Delta Airlines 2007 Annual Report Download - page 4

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Table of Contents
Index to Financial Statements
TABLE OF CONTENTS
Page
Forward-Looking Information 1
Other Information 1
PART I
ITEM 1. BUSINESS 2
General Description 2
Airline Operations 2
Fuel 4
Competition 5
Frequent Flyer Program 5
Regulatory Matters 5
Employee Matters 8
Executive Officers 9
Additional Information 9
ITEM 1A. RISK FACTORS 10
Risk Factors Relating to Delta 10
Risk Factors Relating to the Airline Industry 13
ITEM 1B. UNRESOLVED STAFF COMMENTS 15
ITEM 2. PROPERTIES 15
Flight Equipment 15
Ground Facilities 16
ITEM 3. LEGAL PROCEEDINGS 17
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 19
PART II
ITEM 5.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES
OF EQUITY SECURITIES 20
ITEM 6. SELECTED FINANCIAL DATA 23
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 26
Background 26
Combined Financial Results of the Predecessor and Successor 26
Overview of Combined 2007 Results 26
Business Initiatives 27
Fresh Start Adjustments 28
Share-Based Compensation Expense 29
Accounting Adjustments 29
Reclassifications 29
Sale of ASA 30
Combined Results of Operations—2007 Compared to 2006 30
Results of Operations—2006 Compared to 2005 34
Financial Condition and Liquidity 37
Contractual Obligations 39
Application of Critical Accounting Policies 42
Market Risks Associated with Financial Instruments 46
Glossary of Defined Terms 47
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