Delta Airlines 2003 Annual Report Download - page 53

Table of Contents
Contractual Payments Due By Period
After
(in millions) Total 2004 2005 2006 2007 2008 2008
Debt(1) $ 12,462 $ 1,002 $ 1,164 $ 781 $ 463 $ 1,272 $ 7,780
Operating lease payments(2) 11,854 1,271 1,237 1,173 1,112 1,147 5,914
Aircraft order commitments(3) 4,014 675 1,171 1,285 840 43 —
Capital lease obligations(4) 129 29 22 18 15 13 32
Interest and related payments(5) 7,392 725 671 597 559 523 4,317
Other purchase obligations(6) 318 280 19 14 4 — 1
Other liabilities(7) 56 56 — — — — —
Total $ 36,225 $ 4,038 $ 4,284 $ 3,868 $ 2,993 $ 2,998 $ 18,044
(1)
These amounts are included on our Consolidated Balance Sheets. A portion of this debt is backed by letters of credit totaling $300 million at
December 31, 2003. For additional information about our debt and related matters, see Note 6 of the Notes to the Consolidated Financial Statements.
(2)
Our operating lease obligations are described in Note 7 of the Notes to the Consolidated Financial Statements. A portion of these obligations is backed
by letters of credit totaling $104 million at December 31, 2003. For additional information about these letters of credit, see Note 6 of the Notes to the
Consolidated Financial Statements.
(3)
Includes capital expenditures related to our purchase of seven B-737-800 aircraft in 2005. We intend to exercise our right to defer the delivery of these
aircraft to 2008. This action will defer the related capital expenditures from 2004 and 2005 to later years. Accordingly, the aircraft capital expenditure
amount in the Business Environment section of Management's Discussion and Analysis in this Form 10-K does not include any amount in 2004 related
to our purchase of these seven aircraft.
Includes capital expenditures to purchase from the manufacturer 11 B-737-800 aircraft for which we have entered into a definitive agreement to sell to a
third party immediately following delivery of those aircraft to us in 2005. For additional information about our intention to exercise our right to defer
the delivery of seven B-737-800 aircraft from 2005 to 2008, and our definitive agreement to sell 11 B-737-800 aircraft immediately after those aircraft
are delivered to us by the manufacturer in 2005, see Note 9 of the Notes to the Consolidated Financial Statements.
(4)
Interest payments related to capital lease obligations are included in the table. The present value of these obligations, excluding interest, is included on
our Consolidated Balance Sheets. For additional information about our capital lease obligations, see Note 7 of the Notes to the Consolidated Financial
Statements.
(5)
These amounts represent future interest payments related to our debt obligations based on the fixed and variable interest rates specified in the associated
debt agreements. Payments in early 2004 related to variable rate debt are based on the specified margin and the base rate, such as LIBOR, in effect at
December 31, 2003. The base rates typically reset every one to six months depending on the debt agreement. Payments in late 2004 and other years for
variable rate debt do not consider any amount for the base rate component of the interest calculation since the rate is unknown at December 31, 2003;
these payments were calculated based only on the specified margin. At December 31, 2003, by way of context, the base rate component of the interest
calculation on our $4.2 billion of variable rate debt is approximately 1%. The related payments represent credit enhancements required in conjunction
with certain debt agreements.
(6)
Includes purchase obligations pursuant to which we are required to make minimum payments for goods and services. For additional information about
other commitments and contingencies, see Note 9 of the Notes to the Consolidated Financial Statements.
(7)
Represents other liabilities on our Consolidated Balance Sheets for which we are obligated to make future payments primarily related to postretirement
medical benefit costs incurred but not yet paid and payments required under certain collective bargaining agreements for unused vacation time. These
liabilities are not included in any other line item on this table.
The table above does not include amounts related to our future funding obligations under our defined benefit pension plans. Estimates of the amount and
timing of these future funding obligations are based on various assumptions. These include assumptions concerning, among other things, the actual and
projected market performance of the plan assets, 30-year U.S. Treasury bond yields, statutory requirements and demographic data for pension plan
participants. The amount and timing of our future funding obligations also depend on whether we elect to make contributions to the pension plans in excess of
those required under ERISA; such voluntary contributions may reduce or defer the funding obligations we would have absent those contributions.
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