Delta Airlines 2003 Annual Report Download - page 83

Table of Contents
During 2002, we adopted the following accounting standards:
• SFAS No. 142, "Goodwill and Other Intangible Assets" (SFAS 142) (see our goodwill and other intangible assets policy and related information in this
Note and in Note 5, respectively);
• SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" (SFAS 144) (see our long-lived assets policy in this Note);
• SFAS No. 145, "Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections" (SFAS 145). In
accordance with SFAS 145, we recorded losses of $15 million and $42 million on the extinguishment of Employee Stock Ownership Plan (ESOP) Notes in
other income (expense) on our 2003 and 2002 Consolidated Statements of Operations, respectively. In addition, during 2003, we recorded a $15 million
gain on the extinguishment of debt as a result of our debt exchange offer in other income (expense) on our Consolidated Statement of Operations (see Note
6 for additional information);
• SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities" (SFAS 146). The adoption of SFAS 146 will impact the timing of the
recognition of liabilities related to future exit or disposal activities;
• SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure - an Amendment to FASB Statement No. 123" (SFAS 148) (see
our stock-based compensation policy in this Note); and
• FIN 45, "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others" (FIN 45) (see
Note 9 for our disclosures required under FIN 45).
Cash and Cash Equivalents
We classify short-term, highly liquid investments with original maturities of three months or less as cash and cash equivalents. These investments are
recorded at cost, which we believe approximates fair value.
Under our cash management system, we utilize controlled disbursement accounts that are funded daily. Payments issued by us, which have not been presented
for payment, are recorded in accounts payable, deferred credits and other accrued liabilities on our Consolidated Balance Sheets. These amounts totaled $129
million and $154 million at December 31, 2003 and 2002, respectively.
Restricted Assets
We have restricted cash which primarily relates to cash held as collateral to support certain projected insurance obligations. Restricted cash included in current
assets on our Consolidated Balance Sheets totaled $207 million and $134 million at December 31, 2003 and 2002, respectively. We also have $28 million of
restricted cash recorded in other noncurrent assets on our Consolidated Balance Sheet at December 31, 2003 related to the planned sale of 11 B-737-800
aircraft in 2005. See Note 9 for additional information about this planned sale.
We have restricted investments for the redevelopment and expansion of Terminal A at Boston's Logan International Airport (see Note 6 for additional
information about this project). Our restricted investments included in other assets on our Consolidated Balance Sheets totaled $286 million and $417 million
at December 31, 2003 and 2002, respectively.
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