Delta Airlines 2003 Annual Report Download - page 117

Table of Contents
Prior to July 1, 2001, we matched 50% of employee contributions with a maximum employer contribution of 2% of a participant's covered pay for all
participants. Effective July 1, 2001, the Savings Plan was amended to provide all eligible Delta pilots with an employer contribution of 3% of their covered
pay to replace their former matching contribution. We make our contributions for non-pilots and pilots by allocating Series B ESOP Convertible Preferred
Stock (ESOP Preferred Stock), common stock or cash to the Savings Plan. Our contributions, which are recorded as salaries and related costs in our
Consolidated Statements of Operations, totaled $81 million, $85 million and $83 million for the years ended December 31, 2003, 2002 and 2001, respectively.
When we adopted the ESOP in 1989, we sold 6,944,450 shares of ESOP Preferred Stock to the Savings Plan for $500 million. We have recorded unearned
compensation equal to the value of the shares of ESOP Preferred Stock not yet allocated to participants' accounts. We reduce the unearned compensation as
shares of ESOP Preferred Stock are allocated to participants' accounts. Dividends on unallocated shares of ESOP Preferred Stock are used for debt service on
the Savings Plan's ESOP Notes and are not considered dividends for financial reporting purposes. Dividends on allocated shares of ESOP Preferred Stock are
credited to participants' accounts and are considered dividends for financial reporting purposes. Only allocated shares of ESOP Preferred Stock are considered
outstanding when we compute diluted earnings per share. At December 31, 2003, 3,817,884 shares of ESOP Preferred Stock were allocated to participants'
accounts, and 2,021,824 shares were held by the ESOP for future allocations. See Note 12 for information about changes to our ESOP Preferred Stock
dividend and redemption policies.
Other Plans
ASA, Comair and DAL Global Services, Inc., three of our wholly owned subsidiaries, sponsor defined contribution retirement plans for eligible employees.
These plans did not have a material impact on our Consolidated Financial Statements in 2003, 2002 and 2001.
Postemployment Benefits
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.
Postemployment benefit expense (income) was $131 million, $62 million and $(23) million for the years ended December 31, 2003, 2002 and 2001,
respectively. We include the amount funded in excess of the liability in other noncurrent assets on our Consolidated Balance Sheets. Future period expenses
will vary based on actual claims experience and the return on plan assets. Gains and losses occur because actual experience differs from assumed experience.
These gains and losses are amortized over the average future service period of employees. We also amortize differences in prior service costs resulting from
amendments affecting the benefits of retired and inactive employees.
F-46