Delta Airlines 2004 Annual Report Download - page 115

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Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Three Months Ended
2003
(in millions, except per share data) March 31 June 30(3) September 30 December 31
Operating revenues $ 3,324 $ 3,496 $ 3,657 $ 3,610
Operating income (loss) $ (535) $ 196 $ (81) $ (365)
Net income (loss) $ (466) $ 184 $ (164) $ (327)
Basic income (loss) per share(1) $ (3.81) $ 1.46 $ (1.36) $ (2.69)
Diluted earnings (loss) per share(1) $ (3.81) $ 1.37 $ (1.36) $ (2.69)
(1) The sum of the quarterly earnings (loss) per share does not equal the annual loss per share due to changes in average shares outstanding.
(2) Diluted earnings per share for the June 2003 quarter reflects the changes from the adoption of EITF 04-08 (see Note 17 for additional information about
this guidance as well as the change in the earnings per share calculation). Due to the adoption of EITF 04-08, our diluted earnings per share decreased by
$0.03 per share during that quarter.
The comparability of our financial results during 2004 and 2003 was materially impacted by certain events, as discussed below:
• During 2004, primarily in the June 2004 quarter, we recorded a valuation allowance against substantially all of our net deferred tax assets.
See Note 9 for additional information about this charge.
• In December 2004, we recorded impairment charges related to goodwill and indefinite-lived intangible assets. See Note 5 for additional
information about these charges.
• During 2004, we recorded a gain as well as charges related to restructuring, asset writedowns, pension settlements and related items, net. See
Note 14 for additional information about these items.
• During the March 2003 and December 2003 quarters, we recorded certain pension and postretirement related charges. See Note 10 for
additional information about these charges.
• In June 2003, we received Appropriations Act reimbursements from the U.S. government for certain passenger and air carrier security fees.
See Note 18 for additional information about this matter.
• In 2004, we sold our investment in Orbitz, recognizing a gain in the December 2004 quarter. During 2003, we recorded gains on the sale of
certain investments. These gains primarily related to (1) the sale of our investment in Worldspan in June 2003 and (2) our sale of a portion of
our investment in Orbitz in December 2003. See Note 16 for additional information about these sales.
F-58