Delta Airlines 2009 Annual Report Download - page 63

Table of Contents
DELTA AIR LINES, INC.
Consolidated Statements of Cash Flow
Successor Predecessor
Eight Months Four Months
Ended Ended
Year Ended December 31, December 31, April 30,
(in millions) 2009 2008 2007 2007
Cash Flows From Operating Activities:
Net (loss) income $ (1,237) $ (8,922) $ 314 $ 1,298
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization 1,536 1,266 778 386
Amortization of debt discount (premium), net 370 20 (125) —
Loss on extinguishment of debt 83 — — —
Fuel hedge derivative instruments (148) (443) 26 (46)
Deferred income taxes (329) (119) 211 (4)
Pension, postretirement and postemployment expense in excess of (less than) payments 307 (278) (604) (20)
Equity-based compensation expense 108 54 112 —
Impairment of goodwill and other intangible assets — 7,296 — —
Restructuring and merger-related items — 892 — —
Reorganization items, net — — — (1,215)
Changes in certain current assets and liabilities:
Decrease in short-term investments — 36 50 426
Decrease (increase) in receivables 147 194 108 (123)
Decrease (increase) in hedge margin receivables 1,132 (680) — —
Decrease (increase) in restricted cash and cash equivalents 79 320 473 (390)
(Increase) decrease in prepaid expenses and other current assets (61) (18) (111) 2
(Decrease) increase in air traffic liability (286) (374) (585) 763
(Decrease) increase in frequent flyer deferred revenue (298) (255) (143) 469
Increase (decrease) in accounts payable and accrued liabilities 143 (526) (217) (263)
Other, net (167) (170) 47 (258)
Net cash provided by (used in) operating activities 1,379 (1,707) 334 1,025
Cash Flows From Investing Activities:
Property and equipment additions:
Flight equipment, including advance payments (951) (1,281) (643) (167)
Ground property and equipment, including technology (251) (241) (185) (41)
(Increase) decrease in restricted cash and cash equivalents (59) 609 129 56
Decrease (increase) in short-term investments 142 (92) — —
Increase in cash in connection with the Merger — 2,441 — —
Proceeds from sales of flight equipment 100 154 84 21
Proceeds from sales of investments 15 — 83 34
Other, net (4) 8 4 —
Net cash (used in) provided by investing activities (1,008) 1,598 (528) (97)
Cash Flows From Financing Activities:
Payments on long-term debt and capital lease obligations (2,891) (1,296) (1,314) (2,242)
Proceeds from long-term obligations 2,966 2,132 2,005 1,500
Proceeds from American Express Agreement — 1,000 — —
Payment of short-term obligations, net — (300) — —
Proceeds from sale of treasury stock, net of commissions — 192 — —
Other, net (94) (12) (19) (50)
Net cash (used in) provided by financing activities (19) 1,716 672 (792)
Net Increase in Cash and Cash Equivalents 352 1,607 478 136
Cash and cash equivalents at beginning of period 4,255 2,648 2,170 2,034
Cash and cash equivalents at end of period $ 4,607 $ 4,255 $ 2,648 $ 2,170
Supplemental disclosure of cash paid for interest $ 867 $ 742 $ 363 $ 243
Non-cash transactions:
Shares of Delta common stock issued or issuable in connection with the Merger $ — $ 3,251 $ — $ —
Aircraft delivered under seller financing 139 — — —
Flight equipment — 13 — 135
Flight equipment under capital leases 57 32 35 117
Debt discount on American Express Agreement — 303 — —
The accompanying notes are an integral part of these Consolidated Financial Statements.
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