This document provides instructions for analyzing the SEC 10-K annual report of a publicly traded company as part of an assignment. Students are asked to select a company, research its most recent 10-K filing, and cut and paste key financial statements into a Word document. They will use this company for discussion posts to build the content for a final report analyzing the company's financial position and performance based on the 10-K. The report should comment on the financial statements and notes in relation to accounting concepts from class.
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Using the academic literature on leadership styles1.Briefly
1. Using the academic literature on leadership styles:
1.Briefly review the literature on leadership styles.
2.Identify the leadership style of VW’s senior management and
discuss its suitability for and contribution to the Dieselgate
scandal.
3.Given VW’s situation, what other style or styles of leadership
might have been appropriate and why?
(1100 words).
3. Learning and behaviour:
1.What have you personally learned about leadership from
studying the Dieselgate scandal?
2.How would this affect your future behaviour as a leader?
(500 words)
Shatia Dailey
Professor Anita Doherty
ACCT 221
April 6, 2021
Table of Contents
Amazon Background Slide 3
Stockholder’s Equity & Investments Slide 4
Income Statement & Balance Sheet Slide 5
Statement of Cash Flows Slide 6
Conclusion Slide 7
References Slide 8
2. Amazon Background
Amazon was founded by Jeff Bezos in 1994 from his garage
located in Seattle. He started out selling books which would
make it easy to deliver anywhere (Hall, 2020). When profits
reached $610 million in 1998, the company expanded to deliver
other items as well. In 2006, Jeff created Fulfillment by
Amazon which managed inventory for other businesses. So now
Amazon delivers all types of merchandise. Since the pandemic
hit in 2020, Bezos hired 175,000 employees to help the
increasing online sales. Jeff continues to look out for others
because he gave $100 million to a nonprofit organization, Feed
America (Forbes, 2021). Amazon always has the things
available to purchase no matter what it may be. Before going to
the store to shop, Amazon is always the first option. Now
Amazon is even more popular thanks to the new social media
platform TikTok. Whenever someone buys anything, it’s always
from Amazon. In addition to being ranked number 2 on the
Fortune 500 list, the revenue for 2020 is listed as $347,945 with
a profit of $17,377. There was a 20.5% change from the revenue
and a 15% change in profit last year.
Stockholder’s Equity & Investments
3. Amazon uses the par value. Par value represents legal capital of
a company (Principles of Accounting: Chapter 14, 2021).
Amazon does issue preferred stock but there is no outstanding
ending December 2020 or any past year. Preferred stock
benefits a stipulated dividend (Principles of Accounting:
Chapter 14, 2021). Amazon does hold treasury stock. The
treasury stock has stayed consistent starting from 2017.
Treasury stock is shares of that company which are reacquired
(Principles of Accounting: Chapter 14, 2021).
Over the years Amazon has been looking to invest in numerous
companies. Last year, Amazon made announcement pertaining
to more than half a dozen investments that would represent
billions of dollars (Feiner, 2019). Amazon is looking to
coordinate more delivery options and a possible new
headquarters. There are some most mentionable investments that
Amazon has made over the years. The headquarters for Amazon
located in Seattle, Washington but Bezos wanted to expand.
They searched for other locations such as Northern Virginia
which will hold the second headquarters and Nashville which
will be an operation center (Feiner, 2019). The reason behind
these investments is to increase the company’s profits
(Principles of Accounting: Chapter 9, 2021).
Income Statement & Balance Sheet
4. Between January 2021 and February 2021, it is expected to have
an adjustment that is related to investment equity from private
companies for about $1.5 billion. Income has been used to
support technology, fulfillment, and marketing. Under
marketing, advertising and promotional cost reached $8.2
billion in 2018, $11 billion in 2019, and $10.9 billion in 2020.
According to the notes listed for the balance sheet, Amazon has
entered a non-cancellable finance and operating lease for
equipment, offices, fulfillment, data centers, delivery, and all
stores. The sheet shows the contractual commitments and
support for operation.
