Delta Airlines 2005 Annual Report Download - page 118

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Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
2004
In 2004, we recorded a $41 million net gain in restructuring, asset writedowns, pension settlements and related items, net on our
Consolidated Statements of Operations, as follows:
• Elimination of Retiree Healthcare Subsidy. A $527 million gain related to our decision to eliminate the company
provided healthcare coverage subsidy for employees who retire after January 1, 2006 (see Note 12).
• Pension Settlements.$251 million in settlement charges related to the Pilot Plan due to a significant increase in pilot
retirements and lump sum distribution from plan assets (see Note 12).
• Workforce Reduction. A $194 million charge related to our decision to reduce staffing by approximately 6,000 to 7,000
jobs by December 2005. This charge included charges of $152 million related to special termination benefits (see
Note 12) and $42 million related to employee severance.
• Asset Charges. A $41 million aircraft impairment charge related to our agreement to sell eight owned MD-11 aircraft.
In October 2004, we sold these aircraft and related inventory to a third party for $227 million.
2003
In 2003, we recorded a $268 million charge in restructuring, asset writedowns, pension settlements and related items, net on our
Consolidated Statements of Operations, as follows:
• Pension Settlement. A $212 million settlement charge related to the Pilot Plan due to a significant increase in pilot
retirements (see Note 12).
• Pension and Postretirement Curtailment Charge. A $43 million net charge for costs associated with our 2002
workforce reduction program. This charge relates to a net curtailment loss under certain of our pension and
postretirement medical benefit plans (see Note 12).
• Planned Sale of Aircraft. A $41 million charge as a result of a definitive agreement to sell 11 B737-800 aircraft to a
third party immediately after those aircraft were delivered to us by the manufacturer in 2005.
• Other.A $28 million reduction to operating expenses based primarily on revised estimates of remaining costs associated
with prior year restructuring reserves (see Note 17).
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