Delta Airlines 2008 Annual Report Download - page 89

Table of Contents
Index to Financial Statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The table below represents the allocation of the total consideration to tangible and intangible assets acquired and liabilities assumed from Northwest in
the Merger based on our estimate of their respective fair values on the Closing Date:
(in millions)
Cash and cash equivalents $ 2,441
Other current assets 2,756
Property and equipment 8,552
Goodwill 4,572
Identifiable intangible assets 2,702
Other noncurrent assets 292
Long-term debt and capital leases (6,239)
Pension and postretirement related benefits (4,010)
Air traffic liability and frequent flyer deferred revenue (3,827)
Other liabilities assumed (3,886)
Total purchase price $ 3,353
In accordance with SFAS 141, the purchase price allocation is subject to adjustment for up to one year after the Closing Date when additional
information on asset and liability valuations becomes available. We have not finalized our review of certain liabilities recorded in the Merger. Any changes to
the initial estimates of the fair value of the assets and liabilities will be recorded as adjustments to those assets and liabilities and residual amounts will be
allocated to goodwill.
The excess of the purchase price over the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed from Northwest
in the Merger was allocated to goodwill. We believe that the portion of the purchase price attributable to goodwill represents the benefits expected to be
realized from the Merger, as discussed above. This goodwill is not deductible or amortizable for tax purposes.
The following table summarizes the identifiable intangible assets acquired:
(in millions)
Weighted-
Average Life in
Years
Gross Carrying
Amount
Indefinite-lived intangible assets:
International routes and slots N/A $ 2,140
SkyTeam alliance N/A 380
Domestic routes and slots N/A 110
Other N/A 1
Total indefinite-lived intangible assets $ 2,631
Definite-lived intangible assets:
Northwest tradename 1.5 40
Marketing agreements 14 27
Domestic routes and slots 1 4
Total definite-lived intangible assets 6 $ 71
Total identifiable intangible assets $ 2,702
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