Delta Airlines 2002 Annual Report Download - page 123

2000
Cash, cash equivalents and short-term investments totaled $1.6 billion at
December 31, 2000. Net cash provided by operations totaled $2.9 billion during
2000. Capital expenditures were $4.1 billion during 2000 and included the
acquisition of 24 B-737-800, 12 B-757-200, seven B-767-300ER, 12 B-767-400, 11
CRJ-200, 19 CRJ-100 and seven ATR-72 aircraft. We also paid $232 million to
complete our acquisition of Comair Holdings, Inc. Debt and capital lease
obligations, including current maturities and short-term obligations, totaled
$6.0 billion at December 31, 2000. Of this amount, $1.9 billion of long-term
debt was issued during the year (including $1.5 billion of secured debt).
Financial Position
DECEMBER 31, 2002 COMPARED TO DECEMBER 31, 2001
This section discusses certain changes in our Consolidated Balance Sheets which
are not otherwise discussed in this Annual Report.
Prepaid expenses and other current assets increased by 23%, or $66 million,
primarily due to our recognition of an intangible asset in connection with the
recording of an additional minimum pension liability and an increase in prepaid
aircraft rent. Investments in debt and equity securities decreased 66%, or $63
million, primarily due to the partial exercise of our price-line warrants and
the sale of a portion of the related shares, as well as a decrease in fair value
of our equity securities. Restricted investments for the Boston airport terminal
project decreased 12%, or $58 million, due to the capitalization of project
expenditures and interest paid. Other noncurrent assets increased 47%, or $472
million, due to an increase in our deferred tax assets and our recognition of an
intangible asset in connection with the recording of an additional minimum
pension liability.
Taxes payable decreased 18%, or $187 million, primarily due to a decrease in
ticket, transportation and airport taxes payable for which payment was deferred
under the Stabilization Act until January 2002. Accrued salaries and benefits
increased 22%, or $244 million, primarily due to an increase in the number of
retired employees and employees on leave and severance programs.
Pension and related benefits increased $2.9 billion, primarily due to an
additional minimum pension liability recorded at December 31, 2002. For
additional information on our employee benefit plans, see Note 11 of the Notes
to the Consolidated Financial Statements.
CONTRACTUAL OBLIGATIONS
The following table provides a summary of our debt obligations, capital lease
obligations, operating lease payments, estimated future expenditures for
aircraft and engines and certain other material purchase obligations as of
December 31, 2002. This table excludes other obligations that we may have, such
as pension obligations (discussed in Note 11 of the Notes to the Consolidated
Financial Statements). The table also excludes information about our obligations
related to our contract carrier agreements (discussed below) due to the fact
that costs beyond 2003 are not reasonably estimable at this time.
Contractual Payments Due by Period
----------------------------------------------------------------------------------
(in millions) Total 2003 2004 2005 2006 2007 After 2007
------- ------ ------ ------ ------ ------ ----------
Debt(1) $10,740 $ 666 $ 623 $1,203 $ 602 $ 285 $ 7,361
Capital Lease Obligations(2) 172 40 31 24 16 15 46
Operating Lease Payments(3) 12,744 1,277 1,203 1,176 1,128 1,042 6,918
Estimated Future Expenditures
for Aircraft and Engines(4) 5,027 1,024 672 1,191 1,281 859 --
Other Purchase Obligations 66 33 33 -- -- -- --
------- ------ ------ ------ ------ ------ ---------
Total $28,749 $3,040 $2,562 $3,594 $3,027 $2,201 $14,325
======= ====== ====== ====== ====== ====== =========
(1) These amounts are included on our Consolidated Balance Sheets. A
portion of this debt is backed by letters of credit totaling $305
million at December 31, 2002, which expire on June 8, 2003. See Note 6
of the Notes to the Consolidated Financial Statements for additional
information about our debt and related matters.
(2) The present value of these obligations, excluding interest, is included
on our Consolidated Balance Sheets. See Note 7 of the Notes to the
Consolidated Financial Statements for additional information about our
capital lease obligations.
(3) Our operating lease obligations are described in Note 7 of the Notes to
the Consolidated Financial Statements. A portion of these obligations
is backed by letters of credit totaling $104 million at December 31,
2002, which expire on June 8, 2003. See Note 6 of the Notes to the
Consolidated Financial Statements for additional information about