Delta Airlines 2005 Annual Report Download - page 49

Table of Contents
debt and lease obligations. The amounts included remain subject to change until a plan of reorganization is approved and we emerge from
Chapter 11.
(3) This amount includes our noncancelable operating leases and our lease payments related to aircraft under our contract carrier agreements with
ASA, Skywest Airlines, Freedom Airlines, Inc. ("Freedom") and Shuttle America. See Note 9 of the Notes to the Consolidated Financial
Statements for further information.
(4) Our aircraft order commitments as of December 31, 2005 consist of firm orders to purchase five B777-200 aircraft and 50 B737-800 aircraft.
This includes commitments to purchase 10 B737-800 aircraft, which we have entered into a definitive agreement to sell to a third party
immediately following delivery of these aircraft to us by the manufacturer starting in 2007. The impact of these sales on the future commitments
above would be a total reduction of approximately $395 million during the period 2006 – 2008.
(5) Interest payments related to capital lease obligations are included in the table. The present value of these obligations, excluding interest, is
included on our Consolidated Balance Sheets. For additional information about our capital lease obligations, see Note 9 of the Notes to the
Consolidated Financial Statements.
(6) This amount represents our minimum fixed obligation under our contract carrier agreements with Chautauqua Airlines, Inc. ("Chautauqua"),
Shuttle America, ASA, SkyWest Airlines, and Freedom (excluding contract carrier lease payments accounted for as operating leases, (see
footnote (3) above)). For additional information regarding our contract carrier agreements, see Note 10 of the Notes to the Consolidated
Financial Statements.
(7) Includes purchase obligations pursuant to which we are required to make minimum payments for goods and services, including but not limited to
insurance, outsourced human resource services, marketing, maintenance, obligations related to Comair, technology, and other third party
services and products. For additional information about other commitments and contingencies, see Note 10 of the Notes to the Consolidated
Financial Statements.
(8) Represents other liabilities on our Consolidated Balance Sheets for which we are obligated to make future payments related to medical benefit
costs incurred but not yet paid and payments required under the pilot collective bargaining agreement for unused vacation time. These liabilities
are not included in any other line item on this table.
(9) In addition to the contractual obligations included in the table, we have significant cash obligations that are not included in the table. For
example, we will pay wages required under collective bargaining agreements; fund pension plans (as discussed below); purchase capacity under
contract carrier arrangements (as discussed below); and pay credit card processing fees and fees for other goods and services, including those
related to fuel, maintenance and commissions. While we are parties to legally binding contracts regarding these goods and services, the actual
commitment is contingent on certain factors such as volume and/or variable rates that are uncertain or unknown at this time. Therefore, these
items are not included in the table. In addition, purchase orders made in the ordinary course of business are excluded from the table and any
amounts which we are liable for under the purchase orders are included in current liabilities on our Consolidated Balance Sheets.
The following items are not included in the table above:
Pension Plans. We sponsor defined contribution and defined benefit pension plans for eligible employees and retirees. Our
funding obligations for certain of these plans are governed by the Employee Retirement Income Security Act of 1974 ("ERISA").
Estimates of pension plan funding requirements can vary materially from actual funding requirements because the estimates are based
on various assumptions, including those described below.
Defined Contribution Pension Plans ("DC Plans") — During the year ended December 31, 2005, we contributed approximately
$100 million to our DC Plans. Estimates of future funding requirements under the DC Plans are based on various assumptions. These
assumptions include, among other things, the number of participants in the DC Plans; the salary levels of those participants; and the
outcome of efforts to modify our collective bargaining agreement with ALPA, either on a consensual basis or under the Chapter 11
process. Assuming current plan design, we expect to contribute approximately $100 million to our DC Plans in 2006.
Defined Benefit Pension Plans ("DB Plans") — Our principal DB Plans are the Pilot Plan and the Nonpilot Plan. During the year
ended December 31, 2005, we contributed approximately $325 million to our DB Plans. Estimates of future funding requirements
under the DB Plans are based on various assumptions, including legislative changes regarding these obligations. These assumptions
also include, among other things, the actual and projected market performance of assets of the DB Plans; future long-term corporate
bond yields; statutory requirements; the terms of the DB Plans; and demographic data for participants in the DB Plans, including the
number of participants, their salaries and the rate of participant attrition.
Assuming current funding rules and current plan design, we estimate that the funding requirements under our DB Plans for 2006,
2007 and 2008 will aggregate approximately $3.4 billion, excluding any liquidity shortfall contribution requirements under the Pilot
Plan. Substantially this entire amount relates to benefits 44