Delta Airlines 2003 Annual Report Download - page 128

Table of Contents
Note 16. Restructuring and Other Reserves
The following table shows changes in our restructuring and other reserve balances as of December 31, 2003, 2002 and 2001, and the associated activity for
the years then ended:
Restructuring and Other Charges
Severance and Related Costs
Leased Facilities 2002 Reduction 2001 Reduction
(in millions) Aircraft and Other Programs Programs
Balance at December 31, 2000 $ — $ 56 $ — $ —
Additional costs and expenses 71 24 — 91
Payments (1) (6) — (44)
Balance at December 31, 2001 70 74 — 47
Additional costs and expenses — 14 76 —
Payments (14) (9) (5) (35)
Adjustments (56) (14) — (9)
Balance at December 31, 2002 — 65 71 3
Additional costs and expenses — — — —
Payments — (9) (45) (2)
Adjustments — (9) (21) —
Balance at December 31, 2003 $ — $ 47 $ 5 $ 1
The leased aircraft reserve represented future lease payments under operating leases for nine B-737-300 aircraft previously removed from service prior to the
lease expiration date, less estimated sublease income. Due to changes in our fleet plan during the December 2002 quarter, we (1) reversed the remaining $56
million balance of this reserve and (2) returned these aircraft to service in 2003.
At December 31, 2003, the facilities and other reserve represents costs related primarily to (1) future lease payments for facilities closures and (2) contract
termination fees. During 2003, we recorded a $9 million adjustment to prior year reserves based on revised estimates of remaining costs primarily due to
changes in certain facility lease terms. During 2002, we recorded a $14 million adjustment to prior year reserves based on revised estimates of remaining
costs.
The severance and related costs reserve represents future payments associated with our 2002 and 2001 voluntary and involuntary workforce reduction
programs. At December 31, 2003, the remaining $5 million balance related to the 2002 workforce reduction programs represents severance and medical
benefits for employees who received severance or are participating in certain leave of absence programs. Approximately half of the remaining balance is for
international employees that will be paid in accordance with local country laws and regulations. At December 31, 2003, the remaining $1 million balance
related to the 2001 workforce reduction
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