Delta Airlines 2009 Annual Report Download - page 54

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Table of Contents
In December 2007, the FASB issued "Business Combinations (revised 2007)." The standard provides guidance for recognizing and measuring goodwill
acquired in a business combination and requires disclosure of information regarding the nature and financial effects of a business combination. It also revises
the treatment of valuation allowance adjustments related to income tax benefits in existence prior to a business combination or prior to the adoption of fresh
start reporting. Under the original standard, any reduction in the valuation allowance from the recognition of deferred tax assets is adjusted through goodwill,
followed by other indefinite-lived intangible assets until the net carrying costs of these assets is zero. In contrast, this revised standard requires that any
reduction in this valuation allowance be reflected through the income tax provision. This standard is effective for fiscal years beginning on January 1, 2009.
Supplemental Information
Under GAAP, we do not include in our Consolidated Financial Statements the results of Northwest on or before the Closing Date. Accordingly, our
financial results under GAAP for the year ended December 31, 2008, include the results of Northwest only for the period from October 30 to December 31,
2008. This impacts the comparability of our financial statements under GAAP for the years ended December 31, 2009 and 2008. Financial results on a
combined basis for the year ended December 31, 2008 include the financial results for both Delta and Northwest beginning January 1, 2008. We believe
presenting the 2008 financial information on a combined basis provides useful information for comparing our financial performance in 2009 and 2008.
GAAP Combined
Year Ended Year Ended
December 31, December 31,
(in millions) 2009 2008
Aircraft fuel and related taxes $ 7,384 $ 7,346
Northwest results for the period January 1 to October 29, 2008 — 4,996
Contract carrier aircraft fuel 907 1,740
Mark-to-market adjustments to fuel hedges settling in future periods — (410)
Total fuel expense excluding mark-to-market adjustments to fuel hedges settling in future periods $ 8,291 $ 13,672
49