Delta Airlines 2004 Annual Report Download - page 44

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including current maturities and short-term obligations, totaled $12.6 billion at December 31, 2003. We issued $1.9 billion of secured long-term debt during
2003.
2002
Cash and cash equivalents and short-term investments totaled $2.0 billion at December 31, 2002. Net cash provided by operations totaled $225 million
during 2002, including receipt of (1) a $472 million tax refund due to a new tax law and (2) $112 million in compensation under the Stabilization Act. Capital
expenditures, including aircraft acquisitions made under seller-financing arrangements, were $2.0 billion during 2002; this included the acquisition of four
B737-800, three B767-400, one B777-200, 34 CRJ-200 and 15 CRJ-700 aircraft. Debt and capital lease obligations, including current maturities and short-
term obligations, totaled $10.9 billion at December 31, 2002. We issued $2.6 billion of secured long-term debt during 2002.
Financial Position
December 31, 2004 Compared to December 31, 2003
This section discusses certain changes in our Consolidated Balance Sheets which are not otherwise discussed in this Form 10-K.
Prepaid expenses and other current assets increased by 10%, or $49 million, primarily reflecting an increase in prepaid aircraft fuel from higher fuel costs
and increased prepayment requirements. Flight and ground equipment under capital leases, net of accumulated amortization, increased $243 million primarily
due to the renegotiation of certain operating leases that are now classified as capital leases in accordance with SFAS 13, "Accounting for Leases," due to the
amendment of certain lease terms (see Note 7 of the Notes to the Consolidated Financial Statements). Restricted investments for our Boston airport terminal
project decreased 56%, or $159 million, due primarily to the reimbursement of project expenditures during 2004.
Accounts payable, deferred credits and other accrued liabilities decreased 9%, or $149 million, primarily reflecting a decrease in trade accounts payable
from increased prepayment requirements in 2004. Air traffic liability increased 20% from 2003 primarily due to (1) stronger advance sales from increased
capacity and (2) growth in codeshare operations. Accrued salaries and related benefits decreased 10% due primarily to (1) a lower vacation accrual at the end
of 2004 due to changes in our salary rates as part of our transformation plan and (2) salary rate decreases that occurred in the December 2004 quarter
primarily related to our new pilot collective bargaining agreement that was effective December 1, 2004.
Contractual Obligations
The following table summarizes our contractual obligations as of December 31, 2004 related to debt; operating leases; aircraft order commitments; capital
leases; contract carrier obligations; interest and related payments; other material, noncancelable purchase obligations; and other liabilities. The table excludes
commitments that are contingent based on events or other factors that are uncertain or unknown at this time. Some of these excluded commitments are
discussed in footnote 9 to this table and in the text immediately following that footnote.
Contractual Payments Due By Period
After
(in millions) Total 2005 2006 2007 2008 2009 2009
Debt(1) $ 13,450 $ 835 $ 913 $ 1,374 $ 1,549 $ 1,324 $ 7,455
Operating lease payments(2) 9,662 1,091 1,017 915 980 836 4,823
Aircraft order commitments(3) 4,161 1,002 598 1,645 510 406 —
Capital lease obligations(4) 1,122 158 162 134 112 146 410
Contract carrier obligations(5) 317 79 79 79 80 — —
Interest and related payments(6) 7,514 837 737 684 592 506 4,158
Other purchase obligations(7) 342 257 17 12 12 11 33
Other liabilities(8) 69 69 — — — — —
Total(9) $ 36,637 $ 4,328 $ 3,523 $ 4,843 $ 3,835 $ 3,229 $ 16,879
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