Delta Airlines 2003 Annual Report Download - page 48

Table of Contents
• Miscellaneous income, net was $1 million in 2002 compared to a $47 million miscellaneous expense, net in 2001 due primarily to increased earnings
from our equity investment in Worldspan in 2002.
Financial Condition and Liquidity
Sources and Uses of Cash—2003. Cash and cash equivalents totaled $2.7 billion at December 31, 2003, compared to $2.0 billion at December 31, 2002.
For 2003, net cash provided by operating activities totaled $453 million, which includes the following items:
• Net tax refunds totaling $402 million.
• Our net loss of $773 million.
• Our $76 million payment to fund a defined benefit pension plan.
• A $102 million increase in total restricted cash, primarily to support certain projected insurance obligations. For additional information about our
restricted cash, see Note 1 of the Notes to the Consolidated Financial Statements.
During 2003, capital expenditures were $1.5 billion, which included the acquisition of 31 CRJ-200 and 20 CRJ-700 aircraft. Of these regional jet aircraft,
43 were acquired through seller financing arrangements for $718 million.
On June 30, 2003, we sold our 40% equity investment in Worldspan. In consideration for this sale, we received (1) $285 million in cash and (2) a $45
million subordinated promissory note, which bears interest at 10% per annum and matures in 2012. We will also receive credits totaling approximately $125
million, which will be recognized ratably as a reduction of costs through 2012, for future Worldspan-provided services. At December 31, 2003, the carrying
and fair value of the subordinated promissory note was $38 million. For additional information about the sale of our equity investment in Worldspan, see Note
17 of the Notes to the Consolidated Financial Statements.
Debt and capital lease obligations, including current maturities and short-term obligations, totaled $12.6 billion at December 31, 2003, compared to
$10.9 billion at December 31, 2002. During 2003, we engaged in the following financing transactions (for additional information about these transactions, see
Note 6 of the Notes to the Consolidated Financial Statements):
• We issued $1.9 billion principal amount of debt under secured financing arrangements, due in installments through 2021.
• We issued $350 million principal amount of 8% Convertible Senior Notes due 2023.
• General Electric Capital Corporation ("GECC") issued $404 million of irrevocable, direct-pay letters of credit to support our obligations related to
$397 million principal amount of outstanding municipal bonds. This transaction replaced letters of credit issued by a third party that were due to expire
in June 2003.
• We completed a debt exchange offer in which $262 million principal amount of previously outstanding unsecured notes due in 2004 and 2005 were
exchanged for a total of $47 million 41