Delta Airlines 2008 Annual Report Download - page 96

Table of Contents
Index to Financial Statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
these contracts at the date of settlement resulted in an $11 million charge, which we recorded to other (expense) income on our Consolidated Statement of
Operations for the year ended December 31, 2008.
As of December 31, 2008, our open fuel hedge (loss) gain position, excluding contracts we terminated early with Lehman Brothers, for the years ending
December 31, 2009 and 2010 is as follows:
(in millions, unless otherwise stated)
Percentage of
Projected
Fuel
Requirements
Hedged
Contract
Fair Value at
December 31,
2008
2009 48% $ (1,059)
2010 4 19
Total 26% $ (1,040)
Prior to the adoption of fresh start reporting, we recorded as a component of stockholders' deficit a $46 million unrealized gain related to our fuel
hedging program. This gain would have been recognized as an offset to aircraft fuel expense as the underlying fuel hedge contracts were settled. However, as
required by fresh start reporting, our accumulated stockholders' deficit and accumulated other comprehensive loss were reset to zero. Accordingly, fresh start
reporting adjustments eliminated the unrealized gain and increased aircraft fuel expense and related taxes by $46 million for the eight months ended
December 31, 2007.
Gains (losses) recorded on our Consolidated Statements of Operations for the year ended December 31, 2008, the eight months ended December 31,
2007, the four months ended April 30, 2007 and the year ended December 31, 2006 related to our fuel hedge contracts are as follows:
Aircraft Fuel and Related Taxes Other (Expense) Income
Successor Predecessor Successor Predecessor
(in millions)
Year
Ended
December 31,
2008(1)
Eight
Months
Ended
December 31,
2007
Four
Months
Ended
April 30,
2007
Year
Ended
December 31,
2006
Year
Ended
December 31,
2008
Eight
Months
Ended
December 31,
2007
Four
Months
Ended
April 30,
2007
Year
Ended
December 31,
2006
Unsettled fuel hedge contracts $ (91) $ — $ — $ — $ (4) $ (21) $ 15 $ (5)
Settled fuel hedge contracts 26 59 (8) (108) (16) 8 (1) (32)
Total $ (65) $ 59 $ (8) $ (108) $ (20) $ (13) $ 14 $ (37)
(1) We recorded a mark-to-market adjustment of $91 million related to Northwest derivative contracts settling in 2009 that were not designated as hedges under SFAS 133 for the year ended
December 31, 2008.
Interest Rate Risk
Our exposure to market risk from adverse changes in interest rates is associated with our long-term debt obligations, cash portfolio, workers'
compensation obligations and pension, postemployment and postretirement benefits.
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