligations
268
1,965
2,395
Repurchase of common stock
(250
)
—
—
Fuel card obligation
147
137
318
Other, net
78
7
(112
33. )
Net cash used in financing activities
(1,320
)
(755
)
(1,571
)
Net Increase (Decrease) in Cash and Cash Equivalents
428
(241
)
(235
)
Cash and cash equivalents at beginning of period
2,416
2,657
2,892
Cash and cash equivalents at end of period
$
2,844
$
2,416
34. $
2,657
Supplemental Disclosure of Cash Paid for Interest
$
698
$
834
$
925
Non-Cash Transactions:
Flight equipment under capital leases
$
67
$
28
35. $
117
Built-to-suit leased facilities
114
214
126
American Express advance purchase of restricted SkyMiles
285
—
—
The accompanying notes are an integral part of these
Consolidated Financial Statements.
54
DELTA AIR LINES, INC.
Consolidated Statements of Stockholders' Equity (Deficit)
46. (250
)
Balance at December 31, 2013
869
$
—
$
13,982
$
3,049
$
(5,130
)
18
$
(258
)
$
11,643
(1)
Weighted average price per share
The accompanying notes are an integral part of these
Consolidated Financial Statements.
47. 55
DELTA AIR LINES INC.
2013 Form 10-K
Excerpts
NOTE 11 . EMPLOYEE BENEFIT PLANS
We sponsor defined benefit and defined contribution pension
plans, healthcare plans and disability and survivorship plans for
eligible employees and retirees and their eligible family
members.
Defined Benefit Pension Plans. We sponsor defined benefit
48. pension plans for eligible employees and retirees. These plans
are closed to new entrants and frozen for future benefit
accruals. The Pension Protection Act of 2006 allows
commercial airlines to elect alternative funding rules
(“Alternative Funding Rules”) for defined benefit plans that are
frozen. Delta elected the Alternative Funding Rules under which
the unfunded liability for a frozen defined benefit plan may be
amortized over a fixed 17-year period and is calculated using an
8.85% discount rate. We estimate the funding under these plans
will total approximately $925 million in 2014, which includes
$250 million of contributions above the minimum funding
requirements.
Defined Contribution Pension Plans. Delta sponsors several
defined contribution plans. These plans generally cover
different employee groups and employer contributions vary by
plan. The cost associated with our defined contribution pension
plans is shown in the tables below.
Postretirement Healthcare Plans. We sponsor healthcare plans
that provide benefits to eligible retirees and their dependents
who are under age 65 . We have generally eliminated company-
paid post age 65 healthcare coverage, except for (1) subsidies
available to a limited group of retirees and their dependents and
(2) a group of retirees who retired prior to 1987. Benefits under
these plans are funded from current assets and employee
contributions. During 2012, we remeasured our postretirement
healthcare obligation to account for changes to retiree medical
benefits resulting from the final integration of wages and
benefits following our merger with Northwest Airlines and the
voluntary workforce reduction programs offered to eligible
employees. As a result, we recorded $116 million of special
termination benefits in restructuring and other items (see Note
16).
Postemployment Plans. We provide certain other welfare
benefits to eligible former or inactive employees after
employment but before retirement, primarily as part of the
disability and survivorship plans. Substantially all employees
49. are eligible for benefits under these plans in the event of death
and/or disability.
79
During 2013 , the net actuarial loss recorded in AOCI related to
our benefit plans decreased to $5.3 billion from $8.2 billion .
This decrease is primarily due to the increase in discount rates
from 2012 to 2013 .
Estimated amounts that will be amortized from AOCI into net
periodic benefit cost in 2014 are a net actuarial loss of $111
million . Amounts are generally amortized from AOCI over the
expected future lifetime of plan participants.
80