Statement of Cash Flows
Amazon earns most of its cash through e-commerce sales. Since
they offer the same products as most retail shops, online sales
are up because of faster delivery times. Amazon is using its
cash to invest in other companies to grow sales, decrease
external risks, reduce costs, and invest in tech and
infrastructure (Disfold, 2020). The increase of operating income
has been due to unit sales which include third-party sellers and
advertising. The operating expenses has increased in shipping
cost which also believed to have a negative impact through
quarter one of 2021 (Amazon, 2021, SEC-10K). Amazon
typically invest any excess cash into money market funds and
income securities.
5. Conclusion
Throughout the weeks, we learned about a 10K financial
statement for a company. The statement gives information on
how a company’s situation can change through organizational
structure, company history, and the corporation. This report
covered all information about Amazon’s products and services.
When investors review a company’s 10K report, this will help
them make the best decision when investing into a company.
References:
Amazon. (2021). SEC-10K Report.
https://www.sec.gov/Archives/edgar/data/1018724/00010187242
1000004/0001018724-21-000004-index.htm
Disfold. (2020). How Amazon Makes and Uses its Billions
(profit, investments, acquisitions). https://disfold.com/how-
amazon-makes-uses-billions/
Feiner, L. (2019). Amazon is Spending Billions on Internet
Satellites, Self-Driving Cars and More as Revenue Growth
Slows. https://www.cnbc.com/2019/05/17/amazon-makes-
several-start-up-investments-revenue-growth-slows.html
Forbes. (2021). #1 Jeff Bezos.
https://www.forbes.com/profile/jeff-bezos/?sh=61377f261b23
Hall, M. (2020, April 9). Amazon.com. Encyclopedia
Britannica. https://www.britannica.com/topic/Amazoncom
Principles of Accounting. (2021). Chapter 9: Long-Term
Investments. https://www.principlesofaccounting.com/chapter-
9/intent-based-accounting/
Principles of Accounting. (2021). Chapter 14: Corporate Equity
Accounting. https://www.principlesofaccounting.com/chapter -
6. 14/
PowerPoint Presentation Requirements
You are also required to prepare a brief PowerPoint draft and
post it in Week 6 to Peer Review of SEC-10K Project: Post
Your Draft. The PowerPoint should be based upon your written
report and designed as if you were giving an oral presentation
of the main points in your paper.
1. The presentation must not exceed 6 slides, not including the
title/cover slide and references. The presentation should contain
a conclusion.
2. Once you have received feedback on your PowerPoint draft,
make appropriate revisions, and submit it under the SEC-10K
PowerPoint Presentation assignment folder.
Instructions
Overview
As an analyst for a large U.S. multinational corporation, you are
assigned to examine a possible acquisition candidate,
completing an initial search and review. Your supervisor is a
member of the Controller’s team. The Controller reports
directly to the Chief Financial Officer (CFO). Your work may
be presented to a variety of audiences, so professionalism is
essential in all deliverables you create. As the audience for your
report is diverse, you must explain all accounting/financial
terminology and concepts presented.
1. Select a company that is publicly traded. (DELTA
AIRLINES)
2. You must research and secure the SEC 10-K Annual Report
for the most recent year. This is often available at the company
web site. Search for “Investor Information” or “Company
7. Information” and “SEC Filing.”
3. You may also find the report using the SEC EDGAR system.
4. Save the file to your computer for access. There is no need to
print this file as the report is usually 100 pages or more.
5. Cut and paste the Income Statement, Balance Sheet and
Statement of Cash Flows into a Word Document. You will need
these for the SEC 10-K discussions as well as for your final
report. Please make sure you use the Statement of Operations
for your Income Statement and not the Statement of
Comprehensive Income. Your statements must be readable when
printed. If you need assistance, please let me knowh.
(ATTACHED BELOW)
6. Use this company in the Discussion postings throughout the
semester. The discussion questions will help you build content
for your report and presentation.
Report Requirements
Report Content
1. Post the name of your company in the SEC 10-K company for
your instructor’s approval in the SEC Project: Request a
Corporation to study (REQUIRED posting) during Week 1. All
parts of the discussion must be answered in your post.
2. Each student must select a different company, so read the
company names selected by classmates. Also, your selected
company must be ranked 500 or higher on the Fortune 500 list
of industrial companies. (DELTA AIRLINES)
3. Your report should comment on the financial statements for
your company as they relate to the information presented
through Week 2 for this class, including the notes to the
financial statements. The SEC 10K Discussions for weeks 1-3
will be used to write draft sections of your report. Your final
report must be based on these writings, which you will
update/revise based on feedback given.
