Delta Airlines 2008 Annual Report Download - page 132

Table of Contents
Index to Financial Statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table shows the balances for these restructuring charges as of December 31, 2008, and the activity for the year then ended:
(in millions)
Liability
Balance at
December 31,
2007
Additional
Costs and
Expenses Payments
Liability
Balance at
December 31,
2008
Severance and related costs $ — $ 114 $ (111) $ 3
Contract Carrier restructuring — 14 (14) —
Facilities and other 3 25 (6) 22
Total $ 3 $ 153 $ (131) $ 25
In December 2008, we announced additional voluntary workforce reduction programs for U.S. non-pilot employees to align staffing with planned
capacity reductions. Approximately 47,000 employees were eligible for these programs by notifying us of their decision to participate in the period which
began in January 2009 and ended in February 2009 (the "Election Period"). We did not record any charge for these programs at December 31, 2008 because
we could not reasonably estimate on that date who would elect to participate in the programs. During the Election Period, approximately 2,100 employees
decided to participate. Accordingly, we expect to record between $40 million and $50 million in restructuring charges during the March 2009 quarter for these
programs.
In 2007, we did not have any restructuring and merger-related items. In 2006, we recorded a $13 million charge in restructuring and merger-related
items on our Consolidated Statement of Operations. This charge was primarily due to a $29 million charge related to our decision to reduce staffing by
approximately 7,000 to 9,000 jobs by December 2007, partially offset by a $21 million reduction in accruals associated with prior year workforce reduction
programs.
Note 16. (Loss) Earnings Per Share
We calculate basic (loss) earnings per share by dividing the net (loss) income attributable to common stockholders by the weighted average number of
common shares outstanding. In accordance with SFAS No. 128, "Earnings per Share," shares issuable upon the satisfaction of certain conditions, such as
shares issuable under Delta's Plan of Reorganization and in connection with the Merger, are considered outstanding and included in the computation of basic
earnings per share. Accordingly, all 386 million shares contemplated by Delta's Plan of Reorganization to be distributed to holders of allowed general,
unsecured claims are included in the calculation of earnings per share for the year ended December 31, 2008 and the eight months ended December 31, 2007.
Similarly, the calculation of basic loss per share for the year ended December 31, 2008 includes, in connection with the Merger, (1) 50 million shares of Delta
common stock we agreed to issue on behalf of Delta and Northwest pilots and (2) nine million shares of Delta common stock reserved for issuance, after
giving effect to the 1.25 exchange ratio, in exchange for shares of Northwest common stock that, but for the Merger, would have been issued under
Northwest's Plan of Reorganization.
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