Delta Airlines 2005 Annual Report Download - page 117

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Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 15. Geographic Information
SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information" ("SFAS 131"), requires us to disclose
certain information about our operating segments. Operating segments are defined as components of an enterprise with separate
financial information which is evaluated regularly by the chief operating decision-maker and is used in resource allocation and
performance assessments.
We are managed as a single business unit that provides air transportation for passengers and cargo. This allows us to benefit from
an integrated revenue pricing and route network that includes Mainline, Comair and our contract carriers. The flight equipment of the
carriers is combined to form one fleet which is deployed through a single route scheduling system. When making resource allocation
decisions, our chief operating decision maker evaluates flight profitability data, which considers aircraft type and route economics, but
gives no weight to the financial impact of the resource allocation decision on an individual carrier basis. Our objective in making
resource allocation decisions is to optimize our consolidated financial results.
Operating revenues are assigned to a specific geographic region based on the origin, flight path and destination of each flight
segment. Our operating revenues by geographic region for the years ended December 31, 2005, 2004 and 2003 are summarized in the
following table:
(in millions) 2005 2004 2003
North America $ 13,030 $ 12,389 $ 11,854
Atlantic 2,255 2,088 1,799
Pacific 150 143 111
Latin America 756 615 544
Total $ 16,191 $ 15,235 $ 14,308
Our tangible assets consist primarily of flight equipment which is mobile across geographic markets. Accordingly, assets are not
allocated to specific geographic regions.
Note 16. Restructuring, Asset Writedowns, Pension Settlements and Related Items, Net
2005
In 2005, we recorded an $888 million charge in restructuring, asset writedowns, pension settlements and related items, net on our
Consolidated Statements of Operations, as follows:
• Pension Curtailment Charge. A $447 million curtailment charge related to our defined benefit pension plans for our
pilot ("Pilot Plan") and nonpilot ("Nonpilot Plan") employees. This charge relates to the impact on the Nonpilot Plan of
the planned reduction of 6,000 to 7,000 jobs announced in November 2004 and the freeze of service accruals under the
Pilot Plan effective December 31, 2004 (see Note 12).
• Pension Settlements.$388 million in settlement charges primarily related to the Pilot Plan due to a significant increase
in pilot retirements and lump sum distributions from plan assets (see Note 12).
• Workforce Reduction. A $46 million charge related to our decision to reduce staffing by approximately 7,000 to 9,000
jobs by December 2007. This charge was offset by a net $3 million reduction in accruals associated with prior year
workforce reduction programs.
• Asset Charges. A $10 million charge related to the removal from service of six B737-200 aircraft prior to their lease
expiration dates. F-55