Week 1 discussion:
Delta Airlines; NYSE: DAL
I would love to study Delta Airlines because I love flying with
them. Everywhere I go, I fly delta! Also, if I didn’t join the
8. Navy, I was going to become a flight attendant and my ultimate
goal was to become a flight attendant with Delta! This interest
in Delta makes me want to learn more about them and revenue.
Below is the link for the SEC-10K report:
https://www.sec.gov/ix?doc=/Archives/edgar/data/27904/00000
2790421000003/dal-20201231.htm
According to the Fortune 500, Delta Airlines is ranked number
68.
The financial statements are found on the pages below:
Income statement: PAGE 64
Balance sheet: PAGE 62
Statement of stockholder’s equity: PAGE 66
Statement of cash flows: PAGE 65
In 1925, Huff Daland Dusters became the predecessor
of Delta. His 18 planes became the leading privately-owned
fleet worldwide and also became the first commercial
agricultural flying company. Later on, Delta became the first
international mail and passenger route on the west coast of
South America for Pan Am subsidiary Peruvian Airways (Gay,
2019). In 1941 Delta headquarters moves from Monroe, La., to
Atlanta, Ga and in 1942 Delta provides to the war by modifying
1,000+ aircraft in efforts to help. Fast forward to 2001 Delta
felt a great financial impact for the first time in 6 years after the
2001 terrorist attack (Gay, 2019). Years later in 2010, Delta
announces largest product upgrade in a decade with plans to
invest more than $2 billion through 2013 to improve the overall
quality of the Delta experience, meaning customer service,
renovations on aircraft, and more!
In more recent events in 2017 Delta reported a company
record adjusted pre-tax income of $6.1 billion. Delta ranks No.
63 and is the only airline on Fortune's Best Companies To Work
For list, based on employee ratings of workplace culture (Gay,
2019). Also, in 2017, Delta invested 49% in Aeromexico, which
embarked on a historic transborder partnership.
Reference:
Gay, C. (2019, April 23). Delta's history: From dusting crops to
9. connecting the world. Retrieved February 17, 2021, from
https://news.delta.com/deltas-history-dusting-crops-connecting-
world#:~:text=1928: C.E. Woolman, the principal,3,
1928.&text=Company renamed Delta Air Corporation
To add on,
Delta airlines currently accommodate global corporation with
over 80, 000 employees in the airline industry. Notably, Delta
was created in 1928 with C. E Woolman's leadership with a
group of investors in Monroe Louisiana to by a crop-dusting
company that started in 1924 that helped in solving significant
problems faced by American farmers. Progressively, in 1929,
Delta Airlines started to operate the first passenger flights
which operated effectively in 1934 when the corporation won
airmail that led to cost-effective services for passengers in the
airline industries. N 1941 Delta headquarters moved to Atlanta
Georgia from the initial headquarter in Monroe Louisiana.
Noteworthy, the 1953 Chicago and Southern Airlines merger
presented Delta’s first international routes. In 1961 Delta
acclaimed significant awarding-winning by the National Safety
Award for flying 11 billion passengers without a fatality.
According to the financial crisis record, Delta suffered financial
losses forcing employee’s payroll deductions amounting to $30
million to purchase the first Boeing 767 for flight and
operational conveniences. The 1987 merging with Delta makes
it the fourth-largest US carrier and fifth lagers world carrier. In
the year 2000, Delta launched the Sky team as a fundamental
global alliance to accommodate international operation and
partnership needs (Georgia Historical Society, 2015). Thus, the
segment has provided notable articulation on Delta airline'
historical development.
Similarly, in the period between 1997and 2000 Delta was
generating net income between $815 and 1,196 million annually
(Geretz, 2017). Between 2000 and 2004 the travel demand was
generally low with Delta airlines accommodating operating
revenue of 13,866-$15,002. Noteworthy, Delta Airlines was
10. generating a positive economic income in 2010, acknowledging
significant debt reduction to $7,322 in 2016 from 15,525 in
2010. Accordingly, the DAL provides fundamental attention to
financial, economic, and route structure Hub strategies as
fundamental in historical documentation of the airline industries
for practical considerations.
