Delta Airlines 2008 Annual Report Download - page 121

Table of Contents
Index to Financial Statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other Plans
We also sponsor defined benefit pension plans for eligible employees in certain foreign countries. These plans did not have a material impact on our
Consolidated Financial Statements in any period presented.
Profit Sharing Program
Our broad based employee profit sharing program provides that, for each year in which we have an annual pre-tax profit, as defined, we will pay at least
15% of that profit to employees. If the annual pre-tax profit is greater than $2.5 billion, we will pay 20% of the amount that exceeds $2.5 billion. Based on our
pre-tax earnings, we accrued $158 million under the profit sharing program in 2007. We did not record an accrual under the profit sharing program in 2008.
NOTE 11. CHAPTER 11 PROCEEDINGS
Bankruptcy Claims Resolution
Under Delta's Plan of Reorganization, most holders of allowed general, unsecured claims against the Delta Debtors received or will receive Delta
common stock in satisfaction of their claims. Delta's Plan of Reorganization contemplates the distribution of 400 million shares of common stock. As of
February 18, 2009, under Delta's Plan of Reorganization, we have (1) distributed 321 million shares of common stock to holders of $13.5 billion of allowed
general, unsecured claims, (2) issued 14 million shares of common stock to eligible non-contract, non-management employees and (3) reserved 65 million
shares of common stock for future issuance to holders of allowed general, unsecured claims.
Northwest's Plan of Reorganization generally provides for the distribution of Northwest common stock to the Northwest Debtors' creditors, employees
and others in satisfaction of allowed general, unsecured claims. Pursuant to the Merger Agreement, and as discussed in Note 2, each outstanding share of
Northwest common stock (including shares issuable pursuant to Northwest's Plan of Reorganization) was converted into the right to receive 1.25 shares of
Delta common stock. As of February 18, 2009, eight million shares of Delta common stock were reserved for issuance in exchange for shares of Northwest
common stock that, but for the Merger, would have been issued under Northwest's Plan of Reorganization.
The Delta Debtors and the Northwest Debtors will continue to settle claims and file objections with the Bankruptcy Courts regarding claims. In light of
the substantial number and amount of claims filed, we expect the claims resolution process will take considerable time to complete. We believe there will be
no further material impact to the Consolidated Statements of Operations from the settlement of claims because the holders of such claims will receive under
Delta's and Northwest's Plan of Reorganization (collectively, the "Plans of Reorganizations"), as the case may be, only their pro rata share of the distributions
of common stock contemplated by the Plans of Reorganization.
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