Delta Airlines 2003 Annual Report Download - page 81

Table of Contents
While we believe we have made progress under this program, we must continue to reduce our costs to compete in the existing business environment. We have
also taken steps to preserve our liquidity through the deferral or reduction of capital expenditures related to our mainline aircraft deliveries in future years. At
the end of 2003, we began a reassessment of our operating and business strategy in order to assess our competitive effectiveness, determine the best use of our
available resources and identify strategic initiatives that we might pursue to improve our performance. We expect to complete this review by July 2004.
We expect to meet our obligations as they come due through available cash and cash equivalents, investments, internally generated funds and borrowings.
While new financing may be available to us, access to such financing cannot be assured given the existing business environment and the composition of our
currently available unencumbered assets. Failure to improve our operational performance and obtain new financing could have a material adverse effect on
our Consolidated Financial Statements.
Use of Estimates
We are required to make estimates and assumptions when preparing our Consolidated Financial Statements in accordance with GAAP. These estimates and
assumptions affect the amounts reported in our financial statements and the accompanying notes. Actual results could differ materially from those estimates.
New Accounting Standards
The Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 132 (revised 2003), "Employers'
Disclosures about Pensions and Other Postretirement Benefits, an amendment of FASB Statements No. 87, 88, and 106" (SFAS 132R) in December 2003.
SFAS 132R revises employers' disclosures about pension plans and other postretirement benefit plans by requiring additional disclosures about assets,
obligations, cash flows and net periodic benefit costs. SFAS 132R is effective for financial statements issued after December 15, 2003 and for interim periods
thereafter. See Note 11 for our disclosures required under SFAS 132R.
We adopted SFAS No. 143, "Accounting for Asset Retirement Obligations" (SFAS 143) on January 1, 2003. The adoption of SFAS 143 had no impact on our
Consolidated Financial Statements.
The FASB issued SFAS No. 149, "Amendment of Statement 133 on Derivative Instruments and Hedging Activities" (SFAS 149) in April 2003. This
statement amends and clarifies financial accounting and reporting for derivative instruments, including certain derivative instruments embedded in other
contracts and for hedging activities under SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" (SFAS 133). SFAS 149 is effective
for contracts entered into or modified after June 30, 2003, except in certain circumstances. The adoption of SFAS 149 had no impact on our Consolidated
Financial Statements.
The FASB issued SFAS No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity" (SFAS 150) in
May 2003. This statement
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