Delta Airlines 2006 Annual Report Download - page 123

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Restructuring, Asset Writedowns, Pension Settlements and Related Items, Net
2006
In 2006, we recorded a $13 million charge in restructuring, asset writedowns, pension settlements and related items, net on our Consolidated Statement
of Operations, primarily due to the following:
•Workforce Reduction.A $29 million charge related to our decision to reduce staffing by approximately 7,000 to 9,000 jobs by December 2007,
which has been substantially completed. This charge was partially offset by a $21 million reduction in accruals associated with prior year
workforce reduction programs.
2005
In 2005, we recorded an $888 million charge in restructuring, asset writedowns, pension settlements and related items, net on our Consolidated
Statement of Operations, as follows:
•Pension Curtailment Charge.A $447 million curtailment charge related to our Pilot Plan and Non-pilot Plan. This charge related to the impact
on the Non-pilot Plan of the planned reduction of 6,000 to 7,000 jobs announced in November 2004 and the freeze of service accruals under
the Pilot Plan effective December 31, 2004 (see Note 10).
•Pension Settlements.$388 million in settlement charges related to the Pilot Plan due to a significant increase in pilot retirements and lump sum
distributions from plan assets (see Note 10).
•Workforce Reduction.A $46 million charge related to our decision to reduce staffing by approximately 7,000 to 9,000 jobs by December 2007,
which has been substantially completed. This charge was partially offset by a net $3 million reduction in accruals associated with prior year
workforce reduction programs.
•Asset Charges.A $10 million charge related to the removal from service of six B-737-200 aircraft prior to their lease expiration dates.
2004
In 2004, we recorded a $41 million net gain in restructuring, asset writedowns, pension settlements and related items, net on our Consolidated Statement
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 10).
•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 10).
•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 10) and $42 million related to employee
severance.
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