Delta Airlines 2009 Annual Report Download - page 103

Table of Contents
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. We did not
record an accrual under the profit sharing program in 2009 or 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, consisting of
386 million shares to holders of allowed, general, unsecured claims and 14 million shares to eligible non-contract, non-management employees. As of
February 12, 2010, under Delta's Plan of Reorganization, we have (1) distributed 333 million shares of common stock to holders of $14.0 billion of allowed
general, unsecured claims, (2) issued 14 million shares of common stock to eligible non-contract, non-management employees and (3) reserved 53 million
shares of common stock for 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 12, 2010, five 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 additional 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, as the case may be, only their pro rata share of the distributions of common stock contemplated by the
applicable Plan of Reorganization. 98