Delta Airlines 2005 Annual Report Download - page 89

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Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Equity Warrants and Other Similar Rights
We own equity warrants and other similar rights in certain companies, primarily Republic Holdings and priceline. The fair value
of these rights was $37 million at December 31, 2005 and 2004. See Note 2 and 4 for information about our accounting policy for and
ownership of these rights, respectively.
Note 7. Goodwill and Other Intangible Assets
The following table includes the components of goodwill at December 31, 2005, 2004 and 2003, and the activity during 2004:
Reporting Unit
(in millions) Mainline ASA Comair Total
Balance at December 31, 2003 $ 227 $ 498 $ 1,367 $ 2,092
Impairment charge — (498) (1,367) (1,865)
Balance at December 31, 2004 and 2005 $ 227 $ — $ — $ 227
During 2004, we re-evaluated the estimated fair values of our reporting units (Mainline, ASA and Comair) in light of the
implementation of initiatives intended to strengthen our competitive position and the completion of our new long-range cash flow
plans. These actions reflected, among other things, (1) the strategic role of ASA and Comair in our business (see Note 3 for
information about our sale of ASA in 2005); (2) the projected impact of changes to our fare structure on the revenues of each of our
reporting units; and (3) an expectation of the continuation of historically high fuel prices. These factors had a substantial negative
impact on the impairment test results for ASA and Comair. Accordingly, we recorded an impairment charge for the full value of
goodwill at ASA and Comair.
Our goodwill impairment test for Mainline as of December 31, 2005 and 2004 resulted in no impairment because (1) our business
plan provides significant benefits to Mainline; (2) we have achieved substantial cost reductions under our transformation plan
announced in 2004; and (3) Mainline has a low carrying value.
The following table presents information about our intangible assets, other than goodwill, at December 31:
2005 2004
Gross Gross
Carrying Accumulated Carrying Accumulated
(in millions) Amount Amortization Amount Amortization
Definite-lived intangible assets:
Leasehold and operating rights $ 125 $ (103) $ 125 $ (99)
Other 3 (3) 3 (2)
Total $ 128 $ (106) $ 128 $ (101)
Net Net
Carrying Carrying
(in millions) Amount Amount
Indefinite-lived intangible assets:
International routes $ 51 $ 51
Other 1 1
Total $ 52 $ 52
We recorded an impairment charge totaling approximately $9 million for certain of our international routes at December 31, 2004
due to our decision not to utilize these routes for the foreseeable future. This
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