Delta Airlines 2006 Annual Report Download - page 100

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
The following tables summarize, as of December 31, 2006, our minimum rental commitments under capital leases and noncancelable operating leases
(including certain aircraft under contract carrier agreements) with initial terms in excess of one year:
Capital Leases
Years Ending December 31,
(in millions)
Not Subject to
Compromise
Subject to
Compromise Total
2007 $ 104 $ 6 $ 110
2008 100 3 103
2009 99 — 99
2010 99 — 99
2011 94 — 94
After 2011 94 — 94
Total minimum lease payments 590 9 599
Less: amount of lease payments representing interest 266 1 267
Present value of future minimum capital lease payments 324 8 332
Less: current obligations under capital leases 37 5 42
Long-term capital lease obligations $ 287 $ 3 $ 290
Operating Leases
Years Ending December 31,
(in millions)
Delta
Lease
Payments
Contract Carrier
Agreements
Lease Payments(1) Total
2007 $ 871 $ 386 $ 1,257
2008 798 384 1,182
2009 652 325 977
2010 590 325 915
2011 467 325 792
After 2011 2,607 2,308 4,915
Total minimum lease payments $ 5,985 $ 4,053 $ 10,038
(1) Emerging Issues Task Force 01-08, “Determining Whether an Arrangement Contains a Lease”, provides guidance on whether an arrangement
contains a lease within the scope of SFAS 13 and is applicable to agreements entered into or modified after June 30, 2003. Because we entered into
our contract carrier agreement with Chautauqua prior to June 30, 2003, payments totaling $183 million related to Chautauqua aircraft are not
included in the table.
At December 31, 2006, we operated 166 aircraft under operating leases and 65 aircraft under capital leases. These leases have remaining terms ranging
from 10 months to nine years. For the year ended December 31, 2006, we recorded estimated claims relating to the restructuring of the financing
arrangements of 188 aircraft and the rejection of 16 leases. Many of these transactions are subject to Bankruptcy Court approval.
Note 8. Purchase Commitments and Contingencies
Aircraft Order Commitments
Future commitments for aircraft on firm order as of December 31, 2006 are estimated to be $3.0 billion. The following table shows the timing of these
commitments:
Years Ending December 31,
(in millions)
2007 $ 523
2008 823
2009 960
2010 712
Total $ 3,018