FEEDBACK:
Thanks for the info on Delta. Another student selected JetBlue,
so it will be interesting to read about, and compare the two
companies. You have a lot of interesting facts in your
introduction. You may want to consider rearranging the material
so that you begin with what the company does, followed by a
brief history, and then some financial highlights. The financial
info should be at a high level, as your paper will be more in-
depth. When discussing past and present numbers, you should
use the same indicators (for example, compare revenue in past
years to current revenue, rather than net income to revenue) and
indicate the growth rate. Your Intro should be no more than two
short paragraphs, so you can pare this down a bit. Most students
find, as they are pulling together the final paper, that they need
more room for the body of the paper, as there are 3 pages
maximum.
Thank you for including in-text citations and your reference
list!
Week 2 discussion:
Dividends
Delta Airlines has usually pay dividends to its stockholders
every three months or four times every year excluding specials
dividends. The quarterly dividend payment for the company is
usually 35 cents per share. The dividend per share usually
increases from year to year. However, this year, due to the
COVID-19 pandemic the airlines experienced a dividend growth
rate of -73.30 percent thus stakeholders received $0.00
(Premkumar, 2020).
11. In 2018, Delta Airline’s total dividends were $1.31, the total
dividends jumped to $1.4 in 2019. In the first quarterly of
2020, the dividends were $0.4025. However, due to the reduced
travels due to COVID-19, the company paid $0.00 in the rest of
the quarterly to the stakeholders (Premkumar, 2020). The airline
is projected to take off in 2021 the planes starts to make their
trips to different destinations both national and the
international. However, this means that dividend payment will
not take place until maybe September 2021 at the earliest.
Long-term liabilities
Delta Air lines have long-term liabilities/debts amounting to
$19.41 billion as reported in the balance sheet released in July
15, 2020. The company also has a current debt of $6.07 billion
and thus combining the two shows that the airline has a total
debt amounting to $25.48 billion. The cash equivalent of the
company is $11.37 billion (Benzinga, 2020). Therefore,
subtracting it gives a net debt of $14.12 billion
The long-term liabilities for the company in 2020 was 34.8B
which was a 33.8 percent increase when compared to 2019. The
long-term liabilities were $9.771 in 2019. This was a 8.77
percentage increase when compared to long-term debt in 2018
(Benzinga, 2020). Lastly, the long-term liabilities for the
corporation in 2018 were $7.33B, a 7.834 percent increase when
compared to the long-term debts in 2017.
References
Benzinga. I (2020). A Look Into Delta Air Lines Debt.
https://finance.yahoo.com/news/look-delta-air-lines-debt-
131631364.html
Premkumar, D. (2020). Why Delta Shares Are Poised to Take
Off in 2021. Retrieved from:
https://www.nasdaq.com/articles/why-delta-shares-are-poised-
to-take-off-in-2021-2020-12-07
FEEDBACK:
Thanks for the info on Delta. This is a great start for your
paper. Please see below for some comments and suggestions:
Thank you for using topic headers. They will make your paper
12. more organized and easier to follow. (Just make sure they are in
APA format for your final paper.)
Please explain all of your financial terminology. For example,
what are dividends, long-term labilities, etc? Assume that your
reader is not familiar with these terms so that you can
demonstrate your understanding of the concepts.
Dividends - You have some relevant and interesting info in this
section, but it looks like there are some problems with the
numbers. For example, if dividends were $.35 per share, but
now they are $0, that would be a reduction of 100%. You also
indicate that the dividend is usually .35 per share, but in the
next paragraph, you list dividends for the previous years and
there is only one year where the dividends were .35 per share.
You state that dividends will not be paid until "maybe"
September 2021. What is the source of this information?
When discussing dividends, it would be helpful to include a
brief chart showing a history of the dividends over the past
several years so that the reader can visualize the changes.
Long-term liabilities - This section should relate only to long-
term liabilities and its components.
Explain what you mean by the "cash equivalent".
I am having a hard time following some of the number in this
section, as I am not seeing them on the attached balance sheet.
For 2020, I see a total of $54.5B for total non-current (long-
term) liabilities and $29B in 2019. This is a significant
increase, with most of the increase attributable to debt and
finance leases. This, and any other notable change, should be
researched further.
