Delta Airlines 2003 Annual Report Download - page 133

Table of Contents
Note 21. Valuation and Qualifying Accounts
The following table shows our valuation and qualifying accounts as of December 31, 2003, 2002 and 2001, and the associated activity for the years then
ended:
Allowance for:
Obsolescence
Restructuring Uncollectible of Expendable
Leased and Other Accounts Parts & Supplies
(in millions) Aircraft(1) Charges(1) Receivable(2) Inventory(3)
Balance at December 31, 2000 $ — $ 56 $ 31 $ 124
Additional costs and expenses 71 115 18 38
Payments and deductions (1) (50) (6) (23)
Balance at December 31, 2001 70 121 43 139
Additional costs and expenses — 90 21 51
Payments and deductions (70) (72) (31) (7)
Balance at December 31, 2002 — 139 33 183
Additional costs and expenses — — 34 11
Payments and deductions — (86) (29) (11)
Balance at December 31, 2003 $ — $ 53 $ 38 $ 183
(1)
See Note 16 for additional information related to leased aircraft and restructuring and other charges.
(2)
The payments and deductions related to the allowance for uncollectible accounts receivable represent the write-off of accounts considered to be
uncollectible, less recoveries.
(3)
These additional costs and expenses in 2001 and 2002 include the charges related to the writedown of certain aircraft spare parts inventory to their net
realizable value (see Note 15).
Note 22. Subsequent Events
Convertible Senior Notes (2-7/8% Notes)
In February 2004, we issued $325 million principal amount of 2-7/8% Notes due 2024. Holders may convert their 2-7/8% Notes into shares of our common
stock at a conversion rate of 73.6106 shares of common stock per $1,000 principal amount of 2-7/8% Notes, subject to adjustment in certain circumstances,
which is equivalent to a conversion price of approximately $13.59 per share of common stock, if:
• during any calendar quarter after March 31, 2004, the last reported sale price of our common stock for at least 20 trading days during the period of
30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the
conversion price per share of our common stock;
• the trading price of the 2-7/8% Notes falls below a specified threshold;
• we call the 2-7/8% Notes for redemption; or
• specified corporate transactions occur. F-62