Delta Airlines 2004 Annual Report Download - page 114

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Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 19. Valuation and Qualifying Accounts
The following table shows our valuation and qualifying accounts as of December 31, 2004, 2003 and 2002, and the associated activity for the years then
ended:
Allowance for:
Obsolescence
of Expendable
Restructuring Uncollectible Parts &
Leased and Other Accounts Supplies Deferred Tax
(in millions) Aircraft(1) Charges(1) Receivable(2) Inventory(3) Assets
Balance at December 31, 2001 $ 70 $ 121 $ 43 $ 139 $ 16
Additional costs and expenses — 90 21 51 —
Payments and deductions (70) (72) (31) (7) —
Balance at December 31, 2002 — 139 33 183 16
Additional costs and expenses — — 34 11 9
Payments and deductions — (86) (29) (11) —
Balance at December 31, 2003 — 53 38 183 25
Additional costs and expenses — 42 32 15 2,508(4)
Payments and deductions — (15) (32) (14) (133)
Balance at December 31, 2004 $ — $ 80 $ 38 $ 184 $ 2,400
(1) See Notes 14 and 15 for additional information related to leased aircraft and restructuring and other charges.
(2) The payments and deductions related to the allowance for uncollectible accounts receivable represent the write-off of accounts considered to be
uncollectible, less recoveries.
(3) These additional costs and expenses in 2002 include the charges related to the writedown of certain aircraft spare parts inventory to their net realizable
value (see Note 14).
(4) Approximately $30 million of this amount was recorded in accumulated other comprehensive loss on our 2004 Consolidated Balance Sheet (see Note 12).
Note 20. Subsequent Events
On March 4, 2005, we exchanged $176 million principal amount of enhanced equipment trust certificates due in November 2005 ("Exchanged
Certificates") for a like aggregate principal amount of enhanced equipment trust certificates due in September 2006 and January 2008 ("Replacement
Certificates"). The interest rate on the Exchanged and Replacement Certificates is 9.11%.
Due to the completion of this transaction, the $176 million principal amount of debt maturities is recorded in the tables in Note 6 in accordance with the
maturity dates of the Replacement Certificates.
Note 21. Quarterly Financial Data (Unaudited)
The following table summarizes our unaudited quarterly results of operations for 2004 and 2003:
Three Months Ended
2004
(in millions, except per share data) March 31 June 30 September 30 December 31
Operating revenues $ 3,529 $ 3,961 $ 3,871 $ 3,641
Operating loss $ (388) $ (241) $ (423) $ (2,256)
Net loss $ (383) $ (1,963) $ (646) $ (2,206)
Basic loss per share $ (3.12) $ (15.79) $ (5.16) $ (16.58)
Diluted loss per share $ (3.12) $ (15.79) $ (5.16) $ (16.58)
F-57