Delta Airlines 2002 Annual Report Download - page 107

Exhibit 13
Glossary of Defined Terms
ABO - ACCUMULATED BENEFIT OBLIGATION - The actuarial present value of benefits
(whether vested or nonvested) attributed by the pension benefit formula, under
Delta's defined benefit pension plans, to employee service rendered before a
specified date and based on employee service length and compensation levels
prior to that date. The accumulated benefit obligation differs from the
projected benefit obligation in that it includes no assumption about future
compensation levels.
APBO - ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATION - The actuarial present
value of benefits (other than pensions) attributed to employee service rendered
before a specified date under Delta's postretirement welfare benefit plans.
AIR TRAFFIC LIABILITY - A liability on Delta's Consolidated Balance Sheets that
represents amounts received for the sale of passenger tickets for which
services have not yet been provided. As the transportation service is provided
by Delta, the amount paid for the service is removed from air traffic liability
and is recognized as revenue.
ASM - AVAILABLE SEAT MILE - A measure of capacity which is calculated by
multiplying the total number of seats available for transporting passengers by
the total number of miles flown during a reporting period.
CARGO TON MILES - The total number of tons of cargo transported during a
reporting period, multiplied by the total number of miles cargo is flown.
CARGO TON MILE YIELD - The amount of cargo revenue earned per cargo ton mile
during a reporting period.
CASM - (OPERATING) COST PER AVAILABLE SEAT MILE - The amount of operating cost
incurred per available seat mile during a reporting period. Also referred to as
unit cost.
EETC - Enhanced equipment trust certificate. These certificates do not
represent obligations of Delta, but represent an undivided interest in a pass
through trust which has purchased equipment notes issued by Delta. The
equipment notes are full recourse obligations of Delta and are secured by
certain aircraft.
FUEL PRICE NEUTRALIZED CASM - The amount of operating cost incurred per
available seat mile during a reporting period, adjusting average fuel price per
gallon to equal the prior year.
NET DEBT-TO-CAPITAL RATIO - A measure of leverage which is calculated by
dividing net debt by total capitalization. Net debt includes short-term and
long-term debt, capital lease obligations and the present value of operating
lease obligations, reduced by cash and short-term investments. Capital includes
total debt and shareowners' equity, including Series B ESOP Convertible
Preferred Stock.
PASSENGER LOAD FACTOR - A measure of utilized available seating capacity, which
is calculated by dividing RPMs by ASMs for a reporting period.
PASSENGER MILE YIELD - The amount of passenger revenue earned per revenue
passenger mile during a reporting period.
PBO - PROJECTED BENEFIT OBLIGATION - The actuarial present value as of a date
of all benefits attributed by the pension benefit formula, under Delta's
defined benefit pension plans, to employee service rendered prior to that date.
The projected benefit obligation is measured using assumptions about future
compensation levels.
RASM - (OPERATING OR PASSENGER) REVENUE PER AVAILABLE SEAT MILE - The amount of
operating or passenger revenue earned per available seat mile during a
reporting period. Passenger RASM is also referred to as unit revenue.
RPM - REVENUE PASSENGER MILE - One revenue-paying passenger transported one
mile. RPMs are calculated by multiplying the number of revenue passengers by
the number of miles they are flown for the reporting period. Also referred to
as traffic.
SECTION 1110 - Section 1110 of the U.S. Bankruptcy Code enables a lessor or
secured creditor to a U.S. airline to repossess eligible equipment that secures
the lease or security interest 60 days after the airline files a petition for
bankruptcy protection, unless the airline cures the default and agrees to meet
its future obligations to the creditor under the lease or security agreement.
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