Delta Airlines 2002 Annual Report Download - page 176

Independent's Auditors' Report
To the Board of Directors and Shareowners' of Delta Air Lines, Inc.:
We have audited the accompanying consolidated balance sheet of Delta Air Lines,
Inc. (a Delaware corporation) and subsidiaries (the "Company) as of December 31,
2002, and the related consolidated statements of operations, cash flows and
shareowners' equity for the year then ended. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit. The consolidated
financial statements of Delta Air Lines, Inc. as of December 31, 2001, and for
each of the two years in the period ended December 31, 2001, before the
revisions discussed below to Notes 5, 9, 17 and 21 to the consolidated financial
statements, were audited by other auditors who have ceased operations. Those
auditors expressed an unqualified opinion on those financial statements in their
report dated January 23, 2002. Their report contained an explanatory paragraph
related to the Company's change in its method of accounting for derivative
instruments and hedging activities effective July 1, 2000 as discussed in Note 4
to the consolidated financial statements.
We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, such 2002 consolidated financial statements present fairly, in
all material respects, the financial position of the Company as of December 31,
2002 and the results of its operations and its cash flows for the year then
ended in conformity with accounting principles generally accepted in the United
States of America.
As discussed in Note 5 to the consolidated financial statements, effective
January 1, 2002, the Company changed its method of accounting for goodwill and
other intangible assets to conform to Statement of Financial Accounting
Standards No. 142 ("SFAS 142").
As discussed above, the financial statements of the Company as of December 31,
2001, and for each of the two years in the period ended December 31, 2001, were
audited by other auditors who have ceased operations. These consolidated
financial statements have been revised as follows:
- As described in Note 5, the Company adopted the provisions of SFAS 142
as of January 1, 2002. These consolidated financial statements have
been revised to include the disclosures required by SFAS 142.
- In Note 9, the Company has disclosed the amount of expenses incurred
related to contract carrier agreements. These consolidated financial
statements have been revised to include such disclosures for 2001 and
2000.
- In Note 17, the Company has disclosed the amounts of the additional
costs and expenses and payments related to restructuring and other
reserves for leased aircraft and facilities and other items. These
consolidated financial statements have been revised to include such
disclosures for 2001 and 2000.
- In Note 21, the Company has disclosed the amounts of additional costs
and expenses and deductions related to the allowance for obsolescence
of expendable parts and supplies inventories. These consolidated
financial statements have been revised to include such disclosures for
2001 and 2000.
We audited the disclosures in Notes 5, 9, 17 and 21 that were included to revise
the 2001 and 2000 consolidated financial statements. In our opinion, such
disclosures are appropriate. However, we were not engaged to audit, review, or
apply any procedures to the 2001 and 2000 consolidated financial statements of
the Company other than with respect to such disclosures and, accordingly, we do
not express an opinion or any other form of assurance on the 2001 and 2000
consolidated financial statements taken as a whole.
/s/ Deloitte & Touche LLP
Atlanta, Georgia
January 31, 2003