Delta Airlines 2003 Annual Report Download - page 96

Table of Contents
fair value hedge accounting, the carrying value of our long-term debt at December 31, 2003 and 2002 included $8 million and $21 million, respectively, of
fair value adjustments. See Note 1 for information about our accounting policy for interest rate swap agreements.
Equity Warrants and Other Similar Rights
We own equity warrants and other similar rights in certain companies, primarily priceline and Republic. The total fair value of these rights was $30 million
and $14 million at December 31, 2003 and 2002, respectively. See Notes 1 and 2 for information about our accounting policy for and ownership of these
rights, respectively.
Note 5. Goodwill and Intangible Assets
On January 1, 2002, we adopted SFAS 142, which requires that we discontinue the amortization of goodwill and other intangible assets with indefinite useful
lives. Accordingly, we now apply a fair value-based impairment test to the net book value of goodwill and indefinite-lived intangible assets. See Note 1 for
information about our accounting policy for the impairment tests of goodwill and other intangible assets.
The adoption of SFAS 142 decreased our operating expenses on our Consolidated Statements of Operations by approximately $60 million, net of tax, for each
of the years ended December 31, 2003 and 2002, due to the discontinuance of amortization of goodwill and indefinite-lived intangible assets. During the June
2002 quarter, we completed our transitional goodwill impairment test, which indicated no impairment at the date of adoption of SFAS 142.
The following table reconciles our reported net loss and loss per share to adjusted net loss and loss per share as if the non-amortization provisions of SFAS
142 had been applied to the year ended December 31, 2001:
For the Years Ended
December 31,
(in millions, except per share data) 2003 2002 2001
Net loss $ (773) $ (1,272) $ (1,216)
Add back: goodwill and international route amortization, net of tax — — 60
Adjusted net loss $ (773) $ (1,272) $ (1,156)
Basic and diluted earnings per share:
Net loss $ (6.40) $ (10.44) $ (9.99)
Add back: goodwill and international route amortization, net of tax — — 0.49
Adjusted net loss $ (6.40) $ (10.44) $ (9.50)
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