Delta Airlines 2006 Annual Report Download - page 89

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
At December 31, 2004, we recorded a $9 million impairment charge for certain of our international routes due to our decision not to utilize these routes
for the foreseeable future. This charge is recorded in impairment of intangible assets on our Consolidated Statements of Operations. At December 31, 2006
and 2005, our impairment test for indefinite-lived intangible assets resulted in no impairment. For additional information about our accounting policy for
goodwill and other intangible assets, see Note 2.
London Route Agreement
On October 30, 2006, we purchased from United Air Lines, Inc. its authority to operate direct transatlantic service between New York and London (the
“Route”). We agreed to purchase the Route for up to $21 million, consisting of $13 million which we paid at the closing of the transaction and four annual
payments of $2 million payable in 2007 through 2010. If, however, the current bilateral agreement between the U.S. and the United Kingdom is expanded at
any time during that four-year period to permit more than two U.S. carriers to operate service on the Route, then our obligation to make any remaining
payments ceases.
Note 6. Debt
The following table summarizes our debt at December 31, 2006 and 2005:
(dollars in millions) 2006 2005
Senior Secured(1)
Secured Super-Priority Debtor-in-Possession Credit Agreement
8.12% GE DIP Credit Facility Term Loan A due March 16, 2008(2) $ 600 $ 600
10.12% GE DIP Credit Facility Term Loan B due March 16, 2008(2) 700 700
12.87% GE DIP Credit Facility Term Loan C due March 16, 2008(2) 600 600
1,900 1,900
Other senior secured debt
14.11% Amex Facility Note due in installments during 2007(2)(3) 176 300
176 300
Secured(1)
Series 2000-1 Enhanced Equipment Trust Certificates
7.38% Class A-1 due in installments from 2007 to May 18, 2010 136 174
7.57% Class A-2 due November 18, 2010 738 738
7.92% Class B due November 18, 2010 182 182
1,056 1,094
Series 2001-1 Enhanced Equipment Trust Certificates
6.62% Class A-1 due in installments from 2007 to March 18, 2011 130 150
7.11% Class A-2 due September 18, 2011 571 571
7.71% Class B due September 18, 2011 207 207
7.30% Class C due September 18, 2006 — 60
908 988
Series 2001-2 Enhanced Equipment Trust Certificates
7.06% Class A due in installments from 2007 to December 18, 2011(2) 313 341
8.26% Class B due in installments from 2007 to December 18, 2011(2) 145 172
9.61% Class C due in installments from 2007 to December 18, 2011(2) 64 77
522 590
Series 2002-1 Enhanced Equipment Trust Certificates
6.72% Class G-1 due in installments from 2007 to January 2, 2023 454 488
6.42% Class G-2 due July 2, 2012 370 370
7.78% Class C due in installments from 2007 to January 2, 2012 111 126
935 984
Series 2003-1 Enhanced Equipment Trust Certificates
6.13% Class G due in installments from 2007 to January 25, 2008(2) 291 318
9.11% Class C due in installments from 2007 to January 25, 2008(2) 135 135
426 453