Delta Airlines 2003 Annual Report Download - page 131

Table of Contents
shares issuable upon conversion of our 8.00% Notes due 2023 since the contingent conditions for conversion have not been met (see Note 6).
Note 19. Government Compensation and Reimbursements
Appropriations Act Reimbursements
On April 16, 2003, President Bush signed into law the Emergency Wartime Supplemental Appropriations Act (Appropriations Act), which provides for,
among other things:
• Payments for Certain Security Fees. Payments totaling $2.3 billion from the U.S. government to U.S. air carriers for the reimbursement of certain
passenger and air carrier security fees.
• Executive Compensation Limits. A requirement that certain airlines which receive the security fee payments described above enter into a contract with
the Transportation Security Administration (TSA) agreeing that the air carrier will not provide total cash compensation (as defined in the
Appropriations Act) during the 12-month period beginning April 1, 2003 to certain executive officers during its fiscal year 2002 in an amount greater
than the annual salary paid to that officer with respect to the air carrier's fiscal year 2002. If it violates this agreement, the air carrier is required to repay
its security fee payments described above. We are subject to this requirement and have entered into the required contract with the TSA.
• Compensation for Strengthening Flight Deck Doors. Payments totaling $100 million from the U.S. government to compensate air carriers for the direct
costs associated with the strengthening of flight deck doors and locks on aircraft.
• Suspension of Passenger and Air Carrier Security Fees. The suspension of the TSA's collection of passenger and air carrier security fees during the
period beginning June 1, 2003 and ending September 30, 2003.
• Insurance. An extension for one year until August 2004, with a possible extension to December 31, 2004 at the discretion of the Secretary of
Transportation, of the U.S. government's obligation to sell war-risk insurance to air carriers.
During 2003, we received payments under the Appropriations Act totaling (1) $398 million as reimbursement for passenger and air carrier security fees,
which was recorded as a reduction of operating expenses in our 2003 Consolidated Statement of Operations and (2) $13 million related to the strengthening of
flight deck doors, which was recorded as a reduction to previously capitalized costs.
Stabilization Act Compensation
On September 22, 2001, the Air Transportation Safety and System Stabilization Act (Stabilization Act) became effective. The Stabilization Act was intended
to preserve the viability of the U.S. air transportation system following the terrorist attacks on September 11, 2001 by, among other things, (1) providing for
payments from the U.S. Government totaling $5 billion to compensate U.S. air carriers for losses incurred from September 11, 2001 through December 31,
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