Delta Airlines 2003 Annual Report Download - page 72

Table of Contents
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareowners' of Delta Air Lines, Inc.:
We have audited the accompanying consolidated balance sheets of Delta Air Lines, Inc. and subsidiaries (the "Company") as of December 31, 2003 and
2002, and the related consolidated statements of operations, cash flows and shareowners' (deficit) equity for the years then ended. These financial statements
are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. The
consolidated financial statements of the Company for the year ended December 31, 2001, before the revisions discussed below to Notes 5, 9, 16 and 21 to the
consolidated financial statements, were audited by other auditors who have ceased operations. Those auditors expressed an unqualified opinion on those
financial statements in their report dated January 23, 2002. Their report contained an explanatory paragraph related to the Company's change in its method of
accounting for derivative instruments and hedging activities effective July 1, 2000 as discussed in Note 4 to the consolidated financial statements.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such 2003 and 2002 consolidated financial statements present fairly, in all material respects, the financial position of the Company as of
December 31, 2003 and 2002, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally
accepted in the United States of America.
As discussed in Note 5 to the consolidated financial statements, effective January 1, 2002, the Company changed its method of accounting for goodwill
and other intangible assets to conform to Statement of Financial Accounting Standards No. 142 ("SFAS 142").
As discussed above, the consolidated financial statements of the Company for the year ended December 31, 2001, were audited by other auditors who have
ceased operations. These consolidated financial statements have been revised as follows:
• As described in Note 5, the Company adopted the provisions of SFAS 142 as of January 1, 2002. These consolidated financial statements have been
revised to include the disclosures required by SFAS 142. F-2