WEEK 3 DISCUSSION:
Cash Flow Analysis
Cash flow analysis is defined as the evaluation or analysis of
the different flow of cash to a business and the outflow of cash
from the business during a given period. Cash Flow Analysis is
usually divided into three segments, cash flow from operations,
cash flow from investments, and cash flow from financing. In
this discussion, I will conduct a cash flow analysis between
13. Delta Air Lines and American Air Lines, two of the biggest
airlines company in the United States for the year 2020.
Delta Airlines Inc.
From the Delta Air Lines annual cash flow statement, the cash
flow from operations was -$3.793 million which is the cash
flowing from the continuing operating activities. The cash flow
from operations is negative meaning that the business did not do
very well in 2020 (finance.yahoo.2020). The cash flow from
investment was -$9.238 million in the financial year 2019-2020
and this is all the cash flowing from all the continuing investing
activities for the company. The cash flow from financing
activities was $ 19.356 million in the financial year 2019-2020.
This was all the cash flow coming from the continuing finial
activities in the company. The financial
American Air Lines Inc.
Data from the American Airlines company for the financial year
2019-2020 showed that the company’s cash flow from
operations was -$6.543 million which is the total cash flow
from all the continuing operating activities in the business
(finance.yahoo.2020). The cash flow from the investment
activities was -$4.342 million from all the continuing investing
activities in the company. The cash flow from the financing
activities was $10.994 million for the same financial year.
From the two airline company’s annual cash flow statements for
the financial year 2019-2020, it is evident that both businesses
made huge losses. This can be attributed to the COVID-19
pandemic crisis that had a huge impact on the air transport
industry as many nations closed their borders to contain the
spread of the disease from early 2020. However, between the
two airline companies, Delta Air Lines did much better when
compared to American Airlines which suffered bigger losses in
2020.
References
(finance.yahoo.2020). Delta Air Lines, Inc. (DAL) Cash Flow -
Yahoo Finance. Retrieved from:
https://finance.yahoo.com/quote/DAL/cash-flow/
14. (finance.yahoo.2020). American Airlines Group, Inc. (AAL)
Cash Flow - Yahoo Finance. Retrieved from:
https://finance.yahoo.com/quote/AAL/cash-flow/
FEEDBACK:
Thanks for the info on Delta and American. Here are some
comments and feedback for your final paper:
Thank you for the introductory material regarding the cash fl ow
statement in general and introduction to your competitor
company. This sets the stage for the rest of your analysis.
In addition to explaining the cash flow statement in general, you
should also discuss each individual section and what it means. It
would be best to organize your paper around the 3 major
sections and discussing each company within these sections.
Your paper should contain some analysis in addition to stating
the numbers. This would include looking at trends from prior
years and examining how your company is receiving and using
cash both compared to prior years and to its competitor. Here
are some noteworthy items that should be explored further:
Operating activities - in addition to explaining the nature of
this section, you should discuss the indirect method, which both
companies use, as well as how net income and cash flow from
operating activities differ. Interesting items to note are that both
companies had net income in the two previous years, and net
losses in the current year. However, for both companies, the
cash used for operating activities is less than the loss (Delta’s
cash used for operating activities was actually significantly less
than it’s net loss). The reasons for this should also be discussed
as this helps to illustrate the need to have the cash flow
statement in addition to the other, accrual based statements.
Investing activities - there are some interesting trends to note
here. Both companies have decreased the amount of cash used
for purchasing property and capital equipment and increased the
use of cash to purchase investments and securities. This should
warrant some further research and discussion.
Financing activities – similar to investing, both companies have
also made changes in the current year for financing activities
15. when compared to the past 2 years. Both have increased their
net cash proceeds from issuing debt and reduced the amount of
cash used to repurchase stock an pay dividends.
Reviewing the notes and other narrative in the 10-K report may
provide more insight into these changes.
4. Do not consider managerial accounting material from Weeks
6 through 8 in your report.
5. The report must be submitted in Week 6.
Report Layout
1. Write a 2- to 3-page ( a full-page typically has at least 300
words) report, single-spaced, one-inch margins, 12-point font,
with a double space between paragraphs.
2. Please keep your report to no more than 3 pages.
3. Page count does not include a title page, tables and exhibits,
table of contents, and reference list.
