Delta Airlines 2004 Annual Report Download - page 81

Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Unsecured
Massachusetts Port Authority Special Facilities Revenue Bonds
5.0-5.5% Series 2001A due in installments from 2012 to January 1, 2027 $ 338 $ 338
1.95% Series 2001B due in installments from 2027 to January 1, 2031(2) 80 80
2.02% Series 2001C due in installments from 2027 to January 1, 2031(2) 80 80
8.10% Series C Guaranteed Serial ESOP Notes, due in installments to 2009 — 18
6.65% Series C Medium-Term Notes, due March 15, 2004 — 236
7.7% Notes due December 15, 2005 167 302
7.9% Notes due December 15, 2009 499 499
9.75% Debentures due May 15, 2021 106 106
Development Authority of Clayton County, loan agreement
2.0% Series 2000A due June 1, 2029(2) 65 65
2.05% Series 2000B due May 1, 2035(2) 110 110
2.05% Series 2000C due May 1, 2035(2) 120 120
8.3% Notes due December 15, 2029 925 925
8.125% Notes due July 1, 2039(10) 538 538
10.0% Senior Notes due August 15, 2008 248 248
8.0% Convertible Senior Notes due June 3, 2023 350 350
27/8% Convertible Senior Notes due February 18, 2024 325 —
3.01% to 10.375% Other unsecured debt due in installments from 2005 to May 1, 2033 707 587
Total unsecured debt 4,658 4,602
Total secured and unsecured debt 13,544 12,524
Less: unamortized discounts, net (94) (62)
Total debt 13,450 12,462
Less: current maturities 835 1,002
Total long-term debt $ 12,615 $ 11,460
(1) Our secured debt is collateralized by first liens, and in many cases second and junior liens, on substantially all our assets, including but not limited to
accounts receivable, owned aircraft, spare engines, spare parts, flight simulators, ground equipment, landing slots, international routes, equity
interests in certain of our domestic subsidiaries, intellectual property and real property. These encumbered assets, excluding cash and cash
equivalents and short term investments, had an aggregate net book value of approximately $17 billion at December 31, 2004. At December 31, 2004,
approximately $1.5 billion of our cash and cash equivalents and short-term investments also served as collateral for our secured debt.
(2) Our variable interest rate long-term debt is shown using interest rates which represent LIBOR or Commercial Paper plus a specified margin, as
provided for in the related agreements. The rates shown were in effect at December 31, 2004.
(3) In connection with these financings, as amended, GECC issued irrevocable, direct-pay letters of credit, which totaled $404 million at December 31,
2004, to back our obligations with respect to $397 million principal amount of tax exempt municipal bonds. We are required to reimburse GECC for
drawings under the letters of credit. Our reimbursement obligation is secured by (1) nine B767-400 and three B777-200 aircraft ("LOC Aircraft
Collateral"); (2) 93 spare Mainline aircraft engines ("Engine Collateral"); and (3) certain other assets (see footnote 8 to this table). For additional
information about the letters of credit and our reimbursement obligation to GECC, see "Letter of Credit Enhanced Municipal Bonds" in this Note.
(4) This debt, as amended ("Spare Engines Loan"), is secured by (1) the Engine Collateral; (2) so long as the letters of credit discussed in footnote 3 to
this table are outstanding, the LOC Aircraft Collateral; and (3) certain other assets (see footnote 8 to this table). The Spare Engines Loan is not
repayable at our election prior to maturity. The Engine Collateral also secures, on a subordinated basis, up to $160 million of certain of our other
existing debt and aircraft lease obligations to GECC and its affiliates. At December 31, 2004, the outstanding amount of these obligations is
substantially in excess of $160 million.
(5) This debt, as amended ("Aircraft Loan"), is secured by (1) five B767-400 aircraft ("Other Aircraft Collateral"); (2) the Engine Collateral; and
(3) substantially all of the Mainline aircraft spare parts owned by us ("Spare Parts
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