Delta Airlines 2003 Annual Report Download - page 49

Table of Contents
in cash and $211 million principal amount of unsecured new notes, net of a discount, due in 2008.
In February 2004, we issued $325 million principal amount of 2-7/8% Convertible Senior Notes due 2024. For additional information on this transaction,
see Note 22 of the Notes to the Consolidated Financial Statements.
Future Aircraft Order Commitments. To preserve liquidity, we have taken the following actions regarding our orders for mainline aircraft:
• In 2002, we deferred the delivery of 31 mainline aircraft. As a result of these deferrals, we had no mainline aircraft deliveries in 2003, and we have no
such deliveries scheduled for 2004.
• In October 2003, we entered into a definitive agreement to sell 11 B-737-800 aircraft to a third party immediately after those aircraft are delivered to us
by the manufacturer in 2005. We also granted the third party an option to purchase up to 10 additional B-737-800 aircraft scheduled for delivery to us in
2006.
• As of December 31, 2003, we had deferred delivery of one B-737-800 aircraft, and plan to exercise our right to defer delivery of an additional seven
B-737-800 aircraft, until 2008. These aircraft were originally scheduled for delivery in 2005.
• In February 2004, we announced our intention to seek to sell two B-777-200 aircraft scheduled for delivery in 2005. Additionally, we have agreed with
the manufacturer to defer the delivery of these aircraft from the first half of 2005 until the second half of 2005. We also disclosed our intention either to
acquire other Boeing aircraft in place of three B-777-200 aircraft scheduled for delivery in 2006 or to attempt to sell these three aircraft.
On February 27, 2004, we entered into an agreement to purchase 32 CRJ-200 aircraft to be delivered in 2005. In conjunction with this agreement, we
entered into a facility with a third party to finance, on a secured basis at the time of acquisition, the future deliveries of these regional jet aircraft. Borrowings
under this facility (1) will be due in installments for 15 years after the date of borrowing and (2) bear interest at LIBOR plus a margin.
For additional information about our aircraft order commitments, see Note 9 of the Notes to the Consolidated Financial Statements.
Shareowners' (Deficit) Equity. Shareowners' (deficit) equity was $(659) million at December 31, 2003 and $893 million at December 31, 2002. The
decrease in our shareowners' (deficit) equity is primarily due to our $773 million net loss in 2003 and the $786 million, net of tax, non-cash adjustment to our
additional minimum pension liability recorded during 2003. For further information about our additional minimum pension liability, see Note 11 of the Notes
to the Consolidated Financial Statements.
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