4. Include a title page (include your name on the title page).
Use headings in your reports such as Statement of Owners’
Equity and Statement of Cash Flows (topics from the textbook);
other examples would be Balance Sheet and Income Statement.
5. Include a brief introduction of your company as well as a
conclusion/summary at the end. The bulk of your report should
cover the accounting topics in Weeks 1 and 2 (Owners’ Equity,
Financial Ratios, and Statement of Cash Flows) as well as the
Balance Sheet and Income Statement. ACCT 221 is not
identical to ACCT 220. Discussions continue through week 5.
6. You will also be required to include the Income Statement,
Balance Sheet, Statement of Owners’ Equity, and Statement of
Cash Flows as attachments to your report. (attached below)
7. You can cut and paste directly from the SEC 10-K Report.
These are considered attachments and are not part of the
required page count for the report.
8. APA style is required for citations and a reference list.
Include in-text citations. The reference list is the most
important.
9. Your report should use one-inch margins on the left, right,
top, and bottom of each page and font set at 12 points.
16. Resources
1. You main resources for your report should be the information
in the SEC 10-K reports, the online accounting
text www.principlesofaccounting.com, and the learning
resources provided in the classroom. You may use other
resources for your report, with the exception of Investopedia or
Wikipedia. However, the source for accounting terminology and
concepts must be the online textbook or the resources provided
in the classroom.
learning resources provided in the classroom:
https://openstax.org/books/principles-financial-
accounting/pages/14-why-it-matters
https://www.principlesofaccounting.com/chapter-14/
https://learn.umgc.edu/d2l/le/content/547011/viewContent/2135
9935/View
https://learn.umgc.edu/d2l/le/content/547011/viewContent/2135
9934/View
https://learn.umgc.edu/d2l/le/content/547011/viewContent/2135
9936/View
https://openstax.org/books/principles-financial-
accounting/pages/13-why-it-matters
https://www.principlesofaccounting.com/chapter-13/
https://learn.umgc.edu/d2l/le/content/547011/viewContent/2135
9939/View
https://learn.umgc.edu/d2l/le/content/547011/viewContent/2135
9938/View
https://learn.umgc.edu/d2l/le/content/547011/viewContent/2135
9937/View
https://openstax.org/books/principles-financial-
accounting/pages/11-why-it-matters
https://learn.umgc.edu/d2l/le/content/547011/viewContent/2135
9940/View
https://www.principlesofaccounting.com/long-term-assets/
https://openstax.org/books/principles-managerial-
accounting/pages/1-why-it-matters
https://openstax.org/books/principles-managerial-
18. 2019
ASSETS
Current Assets:
Cash and cash equivalents
$
8,307
$
2,882
Short-term investments
5,789
—
Accounts receivable, net of an allowance for uncollectible
accounts of $89 and $13 as of 2020 and 2019, respectively
1,396
2,854
Fuel inventory
377
19. 730
Expendable parts and supplies inventories, net of an allowance
for obsolescence of $188 and $82 as of 2020 and 2019,
respectively
355
521
Prepaid expenses and other
1,180
1,262
Total current assets
17,404
8,249
Noncurrent Assets:
Property and equipment, net of accumulated depreciation and
amortization of $17,511 and $17,027 as of 2020 and 2019,
respectively
26,529
20. 31,310
Operating lease right-of-use assets
5,733
5,627
Goodwill
9,753
9,781
Identifiable intangibles, net of accumulated amortization of
$883 and $873 as of 2020 and 2019, respectively
6,011
5,163
Cash restricted for airport construction
1,556
636
Equity investments
1,665
21. 2,568
Deferred income taxes, net
1,988
120
Other noncurrent assets
1,357
1,078
Total noncurrent assets
54,592
56,283
Total assets
$
71,996
$
64,532
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
22. Current maturities of debt and finance leases
$
1,732
$
2,287
Current maturities of operating leases
678
801
Air traffic liability
4,044
5,116
Accounts payable
2,840
3,266
Accrued salaries and related benefits
23. 2,086
3,701
Loyalty program deferred revenue
1,777
3,219
Fuel card obligation
1,100
736
Other accrued liabilities
1,670
1,078
Total current liabilities
15,927
20,204
Noncurrent Liabilities:
24. Debt and finance leases
27,425
8,873
Noncurrent air traffic liability
500
—
Pension, postretirement and related benefits
10,630
8,452
Loyalty program deferred revenue
5,405
3,509
Noncurrent operating leases
5,713
5,294
25. Deferred income taxes, net
—
1,456
Other noncurrent liabilities
4,862
1,386
Total noncurrent liabilities
54,535
28,970
Commitments and Contingencies
26. Stockholders' Equity:
Common stock at $0.0001 par value; 1,500,000,000 shares
authorized, 647,352,203 and 651,731,443 shares issued as of
2020 and 2019, respectively
—
—
Additional paid-in capital
11,259
11,129
Retained earnings/(deficit)
(428)
12,454
Accumulated other comprehensive loss
(9,038)
(7,989)
27. Treasury stock, at cost, 9,169,683 and 8,959,730 shares as of
2020 and 2019, respectively
(259)
(236)
Total stockholders' equity
1,534
15,358
Total liabilities and stockholders' equity
$
71,996
$
64,532
The accompanying notes are an integral part of these
Consolidated Financial Statements.
