Delta Airlines 2005 Annual Report Download - page 56

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Table of Contents
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Information required by this item is set forth in Item 7 — "Management's Discussion and Analysis of Financial Condition and
Results of Operations — Market Risks Associated With Financial Instruments" and in Notes 2, 4, 5 and 6 of the Notes to the
Consolidated Financial Statements.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Reference is made to the Index on page F-1 of the Consolidated Financial Statements and the Notes thereto contained in this
Form 10-K.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
For information about our change in independent registered public accounting firms from Deloitte & Touche LLP, our auditors for
the fiscal year ended December 31, 2005, to Ernst & Young LLP for the fiscal year ending December 31, 2006, please refer to our
Form 8-K filed with the SEC on February 3, 2006.
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Our management, including our Chief Executive Officer and Chief Financial Officer, performed an evaluation of our disclosure
controls and procedures, which have been designed to permit us to effectively identify and timely disclose important information. Our
management, including our Chief Executive Officer and Chief Financial Officer, concluded that the controls and procedures were
effective as of December 31, 2005 to ensure that material information was accumulated and communicated to our management,
including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required
disclosure.
Changes In Internal Control
During the three months ended December 31, 2005, we made the following changes in our internal control over financial reporting
that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting:
• Our Chapter 11 proceedings continue to have a significant impact on our business processes and internal control over
financial reporting related to (1) the proper separation and payment of pre-petition and post-petition obligations and
(2) the preparation of consolidated financial statements reflecting the accounting required for the restructuring activities
and reorganization expenses resulting from the Chapter 11 proceedings. Management continues to take actions
necessary to address the resources, processes and controls related to these restructuring activities, while maintaining
controls over routine daily operations.
• Our approach to implementing new business processes, including those that are outsourced to a third party,
encompasses the design and implementation of internal control over financial reporting as it relates to the new business
process. In early 2005, we entered into an agreement with a third party to perform various business processes that were
being performed internally by our personnel. These processes include processing payroll for all of our domestic
employees and administering certain human resource and benefit related functions for these employees. Since
announcing the agreement, we and the third party have been actively transitioning the business processes to the third
party, and the transition was substantially completed in the fourth quarter of 2005. Our personnel continue to perform
or provide oversight of many of the controls in these processes.
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