28. DELTA AIR LINES, INC.
Consolidated Statements of Comprehensive (Loss)/Income
Year Ended December 31,
(in millions)
2020
2019
2018
Net (Loss)/Income
$
(12,385)
31. DELTA AIR LINES, INC.
Consolidated Statements of Cash Flows
Year Ended December 31,
(in millions)
2020
32. 2019
2018
Cash Flows From Operating Activities:
Net (loss)/income
$
(12,385)
$
4,767
$
3,935
Adjustments to reconcile net income to net cash provided by
operating activities:
Restructuring charges
4,111
—
—
33. Depreciation and amortization
2,312
2,581
2,329
Deferred income taxes
(3,110)
1,473
1,364
Pension, postretirement and postemployment payments
less/(greater) than expense
898
(922)
(790)
Impairments and equity method losses
2,432
62
34. 60
Changes in certain assets and liabilities:
Receivables
1,168
(775)
108
Fuel inventory
354
(139)
324
Noncurrent assets
210
111
(221)
Air traffic liability
35. (572)
454
297
Loyalty program deferred revenue
455
87
319
Profit sharing
(1,650)
354
233
Other payables, deferred revenue and accrued liabilities
240
144
(418)
Noncurrent liabilities
37. Property and equipment additions:
Flight equipment, including advance payments
(896)
(3,344)
(3,704)
Ground property and equipment, including technology
(1,003)
(1,592)
(1,464)
Proceeds from sale-leaseback transactions
465
—
—
Purchase of equity investments
38. (2,099)
(170)
—
Sale of equity investments
—
279
28
Purchase of short-term investments
(13,400)
—
(145)
Redemption of short-term investments
7,608
206
766
Other, net
39. 87
58
126
Net cash used in investing activities
(9,238)
(4,563)
(4,393)
Cash Flows From Financing Activities:
Proceeds from short-term obligations
3,261
1,750
40. —
Proceeds from long-term obligations
22,790
2,057
3,745
Proceeds from sale-leaseback transactions
2,306
—
—
Payments on debt and finance lease obligations
(8,559)
(3,320)
(3,052)
Repurchase of common stock
(344)
(2,027)
42. (1,726)
Net Increase in Cash, Cash Equivalents and Restricted Cash
6,325
982
895
Cash, cash equivalents and restricted cash at beginning of
period
3,730
2,748
1,853
Cash, cash equivalents and restricted cash at end of period
$
10,055
$
3,730
43. $
2,748
Supplemental Disclosure of Cash Paid for Interest
$
761
$
481
$
376
Non-Cash Transactions:
Right-of-use assets acquired under operating leases
$
1,077
$
464
44. $
1,041
Flight and ground equipment acquired under finance leases
381
650
93
Operating leases converted to finance leases
45. DELTA AIR LINES, INC.
Consolidated Statements of Stockholders' Equity
46. Common Stock
Additional
Paid-In Capital
Retained
Earnings / (Deficit)
Accumulated
Other
Comprehensive Loss
Treasury Stock
(in millions, except per share data)
Shares
Amount
Shares
Amount
Total
Balance at January 1, 2018
715
$
—
$
12,053
$
8,256
$
(7,621)
7
